Today in Biofuels: President Bush’s emissions initiative falls flat; algae gets cold weather thumbs up; NY Times corrects anti-biofuels article
Top Story:
US President George W. Bush called for the US to cap greenhouse gas emissions by 2025, while delegates to a Paris climate conference offered tepid encouragement and others outright opposition to the proposal.
“There is no way whatever that we can agree to what the U.S. is proposing,” South African Environmental Affairs Minister Marthinus van Schalkwyk said, while Yvo de Boer, head of the U.N. Climate Secretariat, said “It’s good to have something on the table”. The President did not offer any new policies or legislation in his announcement.
Producer News:
In Iowa, Poet said that it is reconsidering its cellulosic ethanol plant in Emmitsburg, following a decision of the Iowa Power Fund to defer consideration of a request for a $20 million grant. [The decision] “will cause us to step back and take another look at the project. We’ll have to see what happens,” said Poet’s Jim Sturdevant in comments on the decision.
In California, tests on Soladiesel from Solazyme were conducted by the Southwest Research Institute following a request from the U.S. Department of Defence (DoD). The tests concluded that algae-based biodiesel has superior performance under cold weather conditions than biodiesel derived from other feedstocks.
In Iowa, Plymouth Oil announced plans to develop a 25 Mgy corn oil plant adjacent to the Plymouth Energy corn ethanol plant now under construction near Merrill. The corn oil will be supplied to the food market, while defatted corn germ will be supplied to the livestock market. Production is expected to commence by April 2009.
In California, Greenline Industries, which recently received a $20 million capital infusion, has developed a high free fatty acids processor that will permit more yellow grease and waste vegetable oils to be converted into biodiesel.
International News:
In Canada, the premier of Ontario said that his government will not reconsider its ethanol incentive program despite food inflation reports, saying “A whole bunch of circumstances are driving up food prices.” In Ontario’s program, more than $520 million will be spent by 2017 in support of ethanol production after the imposition of a 5 percent ethanol mandate in 2005. The program’s goal is to make Ontario a net exporter of ethanol by 2012.
In the Dominican Republic, the president of Conazucar said that President Leonel Fernandez should greenlight a $148 million sugar cane ethanol and power plant in Boca Chica. The proposed plant in dependent on leases to three sugar mills, which the president initially awarded to Conazucar, but recently re-awarded the project to Central Romana and Grupo Vicini. The proposed plant will produce 16 Mgy of ethanol and 27 MW of electricity.
In Wales, researchers at the Institute of Grassland and Environmental Research said that Welsh ryegrass could supply up to 640 gallons of ethanol per acre and take Britain off fossil fuels within a 10 year period. The IGER research group said that ryegrass can be grown on marginal land unsuitable to food cultivation. is native to Wales, has minimal nitrogen inputs, and can produce up to three crops per year.
World Opinion:
The New York Times corrected its major article on Western biofuel policy: “Because of an editing error, an article on Tuesday about the effect of biofuels on the price of food misidentified the representatives who criticized Western biofuel policy during a meeting in Washington last weekend on global economic issues. Much of the criticism came from representatives of poor countries that have been hit hard by rising food prices. It did not come from the finance ministers or central bankers of seven leading industrial countries.”
In Canada’s National Post: “Another misconception trotted out by the uninitiated is that huge amounts of irrigated water is diverted in the U.S. midwest to grow the corn for ethanol. Facts are 90% of the corn feedstock is NOT irrigated and, even if more was, it makes no difference because the water is recycled naturally or returned by the ethanol plants.”
Brooke Coleman, executive director of the New Fuel Alliance, wrote: “Several studies have shown that record petroleum prices, which permeate the entire food system for all types of food, have three times the food price impact as biofuels…The food and fuel debate to date has been too simplistic, focusing on biofuels, rather than recognizing the significant impacts of fast rising petroleum prices, increasing Asian demand for protein and grains, and weather-related events like Australian and European droughts.”
Research News:
The US Labor Department reported that food prices rose at an annual 4.4 percent rate in March, but gasoline and other energy costs have risen 17 percent in the past year.
Policy and Policymakers:
The US House of Representatives voted to extend the existing Farm Bill until April 25 to give lawmakers more time to resolve differences between the House and Senate versions of the new Farm Bill, which includes tax breaks and incentives for biofuels. The current law expires on April 18.
Consumer and Fleet News:
Earth Day is April 22nd this year, and events will be staged around the country this weekend in celebration of environmental causes. A free Earth Day concert in Washington DC is expected to draw 100,000 to hear Jordin Sparks, The Roots, and Doug E Fresh and speakers such as Senate Majority Leader Harry Reid, actors actors Ed Begley, Chevy Chase and Edward Norton, and Representatives Ed Markey of Massachusetts and Jane Harmon of California.
Financial News:
The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, jumped 2.30 percent to close at 125.71 as all sectors gained in a rising stock market and in the wake of the revised Bush energy plan. For the day, Archer Daniels Midland (ADM) gained 2.36 percent to $45.20, while Aventine Renewable Energy (AVR) recovered 4,53 percent to close at $4.15.
Among small caps, Green Shift (GERS.OB) rose 7.14 percent to $0.12 on release of its latest financials, while BioSolutions Manufacturing (BSLM.OB) gained 30.00 percent to $0.0065. Overall, advances led declines 3 to 1 for the day.
