![Biofuel production by region, OWID](https://upload.wikimedia.org/wikipedia/commons/e/e1/Biofuel_production_by_region%2C_OWID.svg)
The use of
biofuel
Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels, such as oil. According to the United States Energy Information Administration (E ...
s varies by region.
The world leaders in biofuel development and use are Brazil, United States, France, Sweden and Germany.
Americas
Brazil
The government of
Brazil
Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
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.
Canada
The government of
Canada
Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...
aims for 45% of the country's gasoline consumption to contain 10% ethanol by 2010.
Colombia and Venezuela
Colombia
Colombia (, ; ), officially the Republic of Colombia, is a country in South America with insular regions in North America—near Nicaragua's Caribbean coast—as well as in the Pacific Ocean. The Colombian mainland is bordered by the Car ...
mandates the use of 10%
ethanol
Ethanol (abbr. EtOH; also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound. It is an Alcohol (chemistry), alcohol with the chemical formula . Its formula can be also written as or (an ethyl ...
in all gasoline sold in cities with populations exceeding 500,000.
In
Venezuela
Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...
, the state oil company is supporting the construction of 15 sugar cane distilleries over the next five years, as the government introduces an E10 (10% ethanol) blending mandate.
United States
The
Energy Policy Act of 2005
The Energy Policy Act of 2005 () is a federal law signed 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 ...
was passed by the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
Congress on July 29, 2005, and signed into law by President
George W. Bush
George Walker Bush (born July 6, 1946) is an American politician who served as the 43rd president of the United States from 2001 to 2009. A member of the Republican Party, Bush family, and son of the 41st president George H. W. Bush, he ...
on August 8, 2005, at
Sandia National Laboratories
Sandia National Laboratories (SNL), also known as Sandia, is one of three research and development laboratories of the United States Department of Energy's National Nuclear Security Administration (NNSA). Headquartered in Kirtland Air Force Ba ...
in
Albuquerque, New Mexico
Albuquerque ( ; ), ; kee, Arawageeki; tow, Vakêêke; zun, Alo:ke:k'ya; apj, Gołgéeki'yé. abbreviated ABQ, is the most populous city in the U.S. state of New Mexico. Its nicknames, The Duke City and Burque, both reference its founding in ...
. 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
A tax incentive is an aspect of a government's taxation policy designed to incentivize or encourage a particular economic activity by reducing tax payments.
Tax incentives can have both positive and negative impacts on an economy. Among the posi ...
and
loan guarantees for energy production of various types. In 2006, the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
president
George W. Bush
George Walker Bush (born July 6, 1946) is an American politician who served as the 43rd president of the United States from 2001 to 2009. A member of the Republican Party, Bush family, and son of the 41st president George H. W. Bush, he ...
said in a
State of the Union
The State of the Union Address (sometimes abbreviated to SOTU) is an annual message delivered by the president of the United States to a joint session of the United States Congress near the beginning of each calendar year on the current conditio ...
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
Ethanol fuel is ethyl alcohol, the same type of alcohol found in alcoholic beverages, used as fuel. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. The first production car running entirely on ethanol was the ...
in the US is produced from
corn
Maize ( ; ''Zea mays'' subsp. ''mays'', from es, maíz after tnq, mahiz), also known as corn (North American and Australian English), is a cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago. Th ...
. 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
The Committee on Energy and Commerce is one of the oldest standing committees of the United States House of Representatives. Established in 1795, it has operated continuously—with various name changes and jurisdictional changes—for more tha ...
, Congressman
Fred Upton
Frederick Stephen Upton (born April 23, 1953) is an American politician serving as a U.S. representative from Michigan since 1987, representing the state's 6th congressional district since 1993. He is a member of the Republican Party. His dist ...
introduced legislation to use at least E10 fuel by 2012 in all cars in the United States.
The 2007-12-19 US
Energy Independence and Security Act of 2007
The Energy Independence and Security Act of 2007Pub.L. 110-140, originally named the Clean Energy Act of 2007, is an Act of Congress concerning the energy policy of the United States. As part of the Democratic Party's 100-Hour Plan during the ...
requires American "fuel producers to use at least" "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.
Today most biofuels are not currently cost-effective without significant subsidies. "America's ethanol program is a product of government subsidies. There are more than 200 different kinds, as well as a 54 cents-a-gallon tariff on imported ethanol. This prices Brazilian ethanol out of an otherwise competitive market. Brazil makes ethanol from sugarcane rather than corn (maize), which has a better
EROEI
In energy economics and ecological energetics, energy return on investment (EROI), also sometimes called energy returned on energy invested (ERoEI), is the ratio of the amount of usable energy (the ''exergy'') delivered from a particular energy re ...
. Federal subsidies alone cost $7 billion a year (equal to around $1.90 a gallon)."
General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
is starting a project to produce
E85 fuel
E85 is an abbreviation typically referring to an ethanol fuel blend of 85% ethanol fuel and 15% gasoline or other hydrocarbon by volume.
In the United States, the exact ratio of fuel ethanol to hydrocarbon may vary according to ASTM 5798 that ...
from
cellulose ethanol for a projected cost of . This is optimistic, because $1 per US gallon equates to which is comparable to
woodchips
Woodchips are small- to medium-sized pieces of wood formed by cutting or chipping larger pieces of wood such as trees, branches, logging residues, stumps, roots, and wood waste.
Woodchips may be used as a biomass solid fuel and are raw material ...
at or
firewood
Firewood is any wooden material that is gathered and used for fuel. Generally, firewood is not highly processed and is in some sort of recognizable log or branch form, compared to other forms of wood fuel like pellets or chips. Firewood can ...
at , 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
Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and lar ...
are reduced by 86% for cellulose compared to corn's 29% reduction.
The
Food, Conservation, and Energy Act of 2008
The Food, Conservation, and Energy Act of 2008 (, also known as the 2008 U.S. Farm Bill) was a $288 billion, five-year agricultural policy bill that was passed into law by the United States Congress on June 18, 2008. The bill was a continuation ...
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
An agricultural subsidy (also called an agricultural incentive) is a government incentive paid to agribusinesses, agricultural organizations and farms to supplement their income, manage the supply of agricultural commodities, and influence t ...
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.
Asia
In 2007, the 10 ASEAN members and leaders from Australia, China, India, Japan, South Korea and New Zealand, signed the Cebu Declaration on the East Asian Energy Security Pact in the Philippines and agreed to promote the development of biofuels to reduce fossil fuel dependence and promote cleaner sources of energy.
Subsequently, several Asian countries formulated policies and set targets for biofuels utilization. The Philippine government passed a law that mandates a minimum of 1% biodiesel blend within three months and at least 2% biodiesel blend within two years upon the effectiveness of the Act, and at least 5% bioethanol blend within two years upon effectiveness of the Act and 10% bioethanol fuel within four years after (Philippine Republic Act No. 9637 or also known as the Philippine Biofuels Act).”
Thailand has established a 10% target for an ethanol mix in regular gasoline, while Malaysia has set a 5%
palm oil diesel
Vegetable oils are increasingly used as a substitute for fossil fuels. Vegetable oils are the basis of biodiesel, which can be used like conventional diesel. Some vegetable oil blends are used in unmodified vehicles, but straight vegetable oil oft ...
blend at domestic pumps. Indonesia plans to double the palm oil acreage area over the next 30 years.
China
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
has 45 listed companies doing biofuels-related businesses and is expected to grow even more because of China’s booming economy. Among the major foreign investors are Biolux Energy, Bright BioFuels (BBF), Sunshine Technology Group, and Asia Energy. As of 2008, China ranked No. 8 in Biofuels Country Attractiveness Indices commissioned by
Ernst & Young
Ernst & Young Global Limited, trade name EY, is a multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Deloitte, KPMG and Pricewaterh ...
. Since the late 1990s, China has set up major policies supporting the development and utilization of biofuels. In 2001, the government initially formulated the First Five-Year Plan for Bioethanol and the Special Development Plan for Denatured Fuel Ethanol and Bioethanol Gasoline for Automobiles. In early 2002, the National Development and Reform Commission (NDRC) and seven other ministries jointly issued two policy documents: the Pilot Testing Program of Bioethanol for Automobiles, and the Detail Regulations for Implementing the Pilot Testing Program of Bioethanol Gasoline for Automobiles. In 2003, a 10% ethanol (E10) blending for its automobile sector was initiated in three cities in Henan Province and in two cities in Heilongjiang Province. The following major support policies were provided to carry out the terms of the two policy documents: (i) a 5% consumption tax on all bioethanol under the E10 program was waived for all bioethanol plants; (ii) the value-added tax (normally 17%) on bioethanol production was refunded at the end of each year; (iii) all bioethanol plants received subsidized “old grain” (grains reserved in national stocks that are not suitable for human consumption) for feedstock. This subsidy was jointly provided by the central and local governments; and (iv) the government offered a subsidy to ensure a minimum profit for the bioethanol plants. This means that in the event that a bioethanol plant declares loss in production and marketing, the government will provide a subsidy equal to the gap between marketing revenues and production costs plus a reasonable profit that the firm could have obtained from an alternative investment. There are five licensed ethanol fuel producers and over 12 operational biodiesel plants and roughly 28 more under construction in China.
Among the licensed ethanol producers, the Jilin Fuel Alcohol Company is the largest, located in an industrial complex in the northern part of China near Jilin City, Jilin Province. The largest ethanol production facility was established in 2001 as a joint venture between PetroChina, Cofoco, and the Jilin Food Company. It has its own power station, water treatment facility, and employs about 430 employees of which 10% are at management level. All ethanol produced at this facility is blended by PetroChina, which has 20 ethanol blending stations in Jilin Province. Bioethanol plants are required by the government to sell their produced fuel ethanol only to appointed oil companies, such as PetroChina or Sinopec at a price of 0.91 or about $0.82/liter. The government subsidizes the gap between the sale price and production cost. China's potential marginal arable lands are limited and most are fragmented. In a 2003-2004 survey conducted by the Ministry of Land and Resources, potential arable lands that are not fragmented amounted only to 7.3 million hectares, accounting for 8.28% of total reserved land.
India
In
India
India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...
imports 85% of petrol products with import cost of $55 billion in 2020–21, India has set a target of blending 20%
ethanol
Ethanol (abbr. EtOH; also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound. It is an Alcohol (chemistry), alcohol with the chemical formula . Its formula can be also written as or (an ethyl ...
in petrol by 2025 resulting in import substitution saving of US$4 billion and India provides financial assistance for manufacturing ethanol from rice, wheat, barley, corn, sorghum, sugarcane, sugar beet, etc.
Ethanol market penetration reached its highest figure of a 3.3% blend rate in India in 2016.
The country aims to replace 20% of the country's diesel requirement with biodiesel in accordance with the National Biodiesel Mission (NBM) by 2012. The NBM has been, and will continue to be, implemented in two stages: First is a demonstration project, which was carried out over the period 2003-2007 aimed at cultivating 400,000 hectares of Jatropha expected to yield about 3.75 tons of oilseed per hectare annually. The project has also demonstrated the viability of other related activities/projects such as seed collection and oil extraction. In addition, the government will build a transesterification plant. Second, a commercialisation period which started in 2007 and will proceed until 2012 will continue with Jatropha cultivation. The plan also involves the installation of more transesterification plants that will position India to meet 20% of its diesel needs through biodiesel. High ethanol prices and low availability of sources has compelled the government to amend its 5% blending target with the notification that 5% bioethanol blended petrol shall be supplied in identified areas if (a) the indigenous price of ethanol offered for ethanol blended petrol programme is comparable to that offered by the indigenous ethanol industry for alternative uses, (b) the indigenous delivery price of ethanol offered for the ethanol blended petrol programme at a particular location is comparable to the import parity price of petrol at that location, and (c) there is an adequate supply of ethanol.
To encourage investment, there are also tax incentives and excise cuts. At the state level, the Maharashtra government offers waivers of government fee from the 1 percent turnover tax on anhydrous ethanol, ₹ 500 per kilolitre (kl) (US$0.048 per US gallon) permit fee, 4% sales tax, 10% surcharge on sales tax, ₹ 1,500/kl (US$0.14/US gal) import fee, ₹ 300/kl (US$0.029/US gal) service charges and 3% Octroi, which is a local tax collected on various articles brought into the district for consumption.
By 2030, it is expected that India will soon become the world's third largest economy due to its speedy growth. In 2005, the GDP of India was US$0.6 trillion, and it is forecasted to reach US$6.1 trillion by the year 2030 at an annual growth rate of 9%.
In 2014, India had 125 ethanol producers, mostly in sugarcane producing states, with a total capacity of 1.25 billion litres of ethanol. India ranks No. 12 in the 2008 Ernst and Young Indices.
Earlier in 2003, the national government set a 5% mandated bioethanol blending target for petrol, initiated a program to raise blending requirement from E5 to E10 and then E20, and since then petroleum with an ethanol blend was developed and has been used across the nation.
In 2005, the country became the world's fourth largest producer of ethanol at 1.6 billion litres and at the same time the world's largest consumer of sugar.
Indonesia
On January 25, 2006, the government of
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania between the Indian and Pacific oceans. It consists of over 17,000 islands, including Sumatra, Java, Sulawesi, and parts of Borneo and New Guine ...
issued Presidential Instruction (Instruksi Presiden RI) No 1/2006 regarding “Provision and Utilisation of Biofuel as Alternative Fuel” as the legal framework for biofuels development in the country. Accordingly, 10% of bioethanol and biodiesel are allowed to blend with gasoline and diesel. To attract more investors, the government provides investment tax incentives through Government Regulation No. 62/2008, which has the following salient features: (i) 30% reduction of net income from the total investment, applied for 6 yrs, or 5% every year; (ii) expediting depreciation and amortization method; (iii) lower income tax (10%) compared to (15%) in the past for royalties earned by foreign tax payers; and (iv) a longer period of compensation of loss—more than 5 yrs but less than 10 years. To help small farmers, the Ministry of Finance issued Regulation No. 117/PMK.06/2006 or Credit for the Development of Bio-fuel Energy and Plantation Revitalization. This is a subsidized credit scheme for farmers involving several government owned banks—PT. BRI, PT. Bank Mandiri, PT. Bank Bukopin, PT. Bank Sumut, and BPD Sumbar. An interest rate subsidy was also allocated. For example, the market rate for cassava is 18%, while for farmers it is only 9%. Likewise, the market rate for sugar cane where it is 18% but the rate charged to farmers is only 12%. During the initial period, there were only two biodiesel plants in Indonesia: PPKS in Medan and Eterindo in Gresik. At present, there are nine ethanol plants with a total production capacity of 133,632 kiloliters, and some of them began to produce as early as 2007 with oil palm plantation among others like PT Musimas with a capacity of 100,000 tons per year in North Sumatra and PT Prajona Nelayan with a capacity of 60,000 tons per year in Riau. Dumai, also in Riau, was identified by the Indonesian government as the largest biodiesel development center in Indonesia, considering its abundant supply of raw materials including, oil palm in this area, supported by the availability of port facilities and the existence of the largest biofuel processing plant (PT Wilmar Bioenergi with production capacity of 350,000 tons per day). As of 2009, Indonesia has 32 listed companies that are involved in the biofuels industry utilizing sugarcane, cassava, and coconut (according to a presentation delivered by the Directorate General of Electricity and Energy Utilization of the Ministry of Energy and Mineral Resources, Republic of Indonesia in the 2nd Asia Biomass Energy workshop, Biofuels Database in East Asia held last December 8–10, 2009 in Kyoto, Japan). Of these 32 companies, nine of them are ethanol producers with a total production capacity of 133,632 kiloliters. Of nine of these companies, only two of them produce ethanol with specifications for fuel or bioethanol. These companies are PT Bukitmanikam Subur Persada in Lampung and PT Indo Acidama Chemical in Surabaya. Total production capacity of these companies reached 93,282 kiloliter per year. Due to Indonesia's initiatives to increase the cultivation of natural resources in terms of biofuel production in coordination with ethanol producers, the country was able to rank No. 14 in the Ernst and Young's Biofuels Indices in 2008.
Israel
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
''Jatropha'' is a genus of flowering plants in the spurge family, Euphorbiaceae. The name is derived from the Greek words ἰατρός (''iatros''), meaning "physician", and τροφή (''trophe''), meaning "nutrition", hence the common name ...
,
castor, cellulosic biomass and
algae
Algae (; singular alga ) is an informal term for a large and diverse group of photosynthetic eukaryotic organisms. It is a polyphyletic grouping that includes species from multiple distinct clades. Included organisms range from unicellular mic ...
. In June 2008,
Tel Aviv
Tel Aviv-Yafo ( he, תֵּל־אָבִיב-יָפוֹ, translit=Tēl-ʾĀvīv-Yāfō ; ar, تَلّ أَبِيب – يَافَا, translit=Tall ʾAbīb-Yāfā, links=no), often referred to as just Tel Aviv, is the most populous city in the G ...
-based Seambiotic and Seattle-based Inventure Chemical announced a joint venture to use emissions-fed algae to make ethanol and biodiesel at a biofuel plant in
Israel
Israel (; he, יִשְׂרָאֵל, ; ar, إِسْرَائِيل, ), officially the State of Israel ( he, מְדִינַת יִשְׂרָאֵל, label=none, translit=Medīnat Yīsrāʾēl; ), is a country in Western Asia. It is situated ...
.
Malaysia
Beginning in 1982,
Malaysia
Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...
developed a comprehensive biofuels programme where palm methyl esthers and a 5% blend of processed palm oil were the primary additives to 95% petroleum diesel as transport fuels. At present, Malaysia Energy Centre forecasted that for the next 25 years the country's energy requirements would be tripled from its present consumption levels and expand at a 5.2% annual rate. According to Malaysia's national oil company Petronas, the country's reserves of 5.2 billion barrels of crude oil may only last for another 20 years at the present rate of extraction unless new oil fields are explored or new sources of energy emerge. In pursuit of energy security through diversification, Malaysia passed the Five Fuel Diversification Strategy. Under this strategy, the Malaysian government enacted the National Biofuel Policy (NBP) in August 2005 to develop a framework for biofuels. The NBP aims to supplement the diminishing supply of fossil fuels with renewable resources and has mobilized local resources for biofuel production. This effort involves the exploitation of local technology to generate energy for the transportation and industrial sectors and to pave the way for the export of biofuels. The NBP operates through five strategic objectives:
*Objective 1: Biofuel for Transport. Diesel for land and sea transport will be a blend of 5% processed palm oil and 95% petroleum diesel. This ‘B5’ would be made available throughout the country.
*Objective 2: Biofuel for Industry. Supply B5 diesel to the industrial sector, to be used as fuel in industrial boilers, construction machinery, and diesel-powered generators.
*Objective 3: Biofuel Technologies. Promote research, development, and commercialization of biofuel technologies.
*Objective 4: Biofuel for Export. Encourage and facilitate the establishment of plants for producing biofuels for export.
*Objective 5: Biofuel for a Cleaner Environment. Enhance the quality of the ambient air, reduce the use of fossil fuels, and minimize emissions of greenhouse gases (mainly carbon dioxide), carbon monoxide, sulphur dioxide and particulates through the increased use of biofuels.
In August 2006, Malaysia's pioneer commercial biodiesel plant started its initial operations. A total of 55,000 tons of biodiesel were produced between August and December 2006, and in 2007 production, escalated to 130,000 tons. RBD palm oil was the primary feedstock used, which accounted for 94% of the total processed palm oil for biodiesel. To regulate the biofuel industry and promote its further development, the Lower House of the Parliament passed the Biofuel Industries Act in April 2007. This statute provides for the mandatory use of biofuels and the licensing of biofuel-related activities; it also allows the licensing authority to revoke or suspend any license if the licensee has ceased to produce, operate or carry out any activity for which the license was issued. The Malaysian government also approved in the same year a total of 92 biodiesel projects, 57 which were installed in Peninsular Malaysia and 35 located in East Malaysia, with a combined annual production capacity of 10.4 million tons or 11.7 billion liters. But at that time, there were only five plants in operation with combined production capacities of 400,000 tons per year. Therefore, an additional seven plants with production capacities of 615,000 tons were constructed during that year. As of September 2008, there were 14 functional biodiesel plants, but only eight were in operation while the other four had suspended operations due to incessant price increases of biodiesel feedstock. From January to September 2008, the estimated total production capacity was 130,000 tons of biodiesel.
Philippines
In 2004, demand for imported fossil fuel products in the Philippines reached approximately 106.5 million barrels of fuel oil, equivalent (MBFOE) to roughly 39% of the total primary energy supply mix. This volume was 96% of the total petroleum supply, reflecting the country's tremendous dependence on imported fossil fuel. The Philippines’ total indigenous local energy production (including coal, oil, natural gas, geothermal, hydropower, biomass, solar and wind) was 139.72 MMBFOE, which in 2004 translated to energy self-sufficiency level of 51%. In terms of foreign exchange, the importations volume has reach an equivalent to roughly US$3.8 billion of currency outflow on an annual basis, the transportation sector representing the largest consumer. Accordingly, they utilized at least 56 MBFOE, equivalent to 28.7% of the country's total consumption. In response to this foreseen dilemma, the Philippine government formulated a national policy that would reduce the country's dependence on imported fossil fuel, protect public health, the environment, and the country's natural ecosystem. This initiative would also generate opportunities for the livelihoods of people, particularly in the countryside. On January 12, 2007, Republic Act No. 9367, or the Biofuels Act, was enacted to develop and utilize indigenous, renewable, and sustainable clean energy sources. The statute mandates the use of bioethanol, biodiesel, and other fuels made from biomass as alternative forms of energy. Two of the salient features of the law include a 5% minimum ethanol blend to gasoline within two years of the Biofuels Act and a 10% minimum blend two years thereafter. Based on the Philippine Energy Plan (2007-2014), a 5% minimum blend was required amounting to 208.11 million liters of ethanol by 2009. With a 10% blend, 460.63 million liters (inclusive of consumption growth rate) will be needed by 2011.
On December 16, 2008, the Renewable Energy Act of 2008 was signed into law to accelerate the exploration, development, and utilization of renewable energy resources, including biofuels and to provide a legal and institutional framework to harmonize the fragmented policies for renewable energy in the country. One salient feature of the policy is to create an environment conducive to investments through the provision of the following incentives: (a) duty-free importation of renewable energy (RE) machinery, equipment and materials over the initial 10 years through the issuance of certifications to RE developers; (b) duty-free importation of farm machinery and agricultural inputs during the initial 10 years from the effectivity of the Renewable Energy law; (c) income tax holidays over the first seven years of commercial operation; (d) accelerated depreciation if an RE fails to receive an ITH before full operation; (e) cash incentives from RE Developers for Missionary Electrification, i.e., 50% of the universal charge for power needed to service missionary areas; (f) corporate tax rates of 10% on its net taxable income after the initial seven-year ITH period; (g) tax exemptions for carbon credits; (h) special realty tax rates of not more than 1.5% on equipment and machinery, civil works, and other improvements; and (i) net operating loss carry-over (NOLCO) during the first three years of commercial operation will be deductible from gross income over the next seven years of operation. As of 2009, the Department of Energy has accredited 12 producers of Coconut Methyl Ester (CME) for biodiesel with a total production capacity of 395,620,165 liters. The Sugar Regulatory Administration (SRA) has accredited two producers of bioethanol (from sugarcane) with a total production capacity of 39 million liters per year.
Thailand
The Thai government instituted the use of gasohol in government vehicles to set an example and to ensure public confidence in biofuels. In 2000, a biomass ethanol project was approved by the Cabinet to encourage investors from the ethanol and biodiesel industries. As a result, 24 investment permits were issued to producers, resulting in a combined production capacity of 4,115,000 liters per day, The following year, three investment permits with a total production capacity of 595,000 liters per day were issued but allegedly, due to uncertainties involving the price of ethanol, construction of the ethanol plants was delayed. To encourage more investors and ensure a sufficient ethanol supply, the government lifted the ceiling on investment permits. Additionally, the Thai government provides zero taxes on imported equipment and machinery and zero income tax for eight years. On September 14, 2006, 18 more permits were granted to ethanol producers enabling the country to reach a total production capacity of 5,730,000 liters per day. The Thai government has a policy of non-intervention for biodiesel production, and interested parties are encouraged to apply for permits to the Department of Industrial Plants, Ministry of Industry. Two sub-committees were appointed by the Energy Policy Committee to oversee ethanol and biodiesel production.
In 2006, the Ministry of Energy (MOE) placed a target on ethanol use as a substitute for methyl tertiary butyl ether mixed with 95 octane gasoline and also to substitute a portion of 91 octane gasoline at the rate of 1.00 million liters per day. However, due to an economic slowdown and price effect of gasoline consumption, the MOE reduced its target to 2.40 million liters per day. The blending target for biodiesel for the whole country is 5% or 3.96 million liters per day of B100. The initial intention was to increase by 10% or 8.50 million liters per day in 2012, but for the same reasons mentioned above, the 2011 target was revised and slashed to 3.02 million liters per day of B100. On November 22, 2007, the MOE and Bank of Agriculture and Agricultural Cooperatives (BAAC) decided to provide low-interest, B7,000 million loans to farmers to grow palm oil for 10 years at a minimum return rate of -0.5% as a support to their livelihood. To formulate a comprehensive framework for oil palm development, the cabinet approved on January 15, 2008, a government order to set up a National Oil Palm Policy. The Department of Alternative Energy Development and Efficiency under the Ministry of Energy reported that Thailand has at least 48 registered number ethanol companies and 14 biodiesel producers as of 2009.
Europe
European Union
The
European Union
The European Union (EU) is a supranational political and economic union of member states that are located primarily in Europe. The union has a total area of and an estimated total population of about 447million. The EU has often been des ...
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%. These targets were reduced in 2015 in light of certain environmental and social concerns associated with biofuels such as rising
food prices
Food prices refer to the average price level for food across countries, regions and on a global scale. Food prices have an impact on producers and consumers of food.
Price levels depend on the food production process, including food marketing an ...
and
deforestation
Deforestation or forest clearance is the removal of a forest or stand of trees from land that is then converted to non-forest use. Deforestation can involve conversion of forest land to farms, ranches, or urban use. The most concentrated d ...
.
France
France
France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...
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
Toes are the digits (fingers) of the foot of a tetrapod. Animal species such as cats that walk on their toes are described as being ''digitigrade''. Humans, and other animals that walk on the soles of their feet, are described as being ''plan ...
(i.e. 1.6% of French fuel consumption). Biodiesel represents the largest share of this (78%, far ahead of
bioethanol
Ethanol (abbr. EtOH; also called ethyl alcohol, grain alcohol, drinking alcohol, or simply alcohol) is an organic compound. It is an Alcohol (chemistry), alcohol with the chemical formula . Its formula can be also written as or (an ethyl ...
with 22%). The unquestionable biodiesel leader in Europe is the French company
Diester Industrie producing of 2 million tons of biodiesel. In bioethanol, the French agro-industrial group
Téréos is increasing its production capacities. Although France is bound by the E
Renewable Energy Directivean
Fuel Quality Directive the country ha
not yet implementedany legislation promoting the use of renewable energies to date.
Germany
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...
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
The Archer-Daniels-Midland Company, commonly known as ADM, is an American multinational food processing and commodities trading corporation founded in 1902 and headquartered in Chicago, Illinois. The company operates more than 270 plants and 4 ...
. 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
Südzucker AG (, literally ''South sugar'') is a Germany, German company, the largest sugar producer in the world, with an annual production of around 4.8 million tonnes.
In February 2014, the Federal Cartel Office imposed a joint fine of 280 mi ...
. Germany ha
enacted legislationto promote the use of biofuels in transport through 2014 in partial compliance with the
Renewable Energy Directive and
Fuel Quality Directive.
Spain
The
Spanish
Spanish might refer to:
* Items from or related to Spain:
**Spaniards are a nation and ethnic group indigenous to Spain
**Spanish language, spoken in Spain and many Latin American countries
**Spanish cuisine
Other places
* Spanish, Ontario, Can ...
group
Abengoa
Abengoa, S.A. was a Spanish multinational company in the green infrastructure, energy and water sectors. The company was founded in 1941 by Javier Benjumea Puigcerver and José Manuel Abaurre Fernández-Pasalagua, and was based in Seville, Sp ...
, via its American subsidiary Abengoa Bioenergy, is the European leader in production of bioethanol. Spain ha
enacted legislationto promote the use of biofuels in transport through 2013 in partial compliance with th
REDan
FQD
Sweden
The government of
Sweden
Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic country located on ...
and the national association of auto makers, BIL Sweden, have started work to end oil dependency. One-fifth of cars in
Stockholm
Stockholm () is the Capital city, capital and List of urban areas in Sweden by population, largest city of Sweden as well as the List of urban areas in the Nordic countries, largest urban area in Scandinavia. Approximately 980,000 people liv ...
can run on alternative fuels, mostly
ethanol fuel
Ethanol fuel is ethyl alcohol, the same type of alcohol found in alcoholic beverages, used as fuel. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. The first production car running entirely on ethanol was the ...
. Stockholm is to introduce a fleet of Swedish-made hybrid ethanol-electric buses.
United Kingdom
In the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
, the
Renewable Transport Fuel Obligation
The Renewable Transport Fuel Obligation (RTFO) in the United Kingdom is a requirement on transport fuel suppliers to ensure that 5 per cent of all road vehicle fuel is supplied from sustainable renewable sources by 2010. The Government intend ...
(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
The Royal Society, formally The Royal Society of London for Improving Natural Knowledge, is a learned society and the United Kingdom's national academy of sciences. The society fulfils a number of roles: promoting science and its benefits, re ...
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''.
Developing countries
Biofuel industries are becoming established in many
developing countries
A developing country is a sovereign state with a lesser developed industrial base and a lower Human Development Index (HDI) relative to other countries. However, this definition is not universally agreed upon. There is also no clear agreem ...
. 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
''Jatropha'' is a genus of flowering plants in the spurge family, Euphorbiaceae. The name is derived from the Greek words ἰατρός (''iatros''), meaning "physician", and τροφή (''trophe''), meaning "nutrition", hence the common name ...
, 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
The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the entire global energy sector, with a recent focus on curbing carb ...
(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.
[Scientific American] 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
microloan
:''This article is specific to small loans, often provided in a pooled manner. For direct payments to individuals for specific projects, see Micropatronage. For financial services to the poor, see Microfinance. For small payments, see Micropay ...
s. Organizations such as
Intermediate Technology Development Group
Practical Action (previously known as the Intermediate Technology Development Group, ITDG) is a development charity registered in the United Kingdom which works directly in four regions of the developing world – Latin America, East Africa, Sou ...
work to make improved facilities for biofuel use and better alternatives accessible to those who cannot get them.
See also
*
European Biofuels Technology Platform
*
List of algal fuel producers
*
Biofuel advocacy groups
*
List of biofuel companies and researchers First-generation biofuels
First-generation biofuels use the edible parts of food plants as their carbon source feedstock. Due to this, the production of fuel from these crops effectively creates problems in regard to the global food production.
* ...
*
Biodiesel by region
This article describes the use and availability of biodiesel in various countries around the world.
Argentina
Argentina’s biodiesel industries are booming as a result of domestic demand along with strong export markets. Biodiesel production i ...
*
List of renewable energy topics by country
This is a list of renewable energy topics by country and territory. These links can be used to compare developments in renewable energy in different countries and territories and to help and encourage new writers to participate in writing about ...
References
External links
The European Biofuels Challenge Developments in European Union Policy and Industry DriversBioenergyWiki: EU biofuel policy trackerRenewable Energy Directive
Fuel Quality Directive
{{Renewable energy by country
Biofuels