Lake Erie Biofuels is no hero

The following letter to the editor appeared in Sunday’s Erie Times-News. I highly recommend it to anyone whos hasn’t already seen it. The author of the letter, Frank M. Gerlach of Harborcreek is to be commended for his perspicacity.

Biodiesel plant an albatross for future generations

"In the Feb. 21 Erie Times-News, a feature story stated that Hero BX, the local biodiesel plant, is feeling the pain because its buyers are losing a $1-per-gallon tax credit. As a result, it is idling the facility and 80 jobs are affected.

"Let's take an objective look at the federal government giveaway. The plant has a capacity of 45 million gallons of biodiesel per year. That is $45 million that we need to borrow from China to pay for this boondoggle.

"But wait, the plant employs about 80 people. About $45 million in tax credits divided by 80 jobs equals $562,500 per job annually (what a deal).

"It is no wonder that this kind of government thinking has been and will continue to make our great nation a second-rate country. If we don't have the money, we borrow it. Our grandchildren and their children will pay for this kind of government thinking. And, by the way, I understand that almost all of the biodiesel provided at this facility is shipped overseas.”

In that same vein, here’s a blog I posted here back on Thursday, September 17, 2009

Energy contradictions at the Erie Times-News

In its blind zeal to promote development at any cost in Erie, the Times-News breathlessly editorialized on behalf of Lake Erie Biofuels Tuesday which has been producing biofuels at the old Hammermill plant site for a year or so now.

Applauding the plant's planned production expansion from 40 million to 70 million gallons annually with the help of a $1.6 million state loan, the editorial ignored the internally inconsistent claim that the company's newly announced expansion will help the nation to achieve "energy independence" despite the fact that virtually all its heavily taxpayer-subsidized product(amounting to about $1 a gallon) will continue to be exported outside the U.S.

The Times-News hailed the fact that the company has changed its name to "Hero X," appropos to nothing in evidence except that "The name change is part of a branding campaign to reach a worldwide market," while boasting that its use, among other raw materials, of vegetable oils would promote environmentally benign goals.

This further ignores the hard lessons of the recent ethanol craze which resulted in a 35 percent increase in the national average consumer cost of foods like bread, cereals, poultry, beef and other foodstuffs dependent primarily upon ethanol feedstocks such as corn and grains.

On one hand, the editorial quoted a company official as saying:"We believe in biodiesel and its role for our country in increasing our energy independence (my emphasis)and improving our environment." But on the other hand it quotes the same official as saying "the plant is strategically located to export(my emphasis)its products using rail, highways and Lake Erie."

Oblivious to the inherent contradiction, the Times-News editorial exulted: "It's exciting to realize that Erie can help lead the way as Americans make good on our decades-old pledge to achieve energy independence."

To date, Erie Biofuels has exported most if not all of its product across the oceans, where there are more lucrative markets. There's no reason to believe that will change anytime soon,if ever. How does that promote national energy independence? Exporting domestic biolfuels and U.S. energy independence are mutually exclusive conceits