D-8 Should Observes US Energy Bill on Supplying Advanced Biofuels

Istanbul, Turkey | February 29, 2008 by D-8 Secretariat

The latest US energy legislation, which increased fuel efficiency for cars and will phase out the use of incandescent light bulbs, set a long-term challenge to the country’s bioenergy industry: to transform today’s research programmes and pilot projects into mass production of second-generation biofuels within the next decade and a half.

The Energy Independence and Security Act of 2007 included a measure that will require 36 billion gallons of renewable fuel to be produced annually by 2022, compared with a target of 7.5 billion gallons by 2012. In particular, the expanded Renewable Fuels Standard will require that 21 billion gallons of the target be achieved with advanced biofuels including cellulosic ethanol.

Industry players said the law provided an essential regulatory framework around which to plan investments and the strategy for bringing on-line new forms of bioenergy production. The US currently produces nearly 7 billion gallons of ethanol a year, all of it made from corn, thanks in part to government mandates and subsidies included in a 2005 energy bill.

“Congress has provided the necessary assurance for ethanol producers and investors that a market for their product will exist,” said Bob Dinneen, president of the Renewable Fuels Association, the national trade body for the US ethanol industry. “As a result, the commercialisation of these important next generation ethanol technologies will develop far sooner than conventional wisdom suggests.”

That view was shared by the stock market, where the shares of ethanol producers such as Aventine Renewable Holdings Inc. soared the day after the Senate passed the bill. It was signed into law by President George W. Bush on December 18. Several Wall Street analysts raised their profit predictions on the large ethanol producers based on the energy bill’s mandates.

Critics, however, said the ethanol mandate is unattainable. “The bill is a long-shot bet that a miracle will happen and cellulosic ethanol will achieve a commercial breakthrough,” said Republican Representative Joe Barton of Texas.

The Department of Energy envisions that many car tanks would eventually use a blend of 80% conventional petrol and 20% ethanol, according to Alexander Karsner, the agency’s top renewable energy official.

D-8 pays a serious attention to renewable energies. In D-8 Bali 5th Summit in May 2006, D-8 Head of States assigned D-8 Organization to set collaboration program regarding renewable energy, including bioenergy, biofuels, and biodiesel, since developing countries has severely facing the tremendous increase of oil prices for supporting their development.

The recent increasing trend of biofuels usage in various industries offers D-8’s countries a good opportunity once realised. In D-8 Working Group meeting last year, in Jakarta, Indonesia, renewable energy using palm oil for biodiesel was discussed seriously among member states. Malaysia and Indonesia are suppliers of palm oil in the world, that can be applied for biodisel. This year, the Working Group of oil and gas will have a meeting in Cairo, Egypt, which is scheduled to discuss a number of issues including renewable energy, clean energy, energy and poverty.

Read Also

• Development Efforts of D-8 on Bioenergy should Observes EU’s Concerns
• Pakistan Biofuels Industry Calls for E5 Mandate
• Nigerian State Allocates Funds for Biofuels Development
• Nigerian Global Biofuels announces $750 million investment in sweet sorghum ethanol project
• SG Expects Debate D-8 Cairo Energy Meeting to also discuss the Pros and Cons on Bioenergy
• Developing Non-Food Sources for Biofuels and Biodiesel, D-8 should Learn China’s Biofuel Development Plan
• Pakistan Ethanol Production to Reduce Oil Imports
• D-8 WG on Energy and D-8 WG on Civil Aviation Should Learn of Bioenergy
• D-8 will cooperate with UNIDO-ICHET on learning and developing Hydrogen Energy Technologies
• Turkey Encourages Renewable Energy Usage