12.12.2007

Ethanol, Bio Diesel Mutual Funds and Stocks : Bio Fuels



Consider every modern and historical military conflict. Most are about resources. These companies are involved in the production of biofuels, ethanol and biodiesel, from biomass. Energy production here at home.
My investing jury is still out on the viability of ethanol production from corn due to a number of factors such as creating huge dead zones in water bodies from fertilizer runoff. Research shows that prairie grasses(cellulosic ethanol) grown using only moderate amounts of fertilizer on marginal land can produce 300 gals. per acre vs. 350 for corn. Cellulosic ethanol is a Greener process.
As the price of petroleum has risen 6 fold since 2000, investment capital has been flowing into biofuels research driving innovation. New technologies mean increased efficiency in production and cleaner fuels.
Growing seed crops such as soybeans typically yields 100 gallons of biodiesel per acre under cultivation. A very promising technology is the production of oil from algae with yields of 10,000 gallons per acre under cultivation. Yes, 10,000! Also promising and in growing use are anaerobic digesters, machines that capture methane from on-site wates to produce energy.

Stock symbols for these biofuels companies:

ADM,ANDE,AVR,GPRE,IPSU,MGPI,PEIX,STKL,VRNM,VSE

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