Resource information
Recent increases in production of
crop-based (or first-generation) biofuels have engendered
increasing concerns over potential conflicts with food
supplies and land protection, as well as disputes over
greenhouse gas reductions. This has heightened a sense of
urgency around the development of biofuels produced from
non-food biomass (second-generation biofuels). This study
reviews the economic potential and environmental
implications of production of second-generation biofuels
from a variety of various feedstocks. Although
second-generation biofuels could significantly contribute to
the future energy supply mix, cost is a major barrier to
increasing commercial production in the near to medium term.
Depending on various factors, the cost of second-generation
(cellulosic) ethanol can be two to three times as high as
the current price of gasoline on an energy equivalent basis.
The cost of biodiesel produced from microalgae, a
prospective feedstock, is many times higher than the current
price of diesel. Policy instruments for increasing biofuels
use, such as fiscal incentives, should be based on the
relative merits of different types of biofuels.
