Bio-Based Fuel Industry Faces Cost and Scale Challenges

EnvironmentalLeader
December 23, 2009

Bio-based fuels are not serious threats to the $250-billion petroleum industry until they can compete in terms of cost, properties and scale, according to a new report from Lux Research. In order to replace the 30 billion barrels of oil consumed annually, today’s bio-based technologies would need to cultivate an area the size of Russia, according to the report.

The report, “Biofuels’ and Biomaterials’ Path to Petroleum Parity,” indicates that cost and scale are major roadblocks to advancing biofuels as viable alternatives to petroleum.

In this research report, Lux Research created a quantitative model of the value chains for petroleum products and their bio-based alternatives. The model begins with feedstock costs and capacity, then follows with technologies and processes and examines end uses.

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