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Presentation at GIC and University of Memphis Fogelman College of Business Food and Inflation Conference

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WORLD POPULATION

7 Billion people

66% malnourished

Number 1 cause of death

U.S. FOOD CONSUMPTION

2,200 pounds/person/year

Food = 99.7% land

0.3 % Ocean

Food versus Biofuels

Director General of UN

Director General of FAO

Biofuels increasing Global Starvation

Solar Energy Captured by Plants

Green Plants = 0.1%

Photovoltaics = 15%

Fossil vs. Biomass

0

10

20

30

40

50

60

70

80

90

100

East

West

North

Total U.S. Biomass

Crops = 900 million tons

Grasses + Forest = 900 million tons

Total = 18,000 million tons

Food in SUV

22 lbs. corn/gal. ethanol

660 lbs. corn = SUV

1 fill up

Fossil Energy in Ethanol

1.5 gal. fossil energy =

1.0 gal. of ethanol

Importing oil and gas

Corn Production Inputs

Energy = 14 Inputs

Nitrogen and Mechanization

Energy Inputs in Corn Production

Energy inputs to produce corn

100 gallons/acre

Omissions Help Ethanol Return

• Farm labor omitted

• Farm machinery omitted

• Processing machinery omitted

• Hybrid corn omitted

• Irrigation omitted

• Environmental Impacts omitted

Environmental Impacts

• Soil Erosion

• Nitrogen

• Insecticides

• Herbicides

• 1,700 gals. Water per 1 gal. ethanol

• 1.5 gal. fossil energy per 1 gal. ethanol

• Global climate change

Water and Food

700,000 gals/Corn Acre

1,000 lbs of Water =

1 lb of Corn

Water Needs

Corn = 700,000 gals/acre/3 months

Rice = 14,000,000 gals/acre/3 months

Ethanol Production

DOE = 12 billion gallons

Total oil = 1.5%

40% of all corn

Ethanol Energy Costs

Total Energy Inputs = 30,000 kcal/gal

Ethanol Energy Output

19,000 kcal/gal

Processing Ethanol

9 additional energy inputs

For processing

Sewage Effluent

12 gallons of sewage effluent per

ethanol gallon produced

Subsidies for Ethanol

No Subsidies = $12 billion/yr

Subsidies 60 times greater than gas

Costs to U.S. Consumer

Congressional Budget Office

Consumer = $9 billion groceries

World Food Prices Highest Ever

Increased Food Prices

Corn and Wheat Prices in India

Increased 75% last year

World Bank Reports

“Corn Ethanol Clearly Flawed”

Dan Kammen. Time, June 7th

Science 2006 (Positive)

Dan = 1.25 gal. net

100% U.S. Corn

Total oil = 4%

By-Product Credits

USDA Byproducts = 67%

Accurate Value = 9%

Ethanol from Cellulose

50 lbs cellulose/gal ethanol

22 lbs corn/gal ethanol

Grasses into Ethanol

100 million cattle

Insects eat 3-fold that of cattle

USDA = Serious overgrazing

QuickTime™ and a decompressor

are needed to see this picture.

Livestock Numbers

9 billion chickens

100 million cattle

60 million hogs

Grain Fed Livestock

50% Grain Fed Livestock

400 million Humans

Cellulosic Ethanol

54 lbs. switchgrass /gal. ethanol

22 lbs. corn vs. 54 lbs. switchgrass

2 gal fossil = 1 gal Cell-ethanol

SWITCHGRASS FUEL

10 t/ha/yr yield

1 gal. Ethanol = 2 gal. oil

LIGNIN FUEL

Acid Dissolves Lignin

Frees starches and sugars

SUNFLOWER OIL

Production = 1,500 lbs/Acre

Sunflower = 26% oil

Biodiesel = 2 gal. oil = 1 gal. oil

Soybean Production

Production = 3,000 lbs/Acre

Soybean oil = 18%

Biodiesel = 1.6 gal. = 1 gal. oil

Jatropha

30 lbs. jatropha = 1 gal. oil

Worker 8 hrs. 30 lbs. seeds

$2.68 per day vs $13.00

Oil in the Future

Oil reserves depleted 2040

DOE

Climate Change

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