The need for innovative financing for first of a kind low carbon fuel plants
The costs of many new advanced biofuel options are currently much higher than those of their fossil fuel competitors, and also of conventional biofuels, on an energy basis. As has been seen for other technologies, there is probably significant potential for cost reduction due to economy of scale, in combination with significant learning effects for developing the new state of the art technologies. But, the situation for biofuels is perhaps more complex than for fossil technologies as feedstock cost is linked to the sustainable quantities available on a particular market and there is also a more limited scope for reduction in feedstock costs. Therefore dedicated and innovative financing tools are needed to facilitate the development and market deployment of such innovative technologies. The session will address the needs of the industry and the type of financing tools that can be effective for advanced biofuel technologies.