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Oil Pushes $100 a Barrel--Implications for Biofuels

The FarmPolicy.com News Summary

Neil King Jr., Chip Cummins and Russell Gold http://online.wsj.com/article/SB119932015772763671.html?mod=todays_us_page_ one  reported in today's Wall Street Journal that, "The surging price of oil, from just over $10 a barrel a decade ago to $100 yesterday, is altering the wealth and influence of nations and industries around the world."

The Journal indicated that, "No one can say for sure whether sky-high oil -- part of a price boom in a wide range of commodities, from gold to wheat -- is here to stay. But most in the industry agree that a 20-year stretch in which oil was consistently cheap is long gone. The global thirst for oil shows little sign of retreating, and large new discoveries are few. Some in the industry say prices could go far higher; others suspect that speculators -- or an economic slump in the U.S. or China -- could send prices falling in the near term.

"Yesterday, with a single trade, crude-oil futures hit an intraday high of $100 a barrel, a record for the U.S. benchmark. For the day, they rose $3.64 to a record close of $99.62 a barrel. Crude is still shy of the inflation-adjusted peak of $102.81 a barrel set in April 1980, amid political turmoil in Iran and unrest elsewhere in the Middle East. The 1980 peak in nominal terms was $39.50 a barrel."

More specifically with respect to ethanol, the Journal article went on to explain that, "Pricey oil and a quest for 'energy independence' have led to an ethanol boom, but higher corn prices now pinch that industry's profits. Historically, ethanol sold at a premium to gasoline; today there's so much ethanol available that it's selling at a discount.

"Even in abundance, ethanol is a tiny factor in the U.S. fuel market, displacing a little more than 200 million barrels of crude oil annually, according to the Renewable Fuels Association. The blend of 85% ethanol and 15% gasoline called E85 is available at only bout 1,400 of the roughly 170,000 U.S. fuel stations. And though ethanol is blended into most U.S. gasoline, at up to 10%, calls to dial up that percentage have sparked controversy because of concern this might increase certain forms of air pollution."

Although President Bush just signed a new energy bill last month http://www.farmpolicy.com/?p=573 , Wall Street Journal writers Greg Hitt, Elizabeth Holmes and Alex Frangos http://online.wsj.com/article/SB119933328695164469.html?mod=todays_us_page_ one  reported today that, "Concerns about U.S. dependence on foreign oil are spilling into the race for the White House and fueling the clash between President Bush and Congressional Democrats.

"Presidential contenders yesterday pointed to the latest surge in the price of oil -- which hit $100 a barrel for the first time -- as fresh evidence of the need for more aggressive action by the government to increase the nation's energy independence."

The article noted that, "With the public mood dark, the energy issue has become a defining plank in the platforms for most major candidates, Republicans and Democrats alike. Wide bipartisan majorities backed legislation in December designed to ease the nation's dependence on fossil fuel. The measure would raise vehicle fuel-economy standards to 35 miles a gallon by 2020, a 40% increase. The legislation would also increase production of clean-burning ethanol and other biofuels. But the impact of these moves won't be felt for years."

Meanwhile, an update posted yesterday at The Ethanol Report http://www.ethanolrfa.org/industry/conference/blog/2008/01/02/ethanol-group s-react-to-record-oil-price/  also cited the new oil price benchmark, stating in part that, "Renewable Fuels Association President Bob Dinneen issued the following statement on the unhappy milestone of the new year:

'Oil's unprecedented rise to $100 a barrel underscores our economic and geopolitical vulnerability to depleting oil reserves. While developing new oil reserves is proving more difficult and expensive, the American ethanol industry is rapidly developing new cost-effective technologies that will greatly reduce our nation's reliance on imported oil from unstable regions often hostile to the United States.'

"'Developing new petroleum sources requires more energy-intensive and environmentally-questionable practices, such as the extraction of oil from the tar sands in Canada. Conversely, next generation ethanol technologies will improve ethanol's already green footprint and allow for greater ethanol production from resources ranging from corn to switchgrass to wood waste and garbage.'

"'The continuing volatility of world oil and energy markets highlights the importance of the energy legislation Congress passed late last year. By pairing higher fuel economy standards with the increased use of renewable fuels from non-traditional feedstocks, our country now has a policy and plan in place to begin mitigating the impact of volatile and ever-increasing world oil prices.'"

Oil Prices- Corn Prices and Ethanol Profitability

Recall that back in May, University of Illinois Agricultural Economists Gary Schnitkey, Darrel Good and Paul Ellinger indicated ("Crude Oil Price Variability and its Impact on Break-Even Corn Prices") http://www.farmdoc.uiuc.edu/manage/newsletters/fefo07_11/fefo07_11.html that, "For the 2006 ­ 2007 marketing year, 2.15 billion bushels of corn, accounting for 11 percent of total U.S. corn consumption, will be used to make ethanol. More corn is projected to be used in ethanol production over the next several years. If corn remains the predominant feed stock, nearly 4.5 billion bushels of corn could be used annually in ethanol production beginning in 2007-08 or early 2008-09 marketing years.

"Increasing use of corn in ethanol production holds the promise of increasing corn prices such that average corn prices in the future will be higher than average historical prices. However, ethanol production may not reduce corn price variability. As corn use in ethanol production increases, corn prices will be more influenced by oil prices. Like corn, crude oil and gasoline are commodities and are subject to price swings as a result of supply and demand changes.

"Once Federal mandates for use of biofuels are reached, ethanol's primary use will be as a substitute for gasoline. As such, the ethanol price will have to be competitive with the gasoline price so that consumers will buy ethanol-blended fuels. Because corn is the major production cost for ethanol, the price an ethanol producer will be willing to pay for corn, hereafter referred to as the break-even corn price, will be directly related to the ethanol price. As the ethanol price increases, the break-even corn price increases. Moreover, ethanol price will be directly related to crude oil price. Therefore, break-even corn prices will be positively related to crude oil prices. As crude oil price increases, the price of gasoline will increase leading to higher ethanol and break-even corn prices. Conversely, decreases in crude oil price will lead to a lower gasoline price, a lower ethanol price, and a lower break-even corn price."

The paper went on to state that, "For a range of crude oil prices, two corn break-even prices are calculated. The first break-even price is the price that would allow the ethanol producer to just recover variable costs of production. As long as corn can be purchased below this price, existing ethanol plants will find it economically advantageous to produce ethanol. The second break-even corn price is the price that would allow the ethanol producer to just recover all economic costs of production. As long as corn can be purchased below this price, there would be incentive to expand ethanol production capacities."

Research results were then summarized in this table http://www.farmdoc.uiuc.edu/manage/newsletters/fefo07_11/table1.JPG ; note that based on this analysis from May, at a crude oil price of $100 per barrel, a break-even corn price is estimated at $7.93 (covering variable costs) and $7.38 (covering all costs).

Near the conclusion of the report, the authors explained that, "While corn prices may be higher than historical averages, there is little reason to believe that they will be less variable. Oil prices will have increasing impacts on corn prices. Historically, crude oil prices have exhibited variability. Moreover, options contracts indicate that oil prices will be variable. This variability may cause more corn price variability than has occurred in the past. This variability may be further exacerbated by corn production risks and low levels of stocks which may further contribute to corn price variability."

The Center for Agricultural and Rural Development at Iowa State University conducted a similar analysis last year ("The Long-Run Impact of Corn-Based Ethanol on the Grain, http://www.card.iastate.edu/publications/DBS/PDFFiles/06bp49.pdf

Oilseed, and Livestock Sectors: A Preliminary Assessment http://www.card.iastate.edu/publications/DBS/PDFFiles/06bp49.pdf ," November 2006) and concluded that when the market price of crude oil is $60 per barrel, the breakeven market price for corn would be $4.05 per bushel. Based on the inverse relationship between the price of a barrel of oil and the relative cost competitiveness of ethanol, the Iowa State economists found that the breakeven price of corn would fall to $2.67 when the price of oil was $40 per barrel and would increase to $5.43 if the price of crude oil rose to $80 per barrel.  (See summary of results here http://farmpolicy.typepad.com/farmpolicy/files/CARDOilCorn.jpg ).

Economists at Purdue University have conducted similar modeling simulations based on the relationship between the price of crude oil, the price of ethanol, and the price of corn. Based on their modeling, Chris Hurt, Wally Tyner, and Otto Doering ("Economics of Ethanol http://www.ces.purdue.edu/extmedia/ID/ID-339.pdf ," December 2006) found that if the market price of crude oil was $60 per barrel, ethanol producers could pay up to $3.96 per bushel of corn and still breakeven. However, the model also incorporated the value of ethanol as an additive and estimated that with an oxygenate premium of $0.25 per gallon, ethanol producers could purchase corn at $4.82 per bushel and still breakeven at an oil price of $60 per barrel.  (See summary of results here http://farmpolicy.typepad.com/farmpolicy/files/PurdueOilCorn.jpg ).

The robust market price of oil, in conjunction with the newly mandated Renewable Fuels Standard will likely continue to impact the agricultural economy.  In fact, some farm policy observers have opined that the energy bill could overshadow the importance of the Farm Bill.

A Purdue University news release http://news.uns.purdue.edu/x/2007b/071221HurtEnergyBill.html  from last month stated in part that, "President Bush signed into law on Wednesday (Dec. 19) an energy bill that will have a larger long-term impact on U.S. agriculture than the pending farm bill, said a Purdue University expert.

"By increasing the Renewable Fuels Standard (RFS) to 36 billion gallons by 2022, the bill provides a road map for the production of renewable fuels from our nation's farms and forests.

"'This is not market driven,' said Chris Hurt, Purdue Extension agricultural economist. 'It's policy driven with billions of dollars and it's really going to change America.'"

***
As the demand for corn to produce ethanol persists, and a multitude of other market factors take hold, prices for some program crops have ratcheted upwards.

Based on these higher than average prices, news and analysis has focused on spring planting decisions.

A Reuters news article from yesterday (via DTN http://www.dtn.com/forms/ag/try/dtnonline/) stated that, "With an eye to world prices, U.S. farmers will expand their plantings of soybeans and wheat by roughly 8 percent this year while paring corn seedings by 6 percent, say two projections by agricultural economists.

"Prepared separately, the projections by Agriculture Department chief economist Keith Collins and by American Farm Bureau Federation economists http://www.fb.org/newsroom/nr/nr2007/12-18-07/December2007MarketUpdate.pdf foresee a 10 million-acre (4 million-hectare) increase in wheat and soybeans. Corn plantings would fall by 6-6.5 million acres (2.5 million hectares)."

The Reuters article noted that, "USDA's Collins said the high cost of nitrogen will contribute to smaller corn plantings. Record-high wheat prices will encourage larger sowings, he told USDA's radio news service."

The American Farm Bureau summary of projected acres is available here http://farmpolicy.typepad.com/farmpolicy/files/acresplanted.jpg, while the Reuters article included this summary table http://farmpolicy.typepad.com/farmpolicy/files/ReutersSummary.jpg of planting estimates from Farm Bureau and Dr. Collins.

Food Prices

As commodity prices rise, media attention continues to focus on the price of food.

Julie Jargon, David Kesmodel and Janet Adamy http://online.wsj.com/article/SB119932361635363833.html reported in today's Wall Street Journal that, "With the rising cost of milk, eggs, meat and produce contributing to the biggest jump in food prices in 17 years http://www.ers.usda.gov/Briefing/CPIFoodAndExpenditures/ , consumers are starting to feel the pinch.

"Some shoppers, already dealing with falling home values and rising fuel costs, are finding creative ways to save, opting for cheaper ingredients and private-label goods and leaning more heavily on discount grocers. And restaurant diners, who have been eating out less frequently, will likely face even higher prices on menus."

The Journal article went on to explain that, "Many of the price increases seem small on a per-item basis. The average retail price of a dozen eggs went up 38% to $1.86 in November from a year earlier; a gallon of milk rose 30% to $3.90; and whole-wheat bread rose 12% to $1.78 per pound, meaning a 24-ounce loaf of bread now costs, on average, $2.67. But the costs can add up on a weekly grocery bill. Overall, food prices as measured by the consumer price index rose at a 5.3% seasonally adjusted annual rate through November, compared with a 2.4% rise for all of 2006. That is the biggest increase since 1990.

"Food prices are rising for a number of reasons. A growing middle class in Latin America and Asia can afford more meat and milk, which has driven up demand for grain to feed cattle and hogs. A drought in Australia in 2006 reduced the supply of milk available to Asia, further pushing up the cost. Rising global demand for U.S. wheat and poor harvests in other wheat-producing countries caused wheat prices to soar to record levels last year.

"Demand for grain-derived ethanol, driven by government incentives, has helped push up corn and soybean prices, which in turn have raised the cost of many products derived from those crops, such as oils and high-fructose corn syrup, a sweetener used in everything from soft drinks to ketchup. To top it off, rising fuel costs are making it more expensive to transport food from the producers to stores and restaurants."

The Journal article also included this helpful summary graph http://s.wsj.net/public/resources/images/PJ-AL572_FOOD_20080102214130.gif regarding food prices.

In addition, this recent audio report http://www.theworld.org/?q=node/14939 , which aired late last month on The World Radio program, provided an interesting angle on food price increases. A summary of the radio segment stated that, "Rising incomes in places like China and India have increased demand on the world's food supply. Matt Sepic of KWMU in St. Louis explains how that's putting a squeeze on US food pantries."

And, a recent USDA Radio segment with outgoing Chief Economist Keith Collins (MP3 file available here http://audioarchives.oc.usda.gov/audio/features/mp3/OC-S-1623C-01-W_7976B30 B4B14473AB790BE21AE6D1871.mp3 ), also hit on the food price issue (among other topics).

Farm Bill

In Farm Bill news, Philip Brasher http://www.desmoinesregister.com/apps/pbcs.dll/section?category=PluckPerson a&U=2185bc81de004debacbdd061ab010ec2&plckPersonaPage=PersonaBlog& ;plckUserId=2185bc81de004debacbdd061ab010ec2  reported yesterday at The Des Moines Register's Cash Crops Blog that, "Democrats are going to have a tough time as it is agreeing among themselves on a subsidy means test that is anything close to what the Bush administration wants. The means test is a powerful negotiating point for the White House, just because it's about the only issue with the farm bill that will resonate with the public at large.

"The negotiations between the House and Senate are certain to take several weeks to complete once they start. Aides to the House and Senate agriculture committees started some informal discussions before Christmas, says Kate Cyrul, a spokeswoman for Iowa Sen. Tom Harkin. He'll chair the House-Senate conference committee that will be charged with writing the final bill. Harkin, who is chairman of the Senate agriculture committee, also met with his House counterpart, Minn. Rep. Collin Peterson, and the senior Republicans on the two agriculture panels.

"The House isn't due back in session until Jan. 15. The Senate is scheduled back a week later."

Keith Good President FarmPolicy.com, Inc.
Journalism Fellow German Marshall Fund of the United States
(t) 217.356.2269 Champaign, Illinois

Comments

Yehuda Draiman
post Feb 14 2008, 11:38 PM



Energy Independence begins with Energy efficiency - It's cheaper to save energy than to make energy (“Out of Oil, Here Comes the Sun??)
Why high oil prices haven't cut demand.
As oil nears $100 .
Bigger economic incentives needed to conserve energy
Driving habits little changed by gas prices
May 12: American motorists continue to fork over more money at the pump and are not changing their driving behavior despite rising fuel prices.
Despite higher fuel prices, demand hasn't fallen as it did after the 1970s oil shocks. Energy researchers say it will take greater economic incentives to boost energy efficiency and cut consumption. Accelerate the implementation of renewable energy generation, Solar, Wind, etc..

Updated January 31, 2008
MANDATORY RENEWABLE ENERGY – THE ENERGY EVOLUTION –R30
by Yehuda Draiman, Energy Consultant

Sustainability - "We strive to meet the needs of the present generation without compromising the ability of future generations to meet their own needs".

Today’s energy industry is perhaps the world’s most powerful. Energy is the basis of this entire world’s wealth, and for perhaps earth’s entire history, the sun’s energy has fueled all ecological and economic systems. If early humans did not learn to exploit new sources of energy, humankind would still be living in the tropical forests. Without the continual exploitation of new energy sources, there would have been no civilization, no Industrial Revolution and no looming global catastrophe.

In order to insure energy and economic independence as well as better economic growth without being blackmailed by foreign countries, our country, the United States of America’s Utilization of Energy Sources must change.
"Energy drives our entire economy.?? We must protect it. "Let's face it, without energy the whole economy and economic society we have set up would come to a halt. So you want to have control over such an important resource that you need for your society and your economy." The American way of life is not negotiable.
Our continued dependence on fossil fuels could and will lead to catastrophic consequences.

The federal, state and local government should implement a mandatory renewable energy installation program for residential and commercial property on new construction and remodeling projects, replacement of appliances, motors, HVAC with the use of energy efficient materials-products, mechanical systems, appliances, lighting, insulation, retrofits etc. The source of energy must be by renewable energy such as Solar-Photovoltaic, Geothermal, Wind, Biofuels, Ocean-Tidal, Hydrogen-Fuel Cell etc. This includes the utilizing of water from lakes, rivers and oceans to circulate in cooling towers to produce air conditioning, increase the use of outside air for ventilation and cooling (which also reduces indoor pollution and healthier), and the utilization of proper landscaping to reduce energy consumption. (Sales tax on renewable energy products and energy efficiency should be reduced or eliminated) (Construct new transmission lines and renewable energy zones) (We should also utilize solar energy for ocean water desalinization to alleviate the increasing water shortages – the scientists are claiming ocean levels are elevating – population, economic advancement and technology are increasing which increases demand)
“OUT OF OIL, HERE COMES THE SUN?? SOLAR ENERGY
The implementation of mandatory renewable energy could be done on a gradual scale over the next 10 years. At the end of the 10 year period all construction and energy use in the structures throughout the United States must be 100% powered by renewable energy. (This can be done by amending building code)

In addition, the governments must impose laws, rules and regulations whereby the utility companies must comply with a fair “NET METERING?? (the buying of excess generation from the consumer at market price), including the promotion of research and production of “renewable energy technology?? with various long term incentives and grants. The various foundations in existence should be used to contribute to this cause.

A mandatory time table should also be established for the automobile industry to gradually produce an automobile powered by renewable energy. The American automobile industry is surely capable of accomplishing this task. As an inducement to buy hybrid automobiles (sales tax should be reduced or eliminated on American manufactured automobiles).

This is a way to expedite our energy independence and economic growth. (This will also create a substantial amount of new jobs). It will take maximum effort and a relentless pursuit of the private, commercial and industrial government sectors’ commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) (rainwater harvesting, water conservation) (energy and natural resources conservation) in order to achieve our energy independence.

For the benefit of mankind, maintain the quality of life and preserve the tranquility of world population. Water resources must be preserved to sustain humanity. We should utilize solar and or other source of renewable energy to operate desalinization projects from the oceans. As world population increases the scarcity of water will become a cause for conflict, unless we take steps now to develop other sources of water for drinking, rainwater harvesting and graywater utilization.
To preserve the future generations sustainability, we should look into urban farming – vertical farming. The term "urban farming" may conjure up a community garden where locals grow a few heads of lettuce. But some academics envision something quite different for the increasingly hungry world of the 21st century: a vertical farm that will do for agriculture what the skyscraper did for office space. Greenhouse giant: By stacking floors full of produce, a vertical farm could rake in $18 million a year.
I believe what America needs are cool headed government leaders who understand how markets function and can work with consumers, voters and oil industry leaders to develop a viable energy strategy that will help and not hinder as our nation transitions to our new energy reality.
For German Homeowners Renewable Energy is No Longer a Choice
All new homes built in Germany from January 1st 2009 will be required to install renewable energy heating systems under a new law called the Renewable Energies Heating Law
"To succeed, you have to believe in something with such a passion that it becomes a reality."

Jay Draiman, Energy Consultant
Northridge, CA. 91324
January 31, 2008

P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.

I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.

"The way we produce and use energy must fundamentally change."
The American people resilience and determination to retain the way of life is unconquerable and we as a nation will succeed in this endeavor of Energy Independence.

The Oil Companies should be required to invest a substantial percentage of their profit in renewable energy R&D and implementation. Those who do not will be panelized by the public at large by boy cutting their products.

Solar energy is the source of all energy on the earth (excepting volcanic geothermal). Wind, wave and fossil fuels all get their energy from the sun. Fossil fuels are only a battery which will eventually run out. The sooner we can exploit all forms of Solar energy (cost effectively or not against dubiously cheap FFs) the better off we will all be. If the battery runs out first, the survivors will all be living like in the 18th century again.

Every new home built should come with a solar package. A 1.5 kW per bedroom is a good rule of thumb. The formula 1.5 X's 5 hrs per day X's 30 days will produce about 225 kWh per bedroom monthly. This peak production period will offset 17 to 2

4 cents per kWh with a potential of $160 per month or about $60,000 over the 30-year mortgage period for a three-bedroom home. It is economically feasible at the current energy price and the interest portion of the loan is deductible. Why not?

Title 24 has been mandated forcing developers to build energy efficient homes. Their bull-headedness put them in that position and now they see that Title 24 works with little added cost. Solar should also be mandated and if the developer designs a home that solar is impossible to do then they should pay an equivalent mitigation fee allowing others to put solar on in place of their negligence. (Installation should be paid “performance based??).

Installation of renewable energy and its performance should be paid to the installer and manufacturer based on "performance based" (that means they are held accountable for the performance of the product - that includes the automobile industry). This will gain the trust and confidence of the end-user to proceed with such a project; it will also prove to the public that it is a viable avenue of energy conservation.

Installing a renewable energy system on your home or business increases the value of the property and provides a marketing advantage. It also decreases our trade deficit.

Nations of the world should unite and join together in a cohesive effort to develop and implement MANDATORY RENEWABLE ENERGY for the sake of humankind and future generations.

The head of the U.S. government's renewable energy lab said Monday (Feb. 5) that the federal government is doing "embarrassingly few things" to foster renewable energy, leaving leadership to the states at a time of opportunity to change the nation's energy future. "I see little happening at the federal level. Much more needs to happen." What's needed, he said, is a change of our national mind set. Instead of viewing the hurdles that still face renewable sources and setting national energy goals with those hurdles in mind, we should set ambitious national renewable energy goals and set about overcoming the hurdles to meet them. We have an opportunity, an opportunity we can take advantage of or an opportunity we can squander and let go,"

Solar energy - the direct conversion of sunlight with solar cells, either into electricity or hydrogen, faces cost hurdles independent of their intrinsic efficiency. Ways must be found to lower production costs and design better conversion and storage systems.

Disenco Energy of the UK has announced it has reached important
milestones leading to full commercialization, such as the completion of
field trials for its home, micro combined heat and power plant (m-CHP).
The company expects to begin a product roll out in the second quarter of
2008.
Operating at over 90 percent efficiency, the m-CHP will be able to
provide 15 kilowatts of thermal energy (about 50,000 Btu’s) for heat and
hot water and generate 3 kilowatts of electricity. The m-CHP uses a
Stirling engine generator and would be a direct replacement for a home’s
boiler.
Running on piped-in natural gas the unit would create some independence
from the power grid, but still remain connected to the gas supply
network.
Whereas heat is supplied only when the generator is running (or
conversely electricity is generated only when heat is needed) a back-up
battery system and heavily insulated hot water storage tank seem
eventual options for more complete energy independence.

FEDERAL BUILDINGS WITH SOLAR ENERGY – Renewable Energy
All government buildings, Federal, State, County, City etc. should be mandated to be energy efficient and must use renewable energy on all new structures and structures that are been remodeled/upgraded.
"The government should serve as an example to its citizens"

A new innovative renewable energy generating technology is in development. The idea behind Promethean Power came from Matthew Orosz, an MIT graduate student who has worked as a Peace Corps volunteer in the African nation of Lesotho. Orosz wanted to provide electric power, refrigeration, and hot water to people without electricity. He and some MIT colleagues designed a set of mirrors that focus sunlight onto tubes filled with coolant. The hot coolant turns to pressurized vapor, which turns a turbine to make electricity. The leftover heat can be used to warm a tank of water and to run a refrigerator or an air conditioner, using a gas-absorption process that chills liquid ammonia by first heating it.
IS TECHNOLOGY BEING HELD BACK
New Solar Electric Cells - 80% efficient
Mr. Marks says solar panels made with Lepcon or Lumeloid, the materials he patented, ... Most photovoltaic cells are only about 15 percent efficient. ...
In late July 2007 University of Delaware researchers Honsberg, 40, and Barnett, 67, set a world record for solar efficiency, converting 42.8% of the sun's radiation into electricity with their prototype cell. That's almost three times as efficient as commercial solar cells. "We think we can do 50%," says Barnett. He and Honsberg are working to build practical devices by 2010, with support from the U.S. military and an industrial group led by DuPont
A major increase in daily petroleum output is deemed essential to meet U.S. and international oil requirements in 2020, and so we should expect recurring oil shortages and price increases. Only by expediting the diminishing our day-to-day consumption of petroleum and implementing of efficiency and renewable energy policy can we hope to reduce our exposure to costly oil-supply disruptions and lower the risk of economic strangulation.
Quick Facts
? Energy is vital to every sector of the U.S. economy. As our economy grows, the demand for energy rises.

? Total energy consumption is projected to increase 35 percent by 2030.

? Energy-efficiency improvements have played a major role in meeting national energy needs since the 1970s, relative to new supply.
ULTRACAPACITORS - But what if you could harness a technology that would enable you to drive 500 miles round-trip on a 5-minute charge?

That's the promise of U.S. Patent No. 7,033,406 which promises, maybe even threatens, to do away with the internal combustion engine, and the traditional car battery, all in one swoop.
The patent is the property of Austin-based startup called EEStor, which touts "technologies for replacement of electrochemical batteries." In layman's terms, that means you could use the EEStor technology to drive from Boston to Philly and back without a drop of gasoline.

The Vertical Farm is a concept that seeks to address the major concerns of the environmental degradation of the modern city by composting, recycling waste and farming in a standard tenement building. The "ecological footprint" of the city will be lessened and therefore the city will become a more sustainable setting. The reduction of wastes and the production of foods for consumption will in turn increase the quality of life for all those within the city and its surrounding area. The reduction in transportation of both wastes and of food products and the use of abandoned buildings will directly increase the quality of the urban settling.
Inverse Offshore Pump Accumulation station (IOPAC). The concept is a relative (and sort of the inverse) of onshore pumped storage hydroelectric facilities where water is pumped to high elevation ponds with surplus power, then released when needed for peak power demands on the grid.
THE BATTLE FOR YOUR ELECTRIC BILL Private-equity buyout funds are targeting electric power companies in deals that generate massive debt, stop the building of better plants and jack up rates. They take the profits and stick consumers with the cost.
In three detailed future scenarios, the SRA describes concrete outcomes of sustainable chemistry in health care, energy efficient housing and industrial bioprocesses.
The energy-generating home scenario demonstrates how smart materials and energy management can, for instance, help reduce heat loss, improve energy efficiency and transform kinetic energy into electricity. These technologies will turn tomorrow’s home into an independent mini power plant capable of exceeding its own energy requirements.
Personalized health care to meet the growing demands of an ageing society are another application of SusChem’s SRA. Using future nano and biotechnologies and materials, sustainable chemistry will help accelerate intervention using remote monitoring and intervention systems, improve diagnostics through advanced medical imaging techniques, and reduce the intrusiveness of the medical treatment overall.
A Guide for the Survival of Humankind, and Improving the World, Society, and Yourself!
Yet who can the world trust to be idealistic and moral enough to help all of humanity and the environment, and at the same time, be practical enough to make extremely difficult decisions that can and will harm a great deal of people?

STEP INTO THE LIGHT – AND OUT TO THE WORLD.
THE NEW DAWN OF SOLAR
A California firm “Nanosolar of San Jose?? says it is producing solar panels for 30 cents per watt. If true, then a power plant made from these solar panels should produce electricity cheaper than a coal plant.
Nanosolar’s cells use no silicon, and the company’s manufacturing process allows it to create cells that are as efficient as most commercial cells for as little as 30 cents a watt. “You’re talking about printing rolls of the stuff—printing it on the roofs of 18-wheeler trailers, printing it on garages, printing it wherever you want it,?? says Dan Kammen, founding director of the Renewable and Appropriate Energy Laboratory at the University of California at Berkeley. “It really is quite a big deal in terms of altering the way we think about solar and in inherently altering the economics of solar.??
Energy Recovery Ventilators (ERV). ERV is the technology that completes an HVAC system. The "V" in HVAC can no longer be ignored and higher ventilation loads require a new design approach. Whether you are a home owner, business owner, building administrator or engineer, it is essential to realize the importance of indoor air quality (IAQ) and fresh air ventilation. It reduces the cooling load and saves energy.
Yehuda Draiman, Energy Consultant
Northridge, CA 91324
Email: renewableenergy2@msn.com

Posted on: 2/2//2008


diana
post Feb 15 2008, 11:50 PM


While you could stand to edit, I did find the following, for which I thank you greatly:
QUOTE
THE BATTLE FOR YOUR ELECTRIC BILL Private-equity buyout funds are targeting electric power companies in deals that generate massive debt, stop the building of better plants and jack up rates. They take the profits and stick consumers with the cost.

We are allowing this to occur in the US, and we are allowing it in Iraq and all the other countries we are occupying or have occupied as an invader; in all cases, the taxpayers see nothing but bills, while the corporate profiteers run with our money, most likely to offshore banks. Nice, huh? And yet we do nothing!

OTOH, I'm not so impressed with your hawking nanotechnology; untested, and the potential for damage is too great. I'd rather see us have to keep thermostats down ten additional degrees in the winter than open up the potential for horrors of nano-anything. We don't need new ways to die young; we have plenty! --d

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