With record-high oil prices, the momentum for biofuels is gathering. Suzanne Hunt, manager of the biofuels project at the Worldwatch Institute, discusses the status and future of ethanol and biodiesel.
 | "Success is highly dependent on the price of oil."Suzanne Hunt, biofuel expert at the Worldwatch Institute (Photo: Worldwatch Institute) |
What is driving current global investor and government interest in biofuels?
There are many factors, but among the most important are high oil prices, global security concerns, and the pressing need to address global climate change.
Also, there is the need to provide new markets and new opportunities for farmers - especially in light of the increased pressure on developed countries to reduce their traditional agricultural subsidies - and, in some instances, higher emissions standards.
 | Picture Gallery (click the image to start)See five of the most important plants, where they are grown, and if they help fight climate change (Photo: Reuters) |
What is the status of the biofuels industry in Europe and North America?
In terms of total production, biofuel production in the United States is much greater, however in terms of the portion of transport fuels that biofuels supply in each place, it is not dramatically different.
In Europe the dominant biofuel is biodiesel (EU member states produce about 89 percent of the world's biodiesel) while ethanol is the dominant biofuel in the United States. Biodiesel provides about one percent of all transport fuel in Europe, while ethanol provides two to three percent of light-vehicle transport fuel in the United States.
How many people who might be interested in using biodiesel or ethanol actually have access to it?
As your question implies, availability is indeed a problem. The highest blend of ethanol available in the United States is E85 (85 percent ethanol blended with 15 percent gasoline), and it is available at less than one percent of fuel stations. Compare this to Brazil where about 90 percent of the more than 30,000 fuel stations provide "neat" ethanol (although it generally contains about four percent water).
However, I think that we can expect the availability of these fuels to improve dramatically in the United States and elsewhere in the future. Some major retailers like Wal-mart (yes, they own several hundred fuel stations in the U.S.) are seriously considering selling biofuels at their stores. Also, car companies like Ford and General Motors have new campaigns centered on flex-fuel vehicles (FFVs, able to run on various blends of gasoline and ethanol). There are also other ways to get access to biofuels besides purchasing them at commercial fuel stations. For example, some people make their own biodiesel from waste vegetable oil from restaurants. Others form cooperatives with neighbors and buy it in bulk from fuel supply companies.
The use of ethanol as fuel has been quite widespread in Brazil for a few decades now. What are some of the lessons that can be learned from Brazil's experience with biofuels?
I think Brazil provides a very important example of what nations can accomplish when governments make a genuine commitment to reducing petroleum dependence. One important lesson for governments is to be patient with their support. Long-term, sustained and consistent policies are necessary. More specifically, mandates and tax incentives were critical to Brazil's success, as was technology transfer among Brazilian researchers and researchers in many other nations (especially as the sugar cane varieties were being developed).
Lessons should also be learned from the problems that they experienced. For example, the importance of flex-fuel vehicles is highlighted by the times in Brazil's history when drivers who owned ethanol-only vehicles were stranded when ethanol availability declined. Among other things, "success" is highly dependent on the price of oil.
One of the problems governments face in implementing biofuel initiatives is that they require close coordination across government agencies/ministries, which are often infamous for their inability or unwillingness to coordinate effectively.
It is important that Brazil, a developing country, has been the leader in biofuels. Many say, "well, but Brazil is unique". Brazil is indeed uniquely well situated to produce ethanol, however, there exists a large potential for bioenergy production in many countries around the world that has yet to be tapped.
What are some of the obstacles standing in the way of widespread adoption of biodiesel and ethanol?
There are a number of hurdles ranging from technical obstacles to political barriers, to resource constraints, to lack of public awareness. Protectionism in the form of import tariffs and other barriers is inhibiting biofuels trade. Most biofuels are currently used in the countries where they are produced. Only about ten percent of biofuels are traded across boarders right now, but trade will become increasingly important as time passes.
As the technical hurdles to the next generation of biofuels (made from cellulosic feedstock such as forestry waste, agricultural residues, and municipal waste) are overcome and these fuels become commercially viable, the costs will decrease and the potential for production will increase dramatically, allowing for a global biofuels market.
There is a need for internationally agreed upon fuel quality standards. Other infrastructural issues include engine and emissions control technology compatibility, warrantee issues, the availability of FFVs in the case of ethanol, and the integration of biofuels into fuel supply chains. In many instances, oil companies have been resistant to blending biofuels with their products.
Will biofuels be eclipsed by other technologies, such as hydrogen fuel cells?
The barriers to hydrogen and fuel cells are much, much bigger, including very high costs, technical hurdles, the need for new infrastructure etc. Even in the car and energy industries, executives generally agree that hydrogen fuel cells are still decades and many billions of dollars away. We are more likely to see semi-electric cars well before we see hydrogen-fueled cars, and this would still not eliminate the use of liquid biofuels.
The most likely technology to "eclipse" biofuels as a new fuel is efficiency - more efficient urban planning, public transit, much lighter cars, and, already, hybrid electric cars.
editor: Valdis Wish
publishing date: June 6, 2006
