Friday, September 25, 2009

Cellulosic ethanol – A Realistic Route to the Energy Crisis

A study released earlier this year by the U.S. Department of Energy’s found that large volumes of cellulosic biofuels could be produced from already identified biomass sources and resources without displacing crop production.

The study, which was sponsored by General Motors, indicated that even without incentives cellulosic biofuels could potentially compete with gasoline with oil prices of between $70 and $90 per barrel by 2030, given the expected accelerated development of technology and feedstocks.

The report also found that the needed investment in cellulosic biorefineries would be comparable to that needed to expand domestic oil exploration and production to similar levels.

The only problem as discussed in my earlier post is the transportation issue. Experts believe that the CE industry, to a great extent, will contribute significantly to a low carbon transportation sector and the new green economy if the transportation issue is overcome.

There is yet another hurdle which has to be overcome, for a long- term survival of Cellulosic Ethanol. Dependence on federal subsidies, grants should will not help.

Some experts believe that playing field should be leveled, pointing out that the oil industry, which ethanol is competing against. Some others feel that ethanol subsidies may actually prove to be detrimental to the industry in the long run. The industry’s goal is to develop independent systems that are economical without governmental assistance.

Surprisingly, cellulosic ethanol projects have been able to secure reasonable levels of financial capital. The long-term future of cellulosic ethanol is not yet clear. However, research efforts show that it will be definitely a big answer to the world’s energy crisis.


Related blog posts
Cellulosic Ethanol Commercialization will be a Dream Come True!
Why is Cellulosic Ethanol Best as a Biofuel ?

NREL's Efforts to Commercialise Cellulosic Ethanol- Highlights

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