Most agree that our insatiable thirst for oil makes us economically and politically vulnerable, because so much of the world’s oil is controlled by nations who are or might likely become our political and economic rivals. And most have come to the conclusion that overdependence on fossil fuels has led to a gradual yet significant warming of the earth’s atmosphere, which, if unabated, will likely have disastrous effects. All agree that alternative sources of fuel and energy must be developed. That represents a major opportunity for Missouri and Kansas—an opportunity they are well-positioned to exploit.

Missouri and Kansas have abundant natural resources that put them at the forefront of emerging alternative energy industries, the most important being corn used to produce ethanol and soy beans used to produce bio-diesel.

For decades, the not-so-funny joke circulating among alternative energy researchers and entrepreneurs has been that ethanol is the fuel of the future, and always will be.

Ethanol has always been the recipient of enthusiastic bipartisan political support, given the importance of corn in rural states—both blue and red. Now it seems as if geopolitical and ecological realities have intersected to increase demand. Ethanol industry trade associations say that the U.S. ethanol industry is the fastest growing energy industry in the world.

This time last year there were 101 ethanol plants operating nationwide, with a capacity of 4.8 billion gallons annually. Seven of these plants are in the process of expanding their operations and 39 additional bio-refineries are under construction or have just become operational; adding more than 2.5 billion gallons of capacity.

Nine of these plants operate in Kansas, with an annual capacity of over 270.5 million gallons. Some estimates are that ethanol production in Kansas could quadruple in the next two to three years.

Current Kansas production creates a market for over 96 mil-lion bushels of sorghum and corn. Historically, more ethanol is made in Kansas with grain sorghum than with corn. The two grains are interchangeable in the ethanol-making process.

Four of the country’s ethanol production plants are located in Missouri, with a yearly capacity of 181 million gallons.

Ethanol is blended in 40 percent of the nation’s gasoline supply. Ethanol based automotive fuel is available in two primary forms; E10 and E85. E10 is a blend of 90 percent regular unleaded gasoline and ten percent ethanol. All cars made since the 1970s are capable of using E10. E85 is fifteen percent gasoline and 85 percent ethanol. Ford, GM, Chrysler, Nissan, and Mercedes produce vehicles capable of burning E85. There are currently about 6 million such vehicles are on the road today. E85 is available at about 500 gas stations across the country. There are 21 of these stations in Kansas, 28 in Missouri.

According to the U.S. Department of Agriculture, the use of 4 billion gallons of ethanol in 2005 reduced greenhouse gas emissions equivalent to taking 1.2 million cars off American roads.

Among the more promising developments in the regional ethanol industry is the announcement last month that the Spanish bio-energy giant, Abengoa, is building a biomass refinery in Hugoton, Kansas. Though the refinery will produce ethanol, the production process does not rely solely on corn as its raw material. The Abengoa facility will instead convert 930 tons per day of cellulosic crop residue from plants, including switch grass, corn stover, milo and wheat straw. The plant also will produce another 88 million gallons of ethanol (annually) from traditional grain sources (corn and sorghum). Cellulose ethanol requires far less water in the production process, making it a more efficient and ecologically responsible method. The Hugoton plant is expected to create 125 new jobs and a $5.5 million annual payroll.

Another important development in the local alternative energy industry is the construction of a soybean processing facility in Kansas City by the Minneapolis-based agribusiness and food-processing giant Cargill. The plant which is being built southeast of Interstate 35 and Front Street will include a 40 million-gallon bio-diesel plant to be operated by Paseo Cargill Energy LLC. Also investing in the $45 million project is the Missouri Soybean Association.

Then, there’s the seems-to-good-to-be-true operation in Carthage, Missouri. In the way Rumpelstiltskin was able to spin straw into gold, a company with the hopeful name Changing World Technologies is pioneering a process called thermal conversion to spin virtually anything into black gold—oil. By using a combination of ultra-high temperatures, extreme high pressure, and high speed centrifuges, this technology breaks down (de-polymerizes) the molecular structure of materials as diverse as turkey guts (from the Carthage-based Butterball plant), pig fat, scrap car parts, plastics, and building materials, extracting a light oil of the quality used to fuel electric power generating plants. The beauty of this process is that it results in no harmful emissions, and the material left over when the process is complete is non-toxic, and may often be used in fertilizers and other products. Changing World Technologies is partnering with ConAgra, the Big Three domestic automakers, and the American Plastics Council to test, and test market the process in the U.S. and abroad. The technology is not experimental, however. It is proven and viable now, and will be profitable as economies of scale are achieved.

The Answer, My Friend…

In addition to corn, sorghum, soybeans, and turkey guts, the two-state region enjoys an abundance of another valuable resource that may be harvested as a source of alternative energy—wind.

Of all current electricity generating technologies, wind power has the greatest energy profit ratio,—in those areas with Class 5 winds—and the lowest CO2 emission levels. This makes it a near ideal source of energy as consumers and corporations seek ways to reduce global warming.

The National Renewable Energy Laboratory ranks Kansas third among the 50 states with average winds capable of generating 1,070 billion kWh of electricity per year. North Dakota, Texas, and Kansas are ranked together as having the best potential for development of wind-generated electricity.

Currently Kansas has 364 MW of installed wind capacity. Kansas’ governor, Kathleen Sebelius has established the goal of 1000 MW of installed wind capacity by the year 2015. This additional capacity will not, however, result in an immediate reduction in utility costs. It will, in fact, in the short term, increase costs. Initial development of additional wind capacity is capital intensive. However, the long term cost/ benefit ratio, which factors in reduced dependence on fossil fuels; lower emissions of greenhouse gases and pollutants; and the lower costs and increased efficiencies over time of using renewable energy sources, appears to justify continued investment in the development of wind capacity.