Behind Big Oil’s Green Motivations

  • The Maryland Science Center is running a pilot project, renting out a handful of bright green battery powered cars to Baltimore residents and tourists. The cars use a battery that employs a special polymer film developed by Exxon Chemical. (Photo courtesy of the Maryland Science Center)

Some well known oil companies
are very publicly getting behind
alternative energy initiatives.
But are these serious efforts
or just a case of green-washing?
Tamara Keith tries
to get some answers:

Transcript

Some well known oil companies
are very publicly getting behind
alternative energy initiatives.
But are these serious efforts
or just a case of green-washing?
Tamara Keith tries
to get some answers:

The first thing oil giants like Exxon Mobil, BP and Chevron would
like us to know is that they’re not oil companies. They are energy
companies. So, they say, investing in biofuels, solar panels and
geothermal power really isn’t out of character… even if those things
only make up a fraction of their total business.

And I guess that’s how you end up with an electric car that says
“powered by Exxon Mobil” on its bumper.

Reiner: “So, you want to go take a look?”

Keith: “Yeah, sure.”

Vann Reiner is the CEO of the Maryland Science Center.
The center is running a pilot project, renting out a handful of
bright green battery powered cars to Baltimore residents and tourists.

Reiner: “Here’s the gas cap.”

Keith: “It’s an outlet.”
Reiner: “It’s an outlet, that’s right. And you see it’s 110 volt
15 amp – so household current.”

The cars use a battery that employs a special polymer film developed
by Exxon Chemical.

“So, you turn the key the way you normally would.”

(sound of car)

Exxon Mobil said it couldn’t make anyone available to be
interviewed for this story.

Reiner: “Nice job on acceleration.”

Keith: “Thank you.”

So I asked the science center’s Reiner what I wanted to ask
the folks at Exxon Mobil. Why in the world is an oil company
promoting an electric car? Isn’t that like working to put themselves
out of business?

“I see it as a technology company who has made a lot of money
in oil, no getting around that. But what else can you do? And
this is a way to insure their future, in my opinion. But I’m just
delighted that they chose us.”

Exxon Mobil also recently announced a 600-million dollar investment
in algae as a future biofuel – and the company is making sure we all
know about it with with newspaper and television ads.

“And they absorb CO2. So they help solve the greenhouse problem as well.
We’re making a big commitment to finding out just how much algae can help
to meet the fuel demands of the world.”

Still, Exxon Mobil is planning for oil, gas and coal to continue dominating
the world’s energy supply for at least the next 30 years.

Alex Yelland is with Chevron, and he says that’s what his company is projecting, too.

“Renewables is currently around 10 percent of the energy mix, and, in the
coming decades, that’s not expected to change a huge amount but from its
current state it’s relative state, it will grow significantly.”

Over the next 2 years, Yelland says Chevron plans to spend 2-point-7
billion dollars on renewable energy and energy efficiency. But Yelland
insists that kind of investment in energy sources other than oil isn’t
counterintuitive.

“For us, it’s about building a sound business for the future and
understanding where global demand is going and how we can meet that.”

“I think it definitely is smart PR.”

Edward Wu is with Cora Capital Advisors in New York. His firm specializes
in alternative energy investing. He says these companies are worth hundreds
of billions of dollars and, by comparison, their green investments are fairly small.

“They’re not going to replace oil, but I think they’re hoping that
they’ll be somewhat economically viable and at the same time definitely
serve a PR purpose right now.”

But Wu says the sprinkling of investments isn’t just about having something
to talk about in their ads.

“They want to have some biofuels in the mix. They want to have some battery
companies in the mix. They’re essentially dipping their toe in the water to
essentially hedge their bets.”

Because no one will want to be an oil company if, or perhaps we should say when,
oil stops dominating the energy landscape.

For The Environment Report, I’m Tamara Keith.

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Fuel From Abandoned Fruit

  • Every year, 20% of the watermelon crop never makes it to buyers. Wayne Fish hopes to turn some of this waste into ethanol. (Photo by Gail Banzet)

Every year in the US, more than 750-
million pounds of watermelon rot away
in the fields. Those left behind can’t
be sold because they’re sunburnt, diseased
or damaged, but now scientists in Oklahoma
are working on a way to use the abandoned
fruit. Gail Banzet reports:

Transcript

Every year in the US, more than 750-
million pounds of watermelon rot away
in the fields. Those left behind can’t
be sold because they’re sunburnt, diseased
or damaged, but now scientists in Oklahoma
are working on a way to use the abandoned
fruit. Gail Banzet reports:

Growers say it was a pretty fair season for watermelons in 2009. A lot of ripe, juicy
melons were enjoyed during the summer months, but, every year, 20% of the crop
never makes it to buyers.

(sound of driving)

Research chemist Wayne Fish steers his truck around the USDA’s agriculture research
laboratory in Lane, Oklahoma.

There are 320 acres of different crops and vegetables here, and one acre is dedicated
to watermelons. Workers have already picked the good ones. Those that are left are
discolored, misshapen or damaged by raccoons or birds.

“There’s one where a crow has pecked on it. That melon is over-ripe, so it has
two strikes against it.”

But Wayne Fish says that watermelon can still be used.

“It’ll still make ethanol fine.”

Four years ago, the National Watermelon Association started studying the ethanol
potential of watermelon sugars. When the project showed favorable results, a trial
process began at the research station in Oklahoma. Bob Morrissey is Executive Director
of the National Watermelon Association.

“If you’ve got that fully developed watermelon there, it has all of the components
– the water, the sugar and the fiber – to create ethanol.”

(sound of machines in a lab room)

Back at the research station in a lab, Wayne Fish and his team combine yeast with
watermelon sugars. Hours later, the mixture is fermented and placed in a still.

“By distilling that mixture, one drives the ethanol off together with a small
amount of water. That’s how we enrich the mixture to ultimately 95% ethanol.”

Fish says the project is not an attempt to replace sugar cane or corn for ethanol. This
pilot phase of testing shows wasted watermelons can add some ethanol to the overall
market.

Bob Morrissey at the National Watermelon Association says using the melons could
open up a whole new market for farmers. They could sell the good ones to people and
the bad ones to ethanol plants.

“That farmer could literally harvest his or her entire crop, send it to the ethanol
plant, and at least get something out of it to try and cover their cost instead of
taking a complete loss.”

There are a lot of growers across the country who are worried about wasting melons.

Jim Motes is from Oklahoma. Even though he’s not a huge farmer, he says he’s always
looking for ways to make the most of his crop.

“If they can find a large enough quantity to make it efficient, then it’s a good idea,
because there are a lot of watermelons laying there when the field disked up that
ought to find some use.”

Researchers say watermelon ethanol is drawing a lot of attention. A Texas-based
company Common Sense Agriculture is currently working on a mobile unit that would
process the melon sugars and produce ethanol right in the field.

For The Environment Report, I’m Gail Banzet.

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The Attractiveness of Ethanol

  • The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend. (Photo courtesy of the National Renewable Energy Laboratory)

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Transcript

Cheap oil makes switching to alternative
fuels such as ethanol less attractive.
Lester Graham reports that could affect
an upcoming decision about using more
ethanol:

Crude oil prices spiked a little because of Iran’s long-range missile testing and revelations of a secret nuclear facility.

But analysts think for the next several months we’ll actually see oil prices go down – maybe to around $30 a barrel, less than half of what it is now.

And that could hurt demand for fuels such as ethanol.

But the government has mandated the nation produce more ethanol.

Dan Flynn is an analyst with the trading firm, Alaron.

“Obviously the government definitely wants to push this through. However, the price of crude oil and gasoline, if that goes down, generally people look not to look for alternative sources of energy.”

One way to use more ethanol is to mix higher amounts with gasoline.

The government will soon decide whether to allow increasing the mix from the current 10% blend to as high as a 15% blend.

For The Environment Report, I’m Lester Graham.

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Sampling a New Crop: Sugar Corn

  • Todd Krone researches corn for Targeted Growth, a bio-energy company. Targeted Growth is tweaking corn genetics to produce 'Sugarcorn,' a variety with high amounts of sugar and biomass. The hope is the plants can be converted into ethanol cheaply. (Photo by Shawn Allee)

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

Transcript

The federal government wants more
and more ethanol in our fuel supplies,
but it worries about how its made.
Most American ethanol is made from
corn kernels. That’s inefficient
and it makes the ethanol and food
industries compete for corn. The
government’s mandating we start making
ethanol out of things other than corn
kernels. Shawn Allee looks
at one effort to meet that mandate:

I’m just outside an ethanol plant in central Indiana and its pretty much like most ethanol
plants. There’re a lot of semi-trucks going by and they’re loaded with yellow corn kernels.


Most ethanol plants grind corn kernels for starch, they let that starch turn into sugar, then
they brew the sugary juice into ethanol. Now, this whole process would be easier and
cheaper if we could make ethanol directly from sugary plants instead of starchy grain
kernels like corn.


Pretty quick here, I’m gonna meet a guy who’s trying to make corn a plant that’s easy to
grow in the Midwest but produces sweet juice – not starchy corn kernels.

“If you walk over here, these are our sugar corn hybrids.”

I’m with Todd Krone. He’s a researcher with a company called Targeted Growth. He walks me
through a test plot of a plant nicknamed ‘Sugarcorn.’ He pulls off a ear of corn and pulls back the
leaves.

(sound of leaves being pulled back)

The ear is almost bare.

Allee: “There’re just a few stray kernels developing, very few.”

Krone: “Yep. A few got through.”

Krone says this plant avoids making corn kernels. Instead, it puts energy and sugar into the
stalk. He can prove it with a taste test – right here in field.

He snips a piece of stalk.

(sound of snipping)

And pulls out a little press.

Krone: “You squeeze some of the juice to see how much sugar’s there. It’s up to you, if
you like, you could put on on your finger and taste. Is there sweetness?”

Allee: “Yeah, it’s definitely sweet. It’s definitely got a sweet tinge to it.”

Krone: “It might be a bit sweeter than pop might be.”

Krone says tests show Sugarcorn juice is as sweet as juice from sugar cane. He says this means
America could have a new plant that boosts ethanol production – but doesn’t compete with food,
and uses equipment farmers already have.

Krone: “For the farmer, not much changes until harvest when some logistics still need to
be worked out.”

Allee: “Obviously if you’re selling a lot of this corn, you’d be making a good deal of profit,
hopefully, what’s in it for the rest of us in terms of the success or failure of this, for drivers
and everybody else?”

Krone: “I would say, hopefully, it results in cheaper ethanol that can compete with cheap
oil. And then meeting that mandate to get more and more ethanol produced.”

Well, that’s the idea, but Targeted Growth would have to change more than just corn plants to
succeed. They’de have to change how at least some ethanol companies do business. And some
ethanol companies have some tough questions about it.

“How could you handle sugarcorn? How would you store it?”

This is Jeff Harts. He works at Central Indiana Ethanol. Harts says he likes the idea of using
sweet corn juice to make ethanol – it could be efficient. But he worries about getting enough to
run an expensive operation like his. He has no problem finding corn kernels.

“It’s a consistent flow of corn and we need that consistent flow to keep going. That’s why
we have storage, the farmers have storage. That’s why we have a local grain elevator
network to ship corn to us to keep that flow steady 12 months out of the year.”

Harts’ company might be a bit reluctant to change right away, but ethanol producers will have
find alternatives to the corn kernel. The government is capping how much ethanol can come
from corn starch.

As those requirements phase in, alternatives like Sugarcorn might look sweeter than they do
now.

For The Environment Report, I’m Shawn Allee.

Related Links

Rolling Out a New Tire Program

  • This is a mock-up of what the proposed label would look like (Photo courtesy of the National Highway Traffic Safety Administration)

Back in 2007, Congress told the
National Highway Traffic Safety
Administration to come up with
new fuel efficiency labels on tires.
Mark Brush reports on when we might
see those labels in tire shops:

Transcript

Back in 2007, Congress told the
National Highway Traffic Safety
Administration to come up with
new fuel efficiency labels on tires.
Mark Brush reports on when we might
see those labels in tire shops:

It’s been 2 years, and the government is still working out how to get this labeling program going.

Right now, if you walk into a tire shop, it’s hard to compare tires on how fuel efficient they are. There’s no official standard yet.

But that should change soon. The new tire labeling program is expected to roll it out in the next few months.

Dan Zielinski is a spokesman for the Rubber Manufacturers Association. He says they support a labeling law because it’ll help competition.

It could give tire makers something to brag about.

“’It will be an incentive to say ‘my tire is better because,’ or, ‘my range of tires here are better because.’ It offers the consumers better performance on certain criteria. And I think that will drive the market even before the consumer demand does.”

A more fuel efficient tire will only get you a couple of miles per gallon more. But, put those tires on the 200 million cars and trucks driving the roads these days, and that could add up.

For The Environment Report, I’m Mark Brush.

Related Links

No Cars Left for Cash for Clunkers

  • Dealers across the country are running out of new cars to sell that qualify for the program. (Photo source: IFCAR at Wikimedia Commons)

Two billion dollars is being added to
the very popular Cash for Clunkers
program. The original one billion dollars
is almost gone. But, Lester Graham
reports, there’s a shortage of new cars
that qualify for the program:

Transcript

Two billion dollars is being added to
the very popular Cash for Clunkers
program. The original one billion dollars
is almost gone. But, Lester Graham
reports, there’s a shortage of new cars
that qualify for the program:

The National Automobile Dealers Association says they’ve been hearing from dealers across the country who’ve been running out of new cars that qualify for the program.

Steve Demers is the General Manager of Cueter Chrysler Jeep Dodge in Ypsilanti, Michigan, a state where Cash for clunkers has been especially popular.

“There’s virtually no vehicles available, so there are other areas in the country that may not be as – the program has not been as popular – so we’re able to pluck some of that inventory out of their states, but it’s a nation-wide problem. I mean, we’re out many, many states away, thousands of miles before we can find a vehicle that can be brought in for one of our custormers.”

Factories are shipping more cars to the dealers but can’t keep up with demand.

185,000 gas-guzzling clunkers have been turned in to be scrapped in exchange for the government incentives.

Car buyers get up to 4,500 dollars toward buying a new fuel-efficient model.

For The Environment Report, I’m Lester Graham.

Related Links

Turbulent Fuel Prices Hit Airlines Hard

  • Airlines say that there needs to be more regulation on oil speculators. (Photo courtesy of NASA)

Recent swings in the price of
crude oil are leading to more
trouble for the US airline
industry. Rebecca Williams
reports:

Transcript

Recent swings in the price of
crude oil are leading to more
trouble for the US airline
industry. Rebecca Williams
reports:

Even though oil futures are trading for half of what they were last summer, the airlines are not happy.

David Castelveter is with the Air Transport Association. He says wild price swings for oil make it tough for the industry to plan ahead.

“They hedge their fuel purchases when the price is high at a lower rate and if the price of fuel goes low then they’re hedged in at higher rates and it costs them money.”

Airlines would like to raise ticket prices, but, with the recession, they’re worried no one will buy them.

So instead, they’re trying to cut back on how much fuel they use. Airlines are retrofitting planes with winglets that cut fuel consumption.

But that takes money and time. So in the meantime, they’re also cutting jobs and routes.

The industry’s putting pressure on Congress to force more transparency in the oil futures trading market.

They’re hoping more regulation on oil speculators would mean fewer price swings.

For The Environment Report, I’m Rebecca Williams.

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Energy Bill to Include Boost for Biomass?

  • Biomass is catch-all term for technology that turns things like wood chips into energy or heat. (Photo by Susan Mittleman)

Congress could wrap up a huge energy bill by this fall.
It could include a minimum renewable energy standard for
utilities. That’d mean more wind and solar-generated power.
Shawn Allee reports biomass could get a boost, too:

Transcript

Congress could wrap up a huge energy bill by this fall.
It could include a minimum renewable energy standard for
utilities. That’d mean more wind and solar-generated power.
Shawn Allee reports biomass could get a boost, too:

Biomass is catch-all term for technology that turns grass, wood chips, or even algae into energy or heat.

It’s usually ignored in political discussions, but Vermont Senator Bernie Sanders brought it up in a recent hearing.

He says he was inspired by a power plant he saw at Middlebury College.

“I went to a plant they have on campus which is using wood chips replacing oil they are saving $700,000 a year and creating local jobs and cutting greenhouse gas emissions.”

Congress is considering what kind of plants and agricultural waste might qualify as “renewable biomass energy.”

Some energy analysts say some plants shouldn’t be included, since it could take too much energy collect and transport them.

For The Environment Report, I’m Shawn Allee.

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Bumpy Road Ahead for Hydrogen Cars

  • Sysco - a major food distributor - is part of a year-long government funded project. They're running seventeen of their forklifts using hydrogen powered fuel cells. (Photo by Mark Brush)

Six years ago, President Bush proposed to end our addiction to oil by building a hydrogen
economy. At the time, driving a hydrogen powered car didn’t seem that far off. But today, the
reality of mass produced hydrogen powered cars has hit some bumps in the road. Mark Brush
looks at the challenges ahead:

Transcript

Six years ago, President Bush proposed to end our addiction to oil by building a hydrogen
economy. At the time, driving a hydrogen powered car didn’t seem that far off. But today, the
reality of mass produced hydrogen powered cars has hit some bumps in the road. Mark Brush
looks at the challenges ahead:

It’s all about the fuel cell. The cell converts hydrogen gas into electricity that can power up a
motor. And when that’s done – the only thing that comes out of the tail pipe is crystal, clean
water.

So there’s a lot of enthusiasm to build hydrogen powered cars. If you live in Southern California,
you can drive a hydrogen powered car right now.

(sound of a hydrogen car commercial)

But you can’t buy this car. You can only lease it. And you have to have a pretty good map.
There are only 2 places where you can fill the car up with hydrogen.

And that highlights just one of the challenges facing the hydrogen car right now. There’s no
infrastructure – no network of gas stations – to support it.

Steven Chu heads up the Obama Administration’s Department of Energy.

“It’s an infrastructure that is as extensive as the infrastructure for gasoline and diesel. And that
doesn’t come overnight.”

Chu wants to eliminate all the research money for hydrogen powered cars and trucks. He says
there are too many big problems to solve. There’s the infrastructure problem. Fuel cells are
expensive. The cheapest way to make hydrogen right now releases pollution. And there are
problems with storing the gas.

In an interview with MIT’s Technology Review, Energy Secretary Chu referred to these problems
as the four miracles. And that didn’t go over too well with some people.

“A miracle? Really? How many miracles have you seen? I’m not sure I’ve seen a real miracle in
my life.”

Levi Thompson directs the Hydrogen Energy Technology Laboratory at the University of
Michigan.

He says talking about these problems as miracles sends the wrong message. He admits, there
are some big puzzles to solve. But he’s convinced scientists can solve them.

“If you believe this is the savior, that this is going to transform the way we do things, I think you
have a responsibility to invest – even though that you see that it’s far behind.”

Thompson says the ultimate goal for a hydrogen economy is to get the hydrogen from water
using electricity from renewable resources like wind, solar, and hydro-power. So you get the
clean burning gas you’re looking for.

It can be done today, but it’s expensive. Thompson thinks it’ll get cheaper as alternative sources
of electricity become more widespread.

The Energy Department doesn’t want to give up on hydrogen research altogether. Secretary Chu
says fuel cells do make sense on a small scale – like to power fork lifts in a warehouse.

(sound of a warehouse and forklift)

Here at this Sysco warehouse in Grand Rapids, Michigan, a mini hydrogen experiment is
underway.

Sysco is a major food distributor. This warehouse is part of a year-long government funded
project. They’re running seventeen of their forklifts using hydrogen powered fuel cells made by a
company called Plug Power.

Darin VanDuyn is with Sysco. He says, mostly, they’ve had a good experience with these fuel
cells.

“We’ve had about 80 hours of lost time due to repair – minor failures, things like that – but nothing
major has disrupted their operation.”

VanDuyn says the company hasn’t decided yet whether they’ll move forward with the fuel cell
program. But policy makers say real-world experiments like these move us closer to mass
produced hydrogen vehicles.

Even though the Obama Administration wants to cut funding for hydrogen powered cars and
trucks, Congress holds the purse – and has the final say. So far, it looks like Congress will
continue to fully fund the research.

Automakers say the ups and downs of federal funding don’t affect their plans. Several
companies say they’ll start selling hydrogen powered cars in 6 to 8 years – and they’ll let the
market decide the fate of the hydrogen economy.

For The Environment Report, I’m Mark Brush.

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From the Trees to the Tank

  • Chuck Leavell plays keyboards for the Rolling Stones. But he also owns a plantation outside of Macon, Georgia, with 2500 acres of pine trees. (Photo by Susan Mittleman)

Finding alternative fuel sources in our country involves looking at what nature has to
offer. In the West, they’re harnessing wind and solar energy. In the Heartland, it’s sweet
crops like corn. Susan Mittleman reports, in the South, they’re looking to their forests to
make cleaner, greener fuels:

Transcript

Finding alternative fuel sources in our country involves looking at what nature has to
offer. In the West, they’re harnessing wind and solar energy. In the Heartland, it’s sweet
crops like corn. Susan Mittleman reports, in the South, they’re looking to their forests to
make cleaner, greener fuels:

Chuck Leavell plays keyboards for the Rolling Stones. But when he’s not on the road, he
spends his time on his plantation outside of Macon, Georgia, tending to some 2500 acres
of pine trees.

“This is our tree farm here.”

From this tranquil refuge of nature and wildlife, he sees these trees as a possible way to
reduce our dependency on foreign oil.

“The fact that we have such wonderful resources, our forest, and that we are
looking for new markets, gives us a lot of hope to be able to use our trees to make
energy products, whether its electricity or gasification processes or any matter of
liquid fuels.”

Cutting down trees and turning them into fuels might not seem like the greenest thing to
do.

But people like Jill Stuckey, insist it is.

Stuckey heads Georgia’s Innovative Center for Energy, and says there’s no better source
for clean fuel here, than the state’s 24-million acres of forest land.

“We grow pine trees like Iowa grows corn. And it’s a renewable source of energy.”

Stuckey says trees grow faster and are more accessible in Georgia than any place else in
the country.

“It’s a good thing. Because trees sequester carbon. And we harvest these trees and
plant new trees, so we’re continuously replenishing our supply.”

She says an acre of pine trees can yield about seven tons of biomass per year.

Biomass is basically any living thing that grows and then can be harvested.
And that stuff can be used to make ethanol, electricity, and bio-diesel.

(sound of a factory)

At a small factory down in Albany Georgia, that’s what John Tharpe is making here.

Tharpe is semi- retired electrical engineer, and has designed a machine that converts
pine-tree chips into bio-diesel. The fuel can be burned to power and heat homes and
businesses.

“We’re using biomass. We make an oil and a char and then we are also looking now
at making electrical energy. You can use it in any commercial burner, such as
steam, boilers, those types of things.”

He’s already begun selling his biodiesel technology to people around the world.

So, Tharpe is making for electricity and heat. Other companies are making plans to use
trees to run our cars.

Range Fuels is building the ‘first-of-its kind’ bio-fuels plant in Soperton Georgia – which
will convert wood chips into green transportation fuels, things like ethanol and methanol.

Ron Barmore is the company’s project development director.
He says their facility is designed to produce upward of 100-million gallons of fuel a year.

“Our belief is that we’ll be able to compete with fossil fuels, with oil prices in the 70-
80 dollar a barrel range. We think long term that’s a viable place to be.”

And long-term sustainability is what tree farmers and environmentalists like Chuck
Leavell are looking for, not just for green energy, but for other reasons as well.

“These trees, in the period we plant them and their growing, they’re cleaning our
air, our water, providing home and shelter for wildlife, that helps everyone.”

More than 100 companies are looking at ways to use Georgia’s trees, in some form or
another, to produce greener, cleaner energy.

For The Environment Report, I’m Susan Mittleman.

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