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    EthaBlog publishes part IV of the wide-ranging speech by Mr. José Walter Bautista Vidal, the father of Brazil's successful ethanol program. EthaBlog - August 7, 2006.

    Brazil's center-south ethanol exports in July hit a record 508 million liters, up nearly 90% compared to the same month a year ago, the Sao Paulo sugarcane industry association, Unica, said in a preliminary estimate. Unica (via CattleNetwork) - August 6, 2006.

    Hungary's governing Socialist Party's agricultural expert Sándor Magda, estimates that in the not too distant future, up to 40% of Hungary's energy consumption could be provided for with the generation of bioenergy from agricultural produce. The Budapest Sun - August 6, 2006.

    Video: How biomass is cutting pollution in France. Biomass is increasingly being taken up by local authorities as a cheap and environmentally sound alternative to fossil fuels. Euronews' "Terra Viva" program looks at how the French region of Bourgogne is benefiting from biomass. Euronews - August 5, 2006.

    Carotino Sdn Bhd and the Malaysian Palm Oil Board (MPOB) invest €17 million in palm oil biodiesel plant in Pasir Gudang, Johor province. Capacity: 120,000 tonnes per year. Business Times Malaysia - August 4, 2006.

    DaimlerChrysler India is planning to set up a co-operative in Gujarat for the purpose of sourcing Jatropha-based bio-diesel from poor farmer families in and around the town of Bhavnagar. Business Standard (India) - August 4, 2006.

    China's national Offshore Oil Corp (CNOOC) to buy an extra 1 million tonnes of Malaysian palm oil for biodiesel. Business Times Malaysia - August 4, 2006.

    The U.S. Department of Energy is to invest €200 million (US$250 million) in new Bioenergy Development Centers, aimed at research next-generation biofuels, amongst them aviation biofuels. Part of U.S. aim to replace 30% of oil by 2030. U.S. Dept. of Energy - August 3, 2006.

    EthaBlog publishes part II & III of the interview with José Walter Bautista Vidal, the father of Brazil's ethanol program. EthaBlog - August 1, 2006.

    Agro-industrial giant ADM's quarterly profits double on strong ethanol and biodiesel demand. Reuters - August 1, 2006.

    Bioenergy expert says Sri Lanka can produce enough biogas to meet existing transport fuel needs. Advocates switch to compressed biogas systems for cars (similar to CNG). Asian Tribune - July 30, 2006.

    "Automotive X Prize" website is online. Goal of the prize: to develop a hyper-efficient and clean car. Automotive X Prize - July 28, 2006.

    ADM announces plans to build first biodiesel plant in Rondonopolis, Brazil. Capacity: 180,000 metric tons per year. Feedstock: soybean oil. ADM Press Release - July 27, 2006.

    BioConversion Blog makes an in-depth analysis of California's heightened attention for bioenergy; the legislative, policy, and business activities of the past few months are covered in detail. BioConversion Blog - July 26, 2006.

    Japanese oil company Nippon Oil Corporation to build biodiesel plant in Jambi province, Indonesia. Part of Indonesia's bioenergy crash program. Capacity: 30,000 tonnes. Main feedstocks: jatropha, palm oil. Plantation part of 6.3 million hectares of set-aside land for biofuels. Antara News Indonesia - July 26, 2006.

    South African company Ethanol Africa to invest €795 million in one of world's largest ethanol plants in Bothaville, Freestate. Capacity: 500,000 liters per day; main feedstock: maize. 7 more plants will supply 12.5% of South Africa's fuel needs by 2015. IOL South Africa - July 26, 2006.

    The Jamaica Broilers Group (JB) says that it will spend €875 million (US$1.1 billion) to construct an ethanol production facility which will have an annual ethanol production capacity of 230 million liters (60 million gallons). Jamaica Gleaner - July 26, 2006.

    China's third largest oil company, China National Offshore Oil Corp (CNOOC) has inked a memorandum of understanding with a Malaysian firm to develop palm oil-based biodiesel in a shift towards renewable energy sources. Bernama - July 24, 2006.

    Palm oil futures trading volume and price reaches two-year high on news of Malaysia and Indonesia's Biofuels Pact. Palm oil for October delivery rose 3.3% to RM1,591 (€ 340) a tonne on the Bursa Malaysia, whereas crude oil stood at € 571 per tonne. The Star (Malaysia) - July 24, 2006.

    German fund to invest in construction of 6 biodiesel plants in Bulgaria, as the country enters the EU. ICS International Consulting SP plans to invest a total of € 320 million. Dnevnik Bulgaria - July 24, 2006.


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Wednesday, August 09, 2006

"I feel an oil lobby rising against biofuels"

We often refer to the energy situation in small island states in the tropics (such as Tuvalu, the Dominican Republic, Ile Maurice or Hawaii) and how they attempt to deal with rising oil prices. Being island states, they're extremely vulnerable to increased energy prices, but they also offer a microcosmos showing how the transition to bioenergy may unfold and what 'energy independence' is really worth.

Today we present excerpts from an interesting interview with professor Swalay Kasenally who analyses the energy market as it relates to the Indian Ocean island of Mauritius. The original appeared in French in L'Express.
Prof Swalay has fathered Mauritius' transition to locally produced bio-ethanol but now sees more and more resistance from the oil lobby.

How do you see the initiatives taken here in Mauritius aimed at reducing our oil consumption?

We must continue to encourage the production of ethanol and we must keep the mixing process of gasoline and ethanol here on the island. We must urgently move towards a 20:80 formula (20% ethanol/80% gasoline). There is no need for further testing before we can commercialize the product.

The current 10:90 formula is not interesting and I feel that an anti-ethanol lobby is trying to slow things down. That is why I call on all private sector players to stop their internal conflicts and to join their forces to build an ethanol industry, which we should have had a long time ago.

Locally produced ethanol based on sugar cane molasse is competitive with oil. Molasse costs 1500 rupiah (US$ 45) per ton at the factory. We can make a barrel of oil equivalent of ethanol out of this that is cheaper than petroleum at US$ 50 per barrel. And today, oil stands at more than US$ 70.

Some people have very shallow arguments to slow down our transition to ethanol. They spread the rumor that the gasoline we import is different than that of overseas and that it can not be used for mixing with ethanol. In reality of course it's the same product coming from the same refinery. Zimbabwe has been mixing ethanol into its gasoline for over a decade and it comes from the refinery that supplies Mauritius.

What are the risks of a permanent oil supply disruption?


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Cela fait plus de cent ans que des experts et des oil pessimists prédisent la fin de l’âge du pétrole. Récemment, d’autres adhérents à ce postulat se sont mis de la partie mais sans grande conviction ou nouvel argument.

La vérité est que personne ne sait de manière certaine quelle quantité de pétrole il y a sous la terre. La production pétrolière est-elle arrivée à son seuil maximal ? Certains sont de cet avis tandis que d’autres, qui maîtrisent tout aussi bien le dossier, ne le sont pas.

En tout cas, les prix élevés auxquels nous faisons face ces temps-ci devraient encourager le marché à développer de nouvelles technologies pour puiser davantage de pétrole dans les puits existants.

Il faut aussi activer les puits qui étaient considérés comme n’étant pas économiques. Mais avec le pétrole qui se vend aujourd’hui au-delà de $ 70, l’exploitation de ces sources devient économiquement rentable. Dans la région connue comme la zone neutre en Arabie saoudite et au Koweit, il existe quelques puits qui ont été explorés à 40 % seulement. Il y a donc un potentiel intéressant à exploiter.

Il y a très peu de nouvelles réserves qui sont en train d’être découvertes. Pour chaque trois barils de pétrole consommé, il y a un seul qui provient de sources nouvelles.

Ce sont principalement les pays producteurs de pétrole qui font de nouvelles explorations. Les nouveaux fournisseurs tels le Tchad et le Soudan font des développements avec l’apport de multinationales. Toutefois, la production à travers ces nouvelles sources est relativement petite, soit une production de 15 000 à 20 000 barils par jour. Il y a aussi tout l’effort à entreprendre pour développer des alternatives au pétrole tel l’éthanol et le biodiesel.

“Le marché des produits pétroliers
va rester très nerveux face aux perturbations
politiques et militaires au Moyen-Orient...”


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