News Release Details
5% ethanol-blending may become norm
New Delhi 06-Jul-2007
Weather in August is critical to the soybean production in the US, oilseeds output in India and crude palm oil production in Malaysia and Indonesia, said Dorab Mistry, director of the London-based Godrej International. Dorab Mistry told the 76th Congress of the International Association of Seed Crushers in Shanghai that the If weather remains favourable in these countries, oilseed productions will increase, resulting in an interruption of the bull market. However, a hostile climan'ccondition may flare up the prices on squeezing supply. There has been a surge in demand for fuel, chiefly from the EU countries. The EU has been importing vegetable oil from South America for producing bio-diesel as refined rape-seed oil is used for direct injection into trucks as fuel. Consequently, the demand of raw materials producing bio-fuel has been increasing across the globe, Mistry noted. Responding to global move towards bio-fuel. India is also planning to make 5 per cent ethanol blending mandatory by 2008, subject to availability. Globally, bio-diesel production based on farm products such as cereals, sugarcane, oilseeds are influenced by the bio-fuel policies announced by the US, Brazil, Canada, Argentina, China and India. Since these countries have embarked on many programmes based bio-diesel. Demand for maize, sugarcane, oilseeds will skyrocket in the near future, according to the latest report by the Organization for Economic Co-operation and Development (OECD) and Food and Agriculture Organization (FAO) of the United Nations. According to the report, the US may increase its ethanol production, predominantly based on domestic maize, by almost 50 per cent in 2007 and the growth is expected to decline thereafter. Ethanol production in the US is expected to double between 2006 and 2016. Consequently, the use of use may reach 55 million tones, the report said. Bio-diesel production, in contrast, may remain limited to the US due to lower profitability caused by high feedstock costs. Soya oil use for bio-diesel production is expected to reach 2 million tonnes in 2007 and to 2.3 million tonnes by 2011. The EU, which has been using oilseeds, may now pay more attention on using wheat and maize for bio-fuel production. Despite an expected growth in bio-fuel use by 170 per cent between 2006 and 2010, its share in total transport fuel consumption will not exceed 3.3 per cent in energy terms, rather than the 5.75 per cent target set by the EU Biofuels Directive. Use of feed stocks products, particularly wheat, is set to increase 12-fold and may reach 18million tonnes by 2016. Growth in the use of oilseeds (largely rapeseed) and maize will reach 21 million tonnes and 5.2 million tonnes by 2016, respectively, the report added.
New Delhi 06-Jul-2007
Weather in August is critical to the soybean production in the US, oilseeds output in India and crude palm oil production in Malaysia and Indonesia, said Dorab Mistry, director of the London-based Godrej International. Dorab Mistry told the 76th Congress of the International Association of Seed Crushers in Shanghai that the If weather remains favourable in these countries, oilseed productions will increase, resulting in an interruption of the bull market. However, a hostile climan'ccondition may flare up the prices on squeezing supply. There has been a surge in demand for fuel, chiefly from the EU countries. The EU has been importing vegetable oil from South America for producing bio-diesel as refined rape-seed oil is used for direct injection into trucks as fuel. Consequently, the demand of raw materials producing bio-fuel has been increasing across the globe, Mistry noted. Responding to global move towards bio-fuel. India is also planning to make 5 per cent ethanol blending mandatory by 2008, subject to availability. Globally, bio-diesel production based on farm products such as cereals, sugarcane, oilseeds are influenced by the bio-fuel policies announced by the US, Brazil, Canada, Argentina, China and India. Since these countries have embarked on many programmes based bio-diesel. Demand for maize, sugarcane, oilseeds will skyrocket in the near future, according to the latest report by the Organization for Economic Co-operation and Development (OECD) and Food and Agriculture Organization (FAO) of the United Nations. According to the report, the US may increase its ethanol production, predominantly based on domestic maize, by almost 50 per cent in 2007 and the growth is expected to decline thereafter. Ethanol production in the US is expected to double between 2006 and 2016. Consequently, the use of use may reach 55 million tones, the report said. Bio-diesel production, in contrast, may remain limited to the US due to lower profitability caused by high feedstock costs. Soya oil use for bio-diesel production is expected to reach 2 million tonnes in 2007 and to 2.3 million tonnes by 2011. The EU, which has been using oilseeds, may now pay more attention on using wheat and maize for bio-fuel production. Despite an expected growth in bio-fuel use by 170 per cent between 2006 and 2010, its share in total transport fuel consumption will not exceed 3.3 per cent in energy terms, rather than the 5.75 per cent target set by the EU Biofuels Directive. Use of feed stocks products, particularly wheat, is set to increase 12-fold and may reach 18million tonnes by 2016. Growth in the use of oilseeds (largely rapeseed) and maize will reach 21 million tonnes and 5.2 million tonnes by 2016, respectively, the report added.