Thats the ratio of ethanol to gasoline. Boone Pickens just said it on CNBC. Ethanol is way overpriced on futures market. Surely this stock will go down when people come to their senses and realize we need more refineries. Not more cornfields!
The amount of wasted landfill methane gas wasted or flared is truly amazing. Maybe a year ago I found a link that described a project in Great Britain to use all of their landfill gas to supply 3.5 million homes. The history of the landfill gas 'problem' is rather amusing when you have heard stories of people being blown off of tees on golf courses built over landfills. This link describes the history and tells of one Rhode Island land fill supplying 18,000 homes with natural gas, http://www.brownfieldgolf.com/more_re_landfills.htm . The amounts of potential energy sources that we currently waste is staggering.
The EROEI was 1.37 20 years ago. It has been at least 1.67 for some time now and the new Broin process using enzymes has improved that significantly. When we get serious about cellulose ethanol the EROEI will rapidly go to 4+ and then a blend greater than E10 will make sense.
The ERPEO figure of 1.67 never made much sense for ADM which used coal and not Natural Gas to heat corn starch. I am sure that the Texans that plan to build corn ethanol plants next to their feed lots using brewers grain to fatten cattle and convert their manure to Natural Gas to heat the corn starch are laughing at Boone Pickins.
I didn't say Boone Pickens said anything about overprice of Ethanol. I quoted him in reference to the ratio. It is just common sense that it will come down as supply comes on line. A major gasoline retailor in my area just said in a radio interview yesterday that ethanol was overpriced, He owns over 100 outlets. He deals with it everyday so I would guess he knows more than me about the business. I have no position in ADM, but if it spikes, I will short it.