Just wanted to throw this into the discussion of ethanol, because it's from a trade journal, rather than the sources usually quoted here (people like Kunstler with no science background who thought y2k would be the end of civilization, etc etc). Of course, trade journals have their own biases - see the last sentence, quoted below.
This is from the Jan 1 issue of C&EN "Chemical and Engineering News".
http://pubs.acs.org/email/cen/html/010207085554.htmlJanuary 01, 2007
Volume 85, Number 01
pp. 19-21
Ethanol—Is It Worth It?
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Not much of the U.S. corn crop directly feeds humans, however. About half goes to U.S. animal feed; 20% is exported, mostly to feed foreign animals; 20% makes ethanol; and 10% is used for industrial and some food-related products, around half of which is for high-fructose corn sweeteners. Indeed, corn prices are rising due to ethanol demand, the Department of Agriculture says, and cattle, hogs, poultry, meat, milk, and cheese prices will likely follow suit.
These prices will have little effect on the developing world, and it is unclear how the corn market and farming practices will adjust to these price changes in the U.S. For instance, ethanol production from corn also generates "distillers grains," a valuable high-protein by-product used for cattle feed. USDA economists and farmers believe the production of more ethanol could provide enough distillers grains for cattle feed to offset the loss of corn for feed.
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Bruce E. Dale, a chemical engineering professor at Michigan State University, backs the USDA numbers and has applied Pimentel's methodology to making gasoline. He found gasoline production has a 45% net energy loss, worse even than Pimentel's charges for ethanol. He also looked at generating electricity from coal and found a net energy loss of a whopping 240%.
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Pimentel tells C&EN that he recently applied his model to gasoline production and found it takes about 1.2 gal of oil to produce a gallon of gasoline. He also acknowledges that electricity requires about three times more energy to make than it provides.
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What's clear is that corn-based feedstock is likely to be the start of a biofuels market, not its end. Innovation and science in this new marketplace have the power to transform biomass-based transportation fuels in the same way they transformed the petrochemical industry in the past century. The future may be cloudy, but it is exciting, and for chemists, it doesn't get much better than that.