Today in Biofuels: Imperium Renewables cancels $345 million IPO; two ethanol fires; South Africa may flip-flop on use of corn as feedstock; Petrobras sets 1.2 billion gallon ethanol export target
Top Story:
Imperium Renewables has canceled its planned IPO due to “unfavorable market conditions.” The company had planned a $345 million IPO in May that would have financed the construction of three new biodiesel plants, including a $90 million project with Hawaiian Electric.
Producer News:
In Ohio, an explosion occurred at the American AG Fuels plant in Defiance. The cause of the explosion is not known, but it happened in the loading area of the plant. Three workers were injured, including one who was airlifted to a Toledo-area burn center. The blast broke windows of local residents, but no other damages were reported.
In South Dakota, a flash fire erupted at the Prairie Ethanol plant near Loomis. The fire started during the filling of a train car with ethanol. One worker received treatment for burns.
International News:
In Brazil, Petrobras has set an export target of 1.2 billion gallons for 2012, including both first- and second-generation ethanol. The company linked this export target to its plans for an ethanol pipeline connecting both Goias and Minas Gerais states with Sao Paulo state.
In South Africa, the central government has indicated that it may allow the use of surplus corn for ethanol production, following a meeting between industry leaders and the Agriculture minister, Lulu Xingwana. Average corn demand in South Africa is 9 million tons and forecasters have projected a bumper crop, with ethanol demand expected to act as a price support.
In the Philippines, tests by the Technological University of the Philippines and Chemrez Technologies have shown that jatropha biodiesel from PNOC Alternative Fuels meets both US and European standards. Tests have focused the pool of jatropha hybrid candidates down to six candidates.
In Malaysia, the government of Perak State announced a MOU with Earth Biofuel (Asia) to develop a 200 acre Biofuel Integrated Environmental Park. The park will include a wastewater treatment plant, methane recovery landfill, training center and biodiesel plant.
Research News:
The EPA said in a new report that ethanol plants that use natural gas CHP (combined heat and power) systems can create net negative carbon emissions.
The March contract for corn rose to a 12-year high of $4.62 per bushel, while soybean jumped to $12.48 per bushel. The rises were attributed to the rise in oil prices to over $100 per barrel, blamed in turn on disruptions in Nigeria due to violence.
A Swiss government study analyzed in Science magazine showed that corn, soy, and oil palm biofuels have greater negative environmental impacts than fossil fuels. The authors of the report added that the use of waste biomass or switchgrass could provide overall environmental benefits.
Policy and Policymakers:
In Missouri, Gov. Matt Blunt announced a series of tax incentive proposals designed to promote biofuels. The governor proposed $2 million in tax incentives for gas station owners converting to E85, and tax credits for consumers who buy E85 or a hybrid vehicle.
Consumer and Fleet News:
The EPA warns that pumping E20 or E30 into a non flex-fuel vehicle is a violation of the Clean Air Act and could result in fines for retailers and consumers. The Kansas Department of Agriculture has established a pilot program to add E20 and E30 at selected stations. The EPA said it is concerned about higher emissions resulting from using ethanol to power a gasoline engine.
Financial News:
The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, gained 1.23 percent today to close at 132.88 as diversified agribusiness and mid cap ethanol stocks both advanced. Among larger caps, The Andersons (ANDE) rose 3.06 percent to $46.10, while Pacific Ethanol leaped 8.62 percent to $8.82 to lead the mid caps. Among small caps, Better Biodiesel jumped 100 percent to $1.40 in the wake of a merger agreement with GeoAlgae Technology, while Xethanol (XNL) rose 20.13 percent to close at $0.82 after extending a research agreement with the National Renewable Energy Laboratory.
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