Wouldn't One of Those Look Good in Clarendon or Orangeburg...
I read the editorial today in the State, and it was nice for them to point out the need for Ethanol plants in SC. I don't agree that Lexington County is the place to do it - it is a suburban county thta is undergoing a lot of expansion, and residents quality of life should be primary. My answer? Put it in my district! While I wouldn't say that Ethanol is the answer, it could be a major part of the solution of weaning ourselves from foreign oil. That is, as long as our business and political leaders don't screw it up - and so far, they are. Here are my tips. My friends from Gov. Sanford's staff, once again use it with my blessing. That reminds me, where is my patronage gig? I got Mark a lot of votes, man...........
Tip No. 1: Build Plants in South Carolina.
I was driving by the only gas station in Florence that sells Ethanol, and I saw a funny thing. It was about 15 cents a gallon HIGHER than gas. Part of the attraction of Ethanol was that it would cost about $1.70 a gallon, and the costs would drop as production went up. We call this Economies of Scale. Big problem, though... The economic price curve has changed due to two things. First, the automakers are making plenty of E85 cars and trucks, so there is a larger demand for the product, but, no one is making more of it - Demand Up, Supply steady = higher price. Another problem is that the only way to transport Ethanol is to ship it by tanker truck, which uses...... OOPS!! GAS! And they are driving all the way from Tennessee and all points West. Closer plants would lower costs, raise inventory and lower prices.
Tip No. 2: Build Plants Where the Corn Is - The 6th District.
Why are they trying to put a plant up in Lexington, when Orangeburg and Clarendon Counties are the top two producers in the State. Guess what area is right in the middle of it? Lake Marion, where all the locals have no opportunities, according to The Whipmaster. So, instead of $150 million to build a road with no other real plan for development, put up a plant or two on the I-95 corridor, and create some jobs for people who need it. Want a site or two? Highway 521 in Alcolu already has the rail lines, interstate and Natural Gas Lines needed. Voila!! The other one could go in the I-26/301/I-95 Triangle.
Tip No. 3: Create The Incentive to Come Here.
In this early period of Ethanol expansion, there are plenty of locations for companies to choose from. The state that makes it easier to build and do business will get the money, and the tax dollars it creates. The plants make money from Day One, so they just need help for startup costs. Help them out a little, and let's get the ball rolling. It's time to end the rhetorical war on oil dependence and make it happen.
Tip No. 4: Create the Market for Them to Build in SC.
E-85, E-85,E-85.... Enough of that for now. Instead of relying on too few cars that use mass amounts of Ethanol, have a plan that lets ALL cars use it. The answer? Increase the amount of Ethanol in regular gas. Guess how much you can use in regular gas? Up to 10% ! That would put a good dent in our oil consumption, and a big dent in some Sheik's wallet. I challenge a State Representative to draft a bill to require SC to use up to 10% Ethanol in it's gas, depending on the amount produced in the State. There you go - you just created an untapped market for a producer to make all they can. Based on current usage numbers, that would be 260 million gallons a year, which is full capacity for 5 plants, and would help farmers by making a market for double the current corn production. Grown in SC, Produced in SC, Sold in SC, and Used in SC.
Sounds easy enough... Those are my tips that I spent 2 years working on to make a plan. To our politicians, here is my challenge/threat.......... Use my plan, or Feel My Wrath !! Ask around DC and Columbia - it's better to be my buddy than my target. Get to work, fellas!
5 comments:
Mikey, it would make too much sense to harvest the biomass closer to the plant, but... that's economics and economics is rocket science and rocket science is over our heads.
Also there are too many moonshiners in Lexington that understand how to distill ethanol and they could use the peaches, which contain more sugar, to make alcohol for fuel and to drink...
Smart man about, "put it in your county", as I could not agree more. We really have fropped the ball on any economic development in those areas of the state. We need to begin somewhere and I think your county would be much better than any other. I hate to see wasted opportunities.
Actually, I live in Florence County, but unlike some others, I try to fit the round peg in the round hole - not where my cronies would benefit from it. That is leadership.
I may be in San Diego Del Mar tonight but last week I was in Sioux Falls South Dakota at a Ethanol plant. I would love to see one built in any area you mentioned and also Williamsburg. I had a meeting this morning with a large company that feeds the world or their motto does. They are planning on building some in California. I understand none are out here and I need to check on that to be certain. I do know that here in the states we produce from 1.3 to 1.7 gallons of fuel for each gallon used to make it and in Brazil they produce over 10 gallons to one. They use sugarcane and that is why. Ethanol is not a cure all by no means. I also visited a solar field yesterday in the Mojave Desert near Edwards AFB also near Boron home of the Twenty Mule Team. U S Borax has a cogeneration plant for their power. Monday I was at a wind turbine farm in the desert that Enron built when I was working for them. What I am saying is we need all types of energy sources for power including coal, nuclear and petro. What really we need is for everyone to cut back just a few per cent of what they use and you would see such a big difference in price and also then we could deal better with foreign goverments.
Moye, I couldn't say it better myself. Thanks for lending your expertise to the conversation.
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