Advanced bio-fuels could create millions of jobs while greening the economy
Transforming agricultural residues into advanced bio
fuels could create millions of jobs worldwide, economic growth,
reduction of greenhouse gas emissions and energy security by 2030,
according to a report by Novozymes, the world leader in bio innovation
and industrial enzymes.
The Bloomberg New Energy
Finance report “Moving towards a next-generation ethanol economy'' was
commissioned by Novozymes. It estimates the socio-economic prospects of
deploying advanced bio fuels in eight of the highest
agricultural-producing regions in the world, including Argentina,
Australia, Brazil, China, EU-27, India, Mexico and US.
“A
huge global resource of agricultural residues can be harvested
sustainably every year without altering current land use patterns and
without interfering with the food chain,'' according to Steen Riisgaard,
CEO of Novozymes. According to the report, an estimated 17.5 per cent
of the agricultural residue produced could be available today as
feedstock for advanced bio fuels. With this amount, enough advanced bio
fuels could be produced to replace over 50 per cent of the forecasted
2030 gasoline demand.
The world has a unique
opportunity to develop a next-generation bio product industry based on
agricultural residues by 2030, the report states. The socio-economic
prospects of deploying advanced bio-fuels go well beyond energy
security. The report shows that the eight regions analysed have the
potential to diversify farmers' income, generate revenues ranging from
$1trillion to $4.4trillion between today and 2050 and create millions of
jobs. For example, advanced bio fuels could create up to 2.9 million
jobs in China, 1.4 million jobs in the US and around one million in
Brazil. The impact on climate change would also be reduced considering
advanced bio fuels emit 80 per cent less greenhouse gas than ethanol.
“At
a time when we're all striving to create jobs to secure our economic
future, as well as finding a sustainable way to produce energy, this
study shows the benefits of a transition towards sustainable bio fuels
and bio products based on agricultural residues,'' said Riisgaard. ``It
also strongly signals that policy incentives will result in great
payback to society,'' he added. The report states the technology exists
today to produce advanced bio fuels from agricultural residues, and the
first commercial-scale facilities will start production this year.
Moreover in the coming decades a variety of other advanced bio products
such as chemicals and plastics could also be produced based on the same
feedstock and pave the way towards a bio-based economy, independent from
fossil fuel.
While the potential is high, broad
deployment of advanced bio fuels is not a given. The report highlights a
series of barriers in terms of feedstock supply, insufficient
infrastructure and high capital costs that can prevent the industry from
unlocking the value of this agricultural residue resource. It will
depend on policy makers to put solid incentives into place that actively
encourage the necessary investments, including long-term mandates for
advanced bio fuels, incentives for the collection of farming residues
and tax breaks for investments.
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