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Ethanol and Biofuels

The Ethanol Question - Part II

Back in August 2006 when we published our first article on the question of the use of Ethanol as an alternative to petroleum derivatives for motor fuel, we hoped that we would provoke a wider discussion on the subject. Well, it appears to be heating up - and maybe we helped just a little. Of course, the larger question, that of Climate Change, is also on everyone's lips, and maybe we helped spark that too!

We have been gratified to see that some of the major organs of world opinion have embraced our arguments, like the crowding out effect that the use of current feed crops, such as corn, will have on the price of food. This topic was analyzed by the New York Times in it's Op-Ed piece of February 6, 2007.

Two other pieces published in the New York Times (1, 2) relating to the mystery of the disappearing honey bees in North America are pointing at possible climatic change or pesticide misuse as causative factors. Either of these possible causes are alarming. The impact of a major reduction in the number of bees pollinating crops in North America is dire indeed.

The whole bio-fuel question really heated up with the early March visit of President Bush to Brazil. The agreement signed at that time will virtually guarantee that there will be vastly increased usage of ethanol and other bio-derivatives. What can we expect from this development?

On March 21, 2007 The Guardian published an article touching on another aspect that we highlighted - that of the veiled slavery in the cane fields of Brazil. Since this topic is of importance to us, our corespondent sent a letter to the Guardian, which we quote below:

Last Updated ( Monday, 21 April 2008 19:23 ) Read more...
 

The Ethanol Question - Part I

This article will look at the use of Ethanol as a substitute for gasoline to fuel passenger cars. There is a broader question, which involves so called Bio-diesel, based primarily on soy oil, which we will touch on, but the details will be left for a future in-depth look.

The Economics

In Brazil and the US there is an increasing movement toward the use of ethanol as an additive or total substitute for gasoline to power the fleet of passenger cars in both countries. The introduction of ethanol as a motor fuel in Brazil in the 1970's put the auto industry through some development difficulties but today the technology is mature and stable. The flex-fuel cars on the road today, in Brazil and the US, are efficient at any level of fuel mixture. In the state of São Paulo, where the bulk of Brazilian ethanol is produced, ethanol costs less than 60% of gasoline, making it a very attractive alternative, if your car will burn it.

If on the consumption side the case is clear, the energy efficiency of the production side is less so. The latest reliable studies indicate that the energy balance of the production of ethanol from corn is marginally positive: the process produces more energy than it consumes. If you consider only the liquid fuels used, gasoline and diesel, Vs. the ethanol produced, the balance is very positive, something like 7 for 1. Additionally, considering the result of the phasing in of cellulosic ethanol, it can be said with a fair degree of certainty that the use of ethanol as a substitute for gasoline, fully or partially, is energetically, if not economically, justified.

The purely economic justification depends on two further factors, neither of which will be discussed here: the price of petroleum and the level of subsidies allocated to ethanol. In any case, when you consider that petroleum is finite, whereas the production of ethanol is sustainable (?), there seems no choice but to support the use of ethanol as a motor fuel.

Based on the economics, and current levels of subsidies, it is safe to say that ethanol will play an increasing role as a motor fuel., but there is a negative side, and that needs to be understood and minimized if a disaster is not to be created.

Last Updated ( Monday, 21 April 2008 19:24 ) Read more...
 


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