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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.
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