The Oil Drum has a discussion by Robert Rapier, debunking Vinod Khosla’s assertions. “Khosla says that ethanol is significantly cheaper to produce than gasoline, that Brazil has shown us the way, that there are significant carbon emission reductions, and oh, by the way, it has an energy balance twice as good as petroleum. Yet despite all of those supposed advantages, he is requesting legislation and funding an initiative in California, in order to level the playing field. Who is he kidding? Khosla is trying to hedge his bets. He invests in ethanol producers, and then tries to influence legislation to help out those producers. Yet with all of those claimed advantages, if Khosla believes what he is saying he should spend less time lobbying, and more time building his own cellulosic ethanol plants and E85 pumps. One wonders why he doesnt. Seriously, if you had a product that is as good as claimed, would you spend any time lobbying for even more advantages? No, unless the product really isnt as good as advertised.”
Also read the follow-on post about a conversation between Rapier and Khosla.