Biofuels

Bio-ethanol, which is produced by fermenting crop sugars or starches, is a leading fuel additive. The fermented starch is then distilled into alcohol.  The excess water is removed so the resulting ethyl alcohol ( ethanol)  is very pure - 200 proof.   Only the starch portion of the corn, which is about 70% of the kernel, is made into ethanol.  The remaining portion is left over in the form of a co-product called distillers grain. This is a highly nutritious animal feed that contains all the remaining fats, oils and protiens after the starch is taken out and converted to ethanol. 

The U.S. is the top world producer of ethanol biofuel making 28 billion litres in 2007, most of this from corn. Brazil is second with 22 billion litres derived entirely from sugar cane.  Corn alone accounts for more than 40% of U.S. fertilizer consumption. Most automobile engines are designed to accept up to 10% ethanol. This figure is expected to climb higher with the advent of increasingly environmentally-friendly "flex fuel" vehicles and government policy directives. Biodiesel, which is produced from plant oils, is added to petroleum diesel. It is in particularly high demand in Europe and in several of the most populous Southeast Asian nations. World ethanol and biodiesel production has already doubled over the past four years. And it is expected to more than double yet again by 2010. Currently world biofeul production represents 1% of the production of fosssil fuels. There is room to grow. New research into hydrated ethanol, ethanol powered fuel cells, trybrids and turbo chargers will continue to expand as goverments and companies try to wean themselves off their dependence on oil as it continues to hit record prices. The May 2008 US Farm Bill Conference Report outlined an important new production tax credit for the development of cellulosic biofuels (an emerging technology) , which can be produced from perennial grasses, trees, and other non-food feedstocks. With an abundant and diverse source of feedstocks available, cellulosic biofuels hold tremendous promise as a home-grown alternative to fossil-based fuels.

Production of Biofuels (billion gallons) FAO (Aug 2009)
 

Biofuels in High Demand in the Developing World

Brazil is the largest consumer of K20 (a type of potash) as a percentage of fertilizer use, with a current growth rate of 7.6% per year. Its fertilizer market represents 65% of all South American consumption. In China and Southeast Asia, potash-based fertilizers are being used to increase corn and grain crop yields per acre to ramp-up bio-ethanol production. This also applies to cattle feed and the growing demand for high quality fruits and vegetables. China's current grain production is over 41 million tonnes. By 2030, the demand is expected to triple to 156 million tonnes.