Daniel Englander

The Morning Feedstock April 23, 2008 at 8:02 AM

British Prime Minister Gordon Brown said yesterday he would reconsider the UK’s biofuels policy. Speaking ahead of a summit on the worsening global food crisis - dubbed a “silent tsunami” by the World Food Program - Browne told reporters “we need to look closely at the impact on food prices and the environment of different production methods and to ensure we are more selective in our support.” Though estimates of biofuel’s impact on world fuel supply vary, concern with their effect is not new. The IMF warned that biofuels could drive up food prices as far back as October 2007. To offset the effect of the UK’s biofuels program, Brown yesterday offered a £455 million aid package, though roughly £400 million was earmarked for agricultural research.

But when the biofuels dry up, who will be left with the keys to the transportation candy shop? Certainly not GM, says the WSJ op-ed page. Holman Jenkins throws this one out there: “The Volt will lose money - and it’s hard to see why a reformed GM would bother building such a car now unless it’s planning to throw its lobbying clout behind a final set of CAFE rules designed to disadvantage its rivals.” The argument here is that GM may be willing to take a big loss on the Volt, as long as that loss is coupled with including the Volt in fleet-centric CAFE standards, which would allow GM to pump out high-margin SUVs and pick-ups with impunity. That is, if the Volt ever learns to ride without training wheels.

FPL Energy has acquired Canada’s largest wind farm for more than $121 million. Creststreet Power made the decision over the weekend, citing the Canadian government’s decision to begin taxing income trusts at the same rates as corporations. FPL Energy will gain control over the 54 MW Mount Copper farm in Nova Scotia and the 30.6 MW Point Wind farm in Quebec. The acquisition will boost FPL’s wind portfolio, which, at slightly more than 5 GW, represents 33 percent of the company’s total generation capacity. It currently operates 55 separate wind farms in 15 states and provinces.

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