Making Easy Money Out Of BioFuels
(http://www NULL.mygreenhealth NULL.com)The Business Of BioFuels
There is no doubt that it would be easy to link the dots from the biofuels promotions to high grain prices to rising food costs. And since I know there is now an emerging great interest in biofuels and its lucrative potential, boy do I have a very attractive deal for you. Without the effort of this admirable lawmaker, this could not have come into fruition so you can shower Sen. Chuck Grassley of Iowa a lot of gratitude though I don’t think this is what he had in mind when he pushed biofuels to our consciousness.
Sen. Grassley is a model Midwestern Republican who gets top ratings from farmers and the chamber of commerce. He is a diligent worker who has never missed a vote and as a consequence his constituents give him a high rating and good political goodwill. Far from being some left-leaning liberal, he’s not really an environmentalist or longtime energy saver. However, he succeeded to put biofuels on the map in effects. The profit map, I mean.
Sen. Grassley inserted a “Blenders Credit” into the Jobs Act of 2004. It awards a $1 per gallon credit for blending diesel with biofuels. He meant for it to benefit his corn-farming folks back home. The idea has proved so good at encouraging blending that, as of March 2008, the United States is now exporting more bio-blended fuel than it produces. Doesn’t that astonish?
The miracle revival in our oil export game works this way. Someone in another country loads a tanker with 9 million gallons of cheaply produced biofuel and brings it to the United States. Malaysia has been one of the principal origins. And of course, we have Brazil.
Now, once the biofuel load is here, a “blender” pumps in 9,000 gallons of diesel. And voila! You have $9 million dollars in subsidies for blending diesel with biofuel. To make this scam even better, the tanker then sails off to Europe and sells its U.S. subsidized cargo to Europeans which on it face undercuts European producers and farmers. Sounds like another very enterprising operation, right?
Very little of the content comes from the U.S. in this scheme—just .01 content in the extreme case. None of it has to stay here. But the sad thing is that we U.S. taxpayers just spend $9 million to encourage biofuels.
Isn’t this another great moneymaking green idea? You just have to get a tanker.
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