Biofuels and so forth are the topic of
Future 737, a thread I started about a year ago to keep up with current news stories on the subject. I had noticed that every so many months someone raises a question of this sort on APC, and the answer is best addressed by referring to news clips.
There is a very nice set of cover-story articles on this also in this month's American Institute of Aeronautics and Astronautics (AIAA)
Aerospace America magazine. One article is on new military jet fuels and the other on new commercial jet fuels. The articles are in print (only), so I cannot copy and paste them like I usually do, and I am terrible at typing, but as I have time I will type and post them in the 737 thread.