The Organization for Economic Cooperation and Development (OECD) report on biofuels policies out this week claims that that biofuel production “has a limited impact on reducing greenhouse gases and improving energy security, and has a significant impact on world crop prices.” However, an analysis of the findings indicates the opposite.
According to a review of the report by the Renewable Fuels Association, the “OECD data does not support the conclusions of the report or a call by OECD officials for a moratorium on biofuels.”
For instance, OECD credits ethanol produced from corn starch with a 30% reduction in greenhouse gas
(GHG) emissions if using natural gas, and a 50% reduction in GHG if the facility is powered by biomass.
Based on this finding, a moratorium is not warranted.In addition, the modeling included in the report suggests that a 28% drop in world oil prices would cause a 12% reduction in world coarse grain prices ($0.75 per bushel in the case of corn today), underscoring the fact that skyrocketing oil prices are the largest driver behind increasing grain prices. By contrast, removing biofuel mandates like the Renewable Fuels Standard (RFS) would reduce coarse grain prices by just 1% ($0.06 per bushel of corn). Even abandoning all biofuels policies would only yield an average coarse grain price reduction of 7% ($0.45 per bushel).


The partnership will evaluate a mixed alcohol catalyst from Dow that could hold potential for making cellulosic ethanol more commercially viable. “NREL is interested in reducing the cost of biofuels in support of the nation’s energy goals,” NREL Director Dan Arvizu said. “Dow’s catalyst technology and expertise in catalyst development and testing will be extremely helpful as we evaluate the viability of this approach on a larger scale.”
Shell announced this week that it is increasing its shareholding in
EPIC executive Director Toni Nuernberg says EPIC has already achieved much success in its first two years, but the organization is charged for even greater success to come. She says it’s time for EPIC to no longer just respond to the debate about ethanol, but become proactive, get out front and change the debate. EPIC board members new and experienced agree.
St. Joseph, Missouri is becoming a center for renewable fuels in this country as the city will soon become home to its third biodiesel plant, joining an ethanol refinery in the area.
The CEO of the
The Missouri Renewable Fuel Standard requires gasoline to be blended with 10 percent ethanol when ethanol is cheaper than conventional gasoline. This price provision means ethanol cannot increase the cost to consumers, Marshall said.
The U.S. Department of Energy has awarded grants of up to $40 million over five years for two small-scale cellulosic biorefinery projects, one in Wisconsin and one in Louisiana.
The survey of 1,200 registered voters conducted June 23 – July 1 also revealed that nearly half of Americans believe that skyrocketing gasoline and fuel prices are the factors most responsible for rising food prices.