CITIZEN POWER ALLIANCE

The world is going through the strongest surge in energy prices as crude oil prices have soared to more than $100 per barrel. The high price of fossil fuels, environmental concerns, and geopolitical instability in some major oil producing nations have spurred intense global interest in alternative fuels, especially from renewable energy sources.

Developments in solar panels and wind farms favored by eco-activist groups have been severely hampered in developing countries by their high initial costs. Nuclear power for developing countries is still viewed with suspicion; Crop-based fuel production has been the main focus of interest in developing as well as developed countries. In US and European countries ethanol and biodiesel are made from food or inedible crops, including corn, sugarcane, maize, cassava, rapeseed (canola oil), soybeans, and palm oil.

Large scale production of biofuel has put tremendous pressure on global grain prices. In the short- and medium-term, ethanol can do little to affect oil consumption, but the diversion of grain from food to fuel has already exerted a widespread and profound ripple effect on various food commodities.

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