The power or fuel that is created from organic materials is bioenergy or biofuel. Ethanol is the typical fuel made by processing corn and other types of plants. This fuel is used to power cars, produce heat or as a source of electrical power. This bio-fuel now represents over five percent of the energy production in the United States.
Increased use of biofuels in various industries will have many benefits based on the application. There will be a reduced dependence on foreign energy supplies which will lead to energy security. Production of bio-fuel will spur job growth and have a positive impact on economic development. The growth will be seen from the expansion of existing infrastructure and the creation of new industries. Increasing use of bio-fuels will also lead to a significant reduction in greenhouse gases.
Potential challenges will also exist with the development of new opportunities. This will include having an adequate supply of feed for cattle and supplies for stock. One downside to the use of corn and plants to product bio-fuels is infrastructure constraints, feedstock delivery, and product distribution, Grains are a major source of food and land areas with crops diverted to bio-fuel production mean an increased price for feed supplies. There is also the combustion of raw materials that result in air emissions.
States that are in specific geographic areas are better able to produce crops to use for the production of bio-fuels. Many states offer economic incentives and have regulations that affect local feedstock and total the bio-fuel output. The availability of feedstock is one factor that is used to determine if local areas are a potential for bio-fuel production. This includes energy-producing and agricultural crops. There is also solid waste, landfill gas, and other sources of energy.
A market assessment will then be performed once the evaluation of all bio-fuel resources is complete. The next phase is an evaluation of current policy and market conditions that exist. This includes investment and financing, research and development and other options for the effective promotion of bio-fuels.