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President Bush calls for International Clean Technology Fund, avoids ethanol, biodiesel by name in State of the Union Address

January 29, 2008

In Washington, President George Bush delivered the annual State of the Union address, but for the first time since 2004 did not mention ethanol or biodiesel by name. President Bush called for an international clean energy fund, for the inclusion of China and India in a new emissions treaty, and continued investment in renewable fuels.

On energy, he said:

“Let us fund new technologies that can generate coal power while capturing carbon emissions. Let us increase the use of renewable power and emissions-free nuclear power.

“Let us continue investing in advanced battery technology and renewable fuels to power the cars and trucks of the future.

“Let us create a new international clean technology fund, which will help developing nations like India and China make greater use of clean energy sources.

“And let us complete an international agreement that has the potential to slow, stop and eventually reverse the growth of greenhouse gases. This agreement will be effective only if it includes commitments by every major economy and gives none a free ride.”

Greentech Media said that venture capital (VC) invested $750 million in biofuels feedstocks and technologies in 2007 led by the $70 million investment in Amyris synthetic biofuels. Overall, VC investment in renewable energy increased by 50 percent to $3.4 billion.

The total investment represented a significant acceleration in the 2nd half of the year. The Motley Fool reported that cleantech investment by venture capital increased to $1.1 billion in the first half of 2007, up 35% from 2006.

A report by the National Venture Capital Association said that California, Massachusetts, Texas and Washington state have received the most clean tech venture capital funds.

Written by Jim Lane · Filed Under Policy | Leave a Comment 

China’s largest state oil company to invest $5 billion in Indonesia for palm, jatropha cultivation and biodiesel production

January 29, 2008

In China, the country’s largest state oil company, Sinopec, said it will invest $5 billion in biofuel plants and crop development in Indonesia. The company will invest in jatropha and palm plantations and biodiesel plants in the country’s Papua and East Kalimantan provinces. The project is slated to begin later this year.

China continues to move aggressively to increase its biodiesel capacity, changing its biodiesel production target to 200,000 tons by 2010 and two million tons by 2020.

The managing director of Nantong Biolux Bioenergy Feed told the Reuters Global Agriculture and Biofuel Summit that Biolux plans to build an 85 Mgy biodiesel facility in Nantong, and that it would be the largest in China. Operations at the facility will commence in 2009. Projected project cost is $118.5 million. Also, General Biodiesel announced recently that it will construct biodiesel plants in Beijing, Shanghai, Guangzhou, and Wenzhou in a $100 million direct investment.
China also recently announced that jatropha cultivation will be expanded from 66,000 acres to 660,000 acres. The expansion is planned for Yunnan, Sichuan and Guizhou provinces, which have the most suitable climate for jatropha cultivation. The expansion takes place under the auspices of China’s Green Poverty in Reduction program which was launched in 2006. The $8.5 billion project is a joint venture between the United Nations Development Programme (UNDP), China’s Ministry of Science and Technology and the Ministry of Commerce. The project aims to develop biofuels and other eco-friendly projects in China’s poorer western provinces.

Written by Jim Lane · Filed Under International, Producer News | Leave a Comment 

Chesapeake Biodiesel proposes 30 Mgy soy biodiesel plant in Maryland

January 29, 2008

In Maryland, Chesapeake Biodiesel have proposed a 30 Mgy soybean oil biodiesel plant near Hagerstown, which will also produce approximately 100 million pounds of soybean meal. The company is investigating three potential sites, with a goal of opening by fall 2009.

Maryland has been increasingly aggressive in its biofuels policy. The state government unveiled a plan earlier this year to increase purchases of hybrid and flex-fuel vehicles. Under the plan, 40% of state vehicle purchases will be flexfuel cars and trucks that run on biofuels, and to increase hybrids from 30 to 100 vehicles. The state has a 9100 vehicle fleet.

Hybrids were given a smaller purchasing target due to the high cost of the vehicles. The Maryland study on hybrid conversion projected that gasoline would have to reach $5.60 per gallon before hybrids were economically viable. Hybrids reach break-even at 200,000 miles, but Maryland state vehicles average 100,000 miles before they are replaced.

However, a panel of Maryland experts recently concluded that current incentives to produce biofuels are not sufficiently attractive, and recommended an additional $4 million be earmarked for biofuels promotion and a faster conversion for the state vehicle fleet.
On the distribution side, Cato Gas & Oil has agreed with Greenlight Biofuels to distribute biodiesel produced at Greenlight’s Princess Park facility. Cato has invested $5 million in a new biofuel terminal.

Last year, Smiling Earth Biodiesel proposed a 320 Mgy plant for the Chesapeake Bay area, but the company has not produced financing for the project, which has idled.
Assuming usage of 12 gallons per week per vehicle, the commitment will increase biofuel blend demand by 2.2 million gallons.

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Indian biodiesel policy imminent; B5 mandate, 1.3 billion gallon market expected as ministers convene

January 29, 2008

In India, Agriculture Minister Sharad Pawar will convene a Group of Ministers meeting aimed at making a decision on India’s biodiesel policy. Observers expect that a Biodiesel Board will be established to coordinate policy and provide stability for the market. In addition, the meeting is expected to produce a target of as much as 1.3 billion gallons of biodiesel per year. The Biodiesel Association of India has proposed a B5 mandate, a price reduction from the current $2.54 level, and a 30 percent subsidy on jatropha cultivation.

Until now, although India has been a leader in jatropha-based research, most Indian biofuels activity has been on the ethanol side, although D1 Williamson Magor Biofuels announced that it would invest $89 million in jatropha plantations and a biodiesel plant, with an eventual ambition of a 55,000 hectare jatropha plantation in eastern India.

In part, the culprit for limited biodiesel activity is high prices. Late last year, a 100-bus trial of B20 in Pune was canceled after the lowest bid for B20 was $4.12 per gallon, compared to $3.36 per gallon for diesel.

Written by Jim Lane · Filed Under International, Policy | Leave a Comment 

Biofuels Digest Index jumps 2.90 percent to 122.97 as agribusiness, ethanol both on the rise

January 29, 2008

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, rose 2.90 percent yesterday as diversified agribusiness and ethanol stocks all performed strongly at week’s open.

For the day, sector giant Archer Daniels Midland (ADM) rose 2.83 percent to $43.30, while all ethanol stocks rose, paced by US BioEnergy (USBE) which closed at $8.07, up 5.63 percent.

Among small caps, Xethanol (XNL) rose 9.09 percent to $0.72, while GreenShift (GSHF.OB) tumbled 9.89 percent to $0.0082. Overall, advances led declines by 3 to 1.

Written by Jim Lane · Filed Under Biofuels Digest Index (BDI), Stock & Financial Outlook | Leave a Comment 

Brazil’s sugar producers say that bagasse could supply up to 15 percent of Brazilian electric needs

January 29, 2008

In Brazil, the president of the sugar producers industry association, UNICA, said that bagasse could supply up 11.5 terawatts, or up to 15 percent of Brazil’s electricity by 2015. Bagasse is the waste biomass left over from sugar extraction. Today, the sugar industry supplies 1.6 terawatts, or about 2 percent of the country’s electricity needs. Marcos Jank said that burning more bagasse to generate electricity would complement the country’s hydroelectric projects because sugar cane harvests occur during the dry season, when hydro plants produce less power owing to reduced water levels.

Brazilian conglomerates such as Odebrecht are increasingly focused on the benefits of investment in co-generation projects. Obebrecht will invest $581 million, via its ETH Bioenergia subsidiary, in three ethanol plants in Mato Grosso do Sul state. The plants will have a combined capacity of 15 million tons of sugarcane. The plants will manufacture sugarcane, ethanol and will produce energy from sugarcane bagasse.

Two plants in Nova Alvorada do Sul will be ready for the 2009 and 2010 harvest seasons, while a third plant in Nova Andradina will be operational by 2011. This investment brings Odebrecht’s holding to eight plants in Brazil.

Earlier this month in Angola, Odebrecht agreed with Angola-based Sonangol and Damer to invest US$200 million in sugar ethanol and electricity projects in Malanje province. The Biocom joint venture will produce two million tons of cane, producing 160,000 tons of sugar, 50,000 cubic meters of ethanol and 140 megawatts of electricity per year.

Written by Jim Lane · Filed Under International, Producer News | Leave a Comment 

Biodiesel documentary “Fields of Fuel” receives Audience Award for Best Documentary at Sundance Film Festival

January 29, 2008

In Utah, “Fields of Fuel”, Josh Ticknell’s documentary about biodiesel and America’s need for fuel independence received the Audience Award for Best Documentary Film at the Sundance Film Festival. “May we work together to create a green and sustainable future,” Ticknell said in accepting his award.

The Sundance Film festival, which screened “Fields of Fuel”, was also host to a demonstration of algae-based biodiesel from Solazyme. The company had a demonstration car powered by its trademarked brand Soladiesel. The company is producing small batches of algae-based biodiesel and announced an feedstock testing and development agreement with Chevron Technology Ventures.

Algae-based biodiesel has yield of up to 10,000 gallons per acre in laboratory testing, but industrial process to replicate these results economically and on the large-scale are now just underway nationwide.

Written by Jim Lane · Filed Under Consumers & Fleets | Leave a Comment 

Blue Sun to supply B20 to 45-truck Corporate Express Fleet

January 29, 2008

In Colorado, Blue Sun will supply its Fusion 20 biodiesel to the 45-truck Corporate Express fleet in Colorado and Kansas. The company will use B20 in trucks built after 2004, and expects to record higher mileage as well as environmental benefits.

The conversion adds to a lengthy list of recent conversions to B5 and B20.

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Wyoming cellulosic ethanol plant to double capacity

January 29, 2008

In Wyoming, the KL Process Design cellulosic ethanol plant in Upton, near the Black Hills National Forest, will double its production to 2.5 Mgy of ethanol produced from waste wood chips. The company commenced production last March with an initial capacity of 1.5 Mgy, using waste wood from the forest floor as well as pine tress killed by insect infestations.

Wyoming, owing to its cold, dry climate and small population, has been outside of the mainstream of biofuels development, but not without activity. Late last year, Big Horn Basin Ethanol has closed $45 million dollars in construction financing for an ethanol plant in Greybull.

Under the agreement, which was originally announced last month, BHBE will lease and operate the plant, which will be owned by Bronte Renewable of Ontario. The 25 Mgy plant is scheduled to open in September 2009.

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Vision Fuels receives extension until June 1 from Des Moines for financing $210 million corn ethanol plant

January 29, 2008

In Iowa, the city of Des Moines has given Vision Fuels Des Moines an extension until June 1st to provide a financing commitment for their proposed $210 million corn ethanol plant, situated on 164 acres of city-owned land. The company has provided nearly $1 million in non-refundable deposits for the natural gas-powered plant that was first proposed in 2006.

Vision Fuels Des Moines originally asked for an extension to complete $210 million in project financing for their 100 Mgy facility last September. The owners cited difficult financing conditions which have led projects such as Akron Riverview Corn Processors to suspend their financing efforts for the 100 Mgy Akron, IA project.

Capital sources for ethanol projects have been increasingly difficult to find over the past 12 months, with many projects in the US on hold.

Among the more prominent plants in financing trouble, Central Illinois Energy put its 37 Mgy Canton, OH ethanol plant up for sale after failing to secure $30 million in additional funding. Credit Suisse, the lead bank among the lenders, reportedly forced the sale. The plant was originally projected to cost $40 million, but has spent nearly $130 million on the project.

Among other projects, Aventine Renewable Energy canceled a plant expansion in Pekin, and Alternative Energy is facing financing delays for its proposed plants in Kankakee and Greenville. The Pekin project would have added 113 Mgy in production capacity. In all, Aventine suspended work on five projects with 565 Mgy in planned capacity.

Written by Jim Lane · Filed Under Producer News | Leave a Comment 

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