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Signs of Collapse for Biofuel Movement

In recent years, many have argued that the road would be to move away from oil in the Middle East and toward reducing vehicle emissions of greenhouse gases will be led by the switch to ethanol and biodiesel. This argument and the biofuel movement of entrepreneurs, industry leaders spoke, and some researchers will quickly die. Last year, VeraSun, the largest producer of ethanol in the state of the country was in bankruptcy and was sold, and Germany the first country to officially shut down its commitment to biofuels.

From the beginning of the biofuels movement, three important questions remain unanswered:

• Cost. Can biofuels produced in quantities of conventional fuels at a competitive price?
• Food Prices. Can be used raw materials for biofuels to avoid the substance in order to obtain fuel, which departed from the use for food production?
• Emissions. Can you make biofuels without harming the environment?

Answers to these questions seem to be: No, no and no again, especially ethanol from corn and biodiesel from soybean and palm oil.

The first question is paralyzing much of the U.S. biofuels industry. VeraSun, at the end of 2008 filed in bankruptcy and secured bank financing to reorganize some said the only alternative was to shut down production, despite its magnitude and the United States commitment to ethanol. VeraSun bankruptcy cleared in April and closed on the sale of assets refining giant Valero.

Numbers do not exist, since the prices of corn and natural gas, the main raw materials and fuels used in ethanol increased in the past year, while retail prices for ethanol do not keep up on. Company plans ethanol and biodiesel plants to break the road to profitability of biofuel alternative rock even government subsidies.

So-called second generation biofuels like cellulosic ethanol from raw materials such as wood chips and switchgrass have done, faced with similar financial problems. One company, Xethanol, changed its name and change its strategy of cellulosic ethanol to methane.

Biofuels with Tarnished Image

Meanwhile, anxious as biofuels food in developing countries, see «How to rising prices for soybeans, which means the famine in Indonesia,» tarnished the image of biofuels. Latest ads negative image of biofuels' is palm oil, rising demand for some countries that have logging for palm plant. Negative information has the obligation of Germany to use a higher proportion of biofuels in diesel aggregate victory in the ban, received off of biodiesel from soybeans or palm oil.

With the support of Germany on its commitment to biofuels, the focus turns to the United States. California air regulators approved the world's first low carbon fuel Standard (frigate contract) in April. 9-1 at the decision California Air Resources Board was to realize 10 percent reduction in vehicle for promoting greenhouse gas emissions in 2020 and the commercial development of low-carbon fuels such as hydrogen and cellulosic ethanol. The final rules contain a few concessions biofuel industry, such as moving, a review of measures the indirect impact of land-use on petrol to 2011 from 2012.

Obama on Ethanol

During the election campaign, Obama said his support low-carbon fuel standard, the National, as well as its commitment to the industry of corn ethanol.

Obama wants a copy of the goals of California under the National low carbon fuel standard will be introduced with the additional requirement of 60 billion gallons of advanced biofuels in our fuel supply is gradually until 2030. In his campaign, Obama has expressed support for the multibillion-dollar annual government subsidies that domestic ethanol has long enjoyed, as well as 54 cents per gallon U.S. tariff on imports of ethanol from sugar cane strokes.

The outcome of debates in Sacramento and Washington, DC, and as a result of government mandates, incentives and subsidies probability, if biofuels can be returned from the brink of collapse.

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