Today in Biofuels: Vinod Khosla slams environmentalists; Brazil cracks down on deforestation; Dole converts to B20

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Vinod Khosla published three articles on Gristmill under the title “Pragmatists vs. Environmentalists”, in which the noted investor stated his objections to plug-in hybrids and the rational for his continued support of cellulosic ethanol. Khosla said that the barriers to improved battery performance and electric grid infrastructure improvements necessary for plug-ins to succeed as a technology were greater than those facing cellulosic ethanol. “I consider replacing coal-based electricity plants (50-year typical life) a much longer, tougher slog than replacing oil with biofuels (15-year car life),” he said. ” The investor said that marketing campaigns aimed at “greenwashing” were making hybrids popular, although even corn ethanol reduces emissions, mile for mile, as much as hybrids.

Producer News:

In Ohio, investors in the proposed 60 Mgy GreenLion Bio-Fuels plant in Streator are moving to recover a portion of their money as insiders indicate that the delay may become a cancellation due to unfavorable ethanol economics. Investors have been offered 72 cents on the dollar; the plant’s construction efforts were halted last summer amidst market uncertainties.

In North Carolina, a Superior Court judge ruled that an Iredell County farmer may proceed with plans to produce 500,000 gallons of biodiesel per year from soybeans, canola and sunflowers. Iredell Neighbors for Rural Life had sued over environmental, traffic and safety issues but the court’s said that individuals, not the group, had no standing to sue. The venture has been approved for as much to 4 Mgy in capacity to date by Iredell county commissioners.

In Louisiana, Verenium said that it would have the first enzyme-based, commercial-scale cellulosic ethanol plant in the US operating by March 31st. The 30 Mgy commercial-scale plant will use sugar cane residue, called bagasse, that is usually burned at electric power plants. The Cajun Sugar Cooperative sugar mill in New Iberia donated the first 10 tons of bagasse, and Verenium will become a customer of local sugar mills for future shipments. Among cellulosic ethanol plants that received Department of Energy grants last year for commercial-scale plant construction, only the gasification-based plant in Georgia constructed by Range Fuels is said to be closer to an opening date.

International News:

In Brazil, the federal government announced a crackdown on illegal deforestation in the Amazonian rainforest. Biofuels producers have been accused of causing deforestation, however the authorities are targeting soy farmers, cattle ranchers and illegal timber operators in 36 pockets where increased deforestation has occurred. An emergency meeting of the Brazilian cabinet had been been called by President Luiz Inácio Lula da Silva after a 50 percent jump in deforestation rates, following a steady three-year decline.

In Japan, the central government has outlined a five-year plant to invest in technologies to convert wood waste into ethanol. The Ministry of Agriculture said that it had earmarked $11.2 million in next year’s budget for research.

In Thailand, the government has established a new, national biofuels organization, which will include members of the government, industry, and private citizens. The Energy Ministry has begin coordination talks with the Commerce and Agriculture ministries, as well as representatives of universities, farmers, car makers and oil retailers. A 21-member panel will supervise policy while a 13-member panel will supervise management of biofuels development from field to wheels. $3 million in palm oil taxes will be used to support the committees.

The Brazilian Sugarcane Industry Association (UNICA) issued a stinging response to “Deadly Brew,” a documentary on the Brazilian sugar cane industry and ethanol which debuted on Bloomberg Television last week. UNICA said that the producers did not substantiate their contention that worker conditions were deteriorating, did not report that sugar cane workers are paid more than twice the minimum wage, that cane cutters do not have minimum daily quotas, and used outdated injury and death reports without reporting falling accident rates.

Research News:

In the Philippines, researchers have discovered a rumen fluid in carabao, a domesticated species of water buffalo, that can help convert up to 30 gallons of ethanol per ton of lignocellulose. Researchers had noted that the carabao could survive on low quality rice stubble and straw, which indicated that the animal’s had microorganisms capable of converting lignocellulose into volatile fatty acids which can be fermented into sugars.

In Minnesota, the state Environmental Quality Board will investigate water usage by ethanol plants after a plant in Granite falls, which had been allocated sufficient groundwater for its proposed needs, began pumping water from the Minnesota River. With 16 new ethanol plants in the proposal or construction stage, the state is facing a doubling of water demand from ethanol producers. The industry is consuming 2 billion gallons of groundwater per year. The Board plans to look at whether ethanol producers have understated their needs, or ground water reserves are less than projected.

Policy and Policymakers:

Members of the European Parliament in Brussels approved the emissions reduction plan proposed by the European Commission. The package of proposals included proposals on emission cuts, renewable sources, carbon capture and revision of the EU Emissions Trading Scheme, with a stated goal of reducing EU greenhouse gas emissions by 20 percent and increasing the share of renewable energies in the energy consumption by 2020 to 20 percent.

Consumer and Fleet News:

In Arizona, Dole Fresh Vegetables has converted its harvesting equipment in B20 biodiesel. The company had been testing B20 since August in both farm equipment and its off-road vehicles.

Financial News:

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, dipped 0.28 percent on Friday to 119.31 as weakness in midcap ethanol stocks offset recoveries in the small caps. Among diversified agribusiness, The Andersons (ANDE) rose 1.35 percent to close at $44.36, while in the ethanol mid caps Aventine Renewables (AVR) eked out a 0.10 percent gain to close at $9.79 but US BioEnergy (USBE), down 1.16 percent to $7.74, was more indicative of sector activity. Among small caps, Intrepid Technology and Resources (IESV.OB) rose 12.50 percent to $0.018 while Bluefire Ethanol (BFRE.OB) and Xethanol (XNL), both were up strongly for the day, closing at $3.60 and $0.66 respectively.

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