Production costs and net energy balance of liquid and gaseous biofuels: Some regional studies.

Up to now, the “low” price of oil has prevented the development of alternative fuels but with the current high price and increasing scarcity, biofuels could become an economically attractive alternative. However, the economic assessment of biofuels has to take into account total production costs, including impact on agriculture, and the energy balance of first generation alternative fuels (biodiesel, bioethanol and biogas). Moreover, plans to produce biofuels from agriculture should not be achieved without considering the latest developments and reforms of the CAP, which promotes a change towards sustainable rural development based on multifunctional agriculture. From the analysis carried out, it emerges that first generation biofuels don’t seem to be the best solution because of high production cost, limited land availability and low net energy balance. Furthermore, only a small quantity of biofuels can be produced as alternative to fossil oil because an incremental production will lead to the rising of agri-food prices. Biogas handling waste products can be a good opportunity in terms of net energy balance, in particular if we consider also targets within the EU on reducing the amounts of biodegradable waste going to landfills and/or incineration. Only second generation biofuels could be a possible solution, although they still require much supplementary research and analysis.