In five years, second-generation technology may very well be developed enough to challenge corn (and the other feedstocks except sugarcane), but it would just be coming on-stream.Investors in other first-generation feedstocks need to invest in technologies that increase yield and processing efficiency, build (secure) markets and increase their experience in the market.This would continue to put pressure on the price that second-generation technology has to beat (and increase the time before significant second generation investments make sense). On the flip side, investors in second-generation technology need to seriously think about entering the markets. With the run on capacity, waiting too long will further increase entry costs.
