When Secretary of Agriculture Mike Johanns spoke at the National Press Club on July 27, the inevitable question about ethanol was asked.
“Corn-based ethanol may help the nation reduce its dependence on foreign oil, but critics say that ethanol costs almost as much as the energy it produces. Isn’t corn-based ethanol a wasteful way to produce energy, and won’t it increase the cost of food?”
Johanns first response was brief and to the point, “No, and it isn’t.”
After the laughter died down, he elaborated on the issue.
“Every year we have some inflation relative to food, 2 percent, 3 percent, somewhere in that vicinity, some years maybe a little bit more, a little bit less. This year with all of this debate raging we anticipate that food prices across the board will be impacted 2 to 4 percent, about average, maybe a little bit higher. Then when you look at that, many articles I read see that and then they go right to the conclusion, it’s because of ethanol, it’s because the price of corn got high and that’s the reason.
“They leave out a whole big piece of the analysis. What’s the big piece of the analysis? The farmer doesn’t get all of that. I’m sure they wish they did. But they get about 20 cents of the retail dollar. Actually the increase in the price of energy to ship that food can have as much or more of a profound impact on the price of that food than the corn you feed to the animal.”
Read the press club transcript here.
Electronics retailer Rex Stores Corp. has invested the final $10 million in an Iowa ethanol maker. The investment completes the retailer’s $20 million investment stake in Big River Resources, LLC.
This article on BizJournals.com says last October, Rex invested the first $5 million in the company:
Big River Resources is a holding company for several entities including Big River Resources West Burlington LLC, which runs an ethanol plant in West Burlington, Iowa. The ethanol plant starting operating in April 2004 as a 40 million gallon per year plant and expanded to a 52 million gallon plant in August last year. It plans to eventually ramp that production up to 80 million gallons per year. 
”The 1,251 E85 fueling stations operating today in 41 states across the nation pale in comparison to the number of sites needed to satisfy the demands of the motoring public and the nation’s automakers,” said Phil Lampert, NEVC Executive Director.
Fargo hosted the state’s official labeling kick-off event on Thursday at the Cenex Convenience Store. North Dakota Governor John Hoeven; 
“We’re increasing production of ethanol at a strong pace, and it’s important to increase public awareness of its benefits through our marketing efforts as well,” Hoeven, said. “Enhanced ethanol production is a win for our farmers and rural areas, and a win for our economy.”
Australia-based Terra Fuel Technologies has come up with what I think is truly a revolutionary device. It’s a box that you add to a diesel engine that allows it to run on ethanol as well.
Some of London’s famous black cabs will be going green. About 3,000 of the Radio Taxis Limited cabs will be running on a 30 percent blend of biodiesel. 
A wind farm four times bigger than what’s currently in operation is slated for construction in Texas. 
The heavy metal band Korn will be running its tour on biodiesel this summer. Members Jonathan Davis, bassist Reginald “Fieldy” Arvizu, and guitarist James “Munky” Shaffer made the announcement that the band’s eight buses and eight cargo trucks will run on biodiesel during a 
“From a farm standpoint, in 2006 the farmer received about 1.4 cents for the corn in that $5 tub at the movie theater. In 2007, that same farmer will receive about 2 cents to fill that tub. How can an increase of 0.6 cents to the farmer justify a price hike to movie goers or crazy headlines in the news media?”