Biofuel Pioneer Forsakes Renewables to Make Gas-Fed Fuels
Since 2006, Royal Dutch Shell Plc. has invested $375 million a year into Codexis inc., a biofuel company whose C.E.O. had resigned and is now renouncing the use of biofuels. The former C.E.O., Alan Shaw, has stated ” it’s impossible to economically turn crop waste, wood and plants like switchgrass into fuel.”
Defendants of biofuels say that it is too soon to make judgments about the whole industry since it is still in its infancy. Compared to Wind and Solar energy, biofuels are very young. There are still many other methods that fall under the biofuel category that are being developed. Also, there seems to be a temporary shift of funding from biofuels to gas due to the recent boom in oil commodities, which may be reducing support for the biofuel industry.
” Codexis fell 4 percent to $2.15 at 12:39 p.m. in New York, down 83 percent from the IPO price.”
The fact that there has been a huge boom in the amount of oil available makes a big difference to the energy industry. If oil is so prevalent there is no need to panic for finding new energy sources. Of course, environmental factors are still being considered, but in terms of profits, the need for new fuel sources doesn’t seem as immediate if the oil is available.