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NGO Biofuels Study 'Flawed'

A new study has shown that biofuels are expected to cost EU consumers about €126 billion at the pump between now and 2020, writes TheBioenergySite.com, February 9, 2012.

The report, which was commissioned by NGOs Friends of the Earth and ActionAid, has been criticised by the ethanol association ePURE as being flawed as the body says it is full of factual errors.

According to ePure, analysts F.O. Licht’s looked at the report and say: "There are inherent difficulties in calculating the differences in the cost of producing fossil fuels on the one hand and biofuels on the other. Even the study authors warn that it should be noted that these projections are extremely uncertain, and thus the results derived are indicative."

The analysis also claims the figures the authors of the report use were given by the UK’s Department of Transport which are currently under revision. Because of this, F.O. Licht’s claims that the calculations are not reliable, writes TheBioenergySite.com. 

"There is no historical evidence that the introduction of biofuels has resulted in higher fuel prices at the pump. Why would this trend change? Most likely petrol prices will increase if biofuels were removed from the petrol mix. A 2008 Merrill Lynch report found that oil values at that time would have been about $20 (€15) barrel higher without the use of biofuels," says Rob Vierhout, secretary general of ePURE. "Contrary to what is frequently said in public, petrol blended with 10 % ethanol as opposed to a 5 % blend does not increase fuel consumption."

The report says sustainability certification will mean higher prices, but according to ePure, this has not been the case for ethanol.

According to the Renewable Energy Association (REA), the briefing 'confuses' the issue of sustainable transport for legislators and consumers alike, as it quotes 'selectively from its references' and does not reflect the balanced way in which the original authors approached their work. Crucially, the briefing omits the fact that biofuels, like any other technology, can be done well or badly.

The REA also point out that effort should be directed at encouraging good biofuels, such as those produced in the UK, rather than demonising all biofuels. The UK implements a range of mandatory sustainability standards for biofuels. This is the only sector where such standards are legally enforceable.

The European Commission says if biofuels consumption was to rise to 14 % of fuel consumption then it would reduce the price of fossil oil by 3 %.

However, ethanol is creating new jobs and also putting pressure on the gas and oil industry.

"Must we conclude from these studies that Friends of the Earth and ActionAid would actually prefer tar sands over fuel ethanol?" concludes Mr Vierhout.

Source: TheBioenergySite News Desk 

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