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CHAPTER 1<br />

INTRODUCTION<br />

World energy consumption was reported to be above 10.5 billion tones of oil<br />

equivalent in 2005 and also found that it was increasing due to both the world population<br />

growth and the increasing life standards of humans with an average of 2.5% every year<br />

since sixties (BP-WSR 2006). Almost ninety percent of the energy used in the world has<br />

been supplied <strong>from</strong> fossil fuels but it was estimated that the economically accessible fossil<br />

fuel resources would finish soon according to “Hubbert’s Peak” theory. The theory tells<br />

that as the world’s energy demand increases, the <strong>production</strong> rates of fossil fuels are<br />

increased. This relationship continues up to a time when there will be no economical fossil<br />

fuel reserves available and thus, after this time, the <strong>production</strong> of primary fuels starts to<br />

decrease and according to supply/demand relationship, the fuel prices start to increase<br />

(Hubbert 1956). Therefore, in recent years, studies on alternative fuels and renewable<br />

energy resources have been increased. Although there are many proposed energy<br />

conversion systems <strong>using</strong> alternative fuels, such as biomass, <strong>hydrogen</strong> or biodiesel, there is<br />

no unique and viable solution.<br />

All the developing countries and many of the developed countries are <strong>using</strong> fossil<br />

fuels as their primary energy source (an average of 87.6% of energy supply comes <strong>from</strong><br />

fossil fuels in 2005). 27.1%, 36.8% and 23.7% of worldwide energy needs are provided by<br />

coal, oil and natural gas respectively (BP-WSR 2006). In addition, nuclear and<br />

hydroelectric energies are also used but their contributions to world energy demand are not<br />

as significant as the fossil fuels since they can produce electricity and their contributions to<br />

energy supply are limited with electric consumption. In fact, the nuclear and hydroelectric<br />

energy usages provide 6.1% and 6.2% of the total energy demand, respectively. Power<br />

<strong>production</strong>s <strong>from</strong> renewable energy sources, such as <strong>solar</strong>, wind or wave with the exception<br />

of hydroelectric are insignificant as compared to that <strong>from</strong> fossil fuels power generation.<br />

Although the energy demand is increasing continuously and fossil fuels are not<br />

renewable, United States Department of Energy claims that the world fossil fuel reserve to<br />

annual <strong>production</strong> ratio is not changing seriously due to the exploration of new fossil fuel<br />

1

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