Article at a glance:

Betting on biofuels

• The emerging biofuel industry is attractive to many companies but full of uncertainty.
• Major factors affecting the industry’s profitability—feedstock costs, regulation, and technologies—are in flux.
• Despite these uncertainties, waiting to enter might be costly because resources are in short supply.
• Companies that decide to enter now will have to mitigate risk by hedging their bets and building relationships that could help reduce uncertainty and volatility.