Economic Issues: Alternative fuels

Economic Issues: Alternative fuels

Introduction

The purpose of this study is to expand the boundaries of our knowledge by exploring some relevant facts and figures related to the Economic Issues on Alternative fuels. Standard fuel sources include nonrenewable energy sources such as petroleum-based products, natural gas, coal, propane, and nuclear power. Alternative fuels on the other hand refer to any non-conventional source materials that include biofuels (e.g., biodiesel, ethanol), hydrogen, wind power, hydroelectricity, geothermal energy, and solar power. The energy from alternative fuels may also be stored for later use using chemical storage systems (e.g., batteries, fuel cells). Alternative fuel sources are non-fossil fuel based and are an integral a part of a renewable and sustainable energy practice. Although fossil fuel substitutions have notable drawbacks, the development and implementation of alternative fuel technologies coupled with extreme conservation measures may provide industrialized nations a means to wean their historical dependence on fossil fuels without comprising economic prosperity (Morton &Ralph, 2012).

Discussion & Analysis

Ethanol production

Ethanol production and demand in the United States has increased significantly in the past decade, but gasoline consumption has paralleled those increases. Ethanol production technologies are inefficient, consuming as much energy during production as that is released during combustion. Corn-based ethanol currently meets only about 4 percent of the total U.S. fuel needs; distilling the entire corn crop would only satisfy less than one-fourth that demand. Ethanol from corn remains a viable alternative fuel in the United States due to the relative abundant corn supplies, an established infrastructure and, perhaps, more importantly, a 51 cents per gallon federal subsidy (Meyer, 2012).

Another path to biofuels is growing oil crops and plant oil-based sources for use in diesel engines. Plant oil undergoes a process called esterification, joining two organic molecules together. Alcohol and a catalyst (a substance that enables a chemical reaction) convert the oil into an ester fuel called biodiesel. The process is more efficient than alcohol distillation, and many crops grow seeds that are rich in oil. Soybeans are a premium choice in the United States because they are grown on an industrial scale, but the amount of fuel obtainable per acre is even less than with corn ethanol, making the product viability difficult. In Europe, biodiesel stems chiefly from palm plantations in the tropics. The plantations are environmentally destructive and clearing land for them produces more carbon dioxide than the oil saves from not using fossil fuels. Other oil crops face similar problems, balancing energy acquisition with negative consequences such as environmental degradation and food production limitations. Biodiesel is also being made from oil-based plant substances that have been processed, such as vegetable and other cooking oils discarded by restaurants and food processors. As with other oil crop biofuels, the problem is scaling, as only a very small proportion of the world have the technological infrastructure to utilize biodiesel and the amount available would not be sufficient for residential and commercial energy needs (Lee, 2007).

Ethanol consumption

Ethanol consumption has increased significantly since 2006; there has been a sharp increase ...