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Coal’s got a bad rap. The chunky black rock conjures images of smoke stacks bellowing noxious fumes into the atmosphere. Corn-based ethanol, though, has some very green connotations. Interesting then that recent studies suggest the bio-fuel is more trouble than it’s worth. As a recent Time article pointed out, clearing entire forests to make way for cornfields does more to accelerate global warming than the alternative fuel does to curb it.
Arch Coal [ACI Loading... ()
] CEO Steven Leer, speaking to Cramer via satellite for Wednesday’s show, offered another argument against ethanol: The entire state of Ohio would have to be planted with corn to match the energy he gets from just one of his one-square-mile mines in Wyoming. And Arch’s coal is “very naturally low in sulfur,” the CEO said, “so it is a cleaner-burning coal,” possibly making it a viable alternative to the alternative ethanol was supposed to be.
Cramer raised the issue of whether the Democrats, a party unfriendly to coal, would pose a threat to Arch’s business should they take the White House in November, but Leer answered with an emphatic no. “It would be impossible for the U.S. to stop using coal – or the world to stop using coal,” he said, especially with such high demand from China.
Arch Coal’s a buy, Cramer said. “I think that you’re the way out for energy independence,” he told Leer.
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