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    Spanish company Ferry Group is to invest €42/US$55.2 million in a project for the production of biomass fuel pellets in Bulgaria. The 3-year project consists of establishing plantations of paulownia trees near the city of Tran. Paulownia is a fast-growing tree used for the commercial production of fuel pellets. Dnevnik - Feb. 20, 2007.

    Hungary's BHD Hõerõmû Zrt. is to build a 35 billion Forint (€138/US$182 million) commercial biomass-fired power plant with a maximum output of 49.9 MW in Szerencs (northeast Hungary). Portfolio.hu - Feb. 20, 2007.

    Tonight at 9pm, BBC Two will be showing a program on geo-engineering techniques to 'save' the planet from global warming. Five of the world's top scientists propose five radical scientific inventions which could stop climate change dead in its tracks. The ideas include: a giant sunshade in space to filter out the sun's rays and help cool us down; forests of artificial trees that would breath in carbon dioxide and stop the green house effect and a fleet futuristic yachts that will shoot salt water into the clouds thickening them and cooling the planet. BBC News - Feb. 19, 2007.

    Archer Daniels Midland, the largest U.S. ethanol producer, is planning to open a biodiesel plant in Indonesia with Wilmar International Ltd. this year and a wholly owned biodiesel plant in Brazil before July, the Wall Street Journal reported on Thursday. The Brazil plant is expected to be the nation's largest, the paper said. Worldwide, the company projects a fourfold rise in biodiesel production over the next five years. ADM was not immediately available to comment. Reuters - Feb. 16, 2007.

    Finnish engineering firm Pöyry Oyj has been awarded contracts by San Carlos Bioenergy Inc. to provide services for the first bioethanol plant in the Philippines. The aggregate contract value is EUR 10 million. The plant is to be build in the Province of San Carlos on the north-eastern tip of Negros Island. The plant is expected to deliver 120,000 liters/day of bioethanol and 4 MW of excess power to the grid. Kauppalehti Online - Feb. 15, 2007.

    In order to reduce fuel costs, a Mukono-based flower farm which exports to Europe, is building its own biodiesel plant, based on using Jatropha curcas seeds. It estimates the fuel will cut production costs by up to 20%. New Vision (Kampala, Uganda) - Feb. 12, 2007.

    The Tokyo Metropolitan Government has decided to use 10% biodiesel in its fleet of public buses. The world's largest city is served by the Toei Bus System, which is used by some 570,000 people daily. Digital World Tokyo - Feb. 12, 2007.

    Fearing lack of electricity supply in South Africa and a price tag on CO2, WSP Group SA is investing in a biomass power plant that will replace coal in the Letaba Citrus juicing plant which is located in Tzaneen. Mining Weekly - Feb. 8, 2007.

    In what it calls an important addition to its global R&D capabilities, Archer Daniels Midland (ADM) is to build a new bioenergy research center in Hamburg, Germany. World Grain - Feb. 5, 2007.

    EthaBlog's Henrique Oliveira interviews leading Brazilian biofuels consultant Marcelo Coelho who offers insights into the (foreign) investment dynamics in the sector, the history of Brazilian ethanol and the relationship between oil price trends and biofuels. EthaBlog - Feb. 2, 2007.

    The government of Taiwan has announced its renewable energy target: 12% of all energy should come from renewables by 2020. The plan is expected to revitalise Taiwan's agricultural sector and to boost its nascent biomass industry. China Post - Feb. 2, 2007.

    Production at Cantarell, the world's second biggest oil field, declined by 500,000 barrels or 25% last year. This virtual collapse is unfolding much faster than projections from Mexico's state-run oil giant Petroleos Mexicanos. Wall Street Journal - Jan. 30, 2007.

    Dubai-based and AIM listed Teejori Ltd. has entered into an agreement to invest €6 million to acquire a 16.7% interest in Bekon, which developed two proprietary technologies enabling dry-fermentation of biomass. Both technologies allow it to design, establish and operate biogas plants in a highly efficient way. Dry-Fermentation offers significant advantages to the existing widely used wet fermentation process of converting biomass to biogas. Ame Info - Jan. 22, 2007.

    Hindustan Petroleum Corporation Limited is to build a biofuel production plant in the tribal belt of Banswara, Rajasthan, India. The petroleum company has acquired 20,000 hectares of low value land in the district, which it plans to commit to growing jatropha and other biofuel crops. The company's chairman said HPCL was also looking for similar wasteland in the state of Chhattisgarh. Zee News - Jan. 15, 2007.

    The Zimbabwean national police begins planting jatropha for a pilot project that must result in a daily production of 1000 liters of biodiesel. The Herald (Harare), Via AllAfrica - Jan. 12, 2007.

    In order to meet its Kyoto obligations and to cut dependence on oil, Japan has started importing biofuels from Brazil and elsewhere. And even though the country has limited local bioenergy potential, its Agriculture Ministry will begin a search for natural resources, including farm products and their residues, that can be used to make biofuels in Japan. To this end, studies will be conducted at 900 locations nationwide over a three-year period. The Japan Times - Jan. 12, 2007.

    Chrysler's chief economist Van Jolissaint has launched an arrogant attack on "quasi-hysterical Europeans" and their attitudes to global warming, calling the Stern Review 'dubious'. The remarks illustrate the yawning gap between opinions on climate change among Europeans and Americans, but they also strengthen the view that announcements by US car makers and legislators about the development of green vehicles are nothing more than window dressing. Today, the EU announced its comprehensive energy policy for the 21st century, with climate change at the center of it. BBC News - Jan. 10, 2007.

    The new Canadian government is investing $840,000 into BioMatera Inc. a biotech company that develops industrial biopolymers (such as PHA) that have wide-scale applications in the plastics, farmaceutical and cosmetics industries. Plant-based biopolymers such as PHA are biodegradable and renewable. Government of Canada - Jan. 9, 2007.


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Tuesday, September 19, 2006

Biofuels and social sustainability

Discussions about the advantages and disadvantages of biofuels often tend to focus on environmental aspects only (on the one hand green fuels like ethanol and biodiesel can mitigate climate change, but on the other their cultivation opens questions about soil and water resources, biodiversity, deforestation and reforestation).
Most often, the social aspects of this nascent energy sector are not taken into account at all. However, we think 'social sustainability' and even 'social justice' are just as important as 'environmental sustainability'. Both can be fused into a synergy in the biofuels industry.

The opportunity for social change that can be brought about by large-scale biofuel production should not be neglected: the sector promises to bring a large number of jobs to the rural poor (as we have tried to show in numerous articles about e.g. Indonesia, Brazil, China and Nigeria), it may generate stable incomes to farmers who are at the mercy of a volatile global market, it (re-)opens the debate about land reform, it makes apparent the issues of access to energy and of local energy security in rural areas, and it represents a new paradigm in which local resource control and 'bottom-up' decision making take central stage.

Perhaps the best illustration of this potential comes from biofuels superpower Brazil. In this country, Latin America's largest social movement, the Movimento de Trabalhadores Rurais sem Terra (MST) or Landless Workers' Movement, is actively being integrated into society by way of the biofuels opportunity. During his first term, President Lula has been trying to solve the age-old problem of Brazil's rural poverty and of its tens of thousands of landless people. He thinks biofuels might offer a way out. "I have always believed that biodiesel might solve the problem of small and landless farmers". Lula's aim now is to strengthen the rural and land reforms that he initiated by tieing them to an ambitious biodiesel program ('Probiodiesel') - and to speed up both.

Another very tangible example comes from the state of Andhra Pradesh in India. Here, many of the poorest peasants have formed so-called 'Naxalite' groups who fight for social justice. The Naxalites, who have been around for decades, use a marxist-leninist or maoist discourse and have taken up the armed struggle against the local, state, and national governments. They feel structurally left out of the country's rising prosperity, and since they are the poorest farmers who live on marginal, fringe lands, they don't have much opportunity to lift themselves out of poverty. As inequality in the country grows, the Naxalites feel increasingly alienated, and consequently resort to ever more violent and desperate campaigns. Far from seeing it as a magical solution to all social problems, the Andhra Pradesh government does take the biofuel opportunity serious and has launched a massive planting campaign on Naxalite lands, with the aim of turning the tide. The marginal lands are suitable for not much else than pongamia and jatropha shrubs - but these biodiesel crops are now seen as green gold. There are some signs that Naxalite farmers agree that a win-win situation is in the make: they might obtain income security through biofuel farming, whereas the government hails their reintegration into society as part of a national security strategy:
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Finally, biofuel production may become part of post-conflict strategies focused on reintegrating ex-combatants and rebels, by making them part of viable agricultural projects. The technique of giving ex-combatants land and the means of production to develop sustainable livelihoods, which prevents them from re-joining armed groups and factions, is well tested. In such diverse countries as Liberia, Sudan, Sierra Leone or Congo, where the social fabric has become very fragile after years of civil war and where ex-combatants are continuously tempted to take up arms again because of a lack of employment opportunities, biofuel plantations and production may play an important role as stabilizing factor, because of its local rootedness and because of the job creation potential it offers.

We will be exploring the concept of 'social sustainability' and its role in the biofuels sector more often and more in depth in future articles [entry ends here].

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