Biofuels (Part 2) - Exploring Innovations for ASEAN

"Biofuels... it's already had one life and now it's going to be used again, which is nice"

David Hannah

In my last post, I have explored the significance of biofuel production in the ASEAN region, as well as established that there are food security challenges that will be faced in trading off food crops for biofuel production. In this post, I shall be exploring two topics pertaining to biofuels, firstly in feasibility of using biofuels as an energy source in Singapore, as well as global innovations in biofuels to address food security issues that can be learning points for ASEAN. 

This comic sums up the controversy that biofuels take away food from the hungry and uses it to feed our transportation vehicles instead
(Source: http://www.inkcinct.com.au/web-pages/global/global-social-general/2008--global-social-general.htm)

Biofuels in Singapore

While Singapore is in ASEAN and is the leading oil trader in Asia, biofuel produced here constitutes less than a percent of Singapore’s energy production (eia.gov, 2014), a measly droplet as compared to other ASEAN countries. Almost all of that is exported out as well. Some reasons for this lack of development of the sector was suggested in Mukherjee & Sovacool (2014)’s report, which highlights on sustainability issues in palm oil production. Singapore lacks land space to produce enough crops to convert into such fuels. Being a low-lying equatorial island also prevents us from crops which grow better in hilly terrain and cooler climates to the industry’s development. Despite our inability to grow as much food crops as compared to our neighbours, Singapore’s strong economic presence in the region still draws investment from MNCs for biofuel production, with some of the world’s largest biodiesel factories based on Jurong Island (for more info see here). Food crops are then imported from our regional neighbors

Singapore has been exploring our biofuel capabilities. Biodiesel usage is presently in the testing stage for domestic households, in the most unlikely of places, an offshore island we call Pulau Ubin. The island might house few houses and even fewer residents, but it’s presently the test bed for an alternative energy grid combining solar energy with biofuels to power generators, supplying electricity for businesses and households in Ubin Village. Driven by the Energy Market Authority and Daily Life Renewable Energy, it has addressed an age-old problem for business owners and residents who previously had to source for diesel from the mainland on a daily basis. (for more information visit here)

Solar panels decorate the rooftops of buildings in Ubin Village and generators are placed in secure control rooms fueled by biodiesel produced from the mainland

(Source: http://www.todayonline.com/singapore/biofuel-driven-energy-grid-launched-pulau-ubin)

However, whether this successful test-bed can be scaled up to cater to the needs of Singaporeans is entirely another matter. As compared to Ubin residents, Singaporeans would have higher living standards and a greater demand for electricity. This would make biofuels less feasible as it still has lower energy efficiency as compared to conventional fossil fuels, the current fuel of choice for Singapore’s electricity production.

Global Solutions for ASEAN

On a global level, both developed and developing countries show increased utilization of biofuels. However, biofuels’ main controversy remains to be that food crops, which can be used to feed the hungry and improve food security, are being used to fuel the push for biofuels instead, causing food prices to rise unnecessarily. In 2007, the export of US corn to Mexico was minimized to support corn ethanol production in the US. This raised the prices of tortillas, a Mexican staple, by 25%, sparking off the ‘Tortilla Riots’ and strained bilateral relations (for more information, read here).

(Source: Wise, 2012)

7 years on, scientists have made progress to improve food security across the world, with the emergence of second-generation and third-generation biofuels. Both of these fuels are made from non-edible biomass, which makes them not in direct competition for consumption. However, second-generation biofuels still require many of same agricultural resources, such as land and fertilizer, as first-generation biofuels, making them still in direct competition to food crop production (Koizumi, n.d.). There are notable exceptions to this, such as jatropha, an emerging biofuel which can grow even in infertile soil, such that it can be grown by farmers on non-arable land. This Deutshe Welle article sums up some of the unique features and possible challenges that jatropha cultivation faces in developing nations.

Microalgae is another heavy contender for being a mainstream energy source that is still under research. Storing energy in the form of natural oils, solvents are used to break down the cell structure of microalgae and the oils are extracted subsequently. This third-generation biofuel has the potential to produce up to 60 times more oil / acre than land-based biofuels. In addition, being grown in an aquatic environment, it does not compete for resources with land-based food crops, being able to be cultivated even in urban areas. Given these benefits, the US Department of Energy has recently allocated 25 million USD into the further research of microalgae, so as to lower its costs and become more viable for commercial production. It has also began educating the public, releasing this video below to highlight the potential of microalgae cultivation to solve energy problems in the US:

These biofuel innovations however are still not being explored much in the ASEAN region. Policymakers might be most wary of the high production costs. According to the Committee on World Food Security’s (2013) report, the production of second and third-generation biofuels can cost many times more than the conventional biofuels being produced at present. To lower the start-up costs, further R&D might be needed by the scientific community before the ASEAN region can properly consider relying on these forms of biofuels instead.

A comparison of the production costs for different types of biofuels. Evidently microalgae can cost more than 400 times the cost of producing first-generation biofuels like maize (US) 

(Source: Committee on Food Security (2013))

In addition, introducing these innovations might distort an existing status quo, whereby there are presently strong partnerships between existing biofuel companies, the farmers who produce these crops, as well as the government. (Kumar, Shrestha & Abdul Salam, 2013). Transitioning to second and third-generation biofuels might actually have harmful economic implications as this creates competition. This could result in undesirable outcomes such as job losses, energy insecurity and even civil unrest. Should these barriers be addressed however, the future for biofuels in the region could be very bright as it will addresses energy and environmental problems all at once, but more importantly still allow food to reach the plates of all. 

References
Committee on World Food Security, (2013). Biofuels and Food Security.

Eia.gov, (2014). Singapore - Analysis - U.S. Energy Information Administration (EIA). [online] Available at: http://www.eia.gov/countries/cab.cfm?fips=sn [Accessed 6 Oct. 2014].

Koizumi, T. (n.d.). Biofuels and food security. 1st ed.

Kumar, S., Shrestha, P. and Abdul Salam, P. (2013). A review of biofuel policies in the major biofuel producing countries of ASEAN: Production, targets, policy drivers and impacts. Renewable and Sustainable Energy Reviews, 26, pp.822--836.

Mukherjee, I. and Sovacool, B. (2014). Palm oil-based biofuels and sustainability in southeast Asia: A review of Indonesia, Malaysia, and Thailand. Renewable and Sustainable Energy Reviews, 37, pp.1--12.

Wise, T. (2012). The Cost to Mexico of U.S. Corn Ethanol Expansion. pp.3, 8.