Demand driven by Government

“On Dec 11 2007, President Bush signed the Energy Independence and Security Act of 2007, which will improve vehicle fuel economy and help reduce U.S. dependence on oil.

The Energy Independence and Security Act of 2007 will help reduce America’s dependence on oil by:

Increasing the supply of alternative fuel sources by setting a mandatory Renewable Fuel Standard (RFS) requiring fuel producers to use at least 36 billion gallons of biofuel in 2022. Although the President proposed a more ambitious alternative fuels standard in his State of the Union Address, the RFS in the bill he signed represents a nearly five-fold increase over current levels.”

Source: Fact Sheet: Energy Independence and Security Act of 2007

Government Madates the Supply from Cellulosic Biofuel

In the Energy Independence and Security Act of 2007 (H.R.6), the cellulosic biofuel mandates begin at 100 million gallons in 2010 and slowly progress to 1 billion gallons in 2012 and 7 billion gallons by 2018. In 2022, the mandate will reach its peak at 16 billion gallons of cellulosic biofuel (see the source).

In 2022, the government mandatory production v0lume of cellulosic biofuel will surpass the one of conventional biofuel which is defined as starch-based ethanol.

Data Source: Cellulose Provisions in H.R. 6, Renewable Fuels Association