IEA warns against retreat on biofuels

Biofuel production is critical to meeting current and future fuel demand in spite of its possible role in driving up food prices, the west’s energy watchdog has warned.

Amid signs of a growing backlash against biofuels in the wake of the worst food price spike since the 1970s, the International Energy Agency said that the crop-based fuel was vital to meeting current and future demand.
Biofuels already make up about 50 per cent of the extra fuel coming to the market from sources outside the Opec’s oil cartel this year. This explains why fears of a retreat from biofuels this week helped drive oil prices to record levels.

William Ramsey, deputy executive director at the IEA, said: “If we didn’t have those barrels, I am not sure where we would be getting those half a million barrels [from],” adding that Opec has said it would not raise supply.

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