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    Jo-Carroll Energy announced today its plan to build an 80 megawatt, biomass-fueled, renewable energy center in Illinois. The US$ 140 million plant will be fueled by various types of renewable biomass, such as clean waste wood, corn stover and switchgrass. Jo-Carroll Energy - September 18, 2007.

    Beihai Gofar Marine Biological Industry Co Ltd, in China's southern region of Guangxi, plans to build a 100,000 tonne-per-year fuel ethanol plant using cassava as feedstock. The Shanghai-listed company plans to raise about 560 million yuan ($74.5 million) in a share placement to finance the project and boost its cash flow. Reuters - September 18, 2007.

    The oil-dependent island state of Fiji has requested US company Avalor Capital, LLC, to invest in biodiesel and ethanol. The Fiji government has urged the company to move its $250million 'Fiji Biofuels Project' forward at the earliest possible date. Fiji Live - September 18, 2007.

    The Bowen Group, one of Ireland's biggest construction groups has announced a strategic move into the biomass energy sector. It is planning a €25 million investment over the next five years to fund up to 100 projects that will create electricity from biomass. Its ambition is to install up to 135 megawatts of biomass-fuelled heat from local forestry sources, which is equal to 50 million litres or about €25m worth of imported oil. Irish Examiner - September 16, 2007.

    According to Dr Niphon Poapongsakorn, dean of Economics at Thammasat University in Thailand, cassava-based ethanol is competitive when oil is above $40 per barrel. Thailand is the world's largest producer and exporter of cassava for industrial use. Bangkok Post - September 14, 2007.

    German biogas and biodiesel developer BKN BioKraftstoff Nord AG has generated gross proceeds totaling €5.5 million as part of its capital increase from authorized capital. Ad Hoc News - September 13, 2007.

    NewGen Technologies, Inc. announced that it and Titan Global Holdings, Inc. completed a definitive Biofuels Supply Agreement which will become effective upon Titan’s acquisition of Appalachian Oil Company. Given APPCO’s current distribution of over 225 million gallons of fuel products per year, the initial expected ethanol supply to APPCO should exceed 1 million gallons a month. Charlotte dBusinessNews - September 13, 2007.

    Oil prices reach record highs as the U.S. Energy Information Agency releases a report that showed crude oil inventories fell by more than seven million barrels last week. The rise comes despite a decision by the international oil cartel, OPEC, to raise its output quota by 500,000 barrels. Reuters - September 12, 2007.

    OPEC decided today to increase the volume of crude supplied to the market by Member Countries (excluding Angola and Iraq) by 500,000 b/d, effective 1 November 2007. The decision comes after oil reached near record-highs and after Saudi Aramco announced that last year's crude oil production declined by 1.7 percent, while exports declined by 3.1 percent. OPEC - September 11, 2007.

    GreenField Ethanol and Monsanto Canada launch the 'Gro-ethanol' program which invites Ontario's farmers to grow corn seed containing Monsanto traits, specifically for the ethanol market. The corn hybrids eligible for the program include Monsanto traits that produce higher yielding corn for ethanol production. MarketWire - September 11, 2007.

    Ethanol Statistics, a new industry information resource, reports that U.S. petroleum refiners Citgo and Valero are the top 2 ethanol importing companies in the United States in the first 6 months of 2007. Overall imports were up 7.64% compared to the same period in 2006, from 193,620 gallons to 208,404 gallons. Chevron imported 43% less, whereas Noble and ConocoPhilips' imports were up 255% and 372% respectively. Data are reported in 'The United States Ethanol Market 2007’, which also provides a breakdown of U.S. ethanol production costs and a detailed analysis of U.S. consumption and production. Ethanol Statistics - September 10, 2007.

    The government of British Columbia launches a $100,000 study into the production of biogas, heat, power and clean water from household waste streams. Raw sewage water can be cleaned by microbial fuel cells that deliver electricity as they clean the water; other technologies include classic anaerobic fermentation. Canada.com - September 10, 2007.

    Saudi Aramco in its Annual Review 2006 said that last year the company's crude oil production declined by 1.7 percent, while exports declined by 3.1 percent, compared with the previous year. Crude oil production in 2006 averaged 8.9 million barrels of oil a day (b/d) and exports 6.9 million b/d. Saudi Aramco - September 9, 2007.

    Chinese packaging manufacturer Livan Biodegradable Product Co. Ltd. will build plants in Alsozsolca and Edeleny in eastern Hungary at a combined cost of €18 million by 2009, the Hungarian economics ministry says. The plants, which will employ 800 people, are planned to produce initially 50, 000 metric tons a year of environmentally-friendly packaging material, and double that amount by a later date. Livan will use corn to manufacture biodegradable packaging boxes with similar properties to petroleum-based plastic boxes used in the food industry. Dow Jones Newswires - September 7, 2007.

    South Korea aims to raise biodiesel content in domestic diesel to 3 percent from the current 0.5 percent by 2012, Seoul's energy ministry said today. The government was initially set last year to impose a mandatory 5 percent blend, in line with the level targeted by the European Union by 2010, but the country's powerful refining lobby opposed the move, forcing it to push back the target, according to market sources. Reuters - September 7, 2007.

    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.


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Tuesday, September 18, 2007

Sri Lankan students launch initiative to promote biofuels

In an interesting development, students from the Master in Business Administration class at the University of Colombo have formed a society to promote biofuels across the island state. The move is a bottom-up initiative, from socially and environmentally conscious youth, who look into their nation's long-term future.

They describe their motivation in Sri Lanka's Daily News. The students are very optimistic about the advantages of ethanol and biodiesel, but perhaps a bit naive when it comes to the potential environmental costs of biofuels and the complex economic and social drivers that dictate their feasibility. Still, let's listen to their youthly enthusiasm and to the reasons as to why they launched their biofuel society:
The recent surge in [interest] in environmental issues affecting our planet coupled with the increasing costs of fossil fuels such as oil and gas have led to an increase in interest in biofuels. [...] Sri Lankan expenditure on imported fossil fuel is totaling to US Dollars 1,029 Millions in the year 2006 (according to Central Bank Report) and day by day cost of living is going up. We use fossil fuel for power generation to lighting lamps and if an alternative energy source such as renewable energy can be used to save Billions of Dollars we spent on importation of fossil fuel.
The arguments dealing with energy security and import costs are certainly strong ones. High fossil fuel prices are truly disastrous for developing countries and especially hurt the poor. Some of the least developed countries are already spending twice as much on importing oil than on such basic social services as health care (earlier post).
Biofuels can also provide us with a sustainable form of energy. This is great news for future generations but also effects us today as dwindling supplies of oil and gas force prices upwards meaning that we pay more for our gas and petroleum as well as fossil fuel generated electricity.
'Peak Oil and Gas' remains the dark shadow that looms over all nations that want to achieve a certain degree of modernity. Abundant and low-cost energy is absolutely key to the development of economies and societies, especially when they are making the transition from low to higher development. This entails a phase of high energy intensity, requiring abundant and secure supplies of energy. Currently biofuels offer the only feasible alternative to petroleum.

Obviously, 'Peak Oil' is only a problem for those who believe in the ideologies of 'progress' and 'modernity'. But then, these discourses have found their strongest adherents in developing countries. Only in 'post-modern' societies, and amongst their middle classes that have gained all the wealth of the world, can one find the questionable idea that humanity should somehow revert back to pre-modern times. Luckily, this is remains a marginal discourse.

The Sri Lankan students continue by highlighting the fact that biofuels can be produced locally. In the words of FAO chief Jacques Diouf, they also promise to bring a 'rural renaissance'. About 80 per cent of the country's 20 million inhabitants is made up of a rural population and farmers:
There are 3.5 million households in Sri Lanka with a high potential of promoting ethanol production at domestic level. [...] Biofuels can easily be made at home and by local communities and farming groups. This can again make biofuels a cheap alternative to fossil fuels and can help to strengthen local communities both socially and economically.
There are many environmental and economic benefits of using ethanol, they students think, and they list them as follows:
:: :: :: :: :: :: :: :: :: ::

  • Reduced harmful exhaust emissions
  • Sustainable energy source
  • Reduced dependence on foreign sources of oil and gas
  • Biodegradable with no toxic effect on environment
  • Does not contribute to greenhouse effect due to growth / burning cycle
  • Cheap method of achieving high octane fuel
  • Many cars are already capable of running on ethanol with no modifications
  • Can reduce levels of disease causing emissions from petrol blends.
  • Can be made at home - reducing energy costs associated with transportation
The biofuels that will be made in Sri Lanka would be first generation fuels obtained from tropical crops such as sugar cane, jatropha, coconut, cassava and tropical tree and grass species, as well as from the island's abundant agriculture and forestry residues. For these crops and fuels - contrary to biofuels made from crops such as canola or maize - the science is clear: they substantially reduce carbon emissions and can be grown in a sustainable manner.
Biofuels have an enormous environmental benefit; they can help reduce the levels of toxins in our air and water. They can reduce the advance of global warming and can help reduce fuel needs by providing more efficient models of energy creation. When a biofuel is burnt to release the energy contained within the biomass, the carbon that is released has recently been taken from the atmosphere by the plants that the biofuel derived from.
Sri Lanka needs a positive change, the students conclude:
We, a team of motivated students reading for a Master in Business Administration at The University of Colombo are aligned to create the positive change to Sri Lanka with bio fuel. We have formed a society called REBIL to further experiment on the possibilities of producing Ethanol out of illicit liquor.

REBIL stands for Renewable Energy through Illicit Local Liquor and promotes bio fuel to reduce the nations' dependency on imported crude oil, helping to reduce environmental effects of daily life and to create job opportunities to 3.5 million rural families.

We invite you, the responsible citizens of Sri Lanka to join hands with us to make this dream a reality.
Photo: Sri Lanka's mainly rural population takes advantage of the country's wet tropical climate to produce tea, rubber, coconuts and spices. The agro-ecological conditions on the island are highly suitable for a range of high-yielding biofuel crops.

References:
Daily News (Sri Lanka): Biofuel: cheaper, more environmentally friendly - September 18, 2007.

Rural Poverty Portal: Geography, agriculture and economy of Sri Lanka.

Biopact: High oil prices disastrous for developing countries - September 12, 2007

Biopact: FAO chief calls for a 'Biopact' between the North and the South - August 15, 2007


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