Warren Buffett's "Mystery Stock"

Billionaires are plowing millions of dollars into a new technology that early estimates say could generate more wealth than A.I. -- and determine the future of companies like Microsoft. The problem? Most investors have no idea it's happening, or how to profit on it. This expert just went public with all the details, including which stocks to jump on immediately.

Biofuel groups envision ethanol-powered jets. But fueling the effort has not been easy

JACK DURA and JOSH FUNK
June 18, 2024

MENOKEN, N.D. (AP) -- Some day, the passenger jets that soar 35,000 feet (10.6 kilometers) over Dan McLean's North Dakota farm could be fueled by corn grown on his land and millions of other acres across the Midwest.

It's a vision the U.S. airline industry embraces and agricultural groups see as a key to ensuring strong future sales of ethanol, a fuel that consumes more than one-third of the nation's corn crop and offers a cleaner-burning alternative for the nation's airlines.

But making that dream a reality hasn't been easy, in part because even as farmers would benefit from a huge new market for corn, the plan relies on federal tax credits triggered by capturing carbon dioxide at refineries and then moving the gas hundreds of miles through pipelines that would snake across the Midwest, including beneath farmers' fields.

Some of those farmers, along with environmentalist and property rights groups, have gone before regulatory authorities in several Midwest states to oppose the lines, and frequently they have succeeded in at least slowing the process. A key decision is expected soon in Iowa.

"This whole thing is private industry -- rich private industry -- getting tax money, strictly tax money to bury this stuff," said McLean, who opposes a line that would cross his farmland east of Bismarck. "That tax money is coming out of everybody's pocket, and they're going to walk away from it, and we're going to be left with a big poisonous pipe running across the country."

Supporters have faced such criticism for years as they seek approval of pipelines and tax credits. The credits would mean profits for refineries and help make the cost of the new fuel competitive with traditional jet fuel. But opponents see the pipelines as an expensive and potentially dangerous effort that tramples on property rights and fails to reduce greenhouse gases.

Gaining approval of pipelines has proved arduous.

Several companies have dropped their pipeline plans in the face of opposition and delay. The leading remaining company is Summit Carbon Solutions, which is seeking to build a 2,000-mile (3,200-kilometer) pipeline system through five Midwestern states -- North Dakota, South Dakota, Nebraska, Minnesota and Iowa -- with carbon dioxide emissions ultimately buried underground in North Dakota.

North Dakota regulators last year denied a siting permit for Summit but later agreed to reconsider. South Dakota regulators in September rejected Summit's application, but company officials said they would file again.

Summit must seek approval from individual counties in Nebraska, and one county earlier this year denied a permit. In Minnesota, regulators are doing an environmental review with future hearings planned.

An upcoming decision by the Iowa Utilities Board about whether to grant a pipeline permit and approve Summit's eminent domain requests will be key to the larger effort throughout the Midwest. Iowa is the nation's leader in corn and ethanol production.

To the renewable fuels industry, failure to gain approval of the pipelines could jeopardize a giant new aviation fuel market they believe would continue decades into the future, even as electric vehicles gradually replace gas-powered cars and traditional vehicles get more efficient.

"There's a lot at stake here. We have a market that we can open up that can really underpin rural prosperity for the next two or three decades," said Monte Shaw, executive director of the Iowa Renewable Fuels Association.

Essential to their efforts is a complicated formula that regulators established to approximate how much each ethanol plant contributes to global warming. Ethanol production already produces less carbon than gasoline production, but the industry must reduce that further to qualify for tax credits that require biofuel have a carbon score at least 50% lower than gasoline.

The Treasury Department recently tweaked that formula, taking into account the role farming practices, like planting cover crops and using no-till techniques, play in reducing carbon production. However, the rules require farmers to take all those steps so it will still likely be hard for ethanol to qualify without either carbon pipelines or a combination of several other expensive measures, like ensuring an ethanol plant is powered by renewable energy or biogas.

That's why many in the biofuels industry argue that carbon capture pipelines are the best option to obtaining tax credits.

Without the sustainable aviation fuel market, Shaw and others contend corn prices could ultimately collapse in future years as demand from motorists wanes.

Currently, the roughly 200 U.S. ethanol plants have the capacity to produce 18 billion gallons of ethanol annually, though some are idle so the industry produces about 15 billion gallons a year, according to the U.S. Energy Information Administration. Passenger jets now burn about 25 billion gallons a year and that is expected to grow to 35 billion gallons annually by 2050.

And whereas most gasoline is now blended with 10% ethanol, sustainable aviation fuel would use a 50% blend of ethanol. It also requires about 1.7 gallons of ethanol for every gallon of jet fuel.

"We refer to carbon capture and sequestration as the key that unlocks the sustainable aviation fuel market," Shaw said.

Ethanol trade groups estimate that federal tax credits for sustainable aviation fuel, combined with the existing credit for renewable fuels, can provide between $1.85 and $2.25 per gallon depending on the carbon intensity of the each ethanol plant. California, Minnesota and Illinois also have separate tax credits that can be added to the federal credits for fuel sold in those states.

With one of the biggest state tax credits of $1.50 in Minnesota or Illinois, some sustainable aviation fuel could receive nearly $4 per gallon in tax credits.

There is also a separate federal tax credit available for carbon sequestration but the rules won't allow producers to claim it simultaneously with the main federal credit for sustainable aviation fuel, resulting in a smaller total tax credit.

The biggest ethanol trade groups -- the Renewable Fuels Association and Growth Energy -- say all tax credits combined would help make sustainable aviation fuel competitive with traditional jet fuel that has been selling for about $2.5 to $3 a gallon. And costs could drop if ethanol plants start producing the jet fuel on a large scale.

One small plant in Georgia is now producing 10 million gallons a year of sustainable aviation fuel from ethanol, but Geoff Cooper, president of the Renewable Fuels Association, said he expects the industry's capacity to grow over the next five years to close to 800 million gallons annually.

Agricultural economists have estimated farmers would receive about $441 million more by 2050 if sustainable aviation fuel boosts ethanol demand from the current current 15 billion gallons to 28.5 billion gallons.

Continue Reading...

Popular

Tesla Loses Lead In EV Quality Among Peers: Auto Expert Pins It On Removal Of Stalks For Buttons

EV giant Tesla has lost its edge in terms of vehicle quality over EVs made by rival OEMs, as per automotive industry consultant JD Power.

Where Buffett, Gates, and Bezos Are Investing Now - Ad

Billionaires are plowing millions of dollars into a new technology that early estimates say could generate more wealth than A.I. -- and determine the future of companies like Microsoft. The problem? Most investors have no idea it's happening, or how to profit on it. This expert just went public with all the details, including which stocks to jump on immediately.

Supreme Court Rejects Trump-Ally Steve Bannon's Appeal, Prison Sentence Looms

The Supreme Court dismissed Steve Bannon's final appeal to avoid prison, mandating him to report to prison by July 1 for his contempt of Congress conviction.

Endeavor CEO Says He Disagrees With Elon Musk On Lot Of Things, But AI: Calls OpenAI's Sam Altman 'A Con-Man'

Endeavor CEO Ari Emanuel criticized OpenAI CEO Sam Altman at the Aspen Ideas Festival, calling him a "con man" untrustworthy for the future of AI.

Weekend Trading: The Key to Conquer Volatility with Tim Sykes! - Ad

Discover the power of weekend trading with Tim Sykes' strategy. Turn market turbulence into your advantage. Trade with us and win in any market condition.

What's Going On With Ocean Power Technologies Stock After Hours?

Ocean Power Technologies said it signed an Original Equipment Manufacturer agreement with Teledyne Marine, a division of Teledyne Technologies in an effort to  to enhance Ocean Power's product offerings and drive innovation within the industry.

"America's No. 1 Retirement Stock" (Name Inside) - Ad

According to the former Goldman Sachs VP -- who wrote a best-selling book on retirement -- one single stock stands head-and-shoulders above all others. And it should be the cornerstone of your portfolio. Have you heard of it?

Revealed: AI Keeps Leading Famous Trader to New Tickers - Ad

This strategy is a shocking way to leverage AI's controversial power.

Is Altseason Around The Corner? Real Vision Analyst Reveals Key Indicators

Real Vision analyst Jamie Coutts on Thursday presented an optimistic outlook for high-quality altcoins, highlighting that the current setup appears increasingly favorable as global liquidity gears up for expansion.

Stocks Show Modest Gains Ahead Of Fed's Inflation Report; Chipmakers Struggle, While Gold And Bitcoin Rebound: What's Driving Markets Thursday?

Wall Street experienced a subdued trading day on Thursday, as traders likely chose to remain on the sidelines in anticipation of Friday’s release of the Federal Reserve’s preferred inflation gauge.

America's 'Silent Invasion' - Is Your Town in the Crosshairs? - Ad

A silent invasion is happening all over America. It has nothing to do with the border but will end with even more disastrous results. Why? A faceless entity is coming by air, rail, port, and highway. What does it mean for you and your money? There's still time to prepare, but you must act today.

Apple Chip Veteran Joins Sam Altman-Backed AI Startup To Lead Hardware Engineering

Rain AI, a San Francisco-based startup, has appointed a former Apple Inc. chip executive to head its hardware engineering division. The new hire is expected to play a crucial role in the company's quest to develop innovative semiconductors for artificial intelligence.

Powerball Winnings Gone: What Happens To Unclaimed Lottery Tickets

Powerball winners often take home tens to hundreds of millions of dollars. Tickets that are lost or not claimed in time end in a different result.

Expert: The Most Important Message You'll See in 2024 - Ad

In short, America is being invaded...The invasion spreading across America is coming from the ports, highways, and railroads. AND it's being invited in by the White House. Many will be blindsided, but if you prepare today, you could come out far ahead.

Applications Are Open: Kentucky Set To Roll Out Medical Cannabis In 2025

Kentucky opens applications for medical cannabis permits, targeting early 2025 rollout. Details on participation for businesses and patients

Top 3 Materials Stocks That May Explode In Q2

Here's the latest list of major oversold players in this sector, having an RSI near or below 30.

One Billionaire's Genius Plan to Save the US Dollar From Collapse? - Ad

If you're holding any US dollars, you need to see what this tech titan is up to now... This could be the biggest change to our financial system since the creation of the Federal Reserve in 1913. Hurry... He has said he could flip the switch "as early as mid 2024."

Boeing Faces Sanctions From NTSB Over Unauthorized Release Of 737 MAX Investigation Details

The NTSB's action further strains the relationship between Boeing and government agencies, amid the planemaker's efforts to avoid criminal charges from the U.S. Department of Justice (DOJ) before a July 7 deadline.

Wall St. Icon: Looming Financial Tsunami Will Wipe Out the 1% - Ad

Wall Street icon who forecasted Black Monday and dot-com crash says a new economic event will hit the American economy like a tsunami. It doesn't matter if you're blue collar, white collar, working, or retired. He says, "I am literally afraid for my family's future. I'm taking drastic steps to prepare for what I know will inevitably happen next."

Four Cornell College Educators Stabbed In Northeast China, Say US Officials: Report

Four American educators from a small Iowa university were reportedly stabbed in a public park in northeast China's Jilin province over the weekend, according to U.S. media and U.S. government officials.

Bitcoin Rebounds From ETF Outflows, Back Above $61K

Bitcoin (CRYPTO: BTC) has bounced from its poor showing in Monday trading and is trading back above $61,000, despite significant net outflows from spot ETFs.

What President Biden's New Law Means for Investors - Ad

President Biden just signed a new law approving billions of dollars for one small but growing industry, and investors like Bill Gates and Peter Thiel are all over it. This expert just went public with all the details, including which stocks to jump on immediately.

Biden Debate Disaster! - Ad

Last night's debate was a disaster for Biden! But as bad as it was, Biden still has one last card to play... It will probably be enough to beat Trump. Worse, Biden's secret plan will be a disaster for America.

Stock market today: Asian shares lower after Wall Street closes another winning week

HONG KONG (AP) — Asian shares were mostly lower Monday after U.S. stocks coasted to the close of their latest winning week on Friday, even as ’s stock cooled further from its startling, supernova run.

VIDEO: Huge Cannabis March In Brazil As Supreme Court Considers Decriminalization

Watch the video of this Massive Cannabis March In Brazil advocating for cannabis reform as Supreme Court reconsiders decriminalization...

Seven Unknown AI Stocks That Could Dominate the Next Six Years - Ad

The original "Magnificent Seven" stocks generated 16,800% over the last 20 years. But now a new set of AI stocks is set to take over. Alex Green dubs them "The Next Magnificent Seven." And he's arguing that just $1,000 in each could turn into more than $1 million in less than six years.

Chinese EV Maker ZEEKR Sees 117% Jump in Vehicle Deliveries in Q1, Outperforms Expectations

ZEEKR reports strong Q1 2024 results with 71% Y/Y revenue growth. Vehicle sales and gross margin also show significant growth.

Morgan Stanley Picks This Taiwanese Chip Designer As 'Unique Nvidia Proxy'

They anticipate Aspeed will gain additional traction in smart city and factory projects, which should positively influence the company's gross margins.

Buy This Sub-$5 Play on His Final Masterpiece - Ad

I just issued my latest prediction on how this billionaire is about to shock the world with what I believe will be his final masterpiece. Once he flips the switch... Which could happen as early as mid-2024... I believe it could send this sub-$5 play skyrocketing in the coming months.

65% Of New Hampshire Residents Support Legalizing Adult-Use Cannabis, New Poll Shows

New Hampshire poll shows 65% support for recreational cannabis legalization despite legislative setbacks. Public opinion pushes for reform.

Why Alibaba Stock Could Rally: Golden Cross In Sight

Alibaba is nearing a bullish Golden Cross, with strong AI and cloud ambitions, despite facing competition and bearish momentum. Solid business, attractive valuation, and potential uptrend signal future growth.

Nvidia Is Pivoting to Solve Big Tech's $1 Trillion Problem - Ad

Nvidia is the hottest company in the world thanks to its chip business. But here's the thing: Nvidia is making a massive $1 trillion pivot ... To solve AI's biggest problem. But it's not making this move by itself. A new set of companies are partnering with Nvidia in this trillion-dollar venture.

Microsoft, Amazon Or Palantir: Reddit Users Debate How To Invest $4,900

Reddit users debate best stock picks for $4.9K investment. Microsoft and Amazon seen as strong choices, while Palantir's potential sparks debate.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright smartmoneytrading.net
Privacy Policy | Terms of Service