Despite the controversy reflected in press reports, the biofuels industry is not going away and is not the root of all food price increases. In demonstration of the future of the industry, two significant biofuels development projects were announced by major corporations. First, DuPont and Danish group Danisco announced the creation of a global company to produce cellulosic ethanol, which is derived from non-food sources. Second, Honeywell announced a partnership with Airbus, JetBlue Airways, and International Aero Engines to develop biofuels for commercial aircraft use. Thus, the biofuels industry will continue to be a significant business based on development of new technologies and processes to develop biofuels with far more energy potential than is used to produce them and without using food crops as a raw material.
DuPont and Danisco division Genecor are forming a joint venture to create ethanol from corn stalks and sugarcane waste. Future sources may include wheat straw and other non-food crops or biomass. The new entity will receive an initial three-year investment of $140 million. The companies estimate the global market for the product at $75 billion. The new company, DuPont Danisco Cellulosic Ethanol, plans to construct and begin operating its first plant in the United States by 2009.
The Honeywell, Airbus, Jet Blue, and International Aero Engines venture will focus on developing commercial aviation fuels from algae and jatropha. The venture aims to capitalize on existing technology being developed by Honeywell's subsidiary UOP that converts natural oils and greases into military jet fuel as part of a project funded by the U.S. Defense Advanced Research Projects Agency.
These ventures demonstrate that biofuels will likely produce a significant global industry. The key to the business is developing a sustainable means of producing biofuels by focusing on use of raw material that is not used for food and processes that are able to generate fuels with sufficient net energy and environmental benefits.
