A Preliminary Analysis of the Potential for Developing Nations to Use Biomass Fuels in Vehicle Engines

Abstract

In this paper, a cursory analysis is presented of the required capital investment for a lesser developed country (LDC) to substitute biomass fuels for petroleum. Only investment costs are analyzed because, first, alcohol production options are likely to necessitate the construction of relatively large and complex conversion plants. The plants would require substantial capital investments (perhaps with equipment purchased abroad) and a sophisticated engineering and operational staff. Second, the Brookhaven study suggests that, by the year 2000, LDCs outside OPEC will need to increase their annual investments in energy resources by 50% to meet their commercial energy demands. Third, because only a few countries have substantial access to private international investment, the present lending policies will make it difficult for many countries to develop their energy supplies. Fourth, any estimate of operating costs is of questionable value unless the analysis is based on a specific country or region. Thus, operating costs, or any other costs related to modifications of fuel distribution networks or changes in agricultural practices that might allow more harvesting of wood or agricultural residues are not compared. For this reason, firm conclusions concerning the relative economic desirability of the options will not be drawn. However, the resultsmore » should be instructive to planners who will be faced with evaluating future energy options for LDCs.« less