Markets
The market for advanced biofuels, which includes cellulosic ethanol and renewable FT diesel, is mandated under the 2007 U.S. RFS to grow to 21 billion gallons per year by 2022, representing a market opportunity of approximately $50 billion. The strong political support behind this mandate is being driven by several key factors, including the impact of long term increasing oil prices, the benefits of ethanol and renewable diesel in reducing transportation fuel prices, the limitations of corn-based ethanol, increased awareness of and concern over global climate change, and a desire for improved energy security. Congress has established several tax credit programs to support to growth of the cellulosic biofuels . Notably, the Food Conservation and Energy Act of 2008 provides for a $1.01 per gallon cellulosic biofuels producer’s tax credit through December 2012. ClearFuels cellulosic ethanol and renewable FT diesel facilities qualify for this tax credit and will meet the requirements of moving away from corn-based ethanol products to those made from cellulosic type feedstock.
