KEY POINTS:
New Zealand is about to join the rest of the world in using biofuels more widely.
The Government is this year expected to pass into law the Biofuels Bill, which will make it compulsory by 2012 that 2.5 per cent of the petrol and diesel oil companies sell must be biofuels.
Already Gull is selling bioethanol-blended petrol at its North Island petrol stations and recently Mobil began selling bioethanol-blended petrol in Wellington.
In New Zealand, our transport sector accounts for 44 per cent of our total energy use and energy-related greenhouse gas emissions.
Biofuels have been used globally for more than 20 years and yet myths still remain about their production and use.
In the United States there has been controversy over what has become known as the food versus fuel debate.
There, and in Europe, Governments have been subsidising farmers to grow food for fuel which has led to the myth that all biofuels are made from staple food crops.
But not all biofuels are equal. At present we are using only sustainable biofuels in New Zealand and the Government is committed to ensuring that all our biofuels come from sustainable sources as they become more widely available.
The Biofuels Bill now contains extensive sustainability criteria and will ensure that New Zealand uses only biofuels that:
* Emit significantly less greenhouse gas over their life cycles than fossil fuels.
* Do not compete with food production or be produced using land of high value for food production.
* Do not reduce indigenous biodiversity or adversely affect land with high conservation values.
Gull's bioethanol-blended petrol is made from dairy industry byproduct which would otherwise be sold overseas in alcoholic drinks. The bioethanol is made in Reporoa by Fonterra.
Mobil is importing its bioethanol from Brazil. Brazilian bioethanol is made from sugar cane and is a sustainable option.
The Energy Efficiency Conservation Authority recently commissioned an independent literature review on the sustainability of Brazilian ethanol. The review found that even with the transport of the fuel from Brazil to New Zealand, Brazilian ethanol delivers 7.6 times more energy than the energy used in making it.
Even when taking shipping of the ethanol to New Zealand into consideration, Brazilian ethanol will achieve at least 74 per cent reductions in greenhouse gas emissions in comparison with petrol. This is significantly better than many other bioethanol products produced from grain and sugar beet that can be as low as 20 per cent.
Brazil is the world's largest producer and exporter of sugar and the industry is the fasting growing agribusiness in the country. They could increase their sugarcane-planted area by 40 per cent without affecting the land used for growing food crops or cutting down Amazon rainforest.
There is no direct link between the expansion of sugar cane production and deforestation. Brazil is a huge country and sugarcane is grown more than 2000km away from the Amazon rainforest.
Also, the report found that Brazilian sugarcane bioethanol remains one of the best performing commercially available biofuels.
The recent food price increases have further fuelled the biofuel debate.
Some commentators have argued that the production of biofuels is pushing up the price of food. But any rises resulting from biofuels are dwarfed by price rises resulting from oil.
The price of oil has jumped more than 60 per cent compared to an increase of 6.8 per cent in food prices for the year ended May (source: Statistics New Zealand).
Oil is a major input into food production and its transportation costs, and fertiliser prices are also linked to oil prices.
The price of oil, and growing international demand, is far more a factor in the increasing cost of food than the production of biofuels.
Oil prices are likely to keep on rising. We need to look for more environmentally stable and sustainable solutions. Biofuel is one of the options.
As technology develops, we will see biofuels made from other sources such as wood, algae and even household rubbish. These are called second-generation biofuels and are still being further developed.
It will probably be some time before enough quantity can be produced from these sources. In the interim, New Zealand and other countries will use first-generation biofuels - those made from byproducts and crops.
Some consumers have also expressed concern about the performance of biofuels in their vehicles.
Low-level biofuel blends have been used around the world for several decades without problems.
In fact, high-level biofuel blends are being used in cars racing in the New Zealand rally and in the Toyota Racing Series because they deliver increased engine power and torque. The boat that completed the Earthrace, in world record time, was powered by biodiesel.
The benefit of using biofuel in your car is that it reduces your carbon footprint. Biofuels emit less CO2. Even using a 10 per cent bioethanol blend can make a difference to our environment. Every small change helps.
Biofuels are one part of New Zealand's transport future. It is important but there are other things we need to do as well.
We also need better public transport and urban design, improved walking and cycling infrastructure, more efficient vehicles and driving techniques.
We need better consumer information on vehicle efficiency, increased volumes of freight on rail and ships as well as flex fuel, plug-in hybrids and electric vehicles. But low-level biofuel blends are something we can use today in our vehicles.
* Elizabeth Yeaman is team manager, renewables and energy supply, Energy Efficiency Conservation Authority (EECA).
