Today in Biofuels: Brazil to certify sustainable ethanol; 72 percent of small producer biodiesel fails ASTM standards; US trade in renewable fuel credits jumps 2000 percent in Dec
Top Story:
In Brazil, the national government will introduce an environmental certification for sustainable production of ethanol. The move is primarily aimed at exports to the EU, where questions have been raised about the environmental damages from Brazilian biofuels production.
Producer News:
In Iowa, members of the Great Lakes Cooperative approved a merger with Green Plains Renewable Energy by a vote of 718 to 174. The Cooperative, which recorded $146 million in revenues in 2007, specializes in grain, feed and fuel products in Iowa and Minnesota with operations in seven northern Iowa locations. The merger gives Green Plains access to a reliable supply of corn for its biofuel production stream.
In California, BlueFire Ethanol Fuels is ready to break ground by April on its 3.1 Mgy waste-to-ethanol plant near Lancaster. The company is awaiting its air permit before commencing construction, after securing additional financing to supplement a cellulosic ethanol grant from the Department of Energy received last year. The company, which plans to erect a number of waste-to-ethanol plants near landfills, has a 16.6 Mgy plant on the drawing board that would be built near Corona.
In Pennsylvania, Conoy Township said that the application submitted by Lancaster Biofuels is incomplete and the Planning Commission deferred action on the proposed 60 Mgy ethanol plant, noting that it was “disturbed” that some of the requested information was not forthcoming. The $100 million project has been seeking Township approval for nearly a year.
International News:
In Mexico, the national government is close to issuing permits for ethanol produced from beets, yucca and sorghum, according to the energy ministry. Mexico has recently implemented a law supporting the farming of renewable fuel crops; however the country has taken steps to distance its approach from controversial corn and sugar ethanol practices in the United States and Brazil.
In Italy, Mossi & Ghisolf will construct a 66 Mgy ethanol plant in Piedmont, and convert it to cellulosic feedstocks in the long run. Mossi & Ghisolf said the $148 million plant would be operational in 2009, and converted to cellulosic ethanol in a second, $177 million upgrade.
The Canada West Foundation released a report calling on the Canadian federal government and provincial governments to synchronize their programs, jurisdictions and emissions targets. The study pointed out that four Atlantic provinces and two territories have not set greenhouse gas emission targets, while five provinces that have established goals have different targets and dates. In addition, three provinces have established different cap-and-trade systems for trading emission credits.
In Haiti, Haytian Tractor & Equipment has signed an agreement with Sustainable Power Corp to install 20 bio crude reactors and supply power and fuel in Les Cayes and Petit-Groave. Haytian Tractor & Equipment Co. S.A. (“ HayTracâ€), which will own 10 percent of the joint venture, said that it expects to use jatropha produced in Haiti to produce the bio crude, and expects ultimately to expand to include algae as a feedstock.
Research News:
The National Renewable Energy Laboratory says that 72 percent of biodiesel from small production plants failed to meet ASTM standards. Teresa Alleman of NREL said that 16 percent of medium-size suppliers met the ASTM standards including flashpoint and glycerine content, while 94 percent of large producers met D6751 standards. 94 percent of BQ-9000 certified producers passed the ASTM tests, and NREL believed the one sample that failed was due to sample contamination. Overall, the study looked at samples from 56 different producers. In 2006, only 40 percent of B100 studied passed the tests.
Policy and Policymakers:
The National Biodiesel Board said that it would establish a Sustainability Task Force that will seek to develop solutions to questions that have been posed about the environmental benefits of biodiesel. NBB leadership said that they wish to establish consensus among the diverse group of biodiesel supporters on sustainability standards.
The US EPA said that US trade in renewable fuel credits jumped 2000 percent in usage in December. Under the US renewable fuel trading system, biofuels producers generate renewable fuels credits which transfer to the purchasers of the fuel. Refiners and fuel marketers are required to have credits that prove they met their obligations under the Renewable Fuel Standard, but can buy or sell excess credits. The credits, called RINs, trade for 2-3 cents per RIN. Fuel marketers who come up short on RINs and cannot purchase them on the market, can purchase them from the EPA at the greater of 0.25 cents per gallon, or $3.00 less the wholesale price of gasoline, or around seventy cents.
Consumer and Fleet News:
In Washington State, the University of Washington is converting its fleet from B5 to B20 effective this month. The fleet converted to B5 in fall 2006. The University indicated that it plans to ultimately convert to B90.
Financial News:
The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, plunged 4.46 percent yesterday to close at 119.28 after investors continued to punish Archer Daniels Midland (ADM) for missing analyst expectations on its second quarter earnings. For the day, Archer Daniels Midland fell 4.91 percent to close at $42.02, while The Andersons (ANDE) was off 0.86 percent, closing at $45.87. Among mid cap ethanol stocks, Pacific Ethanol (PEIX) rose 3.61 percent to $6.31 in the afterglow of a $24 million DOE grant, while among small caps Intrepid Technology & Resources (IESV.OB) fell 15.79 percent to close at $0.016. Overall, declines led advances 3 to 1.
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