While corn based ethanol has raised hopes of many, as a possible solution to the depleting natural gas and fuel crisis – there are many scientist and investors who feel otherwise. Switzerland’s leading private banks, Bank Sarasin, recently issued a report assessing the sustainability of biofuels and warned investors not to believe the current high growth in the biofuels market as permanent.
Two main factors, which worries the Bank, are (a) insufficient land to support corn grown for both food and fuel and (b) an insufficient market for the byproducts of ethanol production.
An excerpt from the report narrates:
It is actually unclear how much land is available for growing energy crops without having a negative impact on the needs of the food industry, animal feed industry, fallow land, soil quality and biodiversity.
It has been predicted global population growth and increasing affluent societies will be demanding more corn and soybeans for food. This necessity would be difficult to meet if corn continues to be used only for fuel production. Besides, University of Minnesota researchers have calculated that even if all current US corn and soybean production were used to produce biofuels, it would meet only 12% of gasoline demand and 6% of diesel demand.
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