Biofuels Can Help Reduce Current Account Deficit
by Syed Akhtar Ali (The Express Tribune) Pakistan’s current account deficit has created many problems for the economy. Major imports are of the oil sector. There is a misplaced notion that nothing can be done for reducing these imports.
Biofuels based on local agro-waste are a viable option and competitive route. Bio-refining technology has come of age. Not only can biofuels replace imports or make equivalent exports, these can also generate employment, increase farm income and revitalise rural life.
Utilising agro-waste would not compete with food supply – a risk that has often been put forth. Also, electric vehicles can have a significant impact on the demand side. A strong case has been made in the following to create a market share of 30% for bio-refining to make an impact of $4-5 billion on improving the trade balance.
Pakistan has a population of more than 200 million and has a large agricultural base. There is a great demand for all sorts of energy including transport fuels. An estimated $12-18 billion of oil imports are there. Furnace oil imports have stopped but they have been replaced by LNG.
On the other hand, there is a large variety of raw material, agro-waste and municipal solid waste (MSW), which are available and can be commercially utilised to replace these imports, at least partly.
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The sugar industry produces many products, which can be converted into fuel and energy. Already, ethanol is being produced, whose production can be increased by 50% by entering into cellulosic processing, without any need for further land or sugarcane.
In Pakistan, agro-waste – wheat, maize, cotton, rice husk, straw and stalk – alone is to the tune of 135 million tons per annum (MTPA). Assuming 50% collection and 20% conversion efficiency, 13 MTPA of biofuels can be produced. READ MORE