Quicknotes on biofuels, from the hispanic world

Our Spanish speaking crew compiled the following overview of newsbits on biofuels from the hispanic world. For this month's quicknotes from the lusophone world, check here.

ARGENTINA. A new and very interesting law stimulating biofuels production will create 25,000 jobs in Argentina, in the sector of biodiesel and ethanol for export alone, says senator Roberto Urquía who introduced the bill, in an interesting interview. The senator notes that Argentina has arrived at a "point of no return" when it comes to biofuels.
Interestingly, the "Ley de Biocombustibles" stresses a "bottom-up" approach for biofuels production, giving small farmers more legal instruments to become fiscal persons (in the form of cooperatives), so that they can more easily access micro-credit and capital. Bioenergy and biofuels production need a "critical mass of capital" in order to be successful, which is what the law tries to promote.
The leftist government currently in power in Argentina, will try to push the creation of biofuel production units by fiscal measures, crucially giving priority to small farmer associations over agro-industrial giants. A tech transfer program aimed at those small cooperatives will be put in place.
Further, the law contains very stringent environmental criteria to ensure that the biofuels are produced in a sustainable way.
We at the BioPact think this is the way forward for countries where huge social inequalities between farmers and the elite exist. June 6, Agrodiario Argentina and Noticias Agropecuarias.

SPAIN. Researchers from the University of Almeria have joined forces to create a "Biotech Lab for the Study of Marine Microalgae". Their aim is to couple CO2 emissions from industrial power plants to (genetically altered) algae systems which produce bioenergy feedstocks (both for ethanol as for biodiesel) by feeding on the CO2. That way, the algae biofuels displace the CO2 that would normally come from the use of petroleum.
Other research is dedicated to using the algae as a "CO2-container" for easy carbon storage underground. It is much easier to pump the captured CO2 underground when it is contained in algae, than to store it as a free gas. May 31, Terra Actualidad.

COLOMBIA. A joint-venture between a Spanish (Ingemas) and a Colombian agro-industrial company has made a major (€ 180 million) investment in producing biodiesel feedstock for export to Europe, on 90,000 hectares of land, using local oil crops, such as Inchi, Jatropha and Sacha-Inchi ('Inca Peanuts'). Sacha-Inchi (see picture) is native to the Amazon, a small hardy bush, the (edible) seeds of which contain up to 55% oil, making it an excellent biodiesel feedstock crop.
The project will produce up to 300,000 tons of oil to be exported to Europe, and a similar amount of protein for animal feed (from the press cake) to be used by local beef producers.
Interestingly, the Colombian government considers Sacha-Inchi to be a "strategic crop" which may provide an alternative source of income for coca-farmers.
Finally, the same companies are negotiating with Manuel Del Lago, another firm, to create a "bio-terminal" on the Río Orinoco in Venezuela, from which the biodiesel feedstock can be shipped to Europe. The project will create some 6000 new jobs. June 12, Finanzas. See also: "Alianza colombo-española en el agro", Portafolio Colombia.

URUGUAY. German and Canadian investors are to invest US$ 45 in a cellulosic ethanol plant in the rice-growing region of Treinta y Tres. The plant will use abundantly available rice hulls and stalks that are considered to be low-value waste products.
The technology in question is that of Iogen Corp, the Canadian pioneer in cellulosic ethanol. The project creates 200 direct jobs. June 15, Espectador.

PANAMÁ. Panamá and Brazil are combining their strengths to create a centre for the global distribution of biofuels. Panamá has no petroleum reserves of its own and is looking to Brazilian expertise for a technology transfer program that should introduce local biofuels production. But more importantly, Panamá of course has its intercontinental Canal, facing both the Atlantic and the Pacific Ocean. And that's a great asset, especially for Brazil. Panamá would become a bioenergy hub, processing and distributing biofuels from Brazil for export to both the Far East, Europe and the United States's West Coast.
As we have reported before (in the context of Brazil's 1000km dedicated ethanol pipeline), for a global biofuels trade to come into existence, a lot of infrastructural barriers still exist. The fact that Brazil is eyeing Panamá for the creation of a 'Biohub' does not come as a surprize though. June 6, El Mercurio Online.

PARAGUAY. The country's Ethanol 85 programme is a huge success, with a record demand for the fuel, now standing at 465,000 litres a day. Distilleries cannot keep up with demand and are enjoying record revenues. It now becomes crucial to increase sugar production, but through productivity increases and not so much through expansion of the growing area. For this purpose, Paraguay is looking to Brazilian expertise (with its long experience and knowledge about sugar cane agronomy. Brazil also has a vast collection of special sugar cane varieties). Jun 15, Portal Paraguayo de Noticias.

SPAIN. Spain is Europe's biggest corn producer and exporter so it looks to the global market and notes China’s record harvest this year. China's National Food Import & Export Corporation announced that the maize growing area in China has increased by 1.9%, total production is up by 1.6% and the use of the grain for the production of ethanol is up by 27%, now standing at 1.22 million tons. June 14, Terra Actualidad.

ARGENTINA. An Argentinian daughter of Japanese giant Mitsui has decided to invest US$ 300 million in an ethanol plant to be constructed in Rosario (Cordoba Province). This was announced right after the new and controversial "Ley de Biocombustibles" was passed, which focuses strongly on the social opportunities coming with biofuels. It will be interesting to see how an industrial giant cooperates with the small cooperatively owned farmers' associations that the law aims to support.
Mitsui's investment follows that of many other companies, including Repsol (US$ 30 million; 100,000 ton ethanol production plant), Vincentín (US$ 40 million, 200,000 ton biodiesel plant) and Oil Fox (US$ 80 million in both biodiesel and ethanol).
The investments keep coming, despite disgruntled agro-industrial giants like Cargill and Oil Fox, who have been critical of the socially responsible biofuels law. May 17, La Capital.

SPAIN. Between 19 and 22 October 2006, the city of Valladolid will host ExpoBioenergia 2006, a major bioenergy fair in Europe. More at: ExpoBioenergia.

DOMINICAN REPUBLIC. Milton Olive, director of the Dominican Chamber for Biofuels and Bioenergy urges Parliament to speed up legislative work on biofuels, saying the country has great potential for the production of home-grown fuel, and that such a law and program will attract major investments and create thousands of jobs. Olive wants mandatory targets and incentives to investments in infrastructure and agriculture, comparable to those implemented in the European Union.
Given the Dominican Republic's exemplary governance of its natural resources, Olive also wants a major program for the production of bio-fertilizers and for recycling agricultural waste streams. June 17, El Nuevo Diario.

ECUADOR. Malaysia and Brazil are interested in Ecuador's potential for the cultivation of Elaeis Guineensis, the African oil palm, as a biofuels feedstock. A Brazilian company is eyeing investments in 100,000 hectares of land whereas Malaysian investors have filed for the acquisition of 50,000 hectares. Ecuador currently produces 340,000 tonnes of palm oil, which it exports to Venezuela. June 12, CRE Satelital Equador.

CUBA. We end with an op-ed piece from Cuba, where Arnaldo Coro writes about the "ethics" of biofuels, a topic of interest to the BioPact. Notwithstanding the environmental and energy security benefits of ethanol and biodiesel, the question of food security must be addressed on a global scale. The reality of our consumer society is such that millions of tons of food are turned into fuel for wealthy consumers who drive inefficient cars, while at the same time 800 million people are facing food shortages and hunger. The global push towards biofuels will put pressure on grain and sugar prices, affecting these poor most.
Further, Coro notes that an opportunity exists for farmers in the South, though, to export their own energy crops. These crops enjoy the climatic advantages of the tropics, making them the most competitive. But such a scenario first requires wealthy markets such as those of the U.S. and the E.U. to lift their "criminal" subsidies, so that access to these markets indeed becomes a reality. June 15, Cuba Ahora.

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