Continuation of Platform Position #25, Sec. B

Keep in mind that various forms of Ethanol additives, especially sweet Ethanol can indeed end Big Oils' and politicians' energy stranglehold on the consumer. My administration will offer zero-interest government loans to entrepreneurs who want to start sweet Ethanol farming and production and the same for starting wind, solar and geothermal energy source development. How can entrepreneurs start up alternative energy businesses on that tired old congressional promise of extensive tax credits, when it's not tax credit they need? It takes cash loans to start the business before they can make profits to use tax credits. Remember, with Ethanol you can begin replacing oil in one year, and it's renewable!

So, let's take a look at some true facts and features of sweet Ethanol: A recent headline in Investors Business Daily stated: Brazil Achieves Independence from Foreign Oil. It went on to say: After 15 years of research and experimentation, Brazil transforms the biggest sugar-cane growing country in the world into a nation that replaces 85% of its gasoline usage with sugar-based Ethanol.

During the past five years, Brazil has allocated half of its enormous sugar-cane crop for Ethanol fuel production, thus reducing its need to import foreign oil and simultaneously reducing its negative balance of payments burden. Furthermore the reduction of sugar supply on world markets - from this change of crop allocation - raised the world price of sugar to a decent level, kept millions of farmers and farm workers at their jobs and kept tens of thousands of farmers from losing their farms. Recently most countries around the world have been sending large scientific delegations to Brazil to study their successful Ethanol programs, except one...you guessed it, the U.S.

A Uof C at Berkley study estimated that Ethanol (corn-based) could replace 20-30% of fuel usage in the U.S. with little effort in just a few years, but you can start the replacement in one year. Furthermore and most critically, the 15-year Brazilian study clearly demonstrated that sugar-based Ethanol would replace much more fossil fuel than corn-based. Some estimates go as high as a 40% fuel replacement using sugar instead of corn.

From a cost perspective, consider the following startling comparisons: It costs more than five billion dollars and five to ten years to build a new oil refinery; it costs one billion to construct an oil-drilling platform in the Gulf of Mexico and five to seven million a day to operate it. And it takes years to bring that oil to market, and...once that field is depleted, the oil is gone...you want more, build another platform, because crude oil is not renewable.

On the other hand it takes 12 months to complete construction of an Ethanol plant...costs vary depending on desired capacity...$50 to $150 million for up to 100 million gallons to market a year. And, sugar-based Ethanol is truly renewable. You grow the same beet and cane crops on the same land and use the same Ethanol processing plant, year after year. (Most sugar-cane species yield two or three crops a year perennially.) You spend billions all over again to find more oil...with Ethanol, you spend no more unless you want to increase your Ethanol production capacity and crop yield. The most prolific sugar-beet farmers are found in the colder Northern states. One of the leading growers of beets is Michigan...yet there are only two Ethanol plants in operation. Michigan can use a minimum of five plants over the next five years and probably more thereafter.

The State of Minnesota is a big sugar-beet grower and they appear to be far ahead of the pack, in that they have six operating plants and two more under construction. But, there is a state law that prohibits gas stations from selling gasoline mixed with anything but sugar-based Ethanol, not even corn-based. That's why our RenewE program will offer Ethanol-pump installation grants to gas stations throughout the U.S. The most prolific cane growing states are Florida, Louisiana, Texas, Hawaii and Puerto Rico. Would you believe that Florida and Texas have no Ethanol plants at all?

The smart play would be to build smaller capacity plants initially to cut down on overall construction costs, e.g.: to build a 100 mil.gal. per year plant, the average cost is between $1-$2/gal. depending on a number of variables. The average cost of building a smaller 35-50 gal.cap. plant is the same, however, the cost of expanding capacity of an existing plant is only .50/gal. So the initial capital outlay is much less costly and it allows you to build more plants in a shorter period of time in a greater number of states that need them yesterday.

In Michigan alone, new Ethanol plants are considered of huge importance to the state's agricultural economy...a recent new Ethanol plant will be keeping 600 farmers in business. Michigan's AG office reports that between 12,000 and 23,000 new jobs will be created each year in Michigan (that's only Michigan), as a result of more farmers and food processors selling products with added value (e.g.: Ethanol, pharmaceutical enzymes and animal feedstocks derived from sugar.) Please keep in mind that any independent Ethanol producer who grows his own cane and/or beets, will stay in business virtually forever, thanks to the renewable continuing supply from their own farms. Besides, land ownership never hurt anybody...it will serve you well forever.

(To be continued)