Course: BFM 101 Biofuels Fundamentals

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Storage and Transportation Costs
Conclusions

The Chicken and Egg Dilemma
The Chicken and Egg Dilemma
Oil companies, refineries, car manufacturers, electricity companies and others don’t want to invest in new technologies to distribute and utilize bioenergy until there is widespread feedstock supply.  Cellulosic biomass producers don’t want to invest in production until they are sure there is a demand.  The current situation in bioenergy development and utilization appears to be a real “chicken-or-egg” problem.  How to get growers to grow biomass if there’s no market?  How do markets arise without growers?  One side will need to move first, and most likely the demand side.   Many experts agree that if demand is there, agricultural production is capable of ramping-up quickly.  However, much will depend on oil prices and intangible infrastructure.

Resources provided by the eXtension Farm Energy Community of Practice at http://www.extension.org/ag+energy

Storage and Transportation Costs
Conclusions