What the farm lobby isn’t telling you
(from a Tobin Smith email for his newsletter. Ignore the pump, I'm just posting for his energy take!)
All the talk in the mainstream media is about ethanol made from corn.
Agribusiness in this country is huge. So I’m sure it comes as no surprise to you that they know how to run cleverly devised PR games to boost their products.
Corn works very well as a base to create ethanol. But there’s one big problem.
You plant the fields with huge machinery that chugs fossil fuel, then you feed it with oil-based fertilizer, and douse it with oil-based insecticides.
You get the picture.
It costs $1.25 to distill a gallon of ethanol from corn. So yes, at $2.75 retail, they still make a decent profit. But there’s a better way to make ethanol that the farm lobby would just as soon you know nothing about.
It’s called “biomass ethanol” – you make it from weeds, wood chips, refuse... any biological content that can be turned into sugar, which then becomes ethanol.
A paper plant can turn its refuse into fuel. A city can turn grass clipping and leaves into energy. This company has even made ethanol from stale butterscotch candy.
If you’ve got waste – and America is overrun with it – now you’ve got fuel, thanks to this firm’s proprietary technology.
This is not some pipe dream. They have biomass-ethanol plants up and running right now – adding more all the time.
And this stuff is cheap, cheap, cheap to make. Just 25 cents a gallon versus the $1.25 for corn-based ethanol. Plus a key factor in the business strategy is to locate plants – which are quite unobtrusive – near large population centers. So transportation costs are much lower, too.
I just love the model.
If we were gonna get all the ethanol we’re really going to need from corn, we’d have to plant the whole U.S. and half of Mexico.
But garbage and waste? We have virtually an unlimited supply.
And that’s why I love this stock. A big Wall Street firm just put 25 million bucks into these guys. If you’re a serious growth investor, you should own a few shares, too.
Join me at ChangeWave Investing by clicking here now.
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