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Biofuels efficiency.

  1. Jun 26, 2011 #1
    I note there was talk in the USA about ending the subsidies>

    There is a link here:-

    http://www.mcphersonsentinel.com/news/x2108616414/Fight-over-ethanol-brewing-in-D-C [Broken]

    Also here:-

    A licensed fuel supplier who blends biodiesel or green diesel with diesel fuel may claim an income tax credit of $0.05 per gallon for fuel containing at least 5% biodiesel or green diesel.

    Seems to me they could be getting a $1 subsidy for every gallon of biofuel, which is a fair bit.

    Gas prices in the USA are about $3 to $3.50 a gallon, so a $1 is a substantial subsidy.
    I am not even sure if it is the only subsidy, it can be complicated.
    I am not sure if the blenders subsidy is the same as the refiners subsidy so it could be more.

    Another link here about subsidies


    Anyhow it seems to be biofuels could not survive without subsides, it is difficult to get figures because of conflicting information, some from people with vested interests.

    So are biofuels 'viable'? If not why are we using them, especially as they push up food prices (by different amounts depending on who you speak to).

    I understand Brazilian biofuels are also subsidised.

    Anyhow I am looking for more definitive figures/studies about subsidies and about viability.
    Last edited by a moderator: May 5, 2017
  2. jcsd
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