U.S. corn ethanol "was not a good policy"-Gore

Mon Nov 22, 2010 12:24pm GMT
 

* U.S. ethanol consumes about 40 pct corn crop

* Impact on food prices "real"

By Gerard Wynn

ATHENS, Nov 22 (Reuters) - Former U.S. vice-president Al Gore said support for corn-based ethanol in the United States was "not a good policy", weeks before tax credits are up for renewal.

U.S. blending tax breaks for ethanol make it profitable for refiners to use the fuel even when it is more expensive than gasoline. The credits are up for renewal on Dec. 31.

Total U.S. ethanol subsidies reached $7.7 billion last year according to the International Energy Industry, which said biofuels worldwide received more subsidies than any other form of renewable energy.

"It is not a good policy to have these massive subsidies for (U.S.) first generation ethanol," said Gore, speaking at a green energy business conference in Athens sponsored by Marfin Popular Bank.

"First generation ethanol I think was a mistake. The energy conversion ratios are at best very small.   Continued...

Market Update

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.5654
Euro USD =1.2388
Rand USD =0.0912