Both the U.S. EPA and California’s Air Resources Board are currently considering how and whether to incorporate the indirect effects of U.S. biofuels production on carbon emissions from land use change in other parts of the world. The Renewable Fuel Standard passed by Congress in December 2007 requires inclusion of “significant emissions from land use changes” as part of the life cycle analysis of carbon emissions from biofuels. The Low Carbon Fuel Standard adopted by California also requires a life cycle analysis for fuels.

The issue of “indirect land use change” emissions was introduced early this year with the publication of papers in SciencExpress (see earlier post). Debate since the publication of those papers has focused on the lack of data to accompany the models and the assumptions inherent in the models.

For instance, Searchinger and Fargione assumed that other countries would have to develop new cropland, primarily from sensitive ecosystems such as the rainforest, to replace the crops being used for biofuels in the United States. In a recent working paper, Roman Keeney and Thomas Hertel of Purdue University look at the possibility that increased crop yields would replace some of the crops being used for biofuels in the United States. They conclude that up to 30 percent of demand could be met through yield increases. Further, they show that Canada and Brazil – as the major grain trading partners for the United States – would be the countries to look at for any indirect land use change caused by U.S. biofuel production.

Keeney and Hertel do not examine the possibility that yield increases in Canada and Brazil would also help meet demand. However, researchers at the University of Wisconsin do examine that possibility. Still, according to these researchers, the shift of land use does increase emissions.

A group of researchers recently wrote to the California Air Resources Board, saying that until the uncertainties in the “indirect land use change” models had been thoroughly studies, they should not be calculated in the life cycle analysis required for biofuel producers in California. Other researchers responded that the effect certainly exists, so some calculation of it must be included under the law. They say that most calculations estimate that indirect land use change will double the greenhouse gas emissions attributable to biofuels.

The debate should not be whether land use change and cutting of rain forests releases carbon — it does. It should be whether indirect land use change can be reliably attributed to individual biofuel producers. Bruce Dale of Michigan State University put it this way during a field hearing of the Senate Agriculture Committee in Omaha, Neb., on Aug. 18:

It seems to me that making U.S. farmers responsible for land use decisions made by others is both unfair and a terrible precedent. Are we going to make every U.S. industry responsible for greenhouse gas generation by its competitors around the world?”

In other words, there are many factors that lead to deforestation in Brazil. As Iowa State University professors Eugene Takle and Don Hofstrand put it, “The conversion of native ecosystems to agricultural production started well before the emergence of the biofuels demand.”

By Carlos Caminada

June 20 (Bloomberg) -- The U.S., Brazil and the European Union are accelerating efforts to create global standards for ethanol and make the alternative fuel an internationally traded commodity, boosting its use, an American official said.

Government and industry leaders discussing the plan may finish standardizing methods for analyzing ethanol properties such as water and energy content by December, four years ahead of schedule, the U.S. State Department's Gregory Manuel said. Next, the group will begin to set content standards, he said.

The U.S., Brazil and EU have agreed to fast-track the process,'' Manuel, Secretary of State Condoleezza Rice's special adviser for alternative energy, said in an interview in Sao Paulo yesterday. ``What we've achieved so far could have taken several years and we did it in several months.''

The standards will let buyers and sellers worldwide trade ethanol like gasoline, oil, copper, sugar and other commodities, boosting the fuel's use, Manuel said. Currently, a buyer in Sweden has to send engineers to mills in Brazil to test the fuel before buying it to sell to drivers of flex-fuel Saabs and Volvos in the Nordic country, he said.

We can start seeing a world where we'll begin to really replace gasoline with ethanol,'' Manuel said. Trade is a function of commoditization.''

Standards also will help U.S. efforts to boost the ethanol content in fuel for use in engines that burn regular gasoline, said Douglas Faulkner, the Department of Agriculture's deputy undersecretary of rural development. The Environmental Protection Agency is studying the effect of increasing the current 10-percent limit for ethanol in gas sold in the U.S., Faulkner said in the same interview.

Industry-Government Effort

The effort to set global ethanol standards involves about 600 laboratories in the U.S., Brazil and Europe, as well as officials from governments, ethanol makers and car-engine manufacturers. After agreeing on the standards, each government will have to codify them in regulations, Manuel said.

There are 147 ethanol distilleries in the U.S., the world's biggest producer, consumer and importer of the fuel, according to the Renewable Fuels Association in Washington. The mills, mostly using corn, have the capacity to produce more than 8.5 billion gallons (32.2 billion liters) of the fuel a year. Another 55 plants are being built and six are being expanded, to add 5 billion gallons of capacity, the association said May 30.

Ethanol shipments from Brazil, the biggest exporter, may rise to as much as 4.5 billion liters (1.19 billion liters) this year, from 3.2 billion in 2007, boosted by demand from the U.S. and Europe, Marcos Jank, president of industry group Unica, said last month. Brazil is the world's second-biggest producer and consumer of the fuel.

Rising Imports

The EU imported a record 1 billion liters of ethanol last year, almost all from Brazil, the European Bioethanol Fuel Association said on April 7.

President George W. Bush has set a target of increasing the use of renewable fuels in the U.S. to 36 billion gallons by 2022, from 9 billion gallons required this year.

To contact the reporter on this story: Carlos Caminada in Sao Paulo at at ccaminada1@bloomberg.net

Virgin Atlantic Becomes World's First Airline to Fly a Plane on Biofuel Sunday February 24, 5:30 am ET - Virgin Atlantic 747 flies from London Heathrow using biofuel - Flight partners are Boeing, GE Aviation and Imperium Renewables - Biofuel contains mix of coconut and babassu oil - Pioneering flight marks breakthrough in biofuel development

-- Virgin Atlantic, one of the world's leading long-haul airlines, will today fly one of its Boeing 747 jumbo jets on biofuel from London Heathrow to Amsterdam -- becoming the first airline in the world to fly on renewable fuel. Together with partners Boeing, GE Aviation and Imperium Renewables, Virgin Atlantic is helping to pioneer renewable fuel sources for aviation.

The Virgin Atlantic aircraft, flight number VS811P and registration GV-WOW, will fly using a biofuel composed of babassu oil and coconut oil. These oils are environmentally and socially sustainable. They can both be found in everyday cosmetic products, such as lip balm and shaving cream, and do not compete with staple food sources. In addition, the babassu nuts and coconuts were harvested from existing, mature plantations. No modifications were made to either the aircraft or its engines to enable the flight to take place.

The demonstration flight, piloted by Captain Geoff Andreasen, Virgin Atlantic's Chief Boeing pilot, is due to take off from London Heathrow at 11.30am and arrive in Amsterdam at 13.30 local time. During the flight, technical advisors on board will be taking readings and recording flight data for later analysis.

Commenting on the first ever airline flight using biofuel, Sir Richard Branson, the President of Virgin Atlantic, said:

  "Today marks a biofuel breakthrough for the whole airline industry. Virgin Atlantic, and its partners, are proving that you can find an alternative to traditional jet fuel and fly a plane on new technology, such as sustainable biofuel. This pioneering flight will enable those of us who are serious about reducing our carbon emissions to go on   developing the fuels of the future, fuels which will power our aircraft in the years ahead through sustainable next-generation oils, such as algae."

In preparation for today's flight, Boeing, GE Aviation and Imperium conducted extensive laboratory and static-engine testing on the ground to evaluate the energy and performance properties of the biofuel used in the flight. The Virgin Atlantic flight is the first step in a broader industry- wide initiative to commercialise alternative fuel sources for aviation and Virgin Atlantic will be sharing the results with those also seeking to cut their carbon emissions in the rest of the industry.

Marlin Dailey, Boeing Commercial Airplane's Vice-President of Sales, Europe, Russia and Central Asia, added:

  "Today's flight is a continuation of a journey we embarked on last year
  with Sir Richard and Virgin Atlantic to identify more sustainable forms
  of fuel for the aviation industry. Change begins with a vision.
  Following that, innovation and technologies are essential to proving the
  feasibility of renewable, alternative fuel sources for an
  environmentally progressive future of aviation. We commend Virgin
  Atlantic for their efforts to move that vision forward for the
  betterment of all of us."

Dr. Tim Held, Manager of Advanced Combustion Engineering at GE Aviation, for GE Aviation, commented:

  "The partnership between Virgin Atlantic, Boeing, GE and Imperium
  Renewables has advanced our understanding of biofuels for aviation
  applications. Prior to this historic flight, the engine ground testing
  conducted by GE and CFM International required no hardware modifications
  to the engine, and the fuels performed as expected. The team entered
  today's historic flight demonstration with great confidence."


John Plaza, President and CEO for Imperium Renewables commented:

  "We're extremely proud to have produced the fuel used today for this
  historic flight. A successful flight will not only validate the use of
  biofuels in aviation, but also provide a glimpse into the future of all
  fuels. Today's biojet fuel offers higher-quality standards and a more
  sustainable fuel than traditional jet fuel. Additionally it illustrates
  the potential for "second generation" biojet fuel to be even more viable
  in the coming years. We're committed to the aviation community and to
  innovating new and environmentally-friendly alternative fuels."

The results of today's biofuel flight will be analysed by Virgin Atlantic, Boeing, GE Aviation and Imperium Renewables and used for the research and development of next-generation biofuels that can help reduce carbon emissions. Boeing will use the findings from this flight in another demonstration flight later this year.

Babassu oil comes from the nuts of the babassu tree, which is native to Brazil. The fruit of the babassu is used in products such as drugs and cosmetics, and its leaves are used to make roofs and paper, which in turn is used to create folders, bags and soap boxes. Coconut oil is used for a variety of applications including oil for biodiesel. Most coconut plantations are mature and do not contribute to deforestation.

Australia's first export shipment of bio diesel has been loaded on a freighter bound for Asia and the US, with former Liberal leader and company director John Hewson describing the green alternative as the way of the future.

The maiden shipment of 8.8 million litres of bio diesel, made from palm oil by Natural Fuels Australia, will leave from Darwin harbour.

"Alternative fuels are now a focus of governments all around the world," Chairman of Natural Fuel Ltd Dr Hewson said on Thursday at Darwin East Arm Wharf.

"This is the first export from Australia, but it's a potential export industry for Australia."

Dr Hewson also criticised the prime minister's environmental track record.

"I quite often hear the government, Mr Howard, saying we don't want to rush into adjusting to climate change because it might cost us jobs...

"I don't agree with that at all. I just think the potential in terms of new technologies and the development of new industries is phenomenal."

Dr Hewson said a lot of "scaremongering" went on which "does carry some currency with people who are easily frightened".

But he said green energy was inevitable as people became increasingly concerned by the environment, while the cost of traditional fuel continues to rise.

"Biofuels have got a part to play ... It's an idea whose time has come," he told reporters.

Natural Fuels Australia is a 50-50 joint venture between Natural Fuel Ltd and investment bank Babcock & Brown.

Dr Hewson said the company was expected to become one of the world's leading bio diesel companies.

"Governments are grappling in almost every country as to how to best respond to climate change," he said.

NT Chief Minister Clare Martin said the shipment was a "vote of confidence" in the territory's future.

"We've created the right conditions for business to invest in the Territory," she said.

"It's the first of what is expected to become a regular event as the production capacity is increased at the Darwin facility."

The bio diesel plant is expected to create about 100 jobs directly and indirectly - and generate millions of dollars for the local economy.

Australia's first export shipment of bio diesel has been loaded on a freighter bound for Asia and the US, with former Liberal leader and company director John Hewson describing the green alternative as the way of the future.

The maiden shipment of 8.8 million litres of bio diesel, made from palm oil by Natural Fuels Australia, will leave from Darwin harbour.

"Alternative fuels are now a focus of governments all around the world," Chairman of Natural Fuel Ltd Dr Hewson said on Thursday at Darwin East Arm Wharf.

"This is the first export from Australia, but it's a potential export industry for Australia."

Dr Hewson also criticised the prime minister's environmental track record.

"I quite often hear the government, Mr Howard, saying we don't want to rush into adjusting to climate change because it might cost us jobs...

"I don't agree with that at all. I just think the potential in terms of new technologies and the development of new industries is phenomenal."

Dr Hewson said a lot of "scaremongering" went on which "does carry some currency with people who are easily frightened".

But he said green energy was inevitable as people became increasingly concerned by the environment, while the cost of traditional fuel continues to rise.

"Biofuels have got a part to play ... It's an idea whose time has come," he told reporters.

Natural Fuels Australia is a 50-50 joint venture between Natural Fuel Ltd and investment bank Babcock & Brown.

Dr Hewson said the company was expected to become one of the world's leading bio diesel companies.

"Governments are grappling in almost every country as to how to best respond to climate change," he said.

NT Chief Minister Clare Martin said the shipment was a "vote of confidence" in the territory's future.

"We've created the right conditions for business to invest in the Territory," she said.

"It's the first of what is expected to become a regular event as the production capacity is increased at the Darwin facility."

The bio diesel plant is expected to create about 100 jobs directly and indirectly - and generate millions of dollars for the local economy.