Green Options

The EPA, through its Renewable Fuel Standards program, has set a pretty idealist goal for the introduction of cellulosic biofuels, and many are wondering if the goal will be able to be met.

The U.S.’s rush to grow corn for fuel has already been blamed for rising food costs that are pricing the world’s poor into hunger and malnutrition. But the high cost of corn is having another unintended consequence: a plunge in biofuel plants’ profit margins.

About one-fourth of all corn grown in the U.S. is now cultivated for fuel rather than for food. Meanwhile, the growing demand for both food and fuel is driving commodity prices for crops like corn to record highs. That means, even with the federal government’s generous subsidies for ethanol production, today’s biofuel profits aren’t what they used to be.