FALLING CRUDE PRICES:

A CLOG IN THE WHEELS OF

BURGEONING BIOFUEL
TECHNOLOGIES
Our modern societies are dependent on high energy use
http://www.businessclassng.club
http://bpes.bp.com
http://en.wikipedia.org/wiki/Fractional_distillation
http://www.csg.org/pubs/capitolideas/May_June_2012/fracking101.aspx
 What are Biofuels ?
• Biofuels are fossil fuel substitutes that can be
made from a range of agricultural crops and other
sources of biomass. The two most common
current biofuels are ethanol and biodiesel.
http://www.agmrc.org/renewable_energy/ethanol/corn-ethanol-and-crude-oil-prices-relationships-implications-for-the-biofuels-industry/
Why Are Biofuels Attractive?
• Energy Security: “Grow your own oil”

Who has the oil?

(bbs - billions of barrels)

Russia
Norway 72 bbls
Azerbaijan
Canada Kazakhstan
16 bbls 39 bbls China
17 bbls
United States Iraq India
21 bbls 115 bbls Vietnam
Mexico Iran Malasia
132 bbls
Columbia Egypt Kuwait
Algeria Libya Sudan 99 bbls
Venezuela 39 bbls
77 bbls
Nigeria Qatar
35 bbls 15 bbls
Equador Saudi Arabia
United Arab Emirates
262 bbls 97 bbls
Brazil
Angola

Who uses the oil?

(thousand s of barrels per day)
6,000 +
Why Are Biofuels Attractive?
• Climate change mitigation
Why Are Biofuels Attractive?
• Stable energy prices

http://www.roperld.com/science/minerals/Oil_USGasolinePricesPrediction.htm
A post-petroleum future?
How will the
poor adapt to
more
expensive oil?
We need to look at all the options

Source: International Energy Agency

 1st-Generation Biofuel
Biofuel made from sugar, starchy crops, vegetable oil or
animal fat using conventional technology.

The starch from the basic feedstocks is fermented into

bioethanol, or the vegetable oil through chemical process
to biodiesel.

These feedstocks could instead enter the animal or human

food chain.

They don’t seem to be more environment friendly than the

fossil fuels.
1st-GENERATION BIOFUELS
PRODUCTION SCHEME
Sunlight

PLANTS

SUGARS Biofuels
BIOFUELS
ENZYMES
 A NEW DILEMMA
IN FOOD SECURITY
FOOD

INCREASED
COMPETITION

LIMITED BIOFUELS
NATURAL CROPS
RESOURCES
FOOD SECURITY Vs. BIOFUELS:
Biofuels production causes increase of food prices
due to increasing demand for agricultural products

Current influence of biofuel on food prices ranges

between 3% to 30 %

Future trend: biofuels will push prices 12 – 15 % by

2017 (OECD-FAO)
FOOD SECURITY Vs. BIOFUELS:
Production of genetically modified crops (non-edible)
will be encouraged, aimed to biofuels industry instead of
food consumption.

Decrease of food aid is expected since cereal stocks will

be diverted towards biofuels production
Using US maize to
produce ethanol
increased tortilla price
in Mexico
The cost of producing Beer
in Germany is increasing, as
farmers turn from growing
barley to growing biofuels
FOOD SECURITY Vs. BIOFUELS:
Increase in demand of fuel crops may lead to a lower
food quality and diversity, threatenning the nutrition
of people.

Water availability for human consumption will be

threatenned:
- Producing one gallon of corn ethanol requires the
consumption of 170 gallons of water.
- Producing one gallon of soybean-based biodiesel
requires the consumption of 900 gallons of water.

Energytribune.com
Alternatives to oil: Human power
 Nepal: 90% of energy comes from fuelwood

Domestic use of roundwood

for fuel:
• 98% in Lebanon
• 66% in Jordan Globally, 2 billion people rely on
• 44% in Turkey traditional biomass fuels.
Alternatives to Oil: Biomass
This…. …or this?
 “Second generation” biofuels
produced from agricultural waste, wood and
grasses
 Iogen has been
producing cellulosic
biofuels since 2004.
Iogen
2008 production: 80
million litres
On climate, it’s also clear what is the best feedstock

Potential Reductions in GHG Emissions by Feedstock Type

SECOND GENERATION BIOFUEL
Disadvantages:
 More of these species can be invasive and have negative
impacts on water resources, biodiversity and agriculture

 At the moment they are still more expensive than fossil

fuels

Still under research and development for a significant

commercial scale
THIRD-GENERATION BIOFUEL
The third generation biofuels come from algae, that are
low-input, high-yield feedstock to produce Biofuels
 “Third generation” biofuels?

Colorado’s Solix Biosystem harvests algae within a field

of bioreactors
THIRD-GENERATION BIOFUEL
 30 - 100 times more energy productive and effective

 The Biomass leftover from oil pressing can be used

for animal feeding and ethanol production

 Processing Biofuel from algae can capture large

amount of CO2

 They are relatively easy to grow, but the algal oil is

hard and expensive to extract
Ethanol versus Butanol
 Ethanol as a biofuel

White rusts on motorcycle carburetors

41
 Is butanol the superior biofuel?

Gasoline Butanol Ethanol

C4-C12
Formula CH3(CH2)3OH CH3CH2OH
hydrocarbons
Energy density (MJ/L) 32.5 29.2 21.2

Octane number 91-99 96 129

Vapor pressure (mm Hg)

>500 6.5 50
@ 25oC

Flash point (oC) -45 37 13

Solubility in water (%) 0.0 7.7 100

42
 Ethanol versus Butanol
Corrosive A lot less corrosive

Can not be shipped through existing Can be transported in existing

fuel pipelines. pipelines

Can be used up to 85% gallon to Can be used up to 100% gallon to

gallon replacement for gasoline with gallon replacement for gasoline
engine modification. without engine modification.

Low cetane number (CN=9) thus can Relatively high cetane number
not be blended with diesel (average (CN=25) thus can be blended with
CN=45) diesel up to 40%.

43
 Questions?

Thank You!
 CONCLUSIONS:

 Biofuels present both opportunities and risks. The results

would depend on the specific context of the country and the
policies adopted.

 Developing countries and International organizations have to

commit themselves to apply policies aimed at making food
security a priority

 Poor farmers from the developing countries are unlikely to

receive benefits from higher food prices and are the most likely
to be negatively affected.
CONCLUSIONS:

 Biofuels will continue to push up commodity prices, which will have

implications for food security and poverty levels in developing countries

 Investment in research and development in Second and Third Generation

has to be taken in high consideration.
How is ethanol produced from corn?

Source: Enzyme Use for Corn Fuel Ethanol Production, Novozymes, July 2007