Sustainable Affairs: Sustainable Development

When Americans fire up their grills for late summer barbecues over the next few weeks, a cloud will be hanging over them in the form of higher prices for steak, chicken and ribs.

The reason can be found in the rapid rise in the cost of corn, which is used not only as food for animals that provide meat, but also as an important basic ingredient used in the production of ethanol in the US.

President George W. Bush unleashed the new popularity of ethanol when he set a goal to lower US dependence on foreign oil. The price of corn has shot up to nearly double 2005 levels in response to the increased demand.

It's no wonder that ethanol refineries are springing up like mushrooms, particularly in mid-western US corn belt states. As of May there were 120 corn refineries countrywide and 75 more were under construction.

The White House's fuel dreams are ambitious. In his State of the Union address in January, Bush set a goal of reducing petrol consumption in the car-loving country by 20 per cent in the next 10 years, largely by turning to ethanol and other alternative fuels.

Ethanol is already mixed in with gasoline, but it accounted for only around 3.5 percent of US fuel consumption last year. Reaching the goal of 15 per cent would require 133 billion litres.

Last year, one-fifth of US corn production was used for ethanol. That compares with 12 per cent two years earlier. Wheat and soybeans also cost more because land used to grow those crops is being turned over to grow corn.

'Anybody that knows anything about the marketing of the corn market knows that when you raise the price of corn you are going to create problems in all of the markets that use corn,' said Ronald Cotterill, director of the Food Marketing Policy Centre at the University of Connecticut, in the Washington Post.

Corn is used not only as feed for chickens, hogs and cattle, it is also used to make high-fructose corn syrup found in products such as cookies and soft drinks. US chocolate maker Hershey has lowered earnings projections because of higher milk costs, and corn flakes producer Kellogg's has raised the price of cereal.

The phenomenon of rising food prices is not limited to the US. Last year food prices rose worldwide about 10 per cent, largely due to more expensive corn, wheat and soybean oil, the International Monetary Fund said in a report early this year. A poor harvest and demand for biofuels in the US are the chief reasons.

Increased demand for biofuels is expected to continue pushing prices for corn and soybean oil higher, the IMF said in its prognosis.

In Mexico the result of higher prices for corn has been dramatic: corn tortillas, a staple of the Mexican diet for 50 million low-income people, suddenly cost double. The government has been forced to intervene with price controls.

Now there is evidence that ethanol made from corn, as it is in the US, is neither cheaper nor cleaner, the magazine Economist reported. The biofuel provides only about 1.5 units of energy for every one unit needed to produce it.

State subsidies lie somewhere between 5.5 billion and 7.3 billion dollars a year, according to the International Institute for Sustainable Development.

Ethanol made from sugar cane, by contrast, produces far more energy than is needed to grow it - an ouput-input ration of about 8-1 - the Economist said. Brazil is the main producer, but Washington has placed duty on the import of sugar cane-based ethanol.

'The US should trash its silly policy. If it stopped taxing good ethanol and subsidizing bad ethanol, the former would flourish, the latter would wither, the world would be greener and the US taxpayer would be richer,' the magazine recommended.

When Americans fire up their grills for late summer barbecues over the next few weeks, a cloud will be hanging over them in the form of higher prices for steak, chicken and ribs. The reason can be found in the rapid rise in the cost of corn, which is used not only as food for animals that provide meat, but also as an important basic ingredient used in the production of ethanol in the US. President George W. Bush unleashed the new popularity of ethanol when he set a goal to lower US dependence on foreign oil. The price of corn has shot up to nearly double 2005 levels in response to the increased demand. It's no wonder that ethanol refineries are springing up like mushrooms, particularly in mid-western US corn belt states. As of May there were 120 corn refineries countrywide and 75 more were under construction. The White House's fuel dreams are ambitious. In his State of the Union address in January, Bush set a goal of reducing petrol consumption in the car-loving country by 20 per cent in the next 10 years, largely by turning to ethanol and other alternative fuels. Ethanol is already mixed in with gasoline, but it accounted for only around 3.5 percent of US fuel consumption last year. Reaching the goal of 15 per cent would require 133 billion litres. Last year, one-fifth of US corn production was used for ethanol. That compares with 12 per cent two years earlier. Wheat and soybeans also cost more because land used to grow those crops is being turned over to grow corn. 'Anybody that knows anything about the marketing of the corn market knows that when you raise the price of corn you are going to create problems in all of the markets that use corn,' said Ronald Cotterill, director of the Food Marketing Policy Centre at the University of Connecticut, in the Washington Post. Corn is used not only as feed for chickens, hogs and cattle, it is also used to make high-fructose corn syrup found in products such as cookies and soft drinks. US chocolate maker Hershey has lowered earnings projections because of higher milk costs, and corn flakes producer Kellogg's has raised the price of cereal. The phenomenon of rising food prices is not limited to the US. Last year food prices rose worldwide about 10 per cent, largely due to more expensive corn, wheat and soybean oil, the International Monetary Fund said in a report early this year. A poor harvest and demand for biofuels in the US are the chief reasons. Increased demand for biofuels is expected to continue pushing prices for corn and soybean oil higher, the IMF said in its prognosis. In Mexico the result of higher prices for corn has been dramatic: corn tortillas, a staple of the Mexican diet for 50 million low-income people, suddenly cost double. The government has been forced to intervene with price controls. Now there is evidence that ethanol made from corn, as it is in the US, is neither cheaper nor cleaner, the magazine Economist reported. The biofuel provides only about 1.5 units of energy for every one unit needed to produce it. State subsidies lie somewhere between 5.5 billion and 7.3 billion dollars a year, according to the International Institute for Sustainable Development. Ethanol made from sugar cane, by contrast, produces far more energy than is needed to grow it - an ouput-input ration of about 8-1 - the Economist said. Brazil is the main producer, but Washington has placed duty on the import of sugar cane-based ethanol. 'The US should trash its silly policy. If it stopped taxing good ethanol and subsidizing bad ethanol, the former would flourish, the latter would wither, the world would be greener and the US taxpayer would be richer,' the magazine recommended.

Via: Monster & Critics News
Bush

Found this post useful? Consider subscribing to
G3nergy Blog Feed/RSS.

As the concept of Sustainable Development (SD) continues to gain momentum throughout the Middle East, an increasing majority of property developers are ‘going green’ as they comprehend the environmental, social and economic benefits associated with the initiative.

Energy City Qatar, the Gulf’s first hydrocarbon industry business cluster, is living up to its ‘inspired by nature’ axiom by incorporating a myriad of ‘green building’ practices into its operations designed to benefit both developers and residents.

Broadly defined as any structure that is designed, constructed, renovated or operated in such a manner as to minimise its impact on the environment, protect the health of its occupants and utilize resources efficiently, ‘green building’ is the new buzzword in popular architecture, supported by inexhaustible data, results and statistics promoting its benefits.

Energy Management Services (EMS) is the leading energy saving company in the Middle East and provides a portfolio of comprehensive solutions that enable premises to optimise their energy performance and achieve savings without compromising their operations or services.

Through an Energy Efficient Architecture (EEA) analysis, the company delivers a systematic evaluation directed at analysing the function of systems, processes and building equipment for the purpose of achieving required functions at the lowest cost.

Energy City Qatar is promoting ‘green building’ practices.
Drawing on 15 years of regional experience in the industrial, commercial and residential sectors, EMS will offer tailor-made ‘green’ solutions for the Energy City Qatar development to ensure LEED certification and maximum benefits for the project predicted to become one of the Middle East’s most recognised business clusters.

“The fact that an energy business centre is going ‘green’ is an unmistakable indication to the world that natural resources must be conserved, especially in the Middle East where fresh water is scarce,” said Khaled Bushnaq, managing director, EMS.

“By incorporating effective ‘green’ solutions, Energy City Qatar is setting a great example for other Middle Eastern developers to construct sustainable communities that support conservation of energy and water resources.

“The EMS solutions are guaranteed to increase profitability, increase operational productivity, increase equipment efficiency, increase the life span of the equipment and additionally enhance company image.

“With these assurances, the question is no longer why build ‘green’; but rather, why wouldn’t you?” Bushnaq added.

EMS will promote energy saving opportunities within the Energy City Qatar project through procedures including analysing functions, reviewing design and techniques, optimising system design, introducing energy control systems, analysing energy bills, managing utilities, optimising energy saving equipment and recommending alternative energy sources.

By incorporating these ‘green’ strategies, both tenants and developers will gain a myriad of environmental, social and economic benefits.

For instance, EMS solutions are designed to improve air and water quality, reduce waste streams, conserve natural resources and promote energy efficiency.

By measuring and verifying energy system performance and ensuring a rigid compliance with regulations, Energy City Qatar will maximise its environmental performance while minimising its ecological footprint.

By doing so, tenants will achieve many social benefits such as enhanced comfort and health, heightened aesthetic qualities and an improved overall quality of life.

By minimizing the strain on the local infrastructure, EMS solutions promote integration of state-of-the-art technologies that contribute to improved stakeholder interest and increase the project’s reputation and equity as an environmentally desirable location.

Energy City Qatar’s CEO, Hesham Al Emadi, states:

“The most attractive reasons for many developers to integrate ‘green’ solutions into their projects, however, are the considerable economic incentives.

“EMS solutions will ensure Energy City Qatar will benefit from reduced operational costs, reduced capital and installation costs, reduced maintenance and labour costs in addition to reduced water costs”

Al Emadi added: “Furthermore, by improving the operational performance of energy systems, EMS solutions contribute to reduced running costs and energy consumption, potentially saving thousands on utility bills for tenants of Energy City Qatar.

“The built environment has a vast impact on the environment, human health, and the economy and achieving these superior solutions is both attainable and measurable as on average, EMS projects achieve a twenty to forty per cent reduction in electrical bills and a payback period of around two years.

“By implementing these responsible environmental standards, Energy City Qatar lives up to its reputation as a magnet for international industry leaders in oil and gas production and should be commended,” Bushnaq said.

Energy City Qatar (ECQ) is a fully integrated business cluster that will be the Gulf’s first oil and gas industry hub.

ECQ will be a single point of access to the Middle East and global Oil & Gas players in the hydrocarbon value chain.

ECQ is a $2.6 billion project

Low-rise office & residential

The world’s first fully connected business cluster

World class offices for 20,00 people and luxury residences for 10,000 people

Envisioned by Gulf Energy, ECQ aims to attract the industry leaders in O&G production, IOCs, NOCs, support services, infrastructure and downstream activities, shipping and trading, market and resource data, intellectual property and energy trading.

ECQ forms part of the major new city development, Lusail, which in addition to major business and entertainment districts, will be home to up to 200,000 residents.

Qatar is the most progressive, business friendly and the fastest growing economy in the Middle East. Home to the world’s third largest natural gas reserves, Qatar has a stable and maturing political environment, a free press, and internationally recognised regulatory environment.

ECQ’s lead financial advisor is Gulf Finance House, and PFC Energy is its strategic advisor. Its strategic partners are Abu Dhabi Investment House and Kuwait Investment Company.

Gulf Energy, a global consortium of energy experts, is at the forefront of the energy industry’s innovative business thinking.

Gulf Energy works to generate high value-adding ideas and see them implemented to the benefit energy stakeholders worldwide. Energy City Qatar, the Middle East’s first energy business centre, is the strategic concept of Gulf Energy.

Acting as chief technology advisor, Accelerator Technology Holdings, a company aimed at helping identify, invest in and build best of breed ventures in the ICT value chain in the Arab world, is a co-signatory to the MoU between Gulf Energy, Microsoft. Accelerator Technology Holdings, a leading regional ICT investment firm, will lead this initiative and translate the vision of Energy City-Qatar into a master-plan with clear objectives and defined opportunities.

TradeArabia