Food before fuel

16th January, 2008

Biofuel consumption is forecast to undergo a rapid expansion in northeast Asia over the next decade, as governments promote its development as part of wider efforts to increase clean energy consumption. China will lead the way due to its huge need to introduce low cost environmentally friendly solutions for transport and other sectors.

Neighbouring Japan, South Korea and Taiwan are also increasing efforts to promote biofuel development, though so far neither the Japanese nor the South Korean government has won the support of their domestic petroleum industry.

China, with its large land area and resources, is expected to become selfsufficient in supplying its domestic biofuel needs and could even develop into an exporter providing local producers adopt international biofuel standards.

The story is different for Japan, South Korea and Taiwan, however. Due to the decline in their agricultural industries owing to high costs and farm labour shortages, these three are likely to rely on biofuel imports from southeast Asia and South America, where biofuel crops can be grown more economically.

Production of biofuels in northeast Asia is most advanced in China where the government views biofuel production as an essential and strategic component of its diversified energy policy.

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