First-generation biofuels from sugar, starch, and vegetable oil did not achieve the greenhouse gas emission reductions hoped for. Some also had the added disadvantage of competing for land with food production. Growing "food" like corn crops to produce ethanol for vehicles has been heavily criticized. Second-generation biofuels using non-food crops or sources such as forestry residues, municipal waste, algae, biomass grown on non-arable land, or certified wood, are a more sustainable source of biofuel production. However, very large production plants are required to make production costs competitive.

Challenges

Reaching economies of scale for biofuels can cause logistical problems. Biomass feedstock is often located in the countryside, while production plants are frequently close to ports to facilitate transport by water.  The transportation of feedstock from the countryside to the production plant can cause heavy traffic, producing adverse social and environmental effects.

This is why the optimal geographical location and size of the production plant with respect to feedstock and demand location needs to be determined, prior to plant investment and construction, and this can be done using BeWhere.