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.Log in to post comments