Assignment

Assignment title:

Biofuel
Submitted by:

Hamid Ali

2220436

M. phil

1st
Green chemistry

Submitted to:

Dr. Tahsin Gulzar

Government college university Faisalabad

 Biofuel
1. Introduction
The world's climate is changing. Over the past century the earth's surface has warmed by
around 1°C. Although the factors influencing this change are extremely complicated, there is
undeniable evidence that cannot be avoided: Greenhouse gasses released as a result of human
activity are warming the planet. By the end of the 21st century it is believed global temperatures
will have risen by between 1-6°C. This increase in temperature will have catastrophic effects
on our planet's ecosystems, ice caps and food availability as well as causing more frequent
weather extremes such as heat waves and flooding. Rapid modernisation and industrialisation
in a fast growing population have contributed significantly to increased levels of greenhouse
gases within the atmosphere. The accumulation of these gases causes a phenomenon known as
the greenhouse effect, which is responsible for the warming of our planet. The burning of fossil
fuels in the generation of energy produces around 10.65 billion tonnes of CO2 into the
atmosphere every year. Fuel usage from heating the home to running the car accounts for
around 70% of the worldwide energy consumption.

Greenhouse gas (GHG) emissions from transport have been increasing at a faster rate than from
any other sector. The sector relies heavily on fossil fuels, which accounted for 96.3% of all
transportation fuels in 2018. Transport is also responsible for 15% of the world’s GHG
emissions and 23% of total energy-related CO2 emissions.

Rapidly accelerating population rates combined with higher standards of living have led to
enormous pressures on current fuel sources. The problem is fossil fuels are in limited supply.
With the world's population set to reach 9 billion people by 2050, it is believed that fossil fuel
sources will be depleted earlier than previously expected. To reduce dependence on petroleum-
based fuels, as well as to mitigate climate change, biofuels are viewed widely as promising
alternative fuels.

Renewable alternatives such as biofuel provide solutions to global concerns over energy
security and reduce dependence on unstable foreign sources. Not only will they provide huge
environmental benefits but they could have significant socio-economic benefits, encouraging
further economic development in both developed countries and in the developing world.
A sustainable and renewable biofuel will no doubt bring enormous benefits to human beings
and the environment. However to be implemented on a large scale there is one important
obstacle to be overcome but biofuels must be competitive in price with oil from fossil fuels.

2. Biomass Potential

From the beginning of civilization, biomass has been considered as the major sources of energy
throughout the world. The global demand for biomass-based energy is continuously increasing
and has doubled in the past four decades. Biomasses available for energy production include
agricultural and forest crops, agricultural and forest wastes and residues, and waste materials
from food processing, fisheries, and other industries as well as households. Energy produced
from biomass can easily be converted into all the other forms of energy currently required in
modern society. Besides the availability of the sources, compared to renewable energy, biomass
is the most common and widespread of all other global renewable resources. Biomass has
emerged as the fourth largest energy resource after fossil fuels such as natural gas, oil, and coal,
and is estimated at about 10% of global primary energy resources. Thus biomass is expected
to be a potential source of renewable energy, for both small- and large-scale production around
the world. But the future possibility of biomass-based energy depends to a great extent on the
availability of cultivable land. Currently, the amount of land utilized to grow energy crops and
raw materials for biofuels is only 0.19% of the world’s total land area of 13.2 billion hectares.
On the other hand, only 0.5%-1.7% of global agricultural land is used for the cultivation of raw
materials for biofuels production. To meet future demands for the production of biofuels, much
larger areas must be considered for the cultivation of more energy crops. The World Biomass
Association estimates that by 2035, about 5% of global agricultural land (240 Mha) can be used
for growing dedicated energy crops for biofuels. Moreover, agricultural productivity needs to
be increased to cut down the use of additional forest land by employing new and advanced
technologies. In addition, new energy crops that are not yet cultivated will need to be planted.
Special attention needs to be given to ensure the sustainable production of new energy crops
since the uncontrolled production of biomass may create detrimental effects on biodiversity,
soil, and water.
3. Biofuel

Biofuel is a fuel that is derived from biomass, that is, plant or algae material or animal waste.
Since such feedstock material can be replenished readily, biofuel is considered to be a source of
renewable energy, unlike fossil fuels such as petroleum, coal, and natural gas. Biofuel is
commonly advocated as a cost-effective and environmentally benign alternative to petroleum and
other fossil fuels, particularly within the context of rising petroleum prices and increased concern
over the contributions made by fossil fuels to global warming.

4. Classification of biofuel based on feedstock

Depending on the type of feedstock used in biofuel production, biofuels can be subdivided into
three categories.

4.1 First generation biofuels

Biofuels said to be first generation are directly related to biomass produced from edible oils
such as rapeseed, soybeans, sunflower, palm oil, coconut, and peanut. If these feedstocks are
utilized on a large scale, it would have a large impact on global food supply and, therefore,
they are not considered to be sustainable or green. First-generation biofuels represent most of
the biofuels currently in use. First generation biofuels are produced through well-understood
technologies and processes, like fermentation, distillation and transesterification. These
processes have been used for hundreds of years in many uses, such as making alcohol. Sugars
and starches are fermented to produce primarily ethanol, and in smaller quantities, butanol and
propanol. Ethanol has one-third of the energy density of gasoline, but is currently used in many
countries, including the United States, as an additive to gasoline. A benefit of ethanol is that it
burns cleaner than gasoline and therefore produces less greenhouse gases. Another 1st
generation biofuel, called biodiesel, is produced when plant oil or animal fat goes through a
process called transesterification. This process involves exposing oils with an alcohol such as
methanol in the presence of a catalyst. The distillation process involves separating the main
product from any of the by-products of the reactions. Biodiesel can be used in place of
petroleum diesel in many diesel engines or in a mixture of the two. The Figure 1 shows the
process of how 1st generation biofuels are made.
 Figure 1 shows the process of how 1st generation biofuels are made

Pros Cons

 Simple and well-known production  Feedstocks compete directly with

methods crops grown for food
 Familiar feedstocks  Production by-products need markets
 Scalable to smaller production  High-cost feedstocks lead to high-
capacities cost production (except Brazilian
sugar cane ethanol)
 Easily blended with existing
petroleum-derived fuels  Low land-use efficiency
 Experience with commercial  Modest net reductions in fossil fuel
production and use in several use and greenhouse gas emissions
countries with current processing methods
(except Brazilian sugar cane ethanol)

Table 1 First generation biofuel

4.2 Second generation biofuels

Second-generation biofuels are derived from lignocellulosic crops. This generation technology
allows lignin and cellulose of a plant to be separated so that cellulose can be fermented into
alcohol. These biofuels can be manufactured from different types of biomass as it defines any
source of organic carbon. This can be renewed rapidly as part of the carbon cycle. Second-
generation biofuel technologies have been developed because first-generation biofuel
manufacture has important limitations. Second-generation biofuels can solve these problems
and can supply a larger proportion of biofuel sustainably and affordably with greater
environmental benefits. The goal of second-generation biofuel processes is to extend the
amount of biofuel that can be produced sustainably by using biomass. Specifically, biomass is
the residual non-food parts of current crops, such as stems, leaves, and husks, which are left
behind once the food crop has been extracted. Furthermore, other kinds of crops that are not
used for food purposes, such as switch grass, wheat straw, cereals, etc. that bear little grain,
can also be extracted. An increased level of venture funding is going into second-generation
biofuel start-ups, companies are competing to develop a single, cost-effective process for
producing biofuels.

4.3 Third generation biofuels

The term third generation biofuel refers to biofuel mainly made from algae. Third-generation
biofuels use specially modified energy crops such as algae. Algae are grown to serve as a
low-cost, high-energy, fully renewable resource. Algae are predicted to have the potential to
produce more energy per hectare than conventional plants. Algae can also grow on land and
water bodies unsuitable for food production. Another advantage of algae-based biofuels is
that the fuel can be processed into different fuels such as diesel, gasoline, and jet fuel. It is
potentially carbon neutral (absorbs and emits the same amount of carbon). Algae have been
making a strong case as they have the potential to completely revolutionize the energy market.
Algae have many advantages in that they only need CO2, nutrients, water, and sunlight to grow.
Some algae cultures have also been shown to grow in wastewater, which further reduces cost
as it eliminates the need for a freshwater medium. In addition, renewable biofuels have been
proven to have a very favourable energy yield when compared to traditional fuels, meaning
that the energy gained versus the energy required is much higher, while maintaining a much
lower carbon footprint. Based on laboratory experiments, it is claimed that algae can produce
up to 30 times more energy per acre than land crops such as soybeans, but they are still not
produced commercially. With the higher prices of fossil fuels (petroleum), there is much
interest in algae culture (farming algae). One advantage of many biofuels over most other fuel
types is that they are biodegradable, and so relatively harmless to the environment if spilled.

Algae have also been found to have significantly more lipid contents than traditional biofuel
feedstock and can grow significantly faster, with incubation periods lasting between 1 and 10
days, giving it a nearly 200-fold advantage over the next highest-yielding oil crop. This means
that the potential for algae to become a major player in global energy consumption is much
higher. In 2000, over 90% of the US corn crop went to feed people and livestock, meaning that
less than 5% was used to produce bioethanol. However, in 2013, only 52% was used for food
and livestock and over 40% went to ethanol production. This proves to be a problem as the
amount of food available for the growing population is reduced. Despite this increase in ethanol
production, however, corn only produces about 328 gallons of corn biofuel per acre, which
compared to microalgae growth potential for the same land area is not much. Microalgae grow
rapidly and do not have a specific growing season, therefore they can be harvested multiple
times a year (incubation periods lasting from 1 to 10 days). This allows microalgae to produce
roughly 1200 gallons of biofuel per acre per year. High oil prices, competing demands between
foods and other biofuel sources, and the world food crisis, have ignited interest in algae culture
(farming algae) for producing biofuels, using lands that are not suitable for agriculture.

Figure 2. Third Generation Biofuels

5. Classification based on biofuel nature

According to the chemical nature of biofuels, they can be classified into various categories
including biodiesel, bioethanol, biomethane, biohydrogen and many other.

5.1 Biodiesel

Biodiesel refers to any diesel fuel substitute that is derived from any renewable resources. More
specifically, biodiesel refers to a family of products, called alkyl esters of fatty acids, made
from vegetable oils or animal fats in combination with alcohol such as methanol or ethanol.
One popular process for producing biodiesel is transesterification. Biodiesel is made from a
variety of natural oils, especially rapeseed oil (a close cousin of canola oil) and soybean oil.
There are many other feedstock candidates including recycled cooking oils, microalgae, animal
fats, and other oilseed crops. The potentiality of fuel production from microalgae, animal fats,
and waste oils is expected to be very high.

5.1.1 Biodiesel production

A simple process flow diagram of biodiesel production from biomass (rapeseed) feedstock is
shown in Fig 3. The whole process mainly consists of four important steps, namely feedstock
preparation, oil extraction, oil refining, and transesterification.

Figure 3 A simple process flow diagram of biodiesel production from biomass (rapeseed)
feedstock
Oil produced from energy crops can be used directly for combustion in diesel engines.
However, a viscous plant oil always generates poor atomization in the combustion chamber
creating other operational problems in the process. To solve this problem, transesterification
has gained attention among all other methods due to the simultaneous dilution of the plant oil
during the process. In the transesterification process, the molecular structure of lipid molecules
of refined oil is converted into methyl or ethyl esters (biodiesel) and glycerine as a by-product.
In most cases, transesterification is carried out using methanol for the production of biodiesel.
Due to its relatively low cost and high reactivity, methanol is of a higher priority than other
alcohols. However, the use of bioethanol in transesterification processes is considered to be an
alternative to methanol due to its renewability and less-toxic nature. It also improves the quality
of the resulting fuel with regards to heating value and cetane numbers.
5.1.2 Properties of pure plant oil and biodiesel

PPO exhibits a wide range of differences in primary fuel properties when compared with fossil
diesel. A comparison of common fuel properties of diesel, PPO (rapeseed oil), and biodiesel is
given in Table 2. The table indicates that the viscosity of PPO is 10 times higher than that of
fossil diesel. This makes PPO difficult to blend with conventional diesel fuel. But for the higher
flashpoint of PPO over diesel, it is safe for storage and transportation, and is easy to handle in
gaseous environments.

Fuels Density Viscosity Flash Calorific Octane Cetane

(kg/L) (mm2 /s) point (°C) value number number
(20°C
MJ/kg)

Diesel 0.84 5 80 42.7 - 50

0.92 74 240 37.6 - 40

PPO
(rapeseed
oil)

Biodiesel 0.88 7.5 120 37.1 - 56

petrol 0.78 0.6 21 42.7 92 -

Bioethanol 0.79 1.5 21 26.8 100 -

Ethanol 0.785 - 13 27 108 2-12

Gasoline 0.79 - 43 43.9 90 -

Biobutanol 0.91 3.7 36 33.2 96 17

Table 2 Some properties of biofuels in comparison with fossil fuels

5.2 Bioethanol

Bioethanol has evolved as a potential source for biofuel production at the current state of energy
insecurity and in environmental safety challenges over fossil. Broad classes of biomass
resources have been investigated and experimented on for bioethanol production, which can be
categorized into sugar product, starch, and lignocellulosic biomass. Different agricultural
wastages, leaves, waste wood, and residues from forest, municipal solid wastages, and
wastages from pulp/paper processing and energy crops are common cellulosic biomasses. Crop
residues such as wheat and rice straw, corn leaves, stalks and cobs, sugarcane bagasse, and
residues from sugar production are the main cellulosic agricultural wastes. Forestry waste
includes the logs and roots of trees left in forests after wood production. Municipal solid wastes
includes different paper packages, paper and cardboard are in higher percentages of cellulosic
materials. On the other hand, dedicated energy crops that are planted specially for ethanol
production include warm season grasses (switchgrass) and fast growing trees such as poplars
and shrubs (willows). The cellulosic components of these energy crops range between 30%
and 70%. The concept of utilizing cellulosic feedstock for bioethanol production has not yet
started on a commercial scale, and intensive research of this subject is required. Although, the
large-scale production of agricultural ethanol requires substantial amounts of cultivable land
with fertile soils and a supply of fresh water for irrigation. These limitations of ethanol
production could not attract entrepreneurs from densely populous regions and industrially
occupied regions like Western Europe where desire for new cultivable land exploiting
rainforests arose environmental concerns.

5.2.1 Production of bioethanol

A simple process flow diagram of bioethanol production from sugar, starch, and cellulose is
shown in Fig 4.

Figure 4 A simple process flow diagram of bioethanol production from sugar, starch, and
cellulose
Although the conversion routes of bioethanol production vary depending on the source of
feedstock, the steps listed are considered to be the main steps.

 The reduction of particle size by milling/grinding of feedstock.

 Conversion of cellulose and starch into fermentable sugar (glucose) in the presence of
an enzyme by a saccharification process.
 Dilution of the fermentable sugars with water.
 Addition of bacteria, yeasts, or other microorganisms.
 Conversion of sugar into bioethanol and CO2 through a fermentation process.

5.2.3 Properties of bioethanol

Bioethanol and ethanol are chemically identical and the properties of both bioethanol and
ethanol do not differ much in para meters. The properties of bioethanol are shown in Table 2
and compared to those of petrol. It is found that the octane number of ethanol is higher than
that of conventional petrol. Ethanol is also increasingly used as an oxygenate additive for
standard petrol as a replacement for methyl tertiary butyl ether (MTBE) to improve its octane
number. Because MTBE has toxic properties and is responsible for considerable groundwater
and soil contamination, MTBE is more and more frequently replaced by ethyl tertiary butyl
ether, which is produced from bioethanol. Since the energy yield of ethanol is lower than that
of petrol, it is recommended to utilize bioethanol in producing biodiesel rather than replacing
conventional petrol.

5.3 Biobutanol

Recently, the biofuel market has been primarily dominated by bioethanol, biobutanol, and
biogas, relying on substrates such as sugars, starch, oil crops, agricultural and animal residue,
and lignocellulosic biomass. Fuel properties like energy density and hygroscopicity are higher
in butanol (C4H9OH) than in traditional fuels. However, due to its low production cost and
availability over the seasons, lignocellulosic biomass is the most suitable raw material for
butanol production.

5.3.1Biobutanol production

The conversion route for biobutanol is similar to that used in the production of bioethanol, but
requires the use of different enzymes. Traditionally, biobutanol is produced through an
acetone-butanol-ethanol (ABE) fermentation process in which Clostridia species, namely
Clostridium acetobutylicum, Clostridium beijerinckii, Clostridium saccharobutylicum, and
Clostridium saccharoper butylacetonicum are used. ABE fermentation is a process that uses
bacterial fermentation to produce three solvents, namely acetone, n-butanol, and ethanol, from
carbohydrates such as starch and glucose. ABE fermentation produces solvents in a ratio of
three parts acetone (CH3COCH3), six parts butanol (CH3CH2CH2CH2OH), and one part ethanol
(CH3CH2OH).

5.3.2 Properties of biobutanol

The chemical composition of biobutanol is identical to that of n-butanol and, therefore, it does
not differ in other parameters. Having some intrinsic properties, biobutanol becomes an
attractive source of biofuel. Comparisons of biobutanol to other fuels are shown in Table 2.
The energy content of biobutanol is quite close to that of gasoline, and the energy density per
liter of biobutanol is 25% greater than that of ethanol. Although the production costs of butanol
are more than that of ethanol, it gives a better performance in engines. A further energy
advantage is that about 18% more energy as hydrogen is produced in the production of
biobutanol by fermentation from the same amount of fermentable substrate as ethanol. In
addition, the high flash point of biobutanol (36°C) over ethanol and gasoline makes it safer to
use and handle.

5.4 Biomethane

Present infrastructure for transport around the globe is still based on liquid and gaseous fossil
fuels like compressed natural gas, gasoline, and diesel, etc. Biomethane is quite famous due to
its high efficiency and clean burning properties compared to all other biofuels available today.
Nearly all types of biomass can be used to produce biomethane. The raw materials for
biomethane generation include dairy and swine farm manures, food processing residues and
organic household wastes, vegetable oil residues, and energy crops, etc.

5.4.1 Biomethane production

The production of biomethane mainly consists of two steps. In the first step, biogas is produced
from the raw materials previously mentioned. Then, the produced biogas is further processed
and cleaned in order to get biomethane suitable for transport applications. A simple process
flow diagram of biomethane production from biomass feedstock is shown in Fig 5.

Biogas production. Biogas is produced by means of an anaerobic digestion process. In this

digestion process, complex organic materials are broken down by symbiotic groups of bacteria
at different stages of the process. There are four basic types of microorganisms involved in the
four main steps, namely hydrolysis, acidogenesis, acetogenesis/dehydrogenation, and
methanation. First, hydrolyzing and fermenting microorganisms attack the complex biomass
materials. Microorganisms taking part in this step are anaerobes such as Bacteriocides,
Clostridia, and Bifidobacteria. During this step, acetate, hydrogen, and a mixture of various
volatile fatty acids are produced. In the second step, other anaerobic bacteria change the
resultant compounds into short-chain organic acids (e.g., butyric, propionic, and acetic acids),
alcohols, hydrogen, and CO2. At the third stage, acidogenic microorganisms convert the
products into hydrogen, CO2, and acetate. The high concentrations of hydrogen produced in
this step can hinder the performance of the remaining bacteria. Thus proper con trol of the
hydrogen concentration is important to achieve a maximum production rate. Finally,
methanogenic bacteria such as Methanosarcina barkeri, Metanon coccus mazzei, and
Methanosaeta concilii convert either one or all of the produced materials into biogas [27]. Since
these bacteria are sensitive to temperature, this has to be considered in the digestion process.
In order to promote bacterial activity, temperatures of at least 20°C are required. Generally,
higher temperatures shorten the processing time and reduce the required volume of the digester
tank by 25%-40%. Regarding the temperature, bacteria of anaerobic digestion can be divided
into psychrophile (25°C), mesophile (32°C-38°C), and thermophile (42°C-55°C) have to be
heated in colder climates in order to encourage the bacteria to carry out their function. Digestion
times range from a couple of weeks to a couple of months depending on the feedstock used and
the digester type as well as on the digestion temperature. The kinetics of the whole process is
proportional to many parameters such as substrate, thermal and pH conditions of the fermenter,
and the enzymes produced during the steps.

Figure 5 A simple process flow diagram of biomethane production from biomass feedstock.

Biogas purification. The produced biogas usually comprises of methane and CO2, generally in
a ratio of 6:4 (55%-80% methane). In addition, some associated gases such as hydrogen sulfide
in small quantities and other trace gases are produced. To produce biomethane, methane has to
be separated from CO2 and the remaining components of the biogas. Biogas purification is
normally performed in two steps where the produced CO2 is removed from the gas in the main
step. Produced biogas is made free of minor contaminants (e.g., sulfur compounds) before the
CO2-removal step, and the water dew point can be adjusted before or after the CO 2 removal
process.

5.4.2 Types of biomethane

Based on the raw material used and transformation process involved in the production of
biomethane, it can be categorized as:

First-generation biomethane. Anaerobic decomposition of organic wastes is involved in

the production of biomethane, where the natural breakdown of organic matters occurs under
bacterial action. Slightly preheated biogas produced this way can be used to mitigate household
demand for cooking, with limited supply for the generation of electricity, heat, and combined
cycle.

Second-generation biomethane. The production of second-generation biomethane

comprises “thermochemical conversion” to gasify the lignocellulosic biomass (wood and
straw). The thermochemical conversion process is carried out in two stages. In the first step,
synthetic gas is produced from lignocellulosic biomass, then the produced synthetic gas is
transformed into biomethane by introducing a catalyst into the process.

Third-generation biomethane. This is produced from the direct transformation of

microalgae cultured in high-yield photosynthetic reactors where natural light, water, and
minerals work as reagents and produced CO2 is recycled in each step. This is an emerging
technology to be developed on an industrial scale by 2020-30.

5.4.3 Properties of biomethane

Methane is the simplest of all hydrocarbons that can exists as gas at standard temperature and
pressure. Its chemical formula is CH4. Further, methane is a highly combustible and odorless
gas. It is also a GHG with a global warming potential of 23 in 100 years (IPCC 2001). The
methane content of biomethane is about 95%-100%. Thus biomethane produced from biogas
is chemically similar to natural gas, and it also does not differ in other energy components and
characteristic parameters from natural gas. Therefore biomethane is suitable for all the
applications of natural gas.

5.5 Biohydrogen

Hydrogen (H2) is the most abundant and common element in the universe. H2 barely exists
naturally as free substance, but can easily found chemically combined with other elements. It
mainly exists as molecules chemically bound with water, biomass, or fossil fuels. It can be
produced from all of these substances. However, the conversion of biomass to H2 has gained
special interest as it is a method to exploit renewable energy toward the reduction of (GHG)
emissions.

5.5.1 Biohydrogen production

Currently, biohydrogen from biomass can be produced using two different methods, namely
biomass gasification and biomass digestion. The gasification process is an important
component of many current and up-coming low environmental impact energy systems. The
process is done by heating biomass material in the absence of air or oxygen. It produces
synthesis gas primarily consisting of carbon monoxide (CO), CO2, and H2. The production of
H2 and CO from biomass gasification is reportedly higher than simple biomass combustion. H2
production can also be increased with the rise of the operation temperature in the gasification
process. On the other hand, in the digestion method, wet feedstock such as manure is converted
to produce primarily CH4 and CO2. CH4 is then converted into H2 through a steam reforming
process. The endothermic steam reforming process converts CH4 and water vapour into H2 and
CO. The product gas containing CO can be further separated into H2 and CO2. The gas
produced from both methods is then sent to for a purification process to increase the H2
concentration and is then used in various applications.

5.5.2 Properties of biohydrogen

Biohydrogen is chemically identical to conventional hydrogen gas and does not differ in
characteristic parameters. It is just produced from the gasification or digestion of biomass. It is
a colorless, highly flammable, gaseous element, and the lightest of all gases. The transportation
and storage of hydrogen gas becomes difficult, since it occupies a large volume compared to
other gaseous fuels. Safe handling during transportation and storage is another concern that
requires many precautions. H2 is mainly stored in a liquid form after cooling the gas to liquid
phase using nearly cryogenic temperatures (-253°C). Another common storing option includes
storing it as a constituent in other liquid such as NaBH4 solutions, rechargeable organic liquids,
or anhydrous NH3 through the presence of a few catalysts.

6. Barriers of biofuels
Biofuels are regarded as one of the most viable options for reducing CO 2 emissions in the
transport sector. However, conventional plant-based biofuels share only 4% of the total
transportation fuel consumption due to several major limitations. These barriers limit the
development of the biofuel market. The main market constraints that restrain the commercial
production and use of biofuels have been summarized here.

 Biomass sources may compete with food supply (feedstock barrier)

 The production of biofuels is still expensive (financial barrier).
 New technology or improvements in technologies for certain biofuels are still needed
(technology barrier).
 The production of a specific biofuel requires new or modified infrastructures
(infrastructure barrier). Existing laws and regulations are immature for biofuels (law
and regulation barrier).
 Existing storage and transportation systems are inappropriate for biofuels (storage and
transportation barrier).
 There is a lack of political will to promote biofuel market development (political
barrier).
 No quality standards exist for some biofuels (trade barrier).
 There is a lack of knowledge on biofuels (knowledge barrier).

7. Potential economic benefits of biofuel production

Replacing fossil fuels with biofuels has the potential to generate a number of benefits. In
contrast to fossil fuels, which are exhaustible resources, biofuels are produced from renewable
feedstocks. Thus, their production and use could, in theory, be sustained indefinitely.

While the production of biofuels results in GHG emissions at several stages of the process,
EPA’s (2010) analysis of the Renewable Fuel Standard (RFS) projected that several types of
biofuels could yield lower lifecycle GHG emissions than gasoline over a 30 year time horizon.
Academic studies using other economic models have also found that biofuels can lead to
reductions in lifecycle GHG emissions relative to conventional fuels. Second and third
generation biofuels have significant potential to reduce GHG emissions relative to conventional
fuels because feedstocks can be produced using marginal land. Moreover, in the case of waste
biomass, no additional agricultural production is required, and indirect market-mediated GHG
emissions can be minimal if the wastes have no other productive uses.

Biofuels can be produced domestically, which could lead to lower fossil fuel imports. If biofuel
production and use reduces our consumption of imported fossil fuels, we may become less
vulnerable to the adverse impacts of supply disruptions. Reducing our demand for petroleum
could also reduce its price, generating economic benefits for American consumers, but also
potentially increasing petroleum consumption abroad.

Biofuels may reduce some pollutant emissions. Ethanol, in particular, can ensure complete
combustion, reducing carbon monoxide emissions.

It is important to note that biofuel production and consumption, in and of itself, will not reduce
GHG or conventional pollutant emissions, lessen petroleum imports, or alleviate pressure on
exhaustible resources. Biofuel production and use must coincide with reductions in the
production and use of fossil fuels for these benefits to accrue. These benefits would be
mitigated if biofuel emissions and resource demands augment, rather than displace, those of
fossil fuels.

8. Potential economic disbenefits and impacts of biofuel

production
Biofuel feedstocks include many crops that would otherwise be used for human consumption
directly, or indirectly as animal feed. Diverting these crops to biofuels may lead to more land
area devoted to agriculture, increased use of polluting inputs, and higher food prices. Cellulosic
feedstocks can also compete for resources (land, water, fertilizer, etc.) that could otherwise be
devoted to food production. As a result, some research suggests that biofuel production may
give rise to several undesirable developments.

Changes in land use patterns may increase GHG emissions by releasing terrestrial carbon
stocks to the atmosphere. Biofuel feedstocks grown on land cleared from tropical forests, such
as soybeans in the Amazon and oil palm in Southeast Asia, generate particularly high GHG
emissions. Even use of cellulosic feedstocks can spur higher crop prices that encourage the
expansion of agriculture into undeveloped land, leading to GHG emissions and biodiversity
losses.

Biofuel production and processing practices can also release GHGs. Fertilizer application
releases nitrous oxide, a potent greenhouse gas. Most bio-refineries operate using fossil fuels.
Some research suggests that GHG emissions resulting from biofuel production and use,
including those from indirect land use change, may be higher than those generated by fossil
fuels, depending on the time horizon of the analysis.

Regarding non-GHG environmental impacts, research suggests that production of biofuel

feedstocks, particularly food crops like corn and soy, could increase water pollution from
nutrients, pesticides, and sediment. Increases in irrigation and ethanol refining could deplete
aquifers. Air quality could also decline in some regions if the impact of biofuels on tailpipe
emissions plus the additional emissions generated at bio-refineries increases net conventional
air pollution.

Economic models show that biofuel use can result in higher crop prices, though the range of
estimates in the literature is wide. For example, a 2013 study found projections for the effect
of biofuels on corn prices in 2015 ranging from a 5 to a 53 percent increase. The National
Research Council’s (2011) report on the RFS included several studies finding a 20 to 40 percent
increase in corn prices from biofuels during 2007 to 2009.

A National Center for Environmental Economics (NCEE) working paper found a 2 to 3

percent increase in long-run corn prices for each billion gallon increase in corn ethanol
production on average across 19 studies. Higher crop prices lead to higher food prices, though
impacts on retail food in the US are expected to be small. Higher crop prices may lead to higher
rates of malnutrition in developing countries.