Biocrude is made by taking fibrous material, such as wood or corn husks, and heating it until it becomes a substance similar to crude, which can then be turned into gasoline or diesel.
Biocrude differs from ethanol, an alcohol fuel made by distilling sugar. A major advantage of biocrude-based fuels is that it can be incorporated into existing refineries and transported through existing pipelines. Ethanol's growth has been hampered in part because its corrosive nature prevents it from being shipped through existing pipelines.
Antoher potential advantage for biocrude is that it does not rely on corn, whose price has gone up over the past year, while a growing supply of ethanol has helped push down its price.
Source: WSJ, 28/09/07
