Biofuel revolution

Today I had lunch with the CEO of a biofuel company that I invested in. While my professional life so far took place primarily in the Internet Industry, I have been following the biofuel space for a while with great excitement. This is not  only an industry with tremendous potential to generate great returns but given the right technologies being used, it could help controlling global warming and the political turmoils that we see already unraveling as a world hooked on oil is realizing that its demand cannot be fulfilled.

Jatropha plantNow there are many different biofuel crops. A lot of biofuel is made out of food crops (Corn, wheat) which critics say are driving up food prices around the world. Therefore those biofuels are argued to be unethical as they lead to competition between the transportation/energy needs of the developed world versus the primary need of feeding the hungry in the developing world. Other companies generate biofuel out of non-food crops (e.g. sugar cane) that are however planted on soil that would be able to support food crops as well – so not much is gained.

However there are so called 2nd generation fuel crops that grow on ground that would not be suitable for food crops. This means that they do not compete with food crops and will allow farmers to use land that was of little use so far. Castor and Jatropha are the two fuel crops that are being used by this company mentioned above. According to what I heard, it is amazing how much demand there is right now for biofuel made from those two plants. But there are only few companies that are able to deliver this fuel. Luckily  my investment is positioned quite well in that game – it will be exciting to see how well they will be able to leverage that position in the next 12 month.

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1 Comment »

  1. dragonmage06 said

    That is very exciting indeed! I truly hope that we’ll start investing in different sources of biofuel as a way to solve our energy crisis. After all, relying on one source for so long isn’t working so well now…

    I’m glad I stumbled onto your blog!

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