Journal of Economics

BIOFUELS
Finding innovative ways to improve the economic efficiency of agricultural production is now probably one of the most popular. Depletion of oil and traditional energy resources, rising prices and worsening environmental problems caused global interest in the development and use of alternative fuels for mechanical, thermal, electric energy and bio-fertilizers. Agriculture refers to the energy-intensive industries. In recent decades, for each percentage increase in the gross agricultural output increased energy costs by 3-4%. Annual energy consumption in agriculture in Russia is about 130 million tons of standard fuel, and taking account of local types of fuel – more than 150 million tons.

Over the past decades have seen an increase in the energy component in the price of agricultural products from about 5 to 20%. The price of energy in 2,5 times faster than the rise in prices for products. In this regard, the sharp rise in energy should be an incentive to switch to energy-saving type of economic growth.
Energy needs of agricultural production can be achieved both through the use of electrical energy, and various kinds of solid, liquid and gaseous fuels, as well as local renewable energy sources. In different areas of the country use each of them characterized by different energy and technical-economic indicators and requires comparative calculations.
Just how promising this direction for Tatarstan? To answer this question, we need information about the resource base for biofuels production? Traditional crops cultivation in our country are – rye, wheat and barley with a yield of alcohol at the rate of 400 liters in one ton. It should be borne in mind that the production of ethanol from corn – it’s not just biofuels, but also a comprehensive waste-free processing of grain to produce a range of related products: flour, dry gluten, fodder yeast, bran, and bards, each of which has a high market value.

Today, under the existing disparity in prices for fuel and agricultural products engaged in production of grain for sale at a loss. Another question – produced from the same grain biofuels. In order to understand how it is beneficial only to compare the figures: in 2005 the cost of 1 ton of wheat averaged $ 100, while a ton of biofuel cost $ 800. It is easy to calculate what benefits can be extracted by opening the country to plant for the production of biofuels.

As for the raw material base, then in Tatarstan steadily grown each year to 4,5 million tons of grain, while the needs of the country it is only 300,000 tons of wheat and 100,000 tons of rye a year. The Republic has a well-developed set of elevators and grain-points and has all the conditions for successful development of biofuels and biofuel industry (1).

In October 2007, “Cosmetics and the National Venture Investment Fund established Tatarstan Kazan MEZ” with registered capital of 1 billion 75 million rubles.

New oil-extraction plant worth 46.7 million euros is focused on processing of rapeseed in volumes to 300 thousand tons per year and will bring economic benefit of $ 14.2 billion. In the future, the plant will provide not only a multibillion-dollar investment in crop production, but also give the second breath livestock, ensuring the republic of rapeseed meal, which will produce up to half a million tons of cheap high-protein animal feed. The result will benefit all: the grain and canola, which can sell their products at stable prices, and refiners themselves.

Alternative technologies can be used for processing many types of organic waste, manure, sewage, waste and production of crops, improving the ecological situation in the region.

Today, as in many countries the issue of biofuel production is considered at the governmental level, the Republic of Tatarstan has a real opportunity to become one of the leaders in the production of biofuels – fuels the new millennium.

REFERENCES

1. Subbotkin A. Tatarstan. In the new century with petrol from canola / Mode of access free / http://biodiesel.com.ua/2006/10/27/tatarstan.html