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 Evidence against ethanol is clear: ALFA 

Evidence against ethanol is clear: ALFA

17/04/2008 2:20:00 PM
Cattle lotfeeders have welcomed a new report that has recommended government support for the Australian biofuels industry be removed because the costs outweigh the benefits.

Australian Lot Feeders Association vice president, Jim Cudmore, says the report has added to the considerable weight of evidence around the world "that Governments need to rethink their support for biofuels and in particular grain derived ethanol production".

He says the report, "Biofuels - at what cost?" by the International Institute of Sustainable Development

found that Federal Government support for the biofuels industry was as much as $95 million in 2006-07.

"Alarmingly it found that not only was Australian Government assistance per litre of ethanol greater

than in the US (65c versus 47-57c) but it was forecast to increase further to 2011," Mr Cudmore says.

"The effective rate of assistance for sorghum-derived ethanol production at 240pc was also massively higher than for intensive livestock industries (5pc) that are forced to compete with the ethanol industry for grain.

"This situation is distortionary, unfair and inconsistent with Australia's stance in support for deregulation and reduced Government protection.

"The study states that Government grain derived ethanol industry assistance is not cost effective, should be removed and that the objectives for biofuels could be cheaper met through other means.

"This conclusion supports the findings from the Federal Biofuels Taskforce, ABARE, the Parliament

of Australia and the Victorian inquiry into biofuels."

* The report can be downloaded from http://www.iisd.org/pdf/2008/biofuels_subsidies_aus.pdf

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Comments


I have seen consistent complaints from consumers for mileage loss - between a 10 to 15% loss.

I go through a tank of gas much faster.

If I was losing what the government claims because ethanol has a lower energy value of 30 percent, which with ethanol added to gasoline at 10% would be a 3 percent mileage loss, I would never notice it.

What I’m wondering is if anyone is reaching the conclusion I am which is that if we're adding 10 percent ethanol to gasoline and losing between 10 and 15 percent mileage, well do the math.

If this country has been throwing away 10 and 15% mileage while also paying for the ethanol industry to pretend it's producing fuel, well it is no wonder the economy is falling apart.

Posted by bobbyfontaine on 18/04/2008 12:49:30 AM
This is good coming from an industry that has survived on the back of cheap grain and appalling conditions for cattle feeding in a totally unnatural way producing a tasteless product we call beef in Australia.

Let us see free range beef and ethanol so there can be a reduction of CO2 and a return to decent tasting beef that is not force fed.

Posted by Sandy Reece on 18/04/2008 8:29:40 AM
So the biofuel sector receives $95 million in support from the Government.

Even the Prime Minister's Taskforce identified that E10 reduces the PM emitted from cars, E10 reduced it by approx 25%.

The combined economic cost of motor vehicle-related mortality and morbidity from PM from vehicle exhausts is 1.6 to 3.8 billion dollars per year.

Reduce the emissions by 20% and save $0.6 billion per year. Speaks for itself.

Start using a Flex Fuel car and the mileage is on par with petrol and cheaper.

Interesting how Scania is developing its new fleet to run on 100% ethanol.

No one even considers the support dollars provided to the oil industry for exploration.

But Alfa always wants cheaper grain.

Posted by Health cost alone counter the input on 18/04/2008 9:11:09 AM
What the lot feeders seem to consistently overlook is the fact that the byproduct from grain-based ethanol production, Distillers Grains, is a very cheap, high protein feed source for lotfeeding.

Instead of food vs fuel, it is food AND fuel from the one crop.

But let's not let the facts get in the way of an oil company smear campaign.

As for the effects of ethanol on exhaust emissions, how's this quote from the head of the Australian Medical Association (presented to the Federal Govt in 2005):

"In our opinion, there is incontrovertible evidence that the addition of ethanol to petrol and biodiesel to diesel will reduce the deaths and ill-health associated with the emissions produced by burning those fuels." Source: http://www.ama.com.au/web.nsf/doc/WEEN-6EP5AS

Add to that the very real and demonstrated greenhouse gas reductions associated with switching to ethanol (as the plants from which the fuel is made take CO2 from the atmosphere to photosynthesise).

And the fact that ethanol is Australian made from Australian-farmed grain (hence reduces our substantial petroleum imports).

Posted by Free Range on 18/04/2008 10:25:29 AM
Grain prices are set in an international market.

What the Australian government does or does not do makes little difference to grain prices.

Grain prices rises are mainly due to the rapidly growing developing economies such as China and India.

The evidence is in the rapidly rising wheat and rice prices.

Posted by Get Real on 18/04/2008 12:51:53 PM
Ethanol in fuel addresses two great tragedies of the modern era.

Firstly, air pollution from fossil fuels is damaging people's health (ie. cancer) at an alarming rate and secondly the health risks from high levels of omega 6 and nitrates in the range or feedlot meat products.

The ethanol industry will produce grain by-products that can be added to other nutrients to produce soil conditioners and stock feeds that actually improve soil and animal health.

These byproducts can also produce a protein rich food for people.

Also, cleaner air from the use of ethanol will benefit everyone and lower national health costs.

Welcome feedlotters to the real world of soil, plant, animal and human health care through biotechnology innovation.

The greed from the feedlot industry is obvious.

Posted by mangiri on 18/04/2008 1:02:46 PM
I am truly amazed at the lack of credible research that is relied upon to substantiate the Australian media's take on the biofuels industry, not only in Australia but globally.

Anyone who has a shred of common sense, basic knowledge of economic cycles, pro-active in the quest for improved health (for the public and the environment) and unwillingness to be conned by bias misinformation will see that the biofuels industry is not only here to stay but is the beginning of a new and better standard of conduct!

Don't get me wrong, there are many improvements to be made in the industry but they will be made and to the benefit of all economies... Second generation feedstocks, DDGs, sustainable power generation (Solar, geo-thermal, hybrid technologies), improved processes, revival of rural communities to name only a few...

When fossil fuels run out in the not to distant future (we are all aware that they are peaking now) it will be the same biofuels bashers who will be standing on their soapboxes demanding answers to why bigger steps were not taken to create alternatives.

Stop being scared of change!

I was under the impression that Australians were leaders, we have to fight for what is right for us our environment and our country!

Embrace biofuels and everyone will benefit.

Posted by Support Australian Farmers by Supporting Biofuels! on 18/04/2008 1:45:40 PM
Much has been said regarding the perceived value of ethanol by-product ie distillers' grain to intensive industries.

The facts are that it is difficult and more expensive to store, transport, handle and mix due to its moisture content/weight and bulkiness.

It also contains high levels of bypass protein leading to potential heat stress issues in summer, while high levels of sulphur and phosphorous may lead to other animal health problems.

Other reports in the US found that it has high levels of E Coli.

I also suggest readers look at the facts regarding the stated environmental benefits of ethanol.

It is a 1-4% benefit over petrol at best.

It also burns higher levels of nitrous oxide than petrol, a greenhouse gas 310 times more potent than CO2.

Don't just take my word - see the CSIRO report on the issue. http://www.rirdc.gov.au/reports/EFM/07-071.pdf

Posted by ethanol is not the answer on 18/04/2008 2:21:21 PM
How about you look at Brazil.

They are the leaders of the world in ethanol production and research.

There is no point looking at CSIRO reports as they only have a tiny Australian industry to look at.

The Brazilians have perfected the process and are also number 1 in beef with only 4% of the herd in feed lots.

Bring on ethanol and lets reduce our dependance on imported petrol.

It is the biggest potential threat to our economy if we continue to import instead of produce our own.

Posted by Sandy Reece on 18/04/2008 4:13:28 PM
Brazil has an ethanol industry based on sugar cane whereas Australia's ethanol industry is restricted to primarily grain and its by-products. Sugar cane is far more energy intensive than grain and therefore has far greater fuel conversion rates as well as benefits in terms of greenhouse gas reduction. Look at ANY report that compares the greenhouse gas benefits of sugar cane versus grain derived ethanol production and this will be confirmed. See the most comprehensive report on biofuels in Australia http://www.feedlots.com.au/members/private/ethanoldocs/pmsta skforcereport.pdf

The fuel security argument is flawed as Australia's droughts will lead to grain shortages, reduced grain exports and potential imports of grain. A mandate for ethanol content in fuel (as proposed in NSW and QLD) would aggravate this situation. Ethanol may offer benefits in the future but if Brazils ethanol industry (despite being the most efficient in the world) can't survive without significant Government assistance after several decades, what hope does Australia's grain derived industry have? The sooner the industry commercialises second generation ligno cellulosic ethanol (which doesn't use grain) the better....

Posted by Ethanol is not the answer on 23/04/2008 10:24:15 AM
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