Articles by Ron Steenblik

Except that we still have to wait another 10 years

The German government on Wednesday cleared the way -- finally -- to phase out the mining of hard coal in Germany.

As explained by this Associated Press article in the International Herald Tribune, the heavily subsidized German hard coal industry still employs about 33,000 people in eight underground mines. The plan is to phase out hard-coal mining starting in 2009, and for miners to receive compensation if they are laid off prematurely.

Hard-coal mining "has no future" in Germany, declared Economy Minister Michael Glos. "A great, long era is coming to an end in a socially responsible way."

Yet another distortion to correct a distortion

Anybody who closely follows U.S. agricultural policy appreciates the journalism of Philip Brasher and his team at the Des Moines Register. One of Mr. Brasher's recent articles highlights a feature of the farm bill recently passed by the House of Representatives that probably few people have heard of: the "Healthy Oils Incentive Program."

According to the website of freshman Congressman Nick Lampson (D-Stafford, Texas) -- who recently underwent quadruple heart bypass surgery -- the Healthy Oils Incentive Program would create a "one-time incentive" to encourage development and commercialization of certain oilseeds and healthy oils to replace the use of trans fats in foods. Naturally, there is a connection here with biofuels.

A: The cropland area of several states

According to data released by the U.S. Department of Agriculture's National Agricultural Statistics Service (NASS), U.S. farmers planted 92.9 million acres of corn in 2007, exceeding last year's corn area by 19 percent and surpassing the USDA's earlier projection (in March) by 3 percent. To put that number into perspective, it is equal to the total arable (cropland) area of four of the nation's leading farm states: Iowa, Illinois, North Dakota and Oklahoma.

The Food and Agricultural Policy Research Institute (FAPRI) forecasts that some 2.18 billion bushels of that corn will be converted to ethanol this year. At an average expected yield of 149.1 bushels per acre, that translates into 14.6 million acres -- an area equal to the combined arable cropland of the entire northeastern United States (Delaware, Maryland, Pennsylvania, New Jersey, New York State, and New England).

The 6.9 billion gallons of ethanol thereby produced will displace, on an energy-equivalent basis (and not accounting for the energy consumed in producing the ethanol), roughly 3 percent of the nation's annual gasoline consumption.

I just thought some readers would find these numbers interesting.

Globalization of the fuel vs. fuel debate

Last Thursday, Canada's Prime Minister, Stephen Harper, announced substantial subsidies to boost Canada's production of biofuels. Under its "ecoENERGY for Biofuels" program, the government will provide up to C$ 1.5 billion (US$ 1.4 billion) in the form of incentives over nine years to producers of renewable alternatives to gasoline and diesel fuel.

"With leading-edge technology and abundant supplies of grains, oilseeds, and other feedstocks, Canada is uniquely positioned to become a global leader in the production of biofuels," said the prime minister.

Today, the BBC ran a story explaining that, in part thanks to the increasing diversion of Canadian durum wheat into biofuels, supplies of this very special grain are getting tight. The result: the price of pasta, one of Italy's staple foods, is forecast to go up by about 20 percent this autumn.