Page added on February 12, 2007
Disparate, powerful factions are unified that the world needs to find an alternative to fossil fuels. The World Economic Forum and President George W. Bush’s State of the Union address both sounded the alarm on America’s dependence on foreign sources of energy. Hopes are high for the United States to find ways to become less dependent on gasoline
The tides have finally begun to shift, and the world is now embracing the challenge of reducing greenhouse gases. Companies that participate in the process intelligently can reap significant economic benefits.
A key emerging opportunity is biofuels – fossil-fuel substitutes developed from renewable green plants. The path to a greener world includes government subsidies and grants as well as private enterprise.
But when governmental monies are in play, some programs get funded that otherwise would not. Ethanol is a great example of a biofuel “solution” that may be creating more harm than good. Ethanol, produced naturally from fermentation by yeasts and other microorganisms, is subsidized heavily by the federal government. Currently in the United States, corn grain is the main feedstock for ethanol production. American taxpayers are billed heavily to subsidize the country’s privately owned ethanol plants.
What problems exist when a large amount of ethanol is produced from corn? Corn is a primary source of livestock feed, and feedlot owners have seen their costs rise dramatically because of ethanol production. These costs will be passed on to consumers.
Additionally, these crops are not sustainable. When crops are harvested, the embedded nutrients are removed and not replaced through the natural process of recycling dead plants back into the land to provide nutrients for the next generation. Ethanol production uses large amounts of water, which could exacerbate the water shortage worldwide, which is already occurring in some arid countries. Another factor: Farm machinery and vehicles burn fossil fuels to harvest and transport the crops. This process contributes considerable amounts of carbon dioxide, a greenhouse gas, to the atmosphere.
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