Will Timber companies profit from future ethanol production?

Question

I have recently read articles about future production of Ethanol using trees...

Answer 1

Ethanol seems to be a quick appearance of a fix that really isn't over the long term.  It takes too much energy to produce it.  I'd be lookikng more toward alternative energy sources.  Electric cars are coming out from all over.  Solar is showing signs of making breakthroughs.  Wind power is going up all over.  I thnk that's where the next boom is goiing to happen.

Answer 2

Biofuels that are not food based have a greater chance of gaining long-term traction than those that use grains and sugar. However, nuclear, clean coal technology, wind, geothermal, and solar all are possibilities with greater promise than ethanol. Right now, Ethanol is being supported with govt subsidies. When the subsidies dry up, expect to see the sector decline. Some new plants that were supposed to be built have now been cancelled. Ethanol uses a lot of energy to make energy. Having said all of that, there are some good timber companies out there. ( I like Deltic Timber, but I don't own it. Not only do they have a profitable Timber company, they own vasts amount of raw land with plenty of natural gas and shale--so they have some great assets.)

If you invest in one that has a good business already, that makes sense-- but not  necessarily if the primary reason is because of the possibility of expanded ethanol capacity--That sounds pretty risky. Only you know your risk tolerance. Best of luck investing!