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Global production of ethanol and biodiesel is projected to expand, but at a slower rate than in the past. Ethanol production is dominated by the USA, Brazil and, to a lesser extent, the EU and China. Biofuel production in many developing countries is projected to remain below expressed targets, as the cultivation of non-edible biofuel crops (i.e. ‘biomass based [second generation]’ in Figure 3.4) remains, in most cases, on a project or small-scale level, and the high price of agricultural commodities does not encourage their use as biofuel feedstock. The high price of crude and policies promoting biofuel usage strongly affect biofuel markets (OECD/FAO, 2012). Subsidies continue to be a major driver of biofuel expansion (Webb and Coates, 2012). 3.3 Electrical power generation Approximately 90% of global power generation is water intensive. Water is used directly for hydropower generation as well as for all forms of thermal power generation schemes. Water also indirectly enables power generation through the cooling it provides for the vast majority of thermal power plants. These plants use heat (from nuclear, coal, natural gas, petroleum, solar or biomass sources) to make power, and are responsible for roughly 80% of global electricity production (Figure 3.5). Approximately 90% of global power generation is water intensive. Water is used directly for hydropower generation as well as for all forms of thermal power generation schemes. Increasing ambient water temperatures and changes in overall water availability create risks for the power sector. Power plants have had to shut down because of lack of water for cooling purposes or because of high water temperatures; droughts are threatening the hydropower capacity of many countries; and several reports conclude that water availability could be a constraint for the expansion of the power sector in many emerging economies, especially in Asia (IEA, 2012a; Bloomberg, 2013; Sauer et al., 2010). Almost 1.3 billion people did not have access to electricity in 2010 (Table 1.1). Although access differs significantly across regions, the majority of the unserved population resides in LDCs and sub-Saharan Africa in particular (Figure 3.6). 3.4 Global ethanol production by feedstock 180 160 140 120 100 80 60 40 20 0 Other feedstocks Roots and tuber Biomass based (second generation) Sugar beet Molasses Sugar cane Wheat Coarse grains 20072009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: OECD/FAO (2010, fig. 4.5, p. 87). OECD-FAO Agricultural Outlook 2010–2019 © OECD. WWDR 2014 ENERGY’S THIRST FOR WATER 33 Billion litres FIGUREPDF Image | Water and Energy
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