Renewable fuel

Rationale for renewable fuels

The International Energy Agency's World Energy Outlook 2006 concludes that rising oil demand, if left unchecked, would accentuate the consuming countries' vulnerability to a severe supply disruption and resulting price shock. Renewable biofuels for transport represent a key source of diversification from petroleum products. Biofuels from grain and beet in temperate regions have a part to play, but they are relatively expensive and their energy efficiency and CO₂ savings benefits, are variable. Biofuels from sugar cane and other highly productive tropical crops are much more competitive and beneficial. But all first generation biofuels ultimately compete with food production for land, water, and other resources. Greater efforts are required to develop and commercialize second generation biofuel technologies, such as biorefineries and ligno-cellulosics, enabling the flexible production of biofuels and other products from non-edible plant materials.