Wrong. Think of it this way, the subsidy is 54c, for a gallon of (100%) ethanol, irrespective of how it is blended. Ten percent, 5.4c. Twenty percent, 10.8c. Five percent 2.7c. .(per gallon of finished product.) FYI , I think of the subsidy in two ways, at low corn price, the 'subsidy' is a lower price (corn) guarantee, that floats with the wholesale price of gasoline. At high corn prices, --> Due to Forced usage issues<--, it sorta looks like a motorist subsidy.
RR --- In biofuel@yahoogroups.com, [EMAIL PROTECTED] wrote: > Dear Murdoch, > > I think the subsidy the controlling factor > in the failure to introduce E-85 across the > country. > > I believe that the subsidy to the blender > is 5.8 cents a gallon of finished product here > in the U.S.A. > > So, the E-10 has, in effect, a subsidy of 58 > cents a gallon of ethanol. > > The E-85 has, in effect, a subsidy of 6.8 cents > a gallon of ethanol. Therefore, this blend is more > expensive at the pump. > > Please correct me if I am wrong about who gets > paid how much by the federal government. > > Regards, > > Wendell > > > > murdoch wrote: > > > On Mon, 3 May 2004 23:35:47 -0700, you wrote: > > > > >You bring up a good point. It's hard to find "green" business people, > > since > > >there's a lot more money to be made elsewhere. I totally encourage > > your > > >efforts Tomas. My 2 cents on your question: maybe you could contact > > other > > >schools that use biodiesel in their fleets and see what they've done. > > I know > > >they are out there but not sure which ones they are. > > > > > >As for biodiesel business, I have noticed in the past few weeks that: > > > > >- there are a LOT of homebrewers and co-ops (yay!) > > >- there are NOT a lot of commercial biodiesel suppliers or retail > > biodiesel > > >stations. Even though in my (very non-MBA) head it seems like a > > pretty > > >simple and straightforward thing to do commercially (except maybe the > > > > >government hoops - ASTM standards and all that). > > > > > >I think co-ops and homebrews have their place but a biodiesel station > > > > >franchise, for example, that uses its profits to add more biodiesel > > >stations, sounds like a fantastic way to leverage capitalism to > > undermine > > >our dependence on foreign oil. What are the roadblocks preventing > > biodiesel > > >business from taking off? Lack of "green" MBAs? OPEC politics? > > Expensive > > >required EPA testing (I don't understand this issue at all)? Not > > enough > > >waste veg. oil to meet demand? Not enough diesel passenger cars out > > there? > > >Seems like if biodiesel were easily available along major commutes in > > major > > >cities, ordinary folks would gladly pay less per gallon for biodiesel > > and > > >feel good about themselves for saving the environment and preventing > > future > > >wars to boot. > > > > I think, in addition to the hypotheses you mention, we could question > > that the fuel distribution and retailing business is a different issue > > > > from the fuel production business. If you make a great amount of > > consistently high-quality biodiesel, where do you go with it? Should > > we expect the Exxon Station down the street to sell it, and a pump > > right next to dino diesel? Even if the station owner has his heart in > > > > the right place and wants to help us, I question whether there > > wouldn't be tremendously powerful forces at work preventing him from > > doing that. I haven't really investigated this at length, but I think > > > > this partly explains why it took so long to build E-85 distribution > > into the U.S. fuel distribution system. In short over-simplification: > > > > we're asking petro-sellers to sell the fuel of their competitor, > > without them having much incentive to do so. It has taken awhile to > > figure out how to get that to happen. > > > > > > > >I'll tell ya, I was born an engineer and the acronym "MBA" always > > made my > > >stomach turn, but I'd get an MBA in a heartbeat if I knew I could use > > it to > > >start a biodiesel business from which I could make a decent living. > > > > Girl Mark's group was recently started to discuss some small-scale > > biofuel business issues: > > > > http://groups.yahoo.com/group/local-b100-biz/ > > > > I tend to agree on initial gut reactions to the "MBA" acronym. > > > > > > Biofuel at Journey to Forever: > > http://journeytoforever.org/biofuel.html > > > > Biofuels list archives: > > http://infoarchive.net/sgroup/biofuel/ > > > > Please do NOT send Unsubscribe messages to the list address. > > To unsubscribe, send an email to: > > [EMAIL PROTECTED] > > > > > > --------------------------------------------------------------- > > Yahoo! Groups Links > > > > * To visit your group on the web, go to: > > http://groups.yahoo.com/group/biofuel/ > > > > * To unsubscribe from this group, send an email to: > > [EMAIL PROTECTED] > > > > * Your use of Yahoo! Groups is subject to the Yahoo! Terms of > > Service. > > > > > [Non-text portions of this message have been removed] Biofuel at Journey to Forever: http://journeytoforever.org/biofuel.html Biofuels list archives: http://infoarchive.net/sgroup/biofuel/ Please do NOT send Unsubscribe messages to the list address. To unsubscribe, send an email to: [EMAIL PROTECTED] Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/biofuel/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
