The Union Cabinet on September 11 approved the National Policy for Bio-fuels. The Policy proposes  achieving a 20 per cent blending of bio-diesel and bio-ethanol by 2017. The Cabinet also approved the setting up of a National Bio-fuel Coordination Committee under chairmanship of the Prime Minister and a Bio-fuel Steering Committee under chairmanship of  the Cabinet secretary for implementation of the biofuel Policy.

The policy suggests removal of taxes and duties on bio-diesel by bringing them under the purview of “declared goods”. This would ensure unrestricted movement across states. The policy, however,  raises concerns regarding land use, food security, rising food prices.

Tesco, Britain’s biggest supermarket, that has been selling biofuels in some of its petrol stations is reviewing its policy due to the impact of biofuels on food prices and the environment. Whether use of biofuels affects food security and environment is being debated worldwide. The FAO also reported 83% rise in food prices in the last three years mainly due to use of biofuels. Beside Scientific studies have shown that production of biofuel removes the carbon-sinking capacity of the vegetation they replace, releases more carbon and accelerates deforestation and habitat loss. Other firms like National Express, Asda, DHL, are also raising similar concerns.

 A team of researchers have genetically engineered a bacterium which grows at high temperatures, to produce cellulosic ethanol. The new GE bacterium, makes ethanol as the only product of its fermentation.  Since cellulosic ethanol is produced from wood and non-edible parts of a plant, it has several advantages over ethanol  produced from corn. Cellulosic biomass is available on a large scale, and it does not include food crops. Besides costly cellulose enzymes used in ethanol production can be augmented with the less expensive, new GE bacteria.

Researchers in UK have developed a new strain of bacteria that can break down straw and agricultural plant waste, garden trimmings and cardboard, wood chippings and other waste material to convert them into bioethanol. This new strain of bacteria allows ethanol to be produced much more efficiently and cheaply than conventional ethanol production. Scientists estimate that converting about 7 million tons of surplus straw, available in the UK every year, into ethanol could replace 10% of the petrol used in the country. They also state that the method is more sustainable, as it does not use food crops, the use of which is linked to increase in food prices in many countries.  

Scientists call for biofuel policy for sustainability

A new paper in of the journal  Science, calls for a science-based policy that will guide the global biofuels industry towards sustainability. They stressed on identifying unintended and long-term consequences early in the development of alternative fuel strategies that would help in avoiding or at least reducing the negative impacts of the growing biofuel industry on food production and the environment. The paper argued that biofuel manufactured using food crops causes environmental damage, including soil erosion, nitrogen fertilizer pollution, and a decline in biodiversity. Shifting to biofuels crops, such as grasses, shrubs and trees, can help overcome some of these problems and prevent competition with food production. However, if these crops are grown on marginal lands, the land could require heavy inputs of water, nutrients, and energy. Scientists thus concluded that the benefits and the negative consequences of biofuel production need to be carefully weighed.

Oil Seed Rape can help clean up toxic soils

Scientists say that oil seed rape grown for biofuel in Ireland could help clean up contaminated soils. In the past, plants have been successfully used to clean up heavily polluted soils containing heavy metals such as arsenic, copper, zinc and chromium. However, the problem of this method is the amount of time taken to grow successive crops to clean up the soils. Thus, scientists have come up with a solution by which metal resistant bacteria is introduced into the plant providing them with greater protection, and thus boosting their growth. Promoting greater growth, this technology could also enhance biofuel production to a large extent..

FAO calls for urgent review of biofuels policies

In the latest edition of its annual publication, The State of Food and Agriculture (SOFA) 2008, FAO has called for an urgent review of biofuels policy and subsidies in order to preserve the goal of world food security, protect poor farmers, promote broad-based rural development and ensure environmental sustainability. FAO Director-General Jacques Diouf said, "the challenge is to reduce or manage the risks while sharing the opportunities more widely." The report pointed out that addressing world food security, the gravest of the concerns, was the most crucial task. Apart from this, removal of agricultural and biofuel subsidies and trade barriers, supporting poor farmers to gain access to biofuel markets were seen as essential towards promoting the welfare of poor and small farmers. Further, it stressed on the need to direct research towards developing second generation biofuels that hold more promise in terms of reductions in greenhouse gas emissions with less pressure on the natural resource base.

 Renewable JP-8 jet fuel created by EERC

The Energy and Environmental Research Centre (EERC) has created a 100% renewable fuel that meets the JP-8 aviation fuel screening criteria. It stated that fuel samples were created from multiple feed stocks. The feedstock-flexible process can be used to produce combinations of propane, gasoline, jet fuel, and diesel that are identical to petroleum-derived fuels, enabling direct substitution with existing fuels and providing renewable options.

USA to become the largest biodiesel market by 2012

According to a report released by SRI Consulting, USA is set to become the largest biodiesel market in the world, and will consume 19% of the world's biodiesel output by 2012. The report says that there has been a shift in the global biodiesel pattern, with a decline in the European share and an increase in the shares of North America and Asia. . Lead Author Milen Blagoev remarked that the demand for biodiesel is determined by regulation within each individual country.