ENV-10-29 Why Biofuel Projects Make Cents

Description:

This paper explores and discusses liquid biofuel projects, including both bioethanol and biodiesel, from a due diligence viewpoint. Multiple technologies, both proven and under development, are discussed. However, the primary discussion focuses on the mechanisms and requirements associated with obtaining financing for a biofuel project. This discussion poses and answers the following questions: What is a biofuel? What is a liquid biofuel project? What types of biofuel project financing options are available? What is wrong with biofuel projects? What is right with biofuel projects? The paper provides examples of successful and unsuccessful biofuel projects (the names have been changed to protect anonymity) to illustrate the answers to these questions. The paper concludes with recommendations for prospective developers of biofuel projects.