Frequently Asked Questions:

What are biofuels?

Etymologically speaking, biofuels are fuels with biological origins. However, since this would include petroleum, which is derived from fossil remains produced millions of years ago, biofuels are better described as fuels with biological origins, obtained in a renewable manner from organic remains. They are the first source of energy known to man. Sources of biofuel include biomass obtained from crops such as sugarcane, corn, sorghum, cassava, etc, which is used to produce ethanol, and oils obtained from African Palm, soybean, castor bean, Jatropha Curcas, rapeseed, etc, which are used to produce biodiesel and biofuels.

Will increased biofuel production jeopardize food security and raise the prices of certain foods?

This might be the case if land intended for food crops is used to produce biofuel, or if food crops are used for biofuel production rather than for their original purpose. It should be borne in mind that over 50% of the poor population of Latin America and the Caribbean lives in and depends on the rural sector. Of the 525 million inhabitants of Latin America, 128 million live in poverty (less than US$ 2 a day), while 50 million live in extreme poverty (less than US$ 1 a day). Consequently, if higher-paying crops emerge, farmers will focus their efforts on those crops. While rural producers should be paid more for their products, clear policies on the issue are essential, in order to prevent natural reserves from being destroyed to make way for farmland.

Additionally, it is necessary to adopt regulations that will ensure that the amount of a given crop earmarked for biofuel production, and that set aside for use as food, do not put food security at risk. The price of certain foods has increased, however. Such is the case with corn, due to increased demand for ethanol production. As mentioned in Foreign Affairs magazine, the impact of ethanol-driven price increases is often high, and plant diseases, weather conditions and government policies have exacerbated the situation. Ultimately, the market will continue to set prices; if supply exceeds demand, the price of this raw material will fall.

For the time being, the fact is that crops with biofuel potential represent an opportunity to revitalize and improve the standard of living of rural communities, and opportunities should be taken as they arise. An effort is required to ensure that the right policies are in place to properly distribute the resulting income throughout the production chain. It should also be noted that rising oil prices have made agricultural production inputs significantly more expensive, and growing Chinese and Indian demand for grain has also contributed to price increases.

According to the United Nations, hunger is caused by inequality, not lack of food. Over a nine-year period, the income ratio between the richest 20% of the world’s population and the poorest 20% rose from 60:1 to 74:1. The assets of the planet’s richest 200 people exceed the combined income of 41% of the world’s population, and are greater than the combined GDP of all of the world’s least developed countries, with their 600 million people. The conditions and local policies of each country should also be taken into account. The latter should promote greater social inclusion and discourage the formation of oligopolies. Moreover, a distinction should be made between countries with large quantities of usable farmland and countries with limited land and water resources.

Will the use of biofuel reduce environmental pollution?

This is true; the figures below show the degree to which biofuels benefit the environment, in addition to the advantages mentioned above. It should be noted that the closing address at the Biofuels Congress of the Americas was given by Al Gore, who received the Nobel Peace Prize in 2007 for his efforts to combat global warming. This spotlights the important role biofuels play in the world environment. Vehicles that run on biodiesel emit up to 78% less carbon dioxide, and reduce carcinogenic hydrocarbon emissions by up to 75% Emission reduction or increases in vehicles using soy, sunflower and rapeseed biodiesel (in its pure form or mixed with fossil biodiesel)

What percentage of greenhouse gas emissions can be attributed to the transport sector?

The transport sector is responsible for approximately 20% of the greenhouse gases that cause global warming.

Can biofuel be produced at the farm level for use in agricultural machinery?

This is entirely possible. What is needed is some type of oil that can be transformed into biofuel, and very simple technologies are available for that purpose. This approach is particularly useful in isolated areas where the transport of fuel is a complicated and costly process. In addition, the financial and energy resources employed remain in the production area.

How can biofuels help family agriculture and small farmers, and improve the social inclusion of the poorest rural sectors?

Crops capable of producing oil, and hence biodiesel, are better suited to family agriculture. Certain crops, such as castor beans and Jatropha Curcas, are more adaptable and require less water and agricultural care; consequently, they can be grown at a much lower cost. Another advantage of such crops is that they can be planted together with other crops. For example, bean crops can be planted among castor bean or Jatropha rows; in addition to providing sustenance, they add nitrogen to the soil, making it more fertile.

Is biofuel production good business?

This depends on the type of crop, productivity levels and costs, but most of all on the existence of a clear policy, with clear playing rules established by the government and the private sector in the locale where production is to take place. The biodiesel market is currently valued at US$ 15 billion, and will triple in value by 2015. Of course, in addition to its many environmental benefits, from a business and price perspective the biofuel business is closely linked to oil prices.

Is it true that oil is running out? How many more years of reserves do we have?

Oil reserves have fallen significantly. At the end of the nineteenth century, reserves stood at 2.2 trillion barrels; today there are only 1.13 trillion reserve barrels, while consumption continues to rise, particularly in developing countries such as India and China. It is very difficult to determine how many years of reserves we have left; what is certain is that we must reduce our oil dependency, especially in countries that do not produce petroleum but possess the natural resources necessary to grow crops with biofuel potential.

Will biofuels replace fossil fuels?

We live in a culture that is still overly dependent on fossil fuels. The latter are buttressed by a large existing infrastructure, and surrounded by vested interests. Global warming should force governments to invest more in research, particularly in the field of second-generation fuels, which offer the greatest potential. Our dependency on fossil fuels will continue at least into the next 2 decades, when it is expected, more affordable new biofuel production technologies will be available on the market.

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