Biofuels Take up Little Space

Business News/Analysis, Feedstock, Feedstocks, Field/Orchard/Plantation Crops/Residues, International, R & D Focus, Sustainability

January 8, 2020

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(Union for the Promotion of Oil and Protein Plants (UFOP)) Although the share of the area for biofuels production increased by 1 percentage point in 2018, it is still very small. Cultivated plants such as cereals, oilseeds, protein, sugar and fiber plants, fruit, vegetables, nuts, etc. are grown on 1.56 billion hectares worldwide. Most of these products go into food, only around 5% of the area was used for biofuel production in 2018.

It is very clear that biofuel production is mostly located where there are already surplus raw materials. Without biofuels, they would have to be placed on the world market, which would put a strain on the already low raw material prices. The use of biofuels reduces the excess production, creates additional value and reduces the need for foreign exchange for the import of crude oil or fossil fuels. This problem particularly affects the poorer countries. Another advantage is the simultaneous accumulation of high-quality protein feed during the production of biofuels. Their need is constantly increasing. The proportion and quality of protein feed have a significant impact on the prices of raw materials. You also determine the extent of the acreage. Biofuels are by no means the price drivers on the raw materials markets. If necessary, the raw materials that were grown for the production of biofuels are primarily available for food supply. In the case of politically promoted extensification, this option to “buffer” food demand does not apply.

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