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    Abraaj, a Dubai-based firm, has bought the company Egyptian Fertilizers in order to benefit from rising demand for crops used to make biofuels. The Abraaj acquisition of all the shares of Egyptian Fertilizers values the company based in Suez at US$1.41 billion. Egyptian Fertilizers produces about 1.25 million tons a year of urea, a nitrogen-rich crystal used to enrich soils. The company plans to expand its production capacity by as much as 20 percent in the next two years on the expected global growth in biofuel production. International Herald Tribune - June 4, 2007.

    China and the US will soon sign a biofuel cooperation agreement involving second-generation fuels, a senior government official said. Ma Kai, director of the National Development and Reform Commission, said at a media briefing that vice premier Wu Yi discussed the pact with US Secretary of Energy Samuel Bodman and other US officials during the strategic economic dialogue last month. Forbes - June 4, 2007.

    German biogas company Schmack Biogas AG reports a 372% increase in revenue for the first quarter of the year, demonstrating its fast growth. Part of it is derived from takeovers. Solarserver [*German] - June 3, 2007.

    Anglo-Dutch oil giant Royal Dutch Shell PLC has suspended the export of 150,000 barrels per day of crude oil because of community unrest in southern Nigeria, a company spokesman said. Villagers from K-Dere in the restive Ogoniland had stormed the facility that feeds the Bonny export terminal, disrupting supply of crude. It was the second seizure in two weeks. Shell reported on May 15 that protesters occupied the same facility, causing a daily output loss of 170,000 barrels. Rigzone - June 2, 2007.

    Heathrow Airport has won approval to plan for the construction of a new 'green terminal', the buildings of which will be powered, heated and cooled by biomass. The new terminal, Heathrow East, should be completed in time for the 2012 London Olympics. The new buildings form part of operator BAA's £6.2bn 10-year investment programme to upgrade Heathrow. Transport Briefing - June 1, 2007.

    A new algae-biofuel company called LiveFuels Inc. secures US$10 million in series A financing. LiveFuels is a privately-backed company working towards the goal of creating commercially competitive biocrude oil from algae by 2010. PRNewswire - June 1, 2007.

    Covanta Holding Corp., a developer and operator of large-scale renewable energy projects, has agreed to purchase two biomass energy facilities and a biomass energy fuel management business from The AES Corp. According to the companies, the facilities are located in California's Central Valley and will add 75 MW to Covanta's portfolio of renewable energy plants. Alternative Energy Retailer - May 31, 2007.

    Two members of Iowa’s congressional delegation are proposing a study designed to increase the availability of ethanol across the country. Rep. Leonard Boswell, D-Ia., held a news conference Tuesday to announce that he has introduced a bill in the U.S. House, asking for a US$2 million study of the feasibility of transporting ethanol by pipeline. Sen. Tom Harkin, D-Ia., has introduced a similar bill in the Senate. Des Moines Register - May 30, 2007.

    A new market study by Frost & Sullivan Green Energy shows that the renewables industry in the EU is expanding at an extraordinary rate. Today biofuels and other renewables represent about 2.1 per cent of the EU's gross domestic product and account for 3.5 million jobs. The study forecasts that revenues from renewables in the world's largest economy are set to double, triple or increase even more over the next few years. Engineer Live - May 29, 2007.

    A project to evaluate barley’s potential in Canada’s rapidly evolving biofuels industry has received funding of $262,000 from the Biofuels Opportunities for Producers Initiative (BOPI). Western Barley Growers Association [*.pdf] - May 27, 2007.

    PNOC-Alternative Fuels Corporation (PNOC-AFC), the biofuel unit of Philippine National Oil Company, is planning to undertake an initial public offering next year or in 2009 so it can have its own cash and no longer rely on its parent for funding of biofuels projects. Manila Bulletin - May 27, 2007.

    TMO Renewables Limited, a producer of ethanol from biomass, has licensed the ERGO bioinformatics software developed and maintained by Integrated Genomics. TMO will utilize the genome analysis tools for gene annotation, metabolic reconstruction and enzyme data-mining as well as comparative genomics. The platform will enable the company to further understand and exploit its thermophilic strains used for the conversion of biomass into fuel. CheckBiotech - May 25, 2007.

    Melbourne-based Plantic Technologies Ltd., a company that makes biodegradable plastics from plants, said 20 million pounds (€29/US$39 million) it raised by selling shares on London's AIM will help pay for its first production line in Europe. Plantic Technologies [*.pdf] - May 25, 2007.

    Shell Hydrogen LLC and Virent Energy Systems have announced a five-year joint development agreement to develop further and commercialize Virent's BioForming technology platform for the production of hydrogen from biomass. Virent Energy Systems [*.pdf] - May 24, 2007.

    Spanish energy and engineering group Abengoa will spend more than €1 billion (US$1.35 billion) over the next three years to boost its bioethanol production, Chairman Javier Salgado said on Tuesday. The firm is studying building four new plants in Europe and another four in the United States. Reuters - May 23, 2007.

    According to The Nikkei, Toyota is about to introduce flex-fuel cars in Brazil, at a time when 8 out of 10 new cars sold in the country are already flex fuel. Brazilians prefer ethanol because it is about half the price of gasoline. Forbes - May 22, 2007.

    Virgin Trains is conducting biodiesel tests with one of its diesel engines and will be running a Voyager train on a 20 percent biodiesel blend in the summer. Virgin Trains Media Room - May 22, 2007.

    Australian mining and earthmoving contractor Piacentini & Son will use biodiesel from South Perth's Australian Renewable Fuels across its entire fleet, with plans to purchase up to 8 million litres from the company in the next 12 months. Tests with B20 began in October 2006 and Piacentinis reports very positive results for economy, power and maintenance. Western Australia Business News - May 22, 2007.

    Malaysia's Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui announces he will head a delegation to the EU in June, "to counter European anti-palm oil activists on their own home ground". The South East Asian palm oil industry is seen by many European civil society organisations and policy makers as unsustainable and responsible for heavy deforestation. Malaysia Star - May 20, 2007.

    Paraguay and Brazil kick off a top-level seminar on biofuels, cooperation on which they see as 'strategic' from an energy security perspective. 'Biocombustiveis Paraguai-Brasil: Integração, Produção e Oportunidade de Negócios' is a top-level meeting bringing together the leaders of both countries as well as energy and agricultural experts. The aim is to internationalise the biofuels industry and to use it as a tool to strengthen regional integration and South-South cooperation. PanoramaBrasil [*Portuguese] - May 19, 2007.

    Portugal's Galp Energia SGPS and Petrobras SA have signed a memorandum of understanding to set up a biofuels joint venture. The joint venture will undertake technical and financial feasibility studies to set up a plant in Brazil to export biofuels to Portugal. Forbes - May 19, 2007.


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Tuesday, June 05, 2007

Scania tests show bio-based synthetic diesel sharply cuts Emissions

Scania, one of the world's leading manufacturers of trucks and buses for heavy transport applications, and of industrial and marine engines, announces it is joining forces with Neste Oil in Finland to try out a new low-emission biobased diesel fuel. Produced in Neste's NExBTL (Next Generation Biomass-to-Liquids) plant in southern Finland, the new fuel is tailored to diesel combustion. First findings show efficiency remains high, while NOx emissions are down almost 20% and particulates close to 30% compared to standard diesel. In addition, the fuel reduces fossil CO2 emissions by up to 80%. The news is important for Biopact, because Neste Oil's next-generation biodiesel may be produced from tropical vegetable oils in the near future.

Six Scania city buses form part of the trial. Four of them will run on 100% NExBTL and two on normal diesel. The project also involves tests with various mixes on some 100 vehicles operated by Posten Logistik, the logistics division of Swedish Post, and 2 or 3 ships in the Stockholm archipelago operated by Waxholmsbolaget.
"Scania's laboratory tests corroborate that bio-based synthetic diesel has great potential. Simply switching to such fuel from standard diesel can significantly improve emissions. The possibility of mixing it freely with standard diesel makes the fuel interesting for old vehicles and engines as well." - Hasse Johansson, Group Vice President R&D at Scania
Scania has carried out laboratory tests to examine the environmental effects of other diesel fuels. The tests prove that the composition of a fuel has a direct bearing on its environmental performance and that there is scope to optimise engines for different fuels. Comparisons are made with reference used for certification according to the Euro 4 exhaust emission standard:
  • Swedish low-emission diesel introduced on the market in the early 1990s, in itself cuts NOx by 8% and particulates by 24%.
  • Synthetic diesel fuel gives considerably lower emissions of nitrogen oxides (down 18%) and particulates (down 28%). Synthetic diesel can be produced from natural gas (GTL, gas-to-liquid) or biomass (BTL, biomass-to-liquid).
  • With fossil carbon dioxide cut by up to 80%, biomass-to-liquid fuels have the best environmental properties of all synthetic diesel fuels.
The new fuel from Neste, NExBTL, produced at the recently inaugurated facility, will now be subjected to environmental and operational trials, starting in autumn 2007 and lasting until the end of 2010. The tests involve monitoring of exhaust emissions and engine condition with different mixes of the fuel into standard diesel in distribution vehicles and shuttle vessels in the Stockholm region, as well as city buses in Helsinki:
:: :: :: :: :: :: :: :: ::

Bioethanol
Another attractive renewable heavy vehicle fuel on the market today is bioethanol. Emissions of fossil CO2 are reduced by up to 90%, it is readily available, production is booming, the technology is firmly established and it gives very low emissions. Scania’s third generation ethanol engines achieve the same efficiency as a conventional diesel engine, while meeting emission levels according to Euro 5, which will be introduced in 2009, as well as the tougher EEV standard, which has been adopted for city traffic in some large European urban areas.

Bioethanol has been used as fuel for adapted diesel engine in Scania city buses sine the late 1980s with excellent environmental results, according to Stockholm Public Transport (SL). Fossil carbon dioxide emissions are reduced by up to 90% for ethanol produced from sugar cane in Brazil.

“There is no reason to wait ‘a few more years’ for better alternatives. With the renewable fuels and the technologies available today we are off to a head start, making a significant contribution in reducing carbon dioxide emissions. Once new solutions, e.g. hybrid technology and potential new fuels, have proven their worth, they can also contribute by further speeding up the process,” concludes Mr Johansson.

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