The Next Generation Fuel-Biofuels

8/8/2019 The Next Generation Fuel-Biofuels

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Praxis Business School

The next generation fuel-Bio-fuels

A report submitted to

Prof. Prithwis Mukherjee

In partial fulfillment of the requirements of the course

Business Information Systems

By:

Ashwin Kumar Agarwal

Roll No:-B10004Batch No:-2010-2011


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Praxis Business School Page 2

CONTENTS

Introduction 3

How to make Bio-fuels 4

Different types of Bio-fuels 5

Need for Bio-fuels 9

Various generations of Bio-fuels 9

Bio-fuels globally 12

Key players of Bio-fuels 13

Various challenges 15

Solution for the challenges 16

Advantages of Bio-fuels 17

Potential of Bio-fuels 18

Various insights to Bio-fuels 19

References 20


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Abstract

The development of alternatives to fossil fuels as an energy source is an urgent global priority. One of

the ways to meet this urgency is bio-fuels. Bio-fuels are wide range of fuels which are derived from

biomass. Information across the biosphere, including potential energy crops and microorganisms able

to break down biomass, will be vital for improving the prospects of significant bio-fuel production. It is

commonly used as an alternative, cleaner fuel, renewable, environmentally friendly source of energy

and supports local agriculture. There is high potential of bio-fuel and this article discusses how bio-

fuels can meet the global demand.

INTRODUCTION

Bio-fuels are wide range of fuels which are in some way derived from biomass. It is basically the fuel

produced from renewable biomass material, commonly used as an alternative, cleaner fuel source.

The term covers

Solid Biomass,

Liquid Fuels, and

Various biogases

Bio-fuels are energy-affording materials that are sourced from organic, naturally found living or

recently living plants and organisms.

The oldest and most widely used bio-fuel is WOOD. From our early ancestors to modern day society,

humans have used the burning of wood (fire) to cook our food, provide us with warmth and as a

means of protection

More recently in human history, time, money and resources have been channelled into researching a

more powerful source of energy, namely BIO-FUELS. These can take form of

a solid (wood, charcoal or dry manure)


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liquid fuel or

natural gases,

All of which can in some way provide us with energy to fuel our society. Currently, Bio-fuels are used

predominantly in the transport sector as a fuel for cars, busses and trucks: however, further research

could see their field of application expand quite substantially.

How to make bio-fuel

Most of from of bio-fuel can be easily manufactured even at in ones kitchen garden. One of the key

features of bio-fuel is that they are better than other forms of fuel like petrol or diesel that is

manufactured by most of the big oil manufacturing companies.

There are various forms of bio-fuels and most of them are made through a detailed process having

various stages. Most of the animal fats, vegetables and oils contain glycerine and are thus called

triglycerides. In the process of manufacturing the bio-fuels, all the fats and oil are turned into esters,

separating the glycerine. At the end of the process, all the glycerine sinks down at the bottom and all

the bio-fuel rests at the top. The process through which the glycerine is separated from the bio-dieselis known as transesterification. This process also uses lye as a catalyst in the whole process. Some

of the chemicals which are used in the manufacturing of bio-fuels are ethanol or methanol which

brings into use methyl esters. Methanol is derived from fossils fuels while ethanol is derived from

plants. One of the advantages of using ethanol is that they can be distilled even at the home without

any problem.

The process of manufacturing bio-fuel can be classified in the following stages. These stages are:

Filtering: in this process, waste vegetable oil is filtered to remove all the food particles. This

process generally involves warming up the liquid a little. After warming up the liquid, it can be

filtered with the use of coffee filter.

Removing of water: All the water contained in the residual gangue has to be removed

which will make the reaction faster. The water can be easily removed by making the liquid

boil at 100 degree C for some time.

Titration:This process is carried out to determine the amount of lye that would be required.

This process is the most crucial and the most important stage of bio-fuel manufacturing.

Preparation of sodium methoxide: In this process, methanol is mixed with sodium

hydroxide to produce sodium methoxide. The most of the cases, the quantity of methanol

used is generally 20 percent of waste vegetable oil.

Heating and mixing:The residue is heated in between 120 to 130 F after which it is mixed

well. It should be remembered that processed should be done carefully avoiding splashing of

liquid.

Settling and separation: After mixing the liquid, it has to be allowed to cool down. After the

cooling process, the bio-full will be found floating at the top while the heavier glycerine would

be found at the bottom. The glycerine can be easily separated by allowing it to drain out from

the bottom. The person is left over with pure bio-fuel which can be used for various

purposes.


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Different types of Bio-fuels

There are different categories of bio-fuels depending on their chemical make-up or composition, but

what they all have in common is that they are completely organic in origin. Bio-fuels are categories as:

Bio-alcohols

o Bio-ethanol

Bio-diesel

Bio-oil Bio-gas

Syngas

Vegetable oil

Solid bio-fuels

The combinations of all of these different kinds of Bio-fuels provide the transport sector with

approximately 1.8% of its fuel needs in 2008.

Great investments of time, money and research has seen a rapid increase in the focus on using bio-

fuels to move our society forward as opposed to conventional non-renewable fossil fuels.

Now let us briefly know about each of the bio-fuels category

Bio-alcohols

Bio-alcohols refer to the fuels that are created from the fermentation of sugar and starch in certain

plant matter, which of course yields alcohol. One of the most commonly used and widely researched

of the Bio-alcohols, is bio-ethanol. The concept behind creating bio alcohols as a source of fuel is

really quite inseparable from the one we apply to making wine and brandy (grapes),vodka (potatoes),

gin (juniper berries) and whiskey (rye). Not all plant types will yield alcohol in a palatable form;

however, the engines of automobiles certainly dont mind this. All we know is that bio alcohol can be

used in its pure form to initiate and sustain more powerful and cleaner combustion, and in doing so,

have proved to be exceptionally useful in the transport sector.


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Biodiesel

Biodiesel is manufactured via the process of transesterification from oily or fatty substances, such as

vegetable oils derived from any one of a number of oily plant types (flaxseed, sunflower seeds, palm

oil, etc.), animal fats and used or recycled greases.

Biodiesel is one of the most common forms of bio fuel and is especially used throughout much of

Europe as an additive to traditional mineral diesel (usually constitutes 15% of total volume).

The benefit of using biodiesel is that it increases the power output octane of an engine through the

promotion of more efficient combustion, which in turn reduces the harmful emissions of poisonous

greenhouse gases (carbon monoxide, hydrocarbons, pollution particulates, etc.). Biodiesel can be

used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels

of particulates, carbon monoxide, and hydrocarbons from diesel-powered vehicles.

Bio-oil

Bio-oil is completely organically sourced oil obtained from plants such as Jatropha, Canola flowers

and Algae. Used vegetable is also considered to be great source of bio-oil, since a huge number o

people, homes and catering business use cooking oil on a daily basis.


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Bio-oil is usually heated to reduce its viscosity, after which it can be used as an additive in diesel fuel.

Alternatively, it can be further treated to produce biodiesel, which can be used to power absolutely

any technology that subsists off of diesel fuel: cars, trucks, buses, power generators, etc.

Bio ethers

Ether is an organic chemical compound that can be used similarly to bio alcohol. The distinction is

that bio ethers contribute to incredibly efficient combustion within car engines resulting in:

Higher octane rating

Lesser toxic greenhouse gas and pollution emission

Lesser corrosion of car mechanics


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Biogas

Biogas is the natural by-product of decomposition by bacterial organisms and explains the unpleasant

odour of rotting flesh or plant material. Through specially designed collectors and closed system, we

can capture this gas, which is high in methane, off of landfills or waste deposit sites and use it for a

number of applications. The solid by-product of bacterial digestion can also be used as a potent

fertilizer, ideal for agricultural use.

Syngas

Syngas is essentially a mixture of carbon monoxide (a poisonous and potent greenhouse gas) and

hydrogen (a harmless and naturally found atmospheric gas). This is produced through the partial

combustion of biomass in an oxygen-starved environment that yields a more potent and efficient form

of fuel, which can be used to drive vehicle engines as well as the generation of electricity by turbines.

Vegetable oil

This kind of oil can be either used for cooking purpose or even as fuel. The main fact that determinesthe usage of this oil is the quality. The oil with good quality is generally used for cooking purpose. It


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can even used in most of the old diesel engines, but only in warm atmosphere. In most of the

countries, vegetable oil is mainly used for the production of biodiesel.

Solid bio-fuels

Solid bio-fuels such as wood, sawdust, grass cuttings, domestic refuse, charcoal, agricultural waste,

non-food energy crops and dried manure. When raw biomass is already in a suitable form (such as

firewood), it can burn directly in a stove or furnace to provide heat per raise steam. When raw

biomass is in an inconvenient form (such as sawdust, wood chips, grass, urban waste wood,

agricultural residues), the typical process is to density the biomass.

A derivative of solid bio fuel is bio char. Bio-char made from agricultural waste can substitute for wood

charcoal. As wood stock becomes scare this alternative is gaining ground.

All of the bio-fuels mentioned are the results of varying production processes which can be

categorised into three generations:

First generation bio-fuels

Second generation bio-fuels

Third generation bio-fuels

Forth generation bio-fuels

Need for Bio-fuels

The need for bio-fuels is becoming increasingly urgent due to the fact that:

The source we rely on for energy and powers are fast dwindling. Fossil fuels such as coal and

oil are non-renewable resources that have been at the reins of our economy for far too long.

With only a few countries in the world that actually possess fossil fuels as a natural resource,

wars and power struggles over these commodities have caused irreparable damage to

international government relations, the environment as well as to peoples lives

Bio-fuels constitute the answer to all the global energy and environmental crises we face

today by providing our civilization with energy security in the form of an alternative,

renewable, potent and readily available source of power.

Bio-fuels can be used to power small-scale farm and local workshop machinery and electricity

generators as well as vehicles.

Now let us know about the different generation in which Bio-fuel has been categorised:

First generation bio-fuels

First generation bio fuels are sourced from natural compounds such as sugars, starches, vegetable

oils and fats, which are then, processed using conventional technologies. As such, they encompass

the fuel types of:

Bio-diesel,

Bio-alcohols,

Syngas, and

Vegetable oil


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The basic feedstocks for the production of first generation bio-fuels are often seeds or grains such as

sunflower seeds, which are pressed to yield vegetable oil that can be used in bio-diesel, or wheat,

which yields starch that is fermented into bio-ethanol.

However, while these sources of bio fuels offer a great alternative to the traditional fossil fuels, they

do present some economical difficulties of their own:

One of the greatest controversies facing bio fuels is that they require the use of major food

crops in their production. So, with first generation bio fuels, we are either looking at putting

incredible stress on the agriculture sector, resulting in food shortages, or the expansion of

farmlands.

This in itself has huge environment implication such as deforestation, soil erosion, water

shortage, increased carbon emissions and on larger scale; climate change.

With all these detrimental impacts, the excessive use of the first generation bio-fuels really defeats the

purpose of bio-fuels in the first place, which is to provide a clean and renewable source of energy.

Second generation bio-fuelsSecond generation bio-fuels comprise the answer to the issues presented by their first generation

counterparts as they are manufactured from inedible plant matter or non-food crops as well as the

waste biomass produced by the agricultural sector. This includes the

Left over stalks,

Stems and leaves from the processing of corn,

Sugar cane,

Wheat,

Soybeans and

Other food crops.

Second generation bio-fuels largely surpass the limitation of the first generation due to following

reasons:

Because of the vast and diverse array of inedible biomass types and sources, they do not

threaten our food reserves, food production or biodiversity.

They are also a far more sustainable resource, environmentally friendly and completely cost-

effective because the fuel is made from what previously is thought of as useless waste

material.

Third generation bio-fuels

This generation of bio-fuels are provided by the green slime that coats our pools and ponds much to

our frustration. Algae also referred to as oilgae in the bio-fuel industry, is the third generation bio-fuel.

Research into the use of algae as a source of fuel has shown that it can produce as much as 30 times

more energy per unit growing area than land crops (corn, soybeans, wheat, etc.), although this is yet

to be commercially implemented. The advantage of third generation bio-fuels is that it is 100%

environmentally friendly, biodegradable and easy to grow, although the oil extraction process is a little

trickier.


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Algae also has the benefits of naturally producing ethanol as a by-product, which can easily beextracted without disturbing the plant, as well as absorbing carbon dioxide in the process of

photosynthesis. This sink of carbon dioxide is fundamental in an environment which suffering under

the strain of excessive greenhouse gas emissions.

Fourth generation bio fuels

A number of companies are pursuing advanced bio-chemical and thermo-chemical processes that

produce drop in fuels like green gasoline, green diesel, and green aviation fuel. While there is

no one established definition of fourth generation bio-fuels, some have referred it to as the bio-fuels

created from processes other than first generation ethanol and bio-diesel, second generation

cellulosic ethanol, and third generation algae bio-fuel. Some fourth generation technology pathways

include: pyrolysis, gasification, upgrading, solar-to-fuel, and genetic manipulation of organisms to

secrete hydrocarbons

Green fuels: if bio catalytic cracking and traditional fractional distillation used to process properly

prepared algal biomass i.e. bio crude, then as a result we receive the following distillates: jet fuel,

gasoline, diesel, etc.


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Bio fuels on a global basis

Recognising the importance of implementing bio-energy, there are international organizations such as

IEA bio energy, established in 1978 by the OECD International Energy Agency (IEA), with the aim of

improving co-operation and information exchange between countries that have national programmes

in bio energy research, development and deployment. The U.N International bio fuel forum is formedby Brazil, China, India, South Africa, the United States and the European commission. The world

leaders in bio fuel development and use are Brazil, United States, France, Sweden and Germany.

(Source: Wikipedia)

Bio fuel in India

Bio-fuel development in India centres mainly on the cultivation and processing of Jatropha plant

seeds which are very rich in oil (40%). The drivers for this are historic, functional, economic,

environmental, moral and political.

Jatropha oil has been used in India for several decades as biodiesel to height to the diesel

fuel requirements of remote rural and forest communities. Jatropha oil can be directly usedafter extraction (i.e. without refining) in diesel generators and engines

Jatropha has the potential to provide economic benefits at the local level since under suitable

management it has the potential to grow in dry marginal non-agricultural lands, thereby

allowing villagers and farmers to leverage non-farm land for income generation. It also

reduces nations fossil fuel import bill for diesel production

Since, no food producing farmland is required for producing this bio fuel (unlike corn or sugar

cane ethanol, or palm oil diesel), it is considered the most politically and morally acceptable

choice among Indias current bio-fuel option; it has no negative impact on the production of

the massive amounts grains and other vital agriculture goods India produces to meet the food

requirements of its massive population.

Indias total biodiesel requirement is projected to grow to 3.6 million metric tons in 2011-12, with the

positive performance of the domestic automobile industry. Analysis from Frost & Sullivan, strategic

analysis of the Indian bio fuels Industry, reveals that the market is an emerging one and has a long

way to go before it catches up with global competitors.

The government is currently implementing an ethanol-blending program and considering initiatives in

the form of mandates for biodiesel. Due to these strategies, the rising population, and the growing

energy demand from the transport sector, bio fuels can be assured of a significant market in India. On

12 September 2008, the Indian government announced its National Bio fuel Policy. It aims to meet

20% of Indias diesel demand with fuel derived from plants. That will mean setting aside 140,000

square kilometres of land. Presently fuel yielding plants cover less those 5,000 square kilometres.

Jatropha incentives in India are a part of Indias goal to achieve energy independence by the year

2012. Jatropha oil is produced from the seeds of the Jatropha curcas, a plant that can grow in

wastelands across India and the oil is considered to be an excellent source of bio-diesel. India is keen

on reducing its dependence on coal and petroleum to meet its increasing energy demand and

encouraging Jatropha cultivation is a crucial component of its energy policy.

Large parts of waste land have been selected for Jatropha cultivation and will provide much needed

employment to the rural poor of India. Business is also seeing the planting of Jatropha as a good

business opportunity. The government of India has identified 400,000 square kilometres (98 million

acres) of land where Jatropha can be grown, hoping it will replace 20% of Indias diesel consumption

by 2011.


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The project development of agronomics practices for Jatropha curcas is being implemented, with the

financial assistance of DBT, New Delhi. Dr. Panjabrao Deshmukh Krishi Vidyapeeth, Akol (MS) India

has planted Jatropha on 3 square kilometres, with the financial assistance of National Oilseeds and

Vegetables oils Development Board

(Source: Wikipedia)

Key players of bio-fuels

The United States, Brazil, and the European Union are the big three bio-fuels markets in terms of

volume

National government are mandating the tremendous scope of the bio-fuels market opportunity- at

$100 billion-plus per year but it is still in its infancy

Bio-fuels are now providing more than 50% of the fuel by volume that powers Brazils road

transportation vehicle with gasoline engines. While currently only a small fraction of the US and EU

total transportation fuel markets, this region dominate Brazil in absolute number in their respective

bio-diesel and ethanol markets.

Some Industry key players of Bio-fuels are in the field of cellulosic Ethanol key players are Verenium,

POET, Mascoma, BioGasol, Range Fuels, Coskat, Radian Bio-energy. In Advanced bio-fuel key

players are Amyris, in second generation SG bio-fuels, D1 Oils, in Third generation Aurora Bio-fuels,

Sapphire Energy, and in services IVG Energy, Kingsman, Piedmont Bio-fuels are some key players.

(Source: pike result).


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Key players of bio-fuel in India

The following are some of the key players of bio-fuel in India:

Indian railways: the Indian railways have started to use the oil (blended with diesel fuel in

various ratios) from the Jatropha plant to power its diesel engines with the great success.

Andhra Pradesh: It has entered into a formal agreement with Reliance Industries for

Jatropha planting. The company has selected 200 acres of land at Kakinada to grow jatropha

for high quality bio-diesel fuel.

Chhattisgarh: It has decided to plant 160 million saplings of Jatropha in all its 16 districts

during 2006 with the aim of becoming a bio-fuel self-reliant state by 2015. The central

government has provided Rs. 135 million to the state this year for developing jatropha nursery

facilities.

Karnataka: Farmers in semi-arid regions of Karnataka are planting Jatorpha as it is well

suited to those conditions Lab land Bio-diesel is a Mysore based Private Limited Company.

Since the year 2002, the company is active in bio-diesel and Jatorpha curcas-based research

and development activities headed by its Chairman and managing Director, Dr. Sudheer

Shetty

Tamil Nadu: This state is aggressively promoting the plantation of Jatorpha to help farmers

overcome the loss due to irregular rains during the past few years. The government has

contracted the development of jatropha in Tamil Nadu in a large scale to 4 entrepreneurs.

Namely M/s Mohan Breweries and Distilleries Limited, M/s Shiva Distilleries Limited, M/s

Dharani Sugars and Chemicals Limited and M/s River way Agro Products Private Ltd.

Currently the firms have cultivated the plant in about 3 square kilometres as against the goal

of 50 km square. The government of TN has also abolished purchase tax on Jatorpha, but

presently government has announced to reduce the 7.5% tollgate charges to 2.5%.

Rajasthan: Udaipur is the major supplier of the Jatropha seeds especially for the

germination. Many companies and government are taking interest to collect best seeds from

Udaipur. Bulk Agro (I) Pvt Ltd is the elite of the suppliers.

Maharashtra: in September 2007, the Hindustan Petroleum Corporation Ltd (HPCL) joined

hands with the Maharashtra State Farming Corporation Ltd (MSFCL) for a jatropha seed-based bio-diesel venture.


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Various challenges for bio-fuel

Bio-fuel faces certain challenges which includes

Limited availability of inexpensive feedstock,

Energy output: Bio fuels have a lower energy output than traditional fuels and therefore

require greater quantities to be consumed in order to produce the same energy level.

Production carbon emissions: Several studies have been conducted to analyze the carbon

footprint of bio fuels, and while they may be cleaner to burn, there is strong indication that the

process to produce the fuel-including the machinery necessary to cultivate the crops and the

plants to produce the fuel-has hefty carbon emissions.

Ethical questions of food verses fuel: there has been growing storm of protest against bio

fuels in the last few years, rising to frenzy in the year 2008 as the global food crisis hit home.

It is being claimed that bio-fuels are even worse than fossil fuel, that bio fuel production is

driving millions of poor people into starvation. It is reported that tropical rainforests are being


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destroyed o make way for bio-fuel crops instead of food, creating food shortage and driving

up food prices, especially for the worlds poor.

Price volatility and low price of petroleum oil: To refine bio fuel to more efficient energy output

and to build the necessary manufacturing plants to increase bio fuel quantities will require a

high initial investment.

Sustainability of water: Massive quantities of water are required for proper irrigation of bio fuelcrops as well as to manufacture the fuel, which could strain local and regional water

resources.

Secondary land effect and biodiversity,

Infrastructure incompatibilities: Bio fuel is not widely available for consumers and most

vehicles are not equipped to run on bio fuel products. Limited availability reduces the

desirability of bio fuels as alternative energy sources.

Credit availability and global recession, and

Over capacity of production

Some solutions for the challenges

The feasibility of legally binding, enforceable standards should be considered for the

cultivation and processing of bio fuels with respect to the risks listed above- e.g. protection of

food and water supplies; access to land; biodiversity conservation; etc. This should include

consideration of the potential to incorporate such standards in international law.

Voluntary guidelines, best practice standards and credible certification/labelling schemes fordifferent bio fuels feed stocks and production practices should be quickly developed andpromoted, such as those being formulated by the roundtable for sustainable bio fuelssponsored by the Ecole Polytechnique Federable de Lausanne, the Dutch government and itscommission, the UK and FAO, UN-Energy, UNEP, UNID, UNCTAD and the WTO, amongothers(Source: international standards and certification/assurance systems are critical to ensurethat bio energy is produced using the most sustainable methods possible Id at p. 46, Id at

p.49) Bio fuel production should not be permitted that jeopardizes the price and supply of food and

crops essential for animal feed and local construction materials for the people of developingcountries

Exporters and Importers of the bio-fuel should be informed about and required to respect allenvironmental and labour laws and relevant local, national and international bio-fuelsstandards, guidelines and/or certification. Tariffs restricting purchase of bio-fuels fromdeveloping countries should be eliminated.

The introduction of foreign agribusiness in developing countries should be accompanied bymeasures to assure their observation of national and local environmental and labourprotections, and where these do not exist, of international requirements. They should berequired to pay taxes sufficient to compensate developing country governments and

communities for the exploitation of their resources. Provision should be made for formal social and environmental assessments of bio-fuel

development projects, with thorough studies of all the life-cycle costs including externalities,impacts and risks enumerated above, full public disclosure, public hearings, and communityinvolvement at all stages of development, such provisions should be account for the relativemagnitude of anticipated impacts and differences in regulatory capacity.

Provision of education and training to biomass producers, managers, policy-makers, farmersand the public is essential. Agricultural extension services can play an important role.

Measures should be adopted to prevent deterioration of land used for bio fuel throughmonoculture utilization. A variety of management practices, such as the use of bio-char,intercropping, crop rotation, double cropping and conservation tillage can reduce soil erosion,improve soil quality, reduce water consumption, and reduce susceptibility of crops to pestsand disease- thereby reducing the need for chemical fertilizers and pesticides.

Further research should be pursued urgently on second generation bio fuel technologies andfeed stocks that do not compete with food production and on regulatory provisions to prevent


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degradation of the land from their utilization. Investment should be promoted on thosetechnologies that already are established. Particular attention should be paid to cascadingbusiness using biomass materials for various uses and recycling the waste for energy.

Combined heat and power (cogeneration) should be considered to facilitate maximum fuelutilization and minimization of costs.

In rural areas, consideration should be made of use of cooperatives and other forms of

collaboration to permit projects of viable scale. Temporary and strictly targeted subsidies to promote the introduction of bio fuels that meet

established standards, guidelines or certification should be promoted, along with thepossibility of funding of them through redirecting existing subsidies for fossil fuels. Allsubsidies should be transparent and linked to the economic development they are designedto promote.

Availability of financial and technical assistance from international agencies and private sectorshould be explored. Assistance on sustainability of bio fuels is obtainable from TheInternational Bio energy Partnership (IBEP), The Global Village Energy Partnership (GVEP)that also provides financial support, capacity building and technical assistance to small bioenergy projects.

Advantages of bio-fuels

Bio fuel advocates frequently point out the advantages of these plants and animal-based fuels, such

as:

Cost: once the technology is widely available, bio fuels can be significantly less expensive

than gasoline and other fossil fuels, particularly as worldwide demand for oil increases,

therefore increasing oil and gasoline price to unheard of levels.

Source material: Whereas oil is limited resource that comes from specific materials, bio fuels

can be manufactured from a wide range of materials including crop waste, manure, and other

by-products, making it a efficient step in recycling

Renewability: It takes thousands of years for fossil fuel to produce, but bio fuels are much

more easily renewable as new crop are grown and waste material is collected Security: By reducing dependence on foreign fuel sources, countries can protect the integrity

of their energy resources and make them safe from outside influences.

Economic stimulation: Because bio-fuels are produced locally, bio-fuel manufacturing plants

can employ hundreds or thousands of workers, creating new jobs in rural areas. Bio-fuel

production will also increase the demand for suitable bio-fuel crops, providing economic

stimulation to the agricultural industry.

Bio-degradability: Bio-fuels are easily biodegradable and far safer to handle then traditional

fuels, making spills less hazardous and much easier and less expensive to clean up.

Lower carbon emissions: when bio-fuel is burned, they produce significantly less carbon

output and fewer toxins, making them a safer alternative to preserve atmospheric quality and

lower air pollution.


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Potentials of bio-fuels

Beginning with the industrial revolution in the 1850s and accelerating ever since, the human

consumption of fossil fuels has elevated carbon dioxide levels from a concentration of 280

parts per million to more than 300 parts per million today. These increase are projected to

reach more than 560 parts per million before the end of the 21st

century. It is known that

carbon dioxide levels are substantially higher now than at any time in the last 800,000 years.

The government of many countries are taking steps to address fossil fuel use and

greenhouse gas emissions. The European commission, for example, has proposed new

standards for transport fuels that will reduce their contribution to climate change and air

pollution. These standards include increasing the use of bio-fuels.

Targets have been set by the European commission to increase the percentage of bio fuels in

transport fuel to 5.75% in 2010 and 10% by 2020. The overall strategic objective of these

targets is to limit the increase in global temperature

o By using 20% renewable energy in 2020

o By reducing greenhouse gas (GHG) emissions in 2020 by 20% compared to 1999

o By 20% energy savings compared to projections for 2020

o And with a 10% binding minimum target for bio fuels in 2020

A 2005 joint US department of agriculture/department of energy concluded that the United

States could produce 227 billion litters of ethanol by 2030 through a combination of grains

and cellulosic feed stocks- enough to replace 30% of projected US gasoline demand- without

harming food, feed or fibre production, 227 billion litres of bio-fuel is enough to:

o Fill 6 million tanker trucks

o Fuel over 100 million automobiles for a year, if used as E85 (85% ethanol, 15% petrol

blend) fuel

o Eliminate roughly 5 super-tankers of imported crude oil each day- nearly 2,000

shipments a year.

Using crop waste for cellulosic ethanol could potentially replace 7.9 million barrels of oil per

day by 2050.

Of the worlds 47 poorest countries, 38 are net oil importers, and 25 of these import all of their

oil. Yet many of these countries have substantial agricultural bases and are well-positioned to

grow highly productive energy crops.

Research has shown that ethanol blends reduce greenhouse gas emissions from combustion

engines. It is projected, for example, that bio fuels can reduce United States greenhouse gas

emissions by 1.7 billion tonnes per year. Estimated greenhouse gas reduction for bio-fuelsfeed stocks include: fibres (switch grass, poplar) 70-110% wastes (waste oil, harvest residue,


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sewage) 65-100%, sugar (sugar cane, sugar beet) 40-90%, vegetable oils (rapeseed,

sunflower seed, soybeans) 45-75%, and starches (corn, wheat) 15-40%.

(Sources: USDA/DOE. Biomass as feedstock for a bio energy and bio products industry,

USDA/DOE (2005) IEA. Bio fuels for transport, IEA/OECD (2004)

Various insights to bio-fuels

In the short term: Pain and uncertainty abound in the markets in response to low petro-fuel

prices, tight feedstock supplies, production overcapacity, economic shocks, infrastructure

incompatibilities, blend walls, and sustainability criticisms.

In the middle term: The bio fuel market is shifting towards feedstock that reduces carbon

footprints by greater than 50% and are characterised as low cost and non-food. Commercial-

scale production of cellulosic ethanol meets those criteria and community consensusindicates that it will be ready for widespread licensing by 2014. The increased availability of

flex-fuel vehicles will enable the use of higher percentage blends of ethanol (e.g. E85) and

remove demand barriers. Bio-diesel will experience a series of feedstock-based growth spurts

starting with low-grade greases in 2010, followed by jatropha oil in 2013, and finally algae oil

in 2015. Ethanol and bio-diesel will face more completion from renewable drop in

hydrocarbons, including green diesel and green gasoline. Jet fuel is the major new transport

fuels market for bio-fuels. Big oil will steadily increase its market share of the renewable

markets.

In the long term: the future is bright for bio fuels, as illustrated by the following:o The growth profile for bio fuels from 2009 to 2022 is excellent, with a world market

CAGR of 9% for ethanol and 15% for bio-diesel. These growth estimates are based

on bio-fuels consumption mandated by national governments.

o The world markets for bio-fuels will surpace $280 billion by 2022.

o The market environment is dynamic and is adapting to overcome obstades.

o The path forwards look like evolution, not revolution.


20/20


References

http://biofuels.croplife.org

http://www.fueleconomy.gov/

http://en.wikipedia.org/wiki/Biofuel

http://www.seattlepi.com/transportation/

http://biofuel.org.uk/

http://130.226.56.153/rispubl/SYS/syspdf/energconf05/Session17_kumar_pre.pdf

http://www.clean-energy-ideas.com/energy_definitions/definition_of_biofuel.html

http://www.svlele.com/

http://renewableenergyresource.net/

Pike research

http://journeytoforever.org/

http://www.alternative-energy-news.info/technology/biofuels/

http://www.biofuelswatch.com/

http://www.molecular-plant-biotechnology.info/fuel-biotechnology/bioethanol.htm

http://www.futurecars.com/futurefuels/bioethanol.html

http://www.wri.org/project/biofuels

http://www.thegreencarwebsite.co.uk/

http://cmsdata.iucn.org/downloads/cel10_ottinger_2.pdf

http://fbae.org/2009/FBAE/website/our-position-biofuel_potential-future-crop-of-farmers.html
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