Energy policy must be built on economics, not on straw
By Graham Searjeant, Financial Editor
THAT embarrassing spat in December between Tony Blair and Jacques Chirac could soon look like yesterday’s row between yesterday’s men. The Common Agricultural Policy is classically criticised for producing too much food at too high prices and for undermining cheaper Third World producers by dumping the remainder on world markets. America is not much better. The Doha Round is in limbo because the EU has told the rest of the world that it must offer juicy trade advantages if reforms in the CAP or EU tariffs are to go beyond the restructuring of subsidies.
In a few years, however, agriculture in Europe could be transformed, virtually abandoning many commodity food crops. Instead of being our nations’ larders, the fields could become giant intensive fuel factories. Fuel crops, in this vision, will become the most practical way to use solar energy, turning the sun’s rays into a few standard forms of vegetable matter to power vehicles and generate electricity in less environmentally objectionable thermal power stations.
The latest “vision” comes from President Bush. He used his annual State of the Union address to tout a new energy policy that would free America from the chains of dependence on Middle East oil. He backed all the usual things: nuclear power, solar cells, wind farms, hydrogen, petrol-electric vehicles and fuel efficiency. But his focus was on something called “cellulosic” ethanol, a patented process developed in Canada that aims to turn prairie grasses, corn straw and wood chips into an ethanol alternative to petrol in cars, vans and lorries. Vehicle fuel accounts for nearly half America’s oil use.
Ethanol is certainly a practical fuel. Brazil makes enough from sugar cane to deliver more than half the power for the cars on its roads, though it took a long time and massive interference with markets. Ethanol production is not without problems. In America it comes from ears of corn and takes nearly as much energy to convert as it delivers. The new process uses enzymes to break down tougher material, such as the heavy corn stalks.
(to read the rest of the story, click here)
THAT embarrassing spat in December between Tony Blair and Jacques Chirac could soon look like yesterday’s row between yesterday’s men. The Common Agricultural Policy is classically criticised for producing too much food at too high prices and for undermining cheaper Third World producers by dumping the remainder on world markets. America is not much better. The Doha Round is in limbo because the EU has told the rest of the world that it must offer juicy trade advantages if reforms in the CAP or EU tariffs are to go beyond the restructuring of subsidies.
In a few years, however, agriculture in Europe could be transformed, virtually abandoning many commodity food crops. Instead of being our nations’ larders, the fields could become giant intensive fuel factories. Fuel crops, in this vision, will become the most practical way to use solar energy, turning the sun’s rays into a few standard forms of vegetable matter to power vehicles and generate electricity in less environmentally objectionable thermal power stations.
The latest “vision” comes from President Bush. He used his annual State of the Union address to tout a new energy policy that would free America from the chains of dependence on Middle East oil. He backed all the usual things: nuclear power, solar cells, wind farms, hydrogen, petrol-electric vehicles and fuel efficiency. But his focus was on something called “cellulosic” ethanol, a patented process developed in Canada that aims to turn prairie grasses, corn straw and wood chips into an ethanol alternative to petrol in cars, vans and lorries. Vehicle fuel accounts for nearly half America’s oil use.
Ethanol is certainly a practical fuel. Brazil makes enough from sugar cane to deliver more than half the power for the cars on its roads, though it took a long time and massive interference with markets. Ethanol production is not without problems. In America it comes from ears of corn and takes nearly as much energy to convert as it delivers. The new process uses enzymes to break down tougher material, such as the heavy corn stalks.
(to read the rest of the story, click here)
posted by Oil Shock at 9:29 PM
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