The news in biofuels appears to be taking off. In my last post, I mentioned Jatropha, a plant that can produce an alternative fuel, and one in which BP (BP) is investing. Today's subject is using a fungus to make biodiesel. That's right. Wired reports on the latest in the push toward alternative fuel sources:
Instead of mixing the ingredients and heating them for hours, the chemical engineers pass sunflower oil and methanol through a bed of pellets made from fungal spores. An enzyme produced by the fungus does the work — making biodiesel with impressive efficiency.
One of the key issues with producing alternative energy is the efficiency factor. Until now, the energy it took to make biodiesel was rather large and prohibitive. It now looks like biodiesel could cost less than originally thought.
Advancements like this are what will pave the way to alternative energy business models that are successful and that will become attractive to other investors. Big Oil may not yet be eager to invest in biodiesel made with fungus, but when word gets out, plenty of companies will be. It's amazing how many energy alternatives Mother Nature is presenting. And, with the efficiency of renewable and alternative energy sources, companies like Exxon (XOM) that don't believe in anything but the oil energy model, may find themselves left behind.
Disclosure: BP is the only Big Oil stock I am investing in.