energy

Investment, particularly in biofuels, is booming on the back of higher oil prices, energy security fears, limited spare refinery capacity and concerns about greenhouse gas emissions. Production could rise to 1.2 million barrels a day in 2011, almost double the 2005 production of 0.65 million barrels. However, there are still significant uncertainties in the outlook for biofuels, particularly in relation to competition for land and water with the food stock sector, and the fact that the sector is heavily dependent on high oil prices and government subsidies. Second generation technologies, fuel cells and other unconventional hydrocarbons, such as CTL and GTL could expand the supply of clean fuels. Those technologies however still require further investment on their path to commercialisation and need to prove their viability. looks interesting

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Biofuels can make a significant contribution to meeting future road-transport energy needs, helping to promote energy diversity and reducing emissions. Biofuels reach 4% of road-fuel use in the Reference Scenario in 2030 and 7% in the Alternative Policy Scenario, up from 1% today. The United States, the European Union and Brazil account for the bulk of the global increase and remain the leading producers and consumers of biofuels in both Scenarios. But rising food demand, which competes with biofuels for existing arable and pasture land, and the need for subsidy in many parts of the world, will constrain the long-term potential for biofuels production using current technology. New biofuels technologies being developed today, notably ligno-cellulosic ethanol, could allow biofuels to play a much bigger role - if major technological and commercial challenges can be overcome.

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