Science magazine has a nice overview on the current state of and possibilities within the biofuels market. The references at the end serve as a great primer on the market and potential. The ability to use biofuels with our current liquid fuels infrastructure and the mandates under EISA nearly guarantee that these technologies will be part of the long-term energy solution:
From Science:
In the United States, the Energy Independence and Security Act (EISA) of 2007 mandates the production of 16 billion gallons per year of cellulosic (plant-derived) biofuels by 2022. Along with 15 billion gallons/year of corn ethanol and 5 billion gallons/year of other renewable biofuels such as biodiesel, the goal is to replace 20% of current crude oil use in the United States in 15 years.
Hydrocarbons derived from biomass are attractive because of their high energy density and compatibility with existing energy infrastructure. If recent technological innovations result in competitive production costs, hydrocarbons rather than ethanol will likely be the dominant biofuel.
