Food vs. fuel — A turning point for bioethanol?
Bioethanol is made from sugar- or starch-containing plants that are also used in food production. In the public perception this has led to an emotional resistance against biofuels, which in real terms is not substantiated. Generally biofuels are a political product. Triggered by the oil crisis in the 1970s, fuel ethanol programmes were first launched in Brazil and in the United States. Concerns regarding energy security and sustainability, together with the option of new markets for surplus agricultural production, have led to similar measures in the EU and other countries in recent years. Accordingly, the industry invested heavily in new bioethanol plants — especially in the US — and created an additional demand for maize and wheat, with some record-breaking prices noted in late 2007. A look back into statistics shows a drastic decline in real prices for decades, which have now simply returned to the level of 30 years ago. The grain used for bioethanol is currently only 1.6% in the EU and is therefore unlikely to be the real driver of price development. The European Commission concludes in its review of agricultural markets that Europe can do both: nutrition and biofuels.