BIOFUELS

Against the grain: Slugcatcher on biofuels

NO one can argue against the wisdom of an increased use of biofuels but some casual observers, su...

So far, all we have read about biofuels is that they supplement conventional sources of hydrocarbons, reduce reliance on imports, and provide a useful boost to farmers and other suppliers of the feedstock which goes into making ethanol and bio-diesel.

It’s such a feel-good list that it almost makes The Slug rush out and convert his 1989 Toyota Corolla to biofuel right now. Almost.

The problem with biofuels, which few of its proponents are yet to acknowledge, is that the same issue of a shortage of raw material supply which dogs conventional fuels will quickly dog biofuels if they achieve anything like the market share forecast.

In other words, where will the feedstock come from if the world suddenly goes biofuel in a big way?

The other question over biofuels is also one which enthusiasts are yet to address to The Slug’s satisfaction – quality. Right now, it seems that there are many ideas as to how to make biofuels, with remarkably little being said about the quality of what gets blended with conventional fuels, and who polices the quality.

Having raised these questions of supply and quality, The Slug quickly adds that he is not wishing to rain on the biofuel parade.

But, even the greatest advocate of biofuels must admit that there are limited amounts of wheat, corn and other cereals available for conversion, and an even more finite supply of animal fats such as tallow.

Apart from the question of supply, there are two other issues which biofuel zealots appear to be over-looking; the political correctness of converting food into fuel when half of Africa is starving, and the allocation of scarce water resources to grow a crop which will end up in a fuel tank.

The Slug, despite what a reader might think from the comments above, has not suddenly turned a deeper shade of green. When he last looked in the mirror his neck was as red as it was in 2005.

What these observations are meant to do is pour a little cold water on an energy sector that has become red hot and is starting to attract silly investment schemes.

What sparked these thoughts from The Slug is the number of tallow conversion projects which seem to be springing up. Tallow, for non-farmers, is essentially the remnant solid fat recovered from slaughtered animals, and a product which is demonstrably a raw material limited by animal numbers, and price.

While the normal laws of supply and demand will govern the availability of tallow it should not escape anyone that this is very small market and it would be a most unwise investor who would bet the family house on a tallow investment scheme – just as it would be an unwise customer who thinks he can rely on a steady supply of tallow-based biofuel.

Where you see tallow, insert the word grain, and then contemplate the issues which will rise when a crop fails, which happens all too often in Australia – and then ask who gets first crack at the grain – families needing bread, or a trucking company wanting ethanol?

It is going too far to describe biofuels as a Mickey Mouse solution to the world’s shortage of liquid fuels. But only just.

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