Inter-American Institute for Cooperation on Agriculture

Agriculture Biofuels

The agricultural sector in the Americas can make a key contribution to global energy security, under threat due to the conflict in Eastern Europe

Tiempo de lectura: 3 mins.

This is one of the points made in the document, “The geopolitical importance of the agriculture sector for energy security,” published recently by the Inter-American Institute for Cooperation on Agriculture (IICA).

Portada del documento: “La importancia geopolítica del sector agropecuario en la seguridad energética”.

San Jose, 22 April 2022 (IICA) – The agricultural sector in the Americas has a vital role to play in bolstering global energy security following the outbreak of the armed conflict in Eastern Europe, in addition to its traditional role as a key producer of food for the world.
 
This is one of the points made in the document, “The geopolitical importance of the agriculture sector for energy security” published recently by the Inter-American Institute for Cooperation on Agriculture (IICA).
 
The report noted that the Americas produce 71% of the world’s liquid biofuels. Biofuels have taken on strategic importance as a substitute for oil and natural gas in the current international scenario, with the armed conflict having placed energy supplies and energy security at risk.
 
The conflict in Eastern Europe is having a negative economic impact not only in the Old Continent, but across the globe. In the last month, the price of liquefied natural gas (LNG) has risen by more than 600%, while shortages are expected to worsen the situation, since Russia is Europe’s biggest supplier of natural gas.
 
Russia is also one of the world’s most important oil producers (it is estimated that it accounts for 12% of total crude oil supplies), so the sanctions imposed by the international community prohibiting fuel imports from that country are bound to have serious consequences.
 
“In light of this situation, the agricultural sector in the Americas can play a key role, as it is an agro-exporter par excellence, contributing to global food security and even to energy security. These two objectives are not at odds, since diversification in the efficient, integrated use of biomass to produce biofuels can enhance the efficiency and safety of agri-food systems”, the report observes. The author of the document is IICA Biofuels and Bioenergy Specialist Agustín Torroba.
 
Biofuels already contribute more than 150 million cubic meters to the global liquid fuel matrix, with biodiesel accounting for 33% of the total and bioethanol for 67% (with the latter either being mixed with, or used in place of, gasoline). The Americas account for 88% of global bioethanol production, and 36% of biodiesel production.
 
The principal raw materials used to make bioethanol are corn and sugarcane, while biodiesel is produced from soybean and palm oils. The Americas have large exportable balances of these raw materials, which could double world bioethanol production and increase biodiesel production by 80%, the document reveals.
 
“Today, the liquid biofuels produced in the Americas cover 22% of the continent’s deficit of crude oil and its by-products. If processed, the exportable balances of raw materials could cover 53% of the total. High oil prices, added to the tax differential, especially in countries that have imposed a carbon dioxide tax, place biofuels ¾and especially bioethanol¾ in an economically advantageous position,” says the IICA study.
 
Thus, the continent has enormous potential to expand biofuel production and help achieve the goal of energy security.
 
The document points out that the biofuel industry has reached a level of maturity and competitiveness that has enabled it to significantly lower its production costs in the last decade and to be increasingly competitive compared to fossil fuels.
 
The report adds that environmental commitments are a plus for sustainable biofuel production and consumption. This is reflected in the fact that more than 60 countries have mandated the use of biodiesel, bioethanol, or both. High taxes also tend to make fossil-based products more expensive, especially given the increasingly widespread use of carbon dioxide taxes, and this helps create a window of opportunity that facilitates energy transition and even greater development of biofuels.
 
IICA assists the countries of the Americas in disseminating and communicating information about the importance of the sustainable use of biofuels, and in building institutional frameworks and public policies that promote the transition to clean energy in the transport sector.

More information:
Institutional Communication Division.
comunicacion.institucional@iica.int

Share

Related news​

Santa Fé, Darién, Panamá

September 4, 2025

Coordination between IICA and Panamanian and U.S. government authorities bolsters the fight against New World screwworm in Central America and Mexico

As part of the efforts to curb the spread of the New World screwworm (NWS), a current health threat in Central America and Mexico, the Ministry of Agricultural Development (MIDA) of Panama, the Inter-American Institute for Cooperation on Agriculture (IICA) and the Panama-United States Commission for the Eradication and Prevention of Screwworm (COPEG) organized a meeting with livestock farmers in the city of Santa Fé de Darién to strengthen health surveillance and better protect local livestock production.

Tiempo de lectura: 3mins

El Director General del IICA, Manuel Otero, reafirmó en la inauguración de Biohélice 2025 el compromiso del Instituto con la bioeconomía como eje estratégico para transformar el agro y revitalizar los territorios rurales. En el acto lo acompañaron la Directora General de CINDE, Marianela Urgellés; el Rector de la UNA, Jorge Herrera; y el presidente de CRBiomed, Álvaro Peralta.

San Jose, Costa Rica

September 3, 2025

Specialists and partners at a meeting spearheaded by IICA view the bioeconomy as essential in positioning Costa Rica and the Americas as leaders in sustainability and production transformation

The bioeconomy specialists were participating in Biohélice 2025, an event organized by Costa Rica’s Universidad Nacional, the CRBiomed association and IICA, which brought together more than 130 participants with an interest in innovation and bioeconomy.

Tiempo de lectura: 3mins

Alagoas, Brasil

September 1, 2025

Eliane Faria de Souza, a fisherwoman from Northeastern Brazil combining old traditions with innovative ideas to protect the environment, is named an IICA Leader of Rurality of the Americas

Eliane works with other women in the region to transform polluting waste substances into organic fertilizer.

Tiempo de lectura: 3mins