Social and economic effects
Oil price moderation
The International Energy Agency's World Energy Outlook 2006
concludes that rising oil demand, if left unchecked,
would accentuate the consuming countries' vulnerability to a severe
supply disruption and resulting price shock. The report suggested that
biofuels may one day offer a viable alternative, but also that "the
implications of the use of biofuels for global security as well as for
economic, environmental, and public health need to be further
evaluated".
According to Francisco Blanch, a commodity strategist for Merrill Lynch,
crude oil would be trading 15 per cent higher and gasoline would be as
much as 25 per cent more expensive, if it were not for biofuels. Gordon Quaiattini, president of the Canadian Renewable Fuels Association, argued that a healthy supply of alternative energy sources will help to combat gasoline price spikes.
"Food vs. fuel" debate
Food vs fuel is the debate regarding the risk of diverting farmland or crops for biofuels production in detriment of the food supply
on a global scale. Essentially the debate refers to the possibility
that by farmers increasing their production of these crops, often
through government subsidy incentives, their time and land is shifted
away from other types of non-biofuel crops driving up the price of
non-biofuel crops due to the decrease in production.
Therefore, it is not only that there is an increase in demand for the
food staples, like corn and cassava, that sustain the majority of the
world's poor but this also has the potential to increase the price of
the remaining crops that these individuals would otherwise need to
utilize to supplement their diets. A recent study for the International
Centre for Trade and Sustainable Development shows that market-driven
expansion of ethanol
in the US increased maize prices by 21 percent in 2009, in comparison
with what prices would have been had ethanol production been frozen at
2004 levels.
A November 2011 study states that biofuels, their production, and their
subsidies are leading causes of agricultural price shocks.
The counter-argument includes considerations of the type of corn that
is utilized in biofuels, often field corn not suitable for human
consumption; the portion of the corn that is used in ethanol, the starch
portion; and the negative effect higher prices for corn and grains have
on government welfare for these products. The "food vs. fuel" or "food
or fuel" debate is internationally controversial, with disagreement
about how significant this is, what is causing it, what the effect is,
and what can or should be done about it.
Poverty reduction
Researchers at the Overseas Development Institute have argued that biofuels could help to reduce poverty in the developing world, through increased employment, wider economic growth multipliers and by stabilising oil prices (many developing countries are net importers of oil).
However, this potential is described as 'fragile', and is reduced where
feedstock production tends to be large scale, or causes pressure on
limited agricultural resources: capital investment, land, water, and the
net cost of food for the poor.
With regards to the potential for poverty reduction or
exacerbation, biofuels rely on many of the same policy, regulatory or
investment shortcomings that impede agriculture as a route to poverty reduction.
Since many of these shortcomings require policy improvements at a
country level rather than a global one, they argue for a
country-by-country analysis of the potential poverty effects of
biofuels. This would consider, among other things, land administration
systems, market coordination and prioritizing investment in biodiesel, as this 'generates more labour, has lower transportation costs and uses simpler technology'.
Also necessary are reductions in the tariffs on biofuel imports
regardless of the country of origin, especially due to the increased
efficiency of biofuel production in countries such as Brazil.
Sustainable biofuel production
Responsible policies and economic instruments would help to ensure
that biofuel commercialization, including the development of new cellulosic technologies, is sustainable.
Responsible commercialization of biofuels represents an opportunity
to enhance sustainable economic prospects in Africa, Latin America and
impoverished Asia.
Environmental effects
Soil erosion and deforestation
Large-scale deforestation of mature trees (which help remove CO2 through photosynthesis — much better than sugar cane or most other biofuel feedstock crops do) contributes to soil erosion, un-sustainable global warming atmospheric greenhouse gas levels, loss of habitat, and a reduction of valuable biodiversity (both on land as in oceans). Demand for biofuel has led to clearing land for palm oil plantations. In Indonesia alone, over 9,400,000 acres (38,000 km2) of forest have been converted to plantations since 1996.
A portion of the biomass should be retained onsite to support the
soil resource. Normally this will be in the form of raw biomass, but
processed biomass is also an option. If the exported biomass is used to
produce syngas, the process can be used to co-produce biochar, a low-temperature charcoal used as a soil amendment to increase soil organic matter
to a degree not practical with less recalcitrant forms of organic
carbon. For co-production of biochar to be widely adopted, the soil
amendment and carbon sequestration value of co-produced charcoal must
exceed its net value as a source of energy.
Some commentators claim that removal of additional cellulosic biomass for biofuel production will further deplete soils.
Effect on water resources
Increased
use of biofuels puts increasing pressure on water resources in at least
two ways: water use for the irrigation of crops used as feedstocks for
biodiesel production; and water use in the production of biofuels in
refineries, mostly for boiling and cooling.
In many parts of the world supplemental or full irrigation is
needed to grow feedstocks. For example, if in the production of corn
(maize) half the water needs of crops are met through irrigation and the
other half through rainfall, about 860 liters of water are needed to
produce one liter of ethanol.
However, in the United States only 5-15% of the water required for corn
comes from irrigation while the other 85-95% comes from natural
rainfall.
In the United States, the number of ethanol factories has almost
tripled from 50 in 2000 to about 140 in 2008. A further 60 or so are
under construction, and many more are planned. Projects are being
challenged by residents at courts in Missouri (where water is drawn from
the Ozark Aquifer), Iowa, Nebraska, Kansas (all of which draw water from the non-renewable Ogallala Aquifer), central Illinois (where water is drawn from the Mahomet Aquifer) and Minnesota.
For example, the four ethanol crops: corn, sugarcane, sweet
sorghum and pine yield net energy. However, increasing production in
order to meet the U.S. Energy Independence and Security Act mandates for
renewable fuels by 2022 would take a heavy toll in the states of
Florida and Georgia. The sweet sorghum, which performed the best of the
four, would increase the amount of freshwater withdrawals from the two
states by almost 25%.
Pollution
Formaldehyde, acetaldehyde and other aldehydes are produced when alcohols are oxidized. When only a 10% mixture of ethanol is added to gasoline (as is common in American E10 gasohol and elsewhere), aldehyde emissions increase 40%.
Some study results are conflicting on this fact however, and lowering
the sulfur content of biofuel mixes lowers the acetaldehyde levels.
Burning biodiesel also emits aldehydes and other potentially hazardous
aromatic compounds which are not regulated in emissions laws.
Many aldehydes are toxic to living cells. Formaldehyde irreversibly cross-links protein amino acids,
which produces the hard flesh of embalmed bodies. At high
concentrations in an enclosed space, formaldehyde can be a significant
respiratory irritant causing nose bleeds, respiratory distress, lung
disease, and persistent headaches.
Acetaldehyde, which is produced in the body by alcohol drinkers and
found in the mouths of smokers and those with poor oral hygiene, is
carcinogenic and mutagenic.
The European Union has banned products that contain Formaldehyde, due to its documented carcinogenic characteristics. The U.S. Environmental Protection Agency has labeled Formaldehyde as a probable cause of cancer in humans.
Brazil burns significant amounts of ethanol biofuel. Gas chromatograph
studies were performed of ambient air in São Paulo, Brazil, and
compared to Osaka, Japan, which does not burn ethanol fuel. Atmospheric
Formaldehyde was 160% higher in Brazil, and Acetaldehyde was 260%
higher.
Technical issues
Energy efficiency and energy balance
Despite
its occasional proclamation as a “green” fuel, first-generation
biofuels, primarily ethanol, are not without their own GHG emissions.
While ethanol does produce fewer overall GHG emissions than gasoline,
its production is still an energy intensive process with secondary
effects. Gasoline generally produces 8.91 kg CO2 per gallon, compared to
8.02 kg CO2 per gallon for E10 ethanol and 1.34 kg CO2 per gallon for
E85 ethanol. Based on a study by Dias de Oliveira et al. (2005),
corn-based ethanol requires 65.02 gigajoules (GJ) of energy per hectare
(ha) and produces approximately 1236.72 kg per ha of carbon dioxide
(CO2), while sugar cane-based ethanol requires 42.43 GJ/ha and produces
2268.26 kg/ha of CO2 under the assumption of non-carbon neutral energy
production. These emissions accrue from agricultural production, crop
cultivation, and ethanol processing. Once the ethanol is blended with
gasoline, it results in carbon-savings of approximately 0.89 kg of CO2
per gallon consumed (U.S. D.O.E., 2011a).
Economic viability
From
a production standpoint, miscanthus can produce 742 gallons of ethanol
per acre of land, which is nearly twice as much as corn (399 gal/acre,
assuming average yield of 145 bushels per acre under normal corn-soybean
rotation) and nearly three times as much as corn stover (165 gal/acre)
and switchgrass (214 gal/acre). Production costs are a big impediment to
large-scale implementation of 2nd Generation bio-fuels, and their
market demand will depend primarily on their price competitiveness
relative to corn ethanol and gasoline. At this time, costs of conversion
of cellulosic fuels, at $1.46 per gallon, were roughly twice that of
corn-based ethanol, at $0.78 per gallon. Cellulosic biofuels from corn
stover and miscanthus were 24% and 29% more expensive than corn ethanol,
respectively, and switchgrass biofuel is more than twice as expensive
as corn ethanol.
| Description (CASE) (‘000 US$) | Developed Nation (2G) CASE A | Developing Nation (2G) CASE B | Developed Nation (1G) CASE C | Developing Nation (1G) CASE D |
| Operating Profit | 209,313 | -1,176,017 | 166,952 | -91,300 |
| Net Present Value | 100,690 | -1,011,217 | 40,982 | 39,224 |
| Return on Investment | 1.41 | 0.32 | 1.17 | 0.73 |
Carbon emissions
Graph of UK figures for the carbon intensity of bioethanol and fossil fuels.
This graph assumes that all bioethanols are burnt in their country of
origin and that previously existing cropland is used to grow the
feedstock.
Biofuels and other forms of renewable energy aim to be carbon neutral
or even carbon negative. Carbon neutral means that the carbon released
during the use of the fuel, e.g. through burning to power transport or
generate electricity, is reabsorbed and balanced by the carbon absorbed
by new plant growth. These plants are then harvested to make the next
batch of fuel. Carbon neutral fuels lead to no net increases in human
contributions to atmospheric carbon dioxide levels, reducing the human contributions to global warming. A carbon negative aim is achieved when a portion of the biomass is used for carbon sequestration. Calculating exactly how much greenhouse gas
(GHG) is produced in burning biofuels is a complex and inexact process,
which depends very much on the method by which the fuel is produced and
other assumptions made in the calculation.
The carbon emissions (carbon footprint) produced by biofuels are calculated using a technique called Life Cycle Analysis
(LCA). This uses a "cradle to grave" or "well to wheels" approach to
calculate the total amount of carbon dioxide and other greenhouse gases
emitted during biofuel production, from putting seed in the ground to
using the fuel in cars and trucks. Many different LCAs have been done
for different biofuels, with widely differing results. Several well-to-wheel
analysis for biofuels has shown that first generation biofuels can
reduce carbon emissions, with savings depending on the feedstock used,
and second generation biofuels can produce even higher savings when
compared to using fossil fuels. However, those studies did not take into account emissions from nitrogen fixation, or additional carbon emissions due to indirect land use changes.
In addition, many LCA studies fail to analyze the effect of
substitutes that may come into the market to replace current
biomass-based products. In the case of Crude Tall Oil, a raw material
used in the production of pine chemicals and now being diverted for use
in biofuel, an LCA study
found that the global carbon footprint of pine chemicals produced from
CTO is 50 percent lower than substitute products used in the same
situation offsetting any gains from utilizing a biofuel to replace
fossil fuels. Additionally the study showed that fossil fuels are not
reduced when CTO is diverted to biofuel use and the substitute products
consume disproportionately more energy. This diversion will negatively
affect an industry that contributes significantly to the world economy,
globally producing more than 3 billion pounds of pine chemicals
annually in complex, high technology refineries and providing jobs
directly and indirectly for tens of thousands of workers.
A paper published in February 2008 in Sciencexpress by a team led by Searchinger from Princeton University concluded that once considered indirect land use changes effects in the life cycle assessment
of biofuels used to substitute gasoline, instead of savings both corn
and cellulosic ethanol increased carbon emissions as compared to
gasoline by 93 and 50 percent respectively. A second paper published in the same issue of Sciencexpress, by a team led by Fargione from The Nature Conservancy,
found that a carbon debt is created when natural lands are cleared and
being converted to biofuel production and to crop production when
agricultural land is diverted to biofuel production, therefore this
carbon debt applies to both direct and indirect land use changes.
The Searchinger and Fargione studies gained prominent attention in both the popular media and in scientific journals.
The methodology, however, drew some criticism, with Wang and Haq from
Argonne National Laboratory posted a public letter and send their
criticism about the Searchinger paper to Letters to Science. Another criticism by Kline and Dale from Oak Ridge National Laboratory was published in Letters to Science. They argued that Searchinger et al. and Fargione et al. "...do not provide adequate support for their claim that biofuels cause high emissions due to land-use change. The U.S. biofuel industry also reacted, claiming in a public letter, that the "Searchinger study is clearly a "worst-case scenario" analysis..." and that this study "relies on a long series of highly subjective assumptions...".
Engine design
The
modifications necessary to run internal combustion engines on biofuel
depend on the type of biofuel used, as well as the type of engine used.
For example, gasoline engines can run without any modification at all on
biobutanol. Minor modifications are however needed to run on bioethanol or biomethanol. Diesel engines can run on the latter fuels, as well as on vegetable oils (which are cheaper). However, the latter is only possible when the engine has been foreseen with indirect injection. If no indirect injection is present, the engine hence needs to be fitted with this.
Campaigns
A
number of environmental NGOs campaign against the production of biofuels
as a large-scale alternative to fossil fuels. For example, Friends of the Earth
state that "the current rush to develop agrofuels (or biofuels) on a
large scale is ill-conceived and will contribute to an already
unsustainable trade whilst not solving the problems of climate change or
energy security". Some mainstream environmental groups support biofuels as a significant step toward slowing or stopping global climate change.
However, supportive environmental groups generally hold the view that
biofuel production can threaten the environment if it is not done
sustainably. This finding has been backed by reports of the UN, the IPCC, and some other smaller environmental and social groups as the EEB and the Bank Sarasin, which generally remain negative about biofuels.
As a result, governmental
and environmental organizations are turning against biofuels made in a
non-sustainable way (hereby preferring certain oil sources as jatropha and lignocellulose over palm oil) and are asking for global support for this.
Also, besides supporting these more sustainable biofuels, environmental
organizations are redirecting to new technologies that do not use internal combustion engines such as hydrogen and compressed air.
Several standard-setting and certification initiatives have been
set up on the topic of biofuels. The "Roundtable on Sustainable
Biofuels" is an international initiative which brings together farmers,
companies, governments, non-governmental organizations, and scientists
who are interested in the sustainability of biofuels production and
distribution. During 2008, the Roundtable is developing a series of
principles and criteria for sustainable biofuels production through meetings, teleconferences, and online discussions. In a similar vein, the Bonsucro
standard has been developed as a metric-based certificate for products
and supply chains, as a result of an ongoing multi-stakeholder
initiative focussing on the products of sugar cane, including ethanol fuel.
The increased manufacture of biofuels will require increasing
land areas to be used for agriculture. Second and third generation
biofuel processes can ease the pressure on land, because they can use
waste biomass, and existing (untapped) sources of biomass such as crop
residues and potentially even marine algae.
In some regions of the world, a combination of increasing demand
for food, and increasing demand for biofuel, is causing deforestation
and threats to biodiversity. The best reported example of this is the
expansion of oil palm plantations in Malaysia and Indonesia, where
rainforest is being destroyed to establish new oil palm plantations. It
is an important fact that 90% of the palm oil produced in Malaysia is
used by the food industry;
therefore biofuels cannot be held solely responsible for this
deforestation. There is a pressing need for sustainable palm oil
production for the food and fuel industries; palm oil is used in a wide
variety of food products. The Roundtable on Sustainable Biofuels is working to define criteria, standards and processes to promote sustainably produced biofuels.
Palm oil is also used in the manufacture of detergents, and in
electricity and heat generation both in Asia and around the world (the
UK burns palm oil in coal-fired power stations to generate electricity).
Significant area is likely to be dedicated to sugar cane in
future years as demand for ethanol increases worldwide. The expansion
of sugar cane plantations will place pressure on environmentally
sensitive native ecosystems including rainforest in South America.
In forest ecosystems, these effects themselves will undermine the
climate benefits of alternative fuels, in addition to representing a
major threat to global biodiversity.
Although biofuels are generally considered to improve net carbon
output, biodiesel and other fuels do produce local air pollution,
including nitrogen oxides, the principal cause of smog.
