Thursday, April 26, 2007

Investors Want to Know: Ethanol vs. Biodiesel

The Motley Fool has an interesting article about the Ethanol vs. Biodiesel debate from an investors perspective. This is a good angle to use in order to determine what may be our next major alternative energy. If the energy source is profitable for companies then they will support it, a major hurdle in the past. Both of these fuels have environmental benefits but also have major disadvantages. “the sad truth is that even if all of the corn and soybean production in America were dedicated to their production, the country would replace only 12% of gasoline consumption and meet a mere 6% of diesel demand.”


However, this is a good start. As production technology improves, the gallons per acre will improve which some experts estimate from todays output of hundreds of gallons per acre to thousands of gallons per acre by 2030.

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