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Don't Miss The Great Solar Debate: Where Does the Global Solar Industry Stand? ×

Perception vs Reality: The Eight Most Common Biofuels Myths

What are the most-told myths for biofuels, and what does science actually tell us? The Digest separates the fact from the fiction.

Jim Lane, Biofuels Digest
June 08, 2012  |  23 Comments

The EU and the United States are preparing for what appears to be an extended debate on the merits and structure of biofuels mandates. Especially in the US, where the Renewable Fuel Standard is coming under blistering attack from the coalition of oil, food and environmental groups that successfully sold the myth of "food vs fuel".

Myth #5. Cellulosic biofuels will be five years away, forever.

Reality: The first commercial-scale cellulosic biofuels planet are opening this year in the US and Europe, and more will be opening each year because the Renewable Fuel Standard and the EU biofuels targets had their intended effect. As BP Biofuels chief Phil New put it, passage of the 2007 RFS “galvanized us in to action.”

As it happened, it was almost exactly five years from the passage of RFS2 to the opening of the first cellulosic biofuels plants at commercial scale — despite the 30-month disappearance of project finance to build such plants, int he 2008-2010 credit crunch.

So the five years part was right, but the “forever” part, that’s myth. Cellulosic biofuels are affordable and available.

Myth #6. President Obama wants everyone to use algae-based biofuels that cost $26 per gallon.

Reality. Well, it may be little known, but the commencement of envelopment of algal biofuels is an initiative of the Reagan Administration, continued under first Bush Administration, cancelled under the Clinton Administration due to extremely low oil prices prevalent in the 1990s, and revived under George W. Bush. It is decidedly a Republican renewable fuels program, not that there’s anything wrong with that.

Basically, if there’s a President Algae, it’s conservative icon Ronald Reagan — more power to him. If there’s a party that should get credit on algal fuels, it’s the GOP.

The $26 per gallon figure was circulated after the Navy paid that amount for testing and certification quantities of algal-based biofuels. However, the Navy is on record saying that they are intent on deploying such fuels only after they reach commercial scale, and comparable cost with conventional jet fuel.

Let’s look at exactly how and why President Obama got himself embroiled in the controversy. First of all, he’s a former farm state senator, and a strong believer in addressing climate change and doing game-changing things to address the US situation in the Middle East — accordingly, to at all surprising that he he strongly pro-biofuels.

But there’s a lot of political opportunism in all this.

As Dan Morgan wrote in The Globalist, it was “former House Speaker Newt Gingrich, then still a plausible candidate for the Republican nomination for president, [who] mocked President Barack Obama’s support for algae-based fuels. He called it “cloud cuckoo land”.” Gingrich went on to label Obama as “President Algae”.

But Morgan adds, “a senior American politician noted that by the end of the decade “you could be fueling 12 airplanes, 20 airplanes, 30 airplanes” with algae-based fuels. That was none other than Newt Gingrich, addressing an audience of California Republicans in February.”

Hmmm.

Myth #7. Biofuels require massive subsidies.

Reality. Well, no. Biofuels producers point out that subsidies will accelerate the commercialization of their industry, and if that is a policy benefit to the country offering subsidies, that can be a win-win. But they are not at all requiring them. In fact, both Brazilian cane ethanol and US corn ethanol have successfully transitioned off subsidies.

More than that, by helping to create a “floor price” for commodity crops like corn, U.S. biofuels have allowed the U.S. to also end payments to farmers made until long-time farmer payment policies designed to avert farm bankruptcies, and a halt in food production, during periods of low crop prices. The current US farm bill will end direct gamer payments, which in 2011 paid out $5.6 billion to farmers. That’s a result of the increased protection offered by crop insurance — and the price floor that biofuels provides.

Myth #8. Natural gas is a renewable fuel, too, and should receive the same advantages as biofuels.

Reality. “Gas has been reclassified as a green source of power by Horizon 2020, an €80bn European Union programme unveiled last year, which could have serious repercussions for the renewable energy industry,” reports The Guardian.

Is gas green? Well, it certainly is greener than coal, as a source of electric power. But the definition of “renewable” turns on the time lines. It’s true that if you take a ton of biomass and bury it for 60 million years that, under the right conditions, it will become natural gas or oil. But “renewable”, when it comes to biomass, generally applies to perennial or annual crops, or quickly growing wood.

So there you have it. The perception, and the reality. Our take at the Digest — base it on science. That doesn’t mean, always, quite the same thing as “base it on anything that comes out of a scientist’s mouth” — over time, consensus views have shown that a policy of “biofuels, never!” is just as foolish as “biofuels, always and in every place at every time.”

This article was originally published on Biofuels Digest and was republished with permission.

Image: Chalkboard via Shutterstock

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23 Comments

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Fred Linn
Fred Linn
June 23, 2012
-------" Follow that up with a little research into the industrial nature of corn farming here and you can quickly see what is meant by "corn farmers"."------- Awww----you see the nature of the beast. Good man.
Jim Mosley
Jim Mosley
June 23, 2012
fred, I appreciate your comment and would welcome the German approach to many things energy related and a holistic approach to all things! But that is not how we are producing corn-ethanol in the U.S. of A. I have personally lobbied my Senator regarding the subsidy bill and I can tell you that it was plainly stated that getting subsidy money to the corn farmers was more important than creating a good energy policy. Follow that up with a little research into the industrial nature of corn farming here and you can quickly see what is meant by "corn farmers".
Fred Linn
Fred Linn
June 18, 2012
jmosley---notice that the people who oppose corn ethanol all think in straight linear pathways---nature does not follow straight linear pathways. They ascribe the ethanol as the only energy storage of the corn plant. In fact, the corn(grain) consists of less than 10% of the photosynthesis product of the plant. Stover consists at least 50% of the plant product---and there is a large portion of the plant underground that you do not see. Not only that, over 1/2 of the weight of the grain used is returned as DDG. Animal feed. Take the sewage after feeding the cattle---and in the German experience, the methane produced from 1 1/2 cattle can supply energy needs of one person. And you still have the ethanol and stover. Stover can be dried, pelletized and provide more energy than is needed to distill the corn. Nature does not work in straight, either/or, 0/I pathways---nature works in circular cycles. Everything is completely used and recycled. If humans wish to continue to survive and maintain---we have to learn to base our industrial processes to work the way nature does. Nature has been working on this for the last approximately 1.5 billion years. We'll do well to learn from nature.
Jim Mosley
Jim Mosley
June 18, 2012
To expand on what MarkEHanson says: This very interesting info sure is faint praise for corn ethanol isn't it? So you managed to squeeze the numbers and get corn ethanol below break even... barely.
Fred Linn
Fred Linn
June 16, 2012
Because the oil companies and their republican pawns are doing everything possible to block the widespread adoption of biofuels. Brazil encourages the use of ethanol made from sugarcane by mandating market access, and the establishment of economical farming, manufacturing and usage. Brazil has been successful, generally acknowledged as the first biofuel economy---providing over 50% of their transportation fuel needs using ethanol and other bioalternative fuels. And they are becoming quite wealthy selling the oil they are not using on the world market. Mainly to the dumb gringos en el norte. In the last 30 years, Brazil has gone from bankruptcy, communist revolution, civil war, riots, pillaging and civil unrest by impoverished mobs to the 10th largest economy in the world with one of the worlds most stable currencies, and a high rate of expansion of GDP over a prolonged period. Brazil has gone from rags to riches, and they have used biofuels to get there. In the last 30 years, the US is going from riches to rags---and they are using fossil fuels to get there. And that plan is working better than anyone could have predicted or imagined. In the last ten years, the US total wealth equity has shrunk by about $40 to $50 Trillion. Brazil has a government plan and support in establishing and complete conversion to biofuels. The Brazilian economy is expanding and flourishing. The US has no plan or support for establishing or converting to a widespread biofuels market. The US economy is stagnating and shrinking. And it looks like more of the same down the road. Just look around.
mark e hanson
mark e hanson
June 13, 2012
I think a fundamental issue that is missed is if *sugar cane* is *so* much more efficient 8:1, then why aren't we using/making sugar cane ethanol? Mark Hanson
Christopher Lee
Christopher Lee
June 13, 2012
I admit it's a hobby horse of mine, but the argument here is still food vs fuel crops. Is there some lobby pressure that stops you discussing, for example, a return to long-stemmed grain crops? The discussion could be taken further, for example on possibilities for more varied crop rotations (less plant disease, auto-fertilisation) and intercalation. Another point: there needs to be parallel development for harvesting roadsides, parks and other places that need maintenance in any case. Compromise between varied amenity (scenery) and productivity; development of efficient harvesting robots (essential if this is to work); compression, preprocessing or other means of reducing the bulk to be transported.
Severi Gustaf
Severi Gustaf
June 13, 2012
As with most issues there are many valid arguments on both sides. To those who think biofuels are a giant rip off, I suppose the best argument is that the lead time to replace even a small portion of fossil fuels is long. Just like wind turbines and solar panels, the development time is long and there are many concepts and pathways today that will be replaced with better alternatives in the future. These new pathways will take into consideration land issues as well as social issues and demand effects on food. But for anyone to imagine that all problems will be solved or all technologies improved in a few years, does not understand process development. The debate is important and we should try to get the facts straight before we make any conclusions on the viability and potential of advanced biofuels.
Anumakonda Jagadeesh
Anumakonda Jagadeesh
June 13, 2012
Biofuel is a major alternative energy option. There are ways by which Biofuel can be produced from plants like Agave. Mexico is leader in this. Dr.A.Jagadeesh Nellore(AP),India E-mail: anumakonda.jagadeesh@gmail.com
Roman Marunchak
Roman Marunchak
June 12, 2012
On the page I posted it was the total value. Here you can find the distribution between different factors. http://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch10s10-6-5.html
pierre vincent
pierre vincent
June 12, 2012
That IPCC bit is for thermal expansion only. The USGS numbers are for glacial melt.
Roman Marunchak
Roman Marunchak
June 12, 2012
http://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch11s11-9-4.html
pierre vincent
pierre vincent
June 12, 2012
fantasy? what? on the permo-traissic extinction? the rock record is clear. How can you call that fantasy?
pierre vincent
pierre vincent
June 12, 2012
no conflict with IPCC do you even know what the IPCC is ? they are a clearing house of info from the world's scientific publications. Are you suggesting that the USGS is in conflict with the IPCC, when they are a contributor to IPCC reports?????
Roman Marunchak
Roman Marunchak
June 12, 2012
Sorry, but i prefer to trust IPCC numbers instead of this fantasy.
pierre vincent
pierre vincent
June 12, 2012
hmmmm ... putting words, or rather, numbers in my mouth. Dishonest debating tactic. Regardless, read: http://pubs.usgs.gov/fs/fs2-00/ - that will give you an idea of water level rises as our glaciers melt away. The real question remaining is how fast we lose our ice caps. The higher the CO2 levels, the faster they go. We are on course for achieving a rise in CO2 levels in 100 years that occured at the end of the permian over 100,000 years. You have no idea what's in store for us if we don't reign in our C emissions. Read Peter Ward's 'Under a Green sky' for starters. We are setting ourselves up for a permo-triassic - like extinction event except orders of magnitude faster. Be very afraid and take it VERY seriously. Just like the scientists who study these things. That is, the thousands of REAL scientists, not the handful of frauds bankrolled by exxon. That extinction event wiped out 97% of life in the seas and 80% of life on land. All the world's forests burned to the ground. Because there was no longer a temperature differential between the equator and poles, the ocean currents and treadmills stopped, the ocean went anoxic and the sulfur reducers flourished, filling our skies with H2S. Up to the permo-triassic event, sedimentary rocks are teaming with life. Abruptly afterwards, there is nothing but death. Not even any coal seams for millions of years. It took at least 30,000,000 years for life to kick back into gear, re-diversify, and give rise to the dinosaurs.
Roman Marunchak
Roman Marunchak
June 12, 2012
Although I am generally pro biofuels, I really laugh at the comment Nr.2. Pierrot, do you seriously think we have to move New York after 30 cm sea level rise by 2100??? A little comment on myth Nr.5. The ethanol from woody biomass is already in commercial production for several years, but not for sale as biofuel.
John Smith
John Smith
June 12, 2012
I look at the comments of this, and quite honestly a lot of websites that take readers comments, and I laugh, I mean really laugh at someone that seems to be wanted to be taken seriously and they list it as coming from 'Anonymous'. If you want to be taken seriously then sign your comments, otherwise you become comic material for those of us who can think.... Such BS
ANONYMOUS
June 12, 2012
Sure oil companies write off a lot of R+D against tax. So do all industry. But those write-offs are a small proportion of their total tax bill (including fuel tax), and tiny compared to the subsidy on biofuel per litre, because the oil companies produce more litres. STOP USING OUR TAXES TO ENRICH ADM USE THEM FOR SOME RENEWABLES WHICH MAKE SENSE (LIKE WIND, biogas...)
ANONYMOUS
June 12, 2012
Well we see where your advertizing revenue comes from.... 1. If you increase crop demand, you increase crop prices. Economics lesson 1. 2. And if you increase crop prices you reduce food demand. Of course you will hardly notice the price rise if you are living off processed food in US. But guess what, most people don't live in the US: people in poor countries typically need half their income to buy unprocessed food crops to eat. They do notice that since biofuels came in the inflation-adjusted price of crops stopped coming down (as it has done almost continuously for centuries) and instead shown sustained rises as well as greater volatility. 3. If you include any reasonable estimate of ILUC emissions, US biofuels don't save GHG. The corn-belt universities who do the ILUC estimates for EPA had to work some amazing fiddles to massage the ILUC figures down to a "politically acceptable" level. That includes assuming that 40% of the crops used for biofuel will be provided ILUC-free by people eating less food. So if you don't think that will happen, you had better ask EPA to increase their ILUC estimates accordingly. They also assumed that the higher crop prices will cause enormous yield increases beyond the historical trend: although the economic evidence shows this effect is negligible, it helps massage down the figures. 4. You are selective in reporting the news on 2nd generation biofuels. What about the closure (after absorbing vast amounts of government funds) of the last two claimants for "the first commercial-scale 2nd generation plant": namely the IOGEN plant in Canada and the CHOREN plant in Germany. We all hope for the best, but you have to be a bit gullible to keep believing the hype. 5. In US biofuels get massive subsidies both at the supply and consumption end (in the form of lost motor tax. The additional tax burden of subsidizing an economically senseless activity is one reason why we are losing competitiveness. Sure oil companies write off a lot of
ANONYMOUS
June 12, 2012
"If biofuels currently make such great economic sense, why would their use need to be enforced by government mandates?" I like to answer a question with a question sometimes... if the use of seatbelts is so beneficial why does it have to be enforced by criminal laws? If speed limits protect people so well, why are they also? If cancer causing agents are so bad for you, why does the FDA have to stop people from putting them in foods? If murder is so bad, why does it have to... OK i could go on and on here... the answer is this; people are stupid! Not stupid as in unintelligent, but the classical definition of stupid, ignoring common sense and reason for the sake of their own benefit, pride, greed or malice. Good rules have to be enforced because they are good, and some people are unwilling to do what is good just for the simple fact that it is good. Hell, some even say there's no such thing as good or bad, just what is "good for you", or what makes you feel good, regardless fo the consequences to others or long term to yourslef. it is a matter of morality, not economics, science or politics. Economically speaking, fossil fuels are good (for those controlling the stocks or transport), economically biofuels are good, considering the long term effects, renewability, costs to the consumers, farmers, transport, electrical companies, manufacturing, processing.. basically everyone except those who benefit from fossil fuel production. Dinosaurs harvesting dinosaurs, get with the times and change your production and you can still be on top, just a different product.
pierre vincent
pierre vincent
June 11, 2012
the economics are not so simple. oil and coal get massive massive subsidies. they not cheap at all. they are extremely expensive. We just havent paid the price yet. but we will. or our children will. what will it cost to move the city of new york? LA? Shanghai? Vancouver? Montreal? Bombay? New Orleans? Sydney? Rio De Janeiro? Calcutta? - when the sea rises? what will it cost to cool the planet back down again to a liveable temperature? what will it cost to get the ocean currents moving again after the ice caps are gone? what will it cost to bring water to western cities when the rivers and aquifers run dry? what will it cost to de-acidify the oceans to save the coral reefs? etc etc. etc. once our false-economy integrates those costs into a litre of fuel or a kw.hr of power, we'll switch.
ANONYMOUS
June 11, 2012
First, I'd just point out the most obvious flaw in this argument: If biofuels currently make such great economic sense, why would their use need to be enforced by government mandates? The reality is that currently biofuels cannot compete with crude oil, coal or natural gas derived fuels based simply on cost. Any current biofuel, whether corn/sugarcane ethanol, algae, waste biomass, etc. requires subsidies. Government bean counters would also never allow subsidized biofuels to replace oil, coal and NG fuels. US oil, coal, and NG producers contribute hundreds of billions of dollars each year to federal revenues. Biofuel producers do not contribute a single dime to net federal tax revenues. It is also silly to ignore the immutable free market forces that supply and demand have on fuel prices. While crude oil prices may currently be over $90/bbl, even if biofuels were somehow to become much cheaper overnight, the reduced demand for crude oil would cause a massive drop in crude prices. The cold, hard reality is that both the US and the rest of the world have several hundred years' reserves of economically recoverable oil, coal and NG. Until biofuel companies can demonstrate honest, subsidy-free mass production costs equivalent to crude oil fuels at $40/bbl, then those companies will not survive in the free market. It has nothing to do with "myths", just simple free market economics.

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Jim Lane

Jim Lane

Editor & publisher of Biofuels Digest, the most widely-read biofuels daily and newsletter. The Digest covers producer news, research, policy, policymakers, conferences, fleets and financial news. It is home to the Biofuels Digest Index™,...
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