brooklyn137
4 weeks ago
Tthere is a legitimate question as to where the money is going to come from, but it looks like we have no information on that. However, we do have some information on the price plus RIN of cellulosic ethanol and aviation fuel. The average selling price for cellulosic ethanol is 2.65 plus a 3.00 RIN for a total of 5.65.
For sustainable aviation fuel it is it 6.31 per gallon and the latest RIN price I saw was 3.02 as of 2023. That yields a total of 9.33.
So, a 3 million gallon plant would produce revenue of 16,950,000 and aviation fuel 27,990,000.
If they get to the 100 million of each they mentioned in the PR, it would be 565,000,000 and 933,000,000.
That would be about a billion and a half revenue from one plant. Hopefully, that would interest someone.
brooklyn137
4 months ago
Thanks, smokey1. I was surprised to hear about this so I checked. You are correct. Two cautions, however. This was in the context of the Iowa caucuses, and Iowans are in favor of ethanol for obvious reasons. Like every other politician from Bill Bradley to everyone, DeSantis said he was in favor of ethanol when campaigning in Iowa after having voted against ethanol in Congress. When in Iowa everyone is for ethanol. https://www.politico.com/news/2023/07/07/trump-desantis-ethanol-00105239
Second, Trump is a bit of a will of the wisp. Just because he supported it then doesn't mean he will support it now.
What may be more important for us is that ethanol primarily benefits rural (red) states, which are part of Trump's and the Republican's base. That may give him enough incentive and enough Republican pressure to keep him in line for us.
Also, Elon Musk's Tesla gets benefits from the Inflation Reduction Act for his electric cars. Unlikely Trump will try to unwind them.