The biofuel sector is in an extremely unusual situation where it stands at the crossroads between opportunity and crisis, requiring the right approach and the right storage systems with pressure relief systems to manage it.
Whilst the most common saying about a crisis being a combination of danger and opportunity is grossly mistaken, biofuel is in a particularly unique position caused by a tremendous and unexpected surge in demand.
The Guardian reported a “scramble for biofuel” caused by shortages in fossil fuels and surging prices, with biofuel demand expected to increase by 30 per cent in 2026 and by 70 per cent by the end of the decade.
These figures, initially from a Transport & Environment study, highlight a concern that the current fossil fuel crisis and the surge in biofuel interest that it causes could inadvertently lead to a food vs fuel dilemma for farmers and the agricultural sector.
What is food vs fuel? Why is the current fuel crisis and related disputes causing it? And what ways can the dilemma be minimised or sidestepped entirely?
What Is Food Vs Fuel?
There are four major generations of biofuels, but by far the most common, widely used and easily manufactured is first-generation biofuels made from starchy crops, vegetable oils and oily seeds.
These biofuels are already forms of oil, so they need very little work to convert them to bioethanol or biodiesel that can be used in various biofuel blends.
The big advantage of this is that countries that already have a major suitable agricultural crop yield can dedicate some of this resource to biofuel production very easily.
Brazil famously did this in the mid-70s by converting sugar cane into bioethanol and using dedicated ethanol-powered or flexible fuel vehicles to use the cheaper domestic source of fuel during oil crises.
Other countries such as India and Indonesia are doing the same, but a concern with widespread use of biofuel is that it requires a lot of agricultural resources and land to produce the crops needed for the biofuel.
Any land, water, energy or fertiliser used in the process of producing biofuel is not being used to produce food, which can create or intensify food shortages and even potentially lead to famines during poor crop yields.
Whilst biofuel is not entirely to blame, and many fertilisers are derived from petroleum byproducts, a reliance on easily produced first-generation biofuels can exacerbate any existing supply issues.
What Has Caused The Most Recent Food Vs Biofuel Crisis?
The conflicts centred on the Strait of Hormuz, one of the most important oil transport areas in the world, have caused major shortages of crude oil and liquified natural gas (LNG) that are increasingly felt as oil reserves run low.
This has caused a scramble for biofuel to fill at least some of the void, with biofuels expected to supply six per cent of the energy demand from the transport sector, a 50 per cent increase from pre-crisis levels.
Any significant increase beyond this, such as the ambitious 20 per cent target certain countries are trying to meet, would require dramatically more land usage and potentially disastrous ecological consequences.
If the 20 per cent target was universal, an additional land mass equal in size to the country of South Africa would be required to meet the additional biomass needs.
As an oil crisis also affects fertiliser production, this creates a double-whammy effect that can cause food prices to increase drastically if not carefully managed.
Can Food Vs Biofuel Disputes Be Avoided?
Whilst many strategies have been proposed, there are two main ways to reduce the strain on food supplies whilst still ensuring that biofuel needs are fulfilled.
Increase Alternative Sustainable Biofuel Supplies
The priority for many biofuel manufacturers is to move away from relying on food crops and instead use agricultural byproducts, food waste, algae and electrofuels as more sustainable alternatives.
Whils there are various ways to produce biofuels without relying on crops, they are either energy intensive, require specialist resources, are expensive, are largely theoretical, or some combination of all of the above.
There has been a constant hunt for a breakthrough in this regard, but at present the costs are significantly higher than first-generation biofuels, and thus research has moved to more profitable areas.
Reduce Biofuel Demand
The alternative, one that T&E propose, is to limit biofuel usage to industries that cannot be easily electrified.
The rise of battery electric cars helps to reduce demand for fuels in the personal transport sector, allowing for more biofuels to be focused on aviation and shipping, two industries that cannot be as easily electrified.
