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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (1421)	8/2/2005 12:20:31 AM
From: Wharf Rat	Read Replies (1) \| Respond to of 24213

High prices fuel renewable energy drive VIC ROBERTSON WITH oil prices hovering around $60 a barrel and pushing up all input costs for farmers and growers, interest in alternative renewable resources is growing. This is closely linked to increasing European Union pressure for member states to meet green fuel targets, set at 2 per cent for biofuel usage in the current year. But despite lip-service being paid to this sector by the government, farmers and growers are facing the frustration of few real opportunities for non-food crop production to produce energy. With harvest underway, weather permitting, farmers are looking at prices for "red" diesel for agricultural use of 33-34p per litre against about half that level last year. High gas prices have also seen a near doubling of heating costs for crop drying and horticultural glasshouse production, with prices projected to rise to around 80p per therm in the coming winter. Other agricultural inputs, such as feed, fertilisers, plastics and chemicals, all showing increasing prices in line with energy cost rises with each 10p per litre increase in diesel prices costing the industry an estimated extra £60 million a year. Some oil industry analysts are suggesting the price of crude oil could go as high as $100 a barrel. Farmers' representatives are mounting a careful price watch with the aim of keeping members up to speed on cost increases while ensuring a dialogue with consumers. "We need to put some education process into effect not only to keep our members informed but also to pass on to consumers why farmers and growers need to see increases in retail prices," said Jonathan Pettit of the English National Farmers' Union. "We also aim to continue our dialogue with processors and retailers on ways in which these cost increases can be shared throughout the food chain." Part of the study will also consider opportunities for increasing the use of alternative fuel sources, such as biodiesel and bioethanol from farm products, with the aim of meeting the EU target of 5.75 per cent of fuels coming from renewables by 2010. Progress in this sector was given a modest boost recently in the shape of a high-powered, two-day conference on renewables in Cambridge. British Sugar pointed the way to increased bioethanol use in road fuels as a result of the creation of its new processing plant in Norfolk, which is due to come on stream in early 2007. The company pointed out that the inclusion of 5 per cent of bioethanol in petrol would be equivalent to one million less cars on the road in terms of reduced CO2 emissions. Speaking at the same conference, Lord Oxburgh, who recently stood down as chairman of Shell, said that in future the UK would need a diversity of fuel supplies and that biofuels would have a place. In Scotland, biofuel development is being led by the Motherwell-based Argent Energy plant, which processes callow and used cooking oil although, given the right set of economics, it would be possible to process virgin oils. Argent is one of the participants in the Scottish Biofuels Committee, which also includes the Scottish Executive and industry bodies, all intent on boosting the biofuels programme north of the Border, although all participants say that further government encouragement will remain critical. business.scotsman.com