A Biofuels Approach For the Inter-American Development Bank (original) (raw)

In the wake of the dramatic increase in oil prices over the past year, biofuels are receiving a notable increase in interest from policymakers, investors, and the public alike today. These fuels are made from organic matter and consist of two major typesethanol and biodiesel. Ethanol is produced by processing starch-or sugar-based crops, such as corn, wheat and sugar cane, through fermentation. It is used almost exclusively in "sparkignition" or "Otto-cycle" engines that traditionally use gasoline. In the countries of Latin America and the Caribbean (LAC), these are found primarily in light vehicles. Biodiesel is produced by processing a variety of vegetable oils-include soybean, palm, canola, castor, and jatropha. It is used in "compression-ignition" engines which utilize diesel oil today. In LAC, these are primarily found in heavier vehicles, including trucks and buses, as well as diesel generators.