What’s next in energy: Vinod Khosla

Venture capitalist Vinod Khosla is putting his bet on cellulosic ethanol. Here’s his answers to five questions about the future of energy.

NEW YORK (Fortune) — You got on the ethanol bandwagon early. What’s on tap for 2007?

This will be the year of cellulosic ethanol – fuel made from grasses, wood chips, and other underutilized biomass. New fuels like butanol will also come along. I wouldn’t be surprised to see biogasoline either. We’ll see biofuels move from their role as an additive to gasoline to a primary fuel for automobiles.

What still stands in ethanol’s way?

You’ll see critics, often funded by the petroleum interests, increase their attacks on biofuels through surreptitious PR campaigns, while publicly supporting these renewable fuels. We might even see oil prices manipulated down to thwart this transition, which is essential for our planet.

Fortune