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Indiana Soybean Alliance announces inventive program for fuel terminal biodiesel conversion

The Indiana Soybean Alliance has announced an incentive program for fuel terminals to convert to blending soy biodiesel.

With only four of the state’s fuel terminals currently offering biodiesel, ISA’s Biofuels Director Mark Walters said Indiana’s soybean farmers want to help terminals convert their current facilities so they are able to blend soy biodiesel. The program ends September 30th.

“Basically, we want to invest soybean checkoff funds to help a terminal convert their tanks and pumps to be able to blend biodiesel and sell it,” said Walters. “If a terminal is willing to make a commitment to sell biodiesel for a certain period of time, we want to help make that happen.”

In addition to helping terminals convert their equipment for biodiesel, Walters said ISA will also help market the biodiesel that is produced. “We have an ongoing relationship with fuel retailers in the state that are looking for new sources of biodiesel,” explained Walters.

Indiana is home to the world’s largest integrated soybean-based biodiesel plant, which opened earlier this month in Claypool, Ind. Built and operated by Louis Dreyfus Commodities, the soybean processing and biofuels plant catapulted Indiana to being one of the premier states in the country in terms of biodiesel production.

Alabama’s Jackson County cancels biodiesel trial, not “cost effective”

A small three-truck trial of biodiesel by Jackson County in Alabama was called off after three months, after the head of the waste removal department said that the records showed that biodiesel was not cost-effective. Two trucks tested showed a 25% decrease in mileage, while the third showed a 3% mileage increase.

US ethanol imports rise 24% in June

June US ethanol import figures were released by the Federal Energy Information Administration. In June, imports increased by 24% over May to 820,000 barrels, equivalent to 37 million gallons.

Brazil was the largest exporter to the US with 488,000 barrels, up 87% over May. Jamaica exported 192,000, up 71%. El Salvador was up 33% to 73,000 barrels, while Canada was steady at 1,000 barrels and Trinidad was down 31% to 66,000 barrels.

Imports rose despite a drop in ethanol prices in the US, and despite an admission from Brazilian state oil company Petrobras that they missed their export targets by 88%. All shipments save one headed for east coast US ports.

Importers included Nobel Americas, Shell Oil, ConocoPhillips, Refiners Valero Enbergy, Citgo, CHS, Vitol Holdings, ED&F Man Holdings and Northville Industries.

Dream Fuels partners with Lee County for Florida jatropha demonstration

Dream Fuels donated 1,500 jatropha seedlings  to Lee County for a 1-acre demonstration farm. The county plans to use jatropha and restaurant grease to produce biodiesel fuel for the county fleet.

Roy Beckford, an employee of the Institute of Food and Agricultural Sciences, has been promoting jatropha to Florida farmers for several years, and has been instrumental in bringing jatropha to Lee Seeing the potential for biofuels, he had suggested it for consideration for land unsuitable for other crops and as a replacement for invasive species such as Brazilian pepper and Melaleuca.

Propel Biofuels secures first round funding of $4.75 million, moves ahead on biodiesel installations at 20 service stations

Propel Biofuels announced that they have completed a $4.75 million first round of capital from @Ventures and Nth Power. The company announced a goal in April of installing its biodiesel fuel equipment at 20 stations in Washington, Oregon and California. Currently, the company has eight sites in Washington state in the permitting stage. Initial funding for Propel had come from Imperium Renewables in the form of a loan.

Akron Riverview Corn Processors postpones Iowa ethanol plant, citing economic conditions

Akron Riverview Corn Processors has postponed development of an ethanol plant in Iowa, citing unfavorable economic. Plymouth County officials said that they hoped the postponement is short-lived, and were philosophical about the $100,000 expended by the county in planning expenses, of which only $75,000 will be recovered from Akron River.

Bank of America analyst Eric Brown released a report yesterday showing that ethanol profitability had shrunk more than 6 percent in the past two weeks, owing to rises in corn prices and drops in ethanol prices.

Brazil’s Petrobras to miss ethanol export targets by 88% for 2007

Petrobras, the Brazilian state oil company, admitted yeterday that it expect to miss its 1 billion gallon export target by 88%, exporting 120 million gallons on the spot market to the US, Japan among other nations. Major planned exports to Nigeria and Venezuela did not happen, in the case of Nigeria because of the lack of infrastructure for ethanol storage. The US imposes a 50-cent tariff on Brazilian ethanol but there has been increased speculation that the US Government will reconsider the tariff as part of its hemispheric re-alignment of biofuels trade.

Stock and Financial Outlook for August 30

Biofuels stocks will be looking to build on a strong market yesterday, as the impact of rising oil prices and the potential of an interest rate cut from the Federal Reserve are on the minds of investors.
Among Biofuels Direct Indexâ„¢ (BDI) stocks, Green Plains Renewable Energy (GPRE) opened a new plant near Shenandoah that will produce 50 MGY of corn ethanol and 150,000 tons of distillers grains per year.

US corn ethanol distributors will be looking for positive news following the announcement that Brazil’s oil giant Petrobras is seeking to invest in ethanol-only pipelines in Brazil that will reduce the cost of transportation of ethanol to the country’s Atlantic ports. Yesterday, the Energy Information Administration reported that June ethanol imports rose 24% over May to 820,000 barrels, with Brazil the leading exporter at 488,000 barrels.

Among the larger cap stocks, investors will weight the impact on Archer-Daniels-Midland (ADM) of increased canola oil production announced yesterday by Cargill. A-D-M and Bunge (BG.N) have announced similar production capacity increases.

The broader markets were up strongly yesterday, with the Dow Jones industrials up 1.9%, or 247.44 points, to 13,289.29, while the S&P 500 was up 2.19% and the Nasdaq was up 2.5% to 2,563.16.

The markets are likely to be dominated today by continued speculation about potential rate cuts by the federal Reserve, while a gloomy advance report that Iraq’s government has missed 13 of 18 benchmarks set for the September 15th deadline by the US may increase uncertainty regarding the US Goverment’s future plans for stabilizing Iraq.

The Biofuels Digest Indexâ„¢ (BDI), a basket of 21 major public biofuel stocks, rose 2.28% percent yesterday to 100.33 as a surge in oil prices and a timely intervention by the Federal Reserve brightened the outlook for shareholders.

The Daily Biofuels Summary for August 30

Top Story: In Brazil, state oil company Petrobras is seeing a minority stake in the country’s first ethanol only pipeline that will reduce the cost of transport between the interior and the Atlantic ports. Petrobras currently has capacity to transport 13 million gallons per month and will increase capacity to 65 million gallons per month. Its goal is to increase exports to 1.23 billion gallons by 2012, and 3.12 billion gallons by 2020. For 2007, Petrobras missed its export targets by 82%, citing unplanned difficulties in gaining contracts with Venezuela and Nigeria.

Producer News: In Iowa, Akron Riverview Corn Processors has postponed development of an ethanol plant, citing unfavorable economic conditions….Also in Iowa, Green Plains Renewable Energy (GPRE) opened a new plant near Shenandoah that will produce 50 MGY of corn ethanol and 150,000 tons of distillers grains per year. This brings Iowa’s total to 29 ethanol plants in operation producing nearly 2 billion gallons. 18 more plants are in planning or construction that will produce another 1.4 billion gallons….In Washington state, Propel Biofuels completed a $4.75 million first round of capital from @Ventures and Nth Power. The company announced a goal in April of installing its biodiesel fuel equipment at 20 stations in Washington, Oregon and California. Currently, the company has eight sites in Washington state in the permitting stage….In Florida, Dream Fuels donated 1,500 Jatropha seedlings to Lee County for a 1-acre demonstration farm. The county plans to use jatropha and restaurant grease to produce biodiesel fuel for the county fleet.

International News: In Norway, Statoil ASA announced the acquisition of a 42.5 pct stake in UAB Mestilla, which is constructing a biodiesel plant in Lithuania….In Malaysia, the Federal Land Development Authority (Felda) acquired US-based Twin Rivers Technologies for $68.9 million. Felda intends the acquisition as a platform for increasing market share in North America….In Israel, Seambiotic has launched a demonstration algae farm, which they hope will lead to a large-scale biodiesel plant in 2008….The Mozambique oil producer Petromoc is raising $408 million for a new project using 45,000 hectares of jatropha to produce 59 million gallons of biodiesel. Petromoc is currently conducting a pilot biodiesel project using coconut oil as a feedstock.

Policies & Policymakers: California has imposed an E10 mandate, up from the current E5.7 requirement, that will increase the state’s ethanol demand from 850 MGY to 1.6 BGY. The regulation, which goes in effect Dec 31, 2009, will make California the fifth state to mandate E10 ethanol blends.

Research News: June US ethanol import figures were released by the Federal Energy Information Administration. In June, imports increased by 24% over May to 820,000 barrels. Brazil was the largest exporter to the US with 488,000 barrels, up 87% over May. Jamaica exported 192,000, up 71%. El Salvador was up 33% to 73,000 barrels, while Canada was steady at 1,000 barrels and Trinidad was down 31% to 66,000 barrels.

Consumer and Fleet News: In New Mexico, the Waste Isolation Pilot Plant and New Mexico Transportation have commenced a pilot project to test a B20 biodiesel blend….In Alabama, the Jackson County Commission discontinued its biodiesel trial, concluding that a switch to biodiesel was not cost effective. The test was conducted with three trash collection trucks, which recorded a net decrease in mileage during the trial. B5 to B50 blends were used during the trial….The Indiana Soybean Alliance has announced an incentive program for fuel terminals to convert to blending soy

Financial News: The Biofuels Digest Indexâ„¢ (BDI), a basket of 21 major public biofuel stocks, rose 2.28% percent yesterday to 100.33 as a surge in oil prices and a timely intervention by the Federal Reserve brightened the outlook for shareholders.

Biofuels Digest Indexâ„¢ (BDI) up 2.26 points as Fed hints at intervention, oil rises

The Biofuels Digest Indexâ„¢ (BDI), a basket of 21 major public biofuel stocks, rose 2.28% percent today to 100.33 as a surge in oil prices and a timely intervention by the Federal Reserve brightened the outlook for shareholders.

In a letter from Federal Reserve Chairman Ben Bernanke to Senator Charles Schumer of New York that was published today, Bernanke said that “the Federal Open Market Committee has stated that it is monitoring the situation and is prepared to act as needed to mitigate the adverse effects on the economy arising from the disruptions in financial markets.” Publication of the letter ignited investor speculation of potential interest-rate cuts.

The energy stocks moved sharply higher as oil prices jumped to $73.53 a barrel, and a corresponding lift was seen across the board with biofuel stocks. Among the small cap stocks, Better Biodiesel (BBDS.OB) was up 13% to $1.70 while Earth Biofuels (EBOF.OB) rose 8.3% to $0.065.

Among the larger cap stocks, Andersons (ANDE) was up 4.32% to $47.09 and US BioEnergy (USBE) was up $1.7% to $10.34 after releasing the final pricing of its acquisition of Millenium Ethanol. Sector giant Archer-Daniels-Midland was up 2.6% to $32.91.

The broader markets were up strongly at the bell, with the Dow Jones industrials up 1.9%, or 247.44 points, to 13,289.29, while the S&P 500 was up 2.19% and the Nasdaq was up 2.5% to 2,563.16. The Nasdaq recorded its best day since June 2006.

Major news from Biofuels Digest Indexâ„¢ stocks included the launch of a Shenandoah plant by Green Plains Renewable Energy (GPRE), and an announcement by VeraSun (VSE) of new distribution in Ohio at 20 Kroger’s outlets.

The Associated Press reported that in his biweekly biofuels report, Banc of America Securities analyst Eric K. Brown warned of eroding ethanol margins and maintained a “Sell” rating on Aventine (AVR), Pacific Ethanol (PEIX) and VeraSun. Brown noted that spot prices for ethanol fell 3.8% between August 12 and August 27th, and that ethanol futures for September were down 6 percent in the same period. He also noted that corn prices rose two percent, resulting in ethanol margins falling from $1.11 to $1.04 per gallon.

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