Advanced biofuels: Economic uncertainties, policy options, and land use impacts

Abstract

Second generation or cellulosic biofuels have potential to become a reliable source of renewable fuel. In this chapter we describe five major uncertainties that currently inhibit the development of these biofuels: (1) future oil prices, (2) feedstock availability and cost, (3) conversion technology efficiency and cost, (4) environmental impacts, and (5) government policy. In each of these areas, there are significant issues that impede development and commercialization of the second generation biofuels industry. However, all of these uncertainties could be managed if society were willing to pay the higher cost of cellulosic biofuels.