Innovative progress on ethanol...

A couple of weeks ago, I blogged about the numerous disadvantages associated with corn-based ethanol. In short, I mentioned how the US has been irrationally excited about corn-based ethanol production as an alternative fuel source. Corn prices have increased as a result of this massive diversion of corn being used for fuel versus food. Anyway, this blog entry courtesy of the NY Times discusses the possibility of energy cane. For instance, using orange peels as an ethanol source. This blog suggests that energy cane has more fiber than syrup and grows taller than sugar cane. Which means you can yield more energy from the plant. Again, unlike corn which is an essential high value crop in which millions rely on for food, energy cane or cellulosic ethanol is manufactured from woody plant matter (cellulose) from sources such as grasses, trees, rapeseed, switchgrass and agricultural waste. These things do not necessarily affect international food prices and consequently do not affect food inflation. Check out the blog here.