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Biofuels: Emerging Developments and Existing Opportunities (Technical Insights)Published by: Frost & Sullivan Published: Dec. 19, 2002 - 121 Pages Table of Contents
AbstractBiofuels are alternatives for petroleum-based fuels. What is important about biofuels is that they are produced from domestic renewable resources. Fuel ethanol is the most widely used biofuels for transportation applications. Second to ethanol is biodiesel, which can be used as a blend with gasoline up to 10% ethanol (E10, gasohol) in any standard internal combustion engine, but above that, engine modification is needed. The market for biofuels is driven by the need for security of the energy supply and the recognition that greenhouse gas emissions are causing global warming. In the United States, the transportation sector is responsible for more than 70% of the petroleum consumed and one-third of the carbon dioxide emissions. Statistics are similar in Europe, where a Commission to the European Parliament put out a proposal to promote the use of biofuels for transport in November 2001, which introduced the objective of 20% substitution of alternative fuels in the road transport sector by the year 2020. The Commission issued the proposed directives in response to Kyoto Protocol emission reductions goals and to gain energy security for the members of the European Union. The production of fuel ethanol would not be cost competitive without government incentives. In Germany, where B100 (straight biodiesel) is tax free, biodiesel use topped 500 million gallons in 2001. The rest of Europe uses 2 to 5% biodiesel blends. The cost of producing biodiesel in Europe was around 500 Euro per 1000 liters in 2001, when the cost of petroleum-based diesel was 200 to 250 Euro per 1000 liters. Another factor has to be taken into account. It takes 1100 liters of biodiesel to replace 1000 liters of petroleum-based diesel. Bioethanol also faces a disparity in volume needed for the same energy output - it takes 1500 liters of ethanol to replace 1000 liters of gasoline. Challenges faced by the expanding market for both fuel ethanol and biodiesel include feedstock supply and cost competitiveness with petroleum-based fuels. In the case of bioethanol, the grains used for its production are also needed as food. For enough feedstock to be available for large-scale production of ethanol, cellulosic materials will have to be used. The technology for traditional fermentation is as old as civilization and essentially mature now, but converting cellulosic materials to sugars that can then be fermented to ethanol, is at the cutting edge. The cost of enzymes is a major problem. Biodiesel faces competition for the need to raise feedstocks on land that could be needed for food. In Europe the formula for set-aside areas, acres that can be used for non-food production, is tied to the import of soy meal for animal feed. A byproduct of producing biodiesel from rapeseed oil is a high protein animal feed, which reduces the need to import soy meal, therefore reducing the acreage set-aside for production of rapeseed oil. As a result, it is estimated that as much rapeseed will have to be grown on traditional food fields as on set-aside land in 2003. Get Full Details About This Report >> |
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