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The regulation requires producers, refiners and importers of gasoline and diesel to reduce the carbon intensity of their fuel by 10% over the next decade. And it launches the state on an ambitious path toward ratcheting down its overall heat-trapping emissions by 80% by mid-century — a level that scientists deem necessary to avoid drastic global climate disruption.
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The regulation also is a positive step for entrepreneurs who are looking for new opportunities in alternative fuels. California will soon have its first cellulosic ethanol plant in Southern California's upper desert. The facility will process 170 tons of garbage a day to produce 3.7 million gallons of ethanol a year. Estimated cost per gallon: about $2, according to Arnold Klann of BlueFire Ethanol Fuels.
"California's low-carbon fuel standard is going to set the standard for the U.S. and, I expect, the standard globally," said Graeme S.S. Sweeney, a Shell executive vice president. "There will be a series of commercial-sized plants in the next five years. There will be different technologies. It will be good to see competition."
And that coming from one of the major energy/oil companies! I've always said that for energy companies to fully embrace a paradigm shift to alternative fuels, they will need to see the commercial advantage in it. Apparently, they are getting the message . . . and planet Earth should be the better for it.
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