Biofuels as Alternative Energy Sources

Biofuels are produced by converting organic materials into fuel. These biofuels represent an alternative energy source to the fossil fuels upon which we currently depend. The term "biofuels" includes ethanol and derivatives of crops such as sugar cane and corn. However, not all ethanol products are intended to be used as a type of gasoline. The International Energy Agency (IEA) states that ethanol could comprise up to 10 percent of the world's gasoline by the year 2025, and up to 30 percent by 2050. Currently, the percentage is around two percent.

A study by Oregon State University (OSU) has shown that much more research is necessary to refine and make biofuels economic and practical. Biofuels have not yet been developed that are as energy efficient as petroleum derived gasoline.

Energy efficiency is the measure of how much usable energy is derived from a given quantity of energy input. (Nothing that mankind has ever used has created more energy from output than what was required to be input. The energy required for conversion— the input energy necessary to produce the end-product always exceeds the energy of the final product.)

The OSU study found that ethanol derived from corn is only 20% energy efficient whereas gasoline made from petroleum is 75% energy efficient. Biodiesel fuel has a 69% energy efficiency. However, the study did show one positive: ethanol produced from cellulose was measured at 85% efficiency, which is higher even than the remarkably  efficient nuclear energy. 

Oil futures on the New York Stock Exchange have gone down as analysts from several countries predicted a rise in biofuel availability. This would decrease the value of oil, dropping crude oil prices on the global market.  The Chicago Stock Exchange grain futures market is starting to "steal" investment activity away from the oil futures in New York as investors expect better profits to start coming from biofuels.

It is predicted by a consensus of analysts that biofuels will supply seven percent of the world's transportation energy by the year 2030. One energy market analyst has said, growth in demand for diesel and gasoline may slow down dramatically, if the government subsidizes the manufacture of biofuels to promote the use of eco-friendly fuel.

Several countries are seriously researching and developing biofuels.

Brazil is the world's largest producer of ethanols derived from sugars. It currently produces approximately three and a half billion gallons of ethanol per year.

The United States, while being the world's largest consumer of fossil fuel, is already the second largest producer of biofuels.

The European Union's biodiesel production capacity is now exceeds four million British tonnes. Eighty percent of the EU's biodiesel fuels are derived from rapeseed oil; soybean oil and a small quantity of palm oil comprise the other 20 percent.