The Americans wants to produce 35 billion gallons of biofuel – that’s ethanol and biodiesel — each year by 2017. That means the U.S will have to produce 600 per cent more biofuel than it’s producing already.

Canada, following the American example, plans to ramp up production as well. Canada produces 1 billion litres of ethanol a year and our government wants to double that in three years. We produce 100 million litres of biodiesel but expectations are for 600 million litres annually by 2010. An ethanol boom indeed.

Despite the excitement, a University of Iowa and Brookings Insitution conference on energy last month, is arguing that ethanol is a good goal but only an interim solution. That’s because corn ethanol only yields about 30 per cent more energy than is consumed in production. "Cellulose ethanol is the real key," argues Michael O’Hanlon, a senior fellow at the Brookings Institution. Cellulosic ethanaol is made from plant biomass: praire grass, soft woods such as poplar and cornstalks, which means corn producers would still benefit.

"Cellulosic ethanol many need subsidies to be economical for a time – it’s a brand-new industry. But it will produce huge net benefits in terms of energy security eventually, quite likely going well beyond existing ethanol goals for 2017," O’Hanlon insists. "Unlike its corn-based cousin, cellulosic ethanol is estimated to provide anywhere from three to eight times as much energy as is required to make it. And a great deal of land presently underutilized could be dedicated to this purpose."

The rise of ethanol fuel is just beginning. "Today’s corn-based ethanol movement has its place," O’Hanlon says. "But it’s time to move beyond it."