Biofuels Suffering from High Corn Prices and Dropping Demand | The Energy Collective

See on Scoop.itGreen Energy Technologies & Development

Nearly 10 percent of the nation’s ethanol plants have stopped production over the past year, the drought having pushed commodity prices so high that ethanol has become too expensive to produce.

Duane Tilden‘s insight:

The other half of this is falling demand for gasoline — a result of both the recession, and a renewed policy push for electric and hybrid vehicles and tougher fuel economy standards. […]

Globally, the combined effect of U.S. and European biofuel policy has been a massive divergence of corn crops into biofuel production, which in turn drove up the price of corn and contributed to global food insecurity. […]

Cellulosic biofuels, by relying on crops that don’t double as food, could provide a solution. But whether they can be widely commercialized without requiring high levels of water and land use remains an open question.

See on theenergycollective.com

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