Demand for Biofuels Fuels Demand for Water

As oil prices have been rising, biofuels have been booming. Biofuels are made from plant matter; the complex carbohydrates of the plants are converted into hydrocarbon chains, which behave much like gasoline and diesel fuels. Even if you’ve never heard the term, you’ve undoubtedly heard the names of the fuels; ethanol, methanol and biodiesel are all examples of biofuels currently available in many countries.

The main benefit of biofuels is easy to grasp; biofuels are a renewable resource, unlike petroleum. When the world’s supply of oil is consumed, there will be no way to ‘make new oil’. Conversely, there is a constant harvest of new, growing fuel-crops. Corn, soybeans, hardwoods, sugar canes – all can be harvested and used for biofuel production.

The downsides of biofuels are not so obvious. The first is that some of the same crops that are used for fuels are also used as human and animal food. The high price of oil and gasoline has created intense demand for biofuels; additionally the high prices have meant that biofuel producers can afford to offer attractive pricing to farmers who grow the crops. As a result, an increasing number of farmers have sold their crop to biofuel producers. An example of this can be found in the corn markets; currently the cost of corn stands near $3.25 per bushel – a massive jump from 2006 prices of near $2 per bushel. Those who need to buy corn for any other reason must pay this increased price. As a result, the cost of everything from tortillas to eggs (chicken feed is mostly corn) has risen along with the corn prices.

Another major biofuel-related concern that is just beginning to be discussed is water. Water is required to grow biofuel crops and water is required to process them into fuels. Compounding that is the growing demand for biofuels; increased demand means increased demand for water. For every gallon of ethanol produced, roughly 4 gallons of water are needed.

In the United States, the state of Iowa is currently wrestling with how to address water resource needs that are related to ethanol production. Currently, Iowa produces 1.9 billion gallons of ethanol. Construction of new plants or expansion of existing ethanol facilities would increase production by almost 1.4 billion gallons. Those biofuel plants consume about 7 percent of the state’s water today, according to a state water-use study. That could grow to 14 percent by 2012, according to a study by the Institute for Agriculture and Trade Policy. As a result of this potential crisis, the Iowa state legislature is considering a bill that would mandate water recycling for all new biofuel facilities built in the state.

Of even more concern is the growing demand for biofuels in China. The government in Beijing sees renewable energy as a major part of the energy solution that must be offered to support the growing population. China already faces water shortages in many provinces, though. Amid its water scarcity, China has become the world’s third-largest bio-ethanol producer after only Brazil and the United States; diverting thousands of gallons of water to grow a ton of corn, then using more water to turn the corn into ethanol. To combat this, in December 2006, the Chinese government came up with controls on corn-to-ethanol projects so as not to lose more precious water to producing fuel at the expense of food.

Governments so far seem to be acting responsibly when the tug of lucrative biofuel profits pulls at the water that is so necessary for life. In the future, it would be wise to weigh the cost of fuel against the cost of a world where water is in short supply.