Abstract:
The future of energy supply for road transport is shadowed by the rising imbalance between future crude oil production and consumption, creating a a volatile and constantly upward trend in the market price. Therefore, prospects of using alternative fuels are getting more and more attention. Great expectations are vested in biofuels as potential replacements for liquid petroleum based fuels.
The main drivers for the introduction of biofuels and other alternatives has often referred to be security of supply, greenhouse gas emissions and conventional air pollutant emission reductions, as well as benefits to the agricultural sector and other provisions for strengthening the employment possibilities.
The use of biofuels and other alternative motor fuels (AMF) has basically three major prerequisites: a) availability of suitable raw material and other feedstock for fuel production; b) infrastructure to support the storage and distribution of the fuel, and c) engines, compatible with the given fuel. Furthermore, the activity must be economically viable and not subject to continuous financial or other form of support, at least in long-term.
Using biomass as primary energy feedstock, we are essentially using the plants ability to capture and store energy from the sunlight. Therefore, the outward circumstances can be more favourable especially in developing countries with warm, sunny climates. For example, the cost of producing ethanol from sugar cane in Brazil is currently very close to the local cost of petrol. The economics in other developing countries, e.g. in India, are also becoming more advantageous. As manufacturing costs continue to decrease with each new conversion facility, the long-term outlook for production of biofuels in the developing world appears promising.
Worldwide experience shows that an overall supportive policy framework is necessary to create a market for biofuels. The paper will focus on bio-ethanol and biodiesel as market mature biofuels and show clear examples of biofuel policies from the European Union, the United States, Brazil and India.
Presentation: http://www.cleanairnet.org/baq2006/1757/docs/SW5_1.ppt
Full paper:
biofuel market introduction, non-technological barriers, biofuel policy | 
