Tag: money

Biofuels in Europe: Part 2

  • Erhard Thäle and his wife grow organic crops like corn, peas and rye in these fields. They’ve lost money the last three years. Thäle know wants to sell his crops for energy. (Photo by Sadie Babits)

Farmers are finding they can
make more money selling crops
for energy than for food. A third
of all corn grown in the US gets
turned into ethanol. It’s tough
to balance the need for energy
and food when millions around
the world die from starvation each
year. Still, farmers are reconsidering
their roles – including in Germany.
In the second part of our three-part
series on biofuels in Europe, Sadie
Babits meets with one German
farmer who wants to make the switch
and become an energy farmer:

Transcript

Farmers are finding they can
make more money selling crops
for energy than for food. A third
of all corn grown in the US gets
turned into ethanol. It’s tough
to balance the need for energy
and food when millions around
the world die from starvation each
year. Still, farmers are reconsidering
their roles – including in Germany.
In the second part of our three-part
series on biofuels in Europe, Sadie
Babits meets with one German
farmer who wants to make the switch
and become an energy farmer:

Erhard Thale jokes a lot about being an organic farmer. It’s about all he can do.

“He has like his corn harvest from two years ago is still lying down on his farm so it’s not sold on the market.”

It’s hard to imagine. We’re outside Ludwigsfelde not too far from Berlin. Thale’s land looks green and healthy – not bad for late fall. But looks can be deceiving. Thale says he’s lost money for the past three years. He blames his land and a volatile world market.

“Then My wife comes and asks, ‘where do we go from here? Piggybank is empty. Money gone.’”

Thale says he can make more money selling his organic corn and rye for energy instead of food. He’s not joking around. There’s a growing movement in Germany to get farmers like Thale to set some of their land aside to grow grains just for energy. There are now areas throughout the country developing so called “bio-energy regions.” The idea is that a community like Ludwigsfelde would produce its energy locally.

Farmers like Thale would sell their grains and manure to a regional bio-energy power plant. Those materials would get turned into green energy. The 20,000 residents who live here wouldn’t have to rely on fossil fuels and they’d cut down on greenhouse gas emissions. Sounds promising. But Thale says he’d build his own plant if he had three million dollars. Then he could keep all the profits from selling energy.

“He needs an uncle in the U.S. with two million euros.” (laughter)

Other farmers, though, are cashing in, finding money in, well, poop.

(sound of milking machine)

A cow chews her cud as an automatic machine does the milking. This milking parlor is part of an agricultural training center here in west central Germany. This is the greenest farm I’ve been on. There’s a bio-energy power plant. Wind turbines and solar arrays.

Klaus Wagner runs the center. He says this cow’s manure is more valuable than the milk.

“That can’t be.”

Wagner sees a growing rivalry between dairy farmers who want to sell milk and those who want to sell manure for biogas.

“I guess that the milk and energy production on the other side belongs together. And those farmers who built 3-4 years ago biogas plant they earn real money now. The biogas plant substitutes the milking production.”

It really comes down to a question of sustainability. How much land here in Germany and, for that matter, the U.S. should be set aside for making energy? It’s not an easy answer. In the long run, if farmers grow grains for energy instead of food, that will impact the food supply and eventually what we pay at the grocery store.

For The Environment Report, I’m Sadie Babits.

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Oil and Prices at the Pump

  • Right now, we’re paying anywhere from 70 cents to a dollar more per gallon than this time a year ago. (Photo courtesy of the National Renewable Energy Laboratory)

Energy analysts say a glut of
oil means gas prices probably
won’t spike too much this year.
Rebecca Williams has more:

Transcript

Energy analysts say a glut of
oil means gas prices probably
won’t spike too much this year.
Rebecca Williams has more:

We’re paying anywhere from 70 cents to a dollar more per gallon than this time a year ago. The good news is, we’re not likely to see four dollar-a-gallon gas anytime soon.

“We’re not in a world with runaway oil prices.”

That’s Ruchir Kadakia. He’s a global oil market expert with IHS Cambridge Energy Research Associates. He says weak global demand is keeping oil prices in check for now. At the same time, supply is relatively high. He predicts oil won’t average much higher than 80 dollars a barrel for the next year or so.

“And so what that really means for the gasoline point is through probably 2011, we shouldn’t expect to see gasoline prices much above three dollars unless it’s for a short period of time maybe in the summertime for a few months.”


Kadakia says oil speculators can drive prices higher or lower in the short term. But he doesn’t think we’ll see any major price spikes over the long term.

For The Environment Report, I’m Rebecca Williams.

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Subsidized Grazing

  • Ranchers have to pay to let their cows, sheep and goats eat plants on public land. (Photo courtesy of the USDA)

The US Forest Service has
announced it will not increase
fees for ranchers who let their
animals graze on public lands.
Rebecca Williams reports that
makes some environmentalists mad:

Transcript

The US Forest Service has
announced it will not increase
fees for ranchers who let their
animals graze on public lands.
Rebecca Williams reports that
makes some environmentalists mad:

Ranchers have to pay to let their cows, sheep and goats eat plants on public land. This year, that monthly fee is staying put at $1.35 for each so-called “animal unit.” For example, that’s a cow and her calf, or five sheep.

Taylor McKinnon is with the Center for Biological Diversity. He says livestock grazing is one of the reasons species like the desert tortoise and Mexican gray wolf are in trouble. And he says taxpayers are subsidizing livestock grazing, and then paying to fix the damage it creates.

“We have the U.S. Fish and Wildlife Service whose recovery programs are spending tremendous amounts of money to recover species who have been imperiled by livestock grazing.”

McKinnon says raising grazing fees would increase costs for ranchers.

No one at the National Cattlemen’s Beef Association was available for comment.

For The Environment Report, I’m Rebecca Williams.

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Geothermal Is Growing

  • This map shows the distribution of geothermal resources across the United States. (Photo courtesy of the US Department of Energy)

Geothermal power plants turn
heat from under the Earth into
electricity. It’s a way of
making power with practically
no pollution. And, according
to a new report, there are more
companies investing in this kind
of energy. Mark Brush has more:

Transcript

Geothermal power plants turn
heat from under the Earth into
electricity. It’s a way of
making power with practically
no pollution. And, according
to a new report, there are more
companies investing in this kind
of energy. Mark Brush has more:

The report was put out by the Geothermal Energy Association. They found the number of geothermal power plant projects being developed jumped by 46% compared to 2008.

They say the jump was driven by federal stimulus money. And some state laws that mandate that utilities provide a certain percentage of renewable power.

Karl Gawell is with the Geothermal Energy Association. He says, right now, there are specific places where these power plants work best.

“Well, the best reservoirs right now tend to be in the western United States. And in areas where the heat of the Earth actually comes closer to the surface of the Earth. But, you know, the potential is nationwide.”

Gawell says we don’t have good technology to find new heat reserves under the Earth. And, until we invest in better exploration technology, we won’t know where to find these hot spots.

For The Environment Report, I’m Mark Brush.

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Money for Railway Upgrades

  • 8 billion dollars was announced for rail projects. (Photo courtesy of the Library of Congress)

The Obama Administration’s
release of money for higher
speed rail ended up being less
than most states wanted. Lester
Graham reports on what this
will mean for passenger train
service:

Transcript

The Obama Administration’s
release of money for higher
speed rail ended up being less
than most states wanted. Lester
Graham reports on what this
will mean for passenger train
service:

Eight billion dollars apparently doesn’t go that far in rail projects. The pundits have noted California’s Sacramento to San Diego corridor got 2.3 billion and Florida’s Tampa to Orlando route got 1.25 billion, making those states the big winners.

But if you forget state boundaries and look at rail networks, the Midwest’s Chicago Hub network pulled in a whopping 2.6 billion to improve the rails.

Amtrak doesn’t get any of this money. It just runs the trains. It doesn’t own many of the tracks. But spokesman Steve Kulm says better tracks mean Amtrak trains can go faster.

“Train speeds are going to increase from say 79 to 90 or from 90 to 110. But wit this funding that was announced, there was the Florida project and the California project. If those projects do happen and get moving, those projects will be at the 150 or higher levels.”

That’s how fast the train from Washington to New York goes and it’s getting more passengers than the airlines.

For The Environment Report, I’m Lester Graham.

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Going Renewable Voluntarily

  • Researchers say some companies bought renewable power because customers pushed them to. (Photo courtesy of the National Renewable Energy Laboratory)

The market for renewable solar
and wind power is growing quickly.
Most people assume that growth
has been mandated by government.
But Shawn Allee found
a report that challenges that:

Transcript

The market for renewable solar
and wind power is growing quickly.
Most people assume that growth
has been mandated by government.
But Shawn Allee found
a report that challenges that:

The report’s from the Center for Resource Solutions, an advocacy group.

Orrin Cook was a co-author. He totaled up growth in sales of wind, solar and other renewable energy between 2003 and 2008. He compared how much growth came from government mandates and how much was bought voluntarily. Cook says the voluntary market grew a tad faster.

“States requiring renewable energy and federal government requiring renewable energy is really just part of that equation. Another part is businesses and individuals buying renewable energy when they don’t have to.”

Cook says this voluntary renewable energy market grew because some companies have eco-minded managers. But he says companies also bought renewable power because customers pushed them to.

Cook looked at federal figures that came out before the financial crisis.

For The Environment Report, I’m Shawn Allee.

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Asian Carp Update

  • Charter boat captain Eric Stuecher says Asian Carp will likely ruin his business. (Photo by Jennifer Guerra)

A big monster of a fish is at
the center of a US Supreme Court
case. Asian Carp are making their
way up the Mississippi towards the
Great Lakes. Michigan’s Attorney
General filed a lawsuit asking the
Court to close a Chicago canal in
order to keep the carp out. The
shipping industry says, ‘no can do.’
Jennifer Guerra has
a closer look at what’s at stake:

Transcript

A big monster of a fish is at
the center of a US Supreme Court
case. Asian Carp are making their
way up the Mississippi towards the
Great Lakes. Michigan’s Attorney
General filed a lawsuit asking the
Court to close a Chicago canal in
order to keep the carp out. The
shipping industry says, ‘no can do.’
Jennifer Guerra has
a closer look at what’s at stake:

There’s one way to look at this as a purely economic story. In one corner you’ve got the people who ship cargo by water.

“Lynne Munch, senior vice president regional advocacy of the American Waterways Operators.”

She says, if the Illinois is forced to close two of the locks in the Chicago canal permanently, more than 17 million tons of cargo will have to be shipped by truck instead of barge, and hundreds of jobs will be lost.

“One company alone has reported that they will lose 93 jobs next year if the locks are closed. One of our towing companies estimates they’ll lose more than 130 jobs if the locks are closed.”

In the other corner, you’ve got the seven billion dollar tourism and fishing industries.

“Oh hi, I’m Eric Stuecher, I own a company called Great Lakes Fishing Charters.”

Stuecher takes people out on the Great Lakes and in rivers across Michigan. Salmon, Trout, Perch, you name it, he’ll help you fish it. But if the invasive Asian Carp get into the Great Lakes?

“It would probably cost me the business. They’ll eat anything they can get in their mouths, to the demise of so many of our other game fish.”

So that’s the economic side of the story. But what if we told you there’s more at stake here than dollars and cents.

“In terms of environmental impact, the Asian carp have the potential to seriously disrupt the Great Lakes ecosystem.”

That’s Marc Gaden with the Great Lakes Fisheries Commission. He says there are already a lot of pests in the Lakes.

“There are 180 non-native species in the Great Lakes, many of which came in accidentally. Precisely two of them can be controlled. That’s it. So that’s why biologists and others are very, very concerned about the Asian carp. Once they get in, the cat’s out of the bag.”

Asian Carp were first brought to the states by Southern catfish farmers. The carp escaped the South in the 1990s because of flooding and have been making their way north ever since. These fish are huge. They can grow to four feet and weigh up to 100 pounds, and they reproduce like crazy. In some areas, they reproduce so much that by weight they account for more than 90 percent of the fish in the Mississippi River system.

So you can see why people around the Great Lakes don’t want them.

That’s why Gaden and a lot of other scientists say we should somehow block the man-made canal that connects the big rivers to the Great Lakes for barges carrying cargo.

“We need to be open to saying, just because we’ve been moving goods on the canal by barge for decades and decades, doesn’t mean we need to continue to do it that way. Is there a better way to do it? Can we shift it to rail?”

Gaden and others have been arguing for 15 years to get some kind of permanent barrier built in order to stop invasive species from moving from one ecosystem to another.

“The government agencies that are responsible for doing things on that canal are not moving at the speed of carp, they’re moving at the speed of government. And we don’t have a minute to spare.”

That’s because new DNA tests suggest that Asian carp have moved well beyond the electric barrier meant to keep them out of Lake Michigan.

For The Environment Report, I’m Jennifer Guerra.

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Timber Bandits

  • Last year in Alabama, timber thieves stole more than a half million dollars worth of trees. (Photo by Randolph Femmer, courtesy of the National Biological Information Infrastructure)

The construction slump has meant
less demand for two-by-fours, but
trees are still worth big bucks.
An individual tree can be worth
anywhere from a hundred dollars
to thousands. And Tanya Ott reports timber theft is up
because of the economy:

Transcript

The construction slump has meant
less demand for two-by-fours, but
trees are still worth big bucks.
An individual tree can be worth
anywhere from a hundred dollars
to thousands. And Tanya Ott reports timber theft is up
because of the economy:

(sound of timber truck)

Timber is an important revenue stream for some areas. But from New York to
Washington State, forest managers say timber thieves have been pretty
active. Last year in Alabama, they stole more than a half million dollars
worth of trees.

State forester Linda Casey says landowners might have
earmarked that money to pay off the mortgage or send their kids to college.

“If they have timber stolen they just lost the only chance that
they have to achieve whatever goal that they had designated to use this
money for.”

Foresters say reckless timber thieves also damage wildlife habitats.

States
are cracking down. This month, Alabama will decide on tough new rules that
would make it a misdemeanor to even step on private forest land without
permission.

For The Environment Report, I’m Tanya Ott.

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Shutting Off the Heat

  • Four million homes had their heat or power turned off this year. (Photo by Elizabeth A. Sellers, courtesy of the National Biological Information Infrastructure)

Millions of families had their heat
or electricity shut off this year.
Rebecca Williams reports that happened
even though government assistance
for energy bills doubled:

Transcript

Millions of families had their heat
or electricity shut off this year.
Rebecca Williams reports that happened
even though government assistance
for energy bills doubled:

Record numbers of Americans are having trouble paying their heating or power bills.

Mark Wolfe is with the National Energy Assistance Directors’ Association. He represents the state agencies that help people pay their energy bills.

He says when families use up their allotment of energy assistance, things can get tough.

“It’s pretty awful – they go to payday lenders, pay high interest rates to get extra money, they borrow from relatives, they cut back on medicine, they turn the heat down to dangerous levels. These are families that’ve already gone from steak to chicken to rice. They don’t have a lot of choices.”

Four million homes had their heat or power turned off this year.


Wolfe says unless the economy improves next year, the number of families needing help with their bills could be even greater.

For The Environment Report, I’m Rebecca Williams.

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Green Biz in the Black

  • A green "stop-n-shop." Locali's in L.A. (Photo by Devine Browne)

When the banks failed and the recession
hit last fall, lots of people predicted
that the burgeoning green economy would
get nipped in the bud. But that’s not
what happened. Julie Grant spoke with
some business experts about the status
of green companies:

Transcript

When the banks failed and the recession hit last fall, lots of people predicted that the burgeoning green economy would get nipped in the bud, but that’s not what happened. Julie Grant spoke with some business experts about the status of green companies.

Last fall, the iconic supermarket of the green movement was in trouble. After years of growth, Whole Foods’ stock prices were plummeting.

Nancy Koehn is professor of the history of retailing and consumer behavior at the Harvard business school.

She says despite the lingering high unemployment rate and the store’s notoriously high prices, things are looking better today for Whole Foods.

“They’ve rebounded very effectively over the last six months. their stocks trading up considerably, traffic is up in the stores, per customer tabs, or receipts, if you will, are up.”

But Koehn says Whole Foods customers might be a core group that’s committed to buying green. The jury is still out on whether green companies will win over mainstream consumers.

Lots of people rushed to Wal-Mart last Christmas – to get things as cheaply as possible in the wake of the financial meltdown. But Koehn says the large-scale flight to Wal-Mart has mostly run its course.

“The question now is – are consumers now, in this post crisis world, going to move to a new normal? – which includes a different way of thinking about the impact of our dollars on how what we buy affects a whole range of issues and people in the world.”

In other words, will people re-consider buying cheap goods made in China since many American jobs have been lost to that country, environmental concerns about products from China and that country’s record on human rights.

And, Koehn says even Walmart is becoming greener both in its operations and its products. For example, it now sells only energy efficient lights bulbs.

Joel Makower is editor of GreenBiz –dot-com. He says changes at WalMart are just a small part of the green business story today. Although, he might not have said that a year ago.

“I think the remarkable story of 2009 is that the green economy did not disappear when the overall economy went south. that it’s not only remaining in place, but the number of products and services from better cars to better cosmetics to computers are coming in to the market.”

Even though we’re the ones who buy these things, Makower says the future of the green business isn’t really about consumer demand. He says there’s a confluence of green technology, government regulation and available capital that’s driving the green economy forward.

“We’re going to be seeing that in energy, we’re going to be seeing that in buildings, we’re going to be seeing that in vehicles. We’re already seeing that in information technology. Where these things are coming together and regardless of consumer demand are being made available and attractive to consumers.”

Makeower gives the example of the IPOD. He says it wasn’t developed because people demanded it, or because we were running out of material to make CDs – it just offered a better technology – and so consumers have been buying it. In the process, the IPOD saved tons of material that was to be used on CD packaging.

These new products aren’t necessarily being labeled green products. And Business historian Nancy Koehn says American companies are going through a huge transition that won’t make such labels necessary.

“Because pretty soon the core aspects of what we define as green today will be such a part of so many businesses that we won’t make this distinction, we won’t have this kind of differentiation by the word green.”

Koehn says companies that have already started going green might be ahead of their competitors right now – in terms of energy efficiency and offering a wider array of green- products. But because of stockholder demands, government incentives– and eventually consumers – other businesses will likely start catching up to them.

For the Environment Report, I’m Julie Grant.

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