Biofuels

Volatile energy prices, growing political instability in oil producing regions of the world and an increased concern about the environmental impacts of fossil fuel consumption have combined to raise American concerns about the nation’s future energy security.  These concerns have spurred strong interest in developing biofuels (e.g., biodiesel, biobutanol, ethanol) as a complement, and potentially a successor, to petroleum-based fuels.  With their ability to use feedstocks from the nation’s farmlands and forests and low CO₂ outputs, agricultural and cellulosic biofuels have the potential to emerge in the next decade as a major transportation fuel source.

Congress and the Administration are particularly focused on promoting policies that spur rapid development of a domestic biofuel industry.  The Bush Administration has established a goal of reducing America’s consumption of gasoline by twenty percent over the next decade.  Congress is considering a wide range of policies that will increase the production – and consumption – of renewable fuels.  Federal agricultural, energy, environment, tax and trade policy will all focus increasingly on promoting this promising new industry.

How will traditional energy and fuels companies adapt to this new market?

What new laws and policies will emerge that will dictate the success - or failure - of biofuels ventures?

What feedstocks are the most viable?

How will the product be distributed and sold given the limitations of the current storage and pipeline infrastructure?