Biodiesel: Freedom from Dependence on Fossil Fuels?

In view of the depleting oil reserves and exponential rise in petroleum prices, the search for alternative sources of fuel is very timely and important. The present paper addresses the underlying issues in biodiesel production from biomaterials and sustainable production and supply of first-generation biofuels, especially the one from jatropha. The agencies and research institutions involved in the production of biofuels and the national and international efforts made in this regard are discussed here. There is also a dire need of a step towards large-scale production and supply of second-generation biofuels, although in infant stage, to strengthen the world economy in general and Indian economy in particular. However, the production of biofuels are likely to have serious socio-economic implications especially to the lesser developed societies. This needs serious attention from policy makers and public at large

Cellulosic Biofuels Analysis: Economic Analysis of Alternative Technologies

The passage of U.S. laws mandating and subsidizing advanced cellulosic biofuels may spur the development of a commercial cellulosic biofuels industry. However, a cellulosic industry will only develop if the overall economics including government incentives render investment in the sector attractive to private investors.This study compares the profitability of three biofuel production types: grain based ethanol, cellulosic biochemical ethanol, and cellulosic thermochemical biofuels. In order to compare the current profitability of each of the production types, the Biofuels Comparison Model (BCM) was developed. The BCM is a spreadsheet model that estimates the net present value (NPV) for each production type given input and output prices, technical, and financial assumptions. The BCM can be updated to reflect the current profitability through embedded web price links. The study finds that grain, biochemical, and thermochemical production types are all currently unprofitable when subsidies and mandates are ignored. However, the grain based ethanol process is predicted to be the most profitable (lowest loss) compared to the cellulosic biofuels. When the 2008 Farm Bill subsidies are added to the BCM, all three production types are projected to be profitable. With the addition of the different subsidies, the cellulosic biofuels are estimated to have higher NPV’s than grain based ethanol. When compared on an energy equivalent basis, the estimated cost of producing grain ethanol is $114/bbl. crude oil equivalent, biochemical ethanol$141/bbl., and thermochemical gasoline $108/bbl.biofuels, cellulosic biofuels, corn ethanol, biofuel economics

A note on rising food prices

The rapid rise in food prices has been a burden on the poor in developing countries, who spend roughly half of their household incomes on food. This paper examines the factors behind the rapid increase in internationally traded food prices since 2002 and estimates the contribution of various factors such as the increased production of biofuels from food grains and oilseeds, the weak dollar, and the increase in food production costs due to higher energy prices. It concludes that the most important factor was the large increase in biofuels production in the U.S. and the EU. Without these increases, global wheat and maize stocks would not have declined appreciably, oilseed prices would not have tripled, and price increases due to other factors, such as droughts, would have been more moderate. Recent export bans and speculative activities would probably not have occurred because they were largely responses to rising prices. While it is difficult to compare the results of this study with those of other studies due to differences in methodologies, time periods and prices considered, many other studies have also recognized biofuels production as a major driver of food prices. The contribution of biofuels to the rise in food prices raises an important policy issue, since much of the increase was due to EU and U.S. government policies that provided incentives to biofuels production, and biofuels policies which subsidize production need to be reconsidered in light of their impact on food prices.Food&Beverage Industry,Markets and Market Access,Crops&Crop Management Systems,Economic Theory&Research,Renewable Energy

World markets for conventional and advanced biofuels over the next five years

Production of transport biofuels grew by just 2% in 2017. To achieve the 2030 SDS target, use of biofuels needs to triple, driven by cost reductions of advanced biofuels, widespread sustainability governance and more adoption in aviation and marine transport. This presentation provides an overview of the market prospects for conventional biofuels over the next five years. It would analyse the current status of deployment and costs for novel advanced biofuels. It would also draw comparisons with electric cars, the extent of their renewable electricity utilisation and decarbonisation potential. It would include the contribution of renewables to road transport demand over the next 5 years and focus on the main biofuels available to decarbonise road freight, now and in the long term. Finally, it will present a case study from India, focusing on ethanol-based chemicals

Biofuels : markets, targets and impacts

This paper reviews recent developments in biofuel markets and their economic, social and environmental impacts. Several countries have introduced mandates and targets for biofuel expansion. Production, international trade and investment have increased sharply in the past few years. However, several existing studies have blamed biofuels as one of the key factors behind the 2007-2008 global food crisis, although the magnitudes of impacts in these studies vary widely depending on the underlying assumptions and structure of the models. Existing studies also have huge disparitiesin the magnitude of long-term impacts of biofuels on food prices and supply; studies that model only the agricultural sector show higher impacts, whereas studies that model the entire economy show relatively lower impacts. In terms of climate change mitigation impacts, there exists a consensus that current biofuels lead to greenhouse gas mitigation only when greenhouse gas emissions related to land-use change are not counted. If conversion of carbon rich forest land to crop land is not avoided, the resulting greenhouse gas release would mean that biofuels would not reduce cumulative greenhouse gas emissions until several years had passed. Overall, results from most of the existing literature do not favor diversion of food for large-scale production of biofuels, although regulated production of biofuels in countries with surplus land and a strong biofuel industry are not ruled out. Developments in second generation biofuels offer some hope, yet they still compete with food supply through land use and are currently constrained by a number of technical and economic barriers.Energy Production and Transportation,Renewable Energy,Climate Change Mitigation and Green House Gases,Food&Beverage Industry,Environmental Economics&Policies

A site selection model to identify optimal locations for microalgae biofuel production facilities in sicily (Italy)

The lack of sustainability and negative environmental impacts of using fossil fuel resources for energy production and their consequent increase in prices during last decades have led to an increasing interest in the development of renewable biofuels. Among possible biomass fuel sources, microalgae represent one of the most promising solutions. The present work is based on the implementation of a model that facilitates identification of optimal geographic locations for large-scale open ponds for microalgae cultivation for biofuels production. The combination of a biomass production model with specific site location parameters such as irradiance, geographical constraints, land use, topography, temperatures and CO2 for biofuels plants were identified in Sicily (Italy). A simulation of CO2 saved by using the theoretical biofuel produced in place of traditional fuel was implemented. Results indicate that the territory of Sicily offers a good prospective for these technologies and the results identify ideal locations for locating biomass fuel production facilities. Moreover, the research provides a robust method that can be tailored to the specific requirements and data availability of other territories. © Research India Publications

Biofuels and economic development in Tanzania

Biofuels provide a new opportunity to enhance economic development in Tanzania. Drawing on detailed cost estimates, we develop a dynamic computable general equilibrium model to estimate the impact of different biofuel production scenarios on growth and poverty. Our results indicate that maximizing the poverty-reducing effects of a biofuels industry in Tanzania requires engaging and improving the productivity of smallholder farmers. Evidence shows that cassava-based ethanol production is more profitable than other feedstock options. Our findings also indicate that cassava generates higher levels of pro-poor growth than do sugarcane-based systems. However, if smallholder yields can be improved rather than expanding cultivated land, then sugarcane and cassava outgrower schemes can produce similar pro-poor outcomes. We conclude that in so far as the public investments needed to establish a biofuels industry in Tanzania are in accordance with national development plans, producing biofuels will contribute to achieving the country�s overall development objectives.Biofuels, Cassava, Computable general equilibrium (CGE) model, Growth, Poverty,

Life cycle assessment of biofuels from Jatropha curcas in West Africa: a field study

In recent years, liquid biofuels for transport have benefited from significant political support due to their potential role in curbing climate change and reducing our dependence on fossil fuels. They may also participate to rural development by providing new markets for agricultural production. However, the growth of energy crops has raised concerns due to their high consumption of conventional fuels, fertilizers and pesticides, their impacts on ecosystems and their competition for arable land with food crops. Lowinput species such as Jatropha curcas, a perennial, inedible crop well adapted to semiarid regions, has received much interest as a new alternative for biofuel production, minimizing adverse effects on the environment and food supply. Here, we used life-cycle assessment to quantify the benefits of J. curcas biofuel production inWest Africa in terms of greenhouse gas emissions and fossil energy use, compared with fossil diesel fuel and other biofuels. Biodiesel from J. curcas has a much higher performance than current biofuels, relative to oil-derived diesel fuels. Under West Africa conditions, J. curcas biodiesel allows a 72% saving in greenhouse gas emissions compared with conventional diesel fuel, and its energy yield (the ratio of biodiesel energy output to fossil energy input) is 4.7. J. curcas production studied is eco-compatible for the impacts under consideration and fits into the context of sustainable development

Understanding Biofuels Economic Impact Claims

There are several associations and groups producing estimates of job and other economic impacts attributable to biofuels production. This report deconstructs recent robust claims of job gains by biofuels advocates in the state of Iowa and concludes that the actual increase in employment in Iowa is much more modest.

Market Interactions, Farmer Choices, and the Sustainability of Growing Advanced Biofuels

Advanced biofuels such as cellulosic ethanol are of great interest for their potential to supply a significant portion of U.S. fuel needs plus advantages over corn grain-based ethanol. The sustainability of agriculture-based advanced biofuels depends on how farmers would respond in providing biomass feedstock, yet economic behavior by farmers has been under recognized by the science community. Focusing on markets and policy incentives, this research shows that farmers are unlikely to convert current grain cropland to grow a dedicated cellulosic biomass crop such as switchgrass. However, the financial incentives to harvest cellulosic biomass provided by the 2008 farm bill may stimulate corn production due to demand for corn grain for feed and ethanol and corn residues for advanced biofuels. The prospect of continuous, possibly expanding corn production for advanced biofuels raises the same environmental issues as for corn grain-based ethanol. To assure the environmental sustainability of advanced biofuels production, environmental policies are needed to complement existing bioenergy initiatives.biomass, energy, advanced biofuels, corn, land use, switchgrass, cellulosic ethanol, Environmental Economics and Policy, Production Economics, Resource /Energy Economics and Policy, Q42, Q12,