Biogasoline - Economic Viability and Future

Economic Viability and Future

One of the major problems facing the economic viability of biogasoline is the high up- front cost. Research groups are finding that current investment groups are impatient with the pace of biogasoline progress. In addition, environmental groups may demand that biogasoline that is produced in a way that protects wildlife, especially fish. A research group studying the economic viability of biofuels found that current techniques of production and high costs of production will prevent biogasoline from being accessible to the general public. The group determined that the price of biogasoline would need to be approximately $800 per barrel, which they determine as unlikely with current production costs. Another problem inhibiting the success of biogasoline is the lack of tax relief. The government is providing tax relief for ethanol fuels but has yet to offer tax relief for biogasoline. This makes biogasoline a much less attractive option to consumers. Lastly, producing biogasoline could have a large effect on the farming industry. If biogasoline became a serious alternative, a large percentage of our existing arable land would be converted to grow crops solely for biogasoline. This could decrease the amount of land used to farm food for human consumption and may decrease overall feedstock. This would cause an increase in overall food cost.

While there may be some problems facing the economic viability of biogasoline, the partnership between Royal Dutch Shell and Virent Energy Systems, Inc., a bioscience firm based in Madison, WI, to further research biogasoline is an encouraging sign for biogasoline’s future. In addition, many nations are enacting policies that increase the use of biogasoline within the country to help curb the cost of fossil fuels and create more energy independence. Current efforts by the partnership are focused on improving the technology and making it available for large-scale production.