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    Bulgaria's Rompetrol Rafinare is to start delivering Euro 4 grade diesel fuel with a 2% biodiesel content to its domestic market starting June 25, 2007. The same company recently started to distributing Super Ethanol E85 from its own brand and Dyneff brand filling stations in France. It is building a 2500 ton/month, €13.5/US$18 million biodiesel facility at its Petromidia refinery. BBJ - June 13, 2007.

    San Diego Gas & Electric (SDG&E), a utility serving 3.4 million customers, announced it has signed a supply contract with Envirepel Energy, Inc. for renewable biomass energy that will be online by October 2007. Bioenergy is part of a 300MW fraction of SDG&E's portfolio of renewable resources. San Diego Gas & Electric - June 13, 2007.

    Cycleenergy, an Austrian bioenergy group, closed €6.7 million in equity financing for expansion of its biomass and biogas power plant activities in Central and Eastern Europe. The company is currently completing construction of a 5.5 MW (nominal) woodchip fired biomass facility in northern Austria and has a total of over 150 MW of biomass and biogas combined heat and power (CHP) projects across Central Europe in the pipeline. Cycleenergy Biopower [*.pdf] - June 12, 2007.

    The government of Taiwan unveils its plan to promote green energy, with all government vehicles in Taipei switching to E3 ethanol gasoline by September and biofuel expected to be available at all gas stations nationwide by 2011. Taipei Times - June 12, 2007.

    A large-scale biogas production project is on scheme in Vienna. 17,000 tonnes of organic municipal waste will be converted into biogas that will save up to 3000 tonnes of CO2. 1.7 million cubic meters of biogas will be generated that will be converted into 11.200 MWh of electricity per year in a CHP plant, the heat of which will be used by 600 Viennese households. The €13 million project will come online later this year. Wien Magazine [*German] - June 11, 2007.

    The annual biodiesel market in Bulgaria may grow to 400 000 tons in two to three years, a report by the Oxford Business Group says. The figure would represent a 300-per cent increase compared to 2006 when 140 000 tons of biodiesel were produced in Bulgaria. This also means that biofuel usage in Bulgaria will account for 5.75 per cent of all fuel consumption by 2010, as required by the European Commission. A total of 25 biofuel producing plants operate in Bulgaria at present. Sofia Echo - June 11, 2007.

    The Jordan Biogas Company in Ruseifa is currently conducting negotiations with the government of Finland to sell CER's under the UN's Clean Development Mechanism obtained from biogas generated at the Ruseifa landfill. Mena FN - June 11, 2007.

    Major European bank BNP Paribas will launch an investment company called Agrinvest this month to tap into the increased global demand for biofuels and rising consumption in Asia and emerging Europe. CityWire - June 8, 2007.

    Malaysian particleboard maker HeveaBoard Bhd expects to save some 12 million ringgit (€2.6/US$3.4 million) a year on fuel as its second plant is set to utilise biomass energy instead of fossil fuel. This would help improve operating margins, group managing director Tenson Yoong Tein Seng said. HeveaBoard, which commissioned the second plant last October, expects capacity utilisation to reach 70% by end of this year. The Star - June 8, 2007.

    Japan's Itochu Corp will team up with Brazilian state-run oil firm Petroleo Brasileiro SA to produce sugar cane-based bioethanol for biofuels, with plans to start exporting the biofuel to Japan around 2010. Itochu and Petrobras will grow sugarcane as well as build five to seven refineries in the northeastern state of Pernambuco. The two aim to produce 270 million liters (71.3 million gallons) of bioethanol a year, and target sales of around 130 billion yen (€800million / US$1billion) from exports of the products to Japan. Forbes - June 8, 2007.

    Italian refining group Saras is building one of Spain's largest flexible biodiesel plants. The 200,000 ton per year factory in Cartagena can handle a variety of vegetable oils. The plant is due to start up in 2008 and will rely on European as well as imported feedstocks such as palm oil. Reuters - June 7, 2007.

    The University of New Hampshire's Biodiesel Group is to test a fully automated process to convert waste vegetable oil into biodiesel. It has partnered with MPB Bioenergy, whose small-scale processor will be used in the trials. UNH Biodiesel Group - June 7, 2007.

    According to the Barbados Agricultural Management Company (BAMC), the Caribbean island state has a large enough potential to meet both its domestic ethanol needs (E10) and to export to international markets. BAMC is working with state actors to develop an entirely green biofuel production process based on bagasse and biomass. The Barbados Advocate - June 6, 2007.

    Energea, BioDiesel International and the Christof Group - three biodiesel producers from Austria - are negotiating with a number of Indonesian agribusiness companies to cooperate on biodiesel production, Austrian Commercial Counselor Raymund Gradt says. The three Austrian companies are leading technology solution providers for biodiesel production and currently produce a total of 440,000 tons of biodiesel per annum in Austria, more than half of their country’s annual demand of around 700,000-800,000 tons. In order to meet EU targets, they want to produce biodiesel abroad, where feedstocks and production is more competitive. BBJ - June 6, 2007.

    China will develop 200 million mu (13.3 million hectares) of forests by 2020 in order to supply the raw materials necessary for producing 6 million tons of biodiesel and biomass per year, state media reported today. InterFax China - June 6, 2007.

    British Petroleum is planning a biofuel production project in Indonesia. The plan is at an early stage, but will involve the establishment of an ethanol or biodiesel plant based on sugarcane or jatropha. The company is currently in talks with state-owned plantation and trading firm Rajawali Nusantara Indonesia (RNI) as its potential local partner for the project. Antara - June 6, 2007.

    A pilot project to produce biodiesel from used domestic vegetable oil is underway at the Canary Technological Institute in Gran Canaria. Marta Rodrigo, the woman heading up the team, said the project is part of the EU-wide Eramac scheme to encourage energy saving and the use of renewable energy. Tenerife News - June 6, 2007.

    Royal Dutch Shell Plc is expanding its fuel distribution infrastructure in Thailand by buying local petrol stations. The company will continue to provide premium petrol until market demand for gasohol (an petrol-ethanol mixture) climbs to 70-90%, which will prove customers are willing to switch to the biofuel. "What we focus on now is proving that our biofuel production technology is very friendly to engines", a company spokesman said. Bangkok Post - June 5, 2007.

    Abraaj, a Dubai-based firm, has bought the company Egyptian Fertilizers in order to benefit from rising demand for crops used to make biofuels. The Abraaj acquisition of all the shares of Egyptian Fertilizers values the company based in Suez at US$1.41 billion. Egyptian Fertilizers produces about 1.25 million tons a year of urea, a nitrogen-rich crystal used to enrich soils. The company plans to expand its production capacity by as much as 20 percent in the next two years on the expected global growth in biofuel production. International Herald Tribune - June 4, 2007.

    China and the US will soon sign a biofuel cooperation agreement involving second-generation fuels, a senior government official said. Ma Kai, director of the National Development and Reform Commission, said at a media briefing that vice premier Wu Yi discussed the pact with US Secretary of Energy Samuel Bodman and other US officials during the strategic economic dialogue last month. Forbes - June 4, 2007.

    German biogas company Schmack Biogas AG reports a 372% increase in revenue for the first quarter of the year, demonstrating its fast growth. Part of it is derived from takeovers. Solarserver [*German] - June 3, 2007.

    Anglo-Dutch oil giant Royal Dutch Shell PLC has suspended the export of 150,000 barrels per day of crude oil because of community unrest in southern Nigeria, a company spokesman said. Villagers from K-Dere in the restive Ogoniland had stormed the facility that feeds the Bonny export terminal, disrupting supply of crude. It was the second seizure in two weeks. Shell reported on May 15 that protesters occupied the same facility, causing a daily output loss of 170,000 barrels. Rigzone - June 2, 2007.

    Heathrow Airport has won approval to plan for the construction of a new 'green terminal', the buildings of which will be powered, heated and cooled by biomass. The new terminal, Heathrow East, should be completed in time for the 2012 London Olympics. The new buildings form part of operator BAA's £6.2bn 10-year investment programme to upgrade Heathrow. Transport Briefing - June 1, 2007.

    A new algae-biofuel company called LiveFuels Inc. secures US$10 million in series A financing. LiveFuels is a privately-backed company working towards the goal of creating commercially competitive biocrude oil from algae by 2010. PRNewswire - June 1, 2007.

    Covanta Holding Corp., a developer and operator of large-scale renewable energy projects, has agreed to purchase two biomass energy facilities and a biomass energy fuel management business from The AES Corp. According to the companies, the facilities are located in California's Central Valley and will add 75 MW to Covanta's portfolio of renewable energy plants. Alternative Energy Retailer - May 31, 2007.

    Two members of Iowa’s congressional delegation are proposing a study designed to increase the availability of ethanol across the country. Rep. Leonard Boswell, D-Ia., held a news conference Tuesday to announce that he has introduced a bill in the U.S. House, asking for a US$2 million study of the feasibility of transporting ethanol by pipeline. Sen. Tom Harkin, D-Ia., has introduced a similar bill in the Senate. Des Moines Register - May 30, 2007.


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Wednesday, June 13, 2007

Japan's Cosmo Oil plans biofuel plants in Philippines - range of tropical feedstocks

Just when global consultancy Frost and Sullivan says government support and the presence of a law on biofuels have turned the Philippines into one of the most attractive investment sites for biofuels projects, Japanese oil firm Cosmo Oil Co. Ltd., Japan's fourth-largest refiner, has proposed to build a €75/US$100 million bioethanol plant and a €37.6/US$50 million biodiesel processing facility in the province of Leyte, in the central part of the Philippines.

In another development, the FE Global/Asia Clean Energy Services Fund L.P. and the FEGACE Asia Sub-Fund L.P. finalized their investment in Biofuels Resources Inc. (BRI), a company established to construct ethanol plants in the Philippines. The Funds will invest jointly with BronzeOak Philippines Inc. in a series of four special purpose companies focused on ethanol production in the Philippines.

Cosmo Oil
During a recent visit, Cosmo executives made a presentation to provincial officials for the development of biofuel manufacturing plants in the province and possibly in its neighbor province Samar, says Leyte Vice-Governor Miniette Bagulaya.

For the multi-feed ethanol plant, Cosmo plans to establish plantations of high-yield tropical starch and sugar crops:
  • 34,000 hectare (84,000 acre) cassava plantation
  • 36,000 hectare (89,000 acre) sweet potato plantation
  • 76,000 hectare (188,000 acre) yam plantation
  • 40,000 hectare (99,000 acre) sugar cane plantation
Interestingly, Cosmo Oil's bioethanol plant will become the first major facility to use yams as a feedstock. Cassava and sweet potato have already become established ethanol crops.

Yam is the common name given to annual or perennial climbing plants of the Dioscorea genus, the starch-rich root crops of which are edible. Amongst hundreds of cultivars, the Dioscorea rotundata Poir. (white yam) and Dioscorea cayenensis Lam. (yellow yam) are most commonly grown. The roots of the crop can grow up to 2.5 meters in length and weigh up to 70 kg (150 pounds).

Like cassava, yams were traditionally considered to be a survival crop that can be kept in the ground and harvested at times of food scarcity. The tuber still plays a major role in food security in the 'yam belt' in West-Africa, that stretches from Côte d'Ivoire to Nigeria. The crop requires low fertilizer inputs, which is why small farmers have been growing it successfully. However, the crop remains a typically 'understudied' plant and breeding programs can improve productivity. Tuber yields currently vary from 10 up to 25 tonnes per hectare. In 2005, the Philippines produced some 29,000 tons of yams.

Copra, palm oil
Cosmo Oil's biodiesel plant will require 17,000 hectares (42,000 acres) of land for an oil palm plantation and 61,000 hectares (151,000 acres) for copra production from coconuts:
:: :: :: :: :: :: :: :: :: :: :: ::

Cosmo Oil said the fuel products that will be produced from the Leyte plants will be sold to local customers and exported to Japan, Australia, and Europe.

The Philippines are rapidly becoming an attractive investment hub for the South East and East Asian renewable fuel market. The country's recent biofuel legislation in combination with an active effort to attract foreign direct investment is drawing in companies from China, Japan, the EU and the US.

The island state's suitable agro-climatic conditions and its availability of land and labor plays a key role, as does its central geographical position in the region.

Amongst the most recent investors are Eastern Petroleum Corp. which teamed up with Guanxi Group of China for an ethanol project using cassava as feedstock while PNOC-Alternative Fuels Corp. is planning an ethanol plant project worth US$ 1.3 billion (on Chinese investments, see here, on PNOC's biofuel activities, here).

US firm E-Cane Fuel Corp. recently entered the sector by investing €111/US$150 million to put up a fully integrated ethanol processing facility in Central Luzon based on sugarcane.


The latest in the series is the joint FE Global/Asia Clean Energy Services Fund L.P. and FEGACE Asia Sub-Fund L.P. investment in Biofuels Resources Inc. (BRI). The Funds will investwith BronzeOak Philippines Inc. in a series of four special purpose companies focused on ethanol production in the Philippines. San Carlos Bioethanol Inc. is the first in this series of investments. The project will produce and sell 125,000 liters of ethanol daily, using sugar cane juice from local growers as a raw material. One of the most interesting aspects of the project relates to the project’s use of contracts with multiple sugar cane suppliers to secure a stable price for approximately 50% of the raw material needs of the plant.

According to Richard Roberts, Director of FE Clean Energy Group Inc., "The project has a pricing agreement for 50% of the sugar cane that will be used as a feedstock for the plant. The price of this sugar cane will be tied to the sales price of ethanol, thereby lowering the risk of diverging sugar and ethanol prices."

The SCBI project has entered into an ethanol off-take agreement with a prominent Philippine oil refiner. The contract terms provide a guaranteed floor price in USD terms.

The oil refiner’s interest in contracting for ethanol is a result of a law passed by President Arroyo in December 2006 requiring all gasoline sold in the Philippines to contain a minimum of 5% ethanol with an eventual increase to 10% blends by 2010. Richard Roberts said that the San Carlos deal is an important project for the Philippine Government since "SCBI will be the first fuel grade ethanol plant to be constructed in the Philippines."

In addition to the sale of ethanol, SCBI will generate electricity for sale to the local electricity distributor through biomass cogeneration using the bagasse from the milled sugar cane.

FE Clean Energy Group, the fund manager for the Funds, has indicated that the reason that the BRI projects are smart investments is that the future demand for bio-fuels in the Philippines should outpace the supply. The Fund’s equity funding for the project totals $7,935,000.


Image: yams are a staple food in West Africa. Credit: IITA.

More information:
Yam profile at the International Institute of Tropical Agriculture (IITA).
Yam factsheet at the Global Crop Diversity Trust.


posted by Biopact team at 1:55 PM  

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