Apocalypse
11-22-2010, 11:21 AM
U.S. corn ethanol "was not a good policy"– Gore
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."
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…
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."
http://af.reuters.com/article/energyOilNews/idAFLDE6AL0YT20101122
So his backing was because he intended to run for Pres. and knew this would help secure Iowa. He also admits that it was totally incorrect and the benefits are not there. And then turns around and tries to blame the "Evil Lobbyist".
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."
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…
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."
http://af.reuters.com/article/energyOilNews/idAFLDE6AL0YT20101122
So his backing was because he intended to run for Pres. and knew this would help secure Iowa. He also admits that it was totally incorrect and the benefits are not there. And then turns around and tries to blame the "Evil Lobbyist".