23/2/06 (Business Times) - THE use of rapeseed oil as a source of biofuel, as practised in Europe, is not a sustainable solution, Roundtable on Sustainable Palm Oil (RSPO) honorary member M.R. Chandran says.

He said it is time to focus on other renewable materials with a higher contribution, lower negative impact and higher productivity per unit area, like palm oil.

"No doubt alternatives with a less direct competition with foodstuff (such as non-edible oils like jatropha, castor etc) will have a better economic chance.

"Other sources for renewable energy like the so-called second generation products (i.e. pulp, residue, waste etc) would provide substantial benefits compared to vegetable oils.

"Ethanol from sugar cane or cellulose feedstock show a much higher net energy contribution and a better greenhouse reduction effect than, for example, rapeseed oil," Chandran said in a statement.

The European Union (EU) wants 5.75 per cent of road transport fuel to come from renewable sources by year 2010. In practice, this means substituting diesel with biodiesel and petrol with bio- ethanol.

In EU, generous subsidy schemes and a number of support measures are put in place like tax exemptions, support to research and development and the promotion of biofuels in public transportation, hence the rapid growth in biodiesel production.

But concerns are now being raised about the effectiveness of these subsidy or de-taxation measures.

There are two main worries, Chandran said. One is the shortage of available land for biofuel production. In order to meet the EU target, nearly 20 per cent of all agricultural land in Europe would have to be used to grow rape seed or sugar beet.

The second worry is of the cost involved. Under the current subsidy scheme, total cost to EU citizens is over Euro5 billion (Euro1 = RM4.43) a year by 2010.

"It is obvious that biofuel production will compete with agricultural feedstock cultivation for food purposes. As a consequence, prices of both edible oils and derived food products may rise if supply does not accelerate.

"When taking all the economic, ecological and social aspects into account, I believe that rapeseed oil biodiesel is not a sustainable solution," Chandran said.

He said more balanced and lasting results require more balanced incentives by governments and a longer term perspective from the industry.

"Both should be targeted on second-generation products instead of burning high quality food ingredients," he said.



Source: Business Times; Kuala Lumpur