Producing energy from biomass can be cost competitive today in particular heat. However in many cases economic incentives are currently needed to off-set cost differences between bio-energy and fossil fuel-generated electricity and heat. Support measures should be backed by a strong policy framework which balances the need for energy with other important objectives such greenhouse-gas reduction food security biodiversity and socio-economic development. In addition new dedicated bio-energy plants are becoming increasingly important to meet growing demand for bio-energy electricity and heat. Conventional biofuel technologies include well-established processes that are already producing biofuels on a commercial scale. These biofuels commonly referred to as first-generation include sugar- and starch-based ethanol oil-crop based biodiesel and straight vegetable oil as well as biogas derived through anaerobic digestion. Advanced biofuel technologies are conversion technologies which are still in the research and development (R&D) pilot or demonstration phase commonly referred to as second- or third- generation.
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