Moments of Clarity

consolidation

This is just another reminder that very soon, all posting for Ethanol Alley will be done on my main blog/corporate site www.mitchgroup.com.

From a formatting, linking, general effort perspective...this is the right decision.  If you link to this site or blog roll it, I will understand if you decide not too...now that my other business, Midwest, family writings will be intermingled. 

The purpose for launching the Ethanol Alley blog was to build awareness and to further the message that the U.S. must become energy independent.  Many others are carrying that torch very well today. 

In the near future, you'll be seeing an increase of ethanol related posts as I have redoubled my efforts to start a company that provides supporting technologies for the ethanol industry. 

Filling the Pipeline

I've wondered when this would happen. 

Ethanol production is increasing ever rapidly...while transportation of the product is proving more dicey than ever.  Since today, it's generally accepted that ethanol corrodes pipelines and thus cannot be transported in this method, we're stuck. 

Enter Senators Harkin (D-Iowa) and Lugar (R-Ill) who've introduced a bill directing the US DOE to do a feasibility study on transporting ethanol via pipeline from the Midwest to the coasts. 

Benefits will only continue to grow

A piece appeared in the USA Today entitled, "Midwest farms reap benefits of ethanol boom"
on October 2.  The article describes the ripple effect of higher corn prices, land prices, and lower property taxes that certain farming communities have experienced with the boom of ethanol plants around Iowa and the greater Midwest. 

The final paragraph of the article takes the usual parting shot at the industry:

There are some doubts that alternative fuels can end the country's dependence on foreign oil.

For years, studies showed that more energy is required to produce ethanol than is saved when it's used in gasoline. A University of Minnesota study released in July concluded that ethanol and biodiesel made from soybeans return more energy than is consumed in growing the grains and distilling them into fuel.

The citizens of U.S. understand this and accept it by now folks.  Someday, corn will not be used in any form to make Ethanol I'm guessing.  That's not the point.  The point is that we've crossed the threshold of "Home Grown Energy Independence".  Now if we seize this opportunity and the U of Iowa and Iowa State do their jobs, this wonderful state will lead the transition of the Midwest from "farming and manufacturing" to "bioscience and energy production technologies".

Momentum

Iowa's biggest name in Venture Capital is putting together an $800 million deal to fund ethanol production plants.  In this article found in the Des Moines Register, John Pappajohn is apparently trying to put together a co-op of rural ethanol production plants using a $300 million IPO and a $500 million debt placement.

Pappajohn was reported to say that he, "Didn't want to see someone take over ethanol that didn't have the farmers' best interest at heart."

This is a very big deal. Funding moves like this are what continue to fuel the fire in Ethanol Alley.

Honda = Success

Anytime Honda gets involved with something, it increases the likelihood of success by a large factor.
Read this piece from the USA Today discussing how Honda may have found a more efficient way to convert bio-mass into fuel.

Just In....$200 million for Cilion?

Cilion, the 3 month old Ethanol production/Grain milling partnership has likely just received a massive influx of $200 million in venture capital.  The story is developing and followed here on Venture Beat.

The NIMBY Crowd Invades Iowa

<p>It didn't take long for <a href="http://www.kcci.com/news/9725540/detail.html">someone in Iowa to join the <strong>Not In My Backyard</strong> (NIMBY) crowd.</a>  I thought we'd be immune to this for a bit longer but I was wrong.  </p>

It's Beginning

The discussion, debate, influx of money, politics, and reality of Ethanol is playing out just how many have hoped.  The door was opened and around the U.S. we've finally walked in.  Now, research in biochemistry and cellulosic Ethanol production is accelerating.  This article in the Des Moines Register discusses this.

We're just at the beginning of a curve where corn is easy, fast, and not so efficient in Ethanol production.  Soon, we'll be wondering what took us so long to become energy independent as a nation as new crops and processes accelerate production and efficiency.

It's a great time to be in Ethanol Alley.

May the Best Billionaire Win

Business 2.0 Magazine wrote a nice piece about the burgeoning battle between types of ethanol production, and the billionaires betting on them, including Branson, Gates, Doerr, Allen, Case, and Khosla. 

Finally, the Heart of the Matter

Someone is finally making headlines with the key issue to U.S. wide adoption of Ethanol.  A Minneapolis Star Tribune piece on Kevin Schieffer and his attempts to get a new rail line built through the Midwest appeared yesterday.

If this piece of the puzzle is solved along with removing inefficiencies in the trucking portion of the logistics, we'll convert as a nation much more quickly.