One unintended result to the use of foodstock as a source for the production of ethanol is the rising price of food. It’s the basic rule of supply and demand.
Those people who had been supporting ethanol production in the U.S. have been turned off recently because of the rise in gas prices. They were expecting gas prices to go down as more and more ethanol is used.
But that is not happening. Supporters of ethanol say that it is now too small a portion of the fuel market to have a substantial impact.
Meanwhile, critics are blaming the rise in food prices to the rise in gas prices.
Congress so far appears to be on the side of the advocates of ethanol. The latest farm bill will continue to underwrite the ethanol boom. The bill would fund $1 billion worth of research into alternative fuels over the next 10 years. It would lower slightly the federal tax break on ethanol by 6 cents, to 45 cents a gallon and will limit the import of ethanol from Brazil with a 54 cents a gallon tariff.
Our take? Algae for fuel. 'nuff said.