Will Biofuels Be Better For Plastics Than For Vehicle Fuel?

Turn the clock back to 2007--when Congress passed the U.S. Energy Independence and Security Act--and biofuels like ethanol were apparently poised to solve the country's energy problems.

A lack of public interest, an inability to develop cellulosic sources, and the rise of viable plug-in electric cars have considerably dampened enthusiasm for ethanol since then.

RELATED: Flex-Fuel Vehicles And E85: Why Ethanol Isn't Making Its Numbers

So producers of biofuels are now turning to a new market: plastics.

According to a recent report by The New York Times, biofuel companies that originally planned to produce vehicle fuel may switch to making plastic bottles and other products instead.

Increased ethanol production is required to meet government mandates, but low demand for the fuel from consumers is leading companies now in production to seek out other uses for their alcohol fuel.

The Energy Independence and Security Act includes a Renewable Fuels Standard that mandates a certain amount of ethanol be introduced into the national fuel supply.

Producers are still awaiting a final decision from the Environmental Protection Agency on whether to cut that amount by more than 40 percent.