Gordon Quaiattini . Biofuels are part of the solution
Gordon Quaiattini, Citizen Special
Published: Friday, April 25, 2008
The most significant challenge that confronts the world is the
need to grow
beyond oil. Indeed, at a time when crude oil is trading at or
above $115 per
barrel and when experts predict gas prices could be as high as
$1.40 per
litre by the summer, the need for viable alternatives to
petroleum has never
been more vital or more urgent.

We must address the unhealthy dependency we have developed on
fossil fuels
while replacing a substantial part of our energy mix with
renewable biofuels
such as biodiesel and ethanol. This will pay a variety of
dividends:
Biofuels are a cleaner, greener and more affordable source of
energy that
will strengthen economic prospects at home and in emerging
economies alike.

That statement may come as something of a surprise given the
headlines. In
recent days and weeks, considerable attention has been
dedicated to concerns
about rising food prices. Warnings about food shortages in the
developing
world are coupled with concerns about more expensive groceries
at home.
Biofuels are often singled out as the reason.

But the fact is, demand for oil is outstripping the supply of
oil. Record
oil prices are what is inflating food prices worldwide,
including those
crops that have no relation to biofuels, such as fish and rice.
Indeed, many argue that the failure of the OPEC cartel to boost
production
is a strategy aimed at keeping prices high - a move that
amounts to a
$500-billion tax on North America this year alone, and which
contributes
directly to the impoverishment and economic fragility of many
developing
nations.

As we read about food shortages in the developing world, it is
important to
note that while Saudi Arabia reaps hundreds of billions in
profit this year,
Kenya will earn roughly $3 billion from exports. If the $1.3
trillion taxed
from the world economy by OPEC countries in 2008 was instead
re-distributed
to those nations in need, it would lift the entire Third World
out of
poverty. Haiti for example, has a huge untapped biofuel source
in its sugar
cane crops.

The great benefit of biofuels - such as grain ethanol,
cellulosic ethanol
and biodiesel -- is that they can help fill the supply gap and
create needed
competition with OPEC. Indeed biofuels offer the only
available, accessible
and affordable alternative to fossil fuels.

In contrast to much of the recent discussion, let us review the
facts on
biofuels and sustainability.

Sustainable prices: crude oil that trades north of $100 per
barrel may be a
boon to the ranks of big oil and OPEC countries, but it is no
gift to
ordinary families who are facing some of the highest prices
ever seen at the
pump. It is also the overwhelming contributor to higher food
prices because
of the costs of shipping product to market, and overall
inflation is set to
rise due to the passed-on costs of higher fuel prices from
businesses of all
kind.

Biofuels offer the prospect of real competition and price
moderation.
Indeed, according to one report in the Wall Street Journal, if
not for
biofuels, crude oil would be trading 15 per cent higher and
gasoline would
be as much as 25 per cent more expensive. A healthy supply of
alternative
energy sources will give us the power to combat gasoline price
spikes.

A sustainable environment: Ethanol and biodiesel burn cleaner
than fossil
fuels, resulting in the release of fewer pollutants and
emissions. The
federal government has mandated that 5 per cent of our fuel
supply be
comprised of ethanol and 2 per cent biodiesel - which according
to Natural
Resources Canada, will result in the reduction of greenhouse
gas emissions
(GHGs) equal to removing one million cars from Canadian roads.
Second-generation biofuels made from materials like
switchgrass, straw,
algae, even yard and lumber waste will cut GHGs even more.
Finally, all
biofuels are biodegradable. Unlike oil, they will not harm soil
or
groundwater in the event of a spill or accident.
Sustainable economics: Biofuels offer new markets and better
incomes for
farmers, many of whom have had to struggle for years with
production costs
that outpace sale prices. This is true of Canada and the United
States, but
excitingly, it is also true of the developing world. In North
America we are
only utilizing 30 per cent of the agriculture land available -
and it's 15
per cent in the developing world.

Far from creating food shortages, biofuels represent the best
opportunity
for sustainable economic prospects in Africa, Latin America and
impoverished
Asia if they are truly able to be part of and benefit from a
growing
biofuels market.

When one examines all the facts, all the forces and all the
potential, the
real picture of biofuels begins to emerge: they are the most
environmentally
friendly and economically viable alternative to gasoline today.

Gordon Quaiattini is president of the Canadian Renewable Fuels
Association

Gordon Quaiattini is president of the Canadian Renewable Fuels Association