Biofuels Can Help Reduce Current Account Deficit

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July 11, 2019

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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 Furnace oil imports have stopped but they have been replaced by LNG.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

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