Russia may become one of the world leaders on biofuel production

Russia may become one of the world leaders on biofuel production, according to Head of Comission on AIC of Russian Union of Industrialists and Entrepreneurs Ivan Obolentsev.

Referring to the estimations of Ministry of Agriculture of Russia, he reported, that domestic agriculture may increase its grain production by 20 mln tonnes and that is sufficient to annually produce 7 mln tonnes of bioethanol. Currently, the country realizes six projects on biofuel production organization. It is supposed that in the nearest several years 25 of such enterprises will appear.
However there are serious problems for accelerated development of biofuel production in Russia as well as in the world, noted I. Obolentsev.

According to the experts and market participants, in the nearest time biofuel cannot and should not substitute mineral oil. To produce bioethanol in the necessary volumes there is just not enough grain, added he.

According to him, by 2030 the world needs in energy would rise by 50%, by as many the food demand is expected to increase. The growing demand would lead to the prices growth for agricultural raw material, noted I. Obolentsev.

AgriMarket