How can second and third generation biofuels be made more commercially viable?

Second and third generation biofuels are typically biofuels (ethanol, biodiesel or other biofuels) derived from non-food biomass sources such as bamboo, agri waste such as paddy straw and corn cobs, and even from algae. Such biofuels use processes and technologies more advanced than those for first-generation biofuels, and hence, in general, are more expensive. While the second and third generation biofuels thus bring about the benefit of higher feedstock sustainability, they in some cases suffer from significant technological (immature and uncertain technology) and in many cases economic (very high cost) bottlenecks. What are the innovations in technologies and solutions that can make the next generation biofuels more commercially viable and dramatically increase their production and use?

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