"Without a significant innovation in cellulosic biomass like plant stalks and wood chips, the biofuels market is likely to falter, or at least lack the pace necessary to satisfy a significant percentage of demand..." According a report by BioWorld Today, which bills itself as the daily biotechnology newspaper.
The report said that while ethanol is the market placeholder today, cellulosic ethanol represents the evolution of the technology into the immediate future of six to 40 years. "Corn cannot conceivably handle the displacement of gasoline in the US anymore than crop-based ethanol can keep pace with global gasoline consumption without running out of steam," the report added.
Oil squeezed from soybeans and oil palm are being used to produce biodiesel. In both the cases of ethanol and biodiesel, the prices for the feedstocks like corn and sugar have soared.
The BioWorld report said ethanol production in the United States topped the 1 billion gallon annual production mark with 1.1 billion gallons in 1992, and that production is expected to rise to around 4.3 billion by end of 2006.
The report said it is possible that corn farmers may be unequipped to handle the demand for biofuels feedstock if the ethanol market grows by triple digits over the next two years, as may be the case, according to the current growth rate.