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11.3 Biofuels Asia is increasingly recognized for its potential to develop into a significant market for and exporter of biofuels (Zhou et al., 2009). Indonesia and Malaysia are the top two global producers of palm oil (InfraInsights, 2013), and China is the third largest producer of biofuels overall in the world (European Biofuels Technology Platform, 2009). India, the Philippines and Thailand are major new contributors to the biofuel industry (PR Newswire, 2009). A recent study from the Global Biofuels Center points to tremendous growth in overall ethanol production in the Asia-Pacific region, which could amount to as much as 20% of total global production by 2015 (Adelman, 2012). There is a hope that the evolving biofuel industry will help job growth in several developing nations. Indonesia, currently producing almost 45% of the world’s total palm oil with around 8% of land designated for this purpose (Climate Investment Funds, 2013), has targeted biofuel development as a way to increase the income of on- and off-farm workers (Komarudin et al., 2010). In China, growing interest and investment in advanced biofuel technology could potentially lead to the creation of 2.9 million jobs by 2030 (Bloomberg, 2012). Although it provides a cleaner energy source and is a potentially strong economic driver, the biofuel industry has large water requirements that could exceed capacity in some regions (Section 3.2.2). China, already facing a pressing shortage of water and shrinking supply of arable land, has a goal of producing 12 million metric tonnes of biodiesel by 2020 (Timilsina and Shrestha, 2010) – a target that requires an amount of water approximately equivalent to the annual discharge of the Yellow River (ADB, 2013). Solutions in impact mitigation could lie in biofuel production from agricultural by-products or waste, or investments in algal fuel production as its cost efficiency improves. Research and development in algal fuel in many parts of the Asia-Pacific region, such as Japan and Korea, is resulting in its gaining ground as a sustainable alternative to biofuel and biomaterial production. WWDR 2014 ASIA AND THE PACIFIC 91PDF Image | Water and Energy
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