FAQ

Q. Is it true that old growth forests are being destroyed so that palm trees can be planted?

A. There is considerable evidence that this is the case in much of Indonesia and Malaysia where old growth forest is being replaced by palm plantations. Terranova Bioenergy is opposed to such practices.

Q. Why does everyone in the US seem to use corn to produce ethanol?

A. Although corn is a relatively inefficient feedstock for ethanol, it grows plentifully in the US, particularly in the Mid West. Sugarcane, a far more efficient feedstock, cannot be grown economically in most of the US. As a result, the feedstock of choice in the US, for now, remains corn.

Q. What is the subsidy for corn ethanol in the US?

A. The subsidy is currently set at 51 cents per gallon.

Q. What is the energy balance of US corn-based ethanol?

A. Efficient corn farming and processing systems can achieve energy balances in excess of 1.0., with studies showing results ranging from a ratio of 0.74 to 1.34.

Q. What is the energy balance of Brazil sugarcane-produced ethanol?

A. Brazil sugarcane-produced ethanol is far more efficient from an energy balance perspective than US corn-based ethanol. The most commonly quoted ratio of energy out versus energy in is around 8.0, however, efficient farming and processing systems can bring this ratio to around 10.0.

Q. Where is the majority of palm oil produced?

A. Malaysia (43% of world market in 2006) and Indonesia (36% of world market in 2006) are the main producers with about 83% of the world production although oil palm is originally coming from West Africa. Nigeria is the 3rd largest palm oil producer together with Thailand.

Q. What is the advantage of tropical areas for feedstock production?

A. Tropical crops such as sugar cane, palm, and jatropha provide the lowest cost sources of primary feedstock (raw material) for the production of biofuels. For example, sugarcane is far superior to corn (utilized in the United States) for the production of ethanol. Similarly, palm fruit and jatropha are far more efficient feedstocks for the production of biodiesel compared to alternatives such as rapeseed and soybean oil, utilized in the United States and Europe, respectively.

Q. What is a vertically integrated operation?

A. A vertically integrated operation is one that includes both farming and processing. The main advantage of this approach is that it ensures the supply of high-quality, low-cost raw material for the processing plant, thereby removing exposure to variations in the prices of feedstocks.

Q. Can biofuel operations also produce energy?

A. A common approach is “end product diversification,” whereby an operation has the flexibility to produce multiple commodities depending on market conditions. In the case of sugar cane operations, outputs can include ethanol, sugar, yeast, and electricity from a cogeneration facility. A palm fruit operation can produce palm oil for food industry applications, biodiesel, as well as electricity from cogeneration.