Delivering the keynote address at the Wisconsin Bioenergy Initiative’s second annual summit, the CEO of Virent Energy Systems said the world’s current energy mix must change to reduce dependency on crude oil.

As part of the second annual Bioenergy Summit, the Madison and University of Wisconsin communities came together Wednesday afternoon for the common cause of understanding bioenergy and its future relevance to government policy and technology development.

Falicia Roper, WBI spokesperson, said the main purpose of the event was to inform people about what WBI is and how Wisconsin can place itself at the leading edge of bioenergy development.

Lee Edwards, Virent Energy Systems’ president and CEO, said he recognizes sustainable energy must be further researched and developed for energy consumption to branch beyond crude oil.

Edwards said by 2030 the world will need roughly 30 percent more energy than it uses today.

“We don’t have enough reserves to meet future demand,” Edwards said. “If demand stays flat, and we only take oil from known reserves, the world will have about 40 years of material to meet consumer demand.”

Edwards added the flow and major consumption of oil in the United States is largely related to ethanol.

“Ethanol is one of those fuels that I would say has positive attributes and limitations. … It takes a lot of investment,” Edwards said. “Not all engines can actually run on it, though consumers want fuel that can run all of their cars, boats, etc. With the expansion of the use of ethanol, the future of this could be put at risk.”

Edwards focused on investment and challenges that businesses will face. Duncan Basson, a graduate student in the UW entrepreneurship program, sees many business prospects with new sources of fuel.

“It is exciting to see alternative energy as an important business opportunity,” Basson said. “There are many challenges to this issue, and Virent is taking the chance to invest in new and innovative technology.”

These new technologies will help create alternatives to use energy in a more effective way. Edwards said he hopes to see the United States and specifically Wisconsin become global leaders in implementing this new type of energy.

He added the Midwest has a wealth of natural resources that can be developed into alternative fuel sources.

“We need to use biomass as the next strategic resource. It opens new market opportunities for agriculture, forestry and transportation sectors,” Edwards said.

WBI Director Troy Runge said there is a regional answer to this problem. The strengths of the Midwest lie in biomass, manufacturing capability and more specifically, UW’s world-class research systems and centers.

“We need to show what can be done,” Edwards said. “We can make gasoline from soluble sugar and compete with crude oil. What we say on paper can be deployed on a larger scale. … If policy and business come together, everyone can contribute to a greater success.”

The WBI’s summit continues tomorrow at the Pyle Center with a number of panel discussions and a speech by Gov. Jim Doyle.