Ethanol Industry Eyes Transformation to Kill ‘Food vs Fuel’ Argument

November 23, 2022

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by Sarantis Michalopoulos (EURACTIV.com) Although Hungary’s agriculture minister has recently hailed the ethanol industry’s fresh investments in animal feed and foodstuffs in addition to biofuel production, the European Commission appears to remain unconvinced, still invoking the “food versus fuel” argument.

Speaking at an event in Dunaföldvár, Agriculture Minister István Nagy backed the role of biorefineries in producing biofuel, animal feed, and human food at the same time and in a sustainable manner.

“For every kilo of biofuel produced, another kilo of protein-rich human food or animal feed is also produced,” Nagy said.

“Instead of selling grains only, biorefineries produce and market high-value-added products, such as bioethanol, isoglucose, high-protein feed, corn oil, starches, fiber,” he added.

Environmental NGOs have long argued that relying on crop-based biofuels leads to a hike in food prices, considering that crops are being used to fill cars’ tanks rather than feed people.

The industry, for its part, says crop-based biofuels such as ethanol are crucial in decarbonising transport, considering that the roll-out of electric cars will take many years due to high costs and relatively poor infrastructure.

Moreover, the ethanol industry says ethanol’s co-products such as animal feed and now, investments in human food, are bringing additional value to the market.

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Dunaföldvár is in Hungary’s countryside and hosts one of the largest ethanol biorefineries in Europe, the Pannonia Bio, which is considered crucial for the local community’s growth.

Its founder Mark Turley told EURACTIV that the industry is being transformed, eyeing a multidimensional role in addition to biofuel production.

“In two to three years’ time we will be known to be a food and ingredients company and bioethanol will be a secondary product,” he said.

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An EU official told EURACTIV that in general, the Commission considers that the contribution of biofuels produced from food and feed crops towards decarbonisation is limited and their use should be minimised.

“The Renewable Energy Directive includes a cap for food-based biofuels to ensure that the pressure on land use is limited. The Directive includes limits for the counting of such fuels against renewables targets. In particular, for conventional biofuels identified as having high indirect land use impacts (high-ILUC), there is a phase-out obligation by 2030,” the EU official added.

Indirect land use change (ILUC) is a term used to assess the risk of contributing to deforestation abroad and mainly refers to palm oil, which is estimated to have a 45% risk of high ILUC.

Asked to comment on the industry’s transformation, the EU official commented: “The aim of the directive is not to dictate the behaviour of businesses but to put in place a framework that is in line with our Green Deal aims and provides certainty for the industry.”

However, stakeholders – including farmers – often criticise the European Commission’s constantly changing policy on biofuels, saying it has created uncertainty among investors and undermined the market as a whole.

The industry also points to a statement made in 2016 by the then EU official Marie Donnelly, who admitted that the Commission’s decision to phase out conventional biofuels was based on public opinion and not only on science. READ MORE

Commission admits policing biofuels according to public opinion (EurActiv)

Veggie burgers produced by ethanol industry? (EurActiv)

NGO, biofuel industry clash over vegan food from ethanol (EurActiv)

Excerpt from EurActiv: Non-governmental organisation Transport and Environment (T&E) and the ethanol industry have clashed over the latter’s increasing interest in producing vegan food in addition to biofuel, which aims to end the long-standing “food versus fuel” argument.

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But T&E also opposes the production of vegan food by the ethanol industry.

“Vegans have survived for decades without extracted wheat protein. Beans, peas and lentils are far more efficient protein sources. Animal feed doesn’t justify the production of biofuels either,” Maik Marahrens from the T&E told EURACTIV.

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Eric Sievers, investments director of ClonBio, responded, saying beans, peas and lentils are “great”, but it is “factually incorrect” to say that they are efficient crops either generally or for protein.

“Exactly the opposite is true. These minor crops have low yields and offer little in the way of bioeconomy beyond protein, while Europe’s main cereal and oilseed crops result in more efficient use of land and offer food, feed, fibre, energy and biomaterial decarbonisation products based on their protein, starch, fibre, fat and beta-glucans,” Sievers told EURACTIV.

As for vegans, he said, 95% of vegetable proteins in Europe are consumed by non-vegans.

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At the EU level, the European Commission has decided to cap crop-based biofuels by 2030 and that their contribution should therefore be limited at 7%.

The Commission insists that transport decarbonisation cannot be based on fuels competing crops and driving prices upwards.

The ethanol industry says the “food versus fuel” argument cannot be justified scientifically and often point to a public statement made in 2016 by a former EU official who admitted that the EU executive’s decisions on biofuels were based on public opinion and not necessarily on science.

The industry also has farmers on its side, who have seen a growing market outside the Common Agricultural Policy (CAP) in recent years.

Speaking to EURACTIV on the sidelines of the Farmers’ Day event in Dunafö ldvár last month, Vadasné Velker Magdolna, a Hungarian farmer, said the biofuel industry stabilises the market.

“A significant market share of maise production in Hungary is taken up by the bioprocessors, and it certainly represents a significant market share among the possible uses – as animal feed, bioprocessing, and human consumption,” she said.

“So, for us as producers, it really gives us a sense of stability and security that these operations are up and running,” she added. READ MORE