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U.S. Economic Impact of Advanced Biofuels Production: Perspectives to 2030
Continuing to build advanced biofuels production capacity can create thousands of new jobs throughout the economy, contributing to U.S. economic growth and increasing energy security.
Bio Economic Research Associates (3-24-09)
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According to a report released in late February by Bio Economic Research Associates (bio-era™), continuing to build advanced biofuels production capacity can create thousands of new jobs throughout the economy, contributing to U.S. economic growth and increasing energy security. U.S. Economic Impact of Advanced Biofuels Production: Perspectives to 2030 analyzes how growth of an advanced biofuels industry will impact four areas critical to U.S. economic recovery: job creation, economic output, energy security, and investment opportunity.
The new study’s results include:
• Direct job creation from advanced biofuels production could reach 29,000 by 2012; 94,000 by 2016; and 190,000 by 2022.
• Total job creation, accounting for economic multiplier effects, could reach 123,000 in 2012; 383,000 in 2016; and 807,000 by 2022.
•Direct economic output from the advanced biofuels industry is estimated to rise to $5.5 billion in 2012; $17.4 billion in 2016; and $37 billion by 2022.
• Taking into consideration the indirect and induced economic effects, the total economic output effect for the U.S. economy is estimated to be $20.2 billion in 2012; $64.2 billion in 2016; and $148.7 billion in 2022.
• Advanced biofuels production under the RFS could reduce U.S. petroleum imports by approximately $5.5 billion in 2012; $23 billion in 2016; and nearly $70 billion by 2022.
• The cumulative total of avoided petroleum imports over the period 2010–2022 would exceed $350 billion.
Brent Erickson, executive vice president of the Biotechnology Industry Organization (BIO) Industrial and Environmental Section, said, “The biotechnology and advanced biofuels industry is working to make commercial production of cellulosic biofuels a reality in the near future. There are more than 30 existing and planned cellulosic biorefineries set to begin production of advanced biofuels within the next few years. Many other projects and promising technologies are on the drawing board. These pioneer cellulosic biofuel facilities will prove that the technology works and that the industry can meet and exceed the goals established in the Renewable Fuel Standard. As oil prices rise, the need for domestically produced advanced biofuels should remain a priority for U.S. policymakers and consumers.”
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U.S. Economic Impact of Advanced Biofuels Production: Perspectives to 2030
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