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    Venezuela and Nigeria, both members of the Opec oil cartel, yesterday announced that they would reduce their oil production by as much as 200,000 barrels a day to shore up prices. Several other key members of the Organisation of the Petroleum Exporting Countries were said to be furious about the unilateral decision. Financial Times - September 29, 2006.

    One of the world's largest bioenergy groups, Spanish firm Abengoa SA, signed a deal with Ford to introduce E85 bioethanol cars in Spain and promote the use of the fuel. Spain will be the second European market to introduce the Ford flex-fuel cars, after Sweden, where more than 30,000 Ford Focus cars are now powered by the biofuel. Reuters - September 29, 2006.

    Correction: in our article of Wednesday, Sept. 13 2006, about the Danforth Center's cassava project, we incorrectly stated that the Center took its press releases about the failure of the project offline. This is not true. In fact, and we quote Mr Rob Rose, the Center's Public Relations and Government Affairs director, "The Danforth Center has never taken the statements announcing the cassava setback off of the Danforth Center Web site, and these cassava statements have been available via the News & Media tab on the Danforth Center Web site since each of these announcements were made on June 30 and July 18 respectively. The Center has taken a proactive approach to announcing the cassava setback. We contacted all partners involved in the cassava research program, have distributed the two statements to members of the media, and posted the two statements about the cassava setback on the Danforth Center Web site".
    We wish to apologise to the Danforth Center for the mistake on our part and the wrong conclusions or suggestions that we drew from it. We have corrected the mistake in the original article.
    The Biopact team - September 28, 2006.

    Dutch agribusiness group Agrenco and two Brazilian agriculture cooperatives together plan to invest US$100mn to build three biodiesel plants in Brazil (two in the state of Mato Grosso do Sul and one in Paraná). The plants will use different oilseeds purchased from 20,000 small-scale farmers. BNA - September 27, 2006.

    The city of Hyderabad in India's Andhra Pradesh state, has been experimenting with city buses running on biodiesel with first tests aimed at curbing pollution and GHG emissions showing positive signs. The Hindu - September 27, 2006.

    NewGen Technologies, Inc. today announced its expansion into the Asian renewable fuels market with the formation of NewGen BioFuels Asia Pte. Ltd. The new company is a joint venture dedicated to the production of palm oil based biodiesel. MarketWire - September 27, 2006.

    Plantation stocks in SE Asia reflect biofuel potential, analysts say. "If you buy into the biodiesel story, then the 18 times PE (price/earnings) is not expensive," says one plantation analyst. The Star (Malaysia) - September 27, 2006.

    Petrobras obtains initial approval for 3rd biodiesel plant. Plant to be located in Ceara state, one of the country's poorest. Petrobras to acquire oil seeds such as soybean, cotton, palm and castor from small-scale farmers. The plant is part of President Lula's biodiesel program, which is popular in poor rural areas as the government gives tax breaks to companies that buy oilseeds from small-scale farmers. BNAmericas - September 25, 2006.

    Chinese biomass power company EnerSave to sell carbon credits to UK company EcoSecurities. Each of EnerSave's biomass plants in China yields up to 150,000 Certified Emissions Reductions (CER's). LSE - September 24, 2006.

    Richard Branson commits US$3 billion for the fight against climate change. 100% of the profits of several of his companies will go the Clinton Global Initiative to combat dangerous climate change. Reuters - September 22, 2006.

    Google and the United Nations Environment Program (UNEP) collaborate on making public an Atlas of the World's Environment, showing satellite info on environmental degradation. France Matin - September 20, 2006.

    Copenhagen based Novozymes, developer of enzymes for cellulosic ethanol, becomes partner in Denmark Technical University's 2G ethanol plant. Copenhagen Capacity - September 20, 2006.

    Record oil import costs have pushed the US current account deficit to $218.4bn (£116.3bn) in the second quarter, a 2.4% increase on the previous period. BBC - September 18, 2006.

    A unit of China National Offshore Oil Corp (CNOOC), plans to invest over 2.3 bln yuan (€220mio / US$290mio) to build a biodiesel complex in Panzhihua, Sichuan province. Projected annual output: 100,000 tons in 2010. China's biodiesel output is expected to reach 1 mio tons in 2010 and 9 mio tons in 2020. Forbes - September 15, 2006.

    Denmark's Technical University in Lyngby builds an experimental cellulosic ethanol plant that will only use biomass waste, to demonstrate its technology and to attract investors. United Press International - September 13, 2006.


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Sunday, October 01, 2006

WWF: Brazil's biofuel plan is unsustainable

Brazil's president Lula recently wrote a short essay summing up the benefits of biofuels for his country (earlier post). He spoke of a new development paradigm, based on biofuels production, which not only brings energy security and environmental benefits, but social development to the many rural poor as well. Through biodiesel and ethanol, the state reduces its fossil fuel import bills (money which can be spent on poverty eradication and reducing social inequalities) and recognizes the productive capacities of the poor instead of viewing them as mere recipients of aid. Lula added that such a paradigm can be applied elsewhere in the South, notably in Africa.

Giulio Volpi of WWF-Brazil later responded to the President's vision and partly disagrees. He says the Brazilian government is promoting the use of biodiesel produced from soya beans to reduce its dependence on fossil fuels, by clearing large areas of Amazonian rainforest to grow soybeans. This is too high an environmental price for this policy to be sustainable.

Volpi: Brazil's President Lula rightly recognises that one of the greatest challenges of the 21st century is reducing our dependence on climate-polluting fossil fuels, such as coal and oil. Currently Brazil's per capita greenhouse gas emissions are less than half the world's average, but this is largely due to its historic focus on energy efficiency, hydropower and sugar-based ethanol.

While President Lula said that Brazil has responded to the future energy challenge by "using clean, renewable, alternative energy sources to an ever-greater extent", Brazil seems to favour increasing fossil-fuel power generation. For example, coal, diesel oil and natural gas-fired thermoelectric plants will supply about two-thirds of the 3,200 megawatts of new electric power which was put out to bidders by the Brazilian government last December. Once built, these plants will emit over 11 million tonnes of CO2 per year - an 11% growth, which is not only bad for the global climate but also for the national economy.

Research shows that if Brazil was to implement an aggressive energy efficiency policy it could reduce the growth in power demand by as much as 40%, achieve energy savings of more than US$37bn per year, and stabilise its power-sector related CO2 emissions by 2020. This may seem radical, but in 2001, under the threat of power blackouts, Brazilians slashed electricity demand by 20% in a couple of months, without reducing their quality of life:
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President Lula said biofuel "is significantly less polluting than conventional petroleum-based diesel". But Brazil is set to produce most of its biodiesel from soya beans, which have virtually no advantage over conventional fuels in terms of overall greenhouse gas emissions, let alone the millions of hectares of tropical forest that have been cleared for large-scale soya plantations.

Automatically classifying biofuels as renewable energy regardless of how they are produced is dangerous. We cannot afford to address climate change while creating another environmental problem, deforestation - itself the source of 80% of carbon emissions in Brazil. The world must promote only those biofuels which offer the greatest environmental benefit, such as sustainably produced forest and wood products in temperate countries, and sugar-based bioethanol in tropical ones.

A mandatory eco-certification scheme for biofuels must be established, applying to all biofuels regardless of where they are produced. This system must be based on environmental and social criteria, and be easy to apply and flexible enough to meet local conditions.

Lula says that through investment in ethanol and biodiesel, Brazil is determined to "plant the oil of the future". But for biofuels to play a key role in a new carbon-free energy future, policy makers - both in the North and South - must ensure that biofuels are produced in an environmentally and socially friendly way. In Portuguese we have an expression which sums this up: Biocombustíveis sim, mas não de qualquer jeito! This means: yes to development but not to any development, yes to biofuels but not to any biofuels!

The Guardian: Soya is not the solution to climate change

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