Clean Energy Congress, Buenos Aires, Argentina 2011

1. Clean Energy Congress, Buenos Aires, Argentina 2011

2. The Global Renewable Fuels Alliance is an international federation representing over 65% of the world's renewable fuels production from 44 countries. • Through the development of new technology and best practices, our members are committed to producing renewable fuels with the smallest possible footprint. • The GRFA is committed to promoting the expanded use of renewable fuels throughout the world through the advocacy of sound public policy and responsible research.

3. Global Biofuels • What’s Driving Growth? • Biofuels Vs. Food – Understanding the Issue • The Future

6. Biofuels Mandated Markets United States RFS2 – 36 billion gallons Includes carve out for advanced biofuels Corn ethanol capped at 15 b gallons Europe Renewable Energy Directive (RED) 20% renewable energy by 2020 Includes 10% renewables in transportation Brazil Regulates blend rate (20-25%) At least 20 others Countries are using policies to promote biofuels

7. Oil Prices on the Rise

8. 11.

9. Who is Driving Demand? International Energy Agency (IEA) projected in its 2008 World Energy Outlook that emerging markets’ energy demand will soar from through the year 2030. Among the developing countries India and China are estimated to be big consumers of energy as the graph shows.

10. Who is Driving Demand? Non-OECD account for 93% of the global increase in demand between 2007 and 2030 and I driven largely by China and India.

12. Global Oil Production to Reach 96 mb/day by 2035 Source: International Energy Agency

13. Global Energy Supply Outlook The future see’s more oil being produced from fewer suppliers. Production rises most in Saudi Arabia and Iraq pushing OPEC’s market share from 41% to 52% by 2035. A level not seen since the 1973-1974 oil shock.

14. Biofuels vs. Food February 2011 - The UN FAO food price index hit an all time high The Facts: • Only 3.5% of global grain production is used to produce renewable fuels such as ethanol. • Less than 1% of global arable land is used to produce biofuels (IEA 2008)

15. Biofuelsvs. Food Finally, in 2010, the World Bank concluded: “the effect of biofuels on food prices has not been as large as originally thought….” and “raises serious doubts about claims that biofuels account for a big shift in global demand.” US Secretary of Agriculture 2011 concluded: “During the great run-up in food and commodity prices in 2007 and 2008, biofuel production played only a minor role — accounting for about 4 percent of the total 45 percent increase in U.S. food price inflation.” There is only one common input into all commodity prices…

16. The Real Cause of Food Price Spikes Biofuels are often linked to driving up the cost of food. As this graph illustrates Rising energy prices are responsible for increases in food prices – not demand for renewable fuels. There is a proven direct correlation between oil prices and food prices. As oil prices rise, so does the price of food.

17. Biofuelsvs. FoodIs there enough land to produce both biofuels and food? The Facts: • The Ukraine has 50 mhecatres of idle farm land that could produce Food and fuel for EU • Sub-Saharan Africa has more than 1 billion hectares of land with potential for rain-fed crop production (less than 25% is being used) • Corn yields/acre have increased over 60% since 1980 alone • The land needed to grow a bushel of corn has declined by 37% in 20 years • A bushel of soybeans can be produced today with 26% less land than 20 years ago.

18. Biofuels vs. Food

19. Can We Produce Food and Fuel?

20. Can We Produce Food and Fuel? Simple calculations would show that on average that 30% of the agricultural land in the poorest countries in Africa is arable. Figures improve a similar poor country outside Africa is examined. According to the UNFAO 60% of Bangladesh’s land is arable but 40 million people suffer from food insecurity. Compared with Canada one of the richest countries in in the world where only 5% of Canada’s land is arable.

21. The Future – Advanced Biofuels • Next generation biofuels will see partial commercialization in 2011 • Several pathways are being pursued simultaneously • Gasification • Enzymatic Hydrolosis • Specialty “catalytic” drop in fuels • Algae biofuels • Biobutanol • Designer hydrocarbons

22. Advanced Biofuels in the Military An F-22 Raptor successfully performed supercruise flight at Edwards Air Force Base on March 18 fuelled by a 50/50 fuel blend of conventional petroleum-based JP-8 and biofuel derived from camelina, a weed-like plant not used for food. The flight was the finale in a week long series of ground and flight test events conducted by the 411th Flight Test Squadron for the Raptor using the biofuel blend.

23. Advanced Biofuels in Transportation Commercial airlines around the world are continuing to look to advanced biofuels to fill their future fueling needs. Qantas confirmed that it is in advanced talks with an unamed algae biofuel producer with strong ties to Australia. It is expected to result in a letter of intent for an offtake agreement for algae jet fuel, with the potential that Qantas may take a financial stake in the venture. In April 2011, Lufthansa is to begin a six-month trial with an Airbus A321 on scheduled commercial flights between Hamburg and Frankfurt-Hamburg. One of the aircraft’s engines will use a 50-50 mix of biofuel and traditional kerosene. The primary purpose of the project is to conduct studies of the effect of biofuel on enginelife and maintenance. During the six months trial, Lufthansa will save around 1,500 tonnes of CO2 emissions.

24. Household Food Consumption’s GHG Emissions(Food Miles)

25. How Much Biofuel in the Future?

26. Biofuels Can Reduce GHGs Carbon Dioxide Emissions of Various Fuel Sources: Natural Resources Defense Council

27. THANK YOU QUESTIONS?