Alternative Energy : Biofuels

Biofuels are produced by converting organic matter into fuel for powering our society. These biofuels are an alternative energy source to the fossil fuels that we currently depend upon. The biofuels umbrella includes under its aegis ethanol and derivatives of plants such as sugar cane, as well aS vegetable and corn oils. The International Energy Agency (IEA) tells us that ethanol could comprise up to 10 percent of the world's usable gasoline by 2025, and up to 30 percent by 2050. A study by Oregon State University proves this. We have yet to develop biofuels that are as energy efficient as gasoline made from petroleum.

Energy efficiency is the measure of how much usable energy for our needed purposes is derived from a certain amount of input energy. What has always been important is the conversion—the end-product energy is what is useful for our needs, while the input energy is just the effort it takes to produce the end-product.) The OSU study found corn-derived ethanol to be only 20% energy efficient (gasoline made from petroleum is 75% energy efficient). Biodiesel fuel was recorded at 69% energy efficiency. However, the study did turn up one positive: cellulose-derived ethanol was charted at 85% efficiency, which is even higher than that of the fantastically efficient nuclear energy.

Recently, oil futures have been down on the New York Stock Exchange, as analysts from several different countries are predicting a surge in biofuel availability which would offset the value of oil, dropping crude oil prices on the international market to $40 per barrel or thereabouts. The Chicago Stock Exchange has a grain futures market which is starting to “steal” investment activity away from the oil futures in NY, as investors are definitely expecting better profitability to start coming from biofuels. One certain energy markets analyst has said, growth in demand for diesel and gasoline may slow down dramatically, if the government subsidizes firms distributing biofuels and further pushes to promote the use of eco-friendly fuel.

There is Brazil, which happens to be the world's biggest producer of ethanols derived from sugars. The United States, while being the world's greatest oil-guzzler, is already the second largest producer of biofuels behind Brazil.

80 percent of the EU's biodiesel fuels are derived from rapeseed oil; soybean oil and a marginal quantity of palm oil comprise the other 20 percent.