corn prices ho wing tung janice. what does corn make? food commodities food grain for breeding by...
TRANSCRIPT
Corn pricesHo Wing Tung Janice
What does corn make?• Food commodities
• Food grain for breeding
• By product: Bioethanol
How to make biofuel?
• Filtering• Removing of water• Titration• Preparation of sodium methozide• Heating and mixing• Settling and separation
Bioethanol
• A kind of alcohol made from corn, of high quality
• Commonly found in Brazil
• Blended into gasoline as a fuel enhancer
• Advantages• Increase car’s thermal efficiency• Reduce pollution
• Tax credit, subsidies are provided by US government
• Disadvantages• Smaller energy density and output level (2/3 of petrol)• Need a bigger tank to fully substitute petrol• Easy to erode pipelines
What affects prices of corn?
Prices of Corn
Highest: $445.75 Lowest: $300.5
Emerging trends
1. Global Warming
• Alternatives of gasoline and petrol
• Bioethanol can be a more environmentally friendly
• Higher demand for bioethanol
Prices of corn
2. Second generation biofuel
• Aim:
• The Energy Independence and Security Act 2007
• Increase 3x usage of biofuel in 10 years with advanced biofuel
• Frees the industry from reliance on a single commodity
• Avoid threatening food supply and biodiversity
Categories
Second Generation Biofuel
• Derived from non-food commodities
• E.g. woodchips, industrial waste, leaves
• Less greenhouse gas emission
• Higher energy output
• Substitute of corn-biofuel with better performance
Prices of corn??
Short term (3-5 years)
• Corn prices
• Target set by America’s Environmental Agency
• High fixed cost to invest in non-food biofuel
• Food-biofuel still dominates with raising demand
Long Term (5-10 years)
• Joint ventures emerge
• US government grants and loans to investors
• Oil companies are joining the ventures
• Solazym and Chevron
• BP and Dupont
• Prices of corn will substantially
Q & A
Emerging trends
European Union’s goal of reaching 10% of transportation fuel as biofuel
Shell and Cosan team up on ethanolGeneration gameA champion of futuristic biofuels embraces the old-fashioned kindFeb 4th 2010 | SÃO PAULO |
America's biofuel muddleComing up emptyAmerica will have trouble meeting its ambitious goals for biofuelsMar 25th 2010 | CHICAGO
Joint ventures
Higher targets