BIOETHANOL THE MAIN BIOFUEL SUBSTITUENT OF GASOLINE

BIOETHANOL THE MAIN BIOFUEL SUBSTITUENT OF GASOLINE

Alexandru GRIBINCEA, University Professor PhDDepartment of Marketing and International Economic Relations, USM

Veaceslav BRDAN, Senior University Lecturer PhD,Department of Marketing and International Economic Relations, USM

The issue of energy resources is quite old and can be solved by using alternative sources of fuel, a part of which can be obtained from biomass. The need of using bioethanol is driven by the reduction of world reserves of fossil fuel and global climate change. Due to certain economists - if the world economy starts using biofuel, food security can be affected, as the production of the main biofuel implies a lot of expensive food and feed crops.Keywords: biofuel, biodiesel, bioethanol, energy security, alternative energy sources.The world has entered the bioeconomy era, a time when the economy based on biotechnologies uses renewable raw materials for the production of energy and materials. Scientists are long searching for new sources of transport alimentation, sources that can also reduce air pollution. Some results are indeed ingenious. The Philippines produce fuel from coconut shell, in Thailand diesel is replaced with palm oil, while Malaysia has made great plans and publicly announced of giving up diesel fuel produced from petroleum.Generally, the notion of biofuel is referring to gaseous and liquid fuels (for example: methanol and ethanol), which are produced from carbon-containing materials, known as biomass organic matter of vegetable or animal origin obtained from crops, herbs, trees (fast growing ones: willow, poplar, miscanthus) and shrubs, as well as from fish oil, household waste, vegetable oils and fats, food industry waste, zootechnics and other domains, agricultural wastes and residues (including vegetable and animal substances), forestry and its afferent industry, along with some fractions of industrial and municipal waste.Biofuels are neutral regarding to the greenhouse effect. A fuel is told to be neutral when it is not producing any CO2 surplus in the atmosphere while it burns. Biofuels are neutral because at their burning in the atmosphere is released an equivalent amount of carbon dioxide which was fixed through plant photosynthesis when the raw material from which biofuels were obtained was produced.According to the existing regulations, only the products presented below can be considered as biofuels:

a. bioethanol: ethanol producedby fermentationofbiomassand/orthe biodegradable fraction ofwaste;

b. biodiesel: amethyl-esterproduced bytransesterificationofvegetable or animal oil, of a dieselquality;

c. biogas:a fuel gas producedfrom biomassand/ or from thebiodegradable fraction ofwaste,that can be purifiedto natural gas quality;

d. biomethanol:methanol producedby fermentationofbiomassand /orthe biodegradable fraction ofwaste;

e. biodimethylether:dimethyletherproduced from biomass;

f. bio-ETBE (ethyl-tertio-butyl-ether): ETBE produced on the basis of bioethanol. The percentage by volume of bio-ETBE that is calculated as biofuel is 47 %;

g. bio-MTBE (methyl-tertio-butyl-ether): a fuel produced on the basis of biomethanol. The percentage by volume of bio-MTBE that is calculated as biofuel is 36 %;

h. synthetic biofuels: synthetic hydrocarbons or mixtures of synthetic hydrocarbons, which have been produced from biomass;

i. biohydrogen: hydrogen produced from biomass, and/or from the biodegradable fraction of waste, to be used as biofuel;

j. pure vegetable oil: oil produced from oil plants through pressing, extraction or comparable procedures, crude or refined but chemically unmodified, when compatible with the type of engines involved and the corresponding emission requirements.

The time when ethanol was considered only a fuel solvent of restricted utilization has passed. Currently,ethanol isconsidered abasic componentof gasoline,due tothe high oxygencontentanda highoctane number-105-108.The expansion of biofuel production and utilization is due not only to the above mentioned reasons, such as the ones related to the reduction of artificial greenhouse effect. There are other reason for producing and using biofuels, reasons that are less evident at a superficial analysis. Oil prices,agriculturalsurpluses, the volatility of the Middle Eastarea(the mainoil-exportingregion), the attitude of Russia (the main supplier ofnaturalgas) and energy dependence(waste)have ledEuropean governments(and other industrialized countries) to stimulate production and utilization of biofuels. On top of that, ethanol production can be placedinrural areas, thus creatingjobsand providinglocalbudgets with financial resources. Every million liters of produced bioethanol contributes to the creation of 38 new jobs [2]. Ethanolalso brings a significant contribution to theenergyand economicsecurityof the country,being also the means to fight against gases that cause the greenhouse effect.

Fig. 1: Globalneeds(existingand expected) of oilcompared to existing and estimated production

Nowadays, the production and consumption of ethanol is increasing all over the world, with the most part being produced in North and South America. Currently, the industry of ethanol fuel is developing fast and securely. World leaders in this area are USA and Brazil. At this moment, 85 ethanol plants are functioning in the USA, 24 others are in construction, 19 plants are at the stage of modernization and another 50 are said to be in various stages of planning. Brazil has developed a policy regarding the use of ethanol as the only source of fuel for cars in the entire country; with sugar cane serving as raw material (sugar cane is produced locally in sufficient quantities). Three new ethanol plants of high capacity are built currently in Germany, in collaborationwith Sudzucker, a German sugar processing company(working also in Moldova),which will usesugarbeetasraw material.Sudzuckeralso plans tobuild two newplantsinAustriaand Belgium. The main factorforthe rapid growth ofethanolindustryis the increasingcostof oil.At the initial stages of development, the industry of ethanol production was subsidized because of the low ratio between gasoline and corn prices. For example,inthe late 80sand early 90s,theU.S.price ofcornwas$ 2abushel.At that time, the cost of gasolinewas between1 and 1.5dollars pergallon (3.785liters). Whilecornpriceshaveremainedmostlystable, gasoline prices have almost doubled,so thatethanolhas becomeverycompetitive, its cost of production being 1$ per gallon. The situationin the EU issimilar:one ton ofethanolcosts200 ,less thanone ton ofpetrol.Today, ethanolproductioniseconomicallyfeasiblewithout the need ofsubsidies.In additiontocostbenefitsandenergy independence, the environmentplayed an important role in the rapid developmentof this certain industry.Ethanolasa gasolinecomponentproduces a fuel thatburnsbetter andwhich, atthe same time, increasesthe octane number and decreases gasemissionsinto the atmosphere.For this reason,both the USAand the EU havepassed laws onreuse of this fuel,by increasingthe share ofmixtureof ethanolandgasoline.The perspective of development of world biofuel production depends on manyfactors, includingoil prices,presence of cheapfodderforlivestock,government support,technological progress(which mayreducethe price ofsecond generationbiofuels),thecompetition fromnon-traditionalfuelsand alternative mineralresources.What isbioethanol?Bioethanolisethanolwith 98%purity, produced frombiomassand /or the biodegradable fractionof waste,mainlyfor use asbiofuelfor gasoline engines. Ethanolis nottoxic,is solublein water and does not pollute it. In cases of discharges, ethanol decomposes faster than gasoline components. There are two types of ethanol: hydrated and non-hydrated (99.9%). Water-basedethanol (95% of volume) is usedas asubstitute for gasoline in card with modified engines (in Brazilis mixed withregularfuelat a rateof 20-24%and requires noengine modification). Demand for non-hydrated ethanol is decreasing, while demand for hydrated ethanol is increasing.

For ethanol-based gasoline there are used markings that contain both letters and numbers: E5,E7,E10,E85. The letter E comes from ethanol, while the numbers show the percentage of ethanol contained in fuel (weight by volume). Currently, for most cars, the best fuel is the one containing 5% of ethanol (E5). Ahigher concentration ofethanol(upto 85%,E85)is characteristic forflexiblefuel vehicles(Flex-Fuel). Used as biofuel, ethanol reduces the aromatic hydrocarbons in the fuel, increases the octane number (with 2-3 units for E10), prevents engine overheating, performs the role of antifreeze for fuel pipes, does not cause dirty fuel injectors, and most important, reduces releases in the environment. The development of the world industry of biofuels becomes economically rentable due to the increasing prices of hydrocarbons. Ethanol is a weaker energy source than gasoline: the distance traveledby acar consumingE85fuelinunit volumeis about75% ofdistance traveledby anordinary car. Regularcarscannotrun onE85(onlythe ones withFlex-Fuel), althoughinternal combustion enginescan operatewithE10(or evenE15). The mixture ofgasolineand ethanolknown asE10 has been used byAmericanmotoristsfor over25 years and is accepted foruse byall majorU.S.car-makers. At Brazilian gas stations, motorists are offered E20 or E25 under the name of regular gasoline or azeotrope of ethanol. Ethanol, beingcheaper thangasoline,causes manytodissolveE20with azeotrope,leading toa concentration ofupto 40%ethanol.Cultures, technological procedures and types of bioethanol

One of thebasicmethodsusedin obtainingethanolis themicrobiologicalmethod-basedon thefermentation oforganicproductscontainingsugar orstarch (beet, potatoes, rice, corn, rapeseed, flax,sunflower, etc.). In result, there is obtained something similar to the classical C2H5OH,which thengoes through ashorterpath of distillation.A ton of corn (i.e.thestarchthat is contained in the ton) can produce more than 410 liters of ethanol, while a ton of rye can make no less that 375 liters and a ton of millet 510 liters. Cassava has also a great potential. Among countries listed as big producers of cassava there are China, Nigeria, and Thailand. In Thailandthe costof producingbioethanolfromcassavais about $35 for an equivalent barrel of oil. It should be noted that besides ethanol, a ton of corn can produce corn oil, carbon dioxide, sweeteners (glucose and maltose syrups), dry bard, feed for livestock. These productsoftenprovidehigher incomethanthe very production of bioethanol. Today, an average capacity plant produces 150 millionliters ofethanol annually.

Fig. 2: A diagram which explains how to obtain main fuels

World production of ethanol

The first people who started to convert alcohol into fuel were the Brazilians, who now use it on circa 20% of cars in the country (7 cars out of 10 are flex cars), which are supplied at 29 thousand specialized stations. In the CIS the first ethanol-producing plant was opened in September 2006 in Kazakhstan. In 2009the global consumptionof ethanol fuel was 74 billion liters (58.65milliont), representingan increase of400%compared to 2000.Added to gasoline, this ethanol is the most voluminous product which is added to gasoline, its share in 2009 was about 6% of the global oil consumption (in the EU the share was 3,24%, contravention of Directive2003/30,whichestablished5%). Currently there are 575 ethanol-producing plants with a capacity of 80,631 million tonssummary,in approximately40countries. Most ofthe production(in 2009)was concentratedin the U.S.-54.3%and Brazil-33.7%. The U.S. produced 40 billionliters of ethanolfromcorn(according to theRFA RenewableFuels Association), and Brazil producedabout 25billiongallons ofethanolfrom sugarcane(according to BrazilianSugarcaneIndustryAssociation)[4].Addingethanol ingasolinein 2008-2009saved circa 44-46milliontons of oil, which is equivalent tothe annual consumption of the Netherlandsand Polandcombined. Use of ethanolfuel in 2009reduced U.S. gasoline consumption by 10%,EU- 3% andGermany-4.4%.

Oncontinents, the leader inethanolproduction(in 2009)is North Americawith 41.8 billion liters, or56.5%of the world total, followed bySouthAmericawith25.4 billion liters (34.3%). EUisthe third largest producerwith3.7billionliters(5.1%, an increase of 30% compared to 2008)andSouth EastAsia is the fourth- 2.8billionliters (3.8%), of which only China producedtwo billionliters. Australiaand NewZealandhave produced0.2billion gallons of ethanol summary[4].In 2010Australiaproduced350 millionliters of biofuel, whichis less than1% ofthe fuel market.In Africa, the leader in ethanol production is the South African Republic, where the molasses are used to produce 70% of the ethanol made in this region.The EU(18 ethanol producers of 27 memberstates) hasobserveda sharp increase inethanol production. Franceremainsthe main producer(33.3%of total)whichincreasedits production in 2009 by 25%compared to 2008.Germany- 20% of thetotal (+32%: from568-750million liters)and Spain-12.4%of total(+46%: from346-465million liters) holdpositionsnumber two and number threerespectively. Some countrieshave almostdoubledproductionAustria (+102%:from 89millionto 180million liters)and Sweden(+124%:from 78 to175 million liters),withsharesof 4.8%and4.7% inthe EUs total production. Such increases in production have led to increases in consumption: by 23%in 2009compared to 2008(from3.5 to4.3 billionliters).The mainconsumeris Germany-1143million liters(0.904million tons), France- 798million liters(0.633milliontons)and Sweden-377million liters(0.299million tons). European consumersdeficitis covered byimports fromBrazil, though these have droppedin 2009to 200million liters[4]. Table 1. A comparative analysis of ethanol and gasoline (prices are for September the 20th, 2010)

CountryPrices for 1 liter of gasolinePrices for 1 liter of ethanolCost of production for 1 liter of ethanol

1.USA0,72 USD0,55 USD0,33 USD

2.Brazil1,63 USD0,61 USD0,19 USD

3.EU (Rotterdam)1,92 USD0,82 USD0,55 USD

Source: developed by the authors after the procession of various data By 2015the ethanol production is expected to increaseto 162billionliters, which will surpassthe demand of 150billionliters(according to the reportmadejointly byFAO, the UN Economic Commission forLatinAmerica(ECLAC)andthe BrazilianBank of Economic and SocialDevelopment(BNDES). The impact ofethanolproduction and consumption onnatural and social environment

Environmentalistshave various opinionsaboutbioethanol. In 2006 intheU.S.through the use of bioethanolit waspossible to reducethe release of greenhouse gases by 8million tons, a quantity equivalentto the one emanated by1.21millioncars. According tothe U.S. Departmentof environmental protection,fuelrepresentsthe largest source of artificial carcinogens. Due tothe addition ofethanol,gasolineincreases itsoxygen content; ethanol contributes to theburningof gasolineand reducesits releaseof carbonmonoxideby 30%. Ethanolalsoreduces theemanationof toxic substances by 30%andvolatile organic componentsby about 25%. Analyzing thelife cycleof ethanol,the U.S.Department of Agriculture concludedthatethanolproduces134%of the energyspentin its growing, harvesting and processing, while gasoline returns only 80% of the energy used for its production. According toforecastsmade by theOECDandFAO,by 2020biofuelconsumption will increasesharply,leadingto the factthatabout 13% offeedwheat,15% of vegetable oils and 30% ofsugarcanewillbeused inthe productionof biofuel. Increasingoil priceswill lead to agrowingdemandfor raw materialsfor biofuels, and in case of considerable increasesin oil pricesin manycountries,biofuel productionwill be profitableeven inthe absenceof certain policiesof support (Brazil hasalready reached thesituation wherethere is no need of subsidizing the production ofethanol from sugar).The World Bank Report states that the change in the structure of used lands was initiated in 2003, whencountriesstartedto developpolicieson the production of biofuels.In 2008the total areaoccupied byenergy cropswas36 millionha, which is about 2times morecompared to 2004.According to theUNrepresentatives,the global crisiscaused byhigher pricesof agricultural productsendangers thefateof about 100millionpeople, which will suffer famineandsocial and politicaldisasters. Ifcountrieswill continueto invest inbiofuels instead ofgrain, then by 2025 the number ofpeoplegoinghungrywill increaseby 600million [3].While the wheat market has experienced an explosive context due to impact of the withdrawal of a major producer (Russia, which has blocked exports last year), tensions on the corn market are extreme. Theratio ofgrainreservesto consumptionis 27%,butthere are worries about the small amount ofquality wheat availablefrom leadingmarket players. For corn, however, the ratio ofreservesto consumptionis below 16%.Here, whiletotal production decreased greatly, the demand forethanol andfeedproduction has risen. FAO's monthly indexshoweda recordof230.7points(July2011)in comparison with223.1points in December 2010. This indexmeasuresprice changesofa basket ofproducts includingcereals, vegetable oils, dairy, meatand sugar.It isthe highest levelsince 1990.

Anothermatter ofoverall efficiency ofproduction ofbiofuels thatshould be consideredis related tothe amountof biofuelsEroEI(ERoEI=HowmuchEnergy is Returned on Energy Invested =How much energyyou getfrom the energy invested?)Biofuelshave asmallERoEIexceptfor biodieselfrom algae(see alsoTable 2). If the engine efficiency is takeninto account (TTW- Tanktowheel), the energy efficiencyof algae-based biodieselis approachingthat ofgasoline.When computing the ERoEI, most energy alternatives fail, even at a shallow examination. Commercialhydrogenis a goodexample of howto consume moreenergy than produce it. Common sourceforhydrogenisnaturalgas.Natural gas istreated withsteam.Steam is produced byboilingwaterandusingmorenaturalgas, oil, coal.Burningis producing carbon dioxide which has a greenhouse effect. Common sensesaysthat commercial hydrogenproduced fromnatural gasis not asolutionto reduce emissionsof greenhousegases.Table 2. EroEI values for biofuelsWTT efficiency of production and distributionTTW efficiency of internal combustion engines WTW efficiency of production, distribution and utilization

Gasoline100,33,0

Rapeseed-based biodiesel 3,20,451,44

Biodieselfromusedfoodoils50,452,25

Algae biodiesel >50,45>2,25

Bioethanol from corn starch 1,340,30,402

Bioethanol from cellulose 2,20,30,66

Hydrogen from natural gas 0,5280,4050,214

When speaking of fuel, the sizes of areas meant for cultivation should also be considered. 1 haofrapeseed producesabout 1ton ofbiodiesel. Aone-waytruck for Giurgiulesti - Criva(350 kmto 25litres/100km)consumes130.5liters ofdiesel.Oneway, oneTIR=0.130ha cultivated for a year!For the reasonsoutlined above(negative impacton environment, in particular on soil, increasedproduction ofgreenhousegasesin the soil), the optimalsolutionsare ecologically integratedsystems, whichpursue tosimultaneouslyproduce biofuels, land rehabilitation and reduce emissions ofgreenhousegasesin the soil.Standards and policies in various states

Commercial operations with oil are a sector of the worlds economy in which the main development factor isnt represented by market mechanisms, but by political decisions of a national and international level. Therefore, asthe experience ofEU countriesand America shows, the problem ofreplacinggasolinewith biofuels(mainlyethanol)is onlya matter of policy, whosesolutiondepends onthe countrys policy.The mostconcrete example ofsuch a policypromotedin recent yearsis in the U.S.

Production and consumption ofethanolis increasingboth inU.S. andworldwide. In the U.S.ethanoldemandwas caused byamendments to theActonclean air from 1990,which specified the use of oxygen-enriched fuel in areas with an air pollution that exceeded the allowable maximum, especially in megalopolises. In early2007,U.S. President George W. Bush, inhis annual addressingto the Congress,proposed the 20to10 plan,which aimed to reducegasolineconsumptionby 20%for 10 years,reduceoil consumptionby 10%and replace circa 15% ofpetrolwithbiofuel. That same year the law onEnergyIndependence and Security(EISAof2007) was signed, which stated that by 2022, the country was expected to produce 36billion gallons of ethanol. Of these 36 billion gallons of ethanol,16 billion are to be producedfrom cellulose. Inthe program ContemporaryEnergyInitiative the U.S.intendsto processagricultural waste and produceethanolcapableof replacing75% offuelimported fromunstable regions.According to theU.S. government,in the last30 yearsthe U.S. has boughtfromOPECcountries oilworth 7trilliondollars. Ethanolindustryin 2006 broughtthe U.S. economy160,231new jobsinall sectors,including20,000in construction; household income increasedby 6.7billion dollars;the budget gained 2.7billion and 2.3billion dollars were brought on account offederalandlocaltaxes[3].In July 2011the U.S.announcedthat for the firsttime inits economichistory more corn was usedto produceethanolthanlivestockfeed. Thus,in the last 12months for ethanol production were used5.05billionbushels of corn(1bushels= 27.3 kg)or 40%of the harvest, whilefor birds andanimals- 5billionbushels.This increasehas led toariseincornpricesby about90% atinternational stock exchanges,given the fact that the U.S.is the mainproducer ofcorn.CurrentlytheU.S. uses for ethanol production15% of theharvestof sorghum and14% ofthe cornone.In 1997theEuropean Unionadoptedthe White Charter,whichindicatesthe need to increasethe share ofbiofuelsusedin transportation. This follows fromthe need to provideanadditionalquantityofliquidbiofuelgiven the unpredictability of oil prices, and because the reserves of fuel will run out in the future. For these reasons,one of theprioritiesis to reduceproduction costsof biofuels inEurope.Another area ofaction wouldbe to createtax exemptionsandgive subsidiestobiofuelproducers.EUs Green Charter, adoptedin 2000, stressed the importanceof biomassfor the energy security. It wasrecognized thatforestry andagriculturalpotentialis not used completely. The use ofbiomasshelps to reducegreenhouse gasemissionsat a rate of 40-80% comparing with fossilfuel,improve thelocalenvironmental situationand createadditional workplaces.The final reportof the Green Charter(2002) notedthe technical possibilityofreplacing20%of dieselandgasolinewithbiofuelby 2020 if the necessarypolitical action will be taken.

In2003 the Directive30 wasadopted,a directive which setgoalsto replaceliquid fuelswith biofuelsto 2%by 2005and 5.75%by 2010.In December 2008 at theEU Heads of Statesummitin Brusselsthe so-called20-20-20 plan was also approved. This plan meansto reducetoxicemissionsinto the atmosphere with 20% by 2020, compared to1999,increase the share of renewable sources inthe energy balanceto 20%and also reduceall energycosts by 20%.The most importantdevelopmenttrend on theworld marketofpetrol andethanolis the absorptionofethanolproducers byoil companies. The largestindependent oil companyin the U.S.,ValeroEnergy Co.(whichhas 15oil processingplants with a capacity of 3.105 million barrels perday, whichrepresents 10% of all oil processing plantsin thecountry),has announced theacquisition ofsevenVeraSun ethanol-producing plants for477million dollars. In this wayeven while loweringfuelconsumption, companiesareinvestinginthe biofuelsindustry[5].The future ofbiofuelsis not yetclear,because ofcompetition fromfossil fuels and environmental pollution. The most unclear part is referring to the extent to whichlandsurfaces needed to producebiofuels can be reduced. According to forecasts of theArab Center for Research,by 2015oil resourceswill decrease byabout 60% andtheir extractionwill be reduced by30-40%, whileworldenergyconsumptionby2030 willincreaseby 60%[3]. By2030,from all thebiofuels, ethanolwillregisterthe highest growth asitsproduction costwill decreasefaster thanproductionof biodiesel[2].Currently the Republic ofMoldova importsnearly 100% ofthe required energy[1]. Recent concerns aboutfuelsuppliesandrising costsof electricityhaveled the Moldovan Government to examinethe domestic productionof bio-energyas a possibilityto ensure energy security,independenceand sustainabilityof the country. Corn and wheat feed provide excellentraw materialforethanol fuelproduction andquantities producedinMoldovaso far indicate the possibility of developinga sustainableand viablebusinessin this area.BIBLIOGRAPHY1. Studiu preliminar al fezabilitii pentru producerea etanolului n Moldova. ftp://ftp .moldova.cnfa.org/ REPORTS/Producerea_Etanolului.pdf.;

2. , : , (http://www.rusrev.org, vizitat: 11.08.2011);

3. .., : // I , , 2, 2008 (http://www .rusus.ru, vizitat: 10.08.2011);4. ., ., , , // http://www .bioethanol.ru (vizitat: 11.08.2011);

5. ., : , // http://www.newchemistry.ru (vizitat: 11.08.2011).PAGE 1