Import Tariffs are still barriers
Despite the unquestionable benefits the sugar-cane ethanol offers to the world, many countries have insisted to hamper the export of Brazilian biofuel through expensive import tariffs, as shown in the table.
The practice, which hinders the world from more efficient biofuel, has been criticized even by the UN. In recent report on the subject, the organization stated that “removing these (import) taxes generates earnings not only for Brazil, but also for the mitigation of climate change,” because “Brazil is much more efficient than the European Union and the United States in the ethanol production”.
Editor of “Biofuels Digest,” respected online magazine on biofuels, and chairman of the American Committee of Biofuels, Jim Lane gives AltenergyBrazil his vision about the six major trends of the sector:
Sustainability, or: food vs. fuel
In the future, it will be necessary that fuels and raw materials are not only renewable, but also sustainable. The ideal will be the day when, for example, forests free of pollution can produce palm oil or the possibility to convert 25% of the harvest of a country in fuel.
The harvest of food will be done from techniques that preserve the environment and keep clean the carbon cycle, which begins in the field and goes to the car.
This is sustainability, and this concept will be key element in the development of biofuels. The new projects in the area shall have organic residues as the first option between the raw materials, followed by crops of low impact and high performance, such as jatropha (sort of seed), and traditional raw materials such as sugar cane, always utilizing only harvest and culture techniques ecologically correct.
Mandatory use
Over the next five years it is expected that each of the nations of G-20 (G7 + 13 other largest economies) develop a national strategy of use of biofuels, what will include their mandatory use in most cases. The standards will be as low as 3% in countries with limited production capacity, and about 20% in countries rich in raw materials for biofuels.
Raw materials
Important raw materials today, such as soy and corn, will become history with the emergence of new raw materials. Plantations of jatropha, currently cultivated, will achieve maximum production, with incomes above 400 gallons per acre, and biodiesel produced from the algae will move from the research stage to the first stage of commercialization, with incomes above 3,000 gallons per acre.
The cellulosic production process of ethanol from wood biomass will be commercially viable for the first time and, close to the year 2012, 10% of the ethanol in the globe will be done from cellulose.
Among the raw materials of today, only the ethanol from sugar cane will remain important, and even in this case there will be a revolution in the way of using the cane bagasse left behind. Moreover, the search for residues becomes more important each day now, either animal fat, cooking oil, debris or household waste from industrial production.
Fuel
Biobutanol and biomethanol will become more important in the next five years, to the extent that we develop new ways to use high-density fuels that can be extracted from the same raw materials used for ethanol.
Co-generation of power
In five years, there must emerge new projects based on co-generation of power - using, for example, steam or CO2 from electric tools or supplying them with biomass for power generation.
Infrastructure
Around the world, the lack of adequate infrastructure affects biofuels. But ducts for their circulation are under construction in the USA, Brazil and Europe, and they will have to be fully ready by the end of 2012.
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