Comments on: The End is Neigh for Ethanol http://www.dailyreckoning.com.au/the-end-is-neigh-for-ethanol/2008/04/09/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 10:39:45 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Larry Johnson http://www.dailyreckoning.com.au/the-end-is-neigh-for-ethanol/2008/04/09/comment-page-1/#comment-16283 Larry Johnson Wed, 09 Apr 2008 12:23:03 +0000 http://www.dailyreckoning.com.au/?p=2402#comment-16283 Bill Bonner I have worked in the U.S. ethanol industry for more than 20 years and am one of the founders of the Minnesota Model. I have also been to Australia twice on ethanol issues and continue to work on ethanol projects in the U.S. Using Ethanex as a representative of the ethanol industry is a poor choice, as their plan was flawed from the beginning. I would like the chance to meet with you when you are in Minnesota later this month. Larry Johnson Bill Bonner

I have worked in the U.S. ethanol industry for more than 20 years and am one of the founders of the Minnesota Model. I have also been to Australia twice on ethanol issues and continue to work on ethanol projects in the U.S.

Using Ethanex as a representative of the ethanol industry is a poor choice, as their plan was flawed from the beginning.

I would like the chance to meet with you when you are in Minnesota later this month.

Larry Johnson

]]> By: fthefarmer http://www.dailyreckoning.com.au/the-end-is-neigh-for-ethanol/2008/04/09/comment-page-1/#comment-16274 fthefarmer Wed, 09 Apr 2008 10:35:31 +0000 http://www.dailyreckoning.com.au/?p=2402#comment-16274 GM 's sudden stewardship of the environment is simply a way to continue to make gas guzzlers thanks to E85 an extremely inefficient fuel. The CAFE standards call for all car companies to acheive an average MPG for all vehicles. I believe the most recent number is 33 MPG. Well if you make the biggest money off of 10 miles per gallon SUV's you would hate to say good bye to them wouldn't you? The CAFE standards has a loophole, that being that an E85 vehicle operating on E85 miles per gallon are ONLY figured against the actual amount of gasoline in the blend (15%) if you divide 100% fuel by 15% gasoline you get the multipler to the mpg (666) therefore a gas guzzling 10 MPG SUV is given credit for 66.6 MPG. If you sell one SUV like this you can have 3 vehicles only acheiving 24 MPG and this gas guzzling SUV and you average more than 34 MPG overall. GM is not the only one taking advantage of this free ride Ford and Chrysler are too. The big three are heading down the toilet and this is just their hands clinging to the rim. GM 's sudden stewardship of the environment is simply a way to continue to make gas guzzlers thanks to E85 an extremely inefficient fuel. The CAFE standards call for all car companies to acheive an average MPG for all vehicles. I believe the most recent number is 33 MPG. Well if you make the biggest money off of 10 miles per gallon SUV's you would hate to say good bye to them wouldn't you?
The CAFE standards has a loophole, that being that an E85 vehicle operating on E85 miles per gallon are ONLY figured against the actual amount of gasoline in the blend (15%) if you divide 100% fuel by 15% gasoline you get the multipler to the mpg (666) therefore a gas guzzling 10 MPG SUV is given credit for 66.6 MPG. If you sell one SUV like this you can have 3 vehicles only acheiving 24 MPG and this gas guzzling SUV and you average more than 34 MPG overall.
GM is not the only one taking advantage of this free ride Ford and Chrysler are too. The big three are heading down the toilet and this is just their hands clinging to the rim.

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