Biofuels are hedging their bets

I've hesitated posting about biofuel because for me it's a bit complicated. A NY Times article helps to get my head around it. "Biodiesel comes from soybean, palm or oil-seed plants like canola and mustard, as well as from animal fats. Corn oil can also be extracted for fuel. Some start-up companies and university scientists are testing algae, which is attractive because it would not dip into the nation’s feedstock reserve." According to the article there is big investment in this technology across the board and the involvment of environmentalist, farmers and investment bankers has all the ear marks of something both creative and promising for satisfying energy needs. "But the strongest incentives are high petroleum prices and federal tax credits. “If one of those two fall, the industry’s growth would slow significantly, but would survive,” said Eric Bowen, a lawyer who helped found San Francisco Biodiesel, which plans to build refineries based on rendered animal fat and recycled vegetable oil from restaurants. “But if both fall away, the biodiesel industry would be in serious trouble.” It is a little disturbing that if gas becomes more affordable again all of this new technology could go out the window. As if the price of gas is the real problem we face.