The March 2009 issue of Fuel Magazine features an article titled: Biofuels, Closer to an Alternative Energy Source?, written by SGS’s Head of Financial Services, Milena Stoyanova and SGS’s European Sales Manager for Alternative Fuels Services, Kris Truyens.
Biofuel constitutes an increasing share of global fuel sales and is expected to continue along a strong growth path since it reduces energy dependence and is less harmful to the environment than fossil fuel. Even so, it is challenging to win investors, especially in times when the global economy is in recession.
As detailed in this article, biofuel can demonstrate its sustainability credentials to consumers as well as capital markets. Sugarcane-based ethanol projects can start to generate cash flow after a duration of only 1 - 3 years with an investment of 300 million USD, and they have little effect on food prices as sugar is not considered a primary food source.
The lack of sustainability standards and sustainability verification systems impacts negatively on the worldwide trade of biofuels. Concerns like ensuring food safety, reducing greenhouse gas (GHG) emissions, conserving soil and biodiversity, enabling sustainable water use, protecting air quality and protecting workers and property rights can not be guaranteed without a single globally-accepted sustainability approach.
The implementation of a mandatory sustainable verification system is feasible on a global scale, and also a widely-accepted and well-recognized voluntary sustainability certification system could be an effective tool. Companies in the supply chain have a key role to play to support certification programs and increase acceptance in public opinion.
Download the full article, Biofuels, Closer to an Alternative Energy Source? (PDF 442 KB).
With its global presence and expertise in every area of the value chain, SGS is perfectly placed to certify products and to prove sustainability according to various legislation, standards and platforms.
SGS Project Finance Services provides technical advice and information at all stages of the project finance lifecycle. Serving the varying needs of the customers, SGS has developed a modular approach covering the evaluation of technical and economic feasibility, monitoring project progress and ensuring the accordingly operation.
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The SGS Group is the global leader and innovator in inspection, verification, testing and certification services. Founded in 1878, SGS is recognized as the global benchmark in quality and integrity. With more than 55,000 employees, SGS operates a network of over 1,000 offices and laboratories around the world.