Biofuel Development and Their Cost Benefits - Term Paper Example

Biofuels: Bioethanol, Biodiesel: An overview (developments cost versus benefits) Introduction The world and particularly the United States of America are in a critical energy crisis with the energy prices rising every now and then. Fossil fuel, natural gas, coal and nuclear power provide above 88 per cent of the global energy needs, while renewable sources catering for the remaining 12 per cent (Pimentel, 2008). In the United States, Oil, coal, natural gas and nuclear power account for more than 93 per cent of total energy needs and the remaining percentage consisting of different renewable and non-renewable energy sources. The world population is rapidly increasing globally and energy resources are becoming scarce (Pimentel, 2008). These energy shortages have created great interest in renewable energy sources, with biofuels being one of the main focuses. This essay looks at biofuel development and their cost benefits. Need for biofuel market Biofuels obtained from biomass are getting increased interest globally. The frequent surges in global oil prices, concerns over climate change from greenhouse gases (GHG) as well as concerns over energy security have driven developed and developing nations towards pursuant of cleaner energy in biofuels. Biofuels are seen by developing nations as a way to enhance rural development and create employment. Particularly, the transport sector is the key motive towards massive efforts in use of biofuel in the world today (Masami and Todd, 2006). The major biofuel used include ethanol and plant based biodiesel. Various countries including Canada, Thailand, Philippines, Malaysia, India, the European Union and the United States are some of the countries that have made targets for raising the contribution of biofuel to the transport industry. Brazil and the United States who make ethanol from corn are globe’s leading biofuel markets. The introduction of hybrid cars or flex fuel cars saw an increase in demand of ethanol in Brazil. Today, ethanol accounts for over 40 percent of gasoline-ethanol market in Brazil (Masami and Todd, 2006). Nevertheless, biodiesel market in the world is still smaller in size despite developing due to high cost associated with its production. Nevertheless, production of first generation ethanol from corn has been perceived as uneconomical and the use of second generation ethanol has been recommended (ESMAP, 2005). The cost of ethanol production Ethanol is a form of biofuel that is developed through fermentation and distillation process. Corn is finely sifted and 15 liters of water added to 2.69 kg of the ground maize. 13 liters of the mixture is extracted in obtaining a liter of 95 percent pure ethanol from the 92 percent water and 8 per cent ethanol mixture (Pimentel, 2008). In addition, to be mixed with gasoline, the ethanol must be further purified to attain a 99.5 percent purity hence in making a liter of pure ethanol leads to a 12 liter waste water which is a very large amount of waste which has to be disposed at an economic, energy and environment (Pimentel, 2008). To make a liter of pure ethanol (99.5 percent) 43 percent more of fossil energy than the energy obtained as ethanol and costs $1.66 per gallon (Table 1) (Pimentel, 2008). The corn feedstock needs an excess of 33 percent of the whole energy input. The total cost including the energy inputs for the fermentation and distillation process and the allotted energy costs of the steel tanks and other industrial resources is about $236.92 per 1000 liters of ethanol formed see table 1 (Pimentel, 2008). Massive energy use in corn ethanol formation is for producing corn feedstock, steam energy and electricity used during fermentation and distillation (Pimentel, 2008). The net energy input in making a liter of ethanol is about 7,570kcal (Table 1) as opposed to 5,130kcal that a liter of ethanol possesses. In regard to this net loss of 2,440 kcal of ethanol obtained, a 43 percent more fossil fuel is used than is produced as ethanol (Pimentel, 2008). On the contrary ethanol produced from sugarcane is relatively cheaper. On average for instance, ethanol from sugarcane in Brazil costs between $0.23-0.29 per liter (Masami and Todd, 2006). This is far much less as compared to other countries as seen in the context of the U. S. which is not less than $0.5 per liter (Masami and Todd, 2006). However, the production of first generation ethanol (from food materials) remains unviable due to completion for food as well as increase in prices of the materials (fig. 1). Knocke and Vogt (2009) argue that, the improvement of technological processes in second generation ethanol can boost energy efficiency as well as cost benefits of ethanol. Berndesa et al. (2010) proposes Co-firing techniques to enhance feedstock supply development as well process integration to boost energy efficiency and economic competitiveness in second generation biofuel. Table 1. Inputs per 1000 liters of 99.5% Ethanol produced from corn Input Quantity Kcal*1000 Dollars $ Corn grain 2,690 kg 2,550 287.36 Corn transport 2,690kg 322 21.40 Water 15,000L 90 21.16 Stainless steel 3kg 165 10.60 Steel 4kg 92 10.60 Cement 8kg 384 10.60 Steam 2,546,000kcal 2,546 21.16 Electricity 392kWh 1,011 27.44 95% Eth. to 99.5 Eth. 9kcal/L 9 0.60 Sewage effluent 20kcal BOD 69 6.00 Distribution 331kcal/L 331 20.00 Total 7,569 $436.92 Source: Pimentel (2008) Benefits associated with biofuel Biofuels have been widely advocated by various governments due to their perceived benefits. Developing countries particularly are motivated to use biofuels as a result of various reasons. Energy diversified sources as well as less exposure to surges in global oil prices. Diversification of energy sources is necessary in many countries as most of them rely on imported fossil fuel which is expensive. Some countries incur high delivery costs due to their geographical locations such as those that do not have a coastline (landlocked) (Masami and Todd, 2006). Rural development Production and use of biofuels facilitates rural development by creating job opportunities for rural population in feedstock production, manufacture of biofuel, transport and distribution of the product (ESMAP, 2005). Besides, introduction of biofuel generating plants brings about infrastructural development such as roads, power supply, as well as social amenities closer to the population (Cushion et al. 2010). Reduction of pollutants from automotive emissions Vehicles are a major contributor to air pollution in the urban areas. Biofuels are environmental friendly than petroleum based fuels. In old engines, like in the case in developing world, ethanol has the highest air quality value. It helps to minimize exhaust emission of hydrocarbons and carbon monoxide especially in cold climates (Biofuels Taskforce, 2005). Ethanol can be substituted as lead additives to gasoline to increase their octane. Besides, all biofuels do not contain sulfur. Biodiesel cuts down carbon monoxide and hydrocarbons emissions but can marginally raise nitrogen oxide emissions. Net decrease in lifespan GHG emissions The future of multilateral aid transfer for climate change reduction is attracting significant interest in biofuels. Under the Kyoto protocol, developing countries did not have binding GHG minimization targets but can trade carbon credits to nations with reduction treaties under the component of Clean Development Mechanism (Masami and Todd, 2006). To achieve sustainable biofuel production and use, countries especially developing nations should adopt comprehensive policies to guide and maximize benefits of biofuel culture (Von Maltitz and Staffford, 2011). Small scale production of feedstock may not be viable if the country is focused on sustainable use of biofuel. Von Maltitz and Staffford (2011) proposed a model for ensuring both small scale and large scale production contribute optimally to biofuel production and sustainable use (see figure 1). Project Scale Shareholders & out growers large industrial farms (Less than 10ha) (More than 100ha) Local fuel use National & International Liquid fuel Blends Fig. 1. Use of policy interventions to change the ratio of feedstock production from large-scale to small-scale producers Source: Von Maltitz and Staffford (2011). Challenges to biofuel development Production of biofuel just like any other alternative energy requires the use of other resources. Biofuel production particularly requires land for planting feedstock and thus competes with food production practices (Simmons, 2002). In addition, it may lead to destruction of vegetation, such as deforestation to create land for plantations. This has been opposed as it may not help realize the goals of switching to alternative green energy. Besides, biofuel use may not be 100 percent safe. Production of ethanol for instance requires a lot of water. Sugarcane growing requires a lot of water and irrigation may not be viable. The reason why Brazil has been successful in production of ethanol by use of sugarcane is because there are available rains in southern region which make sugar farming viable. Also biofuel production requires extensive research and many countries especially the developing countries do not have the necessary expertise to explore the viability of biofuel energy options. Despite biofuel cars being expensive as compared to gasoline engine cars, the use of biofuel has not been embraced with the seriousness it requires. Conclusion The globe is in verge of an energy crisis and there is great need to address the issue by developing sustainable energy sources. The use of biofuel has been advocated as one such energy sources. In developing world, it is seen as the road to social and economic development while in the developed world; it’s mainly as a means of reducing global warming. There are various challenges facing biofuel development especially in the developing world. Nevertheless, there are major developments realized in biofuel developments which may help enhance its use globally. References Berndesa, C. et al. (2010), Strategies for 2nd generation biofuels in EU – Co-firing to stimulate feedstock supply development and process integration to improve energy efficiency and economic competitiveness, Biomass and Bioenergy, 34 (2): 227-236. Biofuels Taskforce. (2005), Report of the Biofuels Taskforce to the Prime Minister. Australian Government. www.dpmc.gov.au/biofuels/final_report.cfm. Cushion, E., Whiteman, A. and Dieterle, G. (2010), Bioenergy development: issues and impacts for poverty and natural resource management. World Bank, Washington, DC. ESMAP. (2005), Potential for Biofuels for Transport in Developing Countries. Report 312/05. Washington, DC: World Bank. Knocke, C. and Vogt, J. (2009), Biofuels challenges & chances: How biofuel development can benefit from advanced process technology, Eng. Life Sci. 9, (2): 96–99. Masami K. and Todd J. (2006), Potential for Biofuels for Transport in Developing Countries. Knowledge Exchange Series, 4: 1-4. Pimentel, D.(2008), Biofuels, solar and wind as renewable energy systems: benefits and risks. Dordrecht, Netherlands New York: Springer. Simmons, P. (2002), Overview of smallholder contract farming in developing countries. FAO Working Paper ESA/02-04. Food and Agriculture Organization of the United Nations, Rome. Von Maltitz, G. and Staffford, W. (2011), Assessing opportunities and constraints for biofuel development in sub-Saharan Africa. Working Paper 58. CIFOR, Bogor, Indonesia. Read More