Price and demand for world oil increased in 2004. In 2004, 64% of oil consumed in the US was imported.  Energy dependence is a concern shared by many countries and governments, prompting expanded production and use of domestic renewable fuels.  These fuels are a reliable source of energy, generating economic and environmental benefits.

Blending ethanol, including cellulosic ethanol, with gasoline extends the fuel supply, reduces the amount of oil needed by hundreds of thousands of barrels each day, and contributes to cost reduction.

Cellulosic ethanol can be part of an overall solution impacting energy security by reducing the amount of gasoline consumed and substituting a domestically produced biofuels alternative. Using Iogen yields, 191 million tons of cellulosic material equates to the production of approximately 53 billion litres or 14 billion gallons of cellulosic ethanol or, on an energy basis, approximately 10% of US gasoline consumption.