Biofuels and the Future

I’ve been a big fan of investing in biofuels for the past several years – and it has paid off handsomely for me, with returns in excess of 200% in just one year.

I think biodiesel and ethanol are great ideas in principle. But I think many people miss the big picture about biofuels in general because they focus on one small point: that there is not enough land in the USA to grow all of the crops we need to be energy independent.

Those folks are the same ones that would have shunned the Ford Model T because when Henry Ford first sold it, the car was only available in one color. They need to change the way they are looking at things, because the future for biofuels is far different from the present.

Biodiesel and ethanol technology has been available for some time, but the whole world was not focused on it like it is today. Now that the spotlight is on the issue, and the sum of all of the world’s knowledge, resources, and capabilities are focused on it as well, I think we will see some real changes happen in the next few years.

There are so many new technologies on the horizon – like algae-based biodiesel and cellulosic ethanol made from waste products. Both could completely change biodiesel and ethanol as we know it, and neither would require us to use every acre of America’s farmland to grow corn and/or soybeans.

And it is entirely possible that a better fuel source will emerge that we haven’t even thought of yet.

In my opinion, the industry is still very much in its infancy. It has boomed a ton over the past few years, mostly due to the incentives being given all around. And the future has a lot more in store.