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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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Friday, September 08, 2006

Volkswagen attacks first generation biofuels made from "lobby crops"

The following article appeared in the international press. It is about food-versus-fuel, but allow us to add our nuances in [square brackets] and our stress of certain facts in italics, because, as usual, the debate is narrowminded and forgets that there is a world beyond the borders of Europe and North America, where an entirely different rationale behind the promotion of biofuels exists. We do agree with the bulk of VW's comments, which make it clear that it is high time to invest in biofuel crops in the South, and to stop wasting energy, resources and taxpayers' money on cultivating low-yielding "lobby crops" in the US and the EU to be used for biofuels.

Volkswagen on Thursday attacked biofuels made from food crops [from Europe and North America] as unsustainable, setting the German carmaker at odds with President Bush, US carmakers and European governments, which have all been touting ethanol as an environmentally friendly alternative to petrol in cars.

Bernd Pischetsrieder, chief executive, called on politicians to lower tax breaks for current "first-generation" fuels – made in the US and Europe from corn, wheat, rape seed and sugar beet – and instead provide financial support for new second-generation technologies that promise big cuts in carbon dioxide. [Second generation technologies include cellulosic ethanol and thermochemical conversion of biomass to liquids].

Mr Pischetsrieder said some of the current biofuels were "totally pointless" and "like a wolf in sheep's clothing". He criticised tax benefits that were not linked to carbon dioxide, since some methods of refining biofuel actually led to higher carbon emissions than from petrol. "The current situation is totally unsatisfactory, both from the environmental and economic standpoint," he said. [Indeed, "lobby crops" have a negative 'EROEI' (Energy return on energy invested), meaning they require more fossil fuels to produce them, than the energy they contain as finished goods; this negative energy balance means that these crops effectively add CO2. The opposite is true for 'tropical biofuels'.]

Even as Mr Pischetsrieder was speaking in Berlin, the US Environmental Protection Agency proposed an increase to renewable fuel requirements – mainly ethanol – from 2.78 per cent of all fuel this year to 3.71 per cent next year, and said it would help cut CO2emissions. Mr Pischetsrieder is the highest profile opponent of today's biofuel technology.

The handful of opponents of the fuel in the environmental movement have mostly been concerned about increased leakage of carcinogenic fumes, development of monoculture farms and the danger to rainforests from new palm plantations in developing countries, particularly Malaysia and Indonesia. Soaring demand for biofuels has contributed to a surge in the price of several of the grains and oilseeds used to make ethanol and biodiesel. [Which, if sourced from the developing world, where these crops yield far more than in the North, means an economic boost to these countries.] US carmakers have been strongly supportive of biofuels [but only those based on corn and soy - local crops for which huge lobbies exist in the US], running expensive ad campaigns in an attempt to win back customers concerned about the environment who had defected to Japanese rivals [hybrid cars].

General Motors and Ford argue that even though the carbon benefits of today's technology are small, and biofuel is more expensive per mile than petrol even with tax breaks [this is true for lobby crops only, not for tropical crops], the fuel should be promoted by governments in order to ensure the market is prepared when new technologies arrive. [No, the governments should invest in negawatts and in energy efficiency first, making cars that get 100 miles per gallon minimum mandatory, and in tropical biofuels second, with a view on coupling development policies for the South, to a sustainable bioenergy industry. They should stop wasting tax money to sustain their own wasteful agro-industrial lobbies.] [Entry ends here].

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