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    Virent Energy Systems, Inc. announced today that it has closed a US$21 million second round of venture financing. Investor interest in Virent was driven in large part by the Company’s continued development of its innovative BioForming process beyond its traditional hydrogen and fuel gas applications and toward the production of bio-based gasoline, diesel, and jet fuels. Virent Energy Systems - September 6, 2007.

    The U.S. National Ethanol Vehicle Coalition (NEVC) announces that 31 models of motor vehicles will be offered in the U.S. with an E85 capable engine in 2008. Chrysler, Ford, General Motors, Nissan and Mercedes Benz will all offer flexible fuel vehicles (FFVs) in the coming year. The NEVC expects 750,000 such FFVs will be produced in 2008. National Ethanol Vehicle Coalition - September 5, 2007.

    GreenHunter BioFuels, Inc., has begun commercial operations with the start-up of a 1,500 barrel per day methanol distillation system. Methanol is an alcohol used to transesterify vegetable oils into biodiesel. The methanol production facility is a key element of GreenHunter's 105 million gallon per year biodiesel refinery, the largest in the U.S., slated for initial operations during the first quarter of 2008. PRNewswire - September 5, 2007.

    GreenHunter BioFuels, Inc., has begun commercial operations with the start-up of a 1,500 barrel per day methanol distillation system. Methanol is an alcohol used to transesterify vegetable oils into biodiesel. The methanol production facility is a key element of GreenHunter's 105 million gallon per year biodiesel refinery, the largest in the U.S., slated for initial operations during the first quarter of 2008. PRNewswire - September 5, 2007.

    Spanish renewables group Abengoa released its results for the first half of 2007 financial year in which its consolidated sales were €1,393.6 million, which is a 27.9 percent increase on the previous year. Earnings after tax were €54.9 million, an 18.6 percent increase on the previous year's figure of 46.3 million euro. Abengoa is active in the bioenergy, solar and environmental services sector. Abengoa - September 4, 2007.

    Canadian hydro power developer Run of River Power Inc. has reached an agreement to buy privately owned Western Biomass Power Corp. in a $2.2 million share swap deal that could help finance development of new green sources of electricity in British Columbia. The Canadian Press - September 4, 2007.

    As of Sept. 1, a biodiesel blending mandate has come into force in the Czech Republic, requiring diesel suppliers to mix 2 per cent biodiesel into the fuel. The same rule will be obligatory for gasoline starting next year. In 2009 the biofuel ratio will grow to 3.5 percent in gasoline and 4.5 percent in diesel oil. CBW - September 3, 2007.

    Budapest's first biofuel station opens on Monday near the Pesterzsébet (District XX) Tesco hypermarket. This is the third station selling the E85 fuel containing bioethanol in Hungary, as two other stations are encouraging eco-friendly driving in Bábolna and Győr. Caboodle - September 3, 2007.

    Canadian forest products company Tembec announced that it has completed the acquisition of the assets of Chapleau Cogeneration Limited located in Chapleau, Ontario. The transaction includes a biomass fired boiler and steam turbine with an installed capacity of 7.2 megawatts. Consideration for the assets consists of a series of future annual payments to 2022, with a present value of approximately $1 million. Tembec - September 1, 2007.

    Innovative internet and cable/satellite channel CurrentTV is producing a documentary on Brazil's biofuel revolution. Biopact collegues and friends Marcelo Coelho (EthanolBrasil Blog), Henrique Oliveira (Ethablog) and Marcelo Alioti (E-Machine) provided consulting on the technical, economic, environmental and social aspects of Brazil's energy transformation. ProCana - August 31, 2007.

    Oil major BP Plc and Associated British Foods Plc won competition clearance from the European Commission on to build a plant to make transport fuel from wheat in Hull, northeast England. U.S. chemical company DuPont is also involved. Reuters UK - August 31, 2007.

    The government of the Indian state of Orissa announced its policy for biofuel production which includes a slew of incentives as well as measures to promote the establishment of energy plantations. The state aims to bring 600,000 hectares of barren and fallow land under Jatropha and Karanj. At least 2 million hectares degraded land are available in the State. The new policy's other objectives are to provide a platform for investors and entrepreneurs, market linkages and quality control measures. Newindpress - August 29, 2007.

    Brazil's state-run oil company Petrobras said today it expects to reach large scale cellulosic ethanol production in 2015, with the first plant entering operations as early as 2011. Lignocellulosic biomass is the most abundant biological material on the planet, making up the bulk of the structure of wood and plants. In a first phase, Petrobras intends to use bagasse as a feedstock. Reuters / MacauHub- August 29, 2007.

    Seattle based Propel Biofuels, is announcing a $4.75 million first round of capital from @Ventures and Nth Power. The money will be used to help Propel set up and manage biodiesel fueling stations. BusinessWire - August 29, 2007.

    BioEnergy International, a science and technology company committed to developing biorefineries to produce fuels and specialty chemicals from renewable resources, announced today the closing of a major US$61.6 million investment that will provide funding for the Company’s three strategic initiatives: generating secure cash flow from its conventional ethanol platform, product diversification through the introduction of novel biocatalysts for the manufacture of green chemicals and biopolymers and the integration of its cellulose technology. BusinessWire - August 28, 2007.

    German company Verbio Vereinigte BioEnergie, the biggest biofuels producer in Europe, says it is considering plans to invest up to €100/US$136.5 million in a biofuel production facility in Bulgaria. The company wants the new facility to be located close to a port and Bulgaria's city of Varna on the Black Sea is one of the options under consideration. If Verbio goes through with the plan, it would produce both biodiesel and bioethanol, making Bulgaria a major source of biofuels in southeastern Europe. Verbi currently produces around 700,000 tonnes of biofuels per year. Sofia News Agency - August 27, 2007.

    Czech brown-coal-fired power plant Elektrárna Tisová (ETI), a unit of the energy producer ČEZ, could co-fire up to 40,000 tons of biomass this year, the biggest amount in the company’s history, said Martin Sobotka, ČEZ spokesman for West Bohemia. ETI burned more than 19,000 tons of biomass in the first half of 2007. The company’s plan reckoned with biomass consumption of up to 35,000 tons a year. Czech Business Weekly - August 27, 2007.

    PetroSun, Incorporated announced recently that it has formed PetroSun BioFuels Mexico to establish algae-to-biofuel operations in the State of Sonora, Mexico. PetroSun BioFuels Mexico will enter into joint venture agreements to develop algae cultivation farms and extraction plants in Sonora and southern Arizona that will produce algal oil, algae biomass products and excess electricity for the Mexican and U.S. markets. MarketWire - August 27, 2007.

    China's Yunnan Province hopes to reach an annual output of 2 million tons (approx. 417 million gallons) of fuel ethanol by 2010, according to the province's fuel ethanol industry development plan released recently by the Yunnan Economic and Trade Commission, state media report. Interfax China - August 23, 2007.

    Seven companies have teamed up to create Kazakhstan's first Biofuel Association. Its aim is to integrate interested parties for creating favorable conditions to have the country’s biofuel industry developed. An initiator and coordinator of the Association is the National Holding KazAgro, the Agriculture Ministry’s press service informs. KazInform - August 23, 2007.

    Canadian forest products company Tembec today announced that it has completed the acquisition of the assets of Chapleau Cogeneration Limited located in Chapleau, Ontario. The transaction closed on August 15 and includes a biomass fired boiler and steam turbine with an installed capacity of 7.2 megawatts. Consideration for the assets consists of a series of future annual payments to 2022, with a present value of approximately $1 million. Newswire Canada - August 22, 2007.

    Taiwan's representative to Brazil, Chou Shu-yeh, is urging Taiwan's government and private enterprises to invest in Brazil's biomass energy sector. Chou was speaking at a workshop on global investment and trade opportunities in Taipei. RTi - August 22, 2007.

    An algae-to-biofuels startup by the name of Inventure Chemical has raised about $1.5 million to continue its development of a chemical process that turns algae into biodiesel and ethanol. One of the biggest backers of the company is Imperium Renewables, a biodiesel producer. Seattle Post Intelligencer - August 22, 2007.

    The government of India's Karnataka state has approved the blending of six million litres of ethanol with diesel for use as fuel in State Road Transport Corporation (KSRTC) vehicles. Automotive World - August 21, 2007.

    VeraSun Energy Corporation, one of America's largest ethanol producers, announced that it closed on its acquisition with ASAlliances Biofuels, LLC for three ethanol plants with a combined annual production capacity of approximately 330 million gallons (1.25 billion liters) per year. VeraSun - August 21, 2007.

    Fujitsu develops a biodegradable laptop chassis from corn-starch bioplastic. The material reduces carbon dioxide emissions by 15% compared to a chassis made from petroleum-based plastics. CNET Asia - August 20, 2007.

    India's Rana Sugars Ltd has decided to set up a new plant for producing ethanol in Uttar Pradesh with an estimated investment of €9 to 10.9 (US$12.2 to 14.7). The facility will have a capacity of 180,000 liters per year and will generate, besides ethanol, 26MW of carbon-neutral power from bagasse. Economic Times India - August 20, 2007.

    Prominent pro-democracy activists staged a rare protest in Myanmar's biggest city Sunday, marching against a massive recent fuel price hike. "We are staging this performance to reflect the hardship our people are facing due to the government's fuel price hike," said Min Ko Naing, a leader of the 88 Generation Students' Group. Myanmar's ruling military junta imposed a surprise 100 percent hike on fuel at state-owned gas stations on Wednesday. The move was followed by increases in bus fares and commodity prices. The Star - August 19, 2007.

    Canada's Cavendish Farms, one of the country's largest food processing companies is to build a biogas plant to recycle spent cooking oils, starch and sludge from its waste-water plant to fuel its potato processing operation. Use of the carbon-neutral biofuel will limit the amount of bunker C fuel oil currently in use by the company. The plant, expected to be ready for operation by next fall, has received a $14-million loan from the Province of Prince Edward Island. CBC - August 18, 2007.


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Wednesday, August 29, 2007

Report: carbon-negative biomethane cleanest and most efficient biofuel for cars

The UK's Renewable Energy Centre today released its assessment of responses to the King Review of Low Carbon Cars’ call for evidence. It supports the findings of the Biomethane for Transport organisation which found that biogas is the cleanest and most efficient of all transport fuels. Biomethane is carbon-negative, can be readily used in CNG cars and makes use of a wide variety of biomass feedstocks.

In the continuing fight against climate change there have been an increasing number of targets set in the UK and internationally for varying types of energy use and generation. One of the most important areas in which the UK needs to reduce carbon emissions is the transport sector, but it has also proven to be one of the most expensive areas in which to make any significant technological development and improvements.

The King Review of Low Carbon Cars, announced in June as part of the country's 2007 Budget, was intended to build on the progress made in recent reports including the 2007 Energy White paper and examine the vehicle and fuel technologies which over the next 25 years could help to decarbonise road transport, particularly cars. Following the publication of the report issued by HM Treasury and led by professor Julia King of Aston University, Gordon Brown issued a call for evidence from all interested parties on how best to reduce emissions from road transport.

The Renewable Energy Centre commented that the report was long overdue, as whilst emissions from other sectors, such as the use of domestic energy, has fallen or become more stable, the transport sector's emissions continue to increase and currently accounts for over 20% of the UK’s total CO2 output. The Cambridge report produced this year, estimates that the UK will be unable to meet the reduction targets set following the Kyoto agreement in 1997.

The Biomethane for Transport organisation responded to the King Review and stated that the one of the most economically viable directions to take would be vehicle and fuel improvements that can be adapted to existing internal combustion engines.

The Renewable Energy Centre supported the organisation’s findings that the use of biogas for transport had many advantages over many of the other technologies proposed. Biomethane has the lowest gas emissions of any biofuel and the capture, upgrading and burning of the gas actually produces fewer emissions than if the organic waste used was left to decompose naturally. The organisation confirms findings from previous research as well as results from longstanding trials in continental Europe.

An overview of the strong arguments in favor of biomethane for transport, summarized from the Biomethane for Transport King Review Response [*.pdf]:
  • Negative Carbon Balance – Biomethane produced from the decomposition of organic waste (e.g. anaerobic digestion) actually has a negative ‘well to wheel’ carbon balance. This is due to the fact that capturing, upgrading and burning the gas prevents methane from being released into the atmosphere when waste naturally decomposes, and also because methane is an inherently low carbon fuel. The ‘Biogas as a Road Transport Fuel’ report estimated that using biomethane as a fuel in the HGV and LGV fleets could provide a saving of up to 9.1 million tonnes of CO2 per year.
  • Low Emissions of Local Pollutants – Methane fuelled vehicles have extremely low emissions of local pollutants, including NOx and particulates when compared to modern petrol and diesel vehicles. Substitution of diesel and petrol vehicles with biomethane (and also fossil methane) would have a beneficial effect on air quality.
  • Low Noise – Methane fuelled engines run more quietly than petrol and diesel, vehicles, particularly so when compared with the latter. This can have a beneficial effect on urban environmental quality, and also have economic benefits where vehicle movements are restricted because of noise limitations.
  • Link With Waste Management – Many local authorities are either developing, or planning to develop, anaerobic digestion facilities as an alternative pathway to landfill for organic waste. Vehicles are one of the best ways of using the biomethane produced from these plants. By tying the two areas together local authorities are provided with a disposal pathway for organic waste, reducing the amount of waste sent to landfill, and vehicles are provided with fuel. Costs are reduced for all parties through a joint approach.
  • Compatibility With Existing ICE Technology – Methane fuel is used in modified internal combustion engines, therefore the fuel is able to take advantage of improvements in this technology. Using biomethane alongside other technologies can therefore provide significant co-benefits, e.g. a hybrid running on biomethane would benefit from the inherent carbon reductions produced by both technologies
When biomethane is produced from dedicated energy crops, it can yield more energy than any other current type of biofuel. The green gas can be made from a very wide range of biomass crops as well as from abundant crop residues. Scientists have found [*.pdf] that for temperate grass species, one hectare can yield between 2,900–5,400 cubic meters of methane per year, enough to fuel a passenger car for 40,000 to 60,000 kilometers (one acre of crops can power a car for 10,000 to 15,000 miles).

Moreover, biogas can be made even cleaner by coupling its production to dedicated carbon storage technologies and sites, independently from power stations. By capturing CO2 from biogas before it is combusted - the least costly carbon capture strategy for any fuel source - and sequestring the greenhouse gas under ground, the fuel becomes thoroughly carbon-negative. The use of this cleaned biogas, upgraded to biomethane, takes CO2 emissions from the past out of the atmosphere (more here and here). Only biofuels allow the creation of such carbon-negative energy systems - all other energy concepts are either carbon-neutral or carbon-positive:
:: :: :: :: :: :: :: :: :: :: :: :: :: ::

The Biomethane for Transport organisation also suggests a way in which organic waste can be used more productively, whereby a waste management plant is linked with anaerobic digestion facilities to make use of the methane gas produced. This would provide a useful solution for organic waste, in turn reducing the amount of waste sent to a landfill and provides vehicles with a source of renewable fuel.

However, some argue that the results of this review will have little impact on the cars driven in the UK in the short term, particularly due to the fact that none of the major car manufacturing operations in the UK are British-owned anymore, and the review will only have limited influence on foreign-owned companies.

Richard Simmons, Founder of The Renewable Energy Centre commented “Biomethane should prove to be a very realistic part of the future alternative to fossil fuels but will only truly reduce the impact we are having on the environment if we realise that it cannot be used in isolation. It is important that we work towards more fuel efficient cars and reduce our often excessive use of vehicles. This is a particularly vital step for all car owners to play their part in reducing fuel emissions”.

Biogas is increasingly being used in Europe, both for electricity generation as for transport. A recent 'Biogas Barometer' report, published by a consortium of renewable energy groups led by France's Observ'ER, cites a 13.6% increase growth in biogas use for primary energy production between 2005 and 2006 in the EU (earlier post).

The total energy potential for biogas in the EU has been the subject of several projections and scenarios, with the most optimistic showing that it can replace all European natural gas imports from Russia by 2020 (more here). Germany recently started looking at opening its main natural gas pipelines to feed in the renewable green gas. And an EU project is assessing the technical feasibility of doing the same on a Europe-wide scale (previous post).

Biogas as a transport fuel offers particularly interesting prospects for the developing world, where oil infrastructures are not yet developed extensively. By relying on locally produced biomethane used in CNG cars, these countries could leapfrog into a clean, secure and green post-oil future. A country like Pakistan showed that converting the automobile fleet to CNG is feasible: in less than two years time, it converted 1 million cars to run on compressed gas (earlier post).

For comprehensive overviews of the latest developments in biogas research, development and applications, please search the Biopact website.


Graph: energy obtained per hectare of energy crops for selected bioconversion processes. Source: L-B- Systemtechnik GmbH Ottobrunn.

References:
HM Treasury: The King Review of low-carbon cars.

The UK's Renewable Energy Center.

National Society for Clean Air and Environmental Protection, Biomethane for Transport: Biomethane for Transport King Review Response [*.pdf] - August 16, 2007

Annimari Lehtomäki: Biogas production from energy crops and crop residues [*.pdf], Jyväskylä Studies in Biological and Environmental Sciences 163, PhD Dissertation, Faculty of Mathematics and Sciences, University of Jyväskylä, 2006.

Reinhold Wurster, GM Well-to-Wheel-Studie - Ergebnisse und Schlüsse sowie Vergleich mit anderen Arbeiten und Ausblick auf Kraftstoffpotentiale und -kosten [*.pdf], L-B- Systemtechnik GmbH Ottobrunn, November 2003.

Biopact: Experts see 2007 as the year of biogas; biomethane as a transport fuel - January 09, 2007

Biopact: Pre-combustion CO2 capture from biogas - the way forward? - March 31, 2007

Biopact: Biopact to chair Sparks & Flames conference panel on carbon-negative biofuels - August 08, 2007

Biopact: Hydrogen out, compressed biogas in - October 01, 2006

1 Comments:

Jan said...

Life-cycle assessment of green technologies is a challenging endeavor. When carbon-offset projects are created using Renewables like solar and wind, traditionally the energy required to manufacture, ship and install these projects has not been included in the carbon balance sheet. At this point those externalities are a by-product of industrial society’s business standards. Back-of-the envelope calculations show that on any significantly sized project these “carbon echoes” are nominal to their life-time of energy production of these systems. Additionally, value must be weighted in terms of the benefit towards the energy transition.

When addressing biofuels, the life-cycle effects of agricultural practices may have a significant effect on the environmental benefits of fuel usage. When an old growth rainforest is clear cut to plant a homogenous biofuel stock the perceived environmental benefit is incorrect. It’s like printing fake environmental bills. Other interesting issues regarding biofuels could include:

Transportation: If the biofuels are shipped half-way around the world powered by a diesel ship how does that affect the carbon reduction associated with the use or distribution of that fuel. Measurement and verification of the global supply chain are becoming more common and will lead to better accounting and in the future. “You can’t manage what you don’t measure,” so look for these measurement to lead to actions: sourcing bio-fuels locally, eventually shipping these fuels in transportation powered by bio-fuels.

Credit: Who gets credit for biofuels?… currently it is fuel mixing industry who is facing regulations and who is required to integrate alternative fuels in their distribution. They are asked to pass on these tax credits to consumers at the pumps, but direct transmission is yet unclear. Consumers are ultimately the ones who choose which vehicles and fuels they will purchase… shouldn’t they get credit for those environmental actions. If a company wants to decrease their carbon footprint and decides to purchase bio-diesel for their fleet, shouldn’t they be the ones to get credit for a GHG reduction. If both the company and the fuel supplier get credit than someone is double counting.

With this new green industrial revolution come vast inefficiencies which only can be addressed by leaders with integrity. The initial step is a rating system for the bio-fuels industry according to a international standard which quantifies the current relevant concerns. A universal fuel metric that shows the environmental cost of fuels and constantly shifts the taxes or rebates for these fuels to meet incremental goals will be the most affective and transparent method of shifting the transportation sector.

Jan Rosen - MotivEarth - www.motivearth.com

1:08 PM  

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