The issue of investment and financing for ethanol plants and bio refineries in general was addressed today by Chris Groobey, Baker & McKenzie, LLP. He works on project financing with investors and lenders and mostly in renewable fuels. He painted a pretty bleak picture.
In fact, he says the New York investment community is not interested in biofuels right now. He says they’re tapped out and that ethanol and biodiesel are not of interest to them at all. So with that being said, what’s next? He says there needs to be a combination of making more money from existing plants by co-locating other facilities or finding other sources of income from the same plant. He also thinks there needs to be more and bigger business structures.
He says this means we’re returning to more traditional models of rural development that take a longer term view. He recommends growing local agriculturally skilled management teams with people who understand farm risk.
You can listen to my interview with Chris here: [audio:http://www.zimmcomm.biz/farm-foundation/ff-bio-08-groobey.mp3]
You can also download the interview using this link (mp3).
Our USDA Under Secretary for Research, Education and Economics is Gale Buchanan. He was here at the Transition To A Bio Economy conference to talk about the need for research in a growing bio economy. In fact, he sees a need for a tremendous amount of research to address the opportunities presented by the whole energy picture.
When it comes to infrastructure needs for a bio economy our rural road system is a key component. To speak about it here at the Transition To A Bio Economy conference we heard from Frank Dooley, Purdue University. He sees a big increase in grain production, primarily in the midwest. With that comes a growing demand for transportation. He thinks we should be concerned because most of the corn will be moved by truck and that’s going to impact rural roads. He also sees an increase in rail transportation but not significantly.
During our discussion on the infrastructure needs of a Transition To A Bio Economy, we heard from Paul Hammes, Union Pacific Railroad. Of course his focus was on rail infrastructure and as it relates to biofuels. Specifically, he spoke to the different pieces of that supply chain like rail cars, the rail network and unload/load capacity.
The opening speaker for day two of Farm Foundation’s Transition To A Bio Economy conference is our USDA Under Secretary for Rural Development, Thomas Dorr. He talked about rural policy and we visited for a while before the session got started.
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Electric utility giant Consolidated Edison… Con Ed as it is affectionately known… announced today it will run more biodiesel in its vehicles.
Soybean growers say their crop is being unfairly maligned in the Food-versus-Fuel debate. Members of the United Soybean Board gathered in Indianapolis, Indiana this week, and part of what they are discussing is how to counter arguments supporting that viewpoint.
The government wants to know more about the biodiesel production operations in this country.
Sarah Brechbill, Purdue University, got to put her masters degree project on the stage today here at the Farm Foundation’s Transition To A Bio Economy conference. She looked at the cost to get biomass to a plant and specifically looked at switchgrass and corn stover.