Ethanol consumption could well become the rate-limiting factor underlying future Biofuel consumption as it is an inherent feature in Biofuel manufacture. The announcement in the news this week that BP is to invest heavily in the precursors of biofuel should not therefore come a surprise - only its timing. I predict that many other petrochemical companies will follow suit to attempt to gain a foot in this very precarious and highly sought after market.
There can only be one answer and that is that BP knows from its research that the biofue market is going to expand incrementally over the next few years irrelevant of recession
The Brazilians have used ethanol for some time in their cars - and who can forget the overpowering smell of alcohol when being taken in one of their VW Beetle Taxi's - enough to make a good Scot dream. Brazil is a land that has already the infrastructure of ethanol production and those first their will no doubt have their pick of the best of the ethanol market in the short term at least.
The only surprise and one that should be heartening to all in the environmental sectors - and I mean all - is that this has occurred in a global recession when investment is indeed scarce and when even a large multinational - like BP - need its full resources There can only be one answer and that is that BP knows from its research that the biofuel market is going to expand incrementally over the next few years irrelevant of recession.
If so for biofuel then the same is for the Environmental Agenda.
