Falling oil could boost biofuel alternatives

SINGAPORE (Reuters) - Declining oil prices means this could be a good time for Asian countries to take another look at alternatives to biofuels for clean energy, an Asian clean fuel expert said on Tuesday.

Clarence Woo, an executive director at the Asian Clean Fuels Association, told the Reuters Global Biofuel Summit in Singapore that other forms of alternative energy had been overlooked in the rush to develop biofuels.

"Biofuel is only one form of clean alternative energy, and there is a niche for biofuels, but it has overpowered other energy resources because of high publicity," said Woo, speaking by phone from Tokyo.

"But you cannot just rely on biofuels, and you cannot say it will resolve all the energy problems we have, because it's not true."

Oil prices have fallen more than 30 percent from a record high of $78.40 a barrel hit last July, to just above $50 a barrel as mild winter weather in the northern hemisphere cuts heating fuel demand.

Woo said the fall in oil prices will keep Asia's use of biofuel marginal.

"I think all governments will still try to use biofuel as much as possible, but their general plan has changed a little bit."

"As far as I know, there is no biofuel projects in Asia that does not use government subsidy," said Woo, adding the low oil prices will require greater amount of government subsidies to make it competitive to oil-based fuels.

"It will cause a bit of a retraction in production and in the number of projects."  Continued...