Biodiesel plants

[Michigan CG]

Ethanol!

You are going to get kicked out of Iowa with that post!

 

[Michigan CG]

This is kind of off topic...but can someone smarter than me explain why when gas was $4.00/gallon last year diesel was $5.25/gallon and this year gas is $2.80/gallon and diesel is $2.55/gallon.

I am seriously confused...shouldn't diesel be at about $4.00/gallon now?

 

[PropertyEconomics]

I think many will find that these plants will be shuttered ... no longer in operation. It has been shown that these plants work best when sugar is converted to biofuel (sugar cane, sugar beets, sugar grass) .... and foreign countries can produce and ship it to the US cheaper than we can produce domestically .... I would guess there will be a few failed attempts at conversion but in the long run .... they will be closed

 

[PropertyEconomics]

This is kind of off topic...but can someone smarter than me explain why when gas was $4.00/gallon last year diesel was $5.25/gallon and this year gas is $2.80/gallon and diesel is $2.55/gallon.

I am seriously confused...shouldn't diesel be at about $4.00/gallon now?

Supply and demand my friend .. research how many trucking companies went out of business .... you will get a hint.

 

[JT1974]

This is kind of off topic...but can someone smarter than me explain why when gas was $4.00/gallon last year diesel was $5.25/gallon and this year gas is $2.80/gallon and diesel is $2.55/gallon.

I am seriously confused...shouldn't diesel be at about $4.00/gallon now?

There is less demad for diesel now since the recession has hit in full force and fewer trucks are on the road transporting cheap Chinese junk from the ports to Wally World. At least that's what the "experts" say.

 

[Vernon Martin]

AP reports that at least one third of U.S. biodiesel plants have already closed. This is due to higher agricultural prices, lower diesel prices, overcapacity and the retaliatory tariff that the European Union has placed on U.S. biodiesel.

 

[Farmland]

This whole bio-fuel thing boils down to one thing. There is an old Mid-West farm saying that is "Don't eat your seed corn". What are the people going to eat? Going to put ethanol on your morning eggs and pancakes?

Actually, it boils down to public perception. Americans will continue to eat the cheapest, safest and more efficient supply of food in the world. There is plenty of corn and soybeans to go around. Bio-fuels have been around for years and no one said a word until food prices increased. An increase due to higher energy prices not a lack of supply.

There is an old Middle East saying "thanks for your money, we still hate you."

 

[Howard]

Vernon:

I''m currently working on a midwest biodiesel plant myself. Have a line on 3 sales, several listings, etc. If you want to share data, send me an email.

XX(howard@modirt.com)XX

Biodiesel and Ethanol are both biofuels, but that's where the similarity ends. Both type plants are special purpose, with few, if any alternative uses and are not interchangeable. Completely different technologies.

In worst case scenarios, biodiesel plants are gutted for the special equipment, which may be sent to overseas buyers. Heard from an auctioneer on the east coast of $30 Million plant sold for salvage of $800,000.

But I don't think that's going to be the norm. They have had a rough 18 months, no doubt about it, and the reputation they now have is not good. On the other hand, if the cost of the feedstock drops much at all, they have the potential to make money in a hurry. Current pump price of diesel drives this and is climbing daily.

Howard