Algae as a fuel could skew corn's role

The corncob could be losing its special place in the nation's energy future. The 2007 energy bill required that refiners start using biofuels made from cobs, wheat straw, grasses and other sources of plant cellulose by 2010, with the mandate growing annually to reach 16 billion gallons by 2022. But now there is an effort in Congress to expand that mandate to include fuels made from algae and microorganisms. A climate bill the Senate is considering would replace the requirement for use of cellulosic biofuels with a broader mandate for "advanced green biofuels." The change could encourage investors to put more money into developing algae fuels. Until now, companies focused on turning cellulose into ethanol have had the mandate, and the powerful investment incentive it represents, all to themselves. Kevin Book, an analyst with ClearView Energy Partners, said the new definition could hurt cellulosic developers while aiding the algae sector. The fact that the Senate bill includes the expanded definition shows there is growing support for expanding the 2007 mandate beyond cellulosic fuels, he said...read more

What Big Government giveth Big Government can taketh away.