At the Advanced Biofuels Development Summit, Rick Gilmore, President of GIC Group indicated that with the prospect of cap and trade, biofuels offer a cost-competitive business model to petroleum based fuels.
He also pointed out that the conventional wisdom on ethanol prices is that margins are lock-step in line with oil prices. Instead, he indicated that this view fails to take into account those inputs and demand factors which are much more deterministic.
Gilmore said, “For carbon credits to be internalized in biofuel prices, they need to be valuated in the market. Our ag carbon credit index, GICACI, is a market sensitive price discovery mechanism for the composite of ag industries.” Gilmore continued, “We need to avoid the hype and offer a truth test on these credits. GICACI will do just that and minimize risk for the ag sector.”
GIC is an integrated agribusiness company, providing consulting, trusteeship, and financial services.
Contact Information:
Rick Gilmore, GIC Group
rickgilmore@gicgroup.com
Dawson Williams, GIC Group
dawsonwilliams@gicgroup.com
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