Utilizing Bio-fuel Beyond Experimental Use
grumpyman writes "A C$14 million factory near Montreal started producing biodiesel fuel two weeks ago from the bones, innards and other parts of farm animals. At full capacity plant will produce 35 million liters (9.2 million U.S. gallons) of biodiesel a year, the greenhouse gas equivalent of removing 16,000 light trucks or 22,000 cars from the roads."
For some time I've thought the future of automotive fuel lies in biodiesel rather than hydrogen. Hydrogen is just very hard to work with because of its low energy density and the fact it is normally a gas. Generation, transportation, storage and utilization all face large challenges.
For biodiesel, all the steps except generation are already solved and the infrastructure in place, and the generation problems do not seem large. (Even without the existing infrastructure, I suspect biodiesel wins economically.)
Generation from algae is particularly promising, as it doesn't require arable land, and can use salt water.
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Unless there is a tax or government subsidy for recyclable diesel (diesel in which the CO2 was trapped by plants recently)
Motor vehicle fuels are already taxed. Drastically cutting taxes on biofuels compared to petrofuels can subsidize them without "subsidizing" them, although European countries generally have more room to cut taxes than North American countries do.
few consumers will double or triple their fuel costs to use a sustainable energy source.
Unless worldwide crude oil extraction peaks and the supply curve moves so as to double or triple petrodiesel prices anyway. Then biodiesel will become even more attractive.
The assumption of all of the above being, of course, that the market is capable of developing such a replacement strategy, even with gentle prodding, based on shifting financial incentives, and that this new equilibrium does not have some rather profound effects, like, say, complete and total change in the economics of transportation and manufacturing processes, great many of which depend on plastics. This is not to say that a positive outcome is impossible. I am merely pointing out what appears to be your unwarranted, blind faith in the infallability of free market and an out-of-hand dismissal of a possibililty of seismic shifts in the way of life of hundreds of millions of people, all of which can have far ranging effects well beyond the scope of pure economics, and with which the free markets are completely unequipped to deal with.