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Biofuel co-products as livestock feed - Opportunities and challenges








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    Book (stand-alone)
    Biofuel co-products as livestock feed - Opportunities and challenges, Technical summary 2014
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    Distillers grains (DG), a by-product of the alcoholic drink and beverages production, have been fed to livestock for several years, initially to pigs and dairy cows. The upsurge in the use of DG was spearheaded by the search for transport fuel other than that from fossil fuels, which in recent years has been supported by a large increase in research funding into the use of co-products. The co-products are the residues after extraction of the biofuel – ethanol or biodiesel. Currentl y, these coproducts are an important feed resource in over 50 countries, for ruminants, non-ruminants and fish. Biofuels contribute to the twin objectives of increasing fuel security and as a tool in the reduction of emissions of green house gases (GHG). As the majority of currently used feedstocks to produce biofuels are crops grown on agricultural land, the requirements for food, feed and fuel must be balanced so that the quest for biofuels does not result in an inflationary ri se in the cost, or shortage, of food or feed. This raises the question of second generation feedstocks from cellulosic sources, the use of crop residues and stubbles and woody material grown on marginal land with a minimum of resources, including irrigation. Also it raises the potential for promoting little-used feeds, from non-conventional feedstocks, of which some may require detoxifying to produce safe livestock feed. The co-products produced by the biofuel industry are disc ussed below in two main headings: a) produced along with the ethanol production, and b) produced along with the biodiesel production.
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    Algae-based Biofuels
    Applications and Co-products
    2010
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    The possible competition for land makes it impossible to produce enough first generation biofuel to offset a large percentage of the total fuel consumption for transportation. As opposed to land-based biofuels produced from agricultural feedstocks, cultivation of algae for biofuel does not necessarily use agricultural land and requires only negligible amounts of freshwater, and therefore competes less with agriculture than first generation biofuels. Combined with the promise of high productivi ty, direct combustion gas utilization, potential wastewater treatment, year-round production, the biochemical pathways and cellular composition of algae can be influenced by changing cultivation conditions and therefore tailored on local needs. On the other hand, microalgae, as opposed to most plants, lack heavy supporting structures and anchorage organs which pose some technical limitations to their harvesting. The reasons for investigating algae as a biofuel feedstock are strong but thes e reasons also apply to other products that can be produced from algae. There are many products in the agricultural, chemical or food industry that could be produced using more sustainable inputs and which can be produced locally with a lower impact on naturalresources. Co-producing some of these products together with biofuels, can make the process economically viable, less dependent from imports and fossil fuels, locally self sufficient and expected to generate new jobs, with a positive ef fect on the overall sustainability. This document provides an overview of practical options available for co-production from algae and their viability and suitability for developing countries.
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    Intra-industry trade in biofuels
    How environmental legislation fuels resource use and GHG emissions
    2012
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    We have seen significant volumes of intra-industry trade in ethanol between the United States of America and Brazil. A trend which started in 2010 and accelerated in the second half of 2011 with large quantities of ethanol crossing paths in trade between the two countries. While intra-industry trade of homogenous products is not new, it is typically explained by factors such as seasonality or cross-border exchanges caused by transportation cost differentials. None of the traditional market facto rs can explain the volumes of intra-industry trade in ethanol between the US and Brazil. Instead, it appears to be driven by differential environmental policy that aims to capture differences in production methods of the underlying feedstocks and processing methods based on credence attributes of biofuels. Environmental legislation is inducing the product differentiation that invites arbitrage between the two countries resulting in the two-way trade of an otherwise physically homogenous product; in so doing, additional fossil energy is consumed in the mutual exchange of ethanol along with associated GHG emissions and the policy costs to consumers are raised which may suppress demand further reducing the displacement of fossil fuels, both of which are in direct conflict with environmental objectives of many biofuel programmes. With tighter environmental constraints on biofuel production written into EU policy, the potential for competition for classes of renewable fuels increases and could extend its reach from bioethanol to include biodiesel and/or the underlying feedstocks in the EU, the US and Brazil. This would create additional opportunities for arbitrage among the regions as a result of disparate policy differentiation of biofuel products. We submit options to mitigate this through the use of a “book and claim” system under which each country could pursue its own policy objectives while acting in a coordinated fashion to reduce costs and emissions.

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