In 2014, the U.S.’s advanced biofuel capacity increased to more than 800 million gallons, according to a report recently released by the national nonpartisan business group, Environmental Entrepreneurs (E2). The report, “E2 Advanced Biofuel Market Report 2014,” projects that the current capacity will double by 2017.

Now I know what you’re thinking. Who cares about advanced biofuels when light sweet crude has dipped below $49 per barrel? Well, both California and Oregon care. Advanced biofuels have helped them to meet their emissions reduction targets. Not to mention Washington State, which is poised to move forward with its own clean fuel standard.

And there are 181 companies in North America actively working on advanced biofuels (most of these are multi-feedstock biodiesel). These companies have at least 167 commercial facilities and 9 demonstration facilities that are in various stages of operation, construction, or planning.

E2’s report noted some major challenges and setbacks for the advanced biofuel industry, but noted significant progress in the area of cellulosic biofuels.

Cellulosic biofuels are made from lignocellulose, the structural component of plants. Lignocellulose is made of cellulose, hemicellulose, and lignin. Corn stover (the non-edible part of the corn plant), for example, is a popular cellulosic material to use in fuel production (particularly ethanol production). Other cellulosic sources include switchgrass (a fast-growing crop that is more sustainable than corn and also non-GMO) and my personal favorite, wood chips.

 

Regardless of current fossil fuel prices or uncertainty around the federal renewable fuel standard, big money is being invested in advanced biofuels. According to E2’s report, the private sector has invested $4 billion since 2007 in active biofuel producers and in companies all along the advanced biofuel value chain.

 

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