The market for biofuels derived from crop residues such as straw and wood is "uncertain" as U.S. and European regulators consider changes in their renewable-energy policies, according to Anders Lau Tuxen, an energy strategist at Novozymes. The U.S. government's delay in deciding whether to increase the amount of ethanol in the country's fuel supply is leading investors to "hold back," Tuxen said.

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