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    Some $170 billion in new technology development projects, infrastructure equipment and construction, and biofuel refineries will result from the ethanol production standards contained the new U.S. Energy Bill, says BIO, the global Biotechnology Industry Organization. According to Brent Erickson, BIO's executive vice president "Such a new energy infrastructure has not occurred in more than 100 years. We are at the point where we were in the 1850s when kerosene was first distilled and began to replace whale oil. This technology will be coming so fast that what we say today won't be true in two years." Chemical & Engineering News - January 07, 2007.

    Scottish and Southern Energy plc, the UK's second largest power company, has completed the acquisition of Slough Heat and Power Ltd from SEGRO plc for a total cash consideration of £49.25m. The 101MW CHP plant is the UK’s largest dedicated biomass energy facility fueled by wood chips, biomass and waste paper. Part of the plant is contracted under the Non Fossil Fuel Obligation and part of it produces over 200GWH of output qualifying for Renewable Obligation Certificates (ROCs), which is equivalent to around 90MW of wind generation. Scottish & Southern Energy - January 2, 2007.

    PetroChina Co Ltd, the country's largest oil and gas producer, plans to invest 800 million yuan to build an ethanol plant in Nanchong, in the southwestern province of Sichuan, its parent China National Petroleum Corp said. The ethanol plant has a designed annual capacity of 100,000 tons. ABCMoneyNews - December 21, 2007.

    Mexico passed legislation to promote biofuels last week, offering unspecified support to farmers that grow crops for the production of any renewable fuel. Agriculture Minister Alberto Cardenas said Mexico could expand biodiesel faster than ethanol. More soon. Reuters - December 20, 2007.

    Oxford Catalysts has placed an order worth approximately €700,000 (US$1 million) with the German company Amtec for the purchase of two Spider16 high throughput screening reactors. The first will be used to speed up the development of catalysts for hydrodesulphurisation (HDS). The second will be used to further the development of catalysts for use in gas to liquid (GTL) and Fischer-Tropsch processes which can be applied to next generation biofuels. AlphaGalileo - December 18, 2007.

    According to the Instituto Brasileiro de Geografia e Estatística (IBGE), Brazil's production of sugarcane will increase from 514,1 million tonnes this season, to a record 561,8 million tonnes in the 2008/09 cyclus - an increase of 9.3%. New numbers are also out for the 2007 harvest in Brazil's main sugarcane growing region, the Central-South: a record 425 million tonnes compared to 372,7 million tonnes in 2006, or a 14% increase. The estimate was provided by Unica – the União da Indústria de Cana-de-Açúcar. Jornal Cana - December 16, 2007.

    The University of East Anglia and the UK Met Office's Hadley Centre have today released preliminary global temperature figures for 2007, which show the top 11 warmest years all occurring in the last 13 years. The provisional global figure for 2007 using data from January to November, currently places the year as the seventh warmest on records dating back to 1850. The announcement comes as the Secretary-General of the World Meteorological Organization (WMO), Michel Jarraud, speaks at the Conference of the Parties (COP) in Bali. Eurekalert - December 13, 2007.

    The Royal Society of Chemistry has announced it will launch a new journal in summer 2008, Energy & Environmental Science, which will distinctly address both energy and environmental issues. In recognition of the importance of research in this subject, and the need for knowledge transfer between scientists throughout the world, from launch the RSC will make issues of Energy & Environmental Science available free of charge to readers via its website, for the first 18 months of publication. This journal will highlight the important role that the chemical sciences have in solving the energy problems we are facing today. It will link all aspects of energy and the environment by publishing research relating to energy conversion and storage, alternative fuel technologies, and environmental science. AlphaGalileo - December 10, 2007.

    Dutch researcher Bas Bougie has developed a laser system to investigate soot development in diesel engines. Small soot particles are not retained by a soot filter but are, however, more harmful than larger soot particles. Therefore, soot development needs to be tackled at the source. Laser Induced Incandescence is a technique that reveals exactly where soot is generated and can be used by project partners to develop cleaner diesel engines. Terry Meyer, an Iowa State University assistant professor of mechanical engineering, is using similar laser technology to develop advanced sensors capable of screening the combustion behavior and soot characteristics specifically of biofuels. Eurekalert - December 7, 2007.

    Lithuania's first dedicated biofuel terminal has started operating in Klaipeda port. At the end of November 2007, the stevedoring company Vakaru krova (VK) started activities to manage transshipments. The infrastructure of the biodiesel complex allows for storage of up to 4000 cubic meters of products. During the first year, the terminal plans to transship about 70.000 tonnes of methyl ether, after that the capacities of the terminal would be increased. Investments to the project totaled €2.3 million. Agrimarket - December 5, 2007.

    New Holland supports the use of B100 biodiesel in all equipment with New Holland-manufactured diesel engines, including electronic injection engines with common rail technology. Overall, nearly 80 percent of the tractor and equipment manufacturer's New Holland-branded products with diesel engines are now available to operate on B100 biodiesel. Tractor and equipment maker John Deere meanwhile clarified its position for customers that want to use biodiesel blends up to B20. Grainnet - December 5, 2007.

    According to Wetlands International, an NGO, the Kyoto Protocol as it currently stands does not take into account possible emissions from palm oil grown on a particular type of land found in Indonesia and Malaysia, namely peatlands. Mongabay - December 5, 2007.

    Malaysia's oil & gas giant Petronas considers entering the biofuels sector. Zamri Jusoh, senior manager of Petronas' petroleum development management unit told reporters "of course our focus is on oil and gas, but I think as we move into the future we cannot ignore the importance of biofuels." AFP - December 5, 2007.

    In just four months, the use of biodiesel in the transport sector has substantially improved air quality in Metro Manila, data from the Philippines Department of Environment and Natural Resources (DENR) showed. A blend of one percent coco-biodiesel is mandated by the Biofuels Act of 2007 which took effect last May. By 2009, it would be increased to two percent. Philippine Star - December 4, 2007.

    Kazakhstan will next year adopt laws to regulate its fledgling biofuel industry and plans to construct at least two more plants in the next 18 months to produce environmentally friendly fuel from crops, industry officials said. According to Akylbek Kurishbayev, vice-minister for agriculture, he Central Asian country has the potential to produce 300,000 tons a year of biodiesel and export half. Kazakhstan could also produce up to 1 billion liters of bioethanol, he said. "The potential is huge. If we use this potential wisely, we can become one of the world's top five producers of biofuels," Beisen Donenov, executive director of the Kazakhstan Biofuels Association, said on the sidelines of a grains forum. Reuters - November 30, 2007.

    SRI Consulting released a report on chemicals from biomass. The analysis highlights six major contributing sources of green and renewable chemicals: increasing production of biofuels will yield increasing amounts of biofuels by-products; partial decomposition of certain biomass fractions can yield organic chemicals or feedstocks for the manufacture of various chemicals; forestry has been and will continue to be a source of pine chemicals; evolving fermentation technology and new substrates will also produce an increasing number of chemicals. Chemical Online - November 27, 2007.

    German industrial conglomerate MAN AG plans to expand into renewable energies such as biofuels and solar power. Chief Executive Hakan Samuelsson said services unit Ferrostaal would lead the expansion. Reuters - November 24, 2007.

    Analysts think Vancouver-based Ballard Power Systems, which pumped hundreds of millions and decades of research into developing hydrogen fuel cells for cars, is going to sell its automotive division. Experts describe the development as "the death of the hydrogen highway". The problems with H2 fuel cell cars are manifold: hydrogen is a mere energy carrier and its production requires a primary energy input; production is expensive, as would be storage and distribution; finally, scaling fuel cells and storage tanks down to fit in cars remains a huge challenge. Meanwhile, critics have said that the primary energy for hydrogen can better be used for electricity and electric vehicles. On a well-to-wheel basis, the cleanest and most efficient way to produce hydrogen is via biomass, so the news is a set-back for the biohydrogen community. But then again, biomass can be used more efficiently as electricity for battery cars. Canada.com - November 21, 2007.

    South Korea plans to invest 20 billion won (€14.8/$21.8 million) by 2010 on securing technologies to develop synthetic fuels from biomass, coal and natural gas, as well as biobutanol. 29 private companies, research institutes and universities will join this first stage of the "next-generation clean energy development project" led by South Korea's Ministry of Commerce, Industry and Energy. Korea Times - November 19, 2007.

    OPEC leaders began a summit today with Venezuelan President Hugo Chavez issuing a chilling warning that crude prices could double to US$200 from their already-record level if the United States attacked Iran or Venezuela. He urged assembled leaders from the OPEC, meeting for only the third time in the cartel's 47-year history, to club together for geopolitical reasons. But the cartel is split between an 'anti-US' block including Venezuela, Iran, and soon to return ex-member Ecuador, and a 'neutral' group comprising most Gulf States. France24 - November 17, 2007.

    The article "Biofuels: What a Biopact between North and South could achieve" published in the scientific journal Energy Policy (Volume 35, Issue 7, 1 July 2007, Pages 3550-3570) ranks number 1 in the 'Top 25 hottest articles'. The article was written by professor John A. Mathews, Macquarie University (Sydney, Autralia), and presents a case for a win-win bioenergy relationship between the industrialised and the developing world. Mathews holds the Chair of Strategic Management at the university, and is a leading expert in the analysis of the evolution and emergence of disruptive technologies and their global strategic management. ScienceDirect - November 16, 2007.

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Friday, January 04, 2008

Report: biogas can replace all EU natural gas imports


Last year, the German Greens (Grüne) commissioned a report on the potential of biogas in Europe. The Öko-Instituts and the Institut für Energetik in Leipzig carried out the study and came to some startling conclusions: Germany alone can produce more biogas by 2020 than all of the EU's current natural gas imports from Russia. German TV channel ZDF made a reportage about the findings, which Biopact translated.

The biogas sector is booming in Germany and has become the continent's fastest renewable energy sector. Market leader Schmack Biogas just recently received a €130 million investment to expand its activities - one of last year's largest renewable energy deals. The company is involved in several new large scale projects.

The growing interest in the gaseous biofuel can be easily explained: it can be produced in a decentralised manner, it is highly efficient - yielding more than twice as much energy per hectare of energy crops than ethanol from similar crops - and it can be obtained in a straightforward way from a large variety of biomass resources (organic waste, manure, dedicated energy crops). What is more, the fuel has two highly efficient uses: as a gas for CNG-capable vehicles (taking you twice around the world on a hectare's worth of biogas) as well as a fuel that can be used for the cogeneration of power and heat. Meanwhile, advances in biogas technology, microbiology and crop engineering have made production even more efficient.

Now, producers in Germany want to go a step further. They want to start feeding upgraded biogas into the main natural gas grid and cover the entire EU. There is only one problem standing in their way: their purified biogas, also known as biomethane, is too good for the natural gas pipelines. That is, its heating value is too high. As the only country in Europe, Germany imposes an upper quality limit on gas. The German Greens and the country's environmentalists and farmers are therefor asking for a new law that allows producers to feed their superior, renewable and green gas into the national pipelines.

Biopact reported earlier on the biogas report, here. And meanwhile, the German government has taken first steps towards crafting a 'biogas feed-in law' that forces pipeline operators to open their network for biogas. The biofuel can ultimately break the monopoly of the current gas suppliers. Biopact will track this exciting story as it unfolds further this year.
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Scientist: U.S. corn subsidies drive deforestation in the Amazon

The Brazilian government and environmentalists alike hailed a recent, historic decline in deforestation rates in Brazil. Since 2004, the deforestation rate has fallen by more than 60 percent, despite high commodity prices and a major growth in biofuel production in the country (previous post). The trend continued in the first half of 2007, with a 31 percent drop (graph, click to enlarge).

Meanwhile, the public at large learned that sugarcane used for Brazil's ethanol is not grown in the rainforest, but a thousand miles south of the Amazon. All of this is good news. But the Smithsonian Tropical Institute's staff scientist William Laurance now thinks Amazon deforestation and fires could be reappearing as a result of lavish US farm subsidies.

According to Laurance, whose findings were reported in a letter to Science, a recent spike in Amazonian fires is being promoted by massive US subsidies that promote American corn production for first generation ethanol. This inefficient ethanol is being blended with gasoline as an automobile fuel. American taxpayers are spending $11 billion a year to subsidize corn producers — and this is having some surprising global consequences, he writes. (More on US biofuels subsidies here).

The US is the world's leading producer of soy, but many American soy farmers are shifting to corn to qualify for the government subsidies. Since 2006, US corn production rose 19% while soy farming fell by 15%.

The drop-off in US soy has helped to drive a major increase in global soy prices, which have nearly doubled in the last 14 months. In Brazil, the world's second-largest soy producer, high soy prices are having a serious impact on the Amazon rainforest and tropical savannas.
Amazon fires and forest destruction have spiked over the last several months, especially in the main soy-producing states in Brazil. Just about everyone there attributes this to rising soy and beef prices. - William Laurance, Smithsonian Tropical Institute staff scientist
High soy prices affect the Amazon in several ways. Some forests are cleared for soy farms. Farmers also buy and convert many cattle ranches into soy farms, effectively pushing the ranchers further into the Amazonian frontier:
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Finally, wealthy soy farmers are lobbying for major new Amazon highways to transport their soybeans to market, and this is increasing access to forests for loggers and land speculators.

Laurance emphasized that he was not the first person to suggest that US corn subsidies could indirectly harm the Amazon. "But now we're seeing that these predictions - first made last summer - are being borne out. The evidence of a corn connection to the Amazon is circumstantial, but it's about as close as you ever get to a smoking gun."

Graph: Deforestation in the Brazilian Amazon, 1988-2007. Credit: Mongabay.

References:
William Laurance, "Switch to Corn Promotes Amazon Deforestation", Science, 14 December 2007: 1721b, DOI: 10.1126/science.318.5857.1721b

Smithsonian Tropical Research Institute: Corn... fuel... fire! U.S. corn subsidies promote Amazon de forestation, December 17, 2007.

Biopact: Subsidies for uncompetitive U.S. biofuels cost taxpayers billions - report - October 26, 2006

Biopact: Deforestation rate in Amazon decreased by 25% between 2005 and 2006 - August 13, 2007

Mongabay: Amazon deforestation in Brazil falls 31% for 2007 - August 13, 2007.


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