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    Biopact is moving to a new server this weekend, so at times the site may be difficult to access or temporarily offline. We should be up and running again on Monday. Biopact - October 27, 2007.

    U.S. oil prices and Brent crude rocketed to all-time highs again on a record-low dollar, tensions in the Middle East and worries over energy supply shortages ahead of the northern hemisphere's winter. Now even wealthy countries like South Korea are warning that the record prices will damage economic growth. In the developing world, the situation is outright catastrophic. Korea Times - October 26, 2007.

    Ethablog's Henrique Oliveira, a young Brazilian biofuels business expert, is back online. From April to September 2007, he traveled around Brazil comparing the Brazilian and American biofuels markets. In August he was joined by Tom MacDonald, senior alcohol fuels specialist with the California Energy Commission. Henrique reports about his trip with a series of photo essays. EthaBlog - October 24, 2007.

    Italy's Enel is to invest around €400 mln in carbon capture and storage and is looking now for a suitable site to store CO2 underground. Enel's vision of coal's future is one in which coal is used to produce power, to produce ash and gypsum as a by-product for cement, hydrogen as a by-product of coal gasification and CO2 which is stored underground. Carbon capture and storage techniques can be applied to biomass and biofuels, resulting in carbon-negative energy. Reuters - October 22, 2007.

    Gate Petroleum Co. is planning to build a 55 million-gallon liquid biofuels terminal in Jacksonville, Florida. The terminal is expected to cost $90 million and will be the first in the state designed primarily for biofuels. It will receive and ship ethanol and biodiesel via rail, ship and truck and provide storage for Gate and for third parties. The biofuels terminal is set to open in 2010. Florida Times-Union - October 19, 2007.

    China Holdings Inc., through its controlled subsidiary China Power Inc., signed a development contract with the HeBei Province local government for the rights to develop and construct 50 MW of biomass renewable energy projects utilizing straw. The projects have a total expected annual power generating capacity of 400 million kWh and expected annual revenues of approximately US$33.3 million. Total investment in the projects is approximately US$77.2 million, 35 percent in cash and 65 percent from China-based bank loans with preferred interest rates with government policy protection for the biomass renewable energy projects. Full production is expected in about two years. China Holdings - October 18, 2007.

    Canadian Bionenergy Corporation, supplier of biodiesel in Canada, has announced an agreement with Renewable Energy Group, Inc. to partner in the construction of a biodiesel production facility near Edmonton, Alberta. The company broke ground yesterday on the construction of the facility with an expected capacity of 225 million litres (60 million gallons) per year of biodiesel. Together, the companies also intend to forge a strategic marketing alliance to better serve the North American marketplace by supplying biodiesel blends and industrial methyl esters. Canadian Bioenergy - October 17, 2007.

    Leading experts in organic solar cells say the field is being damaged by questionable reports about ever bigger efficiency claims, leading the community into an endless and dangerous tendency to outbid the last report. In reality these solar cells still show low efficiencies that will need to improve significantly before they become a success. To counter the hype, scientists call on the community to press for independent verification of claimed efficiencies. Biopact sees a similar trend in the field of biofuels from algae, in which press releases containing unrealistic yield projections and 'breakthroughs' are released almost monthly. Eurekalert - October 16, 2007.

    The Colorado Wood Utilization and Marketing Program at Colorado State University received a $65,000 grant from the U.S. Forest Service to expand the use of woody biomass throughout Colorado. The purpose of the U.S. Department of Agriculture grant program is to provide financial assistance to state foresters to accelerate the adoption of woody biomass as an alternative energy source. Colorado State University - October 12, 2007.

    Indian company Naturol Bioenergy Limited announced that it will soon start production from its biodiesel facility at Kakinada, in the state of Andhra Pradesh. The facility has an annual production capacity of 100,000 tons of biodiesel and 10,000 tons of pharmaceutical grade glycerin. The primary feedstock is crude palm oil, but the facility was designed to accomodate a variety of vegetable oil feedstocks. Biofuel Review - October 11, 2007.

    Brazil's state energy company Petrobras says it will ship 9 million liters of ethanol to European clients next month in its first shipment via the northeastern port of Suape. Petrobras buys the biofuel from a pool of sugar cane processing plants in the state of Pernambuco, where the port is also located. Reuters - October 11, 2007.

    Dynamotive Energy Systems Corporation, a leader in biomass-to-biofuel technology, announces that it has completed a $10.5 million equity financing with Quercus Trust, an environmentally oriented fund, and several other private investors. Ardour Capital Inc. of New York served as financial advisor in the transaction. Business Wire - October 10, 2007.

    Cuban livestock farmers are buying distillers dried grains (DDG), the main byproduct of corn based ethanol, from biofuel producers in the U.S. During a trade mission of Iowan officials to Cuba, trade officials there said the communist state will double its purchases of the dried grains this year. DesMoines Register - October 9, 2007.

    Brasil Ecodiesel, the leading Brazilian biodiesel producer company, recorded an increase of 57.7% in sales in the third quarter of the current year, in comparison with the previous three months. Sales volume stood at 53,000 cubic metres from August until September, against 34,000 cubic metres of the biofuel between April and June. The company is also concluding negotiations to export between 1,000 to 2,000 tonnes of glycerine per month to the Asian market. ANBA - October 4, 2007.

    PolyOne Corporation, the US supplier of specialised polymer materials, has opened a new colour concentrates manufacturing plant in Kutno, Poland. Located in central Poland, the new plant will produce colour products in the first instance, although the company says the facility can be expanded to handle other products. In March, the Ohio-based firm launched a range of of liquid colourants for use in bioplastics in biodegradable applications. The concentrates are European food contact compliant and can be used in polylactic acid (PLA) or starch-based blends. Plastics & Rubber Weekly - October 2, 2007.

    A turbo-charged, spray-guided direct-injection engine running on pure ethanol (E100) can achieve very high specific output, and shows “significant potential for aggressive engine downsizing for a dedicated or dual-fuel solution”, according to engineers at Orbital Corporation. GreenCarCongress - October 2, 2007.

    UK-based NiTech Solutions receives £800,000 in private funding to commercialize a cost-saving industrial mixing system, dubbed the Continuous Oscillatory Baffled Reactor (COBR), which can lower costs by 50 per cent and reduce process time by as much as 90 per cent during the manufacture of a range of commodities including chemicals, drugs and biofuels. Scotsman - October 2, 2007.

    A group of Spanish investors is building a new bioethanol plant in the western region of Extremadura that should be producing fuel from maize in 2009. Alcoholes Biocarburantes de Extremadura (Albiex) has already started work on the site near Badajoz and expects to spend €42/$59 million on the plant in the next two years. It will produce 110 million litres a year of bioethanol and 87 million kg of grain byproduct that can be used for animal feed. Europapress - September 28, 2007.

    Portuguese fuel company Prio SA and UK based FCL Biofuels have joined forces to launch the Portuguese consumer biodiesel brand, PrioBio, in the UK. PrioBio is scheduled to be available in the UK from 1st November. By the end of this year (2007), says FCL Biofuel, the partnership’s two biodiesel refineries will have a total capacity of 200,000 tonnes which will is set to grow to 400,000 tonnes by the end of 2010. Biofuel Review - September 27, 2007.

    According to Tarja Halonen, the Finnish president, one third of the value of all of Finland's exports consists of environmentally friendly technologies. Finland has invested in climate and energy technologies, particularly in combined heat and power production from biomass, bioenergy and wind power, the president said at the UN secretary-general's high-level event on climate change. Newroom Finland - September 25, 2007.

    Spanish engineering and energy company Abengoa says it had suspended bioethanol production at the biggest of its three Spanish plants because it was unprofitable. It cited high grain prices and uncertainty about the national market for ethanol. Earlier this year, the plant, located in Salamanca, ceased production for similar reasons. To Biopact this is yet another indication that biofuel production in the EU/US does not make sense and must be relocated to the Global South, where the biofuel can be produced competitively and sustainably, without relying on food crops. Reuters - September 24, 2007.

    The Midlands Consortium, comprised of the universities of Birmingham, Loughborough and Nottingham, is chosen to host Britain's new Energy Technologies Institute, a £1 billion national organisation which will aim to develop cleaner energies. University of Nottingham - September 21, 2007.

    The EGGER group, one of the leading European manufacturers of chipboard, MDF and OSB boards has begun work on installing a 50MW biomass boiler for its production site in Rion. The new furnace will recycle 60,000 tonnes of offcuts to be used in the new combined heat and power (CHP) station as an ecological fuel. The facility will reduce consumption of natural gas by 75%. IHB Network - September 21, 2007.


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Saturday, October 27, 2007

Bioenergy and Africa's Green Revolution themes at ASA-CSSA-SSSA meetings

The capacity of biofuels to tackle climate change and the consequences of record oil prices, and the emerging 'Green Revolution' in Africa will be amongst the themes of this year's International Annual Meetings of the American Society of Agronomy (ASA), Crop Science Society of America (CSSA), and Soil Science Society of America (SSSA) to be held November 4-8. More than 4,000 scientists and professionals from around the world will attend research presentations on climate change, bioenergy, urban planning, crop production, hazardous waste, human health and more.

Biofuels from biomass
Researchers have been studying fuels from biomass for years and will report on the progress they are making. Amongst them is Dr. Jorge Da Silva, associate professor of molecular genetics and plant breeding, Soil & Crop Sciences Department, Texas A&M University, who will discuss the use of sugar instead of corn for fuels.
Production of energy, such as ethanol, from sugar is more efficient than production from grains in both cost per unit and energy efficiency. Sugarcane is ranked first among all other crops for biomass production and can be a key component of biomass supply. Technology for producing ethanol from sugarcane is well established in tropical countries such as Brazil, where energy independence has been achieved. - Jorge Da Silva of Texas A&M University says.
His presentation will be during the symposium 'Agronomic Aspects of Biofuel Crop Production', November 6.

Dr. Bill Rooney, professor of plant breeding and genetics, Soil & Crop Sciences Department, Texas A&M University will discuss a regionally sensitive approach to biofuel production: the best source for biofuel in a region is contingent on the environment, growing season, water and fertility availability, stress resistance, and processing and conversion techniques. In any location, there will be several species grown for biomass.

During the 'Breeding and Genomics of Crops for Bioenergy' symposium Rooney will further highlight his work on developing non-food biomass sorghum varieties specifically for bioenergy. Breeding efforts have already resulted in sorghums with a low-lignin content, high biomass yield, drought-resistance and with the capacity to grow in acid soils (earlier post).

Africa's Green Revolution
Three years after the United Nations called for a Green Revolution in Africa, a renowned group of speakers will share the promise of fighting hunger in Africa through agricultural productivity. They will cover sustainable agriculture, nutrition, environment, markets and policies in the continent during the symposium, 'The African Green Revolution Takes Shape'.

Primary speakers will be Dr. Pedro Sanchez, director of tropical agriculture and senior research scholar at The Earth Institute of Columbia University and Jeffrey Sachs, author of The End of Poverty: Economic Possibilities for Our Time and director of The Earth Institute, Quetelet Professor of Sustainable Development and professor of health policy and management at Columbia University:
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Sanchez will open the symposium with his talk, 'The African Green Revolution Moves Forward', focusing on agricultural successes there and how 'smart subsidies' enable the poor to gain access to vital agricultural inputs. He will discuss how Millennium Villages - communities that are voluntarily striving toward a sustainable end to extreme poverty - are drastically improving food production and agribusiness, including the production of bioenergy. These accomplishments raise questions about U.S. food aid policy as shipping food is more expensive than raising crops locally.

In his talk, 'The Economics of the African Green Revolution', Sachs will draw on his work to end world poverty and hunger in discussing effective strategies for progress in Africa. Currently, he is special advisor to United Nations (UN) Secretary-General Ban Ki-moon. From 2002 to 2006, he was director of the UN Millennium Project, charged with creating an action plan to end poverty, hunger and disease worldwide.

Also speaking at the symposium will be Patrick Kabambe of the Malawian Ministry of Agriculture and Food Security, Amadou Niang of the Millennium Development Goals Center, Philip Thornton of the International Livestock Research Institute, and Akin Adesina of the Alliance for a Green Revolution in Africa and Rockefeller Foundation.

The ASA, CSSA and SSSA are educational organizations helping their 11,000+ members advance the disciplines and practices of agronomy, crop and soil sciences by supporting professional growth and science policy initiatives, and by providing quality, research-based publications and a variety of member services.

References:
Eurekalert: The race for biofuels driving alternative sources of biomass - October 26, 2007.

Eurekalert: Now is Africa's turn for a green revolution, global experts say - October 26, 2007.

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China rations diesel, subsidizes biofuel feedstock producers

China is rationing diesel at pump stations in at least four booming coastal provinces in the widest-scale rationing seen since 2003, as red-hot global oil prices hit output at loss-making Chinese refiners. Truck drivers reported long queues at petrol stations along a national highway linking Fujian and Zhejiang provinces, with each truck getting 100 yuan ($13) worth of diesel, or around 20 litres, per visit at a state-run station and 40 litres at a private kiosk.

Many in southern China's Guangdong province, China's manufacturing and export hub, suspended business due to the dearth of fuel, industry officials said.

An alternative to rationing would be to increase the price of fuel to reflect record crude prices. But chinese refiners cannot pass the soaring crude costs on to consumers because Beijing fears stoking already high inflation. Instead it rigidly caps pump fuel rates to shield users from a 50 percent rally in global oil so far this year. China is thus massively subsidizing petroleum fuels.

At the same time, China's Ministry of Finance has finalized a subsidy plan for farmers and firms involved in planting feedstock for China's emerging alternative to oil: the domestic biofuel industry. The plan will be implemented early next year. The news was announced by Liu Yonglu, deputy director of the Ministry of Finance's Tax Department at the Next Biofuels Technologies forum.

The subsidies break down as follows:
  • feedstock producers who plant biofuel crops on land not intended for food will be subsidized RMB 200 (€18.5/$26.9) per mu (€280/$403.5 per hectare) a year
  • feedstock producers who grow crops in forested areas will receive RMB 180 (€18/$24) per mu (€250/$360 per hectare)
Major domestically-produced non-grain feedstock for fuel ethanol in China includes sweet sorghum, sweet potato and cassava, while jatropha is being planted as feedstock for biodiesel.

The subsidies would only go to producers that have guaranteed that end users of the crops are biodiesel and fuel ethanol producers. There is no restriction on the properties of the producers, which could also include foreign enterprises:
:: :: :: :: :: :: :: :: :: ::

The move is the latest gesture from the Chinese government in its efforts to promote the biofuel industry, which will help offset over-dependency on fossil fuels and associated environmental damage. However, after a larger-than-expected amount of corn, a common feedstock for fuel ethanol, was supplied to the profitable deep processing industrial sector last year, the government implemented policies that would encourage only projects that use non-grain products.

According to China's Renewable Energy Plan released last month, China aims to eventually replace 10 million tons of fossil fuel with biomass, and produce 10 million tons of non-grain ethanol fuel annually (previous post).

As the third-largest ethanol fuel producer and consumer after the United States and Brazil, China's annual ethanol fuel output is currently around 1.02 million tons, of which 800,000 tons are processed from corn. Only four enterprises in the country are approved by the government to use grains to process ethanol.

China will focus on the construction of several sweet sorghum-based ethanol projects in Shandong Province and other northeastern areas, as well as constructing a number of sweet potato-based projects in southern China by 2010.

The country plans to have biofuel account for 15 percent of the country's total transportation fuel consumption by 2020.

References:
Interfax: China to subsidize biofuel feedstock producers - October 25, 2007.

Reuters: China rations diesel as record oil hits supplies - October 26, 2007.

Biopact: China unveils $265 billion renewable energy plan, aims for 15% renewables by 2020 - September 06, 2007


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