Kooiker - 1/19/2024 10:10
Al Swearingen - 1/19/2024 09:49 As of today, with the exception of 3 or 4, ethanol from plants in the Midwest can not supply low carbon score ethanol to a SAF plant (see my comment above). Brazil ethanol can meet the low carbon score, it's a interesting read to see how they have met the requirements for the low scores.
I'd like to hear more about how/why Brazilian corn ethanol has a lower carbon score than US corn ethanol. If there are plants in the US currently meeting the SAF requirements without the pipelines why can't the rest do that?
Trying to own the libs because we don't believe we need to cut CO2 at the expense of taking a hit on corn prices doesn't sound like a good plan to me.
I really don't care if anyone wants to pump carbon underground because paying customers want it done and the pipelines get built WITHOUT any eminent domain or tax payer subsidies for pumping said carbon underground. There are several billion's of reasons to object to using tax payer $'s to do it or using eminent domain to get them built.
Kooiker, I'd tell you about the low CI score Brazil ethanol, but I think it would be better if you found articles and read it from the sources that you feel comfortable with. In a nut shell, they have a low CI energy source and have the geologic ability to sequester carbon on site or get a pipeline to a geologic site.
There are 3 plants I know of in the US, it seems like there is a fourth I am forgetting, that are lucky enough to be built over a geologic formation that allows them to capture and sequester on site. Two in ND and the Decatur, IL plant that has been for years. If you go to the farm progress show at Decatur, you're standing on a sequestration site. Other plants are not lucky enough to have that option to sequester on site and will need to transport their CO2 to areas that can.
The government has put the carrot out there and set a floor for the value of sequestration. I believe that the private sector will be buying the credits once it's up and running and take that burden off the government just has it has worked that way in the past in different programs. Look at how may innovations are being worked on to use CO2 now that the carrot is out there. Eminent Domain is tough, again using Berkshire Hathaway as an example, they are a private company making profits from easements used to transport product in pipelines, that's nothing new. From the numbers I've seen others post on here, it looks like the pipelines are offering very good offers and not just taking the easement, even offering ongoing crop damage payments. I'd be all over it if it were crossing my ground, but I might be at a different point in my operation than others and I am still trying to improve my operation and make sure it's viable for the next generation.
The next big thing that I see happening is that once our domestic plants get a low CI Score, they can justify paying more for low CI corn as it will help their profitability even more. That is another opportunity for corn farmers to get a premium for keeping records at a minimum and possibly more if they can justify changing practices to maximize the incentive. Mitchell Hora has some great information on how this can work, I've heard him on podcasts talk about it and at a local meeting go through the steps and what it can mean. To me it sounds like a much better way than just signing up acres, but a premium per bu. produced.
However you look at it, these demands will be met by us domestically if we choose or we can let foreign companies meet the demand. That's really what it comes down to. As a producer, I would rather it be the domestic meeting the demand. In 10 years IF there is Demand for corn raised with low nitrogen
(or any other crazy idea
) I promise you someone will figure out how to do it profitably and producers can make the decision on i they want to take part or not. I don't thing we can't just sit back and let demand be filled by foreign producers because of ideology.
Edited by Al Swearingen 1/19/2024 11:07
ethanol in brazil
