Advanced BioFuels USA

(Union for the Promotion of Oil and Protein Plants (UFOP)/Biobased Diesel Daily) The Greenhouse Gas (GHG) Quota Act is the most important driver for decarbonization of the transport sector with the increasing GHG-reduction commitments until 2030. In view of the war in Ukraine, the ambitious target of a GHG quota of 25 percent in 2030 is also a driver to accelerate the orientation of energy-supply security toward diverse domestic and European resources, emphasized the Union for the Promotion of Oil and Protein Plants (UFOP) against the background of a sweeping “tank or plate” discussion in the German government.

The UFOP criticizes that the federal ministers for development and for the environment, Schulze and Lemke, in their call for an exclusion of biofuels from cultivated biomass such as rapeseed, did not point out that the use of these biofuels is already capped by law. This gives the public the impression of unlimited use of arable land for this purpose. In fact, the so-called cap of 4.4 percent of final energy consumption limits the volume potential in Germany. This means that the national limit is far below the limit of 7 percent that is possible under European regulations, UFOP emphasized.

The current “tank or plate” discussion does not take into account the pioneering role of biofuels in sustainability certification, which must also be implemented in third countries, nor their contribution to security of supply. In Germany, a total of 4.5 million metric tons of biofuels were used in 2020 instead of fossil imports. The UFOP supports the oil embargo against Russia, but it is possible that agriculture will also be threatened by supply bottlenecks this fall. Those who exclude biofuel options would also have to present a proposal for compensation. The UFOP also criticizes the fact that the extensification strategy is being adhered to despite the short supply on agricultural markets. The UFOP criticizes double standards that are obviously being applied to the need for food supply.

 

 

The association points out that with the elimination of palm oil from liquid fuels from 2023, the raw material base in this country is shifting towards crops that are mainly used as a source of protein for animal feed and will also be used in human nutrition in the future. Rapeseed meal is not only a domestic protein source for dairy cattle feed regarding the price-performance ratio but will also be an important protein resource for human nutrition in the future. The current project plans are promising and trendsetting in this sense. However, this option is also interesting because the added value from the energetic use of rapeseed oil makes cultivation economical for farmers. This example shows once again that the farm-to-fork strategy must take into account the diversity of uses of the cultivated biomass and be thought through to the end in this sense, stressed UFOP.

This must be weighed up when politicians are currently considering the future of biofuels from cultivated biomass. In the UFOP’s view, it is not a question of more biofuels, but of strategically developing the existing and limited potential in terms of efficiency of use and value creation. Hasty decisions are detrimental to agriculture in its transformation process and to climate protection in transport if necessary technologies are not yet available or are considerably more expensive in terms of investment costs, as the figure basically shows.  READ MORE

Guest view: Global hunger fight means no biofuel (Reuters)

Global food commodity prices ease in May, but 29% above year ago (Agri-Pulse)

Gas prices surge 25 cents in a week, hitting a new record (CNN Business; includes VIDEO)

How Biofuel May Be Worsening The Food Crisis (Tasting Table)

It’s Time to Get Biofuels Out of Your Gas Tank — Blending mandates were supposed to help tackle emissions. In practice, plant-derived alternatives are starting to become an impediment.  (Bloomberg)

Green Alliance: UK’s biofuel consumption making global food crisis worse (edie)

Halt use of biofuels to ease food crisis, says green group: RePlanet calls on EU to ditch organic targets and for governments to lift bans on genetically modified crops (The Guardian)

Excerpt fromAgri-Pulse: A measure of global food commodity prices fell slightly for the second month in a row in May, despite the continued surge in wheat markets as the war in Ukraine dragged on.

The UN Food and Agriculture Organization’s monthly food price index remains 29% above May 2021 at 157.4 points after declining 0.6% last month, largely due to lower dairy and sugar prices. It was the second month in a row that the index has declined since hitting a record 159.3 points in March.

FAO’s index for grain prices rose 2.2% in May as wheat prices increased for the fourth consecutive month, rising 5.6% in May. Wheat prices are 56% higher than a year ago and only 11% below the record high in March 2008.

“The steep increase in wheat prices was in response to an export ban announced by India amidst concerns over crop conditions in several leading exporting countries, as well as reduced production prospects in Ukraine because of the war,” FAO said.

Prices for corn and other coarse grains were down 2.1% in May but still 18.1% higher than in May 2021.

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FAO’s measure of dairy prices fell 3.5% in May, the first decline in that index after eight consecutive monthly increases. Dairy prices were still 16.9% higher than in May 2021.

The index for vegetable oils declined 3.5% in May due to lower prices for palm, sunflower, soy and rapeseed (canola) oils.

“Apart from demand rationing, the removal of Indonesia’s short-lived export ban on palm oil exerted additional downward pressure on prices, although a further price drop was contained by lingering uncertainties over the country’s export prospects,” FAO said.  READ MORE