Biofuels wont work. Whether the question is offsetting climate change, cutting reliance on Middle East oil or simply finding a profitable new investment, those who put their faith in biofuels are likely to be disappointed. There are all sorts of reasons for this, but the underlying one, as so often, is economics. Were not
talking PhD economics either, most of this stuff is GCSE- level supply and demand, plus substitution effects. Here are the facts. Most biofuels compete with food supplies. That is either in terms of the land they use, or because they are actually made of food crops. Most absorb more fossil fuels in their cultivation than they save in their end use, so they obviously cannot begin to compete with oil without subsidies....
