• Home
• Calendar
• Advertising
• About Us
• BDI™ stocks
• Industry jobs

 Subscribe

John McCain outlines new energy policy focused on 45 nuclear plants and clean coal technology support

In Missouri, Senator John McCain of Arizona outlined the centerpiece of his new energy policy by calling for the construction of 45 new nuclear reactors by 2030 and said he would earmark $2 billion for the development of clean coal technology. McCain said “Perhaps no advancement in energy technology could mean more to America than the clean burning of coal and the capture and storage of carbon emissions.” McCain expressed support for offshore drilling earlier this week.

McCain background

Senator McCain said that he supports the ending of ethanol subsidies, would back a repeal of the ethanol tariff, and would support the inclusion of Brazil and India into a larger G8 group. McCain was quoted in Estato de Sao Paulo saying that he favors the removal of Russia from the G8.

Recently, Sen. McCain, who introduced the first proposed cap-and-trade bill in the Senate in 2003, said: “The facts of global warming demand our urgent attention, especially in Washington. Good stewardship, prudence, and simple common sense demand that we act to meet the challenge, and act quickly,” he said. “I will not shirk the mantle of leadership that the United States bears. I will not permit eight long years to pass without serious action on serious challenges. Those who want clean coal technology, more wind and solar, nuclear power, biomass and bio-fuels will have their opportunity through a new market that rewards those and other innovations in clean energy.” McCain was speaking at the Vestas Wind Technology plant in Portland, Oregon.

Earlier this year, Sen. McCain led a revolt of 24 Senate Republicans have asked the EPA to waive, or restructure, the Renewable Fuel Standard passed in December. In a statement, Sen. John McCain said that “This subsidized (ethanol) program, paid for by taxpayer dollars, has contributed to pain at the cash register, at the dining room table, and a devastating food crisis throughout the world.” The Senators said that waiving the ethanol mandate would encourage farmers to grow other crops, as opposed to growing corn for food markets.

John McCain’s environmental record and policies are profiled in an investors.com article. The article focuses on his conversion to environmentalism after the 2000 elections, and his sponsorship of cap-and-trade legislation in 2003, 2005 and 2007 with Senator Joe Lieberman. The current bill would limit emissions among commercial & industrial users to 2004 levels by 2012 and moved down steadily until 2050. McCain favors an auction of emission certificates in his cap-and-trade proposal.

McCain vs Obama comparison

A comparison of the Obama and McCain approach to renewable energy was published in the Wall Street Journal. Among highlights: McCain support for renewable energy investment, but record of limited support for mandates and incentives; McCain opposition to the Brazilian ethanol tariff; Obama’s $150 billion investment plan in alternative fuels; Obama support for a 25 percent mandate for alternative energy from electricity by 2025; McCain’s support of incentives for nuclear energy. Obama supports an 80 percent emissions reduction by 2050, while McCain targets 60 percent (based on 1990 levels).

The Miami Herald published a comparison of the climate change policies of the key remaining US Presidential candidates.

Emission caps: Obama, McCain

Higher fuel efficiency standards: Obama

Pro nuclear power: McCain

Mandates and inentives for ethanol: Obama

Hybrid car development: McCain, Obama

Ethanol tariff repeal: McCain

“Food Before Fuel” campaign launches as 25 groups join Grocery Manufacturers anti-biofuels jihad

“The Food Before Fuel” campaign led by the Grocery Manufacturers Association debuts today. “We are calling on Congress to step back and re-evaluate our biofuels policy, which is distorting the marketplace and harming the environment and consumers,” Cal Dooley, former Democratic congressman from California and GMA chief, said in a statement. The group said that they may buy advertising in addition to using public relations efforts to get their message out. The group says that expanded corn planting created a land-use crisis and a series of global food price surges.

Groups supporting the campaign
American Bakers Association, American Beverage Association, American Conservative Union, American Frozen Food Institute, American Meat Institute, Competitive Enterprise Institute, Earth Policy Institute, Environmental Working Group, Food For All, Grocery Manufacturers Association, International Dairy Foods Association, International Foodservice Distributors Association, MANA (A National Latina Organization), National Cattlemen’s Beef Association, National Chicken Council, National Council of Chain Restaurants, National Restaurant Association, National Retail Federation, National Turkey Federation, Pilgrim’s Pride Corporation, Popeye’s Chicken & Biscuits, Snack Food Association, The Hispanic Institute, Tortilla Industry Association, and Women Impacting Public Policy.

“This campaign is nothing more than a ‘red herring’, distracting the American public away from the true cause of food price increases,” said Brooke Coleman of the New Fuels Alliance. “It’s unfortunate that the Grocery Manufacturers Association and others have decided to perpetuate the myth that ethanol is to blame for higher food prices, while many of their members spike their retail food prices to profit from the crisis.”

“While biofuels do play a small role in rising food costs – about 3% according to USDA – the biggest contributors to escalating food prices are growing fuel costs, weather events like droughts, rampant speculation in the commodities market and increased demand for food products from developing nations like China and India. Even though the development of biofuels is in its infancy, we’re already seeing major benefits in our pocketbooks – biofuels are keeping gasoline prices down by 15-25%, according to Merrill Lynch – and our environment, and any effort to overturn the Renewable Fuel Standard will only make us more dependent on other countries for our energy.”

“In an ironic twist, a well-respected agricultural economist at Purdue University recently concluded that ethanol is not even the central driver for corn price increases,” added Coleman, pointing to a study showing that of the $4 per bushel increase in the price of corn, ethanol accounted for 25% of the increase while oil prices caused 75% of the increase. “GMA and its supporters are clearly not interested in having an honest debate about food prices.”

GMA Campaign background

Sen. Chuck Grassley (R-IA) posted documents from the Grocery Manufacturers Association anti-ethanol story on his website. The documents are the original request for proposal from the lobbying group, and the response by Glover Park. The Grocers hired Glover and Dutko Worldwide for $300,000 to create a public perception of a link between biofuels and rising food prices.

Documents obtained by and published in Roll Call identify that the Grocery Manufacturers Association has launched a massive, global PR campaign, pledging to assemble a “global center-left coalition” including hiring “trusted third-party experts” to link ethanol mandates to global hunger, food industry job losses and inflation.

“GMA has concluded that rising food prices … create a window to change perceptions about the benefits of bio-fuels and the mandate,” said the organization’s Request for Proposals sent to PR firms.

The firm eventually hired by the GMA, Glover Park, said that it would employ an “urgent and remedy-based messaging strategy” to convince lawmakers that food prices is a “Now” issue that is fast reaching crisis proportions for American consumers,” and said it would produce an “online, viral campaign” to link ethanol and food prices.

The GMA issued the RFP in March to, quoting from the RFP, “build a groundswell in support of freezing or reversing some provisions of the 2007 Energy Bill and for the elimination/reform of ethanol subsidies and import restrictions.” Subsequently the Governors of two states and 24 Republican Senators, including presumptive Republican presidential nominee Sen. John McCain, called for a freeze. The GMA is a backer of McCain’s campaign, and the two Senators who received the most financial support from the GMA’s political action committee in this election cycle are among the 24 who signed the call for a biofuels review.

The GMA hired Andy Wright, former chief of staff to Rep. Brad Sherman (D-Calif.), to oversee a grassroots program to discredit biofuels.

Barron’s says ethanol stocks undervalued

Barron’s said that ethanol stocks are undervalued and are set to rise. VeraSun Energy, Aventine Renewable Energy, and Pacific Ethanol, according to a Barron’s report, are undervalued by as much as 50 percent based on replacement cost, and are trading at a discount of up to 50 percent of book value. However the report says that Aventine and VeraSun are trading at 4 times pretax cash flow, or at least 19 times earnings.

Landmark Warner-Lieberman climate bill faces defeat in US Senate

In Washington, the Republican leadership has mustered sufficient votes to defeat the Warner-Lieberman climate bill, according to sources on both sides of the aisle. Following an extraordinary motion to read the 492-page bill, which took 8-1/2 hours, key Senate Democratic supporter Barbara Boxer of California said that the bill did not have the 60 votes needed to overcome further procedural roadblocks set by Republicans. Republicans says that the cost of the bill is too high, and President Bush has promised to veto the bill in its current form. The legislation requires electric plants and factories to reduce CO2 emissions by 71 percent on s schedule that commences in 2012. The bill would put a cap-and-trade carbon system in pace in the US for the first time.

The bill imposes emission caps on electric utility, transportation, and manufacturing industries. Emissions are capped at 5200 million metric tons of CO2 (and equivalents)until 2012. Between 2012 and 2020, emissions are reduced 2 percent per year. Between 2020 and 2050, emissions are reduced by 1.8 percent per year until the 70 percent reduction target is reached in 2050.

The bill includes incentives and transition assistance. Low- and middle-income families would receive $350 billion in assistance, from programs such as the Low Income Weatherization Assistance Program. The bill earmarks $500 billion through 2030 for investments in low-carbon technology.

Bio-Venta launches 100,000 tonne canola biodesel plant in Latvia

In Latvia, Bio-Venta commenced operation of a 100,000 tonne canola-based biodiesel plant in Ventspils. The $128 million projected was completed by Constructus over 22 months.

Biofuels Digest Index falls 0.87 to 110.84 on ethanol, ADM dips

Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, fell 0.87 points to 110.84 on a continued slide at ADM and ethanol weakness.  For the day, Archer Daniels Midland (ADM) fell 0.90 percent to close at $39.50, while VeraSun Energy (VSE) fell 0.72 percent to close at $6.94.  Among small caps, Earth Biofuels (EBF)  fell 41.18 percent to close at $0.03.  Overall, declines led advances 3 to 1 for the day.

Biofuels Digest Index drops 4.58 percent on bad reaction to ADM working capital equity raise

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, had a shock drop of 4.58 percent to 111.81 as investors reacted to a potential drop in earnings per share at ADM after a $1.75 equity offering, combined with overall weakness in ethanol stocks. For the day, Archer Daniels Midland (ADM) fell 4.98 percent to close at $39.86, while Pacific Ethanol (PEIX) fell 12.86 percent to close at $3.59.

Among small caps, Xethanol (XNL) fell 6.02 percent to close at $0.47. Overall, declines and advances were even for the day.

Pacific Ethanol capital raise clears path for completion of California corn ethanol plant, analyst says, but liquidity concerns remain

Raymond James analyst Pavel Molchanov released a report on Pacific Ethanol’s capital raising activities in the face of a liquidity challenges brought on by construction cost overruns and increasing costs for corn feedstock. Molchanov said that the company could be expected to use $5.75 million raised from management and insiders to alleviate working capital needs, while a $28.5 million private placement would likely be used with $83 million remaining in its construction loans to complete construction of its Stockton, CA corn ethanol plant.

Earlier this month, Pacific Ethanol reported that first quarter ethanol sales were up 63 percent to $161 million, year over year, and the company earned 6 cents per share compared to analyst expectations of a 9 cent loss. Ethanol sales were up 57 percent to 37.5 million gallons. The news sent shares of other ethanol companies up as much as 41 percent.

In Idaho, Pacific Ethanol recently commenced production at its 60 Mgy corn ethanol plant in Burley. The plant will use 21 million bushels of corn, and the company hopes to
supply the entire ethanol demand for Idaho from the plant, as well as
up to 500,000 tons of distillers grains for livestock feed.

Biofuels Digest Index drops 2.58 percent to 117.18 on poor reaction to $2 billion equity issue by ADM

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, slumped 2.58 percent Tuesday to close at 117.18 on  a drubbing of ADM shares following a financing announcement by the agri-giant.

For the day, Archer Daniels Midland (ADM) fell 2.83 percent to close at $41.95, while Pacific Ethanol (PEIX) took a 1.44 percent dip to fall to $4.12. Among small caps, Texcom (TEXC.PK) leaped 114.29 percent to close at $0.15. Overall, declines led advances 3 to 2 for the day.

Archer Daniels Midland Company announced yesterday that it plans to offer and sell, subject to market and other conditions, 35,000,000 equity units and to grant the underwriters an option to purchase 5,000,000 additional equity units to cover over-allotments. Each equity unit has a stated amount of $50, for a possible aggregate offering amount of $2 billion if the underwriters exercise their over-allotment option in full.

Biofuels Digest Index slips 0.36 on agribusiness drop, Pacific Ethanol plunge

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, fell 0.36 percent Friday to close at 120.28 on an agribusiness slip and an ethanol slide. For the day, Archer Daniels Midland (ADM) fell 0.25 percent to close at $43.17, while Pacific Ethanol (PEIX) took a 19.31 percent beating to fall to $4.18 following announcement of terms on a $35 million financing.

Among small caps, Nova Biosource Fuels (NBF) gained 2.56 percent to close at $1.20.  Overall, advances and declines were even for the day.

Next Page »

Making Algae Biodiesel at Home

FREE Subscription

The Biofuels Daily News Digest
The biofuels 4-minute "must read"

It's the world's most widely-read biofuels daily e-mail newsletter, providing news, data and insight every morning to subscribers at more than 2,000 companies around the globe.



“This is a great news source which I look forward to reading every day.” - Tina B.

“Biofuels Digest is a great way to keep up on the news. I appreciate the ease with which I can pinpoint research topics.” - Diane B.

Email:

• Recent Posts

  • FREE Subscription: The Daily Biofuels News Digest, the industry’s 4-minute “must-read” email
  • Lignol, Suncor Energy announce $80 million wood residue cellulosic ethanol project for Colorado
  • Aventine Renewable Energy delays opening of 113 Mgy corn ethanol plant in Nebraska

Copyright © 2008 Biofuels Digest · Log in