By Max Lindberg •
February 22, 2008
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In what has become a somewhat confusing change in terminology, Boeing has announced it will use a first-generation feedstock for the fuel to be used in its upcoming demonstration flight this month.
It was first reported in January that Virgin Atlantic would test flight a Boeing 747 jetliner using a biofuel, without naming the fuel. An algae-derived biofuel was, however, mentioned as a strong possibility for the flight between London Heathrow airport and Amsterdam. […]
Are biofuel mandates and tax credits such a good idea? It may be wise to learn from the EU’s experience…
After passage of the new Renewable Fuel Standard (RFS) late last year (see earlier post), which mandates production of 15 billion gallons of corn-grain ethanol by by 2015, many of us are left contemplating the vast implications for US industry, not to mention commodity prices, auto manufacturing, and the greater course of biofuel research and development.
Rewind to 2003, when the European Union (EU) passed a biofuel directive requiring 5.75% of transport energy to come from biofuels by 2010, increasing to 20% by 2020. When paired with tax credits for biodiesel production, business boomed, at least for a while:
Mirroring the U.S. experience with ethanol, European companies rushed to make biodiesel out of a range of things, including rapeseed crops and used McDonald’s frying oil. Low raw-material costs and generous tax breaks meant margins were high. By last year, Europe’s annual capacity to make the fuel had climbed to 10 million metric tons from two million tons in 2003.
As with ethanol in the U.S., though, Europe now has a glut of biodiesel. The world consumed only nine million tons of biodiesel last year. Europe’s producers found buyers for just five million tons. The industry is in trouble, under pressure from soaring costs, disappearing tax breaks, less-costly imports and waning public support.
For a case study of how geography, politics, and personal preference has derailed a microcosm of America's new-found energy plan, look no further than the Willamette Valley, Oregon. Here, in green fields nestled between the mountains of the Cascade Range on the East and the Coast Range on the West, sit vast plots of seed crops whose vitality may be threatened by the introduction of canola (rapeseed) for biofuel production.
