The results of the production cost analysis for fuels are based on scenarios of crude oil prices of Euro 50, Euro 100, Euro 150 and Euro 200 per barrel and under consideration of the technical status for the years 2015 and 2020. Table 5 summa­rises these results.

1. Estimated biofuel production costs in 2015

Our modelling results (Fig. 4) show that in 2015 only biodiesel is able to reach competitive production costs and only at high crude oil prices. Biodiesel made from waste oil can compete with fossil fuels in the Euro 150/barrel and Euro 200/ barrel scenarios. Biodiesel from palm oil reaches competitiveness in the crude oil price scenario of Euro 200/barrel. Production costs for second-generation bioetha­nol are significantly higher than those of fossil fuels in all crude oil price scenar­ios. Furthermore, unlike for other biofuels, the simulation of different crude oil scenarios in Fig. 4 indicates that production costs for bioethanol from lignocel — lulosic waste is largely independent of the crude oil price levels. In addition, our simulation reveals that HVO and BTL are unlikely to be a reasonable alternative to other fuels as their production costs are significantly higher than the others.

2. Estimated biofuel production costs in 2020

At the crude oil price scenario of Euro 50/barrel, the production cost of all bio­fuel alternatives is too high to be competitive (Fig. 5), even when scale and learn­ing effects are considered for 2020. Again, biodiesel made from waste oil seems to be the most promising option. In the Euro 100/barrel scenario, waste oil bio­diesel production costs (Euro-Cent 55 per litre) are lower than those of fossil fuel (Euro-Cent 68 per litre), followed by the more expensive biodiesel made from palm oil (Euro-Cent 81 per litre) and second-generation bioethanol (Euro-Cent 86 per litre). At a market price of Euro 150/barrel, ethanol made from lignocellulosic waste becomes attractive. While production costs for fossil fuel stand at Euro-Cent 99 per litre, second-generation bioethanol can be produced for Euro-Cent 91 per

litre. In this crude oil price scenario, bioethanol is even cheaper to produce than biodiesel made from palm oil (Euro-Cent 98 per litre). However, biodiesel from waste oil (Euro-Cent 64 per litre) remains the most attractive option, cost-wise. The 150 Euro/barrel results are documented in Fig. 6.

First-generation biodiesel and first-generation bioethanol show an increase of overall production costs between 2015 and 2020 despite positive learning and scale effects. This is due to the influence of high raw material prices. One can note that all first-generation biofuels, except palm oil biodiesel, experience increasing production costs. In regard to palm oil biodiesel, advancements in production pro­cesses are capable of overcompensating the rise of feedstock prices.

There is a similar situation with HVO and especially BTL. The combination of relatively high raw material costs and high conversion costs make both types of biofuel uncompetitive. Although significant learning effects between 2015 and 2020 will lead to considerably lower conversion costs, HVO’s and BTL’s poten­tial as a substitute for fossil fuels is virtually non-existent. The related cost-sav­ing potentials are simply not sufficient to compensate the high raw material costs. Consequently, one cannot expect either of these two types of biofuel to be pro­duced at competitive costs, even though both have a higher energy density com­pared with other biofuels and, in particular, bioethanol.

When learning and scale effects are considered, second-generation biofuels seem to be the most promising alternatives to fossil fuels throughout all crude oil price scenarios until 2020. In detail, the most promising options in regard to production costs are biodiesel from waste oil and bioethanol made from ligno — cellulosic raw materials when produced at large scales.

Our results are in line with research from de Wit et al. (2010), who explain this order between those two types of biofuels by lower feedstock, capital and opera­tional costs. Compared to bioethanol of the first generation, the production of bio­diesel is associated with lower feedstock costs. In addition, capital and operational expenditures for the transesterification of oil to biodiesel are lower compared to the conversion process of first-generation bioethanol (hydrolysis and fermentation of sugar/starch crops). This initial advantage of biodiesel over bioethanol, how­ever, may impede the exploitation of positive effects associated with learning and a larger scope and, in consequence, may prevent the use of related cost-saving potentials for bioethanol.

Silvio Vaz Jr. and Jennifer R. Dodson

Abstract Analytical techniques are vital for the development of new added-value materials and products from biomass, such as liquid biofuels, by evaluating the quality and chemical composition of the raw materials and all materials and byprod­ucts in the production process. This also enables the evaluation and implementation of environmental laws and better understanding of the economics of new biomass processes. Different analytical techniques are applied to different biomass feed­stocks, such as sugarcane, soybean, corn, forests, pulp and paper, waste and agri­cultural residues, dependent on the final end biofuel product. This chapter highlights how the use of analytical chemistry can be used as a tool to ensure quality and sus­tainability of the biomass and liquid biofuels, with, some aspects of green analysis also considered.

1 Introduction

The technological development of modern society is increasingly resulting in the need for methods to control products and processes, to ensure that they fulfill quality standards, and to prevent negative impacts on the environment. The increasing demand from society for more sustainable and lower impact products has become important across all aspects of production, including in agricultural sector. The agri­cultural sector has proposed in recent years to reduce the generation of greenhouse

S. Vaz Jr. (*)

Brazilian Agricultural Research Corporation (EMBRAPA), Brasilia, DF, Brazil e-mail: silvio. vaz@embrapa. br

J. R. Dodson

Federal University of Rio de Janeiro (UFRJ), Rio de Janeiro, RJ, Brazil

A. Domingos Padula et al. (eds.), Liquid Biofuels: Emergence, Development and Prospects, Lecture Notes in Energy 27, DOI: 10.1007/978-1-4471-6482-1_9, © Springer-Verlag London 2014

gases through increased yields combined with the application of sustainable practices, e. g., lower tillage per area, a decrease in the use of agrochemicals, and a decrease in the water usage. One example of how agriculture could contribute to reductions in greenhouse gases worldwide is through the use of biomass for bio­energy applications, particularly the production of liquid fuels such as bioethanol and biodiesel from agricultural crops and waste products to replace petroleum feedstocks (Grafton et al. 2012; Norse 2012; Rathmann et al. 2010; Balat and Balat 2009; Goldemberg et al. 2008).

There are four main types of biomass which can be used to produce liquid bio­fuels: oleaginous, sugary, starchy, and cellulosic (International Energy Agency 2013). For instance, soybean (Glycine max) and oil palm (Elaeis guineensis) gen­erate oils for biodiesel production; sugar from sugarcane (Saccharum spp.) and sorghum (Sorghum bicolor (L.) Moench) and starch from corn (Zea mays) can be used to produce first-generation ethanol (1G ethanol); while bagasse, straw, and cellulosic wood are applicable for second-generation ethanol (2G ethanol). Each one has unique structural and chemical characteristics, which therefore require different analytical technologies and approaches to better understand the process­ing of the materials, the products formed and economic aspects. Analytical meth­ods are vital for enabling quality control of raw materials and products, providing accurate knowledge for the regularization of products and markets (Scarlat and Dallemond 2011; Orts et al. 2008). Analytical techniques can therefore support the development of new products and processes from biomass, helping to promote a bioeconomy (Gallezot 2012). Chemical analyses, either based on classical or instrumental techniques, play an important role in the exploitation of biomass as supporting technologies for all stages of biomass processing and for different bio­mass sources, including sugarcane, soybean, corn, forests, pulp and paper, waste and agricultural residues, among others (Feng and Buchman 2012; Sluiter et al. 2010; Orts et al. 2008).

Fundamentally, a liquid biofuel is defined as:

• Liquid state under normal conditions of temperature and pressure (25 °C and 1 atm, respectively);

• Lower vapor pressure and high energy content;

• Presence of oxygen in almost all biofuels;

• Obtained from a chemical synthesis process: biodiesel by transesterifica­tion (Meher et al. 2006); biokerosene by transesterification and esterification, followed by distillation (Llamas et al. 2012); and gasoline and diesel by Fischer-Tropsh (Balat and Balat 2009);

• Obtained from a fermentation process: ethanol by Saccharomyces cerevisiae strain (Balat and Balat 2009), and n-butanol by Clostridium acetobutylicum strain (Lu et at. 2012).

The practical application of analytical techniques for chemical analysis of feed­stocks and biofuels is discussed in this chapter in order to convey their potential use for technical or scientific applications. Alongside, some aspects of green anal­ysis, quality control, and technological trends are considered.

Fig. 1 Some chemical structures of fatty acids from oleaginous plants such as soybean. Author Silvio Vaz Jr

As stated before, like a refinery, it is still possible to obtain other products in the cultivation of microalgae, such as methane, biohydrogen, and ethanol. Some examples of these possibilities are presented as follows.

Methane. Since early studies on microalgae biofuels, the production of meth­ane biogas by anaerobic digestion of biomass was a main focus (Benemann 2012). This microbial conversion (of organic matter into biogas) produces a mix­ture of methane, CO2, water vapor, small amounts hydrogen sulfide, and some­times hydrogen (Gunaseelan 1997 in Huesemann et. al. 2010). This process has been successfully and economically viable despite the recalcitrance of some algal species to biodegradation and inhibition of the conversion process by ammo­nia released from the biomass. (Benemann 2012; Huesemann et al. 2010). For Huesemann et al. (2010),

Methane generation by anaerobic digestion can be considered to be the default energy conversion process for microalgal biomass, including algal biomass produced during wastewater treatment and for the conversion of residuals remaining after oil extraction or fermentation to produce more valuable liquid fuels.

Hydrogen. There are three main processes to produce hydrogen from microalgae: dark fermentation; photo-fermentation, and biophotolysis. The first involves anaer­obic conversion of reduced substrates from algae, such as starch, glycogen, or glycerol into hydrogen, solvents, and mixed acids. The second, these organic acids “can be converted into hydrogen using nitrogen-fixing photosynthetic bacteria in a process called photofermentation.” The latter, a biophotolysis process uses micro­algae to catalyze the conversion of solar energy and water into hydrogen fuel, with oxygen as a byproduct (Huesemann et al. 2010). Although these mechanisms were successfully proven in laboratory scale, they have not yet been developed as a practical commercial process to produce hydrogen from algae (Huesemann et al. 2010; Ferreira et al. 2013).

Ethanol. On the other hand, ethanol can be generated from two alternative processes: storage carbohydrates (fermented with yeast) and endogenous algal enzymes (Benemann 2012; Huesemann et al. 2010). The main process is “yeast fer­mentation of carbohydrate storage products, such as starch in green algae, glycogen in cyanobacteria, or even glycerol accumulated at high salinities by Dunaliella.” A self-fermentation by endogenous algal enzymes induced in the absence of oxy­gen has been reported for Chlamydomonas. Against the very low ethanol yield from both fermentation, several private companies are now reported to be developing ethanol fermentations.

Electricity and Gasification. The microalgae biomass can be dried and com­busted to generate electricity, but the drying process is fairly expensive even if solar drying is employed. The combustion and thermal process can destroy the nitrogen fertilizer content of the biomass and generate elevated emissions of NOx. In addition, the combustion process competes with coal and wood biomass that are cheaper than microalgae biomass (Huesemann et al. 2010). Although expen­sive, this can be a key factor for algae to achieve energetic balance and improve its sustainability. A lot of research is being carried in new and more effective drying techniques in order to reduce costs.

Oil. The significant quantities of neutral lipids, primarily as triacylglycerols, can be extracted from the biomass (green algae and diatoms) and converted into biodiesel or green diesel as substitutes for petroleum-derived transportation fuels. “Lipid biosynthesis is typically triggered under conditions when cellular growth is limited, such as by a nutrient deficiency, but metabolic energy supply via pho­tosynthesis is not” (Roessler 1990 in Huesemann et al. 2010). Further information on algae biodiesel is presented in the next chapter.

Wastewater Treatment. The nutrients for the cultivation of microalgae can be obtained from liquid-effluent wastewater (sewer); therefore, besides providing its growth environment, there is the potential possibility of waste effluents treatment (Cantrell et al. 2008). This could be explored by microalgae farms as a source of income in a way that they could provide the treatment of public wastewater and obtain the nutrients the algae need.

In particular, algae has a potential for recycling nutrients recovered from the wastewater (removing N and P), achieving higher level of treatment and gener­ating biomass. Compared to the conventional water treatment, these processes reduce overall greenhouse gas emissions, burning of digester gas derived from anaerobic digestion.

Biomitigation of CO2 emissions. In the majority of microalgae cultivation, carbon dioxide must be fed constantly during daylight hours. Algae biofuel pro­duction can potentially use CO2 in the majority of microalgae cultivation as car­bon dioxide must be fed constantly during daylight hours. Algae facilities can potentially use some of the carbon dioxide that is released in power plants by burning fossil fuels. This CO2 is often available at little or no cost (Chisti 2007). Thus, the fixation of the waste CO2 of other sorts of business could represent another source of income to the algae industry. This sort of fixation is already being made in some large algae companies in a trial basis though there is a lack of public data of the results yet. Although this is a very promising future possibility, and some species have proven capable of using the flue gas as nutrients, there are few species that survive at high concentrations of NOx and SOx present in these gases (Brown 1996). Public policies could also perform a great boost in this area depending on future CO2 cap and trade emissions or sustainability standards as shown in Chap. “Governance of Biodiesel Production Chain: An Analysis of Palm Oil Social Arrangements”.

in the Liquid Biofuels Industry

D. F. Kolling, V. F. Dalla Corte and C. A. O. Oliveira

Abstract Biofuels have emerged as a source of energy for many countries. Although the interest in developing this industrial sector might be sensitive to mar­ket issues, government policies can influence its supply and demand. This chapter provides a discussion on issues such as the supply, the demand, exports, imports, prices, and future perspectives of the global market of ethanol and biodiesel. We focus on Brazil and the USA, which are the leaders in these markets. We found evidence of a significant increase in the demand for biofuels in several countries, which contributes to their developing energy and environmental security and adds value to their agriculture sectors. Incentive programs for biofuels depend on gov­ernment policies. However, the production of biofuels differs in each country that we studied. The development of the biofuel chain is recent, and the supply depends on the whole structure of it and not exclusively on one institutional agent.

1 Introduction

Biofuel production started in the late nineteenth century when ethanol was pro­duced from corn and Rudolf Diesel’s first engine worked using peanut oil. Before 1940, biofuels were seen as viable fuels for transportation, but low fossil fuel [10] [11]

prices stopped investments and further development in biofuels. Interest in the production of these fuels re-emerged in the 1970s when Brazil and the USA began to produce ethanol on a commercial scale.

Sources of renewable energy are of great importance to national markets. The biomass and biofuel trade has been constantly growing, as it is driven by the increases in oil prices and by incentive policies for using biomass and biofuel to generate energy (Junginger et al. 2010). The dependence on oil and its derivatives has put the world’s economy, energy security, and environment at risk. In recent years, rapid growth in biofuel production has been observed around the world, and this growth has been supported by government policies.

The biofuel industry is a dynamic multi-sector that is involved in the system of fuel production and trade. The interest in developing this industrial sector is gen­erated from investor groups and is associated with economic, social, and politi­cal factors. In addition, biofuel production might be subject to market forces, as it depends on locations, the access to resources and the infrastructure for its genera­tion and distribution.

In addition to the economic aspects, the reduction of CO2 emissions has become an important driver of biofuel development. Interest in biofuels is rising because it represents an alternative fuel that shows superior environmental benefits to fossil fuels. Biofuels are also economically competitive and can be produce on a sufficient scale to impact energy demands considerably (Hill et al. 2006). This chapter provides a discussion on the relevant technical, economic, and administra­tive aspects of the global biofuel industry, and it describes initiatives in different countries.

Traditional biofuel technologies are presented in this chapter, including well — established processes for producing biofuels on a commercial scale. According to the International Energy Agency (IEA 2011), these biofuels are commonly referred to as first generation. The dynamic expansion of biofuel production pro­moted an increasing interest in economic studies that analyze the production, demand, supply, and trade of biofuels. These subjects will be discussed in this chapter.

At the current stage of PNPB, the institutional environment is crucial for the inclusion of oil palm family farmers in this production chain. Thus, the following is emphasized: implementing contracts with oil palm family farmers (a marginal portion of the business). There is tendency for the biodiesel plants located in the north—as well as those planning to initiate this business—to also verticalize their agricultural activities.

In the case presented in this chapter, the system imposes the debt discharge with the retention of the loan payment by the bank itself. Since the company is a kind of guarantor, by applying its own resources in the arrangement, it is consid­ered a sort of partner to the venture.

Given the attributes of the social transactions presented, the bonus system (premium payment for palm oil) is deemed as important to comply with the con­tractual agreement. This incentive encourages bilateral dependence, commitment, and credibility in the continuity of the relationship. The increased frequency of these transactions produces information between the parties, contributing to the agents’ reputation.

During the interviews, it became clear that the participation of the technical staff in the transaction strengthened the family farmers’ trust in the company, espe­cially because of their extensive knowledge of the region.

Thus, the technicians are key figures in the transaction as they are the interface between the purchasing department and the assurance of the supply quality.

The reputation and also the informal ties reinforce the different forms of coor­dination, which are important complementary elements in the transaction. Thus, the agents can build a reputation that increases the assurance that they will act within the expected ethical standards, which favors the investment of the parties involved in the transaction.

The social projects developed with palm were indicated by all respondents as a success case that should be replicated. The minimum quota of SCS to the north of the country is attractive, and, according to field research information, companies have already begun to perform their own mapping of family farmers that could produce palm oil in the Northern region. The goal is to plan an agricultural pro­duction that is in line with the needs foreseen of the processing plants.

There are several production routes for advanced liquid biofuels; however, none have yet reached the fully commercial stage. An overview of the biomass-derived biofuels production is shown in Fig. 1. Biomass is produced via photosynthesis, which is then processed either by biochemical or thermochemical routes to make liquid biofuels like bioalcohols, biodiesel, and biosynfuels. The biorefinery con­cept, usually based on either biochemical — or thermochemical routes, is exploited to produce biofuels from single or multiple feedstocks with value-added co­products and heat and power generation (IE A 2008). In fact, the production of high-value chemicals and bulk quantities of low-value biofuels maximizes the return from biomass feedstock, thereby improving the economic performance of advanced biofuels in a similar fashion as do the oil refineries nowadays. There is no single technology as of now that can use any feedstocks for biofuels process­ing; therefore, on-going research at laboratory, pilot, and demonstration plant is warranted. Such initiative will perfect the processes and technologies tailoring them to different feedstocks. At the moment, it is not clear, which feedstocks,

(Electricity)

Fig. 2 A network illustration to show the applications of products from thermochemical and biochemical conversion routes processes, and pathways will yield the minimal-cost biofuels or otherwise have the maximum potential for cost reductions over time. A network diagram to illustrate the application of products from biochemical and thermochemical routes using biomass feedstocks is shown in Fig. 2.

Both gases and liquid oil products from the reactor were analyzed using a Hewlett- Packard GC equipped with a Supelco Plot Q column and a GC/MS, respectively. Similarly, the liquid oils could also be analyzed using a gas chromatograph with a flame ionization detector while the gaseous products were analyzed using gas chromatograph with a thermal conductivity detector. In addition, some of the car­bonaceous compounds that adhered on the cooling glass tube were eliminated using и-hexane and were measured as waxes. The mass of coke deposited on the catalysts after the degradation was determined by weight difference of the catalyst before and reheating the catalysts at 600 °C for 5 h. In addition, the amount of coke deposit on the catalyst could also be calculated by measuring the desorbed amount of carbon dioxide during temperature programmed oxidation of the used catalysts.

The survival of the human species is linked to the exploitation of natural resources, as there is no other known way to provide the essential heat, energy, and food. There has been a great deal of debate regarding how this exploitation can occur, since to exist, organisms need to intervene in natural systems. A superficial analysis might suggest that an irreconcilable dichotomy has been created. Such reasoning may lead to extreme attitudes where, on one side there is the irresponsi­ble use of natural resources, and on the other, the discourse suggesting that nature could be so much better off without the human presence on earth.

The state of well-being achieved by modern societies has increased the rate of unsustainable exploitation of the planet’s resources. Our technological choices are based on our understanding that nature’s capacity to provide for what we con­sider to be our needs is unlimited. It follows then that an alternative path must be designed so that those technological choices lead to a process of sustainable exploitation of natural resources. After all we are the only species on the planet that is endowed with a capacity for awareness that is sufficient not only to under­stand and evaluate our own destructive power, but also with the intelligence required to minimize it.

Therefore, it seems appropriate to move toward new productive systems, whether agricultural or industrial, where growth and development can be achieved without the opposition between capital and nature. For this to happen, we must overcome the economic, social, and political challenges that the technological solutions present.

Thus, understanding the relationships between the natural and social environ­ment seems to be the way forward in the search for a solution to the problems that challenge the planet, since it is from within this society that the answers to those challenges will emerge. However, we must avoid believing in a panacea, since there is no single “cure” that can be used to solve modern problems, as there is an intricate set of social, economic, and ecological relationships. As Hippocrates said: “Disease is the result of the airs, waters and places.”

There is insufficient space to address all these issues in a single book, so we have chosen just one path, that of energy. This choice is justified by its importance as a factor in development and its condition as one of the key elements in the inter­action between society and nature. The production and use of energy determine numerous impacts on the planet and on societies. While it may be an indicator of well-being, its effects may be adverse (Dincer 2002).

Among the adverse effects of the current methods of obtaining and using energy one can include the environmental impacts, price fluctuations, geopoliti­cal risks, and the risks of its nonavailability. Because of these effects, there has been growing interest in the search for alternatives to current patterns of produc­tion and consumption of energy throughout the world (Holdren 2006; Hanegraaf 1998). Within the energy sector worldwide, experts have addressed a number of issues, among them one can mention the research into conversion technologies as applied to different inputs in order to produce liquid and gaseous fuels, and into geographical organization for the production of food and energy.

Among the various studies of note, that by David Tilmann (2009) highlights the trilemma of the plant-derived fuel production systems. What he refers to as the trilemma is the need to simultaneously attend the requirements for food, fiber, and renewable fuels. Based on this trilemma and by analyzing initiatives from around the world, one possible conclusion is that with the current level of use of the tech­nologies and services available it will be impossible to reverse the rate of exploita­tion of the resources required to meet our energy needs according to the criteria of social, economic, and environmental sustainability, considering the rate of world population growth and its impact on the volume of resources that will be required to meet those needs.

Inspired by these issues and based on the structuring of energy matrices in dif­ferent countries, this book deals with different aspects of the production and use of liquid biofuels, derived from the production and conversion of biomass. Among the primary sources of energy, biomass has come to occupy a growing place in the energy mix worldwide. The concept of biomass can be understood as refer­ring to all living matter on earth that is capable of storing solar energy (Taylor 2008; Goyal et al. 2008). Many researchers consider biomass to be a source capa­ble of contributing to the energy needs of both developed and developing societies (Berndes et al. 2003).

Around the world, different arrangements for the production of bioenergy are being developed, with multiple integrated technologies that either benefit from the concentrated supply of inputs produced in large scale or take advantage of the small-scale production of inputs at the local level. These trends present us with the challenge to find the most efficient use for the natural inputs available.

From a demand and supply perspective, it should be noted that bioenergy is coming to be seen as a priority on the international agenda, with the use of liq­uid biofuels constituting a key strategy in the attempt to meet both the demand for environmental sustainability and the energy needs of countries. The growth in the production and use of biofuels around the world has led to increased interest and discussion on the subject, lending greater importance to related studies and research, as is the case with this book.

Without claiming to be exhaustive, this book provides a critical and plural dis­cussion of the major issues being raised in the context of research and policies and the alternatives that are being outlined regarding the insertion of bioenergy in the energy matrices of several countries. In this sense the book provides a multidisci­plinary and integrated view of the debate on the emergence and diffusion of the liquid biofuels as an energy source, bringing together different elements, such as public policy, industry organization, and the sustainability of different systems for the production of liquid biofuels and technology. The discussion on these different aspects will be illustrated by biofuel researchers and practitioners from a range countries that produce and consume biofuels.

In this book the reader will find that biofuel production, analyzed in relation to its institutional, economic, technological, and environmental aspects, is presented in two parts. The first, consisting of eight chapters, deals with the economic and environmental aspects. The second part of the book, consisting of four chapters, presents and discusses the technological issues. Importantly, almost all the chap­ters include discussions on the institutional aspects related to biofuel, especially the issue of regulation imposed by governments in order to strategically control the production and distribution of biofuels.

In compiling this book, our intention was to address the main issues and key challenges related to the production and consumption of bioenergy. When the call was issued to researchers from around the world, our main objective was to seek out different perspectives and analyses on the subject, while identifying points of convergence and divergence among several different research centers around the globe.

We hope that this book serves as a “must-read” reference for all those involved in biofuel-related research. We feel sure that it contains valuable material for the library of any biofuel researcher, practitioner, and/or educator. In selecting the contents, we have attempted to provide material that will be of interest to both those with experience in the field of biofuel and those who are setting out to dis­cover its relevance.

“Economic Issues in the Liquid Biofuels Industry” discusses the market distor­tions that occur when the production costs of the first generation of biofuels com­pared with those of fossil fuels. In doing so, the relationship between the energy market and the agricultural market is emphasized. The relationship between bio­fuels and the agriculture and energy markets is dealt with from three perspectives: energy security risk; reduction of greenhouse gas emissions; and rural develop­ment. “A Comparison Between Ethanol and Biodiesel Production: The Brazilian and European Experiences” spotlights the Brazilian ethanol and European bio­diesel scene in terms of the policies adopted and their production, supply and demand, as well as the environmental impacts of these biofuels.

“Global Market Issues in the Liquid Biofuels Industry” discusses issues such as the supply, demand, exports, imports, prices, and future perspectives of the global market for ethanol and biodiesel by focusing on Brazil and the United States. Both countries are of great importance in the global biofuel market both in terms of their respective production capacities and as consumer markets. “The Biofuel Industry Concentration in Brazil Between 2005 and 2012” deals with the growth and concentration of production capacity in the Brazilian biofuels industry.

“Calculation of Raw Material Prices and Conversion Costs for Biofuels” takes a closer look at the discussion regarding the raw materials in the first generation bio­fuels, by presenting a forecast of raw material prices, simulating the likely effects on production costs of the economies of scale obtained from scaling-up produc­tion and from technological learning. An analysis is provided of various scenarios in which different biofuels and fossil fuels are compared. Regarding raw materi­als for the production of biodiesel, two chapters present and discuss alternatives to the traditional oilseeds used in biodiesel production, though with an organizational and economic focus. “Governance of Biodiesel Production Chain: An Analysis of Palm Oil Social Arrangements” deals with the governance structure of the biodiesel production chain in Brazil from a social perspective by focusing on the relation­ship between the farmers and the palm oil industry. “An Economic Assessment of Second-Generation Liquid Fuels Production Possibilities” provides an economic assessment of the possibility of producing the second generation biofuels, more spe­cifically bioethanol production from lignocellulosic materials in the United States.

“Environmental Issues in the Liquid Biofuels Industry” completes the first part of the book and deals with the environmental issues involved in the liquid biofuels industry, presenting the different generations of biofuels and discussing them in relation to their Tailpipe Emissions, life cycle, Ecological Footprint, and Climate Threats and Technological Opportunities.

The second part of the book addresses the technological aspects of biofuel pro­duction. The chapters within it highlight the different types of technologies used in biofuel production and the use of new materials such as algae, oleaginous organ­isms, and waste polymers. Accordingly, “Application of Analytical Chemistry in the Production of Liquid Biofuels” discusses the use of chemical analysis in the production of biofuels with respect to the evaluation of the quality and chemical composition of the raw materials and all materials and by-products in the produc­tion process. Also related to the use of chemistry in the production of biofuels, “Technical Barriers to Advanced Liquid Biofuels Production via Biochemical Route” deals with the technical barriers to advanced liquid biofuel production via the biochemical route, focusing on second and third generation feedstocks.

The chapters that follow focus on the use of new raw materials for the produc­tion of biofuels as alternatives to mitigate the problems and limitations posed by the use of the raw materials of agricultural origin used in the first generation of biofuels. “New Frontiers in the Production of Biodiesel: Biodiesel Derived from Macro and Microorganisms” highlights the state of the art and the main character­istics of the oil and biodiesel provided by macroorganisms (insects) and microor­ganisms (bacteria, filamentous fungi, and yeasts). “Algae: Advanced Biofuels and Other Opportunities” looks into the use of algae as an alternative source of biofu­els, presenting a review of microalgae cultivation (species, usage, processes, and culture), while highlighting the advantages and challenges of algae-based biofuel. The last chapter is not directly concerned with biofuels, as it focuses on another possible alternative, liquid fuels from waste polymers, thus opening another possi­ble route for the production of alternative fuels to petroleum, and potentially mini­mizing the environmental impact by using industrial waste from various industries.

Acknowledgments We are very grateful for the support and contribution of so many authoritative biofuel researchers and practitioners in writing chapters for this book. We extend a special thanks to Springer’s publication team for their encouragement, help, and patience in compiling this book.

Measuring concentration is necessary to analyze the market structure in an indus­try and, thus, to identify relevant elements in this structure, such as competi­tiveness and barriers to entrance, among others. These elements interfere in the conduct and performance of these firms, as well as in the structuring of the mar­ket itself. In order to address the problem of this research, we analyzed the data using two methods that demonstrate the concentration level of companies in their markets: the partial concentration rate (CR) and the Hirschman-Herfindahl Index (HHI).

Similar to second-generation biofuels, so-called third-generation biofuels are pro­duced from non-edible specially engineered low-cost, high-energy and entirely renewable crops such as algae (Chris ti 2007). These are capable of generating more energy per acre than conventional crops and can also be grown on land and in water that is not suitable for food production. Fourth-generation biofuels use genetically modified crops (Table 2). The conversion process in this case is similar to that employed for second — and third-generation biofuels, but involves an addi­tional step where the carbon content in the fuel is oxidized by processes such as oxy-fuel combustion (Gray et al. 2007). The CO2 released is then absorbed and stored in oil and gas fields or saline aquifers (ZEP-EBTP 2012).

A distinction often used in favour of third — and fourth-generation biofuels is that they are produced from carbon neutral or negative biomass. However, as Centi et al. (2012) note, this has not yet been proved empirically, while Gasparatos et al.

(2012) point out that the technologies involved are still in their infancy. In the light of these uncertainties, this chapter focusses on first — and second-generation biofu­els, more so given that many environmental aspects of third — and fourth-generation biofuels hold true for second-generation fuels.