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CHAPTER 2.0 – LITERATURE REVIEW 2.01 BIOFUELS There is extensive research on the topic of biofuel as such the review of literature will seek to only highlight a few studies that are seen as pivotal to this study. Biofuel is a promising source of energy because it is generated by the process of photosynthesis, where energy from the sun is captured and transformed into biomass that can be combusted to produce energy1. The sharp increase in the price of petroleum products, the finite nature of fossil fuels, growing environmental concerns, especially related to greenhouse gas emissions, and health and safety considerations are forcing the search for new energy sources and alternative ways to power the world's motor vehicles, according to the paper “The Emerging Biofuel Market: Regulatory, Trade and Development Implications”2. This paper states that increasing the production, use and trade of bio-fuels may slow down the process of global warming and provides opportunities for developing countries to diversify agriculture production, raise rural incomes, and raise quality of life. In addition, biofuels have the possibility of enhancing food security, and reducing expenditure on imported fossil fuels. In its essence this paper looks at the role that bio-fuel can play in complementing fossil fuels, due to its inherent advantages in combating the negatives of fossil fuels but also capturing the possibility that exists in biofuels to be as or even more degrading to social, environmental and economic spheres, thus the paper emphasizes the importance of policies in structuring sustainable bio-fuel production. While emphasizing that bio-fuels cannot stand alone or be viewed as the only initiative to combat the problems of energy provision, climate change and development, but that other innovations and policies must be implemented to complement the use of bio-fuels. 1 http://www.tamu.edu/faculty/tpd8/BICH407/Brazilenvsoc2.pdf 2 http://www.unctad.org/en/docs/ditcted20064_en.pdf Though biofuels are widely regarded as means to provide energy needed for development without the degrading effects of fossil fuels; the increasing production of bio-fuels are not without its challenges. Notwithstanding that the impacts of increased bio-fuel production on greenhouse gas emissions, land, water and biodiversity vary widely across countries, biofuels, feedstocks and production practices, there is a strong and immediate need for harmonized approaches to life-cycle analysis, greenhouse gas balances and sustainability criteria, according to the document “Liquid Biofuels for Transport Prospects, risks and opportunities”3. This document emphasizes that biofuels are only one component of a range of alternatives for mitigating greenhouse gas emissions and that policy objectives such as different forms of renewable energy, increased energy efficiency, conservation, and reduced emissions from land degradation and deforestation may prove cost effective. In addition, greenhouse gas balances are not positive for all biofuels and that for the purpose of solely combating climate change; investment should be directed towards crops that have the highest possible greenhouse gas balances with the lowest environmental and social costs, where biofuels production remains small in the context of total energy demand. In assessing the constraints associated with the use of biofuel the paper highlights the issue of environmental impacts that can be generated from all stages of biofuel-feedstock production and processing. Processes related to land use change tend to dominate and during the next decade the speed at which policy-driven growth in demand for biofuels is likely to accelerate the conversion of non agricultural lands to crop production. This will occur directly from biofuel feedstock production and indirectly from other crops displaced from existing cropland. This paper discusses the reality of biofuels being a more socially beneficial, environmentally friendly, and a way to meet energy demand as it relates to its potential positive effect as compared to fossil fuels. And deliberates if biofuels are not sustainably produce and policies are not in place to prevent unsustainable production of fossil fuels viewing biofuel as only one of many innovations, not the only innovation to combat the problems created by fossil fuel use, then the inherent benefits of biofuels will not be realized and biofuels may become a bigger problem than the use of fossil fuels. 3 http://www.greenfacts.org/en/biofuels/l-3/4-environmental-impacts.htm The success of biofuels development depends first and foremost on the proper selection of the raw material to be used in the production of a bio-fuel (ECLAC, 2007)4. This document stated in this regard, the choice of biofuel crops depend fundamentally on the following factors: Agro-industrial productivity, which combines agricultural productivity and industrial productivity and is evaluated in litres of fuel per hectare; Technological availability, or the existence of known and accessible processes for converting the raw materials into biofuels; The energy balance, which expresses the ratio of energy demand to production for a given raw material conversion process; The availability of energy by-products that are capable of meeting the energy requirements of the conversion process; Environmental impact at the level of agricultural and industrial production; Competition with food production; The level of knowledge and dissemination of crops in the context under consideration. Using these criteria, a preliminary selection can be made from among different crops that can be used for the production of ethanol, with starchy crops (products that clearly have food value and a low energy yield) and corn (marginally attractive energy balance) can be ruled out or atleast given lower priority (ECLAC, 2007)5. According to the document sugarcane stands out as a favourable alternative in Guyana given the fact that it has been cultivated for centuries and has an energy production /demand ratio of 8, one of the highest available. More over with the use of bagasse, the industrial process can be self sufficient and even generate a surplus. This paper highlights the potential Guyana has in the area of biofuels and concluded that in the area of bioethanol production, the use of exhausted molasses from sugarcane was the most feasible feedstock and possesses the greatest potential for Guyana from using the criteria above. 4 5 http://www.eclac.org/publicaciones/xml/2/27952/lcw118i.pdf http://www.eclac.org/publicaciones/xml/2/27952/lcw118i.pdf 2.02 BIOETHANOL Similarly, there is extensive information on the subject of bioethanol, as such this review of literature serves to introduce bioethanol by highlighting some of its characteristics. As regards the role of biofuels and particularly ethanol in the supply of fuels, the introduction of ethanol in gasoline blends deserves some comment; this technological option had been proposed as far back as the late nineteenth century by Henry Ford, who used pure ethanol in his early models6.Ethanol is a first generation fuel; Conventional “first generation” ethanol is made by fermenting sugars from plants with high starch or sugar content into alcohol, using the same basic methods that brewers have relied on for centuries7. Bioethanol, or rather ethanol, itself belongs to the chemical family – alcohols - and has a structure of C2H5OH and a strong odour8.Ethanol is a high octane fuel and has replaced lead as an octane enhancer in petrol, by blending ethanol with gasoline we can also oxygenate the fuel mixture so it burns more completely and reduces polluting emissions9. Bioethanol can be used directly in cars designed to run on pure ethanol (hydrated ethanol, which has usually about 5 per cent water content), or blended with gasoline to make "gasohol"10. Dehydrated (anhydrous) ethanol is required for blending with gasoline11. Ethanol or ethyl alcohol (C2H5OH) is a clear colourless liquid, it is biodegradable, low in toxicity and causes little environmental pollution if spilt and it burns to produce carbon dioxide and water12. 6 ibid http://www.worldwatch.org/files/pdf/biofuels.pdf 8 http//www.erec.org/fileadmin/erec_docs/Project_Documents/RESTMAC/Brochure5_Bioethanol_low_res.pdf 9 ibid 10 http://www.unctad.org/en/docs/ditcted20064_en.pdf 7 11 12 http://www.unctad.org/en/docs/ditcted20064_en.pdf http://www.esru.strath.ac.uk/EandE/Web_sites/02-03/biofuels/what_bioethanol.htm The principle fuel used as a petrol substitute for road transport vehicles is bioethanol; bioethanol fuel is mainly produced by the sugar fermentation process, although it can also be manufactured by the chemical process of reacting ethylene with steam13. During the fermentation reactions, sucrose is hydrolyzed into fructose and glucose, which are converted into ethanol and carbon dioxide as represented by the equation14: C6H12O6 → 2C2H6O + 2CO2 Ethanol is an oxygenated fuel containing 35% oxygen, which reduces particulate and NOx emissions from combustion15. The use of bioethanol can reduce emissions of carbon monoxide and hydrocarbons, in which this emission reduction is particularly evident in older vehicles with less sophisticated fuel management systems16. The environmental advantage of ethanol over gasoline is the reductions in emissions that have an adverse effect on the environment and it can be sustainability produced. 2.03 SUGARCANE BIOETHANOL TECHNOLOGY Sugar-based bioethanol is a simple process as sugars is already present in biomass (Sugarcanebased bioethanol: energy for sustainable development)17. Generally, the process is based on extraction of sugars (by means of milling or diffusion), which may be then taken straight to fermentation and subsequently the wine is distilled, according to the document: “Sugarcane-based bioethanol: energy for sustainable development,” (see Figure 5 on the next page). 13 http://www.esru.strath.ac.uk/EandE/Web_sites/02-03/biofuels/what_bioethanol.htm http://www.nipeunicamp.org.br/site/adm/modulos/publicador/documentos/arquivos/File/Publica%C3%A7%C3 %B5es/Production%20of%20bioethanol%20and%20other%20bio-based%20materials.pdf 14 15 16 ibid http://www.eeca.govt.nz/sites/all/files/biofuels-factsheet-jun-08_1.pdf 17 http://sugarcanebioethanol.org/en/download/bioethanol.pdf The aforementioned document states, the initial processing stages for bioethanol are basically the same for sugarcane. Once in the mill sugarcane is washed and sent to the preparation and extraction phases. Extraction is made by roll mills – that separate the sugarcane juice containing saccharose from the bagasse, which is sent to the mill’s power plant to be used as fuel. The juice containing sugars can then be used for sugar production or ethanol production. Figure 12: Technological route for bioethanol production from Sugarcane (Sugar Biomass) Sugar Cane Extraction through Pressure of Diffusion Fermentable Sugar Solution Fermentation Distillation Ethanol Source: Sugarcane-based bioethanol : energy for sustainable development / coordination BNDES and CGEE – Rio de Janeiro : BNDES, 2008, p. 66 According to the document, in sugar production the juice is initially screened and chemically treated for coagulation, flocculation and precipitation impurities, which are eliminated through decanting. The filter cake, used as fertilizer, is generated by recovering sugar out of the decanted slurry by means of rotary vacuum filters. The treated juice is then concentrated in multiple effect evaporators and crystallized. In such process only part of the saccharose available in the sugarcane is crystallized and the residual solution with the higher sugar content can be used in the process once again to recover more sugar. The molasses produced can be used as an input for bioethanol production through fermentation, because it contains some saccharose and a high amount of reducing sugars (such as glucose and fructose, resulting from saccharose decomposition. The document states, sugarcane bio-ethanol production may be based on fermentation, whether using the sugarcane juice or using a mix of juice and molasses. In sugarcane-juice bioethanol the first stages of the manufacturing process, from sugarcane receipt to initial juice treatment, are similar to the sugar manufacturing process. In a more well-rounded treatment the juice is limed, heated and decanted as in the sugar process. After treatment the juice is evaporated to balance it sugars concentration and it may be mixed with molasses, generating sugarcane mash, a sugary solution which is ready to be fermented. The mash is sent to fermentation reactors, where yeast are added to it and fermented for a period from 8 to 12 hours, generating wine (fermented mash, with ethanol concentration from 7 – 10 %). Subsequently wine yeast are recovered by centrifugation and treated for new use while the wine that remains is sent to the distillation columns. In distillation bioethanol is initially recovered in hydrated form, producing vinasse or stillage as residue, generally at a ratio of 10 to 13 litres per litre of hydrated bio-ethanol produced. In this process other liquid fractions are also separated, producing second generation alcohols and fusel oil. Hydrated ethanol can be stored as final product or may be sent to the dehydration column. Nevertheless, as it is an azeotropic mixture, its components cannot be separated by distillation only. In the dehydration column, cyclohexane is added on top and the anhydrous ethanol is removed from the bottom (see Figure 6 on the next page). Figure 13: Sugar and Sugar-cane based bioethanol production chart Sugar cane Bagasse Boilers Milling Juice Chemical Treatment Filtration Filter Cake Molasses Evaporation Fermentation Cooking Distillation Centrifugation Rectification Vinasse Ethanol Drying (Hydrated) Sugar Dehydration Ethanol (Anhydrous) Source: Seabra 2008 (Sugarcane-based bioethanol : energy for sustainable development / coordination BNDES and CGEE – Rio de Janeiro : BNDES, 2008, p.75) 2.04 SUGARCANE BIOETHANOL INDUSTRY According to Joachim von Braun (2007) about 80 developing countries, for instance, grow and process sugarcane, a high-yielding crop in terms of photosynthesis efficiency that can also be used to produce ethanol. With international sugar prices moving generally downward until recently, partly owing to protectionist sugar policies in some OECD countries, sugarcane production for ethanol has become a more attractive option for developing-country farmers (Joachim von Braun, 2007). This fuel was first used on a large scale in Brazil, where a law was adopted in 1931 for the compulsory of 5 % ethanol in imported gasoline, thereby initiating a learning process that was the basis for the significant expansion observed in recent decades (ECLAC, 2007). According to the ECLAC, since the 1980s Brazil has been using 25 % ethanol in gasoline sold, with demand currently standing at approximately 16 billion litres of ethanol and projected to increase to over 22 billion litres in 2013, based on current high growth rates. This estimate is corroborated by the fact that 40 new sugar factories are being constructed in Brazil18. The great majority of ethanol produced in the world is from sugarcane, mainly in Brazil, and corn in the United States (which together account for 35.4 million cubic meters, about 72% of the world’s production), according to the document, “The Sustainability of Ethanol production from Sugarcane, (Jose´ Goldemberg , et al.)19. This document states that all the energy needs for its production (heat and electricity) come from bagasse and excess bagasse is used to generate additional electricity to be fed into the grid, the direct consumption of fossil fuels is limited to transportation trucks, harvesting machines and the use of fertilizers. And compared to ethanol produced from other feedstocks, sugarcane ethanol has a very favourable greenhouse gas emission 18 19 http://www.eclac.org/publicaciones/xml/2/27952/lcw118i.pdf http://cenbio.iee.usp.br/download/publicacoes/JEPO2750.pdf balance. And this is due to this positive energy balance, the sugar ethanol sector avoids emissions equivalent to 13% of all Brazilian industrial, commercial and residential sectors as compared with corn and other feedstocks that require considerable imports of fossil fuels in the producing plants. This results in an energy balances that vary from almost zero to only slightly higher than one. The document explains that expansion in the ethanol industry of Brazil to reach more markets will stretch the boundary of sustainability of the industry. Ethanol from sugarcane is one of the most promising biofuels because its energetic balance is generally positive, meaning that the growing sugarcane absorbs more carbon than is emitted when the ethanol is burned as fuel, according to the document, “Expansion of Sugarcane Ethanol Production in Brazil: Environmental and Social Challenges” 20 . The aforementioned document emphasized that the expansion of the industry to increase export capabilities could result in social and environmental challenges that can result in the degradation of both of these dimensions. Brazilian sugar cane is the most energy efficient crop for biofuels today, due to a highly efficient production process, suitable growing conditions, manual labour and active government policy and subsidies since the 1970’s, according to the document, “Biofuels – Potential and Challenges for Developing Countries (2009)”21. This document examines the Brazilian Ethanol industry as a case study noting the opportunities and challenges that exists. It states that out growers schemes have succeeded in ensuring that 30-35% of sugarcane in Brazil is produced by small scale farmers and that ethanol production has created around one million employment opportunities that depend on the degree of mechanization. In addition, the country has reduced dependency on oil imports and exposure to volatile international prices. There is an increasing demand of ethanol in Sweden, an interest to mix ethanol into gasoline in Japan, a potentially large interest from other European countries and there is a growing American interest for mixing sugar cane ethanol into gasoline; would the latter take place an American 20 http://www.tamu.edu/faculty/tpd8/BICH407/Brazilenvsoc2.pdf 21 http://www.swedbio.com/dokument/factsheet-biofuel-en.pdf demand of 5 million m3 per year has been indicated ( Grona Bilister, 2006, “Ethanol production from sugarcane in Brazil”)22. Therefore, Guyana is in an ideal position to take full opportunity of a bioethanol industry not just for domestic consumption but also for international trade, with the country possessing similar equatorial and environmental conditions to that of Brazil. 2.05 SUGARCANE BIOETHANOL IN THE CARIBBEAN In 1984, ethanol was included into a list of commodities for which duty–free access to the United States was allowed under the Caribbean Basin Initiative (CBI)23. The Caribbean Basin Initiative is a carefully designed development program to help Caribbean countries attract investors and diversify exports24. CBI grants eligible countries with duty-free access to the U.S. market for most products, including a duty-free quota of up to 7% of the US domestic market for non-indigenous ethanol25. Some of the countries in the Caribbean have established ethanol plants to take advantage of the CBI initiative to export ethanol to the United States and such has developed ethanol industries. This has made ethanol a very important commodity that is exported from the Caribbean Region to the United States Market. There are nine ethanol facilities in five Caribbean countries: Jamaica, EL Savador, Costa Rica, Trinidad and Tobago, and St. Croix26. These ethanol facilities process sugar cane based hydrous ethanol from other countries into anhydrous/fuel grade ethanol. 22 http://www.gronabilister.se/file.php?REF=39461a19e9eddfb385ea76b26521ea48&art=376&FILE_ID=200605110 84611.pdf 23 http://www.pcj.com/e10/pdf 24 http://www.caribbeanethanolproducers.com 25 ibid 26 ibid The plants have the capacity to produce 700 million gallons annually for the U.S. market. These plants represent over $ 300 million in investment, a significant portion of which has come from U.S. investors27. The ethanol industry has generated hundreds of indirect and direct jobs, hundreds of millions of dollars in foreign exchange, and constitutes an “anchor” investment that encourages up – stream economic development in the Caribbean28. More than 80% of the CBI exports from Jamaica is ethanol29. Jamaica is the largest producer of fuel grade ethanol in the Caribbean Community (CARICOM); in addition to exporting ethanol Jamaica has mandated the blending of 10 percent ethanol with gasoline (E10 blend) on 1st March 201030. The country’s three ethanol refineries produce (using raw ethanol imported from Brazil and elsewhere) about 150 million gallons of fuel grade ethanol for export to the US31. Similarly, Costa Rica has mandated the blending of ethanol with gasoline. The government of Costa Rica has mandated that all gasoline sold in Costa Rica is to be blended with 7% ethanol from October 200832. 27 28 29 ibid http://www.caribbeanethanolproducers.com ibid http://www.greenislandinc.com/news-commentary/2008/07/ 31 ibid 32 http://www.insidecostarica.com/dailynews/2011/april/20costarica11042007.htm. 30