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UK Farmers Urged to Grow Fuel Crops

Posted on: Sunday, 18 September 2005, 09:00 CDT

UK farmers urged to grow fuel crops

LONDON, Sept. 17 (Xinhua) -- British farmers are urged by the government to grow fuel crops to help ease the fuel crisis, according to the Financial Times published on Saturday.

The Department for Environment, Food and Rural Affairs wants more farmers to grow biofuel or biomass crops and believes that oil over 60 US dollars a barrel and petrol at one pound (1.8 US dollars) a liter could make the business case more compelling.

Margaret Beckett, environment secretary, said: "It could be profitable for farmers to grow biofuels at a time of high oil prices."

Biofuels such as ethanol can be added to petrol and used in normal vehicle engines without requiring their modification. Carmakers agree that at least five percent of petrol can be made up of ethanol. Many in the biofuels industry believe this could be revised up to 10 per cent or more.

Ethanol, which can be made from grain or sugar beet, burns in much the same way as petrol and can enhance engine performance. In countries such as Brazil and Sweden, many cars run on 85 percent ethanol and 15 percent petrol.

In recent months, ethanol has been cheaper than petrol in many regions as the oil price has pushed upward while increasing ethanol production has driven down its cost. However, the squeeze on supply resulting from increased demand has recently driven up ethanol prices again. If the oil price continues to rise, and ethanol output increases, it may swing back into favor.

Beckett acknowledged the UK had a long way to go to build up its biofuel industry: "This country is coming from a very low base in terms of biofuel production. The question is how speedily we can move."

It can take farmers a year or two to change their crops. In 2003, biomass provided only 1.2 percent of the UK's energy needs, and about four percent of Europe's.

A government taskforce on biofuels, chaired by Ben Gill, the former president of the National Farmers' Union, is expected to report in October with suggestions on how to increase the production and take-up of biofuels.

Source: Xinhua News Agency - CEIS

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