07 July 2008 22:09 [Source: ICIS news]
HOUSTON (ICIS news)--Increased investment in biofuels will decrease the price for oil and mitigate the global food crisis, the heads of the world's main renewable fuels associations wrote in a letter to the heads of the G8 nations on Monday.
The letter comes amid a backlash of public opinion against biofuels for contributing to a run-up in food prices, a contention disputed by the biofuels industry.
“There can be little question that the increased supply of biofuels is not only lowering oil demand, but also helping to mitigate the devastating impacts of volatile oil and gasoline markets,” the letter said.
While conceding that “growth in biofuel production” is one of the factors increasing the price of food around the world, the letter listed other issues including poor harvests, bad weather, increased demand in ?xml:namespace>
The letter also claimed gasoline prices would be $21/bbl (€13/bbl) higher if not for biofuels, and blamed increasing food prices on rising fuel costs incurred by farmers.
The letter was signed by Robert Vierhout of the European Bioethanol Fuel Association, Gordon Quaiattini of the Canadian Renewable Fuel Association, Bob Dinneen of the United States Renewable Fuels Association and Marcos Sawaya Jank of the Brazilian Sugar Cane Industry Association.
($1 = €0.64)
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