International Sugar Journal

# Policy holds back biofuel capacity investment [Full subscriber]

Abstract Low crude oil prices which have made fossil fuels cheaper will continue to stifle new investment in the biofuels sector. While the spend on biofuels projects increased in 2016 to US$2.1 billion against US$1.5 billion in 2015, this was largely due to the fact, this was planned years before. Expansion in production capacity for both ethanol and biodiesel is expected to grow by 1-2%. Bulk of the investment in 2016, around US\$1.4 billion, will be mainly in the Americas in conventional fuel ethanol capacity. Jury is still out on cellulosic ethanol as new plants in the EU, US and…