OF THE EV AND BIOFUELS

Biofuels left out as automakers go electric
David R. Baker, August 2, 2010 (SF Chronicle)

"In the race to replace oil, electric cars seem to be leaving biofuels in the dust…Five years ago, biofuels such as ethanol and biodiesel looked like the best bet for breaking the world's addiction to oil…[and] automakers considered electric cars a lost cause…Now the situation has been reversed….

"By the end of 2010, two global automakers will start selling plug-in cars priced for the mass market. Nissan will introduce the all-electric Leaf, while General Motors offers the Chevrolet Volt, a plug-in hybrid that runs solely on batteries for the first 40 miles of every trip. Automakers as different as Ford, Toyota and Porsche all have plans to go electric…The biofuel industry, however, took a hard blow when the recession hit in 2008…Biorefineries closed…As the recession deepened, venture capital funding for biofuels dwindled, dropping from $1.08 billion in 2007 to $524 million in 2009…And companies that make ethanol from corn came under fire for contributing to a worldwide increase in food prices…"

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"Many energy analysts, however, caution against counting biofuels out…Cellulosic ethanol - made from crop stubble, wood chips or grass - could prove to be economical in the next few years…[M]ost energy analysts believe both electricity and biofuels have a place in transportation's future…[E]lectricity may be a fine option for powering cars, but not planes…

"Pacific Ethanol, had to close plants in Stockton and Madera early last year…, laying off about 80 people…[P]roduction facilities filed for bankruptcy in May 2009, emerging one month ago. But…[t]he company plans to reopen them as the market improves…[T]he market for biofuels remains, supported in large part by government mandate…Federal law requires the nation's motor fuel suppliers to blend an increasing amount of biofuels into their products each year. The federal "renewable fuel standard" gives biofuel companies, mostly corn ethanol producers, a base level of demand they can rely on…"

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"Last year, the nation's biorefineries pumped out 10.6 billion gallons of ethanol, the overwhelming majority of it made from corn. The renewable fuel standard also includes specific mandates for the production of cellulosic biofuels, but so far, the industry hasn't been able to make as much as the government wants. The standard originally called for 100 million gallons of cellulosic biofuels to hit the market in 2010, but the Environmental Protection Agency had to scale back the requirement to 6.5 million gallons to match production…

"The recession may have delayed the commercialization of cellulosic biofuels. But many companies are still pursuing that dream. And they're starting to find funding again, sometimes from the federal government…[Many see] a place for both electric cars and biofuels. Plug-ins work well in urban environments, for commuting or errands. But with battery range still limited, liquid fuel remains a better choice for long-distance travel…"