Virgin (yeah, that Virgin), not content with buying into spaceflight, is buying into biofuels now — specifically, buying into Gevo, a CalTech spinoff founded to commercialize bio-butanol. Unlike ethanol, butanol is not hygroscopic (it does not absorb water from the environment), which means that unlike ethanol, it can be shipped via pipelines that may be contaminated with water.¹
Butanol has 91% of the energy density of gasoline, comparing very favorably with ethanol at 61%, and most engines designed for gasoline or gasohol will run on straight butanol without modification. Gevo plans to later produce butanol-based fuels for trucks and jet engines.
[1] Though personally, I don't really see the problem with pumping ethanol through wet pipes. You'll probably be discarding the first few kilolitres through the pipe anyway, because it's going to be contaminated with all kinds of stuff, and after the ethanol goes through, that pipe will be DRY. Water in the pipes is almost more of a problem with gasoline than with ethanol, since it doesn't mix with the gasoline, which means any water the gas does pick up is going to settle out into the bottom of ... say, your gas tank. Ethanol, meanwhile, will just dissolve it and carry it harmlessly through your engine.
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Almost anything bio makes a good bio fuel source. Corn is used because the Corn Industry made sure there were Federal tax and rule subsidies for it to be used. The industries that use corn (and are annoyed that Corn Prices are going Way Up) are now getting on the Federal band wagon and it is felt that soon All Bio Sources will have the same tax and rule subsidies.
Then bio waste will become more popular as the source for bio fuel. Which is as it should be.
Waste to fuel makes a LOT of Sense.
Me? I drive a Prius. I would probably use this new fuel. I can't use Ethanol.
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The production capacity for the base feedstocks is far more than anyone can eat. Cellulosic production can use the entire plant anyway, so you can harvest the food crop and then make fuel from the stalks that you'd otherwise burn off.
In any case, world hunger is a problem of distribution, not of supply. Inexpensive biofuels might stand a change of actually helping that. (Though most of the distribution problem is political, not economic — mainly local dictators and warlords who will not allow aid to be sent to their people other than through them, enabling them to skim off as much as they like and sell it for personal gain.)
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(Funny ... it sounds to me as though the ethanol has just cleaned your pipe for you. If you really want the water out of the ethanol afterwards, you could always distill the first few megalitres through the pipe; after that, there won't be enough water left to matter worth a damn, unless someone's accidentally plumbed a water main into your oil pipe. In which case you have bigger problems anyway.)
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