From Virgin Records Mogul to environmental emissary, Richard Branson, is just trying to live up to his honor of the United Nations 2007 Citizen of the Year. Mr. Branson has made this clear by commenting, “I have to make sure I’m a worthy recipient.”
Mr. Branson works with Boeing and GE in efforts to show a jet can fly on alternative fuel. One possibility is butanol, he says, because “it is about 20% more powerful than ethanol, and doesn’t freeze at 15,000 feet, which would be unfortunate for an airplane.”
In Europe, Mr. Branson has a biofuel train already running and has the belief that the new environmental technologies needed are smart in conjunction with being just good business. With that said, he also does not expect green transportation to thrive by his own pocket book or his customers. “I think the trick with clean energy is not to be able to charge more. Because you can’t see global warming, I don’t think people are willing to pay more for it. It’s got to be a viable investment if it’s going to be successful.”
Mr. Branson is committed to the need for alternative energy not only for environmental purposes, but also for investment strategy. He is aiming to make his home 100% carbon neutral within six months time, just by using the wind and the sun. “It will save us half a million dollars a year in conventional fuel as well.” With the price of oil topping $100 a barrel, Branson comments, “Fuel prices have come to the level where, forgetting the environment, it makes sense for people to look at alternative things.”
The Virgin Green Fund, one of Branson’s latest endeavors, has committed $100 million to direct investment in alternative energy. With this undertaking, he is being considered in the same company with big environmental investors as legendary Silicon Valley venture capitalist John Doerr, and former Vice President Al Gore. Sugar based ethanol is what Branson supports over oil. He stated, “Cars in America once ran on ethanol, and liquor prohibition was part of the reason for the shift to gasoline. Officials at the time were worried that people were going to drink their fuel tanks.”
He does not share the push by America for corn-based ethanol, though. Branson believes America’s support for corn-based ethanol is politically driven as an excuse for U.S. tariffs. These tariffs block out sugar cane ethanol from Brazil and other southern hemisphere producers. He commented, “Sugar-based ethanol is seven times more efficient than corn-based ethanol, so every acre of land can create seven times the volume of fuel.”
One Company, Stratos Renewables Corp (SRNW.OB) is already focused on being a leader in sugar ethanol production. Stratos Renewables Corp is a producer of sugar-based ethanol for quite a few reasons: it’s cheaper and it’s cleaner. Sugar-based ethanol is cheaper to produce than corn based ethanol and obviously retails for cheaper than crude oil. The emission of 80% less net greenhouse gases than gasoline fortunately provides a far cleaner environment. Although corn based ethanol is more energy efficient than gasoline, sugar based ethanol production is more simple and efficient in comparison to the conversion of corn into ethanol. The corn requires extra cooking and enzyme applications that sugar does not.
For investors, the sugarcane ethanol market is a growing segment of the renewable fuel industry. Stratos Renewables Corp (SRNW.OB) is in great position to grow at a rapid pace because of this growing market. As of January 7, 2008, Stratos Renewables Corp stock was at $1.75, which was up $0.15 (9.38%) and the most recent bid is $1.60 and the most recent ask is $1.80.
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