Comments Vinod Khosla has made

  • My thoughts

    Some of you have raised some legitimate questions, which I wanted to try
    and answer here:

    - Brazilian Ethanol: I tend to agree that Brazilian, sugar-based ethanol
    has significant advantages over corn ethanol, and I support eliminating
    the tariff on it. However, I don't believe its a solution by itself. It
    is a starting point but we need more land efficiency or more gallons of
    fuel produced per acre (ideally more miles driven per acre with fuels
    beyond ethanol) and cellulosic can do that much better than food crops.

    - Cover Crops: One can leave enough of a cover to avoid top soil loss,
    and one leaves the root system in the soil where the microbial
    communities are. One also prevents nitrogen runoff into our streams and
    leaves it in the soil for the next summer food crop. This approach
    leaves some of the extra carbon captured as CO2 by the cover crop in the
    soil and takes some for fuel as biomass, still far better than what is
    done today - which leaves the soil barren and results in nitrogen and
    top soil loss. One can mix in legumes to fix additional nitrogen in the
    soil as biomass crops for fuel don't need a "pure" crop so polyculture
    cover crops would do just fine. One can in this scheme reduce the amount
    of nitrogen during the summer crop cycle (and reduce nitrous oxide)
    while harvesting biomass.

    - Transporting Biomass / Effect on Food Prices, If you look at our
    papers, we've consistently advocated for local plants - in fact, I've
    specifically noted that feedstock transportation beyond a 50-100 mile
    range is not economically realistic. Infrastructure means a lot more
    than old ethanol plants. Its pumping stations, storage facilities all
    over the country for distribution and blending of ethanol which now
    exist, and most of all flex-fuel cars. The cellulosic ethanol produced
    in Georgia or Florida or Washington or New England or Canada will share
    much of this. Winter cover crops in places like Texas , Maryland,
    Alabama, and North Caroline will be part of the mix along with waste
    wood form forest operations in Washington or the North east.

    As for the idea that displacing corn is going to increase food prices
    significantly,  we've had many different versions of this complaint;
    firstly, the argument was that corn ethanol is responsible for high food
    prices (USDA Chief Economist Joe Glauber noted that "On the
    international level, the President's Council of Economic Advisors
    estimates that only 3 percent of the more than 40 percent increase we
    have seen in world food prices this year is due to the increased demand
    on corn for ethanol."  The USDA also noted previously: "Given that foods
    using corn as an ingredient make up less than a third of retail food
    spending, overall retail food prices would rise less than 1 percentage
    point per year above the normal rate of food price inflation when corn
    prices increase by 50 percent."), and now you're suggesting that
    removing this corn is going to raise food prices? Moreover, look at the
    impact biofuels have had on our energy costs already - "According to the
    International Energy Agency, the biofuels production that has been
    available to the United States and European markets over the last three
    years has cut the consumption of crude oil by one million barrels a day.
    At today's prices, that's a savings of more than $120 million per day."

    - All biofuels are bad:  Some biofuels are awful, yes but painting them
    all with a broad brush is just illogical. Study after study has shown
    the environmental benefits of cellulosic biofuels, from NREL to the DOE
    to multiple university studies. As to the idea of consuming less energy
    - sure, but are we magically going to get people to stop driving, or
    turn off their cars? There is a difference between blue sky, achieve
    nothing idealist and pragmentalists (I consider myself one). Efficiency
    is certainly a part of the solution (and we have over 15 investments in
    efficiency of every type form lighting to engines to appliances), but
    its not the solution by itself. We can't change consumer preferences by
    lecturing at them - you have to provide people with alternatives they
    want while trying to influence their "wants" by education (not rants!).

    - Other fuels: butanol, other cellulosic fuels, and biodiesel: For what
    its worth, we have invested in companies that are attempting to jump
    start ethanol, and go to butanol or other future fuels (Gevo, Amyris,
    LS9, Kior, to name a few). I've also said before that  RFS shouldn't
    designate a winner (ie, one particular cellulosic fuels)- rather, it
    ought to suggest that fuels that can meet the required "full life cycle"
    environmental thresholds be eligible. That leaves the job of picking the
    best technology to the market. We also have many investments (Transonic,
    Ecomotors, Tula for engines and Seeo, Firefly and others in batteries)
    attempting to cut oil consumption in half through better efficiency.
    Biodiesel is a great idea made from cellulosic feedstocks but food crop
    based biodiesel is the wrong thing and will not achieve either cost
    effectiveness (ability to compete without subsides) or land efficiency
    (gallons of gasoline equivalent per acre). Jatropha and algae may go
    part way their but unlikely they will be as cheap as cellulosic fuels.

    Criticism of biofuels is certainly fair game, and I think its important
    to have these debates, but I see biofuels (done right) as the best and
    only realistic, scalable solution in the near future.

    regards,
    Vinod
    On Not all biofuels are the same; we can do biofuel well or poorly posted 1 year, 5 months ago 27 Responses

  • Response to A. Siegel

    Assuming a Corrolla at $14.4K + $5,000 (for a "hybrid premium) and getting 40MPG.

    2010 Gasoline: 273 grams per mile, $464 per month
    2017 Gasoline: 273 grams per mile, $464 per month
    2017 gasoline - 50% efficiency increase in ICE: 182 grams per mile, $439 per month

    By the way, changing the coal powered grid to renewable is atleast 30-50 years even if we were all willing to pay more for electricity. See "the future" in Part III tomorrow.
    And no, I don't respond to people who think all consumers should be made to spend all their money of inefficiency or drive Nano's. I don't have any idea how to change consumer behavior except through policy and I do favor much higher CAFE standards, high carbon prices, and public transportation if we could get people to use it. I suspect the grams of carbon per mile on the underutilized San Jose, Ca public transit system is also very high! Anybody calculate total public transit passenger miles divided by their carbon emissions? On Hybrid emissions: Facts and numbers posted 1 year, 10 months ago 34 Responses

  • Biomass, Soil Carbon, Biodiversity, Land and more

    To see my answers on the question "Where will biomass come from" and "what will it do to water, biodiversity and soil carbon" please come back next week. We will propose ways to improve biodiversity, reduce fertilizer input (when growing row crops in rotation with biomass crops), actually increase soil carbon content on strictly rainfed crops. Range and Coskata have already reduced water use to 75% below that of corn ethanol. The four criteria for a good fuel are "CLAW"
    C- cost below gasoline
    L- low to no land use; use of degraded lands to restore their biodiversity and carbon/microorganism ecosystem.
    A- Air quality or carbon emissions
    W- Water use

    Hope fully I can answer all three next week in a three part series.On Hybrid emissions: Facts and numbers posted 1 year, 10 months ago 34 Responses

  • Numbers Matter Here: Support your statements

    First, bloggers jump the gun without understanding the details of what one is saying. My paper on Biofuels Pathways (www.khoslaventures.com/resources.html ) explaisn the details.  The key question is how many people will pay $5000 more for a basic hybrid car that reduces carbon emissions by 25% (about the same as corn ethanol by the way) versus a flex-fuel car that costs no more and can reduce emissions by 75% or more when run on cellulosic biofuels? A plug-in hybrid would cost $15000 more for the average buy and may reduce carbon emissions by a larger percentage today depending upon the location and source of your electricity (how much fossil fuel is used in your power grid). That might reach 100% reduction when we have all renewable power in a  region and all cars are fully plug-in, but when might that happen? Even if we could get 50% of the cars in the US to be hybrids, reducing emissions by an immaterial 10-15%, could we get people in India and China, the fastest growing car markets, to ante up this much additional money when the biggest thrust in volume cars in India is to reduce the cost of the whole car to $2500? When can we get enough cars on the road? Battery costs will decline and performance increase but once one gets inside the technology one understands that the upside with known chemistries is limited to maybe 2-4x change in cost/performance - not nearly enough to change the hybrid or plug-in hybrid cost dynamic. Having said that we are investing in batteries to try and enable breakthroughs that might change this. Other technologists are doing the same but the outcomes look very uncertain. We will need 50-80% of the car buyers to pay for these new technology automobiles to make a material difference. When will that happen and at what cost point in the US? In the world? Add 10-15 years after new car sales to reach these percentages and you have a "low carbon fleet"! long term I still believe we can reach this laudable goals but probably not in the next decade or even two! On Venture-capital star ain't no clean-tech expert posted 1 year, 11 months ago 54 Responses