Continued support of R&D and initial commercialization is critical because sustained technological progress and commercial validation is a prerequisite to affordably producing the large volumes of ethanol considered in this study.

Policy incentives such as a federal cap and trade program, carbon taxes, excise tax credits and loan guarantees for cellulosic biofuels are important to mitigate the risk of oil market volatility. The domestic investment for biofuels production is projected to be virtually the same as the investment required to sustain long-term domestic petroleum production.

Sandia's analysis also included land use, water availability, energy used to produce cellulosic biomass, transportation of feedstocks and other potential leverage points for the development and use of cellulosic biofuels.

(Xinhua News Agency February 11, 2009)