Sunday, May 4, 2008

The Rise of the Age of Ethanol

Imagine a world where gas costs half of today's outrageous prices. Imagine a world where landfills are shrinking rather than growing. Imagine a world 15 months from now where ethanol is the primary fuel source, not oil.

It's not as far-fetched as it might sound. I recently met Mike, a man who stands at the forefront of these amazing feats. He owns part of a company based out of Dallas that is in the midst of project to turn biodegradable trash into ethanol. Stop and think about this for a minute. Recycling increases, thus reducing space taken up and pollution created by landfills. The price of oil comes down due to a lower demand. Ethanol becomes the primary source of vehicle fuel. Less need to control oil leads to cheaper gasoline prices. Perhaps a bit far-reaching, but in theory this would reduce American military in the Middle East as well. On top of it, this is a permanent solution to disappearing fossil fuels.

The last year I went to look at new cars. I looked at a 2007 Dodge Ram. It had the capabilities to use both regular gasoline and 90-some odd-percent ethanol fuel. The salesman explained to me that this is the direction new vehicles are headed. (A side note: all military equipment still runs on diesel.) The market is there for ethanol. People want to go green. The environment needs it. Most importantly, the economy needs it.

The physical project Mike helps run will take place in Houston, where the land is available. Unfortunately, the company needs political blessing to make this happen. It has nothing to do with waste or pollution. It hinges on dealing with the contract of the trucking company that services Houston. Mass amounts of money are tied up in hauling trash to landfills. Mike's company will take a large portion of the trucking company's profits away.

It will take at least three months to get the clearance to begin work at the Houston site from offices of the city of Houston, Mike says. Then, they can be operational within 12 months. Here's hoping they can get clearance sooner rather than later. I'm not going to go into any further detail at this point on the politics of this situation. Not because it does not need to be addressed, but because of lack of knowledge at the moment. But this is a great business venture in my mind because it bring down the price of gas, it brings down the need for oil, it reduces pollution, it frees up land, and it can indirectly reduce violence in the Middle East.

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