Biofuels

Directive on the Promotion of the use of biofuels and other renewable fuels for transport

The Directive on the Promotion of the use of biofuels and other renewable fuels for transport, officially 2003/30/EC and popularly better known as the biofuels directive is a European Union directive for promoting the use of biofuels for EU transport. The directive entered into force in May 2003, and stipulates that national measures must be taken by countries across the EU aiming at replacing 5,75 % of all transport fossil fuels (petrol and diesel) with biofuels by 2010.

The directive also called for an intermediate target of 2 % by 31 December 2005. The target of 5,75% is to be met by 31 December 2010. The percentages are calculated on the basis of energy content of the fuel and apply to petrol and diesel fuel for transport purposes placed on the markets of member states. Member states are encouraged to take on national "indicative" targets in conformity with the overall target.

On January 14 2008 the EU Environment Commissioner Stavros Dimas announced the EU is rethinking its biofuel program due to environmental and social concerns and new guidelines must ensure that EU targets are not damaging. The EU official was particularly concerned about the impact of biofuels on rising food prices, rainforest destruction, notably from palm oil production and concern for rich firms driving poor people off their land to convert it to fuel crops. On January 18 2008 the UK House of Commons Environmental Audit Committee raised similar concerns, and called for a moratorium on biofuel targets. This position echoes the stance of many non-governmental organisations and environmentalists.

On 2008-04-29, Friends of the Earth (FOE) Europe released a report stating that oil companies are falsely claiming that the target proposed by the European Commission in revisions to the Fuel Quality Directive is unachievable.

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Issues relating to biofuels

There are various current issues with biofuel production and use, which are presently being discussed in the popular media and scientific journals. These include: the effect of moderating oil prices, the "food vs fuel" debate, carbon emissions levels, sustainable biofuel production, deforestation and soil erosion, impact on water resources, human rights issues, poverty reduction potential, biofuel prices, energy balance and efficiency, and centralised versus decentralised production models.

The International Energy Agency's World Energy Outlook 2006 concludes that rising oil demand, if left unchecked, would accentuate the consuming countries' vulnerability to a severe supply disruption and resulting price shock. The report suggested that biofuels may one day offer a viable alternative, but also that "the implications of the use of biofuels for global security as well as for economic, environmental, and public health need to be further evaluated".

Food vs fuel is the dilemma regarding the risk of diverting farmland or crops for biofuels production in detriment of the food supply on a global scale. The "food vs. fuel" or "food or fuel" debate is internationally controversial, with good-and-valid arguments on all sides of this ongoing debate. There is disagreement about how significant this is, what is causing it, what the impact is, and what can or should be done about it.

Biofuels and other forms of renewable energy aim to be carbon neutral or even carbon negative. Carbon neutral means that the carbon released during the use of the fuel, e.g. through burning to power transport or generate electricity, is reabsorbed and balanced by the carbon absorbed by new plant growth. These plants are then harvested to make the next batch of fuel. Carbon neutral fuels lead to no net increases in human contributions to atmospheric carbon dioxide levels, reducing the human contributions to global warming. A carbon negative aim is achieved when a portion of the biomass is used for carbon sequestration. Calculating exactly how much greenhouse gas (GHG) is produced in burning biofuels is a complex and inexact process, which depends very much on the method by which the fuel is produced and other assumptions made in the calculation.

Carbon emissions have been increasing ever since the industrial revolution. Prior to the industrial revolution, our atmosphere contained about 280 parts per million of carbon dioxide. After burning coal, gas, and oil to power our lives, the concentration had risen to 315 parts per million. Today, it is at the 380 level and still increasing by approximately two parts per million annually. During this time frame, the global average temperature has risen by more than 1°F since carbon dioxide traps heat near the Earth’s surface. Scientists believe that if the level goes beyond 450 parts per million, the temperature jump will be so great that we will be faced with an enormous rise in sea level due to the melting of Greenland and West Antarctic ice sheets.

The carbon emissions (Carbon footprint) produced by biofuels are calculated using a technique called Life Cycle Analysis (LCA). This uses a "cradle to grave" or "well to wheels" approach to calculate the total amount of carbon dioxide and other greenhouse gases emitted during biofuel production, from putting seed in the ground to using the fuel in cars and trucks. Many different LCAs have been done for different biofuels, with widely differing results. The majority of LCA studies show that biofuels provide significant greenhouse gas emissions savings when compared to fossil fuels such as petroleum and diesel. Therefore, using biofuels to replace a proportion of the fossil fuels that are burned for transportation can reduce overall greenhouse gas emissions. The well-to-wheel analysis for biofuels has shown that first generation biofuels can save up to 60% carbon emission and second generation biofuels can save up to 80% as opposed to using fossil fuels. However these studies do not take into account emissions from nitrogen fixation, deforestation, land use, or any indirect emissions.

Both of the Science studies highlight the need for sustainable biofuels, using feedstocks that minimize competition for prime croplands. These include farm, forest and municipal waste streams; energy crops grown on marginal lands, and algaes. These second generation biofuels feedstocks "are expected to dramatically reduce GHGs compared to first generation biofuels such as corn ethanol". In short, biofuels done unsustainably could make the climate problem worse, while biofuels done sustainably could play a leading role in solving the carbon challenge.

Responsible policies and economic instruments would help to ensure that biofuel commercialization, including the development of new cellulosic technologies, is sustainable. Sustainable biofuel production practices would not hamper food and fibre production, nor cause water or environmental problems, and would actually enhance soil fertitlity. Responsible commercialization of biofuels represents an opportunity to enhance sustainable economic prospects in Africa, Latin America and impoverished Asia.

Large-scale deforestation of mature trees (which help remove CO2 through photosynthesis — much better than does sugar cane or most other biofuel feedstock crops do) contributes to un-sustainable global warming atmospheric greenhouse gas levels, loss of habitat, and a reduction of valuable biodiversity. Demand for biofuel has led to clearing land for Palm Oil plantations. In Sumatra and Borneo, over 4 million hectares of forest have been converted to palm farms and tens of millions more hectares are scheduled for clearance in Malaysia and Indonesia.

A portion of the biomass should be retained onsite to support the soil resource. Normally this will be in the form of raw biomass, but processed biomass is also an option. If the exported biomass is used to produce syngas, the process can be used to co-produce biochar, a low-temperature charcoal used as a soil amendment to increase soil organic matter to a degree not practical with less recalcitrant forms of organic carbon. For co-production of biochar to be widely adopted, the soil amendment and carbon sequestration value of co-produced charcoal must exceed its net value as a source of energy.

Increased use of biofuels puts increasing pressure on water resources in at least two ways: water use for the irrigation of crops used as feedstocks for biodiesel production; and water use in the production of biofuels in refineries, mostly for boiling and cooling.

In many parts of the world supplemental or full irrigation is needed to grow feedstocks. For example, if in the production of corn (maize) half the water needs of crops are met through irrigation and the other half through rainfall, about 860 liters of water are needed to produce one liter of ethanol. However, in the United States only 5-15% of the water required for corn comes from irrigation while the other 85-95% comes from natural rainfall.

In the United States, the number of ethanol factories has almost tripled from 50 in 2000 to about 140 in 2008. A further 60 or so are under construction, and many more are planned. Projects are being challenged by residents at courts in Missouri (where water is drawn from the Ozark Aquifer), Iowa, Nebraska, Kansas (all of which draw water from the non-renewable Ogallala Aquifer), central Illinois (where water is drawn from the Mahomet Aquifer) and Minnesota.

Formaldehyde, Acetaldehyde and other Aldehydes are produced when alcohols are oxidized. When only a 10% mixture of ethanol is added to gasoline (as is common in American E10 gasohol and elsewhere), aldehyde emissions increase 40%. Some study results are conflicting on this fact however, and lowering the sulfur content of biofuel mixes lowers the acetaldehyde levels. Burning biodiesel also emits aldehydes and other potentially hazardous aromatic compounds which are not regulated in emissions laws.

Many aldehydes are toxic to living cells. Formaldehyde irreversibly cross-links protein amino acids, which produces the hard flesh of embalmed bodies. At high concentrations in an enclosed space, formaldehyde can be a significant respiratory irritant causing nose bleeds, respiratory distress, lung disease, and persistent headaches. Acetaldehyde, which is produced in the body by alcohol drinkers and found in the mouths of smokers and those with poor oral hygene, is carcinogenic and mutagenic.

The European Union has banned products that contain Formaldehyde, due to its documented carcinogenic characteristics. The U.S. Environmental Protection Agency has labeled Formaldehyde as a probable cause of cancer in humans.

Brazil burns significant amounts of ethanol biofuel. Gas chromatograph studies were performed of ambient air in São Paulo Brazil, and compared to Osaka Japan, which does not burn ethanol fuel. Atmospheric Formaldehyde was 160% higher in Brazil, and Acetaldehyde was 260% higher.

A number of environmental NGOs campaign against the production of biofuels as a large scale alternative to fossil fuels. For example, Friends of the Earth state that "the current rush to develop agrofuels (or biofuels) on a large scale is ill-conceived and will contribute to an already unsustainable trade whilst not solving the problems of climate change or energy security". Some mainstream environmental groups support biofuels as a significant step toward slowing or stopping global climate change. However, supportive environmental groups generally hold the view that biofuel production can threaten the environment if it is not done sustainably. This finding has been backed by reports of the UN, the IPCC, and some other smaller environmental and social groups as the EEB and the Bank Sarasin, which generally remain negative about biofuels.

As a result, governmental and environmental organisations are turning against biofuels made in a non-sustainable way (hereby preferring certain oil sources as jatropha and lignocellulose over palm oil) and are asking for global support for this. Also, besides supporting these more sustainable biofuels, environmental organisations are redirecting to new technologies that do not use internal combustion engines such as hydrogen and compressed air.

The "Roundtable on Sustainable Biofuels" is an international initiative which brings together farmers, companies, governments, non-governmental organizations, and scientists who are interested in the sustainability of biofuels production and distribution. During 2008, the Roundtable is developing a series of principles and criteria for sustainable biofuels production through meetings, teleconferences, and online discussions.

The increased manufacture of biofuels will require increasing land areas to be used for agriculture. Second and third generation biofuel processes can ease the pressure on land, because they can use waste biomass, and existing (untapped) sources of biomass such as crop residues and potentially even marine algae.

In some regions of the world, a combination of increasing demand for food, and increasing demand for biofuel, is causing deforestation and threats to biodiversity. The best reported example of this is the expansion of oil palm plantations in Malaysia and Indonesia, where rainforest is being destroyed to establish new oil palm plantations. It is an important fact that 90% of the palm oil produced in Malaysia is used by the food industry; therefore biofuels cannot be held solely responsible for this deforestation. There is a pressing need for sustainable palm oil production for the food and fuel industries; palm oil is used in a wide variety of food products. The Roundtable on Sustainable Biofuels is working to define criteria, standards and processes to promote sustainably produced biofuels. Palm oil is also used in the manufacture of detergents, and in electricity and heat generation both in Asia and around the world (the UK burns palm oil in coal-fired power stations to generate electricity).

Significant area is likely to be dedicated to sugar cane in future years as demand for ethanol increases worldwide. The expansion of sugar cane plantations will place pressure on environmentally-sensitive native ecosystems including rainforest in South America. In forest ecosystems, these effects themselves will undermine the climate benefits of alternative fuels, in addition to representing a major threat to global biodiversity.

Although biofuels are generally considered to improve net carbon output, biodiesel and other fuels do produce local air pollution, including nitrogen oxides, the principal cause of smog.

Researchers at the Overseas Development Institute have argued that biofuels could help to reduce poverty in the developing world, through increased employment, wider economic growth multipliers and energy price effects. However, this potential is described as 'fragile', and is reduced where feedstock production tends to be large scale, or causes pressure on limited agricultural resources: capital investment, land, water, and the net cost of food for the poor.

With regards to the potential for poverty reduction or exacerbation, biofuels rely on many of the same policy, regulatory or investment shortcomings that impede agriculture as a route to poverty reduction. Since many of these shortcomings require policy improvements at a country level rather than a global one, they argue for a country-by-country analysis of the potential poverty impacts of biofuels. This would consider, among other things, land administration systems, market coordination and prioritising investment in biodiesel, as this 'generates more labour, has lower transportation costs and uses simpler technology'.

In 2008 the British anti-poverty charity War on Want released a report linking the demand for biofuels and other 'green' alternatives to petroleum to violent land seizures taking place in Colombia. The report outlines how the production of biofuels, specifically palm oil, has led to the forced displacement of thousands of Afro-Colombians from the south-west region of Colombia.

Production of biofuels from raw materials requires energy (for farming, transport and conversion to final product, and the production / application of fertilizers, pesticides, herbicides, and fungicides), and has environmental consequences.

The energy balance of a biofuel (sometimes called "Net energy gain") is determined by the amount of energy put into the manufacture of fuel compared to the amount of energy released when it is burned in a vehicle. This varies by feedstock and according to the assumptions used. Biodiesel made from sunflowers may produce only 0.46 times the input rate of fuel energy. Biodiesel made from soybeans may produce 3.2 times the input rate of fossil fuels. This compares to 0.805 for gasoline and 0.843 for diesel made from petroleum. Biofuels may require higher energy input per unit of BTU energy content produced than fossil fuels: petroleum can be pumped out of the ground and processed more efficiently than biofuels can be grown and processed. However, this is not necessarily a reason to use oil instead of biofuels, nor does it have an impact on the environmental benefits provided by a given biofuel.

Studies have been done that calculate energy balances for biofuel production. Some of these show large differences depending on the biomass feedstock used and location.

Life cycle assessments of biofuel production show that under certain circumstances, biofuels produce only limited savings in energy and greenhouse gas emissions. Fertiliser inputs and transportation of biomass across large distances can reduce the GHG savings achieved. The location of biofuel processing plants can be planned to minimize the need for transport, and agricultural regimes can be developed to limit the amount of fertiliser used for biomass production. A European study on the greenhouse gas emissions found that well-to-wheel (WTW) CO2 emissions of biodiesel from seed crops such as rapeseed could be almost as high as fossil diesel. It showed a similar result for bio-ethanol from starch crops, which could have almost as many WTW CO2 emissions as fossil petrol. This study showed that second generation biofuels have far lower WTW CO2 emissions.

Other independent LCA studies show that biofuels save around 50% of the CO2 emissions of the equivalent fossil fuels. This can be increased to 80-90% GHG emissions savings if second generation processes or reduced fertiliser growing regimes are used. Further GHG savings can be achieved by using by-products to provide heat, such as using bagasse to power ethanol production from sugarcane.

Collocation of synergistic processing plants can enhance efficiency. One example is to use the exhaust heat from an industrial process for ethanol production, which can then recycle cooler processing water, instead of evaporating hot water that warms the atmosphere.

Biofuels from plant materials convert energy that was originally captured from solar energy via photosynthesis. A comparison of conversion efficiency from solar to usable energy (taking into account the whole energy budgets) shows that photovoltaics are 100 times more efficient than corn ethanol and 10 times more efficient than the best biofuel.

There is debate around the best model for production.

The majority of established biofuel markets have followed the centralised model with a few small or micro producers holding a minor segment of the market. A noticeable exception to this has been the pure plant oil (PPO) market in Germany which grew exponentially until the beginning of 2008 when increasing feedstock prices and the introduction of fuel duty combined to stifle the market. Fuel was produced in hundreds of small oil mills distributed throughout Germany often run as part of farm businesses.

Initially fuel quality could be variable but as the market matured new technologies were developed that made significantly improvements. As the technologies surrounding this fuel improved usage and production rapidly increased with rapeseed oil PPO forming a significant segment of transportation biofuels consumed in 2007.

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Biofuels by region

The use of biofuels varies by region and with increasing oil prices there is a renewed interest in it as a energy source.

Recognizing the importance of implementing bioenergy, there are international organizations such as IEA Bioenergy, established in 1978 by the OECD International Energy Agency (IEA), with the aim of improving cooperation and information exchange between countries that have national programs in bioenergy research, development and deployment. The U.N. International Biofuels Forum is formed by Brazil, China, India, South Africa, the United States and the European Commission. The world leaders in biofuel development and use are Brazil, United States, France, Sweden and Germany.

The government of Brazil hopes to build on the success of the Proálcool ethanol program by expanding the production of biodiesel which must contain 2% biodiesel by 2008, and 5% by 2013.

The government of Canada aims for 45% of the country’s gasoline consumption to contain 10% ethanol by 2010.

In China, the government is making E10 blends mandatory in five provinces that account for 16% of the nation's passenger cars.

Colombia mandates the use of 10% ethanol in all gasoline sold in cities with populations exceeding 500,000. In Venezuela, the state oil company is supporting the construction of 15 sugar cane distilleries over the next five years, as the government introduces a E10 (10% ethanol) blending mandate.

In India, a bioethanol program calls for E5 blends throughout most of the country targeting to raise this requirement to E10 and then E20.

IC Green Energy, a subsidiary of Israel Corp., aims by 2012 to process 4-5% of the global biofuel market (~4 million tons). It is focused solely on non-edible feedstock such as jatropha, castor, cellulosic biomass and algae. In June 2008, Tel Aviv-based Seambiotic and Seattle-based Inventure Chemical announced a joint venture to use CO2 emissions-fed algae to make ethanol and biodiesel at a biofuel plant in Israel.

The European Union in its biofuels directive (updated 2006) has set the goal that for 2010 that each member state should achieve at least 5.75% biofuel usage of all used traffic fuel. By 2020 the figure should be 10%. As of January 2008 these aims are being reconsidered in light of certain environmental and social concerns associated with biofuels such as rising food prices and deforestation.

France is the second largest biofuel consumer among the EU States in 2006. According to the Ministry of Industry, France's consumption increased by 62.7% to reach 682,000 toe (i.e. 1.6% of French fuel consumption). Biodiesel represents the largest share of this (78%, far ahead of bioethanol with 22%). The unquestionable biodiesel leader in Europe is the French company Diester Industrie. In bioethanol, the French agro-industrial group Téréos is increasing its production capacities.

Germany remained the largest European biofuel consumer in 2006, with a consumption estimate of 2.8 million tons of biodiesel (equivalent to 2,408,000 toe), 0.71 million ton of vegetable oil (628.492 toe) and 0.48 million ton of bioethanol (307,200 toe).

The biggest German biodiesel company is ADM Ölmühle Hamburg AG, subsidiary of the American group Archer Daniels Midland Company. Among the other large German producers, MUW (Mitteldeutsche Umesterungswerke GmbH & Co KG) and EOP Biodiesel AG. A major contender in terms of bioethanol production is the German sugar corporation, Südzucker.

In Southeast Asia, Thailand has mandated an ambitious 10% ethanol mix in gasoline since 2007. For similar reasons, the palm oil industry plans to supply an increasing portion of national diesel fuel requirements in Malaysia and Indonesia.

The Spanish group Abengoa, via its American subsidiary Abengoa Bioenergy, is the European leader in production of bioethanol.

The government of Sweden and the national association of auto makers, BIL Sweden, have started work to end oil dependency. One-fifth of cars in Stockholm can run on alternative fuels, mostly ethanol fuel. Stockholm is to introduce a fleet of Swedish-made hybrid ethanol-electric buses. Plans for oil phase-out in Sweden by 2020 was announced in 2005.

In the United Kingdom, the Renewable Transport Fuel Obligation (RTFO) (announced 2005) is the requirement that by 2010 5% of all road vehicle fuel is renewable. In 2008 a critical report by the Royal Society stated that biofuels risk failing to deliver significant reductions in greenhouse gas emissions from transport and could even be environmentally damaging unless the Government puts the right policies in place.

The Energy Policy Act of 2005 was passed by the United States Congress on July 29, 2005 and signed into law by President George W. Bush on August 8 2005 at Sandia National Laboratories in Albuquerque, New Mexico. The Act, described by proponents as an attempt to combat growing energy problems, changed the energy policy of the United States by providing tax incentives and loan guarantees for energy production of various types.

In 2006, the United States president George W. Bush said in a State of the Union speech that the US is "addicted to oil" and should replace 75% of imported oil by 2025 by alternative sources of energy including biofuels.

Essentially all ethanol fuel in the US is produced from corn. Corn is a very energy-intensive crop, which requires one unit of fossil-fuel energy to create just 0.9 to 1.3 energy units of ethanol. A senior member of the House Energy and Commerce Committee, Congressman Fred Upton introduced legislation to use at least E10 fuel by 2012 in all cars in the USA.

The 2007-12-19 US Energy Independence and Security Act of 2007 requires American “fuel producers to use at least 36 billion gallons of biofuel in 2022. This is nearly a fivefold increase over current levels.” This is causing a significant shift of resources away from food production. American food exports have decreased (increasing grain prices worldwide), and US food imports have increased significantly.

General Motors is starting a project to produce E85 fuel from cellulose ethanol for a projected cost of $1 a gallon. This is optimistic, because $1/gal equates to $10/MBTU which is comparable to woodchips at $7/MBTU or cord wood at $6-$12/MBTU, and this does not account for conversion losses and plant operating and capital costs which are significant. The raw materials can be as simple as corn stalks and scrap petroleum-based vehicle tires, but used tires are an expensive feedstock with other more-valuable uses. GM has over 4 million E85 cars on the road now, and by 2012 half of the production cars for the US will be capable of running on E85 fuel. But by 2012, the supply of ethanol will not even be close to supplying this much E85. Coskata Inc. is building two new plants for the ethanol fuel. Theoretically, the process is claimed to be five times more energy efficient than corn based ethanol, but it is still in development and has not been proven to be cost effective in a free market.

The greenhouse gas emissions are reduced by 86% for cellulose compared to corn’s 29% reduction.

The Food, Conservation, and Energy Act of 2008 is a $288 billion, five-year agricultural policy bill being considered by the United States Congress as a continuation of the 2002 Farm Bill. The bill continues the United States' long history of agricultural subsidy as well as pursuing areas such as energy, conservation, nutrition, and rural development. Some specific initiatives in the bill include increases in Food Stamp benefits, increased support for the production of cellulosic ethanol, and money for the research of pests, diseases and other agricultural problems.

Biofuel industries are becoming established in many developing countries. Many developing countries have extensive biomass resources that are becoming more valuable as demand for biomass and biofuels increases. The approaches to biofuel development in different parts of the world varies. Countries such as India and China are developing both bioethanol and biodiesel programs. India is extending plantations of jatropha, an oil-producing tree that is used in biodiesel production. The Indian sugar ethanol program sets a target of 5% bioethanol incorporation into transport fuel. China is a major bioethanol producer and aims to incorporate 15% bioethanol into transport fuels by 2010. Costs of biofuel promotion programs can be very high, though.

In rural populations in developing countries, biomass provides the majority of fuel for heat and cooking. Wood, animal dung and crop residues are commonly burned. Figures from the International Energy Agency (IEA) show that biomass energy provides around 30% of the total primary energy supply in developing countries; over 2 billion people depend on biomass fuels as their primary energy source.

The use of biomass fuels for cooking indoors is a source of health problems and pollution. 1.3 million deaths were attributed to the use of biomass fuels with inadequate ventilation by the International Energy Agency in its World Energy Outlook 2006. Proposed solutions include improved stoves and alternative fuels. However, fuels are easily damaged, and alternative fuels tend to be expensive. Very low cost, fuel efficient, low pollution biomass stove designs have existed since 1980 or earlier. Issues are a lack of education, distribution, corruption, and very low levels of foreign aid. People in developing countries often cannot afford these solutions without assistance or financing such as microloans. Organizations such as Intermediate Technology Development Group work to make improved facilities for biofuel use and better alternatives accessible to those who cannot get them.

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European Biofuels Technology Platform

The European Biofuels Technology Platform (BiofuelsTP) is a European Seventh Framework Programme initiative to improve the competitive situation of the European Union in the field of biofuel.

The programme is a joint initiative (Public-Private Partnership) of the European Commission, representing the European Communities, and the industry. The main objective of the programme is to produce a Strategic Research Agenda. The BiofuelsTP initiative was launched at a Conference in June 2006.

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