Time for biofuels to go BIG?

The McKinsey quarterly has an article about biofuels arguing that it is time to invest now and not wait. The reason is that the market prospects looks good and at this time, land and resources are at a premium. There is a lot of concern about the risk that a more frequent use of biofuel is in conflict with  other essential interests: first and foremost, the production of food.

It seems as if the authors have thought this through both in terms of availability of land, and in production technology (moving to the second generation cellulosic technology) and considering that food should have priority. The claim is that biofuel with these restrictions could supply 50% of the transportation and be cost-efficient at an oil-price of 70 $/barrel.

It seems, however, as if the authors have stopped with ethanol as the preferred fuel and do not consider further development, shifting to use of methanol or DME that could provide advantages from a fuel-efficiency perspective.

Comments

Uday Pasricha's picture

we have noted the affect bio fuels are having on agricultural crop source and in agrarian economies there is likely to be disruption if one assumes cyclical crop failures. We see no discussion or mention of fuel emulsions using 'conditoned water". HAs this technology been written off everyone?
We have been monitoring a japanese pilot plant with 15% emulsion working quite efficiently for fleets, direct burn and agricultural tractors etc. because of negligible experience based articles on the net we have been very cautious and advised clients to get a small pilot unit for testing despite seeing the technology in operation for last one year in japan.Perhaps someone could enlighten us as to what is happening on this subject in Europe? it is very clear that this is an end user technology and it is for that reason that there is zero interest of any fuel company to develop or recommend this. We feel that bio fuel is sustainable only if it is based on process waste. Using agricultural product like sugar or corn will create price pressure which would create problems in a developing country with poor persons dependant on agriculture for self sustenance.

By Uday Pasricha 26/06/2007
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