Bio-Fuels Are Seen As Alternative Supplies Of Energy Nowadays

Bio-fuels are produced by converting organic matter into fuel for powering our society. These bio-fuels are an alternate energy source to the fossil fuels that we currently depend upon. The bio-fuels umbrella contains under its aegis ethanol and derivatives of plants such as sugar cane, as well as vegetable and corn oils. However, not all ethanol products are designed to be made use of as a kind of gasoline. The International Energy Agency (IEA) informs us that ethanol could comprise up to 10 percent of the world's usable gasoline by 2025, and up to 30 percent by 2050. At this time, the percentage figure is two percent.

However, we have a long way to go to refine and make economic and practical these bio-fuels that we are researching. A study by Oregon State University proves this. We have yet to develop bio-fuels that are as energy efficient as gasoline produced from petroleum. Energy efficiency is the measure of how much usable energy for our needed applications is derived from a certain volume of input energy. (Nothing that mankind has ever used has derived more energy from output than from what the needed input was. What has always been important is the conversion - the end-product energy which is what is useful for our needs, while the input energy is only the effort it takes to produce the end-product.) The OSU study found corn-derived ethanol to be only 20% energy efficient (gasoline derived from petroleum is 75% energy efficient). Bio-diesel fuel was recorded at 69% energy efficiency. However, the study did turn up one positive: cellulose-derived ethanol was charted at 85% efficiency, which is even higher than that of the fantastically efficient nuclear energy.

Of late, oil futures have been down on the New York Stock Exchange, as analysts from several different countries are predicting an increase in bio-fuel availability which would offset the value of oil, dropping crude oil prices on the international market to $40 per barrel or thereabouts. The Chicago Stock Exchange has a grain futures market which is starting to "steal" investment activity away from the oil futures in NY, as investors are absolutely expecting better profitability to start coming from bio-fuels. Indeed, it is predicted by a consensus of analysts that bio-fuels shall be supplying seven percent of the entire world's transport fuels by the year 2030. One certain energy markets analyst has mentioned, growth in demand for diesel and gasoline may slow down dramatically, if the government subsidizes firms distributing bio-fuels and further pushes to promote the use of environmentally-friendly fuel.

There are numerous nations which are seriously involved in the advancement of bio-fuels.

There is Brazil, which happens to be the world's biggest producer of ethanol fuel derived from sugars. It produces about three and a half billion gallons of ethanol annually.

The United States, while being the world's greatest oil-guzzler, is already the second largest producer of bio-fuels behind Brazil.

The European Union's bio-diesel production capacity is now in excess of four million (British) tonnes. 80 percent of the EU's bio-diesel fuels are created from rapeseed oil; soybean oil and a marginal quantity of palm oil comprise the other 20 percent.

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