Monday, March 24, 2008

Ethanol - The View from Canada and Some News from Indiana

The Toronto Star published Ethanol craze raises concerns and some points that might give us a bit of a pause down here:

"BUT, AS INCENTIVES lure more investors into the ethanol business, Ontario's corn supply starts looking increasingly short. Six more plants are either planned or under construction. If they all reach capacity, the province's ethanol production would jump by another 1.63 billion litres, to more than 2.2 billion, total."

Quick math tells a potentially troublesome tale: At a ratio of 10 litres per bushel, the proposed ethanol production in Ontario would consume virtually all of the province's corn production of 250 million bushels a year. "That was a real question when we were building," Vaillant says. "Where are we going to get all the corn?"

The ethanol industry isn't the only one asking that question. Among all the crops humans grow, corn is perhaps the most essential. Of all the things in your local supermarket – more than 45,000, says Michael Pollan in The Omnivore's Dilemma – about a quarter of them contain corn.

It is the ultimate staple in the broadest sense: It's in processed foods like cereals. Its starch is used in sauces as thickener, its sugar in soft drinks as sweetener. It's a binding agent, a colourant, the alcohol in your beer. It's in coffee whitener, ketchup, candies, canned fruit and condiments.

Then Central States says ethanol plant announcement premature appeared in Muncie's Star Press today:

A spokesman for Central States said today that a story that appeared in Sunday's edition of The Star Press regarding the company’s plans to build an ethanol plant in Blackford County was at best premature.

“A decision has not been made one way or the other on the proposed ethanol plant,” said John Stanford, vice president of operations from his office in New Haven, Ind.

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