The next generation of this biomass fuel could be cheaper, more plentiful and arriving sooner than you think.

NEW YORK (CNNMoney.com) – Cellulosic ethanol, the biofuel that differs from corn-based ethanol in that it can be made from pretty much any organic matter, has made an impression among people who matter.

Alan Greenspan, the revered former chairman of the Federal Reserve with a big distaste for irrational exuberance, recently sang its praises before a Congressional hearing on energy security. Greenspan said cellulosic ethanol is the only alternative energy source that could be produced in enough volume to make a dent in gas usage.

Full Article -

http://money.cnn.com/2006/06/21/news/econo...hanol/index.htm

If it is cellulose based it really could be made from ANY plant since they all use cellulose. From collected grass clippins to industrial sawdust waste! The big problem here is that there aren't enough refineries. And we know that the oil companies aren't going to convert any of their facilities over to make Ethanol. With Bill Gates and other investors starting to invest in Ethanol producing companies we may see results in 5-8 years but even then it will be a very small dent in the oil industry. We should also remember that most plastics are oil based and that decreasing the amount of imported oil that goes into making gas and other fuels could lead to reduced plastics costs.

If it is cellulose based it really could be made from ANY plant since they all use cellulose.  From collected grass clippins to industrial sawdust waste!  The big problem here is that there aren't enough refineries.  And we know that the oil companies aren't going to convert any of their facilities over to make Ethanol.  With Bill Gates and other investors starting to invest in Ethanol producing companies we may see results in 5-8 years but even then it will be a very small dent in the oil industry.  We should also remember that most plastics are oil based and that decreasing the amount of imported oil that goes into making gas and other fuels could lead to reduced plastics costs.

Do you mean to say increased plastic costs?

Because if not, I don't see a problem here.

Decreased:

less demand for oil = lowr price = lower price for plastics.

Decreased:

less demand for oil = lowr price = lower price for plastics.

Which is definately good.

Decreased:

less demand for oil = lowr price = lower price for plastics.

less demand for oil = lowered production = balanced production & demand and price remains the same

or

less demand for oil = oil producers get scared & lower production below demand at current price, creating a shortage, raising the price, and balancing production & demand, but at the higher price

In other words, ethanol production has absolutely no sure effect on oil product prices, except perhaps in the far, far distant future when oil would become very scare (or more realistically, the really convenient sources of oil become scarce).