Biofuel hopes outrunning reality (returning to the past)

"In response to the 1970s oil crisis, there was a boom in the interest in alternative fuels including government programs to provide incentives. Once oil prices dropped, the interest in alternative fuels waned and government programs supporting such efforts died away," said Robert Edwards, a partner in the energy and project finance at Washington-based law firm Hunton & Williams. "It is possible that this cycle may be different. However, it is challenging to devise the appropriate public policy response."


Nations such as Japan and the U.S. are looking for viable alternatives to petroleum, but promising technologies will not replace current sources to any great degree for years, analysts say. One expert says until the U.S. stops thinking of cheap, reliable oil as its "birthright," progress toward energy security will never be achieved.

Yet there still remains optimism about developing alternative energy sources, even if the pay-off may be a long time coming.

"Biodiesel can only supply about 10 percent of the demand for fuel oil, it is essential that we move forward with it. No alternative energy source can fully replace oil, and we will need to develop all forms in order to make the transition," said Chrism Bachmann, assistant professor of integrated science and technology at James Madison University in Harrisonburg, Va. He also pointed out that "once all the oil is gone -- within 40 years -- and eventually coal as well, we will need every form of alternative energy to replace them."