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3000GTZ:

Thanks for the 'skeptics' perspective on Ethanol!

But the issues you raise seem to be very surmountable given what is at stake. (I'm pretty geeked on alternate energy because we're just one inevitable war away from a major disruption in black gold.)

I suggest several reasons why I believe Ethanol is going to move 'sooner' rather than later...
1) Sure, ethanol has less punch than petrol. But, there will be an ever-increasing public demand for 'green', socially-responsible transportation. It won't take much to move us to smaller vehicles. If you reduce the weight of the vehicle, you can offset the MPG hit taken by ethanol. Adding larger fuel tanks will provide the same operating range. It's still a lot more practical than large batteries.
2) It is highly likely that ethanol can be produced significately lower cost than gasoline. Ethanol blends can also start to reduce price of gasoline.
3) Cellulose ethanol is going to happen. There issue seems only to be ramp-up of production including harvesting necessary bio-mass. But, the basic raw material is already in sufficient supply to feed a major cellulose ethanol stream. (Prez Bush mentioned this in his SOTU address...) All we need to do is tweak the enzymes and movitate produces to build plants close to the cellulose production sites (forestry, sugar cane fields etc.)

What the heck, if Ethanol gets 10% of our gas fix, we all can make a tremendous amount of dough. For the LTBH investor, this is the sweet spot.

For those that think I'm foolish, I suggest you check out the Feb 6 issue of Fortune magazine -- a special report entitled the 'Future of fuel' "How to Beat the High Cost of Gasoline * Forever". This article was my basic primer on ethanol and how I found out about PEIX.

Foolishly hooked on PEIX -- for the long haul, along with ADM etc.

-Don
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