Secret report: biofuel caused food crisis.

Secret report: biofuel caused food crisis - 75% of the increase in cost is supposedly due to biofuels.

Interesting how a good idea (biofuels), can get perverted through a lack of common sense and special interests.

The report notes out biofuels derived from sugarcane, which Brazil specializes in, have not had such a dramatic impact, of course the US has a high tarrif on it to protect the use of corn for fuel that does not make economical sense. Supply and demand, soon there will be other alternatives...

Bio Fuels Future

A closer look at the biofuels future - One of the better articles I have read, I would give it an A-. This article mentions the potential of improvements in crop yields that will eventually reduce food prices. I am not sure if this statement assumes the same demand, or it takes into account higher demand due to higher GDP in India and China that increases demand for meats, that increases demand for feed. And since Meat requires higher production costs per calorie than plants, this is an added stage of inefficiency. Another unknown is will there be a reduction in protein from fishing, if fish stocks collapse due to over fishing. Not to mention will the efficiency of bio fuel production for yeast based, algae, or wood Cellulosic improve?

And why a A-? The challenge for any consulting company is not to upset potential customers, so public articles are screened to make sure there is nothing too controversial...

The Right Bio Fuel

Good OpEd from the NY Times Bring on the Right Biofuels by Roger Cohen


Key Points:

• Rising food prices are due to more than bio fuels. Reasons include:
• Oil Prices (used to make fertilizer and pesticides, fuel for tractors)
• US dollar crash
• Drought in Australia (not mentioned, but also a cause)
• Hoarding in some countries (not mentioned, but also a cause)
• Rising demand for meat because more people are no longer in poverty (meat requires a lot of grains to create, so rising demand for grains causing higher prices)
• Many more cars will be in China and India. One lecture I heard said a billion. The right Bio Fuel is the only possible answer for the next 15-20 years for fueling them.
• Sugar cane produces x 8 the fuel compared to corn, but there is a tarrif not allowing in ethanol from Brazil (54 cents per Gallon).
  
• Europe will require by 2020 that 10% of all fuel be bio fuel.
  

Bio Fuels - Another source of pollution?

Discharges from bio fuel producers can have a substantial environmental impact. NY Times story Pollution Is Called a Byproduct of a ‘Clean’ Fuel. The other day there was an article about the huge amount of water needed for producing ethanol, and how this poses a possible limit. Here is a positive view of how much water Ethanol production uses.

I am not sure if the reporting of negative articles about pollution is a trend. Yesterday's article about Solar Plant Waste in China is an example. Sometimes when you have to much positive reporting, there is a backlash with an increase in negative stories on subjects. A joke I heard was if your a company, start worrying when your CEO's picture is on business week, for that's when things are about to go negative.

Bio Fuels - Increasing Global Warming?

Journal Science just released an article with a study that claims Bio Fuels may actually increase Global Warming, compared to regular fuels. What the study looked at was the whole picture. For example if Corn in the US is made into Ethanol, where is the replacement crop going to come from? It seems that new land will be developed for crops which increases Global Warming due to more green house gases released. The hope is non-food, such as green waste can be used for Bio Fuels in the future at an economic cost.

Of course, if green waste is used I am not sure what this will do for the subsidiaries in the US for Corn Ethanol. Another part of using green waste, is much of it is contaminated with pesticides and fertilizers (lawn care products), which also takes care of the disposal issue of green waste .