Biofuels Scenario in Asia Assessed

A report from the Philippine Ethanol Alliance gives an update on the biofuels scenario in Asia, based on the following factors: (1) major Asian biofuel crops/feedstocks, (2) Asian biofuels market, and (3) challenges in the emerging Asian biofuels sector. Some of the report highlights are:

(1) Asian Biofuel Crops/Feedstocks: ethanol, sugarcane juice and molasses are mentioned as the major saccharine raw materials (India, Philippines), while cassava is an established starchy material in Thailand. For biodiesel, palm oil is the major feedstock in Indonesia and Malaysia, while coconut is used in the Philippines. Alternative biofuel crops which veer away from the “food or fuel” dilemma are sweet sorghum (in place of sugarcane) and Jatropha (in place of coconut).

(2) Biofuels market in Asia: The report observes that the Asian biofuels market is generally driven by government support policy to address concerns in energy security (fluctuating fossil fuels market), environment (better air quality), and support for agriculture (markets for surplus crops and by-products). Government policy is usually in the form of national mandates to blend biofuels in gasoline. (the proportion varies with country).

(3) Challenges in the emerging Asian biofuels sector: Three major considerations were identified: (a) policy sustainability to address needs for infrastructure support, i.e., biofuels facilities, engines (b) supply reliability to address concerns of “food or fuel” dilemma, dangers of monoculture crop systems, etc and (c) economics for reducing the cost of biofuels.