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Fuel is still nearly five times as expensive as traditional fuel

Source: Defense News





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RE: simple math people
By lightfoot on 12/7/2011 11:26:02 PM , Rating: 2
The difference that you seem to be missing is that Intel would never dream of trying to sell five processors for a billion dollars a piece. In fact they wouldn't even build the new chip fab if they didn't have a business model in place that would allow them to build a quality product at a reasonable price.

Only an eco-nazi would ever think that $25 (much less $400) was a reasonable price to pay for a single gallon of fuel. If volume is required to get the biofuel manufacturing plant to the point at which they can operate at a profit then they should run the manufacturing plant at that volume and charge a fair market price for their product. Over time they would recoup their capital investment.

The problem is that this biofuel plant can't. There is no volume sufficient to get the cost of manufacturing the fuel down to a competitive level, and federal tax dollars should not be paying for a manufacturing process that simply is not ready for prime time. This money should be focused on research to improve the process. Not paying exorbidant sums to buy a product that can not currently be produced efficiently.

Biofuels at these prices simply serve no purpose and should not be mass produced. Get the price down, and THEN mass produce it, not the other way 'round.

If there simply wasn't any other alternative then you might have a point, the problem is that we have numerous alternatives that are far cheaper and readily available today.


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