Biofuel prospects analysed by investments specialist

Thu, 10 May 2007

An investments analyst has outlined the future prospects for companies that specialise in biofuels, socially-responsible investments specialists may be interested to learn.

Karina Litvack, head of governance and sustainable investment at financial services provider F&C Investments, has acknowledged that the first wave of biofuels encountered criticism for pushing up food prices and encouraging farmers to destroy forests to increase planting space.

However, he pointed out that the sector could experience a turnaround as a result of scientific developments.

In particular, the honing of chemical processes designed to break down waste from agricultural sources into usable energy could be significant for investments brokers , he said.

"From an investment perspective, the upwards pressure on crop prices as a result of competing demand for food and biofuels is likely [to] pressure the margins of companies using only human food crops," he concluded.

Recently, Cuban president Fidel Castro circulated a news article to various Cuban newspapers criticising perceived collaboration between Brazil and the US over biofuels.

In particular, Mr Castro argued that Brazil should have refused to increase biofuels production until the US agreed to lift restrictive trade tariffs.

add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Investments Newsletter

Investments Newsletter

Credit Crunch Savers

HSA Dental Plan
Get covered from £7.70 per month.
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Virgin Credit Card
0% APR on balance transfers for 15 months
Income Protection Insurance
Get an instant quote with the award winning company