With advanced technology being developed, cellulosic biomass, such as trees and grasses, are also used as feedstocks for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the United States and in Brazil. The energy costs for producing bio-ethanol are almost equal to, the energy yields from bio-ethanol. However, according to the European Environment Agency, biofuels do not address global warming concerns. Biodiesel is made from vegetable oils, animal fats or recycled greases. It can be used as a fuel for vehicles in its pure form, or more commonly as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles. Biodiesel is produced from oils or fats using transesterification and is the most common biofuel in Europe. Biofuels provided 2.7% of the world's transport fuel in 2010.
The advantage of this approach in the United States is that many states offer incentives to offset the cost of installation of a renewable energy system. In California, Massachusetts and several other U.S. states, a new approach to community energy supply called Community Choice Aggregation has provided communities with the means to solicit a competitive electricity supplier and use municipal revenue bonds to finance development of local green energy resources. Individuals are usually assured that the electricity they are using is actually produced from a green energy source that they control. Once the system is paid for, the owner of a renewable energy system will be producing their own renewable electricity for essentially no cost and can sell the excess to the local utility at a profit.
2010 was a record year for green energy investments. According to a report from Bloomberg New Energy Finance, nearly US $243 billion was invested in wind farms, solar power, electric cars, and other alternative technologies worldwide, representing a 30 percent increase from 2009 and nearly five times the money invested in 2004. China had $51.1 billion investment in clean energy projects in 2010, by far the largest figure for any country.
Besides the greening of fossil fuel and nuclear power plants, another option is the distribution and immediate use of power from solely renewable sources. In this set-up energy storage is again not necessary. For example, TREC has proposed to distribute solar power from the Sahara to Europe. Europe can distribute wind and ocean power to the Sahara and other countries. In this way, power is produced at any given time as at any point of the planet as the sun or the wind is up or ocean waves and currents are stirring. This option however is probably not possible in the short-term, as fossil fuel and nuclear power are still the main sources of energy on the mains electricity net and replacing them will not be possible overnight.
Electricity produced by wind generators can be used directly, as in water pumping applications, or it can be stored in batteries for later use. Wind generators can be used alone, or they may be used as part of a hybrid system, in which their output is combined with that of solar panels, and /or a fossil fuel generator. Hybrid systems are especially useful for winter backup of home systems where cloudy weather and windy conditions occur simultaneously.