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Volume 2 issue 4

BIOFUELS FOR TRANSPORTATION

Biofuels - ethanol, sugar cane
In 2005, Brazil produced 16.5 billion litres of fuel ethanol (45.2 per cent of the world's total) with the United States a close second at 16.2 billion litres, or 44.5 per cent of the total. Ethanol provides roughly 40 per cent of Brazil's nondiesel fuel and 2-3 per cent of U.S. non-diesel fuel.

Sugar cane
is the most important crop for producing biofuels today and the feedstock for more than 40 per cent of all fuel ethanol. Corn ranks a close second: the primary source for biofuel production in the U.S., it supplies nearly the same share of world fuel ethanol as sugar cane. Biodiesel, produced mainly from rapeseed or sunflower seed, comprises 80 per cent of Europe's total biofuel production. The EU accounted for nearly 89 per cent of all biodiesel production worldwide in 2005. Germany produced 1.9 billion litres, or more than half the world total. Global ethanol production more than doubled between 2000 and 2005, while production of biodiesel, starting from a much smaller base, expanded nearly fourfold. In contrast, oil production increased by only 7 per cent over this period. In 2005, ethanol comprised about 1.2 per cent of the world's gasoline supply by volume and about 0.8 per cent by transport distance traveled (due to its lower energy content).

World oil demand
From 2002-04, world oil demand increased by 5.3 per cent. China's consumption alone increased by 26.4 per cent, while consumption in the United States rose by 4.9 per cent; Canada 10.2 per cent; and the United Kingdom 6.3 per cent. Demand in Germany and Japan, meanwhile, dropped by 1 per cent and 2.6 per cent respectively. Of the world's 47 poorest countries, 38 are net oil importers, and 25 of these import all of their oil. Yet many of these countries have substantial agricultural bases and are well-positioned to grow highly productive energy crops.

Roughly 80 per cent of the world's conventional oil reserves are under state control and off limits to private investment. Biofuel industry and the environment

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