Biofuels: One Answer to Future Energy Needs

People have been making alcohol out of food since before recorded history began. Archaeological evidence shows that people in Jiahu, China, were producing mixed fermented beverages from rice, honey, grapes, and hawthorn berries as early as 7000 BC!

And alcohol burns! That means variations, including vegetable oils or ethanol from corn can be used to fuel everything from Model Ts to supersonic jets!

That’s worth taking a deeper look.

Offering Insights

I am extremely excited about a white paper we have just released studying the development of alternative fuels for types of transportation not suited for electric power. I learned a lot from this in-depth study, and I’m sure you will too.

Modern biogas plant with anaerobic digesters processing organic waste into renewable energy, surrounded by green crops under blue sky.

Imagine this – when Rudolf Diesel (yes, that Diesel!) unveiled his engine in 1900, he used peanut oil as the fuel. Just eight years later, Henry Ford used a mixture of ethanol and gasoline to power the first Model Ts.

Making fuel from corn is relatively easy because the vegetable has lots of starch and sugar – the basic building blocks of biofuel. Other plants, plant waste and used oil all have similar properties and are just waiting for someone to turn them into fuel!

Path to Sustainability

Biofuels didn’t start out as a solution to climate change. In the beginning, it was more a matter of finding a use for surplus feedstock and plant waste. When it was discovered that engines could run on ethanol and other biofuels, it was a real Eureka moment!

Ethanol came to the rescue in World War I and World War II, when gasoline and oil were in short supply. A win-win was created in the 1970s, when an oil crisis coincided with a corn surplus – the government began paying tax incentives for ethanol production!

Air pollution from burning carbon (fossil fuels) became an issue as the 21st century arrived, and research into various biofuels accelerated. You might say the crisis energized an innovative solution. At least I say that!

Replacing Gas and Oil

We are burning up the limited supply of oil, coal, etc., and polluting our environment while we’re at it. That’s not exactly a plan for a long and healthy future.

Collage of renewable energy sources including solar panels under sunlight, geothermal power plant with steam emissions, and wind turbines generating clean energy, highlighting sustainable energy solutions and green infrastructure.

Sustainable alternatives are out there. We’re doing a good job developing solar, wind, even geothermal options for generating electricity. But there are some uses, primarily in transportation, where electricity might not be a viable solution.

There are sustainable options there. And developing them can bring prosperity to the struggling rural and agricultural parts of our country.

In addition to growing and collecting the organic basis for biofuels, refining plants located near farms creates jobs. In addition to private financing – think American Lending Center’s EB-5 programs – government incentives including tax credits, loans and grants are available for the asking. Our white paper talks about “green regional centers” as hubs for future jobs and clean energy. It is the wave of the future!

Specific Uses

I drive an electric car. It is great to be able to drive past those $5 a gallon gas stations and plug in at home or at work!

But long-distance truckers don’t have that same easy option. And there’s not a charging station in the middle of the ocean for cargo ships, nor can transcontinental jets refresh their batteries halfway across the country!

Modern biofuel fueling station with pumps for diesel, HVO100, biodiesel, and AdBlue, supporting renewable fuel use in transportation.

Enter biofuels.

There are four primary types of biofuels being developed today – ethanol, biodiesel, renewable diesel, and Sustainable Aviation Fuel (SAF). There’s a different recipe for each, with different ingredients and different ways they are “cooked.” I see the ALC white paper as a sort of cookbook, with the impact of the final products added. That’s fun!

Win-Win Concepts

Our country’s agriculture industry faces many challenges, including just making ends meet in what can be a tough economy. Successful farmers are caught in a Catch-22: be more efficient and produce more, and the price falls. So providing raw material for biofuels, including the waste portions of plants, can offer a new market. A new source of revenue is always a win!

Test tubes filled with green algae biomass and organic materials for biofuel research, representing algae-based renewable energy, sustainable biofuel production, and clean energy innovation.

But you can’t just stuff surplus cabbage into an engine. Processing requires industry, which requires workers, which improves the economy. Putting refineries near farms reduces transportation costs and creates jobs where they are needed.

That’s a win-win!

Another sustainable win-win is taking what’s left over from the first use of organics – food waste, used cooking oil, even solid human waste – and making biofuel out of it. The science already exists, and the processes are getting refined (pun intended) nearly every day. Energy from waste is a dream come true!

Lots of Factors

The Market Study Report white paper takes an in-depth look at four types of biofuel – how they are created, what they are capable of doing and what it will take for them to become viable in the market. It analyzes everything from the science to the economics of investment in the industry.

Two areas stand out for me. The potential for new job creation driving economic growth and the positive impact on the environment by reducing pollution is truly exciting!

ALC has been a big supporter of innovative technology for clean energy for a long time. Biofuel is another great solution to a number of problems we face as a country – as a world. That makes it a great area for investment in my book!

This white paper is a critical look at how biofuels are poised to become a cornerstone of 21st-century infrastructure — and a vital instrument in the global response to climate change. It will be a key in building our American dream. Read the paper here.

John Shen

CEO & Founder

American Lending Center


About American Lending Center:

American Lending Center Holdings (ALCH) manages 14 EB-5 regional centers that may sponsor projects anywhere in the continental United States and Hawaii. Since 2009, ALCH has raised EB-5 capital for over 100 projects in 31 states, including I-956F approvals from USCIS of 29 projects. ALCH has been featured on the Inc. 5000 list of “Fastest-Growing Private Companies in America” for five consecutive years (2020–2024) and was also ranked among “America’s Fastest Growing Companies” by Financial Times in 2021, 2022, 2023, and 2025.

American Lending Center LLC (ALC), a mission-driven California-regulated lender, is a licensed SBA 7(a) and SSBCI lender. Together, ALCH and ALC have supported the creation or retention of over 140,000 jobs in the U.S. economy, underwriting impactful projects that foster economic growth.

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