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I have heard that when the whole picture is looked at, ethanol really isn't the "great green fuel" it is being trumpeted as. It takes significant energy for cultivation and the yeild is much less than say algae for biodiesel. On top of all that with the increase in food costs I personally find it unconscionable to use land that could be used for food production to produce fuels. If you think a few percent increase in basic foodstuffs is bad stateside wait till you are in the developing world where the percentage of income that pays for food is much higher. I cannot justify using land to grow biomass for fuel instead of food if it might mean folks on the other side of the world will not be able to eat because they cannot afford the increase in food costs and that DOES happen.
Biodiesel can apparently be produced in areas unfit for any other use. It you can grow pond scum there you can make biodiesel. There are companies right now working to produce bio-diesel in places like El Paso, TX
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