|
South central Manitoba | All this talk about energy to produce ethanol is irrelevant. All that matters is price, and currently that works well for ethanol.
Ethanol price competes well with gasoline on a net energy basis. Ethanol producers have good margins. And I believe corn growers can make good returns at prices that the ethanol plants can accept. Everyone in the ethanol chain can do well.
What seems to have changed is the cost to produce a gallon of gasoline at the margin. The high cost producers such as the oil sands and Bakken frackers cant produce profitably at much below today's prices, and the world needs them to keep producing to meet demand.
The bottom line is ethanol can compete now, and I see nothing that will upset that in the future. | |
|
Just a comment on Ethanol energy balance.
