[note: this letter is in response to my essay on farm subsidies in Winnebago County. -Tony Palmeri]
January 24, 2002
Tony,
I am an agricultural engineer. I was raised on a farm in South Dakota during a time (1970s) when the fervor for farm scale ethanol plants first burst on the scene. My college roommate's father invested in an alcohol plant and subsequently went bankrupt. I did my masters thesis on "The Energy Requirements For Distillation in a Farm Scale Ethanol Plant".
I am not crazy about the idea of a small scale plant for several reasons. None of my reasons has anything to do with the furor that is going on in the town of Utica.
First, I am concerned about "creating a market for local corn". What is the price point for corn that will make the plant stop being profitable? If corn prices rise locally to $5.00 per bushel will the plant be able to turn a profit? Will farmers be given a contract for a guaranteed price?
Second, What is the demand for ethanol and is it a growing market with a long term future?
Third, Consider the energy balance in this process. Recalling from my thesis, the amount of energy consumed to produce a gallon of ethanol substantially exceeds the amount of energy contained in each gallon. Consider the diesel fuel consumed per acre to till, plant, cultivate, spray, harvest and truck the corn. What energy source is to be used to cook the beer and distill the alcohol. If biomass or coal or natural gas are used to fire the plant, aren't we trading one resource for another?
The benefit of ethanol is that it is a liquid fuel that can be burned in our automobiles, mostly as an octane booster. The problem is we are consuming more liquid fuel than we are creating. Granted, ethanol is a specialty fuel that serves an important purpose in reducing pollution generated by our cars.
I do not see an ethanol plant as another "GEAR FEEDS"--that was ill-conceived and driven out of Oshkosh for creating bad odor and bad public relations. The main exhaust will be from the cookers and the distillation column. This is nothing like what a paper plant puts out. The liquid remaining from the distillation will be mainly condensed water, less toxic than most cleaning solutions we run down the drain every day. The mash remaining from the beer can be fed to livestock. The plant in my estimation will not cause any quality of life concerns. As for being a fire hazard, any gas station deals with the same risk of handling a bulk combustible liquid. Regulations imposed by the government will require that all safeguards be taken and will be subjected to inspections for compliance.
I think the town of Utica is upset for all the wrong reasons. The real concern is who is going to get stuck with the bills should this operation turn out to be unprofitable.
Regards,
Jim Lemmer