Rocky road ahead to "Green Opec"

       Despite certain advantages Asean countries have in producing biofuels,competition remains intense, making the path toward an "Opec of Biofuels"anything but smooth, according to Richard Jones, deputy executive director of the International Energy Agency (IEA).
       "I think that would be impossible [for Asean to form an Opec of Biofuels]because, unlike oil, biofuels are based on agriculture and any culture has agricultural potential," Mr Jones said in Bangkok recently.
       If supply is not limited, collaborative efforts to control prices would not be feasible, he added.
       "But I do think that, as with any traded goods, the countries that have a comparative advantage will be the countries that become the most important producers. I think that in that regard, because of your climate, fertile soils and plenty of water, I think that there will be a comparative advantage."
       Apart from being close to large markets such as China, Asean countries have experience in growing the necessary and most appropriate crops for biofuels, he said.
       Thailand, however, should switch from producing ethanol from molasses directly to using sugar juice from sugarcane.This would result in achieving full efficiency, said Mr Jones.
       Energy Minister Wannarat Channukul said at the recent Bangkok Biofuel 2009 seminar that Asean countries had the potential to be an export hub for biofuels and alternative energy.
       Paolo Frankl, head of the IEA's Renewable Energy division, cautions that biofuels will never become widely used in transport.
       "I think it's important to realise that biofuels will never substitute for 100%of transport fuels," he said."In the long term, our projection is that they will arrive at 25% by 2050. But they will be an important part of the solution and Asean countries can play a very good role, in particular for regional markets and also to some extent for European markets, but there still will be a difference to Opec."
       He explained that this was due to the availability of land resources and environmental challenges.
       An integrated approach that looks at the management of natural resources in the most efficient manner possible should be undertaken by Asean countries.
       Making sure that biofuel production does not limit the availability of food for the population, for instance, should be the first priority, said Mr Frankl.
       Brazil, for instance, burns the leftover residue from the sugarcane used to produce ethanol for power generation for its mills. The excess electricity is then sold.
       In the longer term, the task should be to develop more non-food feedstocks through the introduction of secondgeneration technologies. This will require time and international collaboration, said Mr Frankl.
       In the meantime, Mr Jones recommended countries in Asean to develop certification procedures not only to overcome non-tariff barriers but also to earn a reputation among consumers.
       "Certification can sometimes allow you to charge a premium price for your product if you can point to a certification that shows your feedstocks were raised in an environmentally friendly manner."
       For instance, cutting down a forest to make way for sugarcane releases tremendous amounts of carbon dioxide.