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    The maximum extent of Arctic sea ice in winter 2007 was the second lowest on satellite record, narrowly missing the 2006 record, according to a team of researchers from the University of Colorado at Boulder. EurekAlert - April 4, 2007.

    The Société de Transport de Montréal is to buy 8 biodiesel-electric hybrid buses that will use 20% less fuel and cut 330 tons of GHG emissions per annum. Courrier Ahuntsic - April 3, 2007.

    Thailand mandates B2, a mixture of 2% biodiesel and 98% diesel. According to Energy Minister Piyasvasti Amranand, the mandate comes into effect by April next year. Bangkok Post - April 3, 2007.

    In what is described as a defeat for the Bush administration, the U.S. Supreme Court ruled [*.pdf] today that environmental officials have the power to regulate greenhouse gas emissions that spur global warming. By a 5-4 vote, the nation's highest court told the U.S. Environmental Protection Agency to reconsider its refusal to regulate carbon dioxide and other emissions from new cars and trucks that contribute to climate change. Reuters - April 2, 2007.

    Goldman Sachs estimates that, in the absence of current trade barriers, Latin America could supply all the ethanol required in the US and Europe at a cost of $45 per barrel – just over half the cost of US-made ethanol. EuroToday - April 2, 2007.

    The Kauai Island Utility Cooperative signed a long-term purchase power agreement last week with Green Energy Team, LLC. The 20-year agreement enables KIUC to purchase power from Green Energy's proposed 6.4 megawatt biomass-to-energy facility, which will use agricultural waste to generate power. Honolulu Advertiser - April 2, 2007.

    The market trend to heavier, more powerful hybrids is eroding the fuel consumption advantage of hybrid technology, according to a study done by researchers at the University of British Columbia. GreenCarCongress - March 30, 2007.

    Hungarian privately-owned bio-ethanol project firm Mabio is planning to complete an €80-85 million ethanol plant in Southeast Hungary's Csabacsud by end-2008. Onet/Interfax - March 29, 2007.

    Energy and engineering group Abengoa announces it has applied for planning permission to build a bioethanol plant in north-east England with a capacity of about 400,000 tonnes a year. Reuters - March 29, 2007.

    The second European Summer School on Renewable Motor Fuels will be held in Warsaw, Poland, from 29 to 31 August 2007. The goal of the event is to disseminate the knowledge generated within the EU-funded RENEW (Renewable Fuels for Advanced Powertrains) project and present it to the European academic audience and stakeholders. Topics on the agenda include generation of synthetic gas from biomass and gas cleaning; transport fuel synthesis from synthetic gas; biofuel use in different motors; biomass potentials, supply and logistics, and technology, cost and life-cycle assessment of BtL pathways. Cordis News - March 27, 2007.

    Green Swedes want even more renewables, according to a study from Gothenburg University. Support for hydroelectricity and biofuels has increased, whereas three-quarters of people want Sweden to concentrate more on wind and solar too. Swedes still back the nuclear phase-out plans. The country is Europe's largest ethanol user. It imports 75% of the biofuel from Brazil. Sveriges Radio International - March 27, 2007.

    Fiat will launch its Brazilian-built flex-fuel Uno in South Africa later this year. The flex-fuel Uno, which can run on gasoline, ethanol or any combination of the two fuels, was displayed at the Durban Auto Show, and is set to become popular as South Africa enters the ethanol era. Automotive World - March 27, 2007.

    Siemens Power Generation (PG) is to supply two steam turbine gensets to a biomass-fired plant in Três Lagoas, 600 kilometers northwest of São Paulo. The order, valued at €22 million, was placed by the Brazilian company Pöyry Empreendimentos, part of VCP (Votorantim Celulose e Papel), one of the biggest cellulose producers in the Americas. PRDomain - March 25, 2007.

    Asia’s demand for oil will nearly double over the next 25 years and will account for 85% of the increased demand in 2007, Organization of Petroleum Exporting Countries (Opec) officials forecast yesterday at a Bangkok-hosted energy conference. Daily Times - March 24, 2007.

    Portugal's government expects total investment in biomass energy will reach €500 million in 2012, when its target of 250MW capacity is reached. By that date, biomass will reduce 700,000 tonnes of carbon emissions. By 2010, biomass will represent 5% of the country's energy production. Forbes - March 22, 2007.

    The Scottish Executive has announced a biomass action plan for Scotland, through which dozens of green energy projects across the region are set to benefit from an additional £3 million of funding. The plan includes greater use of the forestry and agriculture sectors, together with grant support to encourage greater use of biomass products. Energy Business Review Online - March 21, 2007.

    The U.S. Dep't of Agriculture's Forest Service has selected 26 small businesses and community groups to receive US$6.2 million in grants from for the development of innovative uses for woody biomass. American Agriculturalist - March 21, 2007.

    Three universities, a government laboratory, and several companies are joining forces in Colorado to create what organizers hope will be a major player in the emerging field of converting biomass into fuels and other products. The Colorado Center for Biorefining & Biofuels, or C2B2, combines the biofuels and biorefining expertise of the University of Colorado, Colorado State University, the Colorado School of Mines, and the Colorado-based National Renewable Energy Laboratory (NREL). Founding corporate members include Dow Chemical, Chevron, ConocoPhillips, and Shell. C&EN - March 20, 2007.

    The city of Rome has announced plans to run its public bus fleet on a fuel mix of 20 per cent biodiesel. The city council has signed an accord that would see its 2800 buses switch to the blended fuel in order to cut greenhouse gas emissions and local air pollution. A trial of 200 buses, if successful, would see the entire fleet running on the biofuel mix by the end of 2008. Estimates put the annual emission savings at 40,000 tonnes of carbon dioxide. CarbonPositive - March 19, 2007.

    CODON (Dutch Biotech Study Association) organises a symposium on the 'Biobased Economy' in Wageningen, Netherlands, home of one of Europe's largest agricultural universities. In a biobased economy, chemistry companies and other non-food enterprises primarily use renewable materials and biomass as their resources, instead of petroleum. The Netherlands has the ambition to have 30% of all used materials biobased, by 2030. FoodHolland - March 19, 2007.

    Energy giants BP and China National Petroleum Corp, the PRC's biggest oil producer, are among the companies that are in talks with Guangxi Xintiande Energy Co about buying a stake in the southern China ethanol producer to expand output. Xintiande Energy currently produces ethanol from cassava. ChinaDaily - March 16, 2007.

    Researchers at eTEC Business Development Ltd., a biofuels research company based in Vienna, Austria, have devised mobile facilities that successfully convert the biodiesel by-product glycerin into electricity. The facilities, according to researchers, will provide substantial economic growth for biodiesel plants while turning glycerin into productive renewable energy. Biodiesel Magazine - March 16, 2007.

    Ethanol Africa, which plans to build eight biofuel plants in the maize belt, has secured funding of €83/US$110 million (825 million Rand) for the first facility in Bothaville, its principal shareholder announced. Business Report - March 16, 2007.

    A joint venture between Energias de Portugal SGPS and Altri SGPS will be awarded licences to build five 100 MW biomass power stations in Portugal's eastern Castelo Branco region. EDP's EDP Bioelectrica unit and Altri's Celulose de Caima plan to fuel the power stations with forestry waste material. Total investment on the programme is projected at €250/US$333 million with 800 jobs being created. Forbes - March 16, 2007.

    Indian bioprocess engineering firm Praj wins €11/US$14.5 million contract for the construction of the wheat and beet based bio-ethanol plant for Biowanze SA in Belgium, a subsidiary of CropEnergies AG (a Sudzucker Group Company). The plant has an ethanol production capacity of 300,000 tons per year. IndiaPRWire - March 15, 2007.

    Shimadzu Scientific Instruments announced the availability of its new white paper, “Overview of Biofuels and the Analytical Processes Used in their Manufacture.” The paper is available for free download at the company’s website. The paper offers an overview of the rapidly expanding global biofuel market with specific focus on ethanol and biodiesel used in auto transportation. It provides context for these products within the fuel market and explains raw materials and manufacturing. Most important, the paper describes the analytical processes and equipment used for QA testing of raw materials, in-process materials, and end products. BusinessWire - March 15, 2007.

    Côte d'Ivoire's agriculture minister Amadou Gon has visited the biofuels section of the Salon de l'Agriculture in Paris, one of the largest fairs of its kind. According to his communication office, the minister is looking into drafting a plan for the introduction of biofuels in the West African country. AllAfrica [*French] - March 13, 2007.


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Wednesday, April 04, 2007

Corn ethanol could hurt poor's food security; other biofuels can strengthen it

The push toward corn-based ethanol has the potential to starve millions around the world, two economists from the University of Minnesota say.

The demand for ethanol has pushed corn prices to record highs, and economists C. Ford Runge and Benjamin Senauer, writing in the May/June issue of Foreign Affairs magazine, warn that the rise in prices will likely hurt the world's poor.

Energy efficiency should be the Bush administration's mantra, they say, adding that the drive toward ethanol should be tempered until it can be produced efficiently from cellulosic material.

"Resorting to [corn based] biofuels is likely to exacerbate world hunger," they write in Foreign Affairs. "Several studies by economists at the World Bank and elsewhere suggest that caloric consumption among the world's poor declines by about half of one percent whenever the average prices of all major food staples increase by one percent."

In a 2003 study, the two professors showed that given rates of economic and population growth, the number of hungry worldwide would fall by 23 percent, to about 625 million, by 2025, as long as agricultural productivity improved enough to keep the relative price of food constant. But the rise in the price of foodgrains because of the increased demand for biofuels could lead to more hungry people the world over.

"The number of food-insecure people in the world would rise by over 16 million for every percentage increase in the real prices of staple foods," they write. "That means that 1.2 billion people could be chronically hungry by 2025 -- 600 million more than previously predicted."

Although much of the corn used in the United States is not for human but animal consumption, the demand for ethanol has pushed farmers to grow more corn at the expense of other crops, leading to high poultry and related prices:
:: :: :: :: :: :: :: :: ::

The conclusion should be obvious: like the United Nation's Food and Agriculture Organisation says, let the poor themselves produce biofuels. There is enough land available in countries often plagued by food insecurity. What these countries need is financial and agronomic inputs, and market access. If these conditions are met, poor farmers in the tropics and subtropics can lift themselves out of poverty and food insecurity by selling biofuels to local and international markets.

Moreover, the effect of high fossil fuel prices and energy insecurity is devastating to the development of the world's poorest economies. A switch to competitive biofuels may temper these effects and save funds that can be invested in social and rural development and in poverty alleviation. In many cases, if a developing country in the tropics and subtropics does not create a biofuels industry, it will lose huge amounts of money on importing expensive fossil fuels.

Economists from the International Energy Agency has clearly shown the strict correlation between Human Development (as defined by the UN) and energy security.

More information:

C. Ford Runge and Benjamin Senauer, How Biofuels Could Starve the Poor, Foreign Affairs, May/June 2007

Biopact: ICRISAT launches pro-poor biofuels initiative in drylands - March 15, 2007

IEA: World Energy Outlook, 2004 [*.pdf] [see Chapter 9, entirely devoted to "Energy and Development", one of the best introductions to the subject].

Biopact: Biofuels can cut poverty, provide energy and mitigate climate change – UN, April 14, 2005


2 Comments:

rufus said...

I would think that the incidence of hunger among the world's poor would be as closely aligned with the cost of oil as the cost of corn in Mn.

I'm suspicious of articles that overlook this obvious factor; and, I start wondering about the "funding."

3:15 PM  
Jonas Van Den Berg said...

Well, we happen to agree with this basic idea: the price of oil is ultimately to blame.

Consider what would happen without reliance on biofuels which are currently cheaper than petroleum? (Brazilian ethanol costs US$35 to US$40 per boe to produce - that is: US$ 25 to US$ 30 less than crude oil). Energy would become even more expensive.

There is a very large body of socio-economic research showing that energy scarcity and costly energy are extremely detrimental to both the economy of a country, as well as to its poorest people.

Lack of energy and costly energy stalls development, pushes up inflation and increases poverty (and ultimately food insecurity).

What are the alternatives to biofuels? Solar and wind? Obviously not, because they are far more expensive and they cannot be used for transport.

People should dig deeper and go beyond the simplistic notion that biofuels automatically mean increased poverty. Basically the contrary is true: biofuels can save scarce funds for poverty alleviation in developing countries, because they offset the need for imports of costly fossil fuels.

The matter is way to complex to be handled by the average journalist.

4:44 PM  

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