Bad News for Biofuels

The radio announcer started the story with a rather sarcastic "So much for bioethanol solving all our problems!" then continued with the coverage of one of America's largest bioethanol producers filing for bankruptcy protection. The story was about Verasun, but since then several more companies have filed. I found the announcer's reaction a bit on the alarmist side, and perhaps reflective of an anti-biofuel stance. However, although these are all first generation producers, hit by the recent economic crisis and the effect it is having on both fuel and corn prices, one has to wonder what the fallout will be for the entire industry and whether the second generation cellulosic biofuel makers, many of whom are still in pilot plant stages of development, will survive.

_Source:

Galbraith, K. Economy Shifts, and the Ethanol Industry Reels. New York Times, Tuesday, November 4, 2008.