Environmental Engineering Reference
In-Depth Information
Table 2.7
Percentage of crops used as feedstock for production of biofuels
Country
Crop used as feed stock for fuel
production
Percentage used for fuel
production (%)
USA
Corn
40
EU
Vegetable oil
65
Brazil
Sugarcane
50
6.3
Ethanol Economics Scenario in Brazil
In countries with warmer climate like Brazil and India sugar cane is one of the basic
raw material source for ethanol production and is produced in massive quantities.
Brazil is producing low cost ethanol and the prices have dropped considerably in
2002-2003. It is also used as an additive with gasoline as vehicle fuel. In 2003,
many motor vehicles gained prominent position in market which had flexibility in
operation with fuel additives like E20-E25.
6.4
Biofuels Scenario from Present to 2021
Biofuels have a deep association and at the same time strong impact on agricultural
practices and market trends. The use of different crops; used as feed stock; for bio-
fuel production as well as strong players of the production, USA, EU and Brazil, are
listed in Table
2.7
below which is the percentage of crops devoted for the purpose
of fuel production in 2008. It is very clear that decision making and investment in
agriculture cannot be made without taking into account the share of biofuels in it.
Ethanol price dropped down in 2008 and rose to higher prices in 2011 again. The
reason for the increase in the price of ethanol was dwindling ethanol production
in USA and decrease in the production of sugar cane in Brazil, which affected the
overall increase in the cost. Apart from ethanol, the overall biofuel prices went up
in 2011 (Zurbier and Van De Vooren
2008
).
Ethanol prices rose beyond the previous records of 2007 and 2008 in 2011 and
decreased slightly in 2012. The drop or rise in the price of ethanol is dependent on the
prices of ethanol manufacturing raw material. There are various methods of ethanol
production but it is mostly produced from feed stock, so production method and cost
to the end user depends on the price and availability of the feedstock or any other raw
material being used. In the case of other well-known biofuel i.e. biodiesel the prices
declined in 2011 (Demirbas
2009a
,
b
).
6.5
Development in Global Ethanol Market
Ethanol production has almost doubled over a span of a stretch of 3-4 years and by
2021 it will reach a total of 180 Bnl and the three major players in ethanol produc-
