Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Saturday, April 19, 2008 at 12:00 AM

E-mail article     Print view

Study: biofuel use, growth limited by costs, technology

Biofuels supply and demand growth will be limited more by economic and technological obstacles than by global land availability, said Wood...

Bloomberg News

Biofuels supply and demand growth will be limited more by economic and technological obstacles than by global land availability, said Wood Mackenzie Consultants, an Edinburgh, Scotland-based energy consulting firm.

High production costs caused by the price of feedstocks is "a significant constraining factor on demand," said Alan Gelder, Wood Mackenzie vice president for downstream oil.

There are few commercially viable technologies available to meet the demand for biofuels made from nonfood materials, he said.

Biofuels include ethanol, typically made from agricultural crops such as sugar or grains, and biodiesel, made from vegetable oils or animal fats. They are blended with gasoline and diesel to reduce pollution from vehicle engines. The European Union intends to boost the share of biofuels in transport fuel to 10 percent by 2020.

"In order for the EU to meet its renewable transport-fuels targets, it will need to include higher quantities of ethanol in its transport fuels pool," Gelder said after the Thursday release of a study carried out jointly by Wood Mackenzie and Celeres, a Brazil-based agribusiness consulting firm.

The limited availability of economically priced biodiesel raw materials such as soybean oil could have an adverse impact on the refining industry, Gelder said.

Shell said Thursday construction of the world's first commercial production plant to turn biomass into synthetic diesel fuel has been completed. The plant, built in Freiburg, Germany, will start producing fuel from wood waste in the next eight to 12 months, Shell said. It will have a capacity of 18 million liters a year of fuel.

In Asia, biofuels use will remain "relatively low" though the region will expand as an exporter of biodiesel and palm oil, the study shows.

Brazil, where the production and use of biofuels is the most advanced in the world, is "on its way to becoming the Saudi Arabia of ethanol," it said.

Copyright © 2008 The Seattle Times Company

More Business & Technology headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

Chase shrugs off loss of CD investors

Sunday Buzz: Expedia, Intelius, Classmates slapped by Senate report

Denny Triangle gains skyline, but tenants slow to come

UPDATE - 08:56 PM
Senate Democrats at odds over health care bill

Your Funds: Money for nothing: Some investors pay for advice they never get

Advertising

Video

Raw Video | Real Salt Lake receives the MLS Cup trophy
Real Salt Lake is handed the 2009 MLS Cup trophy at Qwest Field, November 22, 2009.

Raw Video | Real Salt Lake fans celebrate
Raw Video | MLS Cup Opening Ceremony
Real Salt Lake fans enter Qwest Field
LA Galaxy's David Beckham
Real Salt Lake's Kyle Beckerman
MLS trophy arrives in Seattle
Chittenden Locks Inspection
Full interview with New Moon actors
Interview with New Moon actors

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

 
Most read
Most commented
Most e-mailed
 
 
Advertising