Alternative Fuels Update

Source: Opec 8/14/2007, Location: Europe

Given the fact that it is a non-green fuel, consumes lots of water and is not economically feasible, coal-to-liquid (CTL) project expansions in China are slowing down. China’s coal production inched up more than 7% in June putting the first half of the year up by a similar amount. China’s coal demand, the energy that is most consumed, is forecast to grow by 10% in 2007. In order to protect its food source, China banned the use of corn as a feedstock for its biofuel production. However, China’s target is to double its ethanol production by the end of the decade utilizing sources other than corn. The country is enhancing its subsidy system and planning to provide an additional 5% tax rebate to ethanol producers. Since several countries initiated a subsidized programme to produce biofuel, food prices have shot up dramatically worldwide, which has caused a large burden on governments especially in developing countries. Affected by the demand of the biofuel industry in South-East Asia, the food commodity prices increased around 10% in June alone.

High demand from the EU biofuel industry has increased the price of palm oil by 80% in the past 18 months in Southeast Asia where this commodity is produced.

The European Biodiesel Board (EBB) is asking the EU to introduce more subsidies and rules to boost the industry. Due to lack of the economic feasibility, the production of biodiesel fuel is facing some problems across the continent where the EU target could be hard to meet by 2020. The present EU target is to have 2% of total transport fuel to be biofuel. However, due to limitations such as high cost and its possible harm to the environment, the target has not been met. The EU cannot meet its target with its own production of biofuel; therefore it will be forced to rely on imports.

Although an ethanol mix exists in half of the US gasoline, the high cost of ethanol is deterring some refiners from blending more ethanol into the system, and the lack of necessary infrastructure is discouraging the industry from supporting a mandatory blend of extra ethanol into gasoline.


Belgium >>  7/4/2022 - DNV, the independent energy expert and assurance provider, is supporting Elia Transmission Belgium as the construction tender for the project, which w...
United States >>  7/1/2022 - Boskalis, with a presence in the US market spanning more than forty years, has recently opened a new office to support the rapidly developing US offsh...

Germany >>  6/30/2022 - - €770,000 Funding has been confirmed for the ChemCH2ange project
- The INEOS project at Köln is expected to reduce greenhouse gas emissions by m...

Ireland >>  6/30/2022 - In Ireland, Iberdrola has launched its first battery system at a commercial scale. Gorman, a 50 MW plant with a 25 MWh electricity capacity, is also t...

United States >>  6/30/2022 - AVANGRID, Inc., a leading sustainable energy company, and part of The IBERDROLA Group, announced it has signed on to the United Nations Global Compact...
United States >>  6/30/2022 - S&P Global Commodity Insights, the leading independent provider of information and benchmark prices for the commodities and energy markets, and Pexapa...

Related Categories: Biomass Energy  General  Geothermal Energy  Hydropower  Photovoltaic Solar Energy  Solar thermal Energy  Wind Energy 

Related Articles: Biomass Energy  General  Geothermal Energy  Hydropower  Photovoltaic Solar Energy  Solar thermal Energy  Wind Energy 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.