We calculate that growing lipidcane containing 20 percent oil would be five times more profitable per acre than
soybeans, the main
feedstock currently used to make biodiesel in the United States, and twice
as profitable per acre
as corn.
The U.S. government considers biodiesel to be carbon - neutral because the plants that are the sources of the
feedstocks for making biodiesel, such
as soybeans and palm oil trees, absorb carbon dioxide (CO2)
as they grow.
In fact, since the RFS expanded renewable fuel volumes in 2007, over 1/3 of corn production and nearly 1/4 of the oil produced from
soybeans have been diverted to biofuels.1
As the EPA points out, «because many biofuel
feedstocks require land, water, and other resources, research suggests that biofuel production may give rise to several undesirable effects.»