Today in Biofuels: Oil cos accused of rigging US markets; 20 percent export duty on crude palm oil; McCain’s record

March 28, 2008

Top Story:

The Consumer Federation of America accused the US oil industry of conspiring to create tight markets for oil, with resulting increases in prices. The report said that widespread gasoline availability, falling demand and increasing use of ethanol have not had a price impact because of oil company manipulation of refinery outputs. The Federation said that the “The Federal Trade Commission and others have documented oil industry efforts to consolidate the market and cut excess capacity, which keeps gasoline supplies tight and prices high,” calling the domestic refiners an “oligopoly” that mirrored the oil cartel.

Producer News:

In North Carolina, only two biofuel projects are still moving forward after a series of cancellations due to financing issues have stymied North Carolina’s drive for biofuels leadership. The Clean Burn Fuels 100 Mgy corn ethanol plant and a small ethanol plant in Robeson County by Solv-It Technologies are still in progress, while Xethanol, Kreido Biofuels, East Coast Ethanol, and Agri-Ethanol all cancelled projects due to inability to raise funds. Last August, Virgina Atlantic sued Agri-Ethanol over a $209,000 loan.

In California, Leaf Clean Energy has invested $20 million in Greenline Industries, to facilitate expansion of Greenline’s R&D effort. Leaf Clean, a publicly-traded investment company, said that it expect to complete its investment phase in December 2008 and is shortlisting another 23 companies for potential investments.

International News:

In Brazil, ten ethanol and sugar plants will become operational by 2010 in the state of ParanÃ¡, said the Association of Alcohol and Sugar Producers of the State of ParanÃ¡ (Alcopar). One is expected to launch in 2008, and the remainder in 2010. Capacity was not disclosed. 23 plants are currently active in ParanÃ¡.

In Ethiopia, Global Energy completed phase one of its castor crop experiment in Sodo, with seeding commencing next month. Harvest is projected to be 12,000 tons of castor oil worth up to $13 million. Castor is being farmed by 25,000 small African landholders on 7500 hectares in Waletia and Gome.

In Indonesia, the central government imposed a 20 percent tariff on export of crude palm oil, in an attempt to reduce prices in local Indonesia markets. The taxes will be imposed as of April 1, with the base price of CPO increasing to $1196 per tonne. The country has been beset by palm oil inflation caused by rising prices of the commodity.

In the Philippines, the state government of Palawan has allocated 30,000 hectares of land for the growing of jatropha.Â Idle land will be used under the agreement signed by PNOC Alternative Fuels.

Research News:

A cattle superfeed was proposed in the pages of Farm and Ranch Guide. Advocates are saying that superfeeds will allow farmers to competeÂ better in international markets. One of the proposed feedstocks are dry distillers grains from ethanol production, but limited to 30 percent o the overall product.

Policy and Policymakers:

John McCain’s environmental record and policies are profiled in an investors.com article. The article focuses on his conversion to environmentalism after the 2000 elections, and his sponsorship of cap-and-trade legislation in 2003, 2005 and 2007 with Senator Joe Lieberman. The current bill would limit emissions among commercial & industrial users to 2004 levels by 2012 and moved down steadily until 2050. McCain favors an auction of emission certificates in his cap-and-trade proposal.

The United Nations Economic and Social Survey of Asia and the Pacific 2008 (UNESCAP) said that “Higher food prices will most hurt the urban poor and the rural poor who are net food consumers, for whom food is usually the biggest expenditure item. ” But the report said that biofuels can produce income benefits for farmers, jobs, and hold down oil prices. Of the worldâ€™s 50 poorest countries, 38 are net importers of petroleum and 25 import all their petroleum, according to the report.Â The report also highlights the potential of second-generation biofuels including cellulosic ethanol, jatropha-based biodiesel.

Consumer and Fleet News:

In Puerto Rico, the EPA hasÂ awarded $215,000 to the Polytechnic University of Puerto Rico to convert 61 school buses in the Bayamon school region to lower emissions.

Financial News:

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, fell 1.05 percent to close at 116.30 as diversifiedÂ agribusiness continued to weaken.Â For the day, Archer Daniels Midland (ADM) fell 1.04 percent to close at $41.94, while The Andersons (ANDE) lost 3.55 percent to finish at 42.67. Among ethanol stocks, Aventine Renewable Energy (AVR) plummetedÂ 7.60 percent to close at $4.86. Along small caps, Green Energy Resources fell a whopping 20.00 percent to close atÂ $0.12. Overall, declines led advances 2 to 1.

Indonesia slaps 20 percent export duty on crude palm oil

Malaysian crude palm oil reaches record $956 per tonne; crude oil surpasses $100 per barrel

Malaysian crude palm oil rose to an all-time high of $956 per tonne, tracking rises in oil and soybean prices. Oil reached a record $100 per barrel today....

Malaysian crude palm oil prices soar to record $876 per ton; tracking petroleum oil increase

In Malaysia, crude palm oil futures reached a record $876 per ton, tracking the increase in oil prices to more than $96 per barrel. The Malaysian government delayed implementation of the Malaysian ...

Consumer Federation accuses Big Oil of rigging oil markets with refining caps

The Consumer Federation of America accused the US oil industry of conspiring to create tight markets for oil, with resulting increases in prices. The report said that widespread gasoline availability,...

Crude palm oil prices hit record close of $1,071 per tonne as Indonesia imposes export tax to protect domestic food prices

In Malaysia, crude palm oil (CPO) hit a new record closing price of $1,071 per tonne after Indonesia announced increased export taxes in a move to reduce the pressure on domestic food prices. Indonesi...

Indonesian Biofuels Committee proposes tax incentive structure to respond to rising crude palm oil prices

In Indonesia, the National Biofuel Development Committee proposed a cut in the local VAT for biofuels in order to stimulate production in the face of the rising cost of palm oil. The Committee propose...

Written by Jim Lane · Filed Under The Daily Biofuel Summary