Cellulosic Ethanol: The Fuel of the Future?

InvestorPlace
Mar 29, 2012, 11:08 am EDT By Aaron Levitt, InvestorPlace Contributor

Second-gen biofuel companies could be on a rising tide

As oil prices continue to rise, so has the cost to fill up our tanks. According to AAA, the average price for a gallon of gas hit $3.90 on Wednesday — the 19th consecutive day it has risen. While there are myriad factors that go into what we pay at the pump, the underlying point is that it still hurts our wallets.

However, some pricing relief might be on the horizon. Escalating petroleum prices have once again led to renewed interest in biofuels. While traditional corn and sugarcane ethanol have provoked an intense backlash from both policymakers and the public, second-generation biofuels made from plant wastes or non-food crops, known as cellulosic ethanol, are beginning to gain acceptance. While it will be some time before we fill our tanks with wood chips, recent activity in the sector is certainly indicative of bullish news.

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