US: Rise in Blending Limit Must Ensure Increase in Production of Next Generation Biofuels

America’s biofuel producers and lobbyists have urged President Obama to raise the 10 percent limit of ethanol blending in gasoline to 15 percent. Although the decision to raise the blending limit would infuse billions of dollars into the economy, create jobs and have environmental benefits, it could also lead to shortage in food supplies around the world.

The Environment Protection Agency ordered that about 9 billion gallons of ethanol be blended with fuels in 2008, a major portion of this came from corn and maize - both being edible crops. Farmers were given billions in subsidies to grow biofuel yielding crops, seeing great demand for biofuels on the back of record breaking oil prices farmers opted to sell these food crops to biofuel companies which in turn led to the food crisis witnessed last year. 

President Obama has thrown his support behind biofuels as a measure to reduce carbon emissions so if the President is serious in pursuing the use of biofuels as a long-term solution to the environmental problems he must ensure that any new investment is aimed at second & third generation biofuels and research of fourth generation (genetically modified) biofuel crops.

Emphasis must be given to waste management of agricultural residue and extracting biofuels from the same. Using agricultural wastes like cotton & rice straw (second generation biofuels) instead of using corn or maize would not only increase efficiency but would also help in reducing excessive use of pesticides and fertilizers which are the main reason behind the rapidly increasing ‘dead zone’ in the Gulf of Mexico.

Algal production of biofuels using waste water has shown great promise with many US companies running pilot projects to evaluate its large scale commercial viability. However, the technology is still in its nascent stage and requires tremendous amounts of investments for research and development. This technology seems to be the most efficient and eco-friendly as it turns waste to fuel without triggering a food vs. fuel situation.

Increasing the blending limit to 15 percent would take the United States ahead of the European Union which aims to achieve a 10 percent blending target by 2020. It is estimated that the decision would inject a projected $24.4 billion in the recession hit economy also creating thousands of jobs.

Image: meganpru (Creative Commons)

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