Study: Biofuels could cause water shortage

China’s and India’s plans to produce more biofuels could cause shortages of water, which is needed for crops to feed their growing populations, according to a water study released by the International Water Management Institute (IWMI) in October. The IWMI study said China aims to increase biofuels production fourfold to around 15 billion liters (4 billion gallons) of ethanol – 9% of its projected gasoline demand — by 2020, from a 2002 level of 3.6 billion liters (950 million gallons). India is following a similar strategy. Its Cabinet permitted a plan to require oil companies to sell gasoline with a blend of at least 10 percent ethanol by next year or double current levels. The IWMI’s David Molden said in a statement that the situation could worsen already dire water shortages in parts of China and India. (October 11, 2007)