U.S. corn ethanol "was not a good policy"-Gore

[JohnSmith2007 353]

U.S. corn ethanol "was not a good policy"-Gore

Mon Nov 22, 2010 12:24pm GMT

By Gerard Wynn

ATHENS, Nov 22 (Reuters) - Former U.S. vice-president Al Gore said support for corn-based ethanol in the United States was "not a good policy", weeks before tax credits are up for renewal.

U.S. blending tax breaks for ethanol make it profitable for refiners to use the fuel even when it is more expensive than gasoline. The credits are up for renewal on Dec. 31.

Total U.S. ethanol subsidies reached $7.7 billion last year according to the International Energy Industry, which said biofuels worldwide received more subsidies than any other form of renewable energy.

"It is not a good policy to have these massive subsidies for (U.S.) first generation ethanol," said Gore, speaking at a green energy business conference in Athens sponsored by Marfin Popular Bank.

"First generation ethanol I think was a mistake. The energy conversion ratios are at best very small.

"It's hard once such a programme is put in place to deal with the lobbies that keep it going."

He explained his own support for the original programme on his presidential ambitions.

"One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president."

Read as "I voted for it so I could be elected president". But no, we never let politics trump science now do we?

U.S. ethanol is made by extracting sugar from corn, an energy-intensive process. The U.S. ethanol industry will consume about 41 percent of the U.S. corn crop this year, or 15 percent of the global corn crop, according to Goldman Sachs analysts.

A food-versus-fuel debate erupted in 2008, in the wake of record food prices, where the biofuel industry was criticised for helping stoke food prices.

Gore said a range of factors had contributed to that food price crisis, including drought in Australia, but said there was no doubt biofuels have an effect.

"The size, the percentage of corn particularly, which is now being (used for) first generation ethanol definitely has an impact on food prices.

"The competition with food prices is real."

Gore supported so-called second generation technologies which do not compete with food, for example cellulosic technologies which use chemicals or enzymes to extract sugar from fibre for example in wood, waste or grass.

"I do think second and third generation that don't compete with food prices will play an increasing role, certainly with aviation fuels."

Gore added did that he did not expect a U.S. clean energy or climate bill for "at least two years" following the mid-term elections which saw Republicans increase their support.

http://af.reuters.com/article/energyOilNews/idAFLDE6AL0YT20101122?sp=true

[luckytxn 2,264]

Now he admits it but many said that it would raise the price of foods. Gore is an opportunist and his quest for any greening should be in doubt.

[Mr. Big Dog 10,747]

He explained his own support for the original programme on his presidential ambitions.

"One of the reasons I made that mistake is ...

At least he can come out and say that he made a mistake in promoting and supporting bad policy.

[Ban Hammer 13,334]

At least he can come out and say that he made a mistake in promoting and supporting bad policy.

he better get busy then, he's got a lot to admit.

[I AM NOT THAT GUY 5,715]

Uh-oh! The end of the world is coming. I agree with Algore.

[Mr. Big Dog 10,747]

he better get busy then, he's got a lot to admit.

So does Bush and he hasn't even tried to start working off that long list yet. Quite the opposite. He's still defending fundamentally wrong decisions.

[Dan J 277]

Push for corn based ethanol has been driven by agribusiness (Push up the price of corn) more than environmentalism. While its renewable, its not a very efficient source of energy.

At least research is going into ethanol sources that may provide more efficient sources of energy.