When we convert organic matter into fuel, it is called biofuels. This is just one of many alternatives we can in an effort to replace our dwindling fossil fuels which we depend on so much. The biofuels umbrella includes under its aegis ethanol and derivatives of plants such as sugar cane, as well as vegetable and corn oils. But ethanol products are not the only ones developed for gasoline purposes. The International Energy Agency (IEA) tells us that ethanol could comprise up to 10 percent of the world’s usable gasoline by 2025, and up to 30 percent by 2050 but today, the percentage figure is only two percent.

On the other hand, this biofuels research needs to be improved and a study from the Oregon State University showed that it can be convenient and profitable. At this point, aside from gasoline made from petroleum, we were able to come up with Biofuels that are also as energy efficient. The way energy efficiency is measured comes from how much we derive from the source compared to how much was used to extract it.

Despite our best efforts, fuel sources always require a greater input than they are able to supply back. We measure it like this: the input energy is the effort required to achieve the output energy we are looking for. The OSU study found corn-derived ethanol to be only 20% energy efficient (gasoline made from petroleum is 75% energy efficient). On the brighter side, the study reported that cellulose-derived ethanol weighed up against the extremely efficient nuclear energy showed an even better efficiency of about 85%.

With the enticing and promising effects of biofuels, investors are undeniably anticipating increased profits from it and this may bring about the rise of the grain futures market of the Chicago Stock Exchange that will soon whip away investment activities from the oil futures in NY. This has no become a major topic as scientists are of the opinion that within just over twenty years (2030), we will be using upwards of 30% of this type of fuel for our transportation needs. One certain energy markets analyst has said, growth in demand for diesel and gasoline may slow down dramatically, if the government subsidizes firms distributing biofuels and further pushes to promote the use of eco-friendly fuel.

The world’s biggest producer of ethanol derived from sugars which is Brazil can be sited as an example. 5 billion gallons of ethanol. Despite their love of gasoline, the United States is the second largest producer of biofuels. The production capacity of European Union’s biodiesel is currently overload of about four million (British) tonnes. EU’s biodiesel fuels are drawn from rapeseed oil and soybean oil which comprises eighty percent of its totality and the other 20 percent is composed of a marginal quantity of palm oil.