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Biofuels 'vital' for meeting fuel demand

30 April 2008

Biofuels are vital for meeting current and future fuel demand, the International Energy Agency has said.

IEA deputy executive director William Ramsey said with oil cartel resistant to increase supply, biofuels contributed about half of the extra fuel coming to the market from non-Opec sources.

"If we didn't have those barrels, I am not sure where we would be getting those half-a-million barrels [from]," he said.

His comments come as critics question the effects fuel demand are having on food prices and call on the EU and the US to rethink their support of fuel made from crops.

The UN's Food and Agriculture Organisation has said biofuels are not the major cause of the food crisis, estimating their effect to account for ten per cent of the food price spike.

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