Following up on our last post we highlight a piece from OILPRICE about the potential for biofuels to transform the global economy.  And as we have been reporting since this blog started a few weeks ago, the lead is taking place in the aviation industry and in surface transport in Brazil and North America.

Across the world entrepreneurs are producing biofuels made from renewable sources like  jatropha, camelina, cooking oil, corn and sugarcane and then mixing them with traditional fossil fuels to operate aircraft and road vehicles.

What is clear at this juncture however is the fact that renewable biojet fuels have been certified, and furthermore, that production is beginning, albeit at on a limited scale with relatively high production costs.

As noted earlier in this article, a critical momentum is building on three continents to advance production of biofuels, and when major players such as Airbus become involved, the viability of such projects is no longer in question, only the timeline.

Last but not least, an additional benefit of biofuels in a world concerned about global warming and emissions of greenhouse gases is that biofuels reduce carbon emissions by jet aircraft by up to 80 percent.

While the cost of biofuels is expensive at this juncture (as high as $70 a US gallon), there is a great expectation that costs will fall rapidly as firms reach economies of scale driven by global demand.

 

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