World's largest iron producer wants biofuels for its operations in Guinea
The world's leading iron producer is very concerned about the long-term outlook of the energy costs of its operations. Brazilian mining giant and metals producer Companhia Vale do Rio Doce (CVRD) therefor wants to help countries where it is investing make the transition to biofuels and bioenergy [*french].
The steps involved in the production of ferrous and nonferrous metals are highly energy intensive. It is therefor crucial for metal mining and production companies to ensure stable and secure energy supplies, and if possible at low costs. CVRD is involved in ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. The company’s aluminum-related operations include bauxite mining, alumina refining, and aluminum metal smelting. In addition, it provides logistics services, including railroad, coastal shipping, and port handling operations, as well as general cargo, bulk terminal storage, and ship loading services that are integrated with its mining operations.
CVDR has extensive experience with biomass as a fuel for iron ore production. More specifically, it relies on eucalyptus wood for its smelters in Brazil. This experience and a careful analysis of longterm energy supply and price trends has led the company to launch a bioenergy and biofuels program in Guinea. It wants to assist the government of the African country, where it holds large mining rights on iron and bauxite, to build a robust energy economy and infrastructure based on biodiesel, ethanol and solid biofuels:
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: iron :: aluminum :: mining :: Guinea ::
The small African state of Guinea does not produce any oil or natural gas itself and therefor understands the importance of fossil fuel dependence. It wants to overcome this dependence by relying on locally produced green fuels. Guinea's soils and climate are diverse, with in the South a subtropical humid zone where oil palm and sugar cane can be cultivated, whereas in the more central zone cassava is the most suitable energy crop. Still more to the north, in Guinea's arid Sahelian zone, both jatropha and groundnut can be grown.
The country of 10 million is relatively prosperous compared to its neighbors, and it was spared the deadly civil wars which raged in neighboring Liberia and Sierra Leone. Some 80% of Guinea's population lives from agriculture, with 40% of all Guineans living below the poverty line.
Investments in a bioenergy industry coupled to the mining and ferro-industry promises to bring a vast number of jobs.
No concrete news about the actual projects and investments has been released, but we will certainly follow up on this announcement. More and more companies are looking at potential synergies between bioenergy and mining operations. Especially in African countries with a young mining industry, reliance on biofuels becomes interesting because fossil fuel infrastructures are often absent, and rising energy prices and the instability of supplies strengthen the case for green energy as an integrated part of this heavy industry.
More information:
L'Aurore (Conakry): Guinée: CVRD, la brésilienne veut des Biocarburants pour la Guinée (via AllAfrica).
Article continues
The steps involved in the production of ferrous and nonferrous metals are highly energy intensive. It is therefor crucial for metal mining and production companies to ensure stable and secure energy supplies, and if possible at low costs. CVRD is involved in ore mining, pellet production, manganese ore mining, and ferroalloy production, as well as in the production of nonferrous minerals, such as kaolin, potash, copper, and gold. The company’s aluminum-related operations include bauxite mining, alumina refining, and aluminum metal smelting. In addition, it provides logistics services, including railroad, coastal shipping, and port handling operations, as well as general cargo, bulk terminal storage, and ship loading services that are integrated with its mining operations.
CVDR has extensive experience with biomass as a fuel for iron ore production. More specifically, it relies on eucalyptus wood for its smelters in Brazil. This experience and a careful analysis of longterm energy supply and price trends has led the company to launch a bioenergy and biofuels program in Guinea. It wants to assist the government of the African country, where it holds large mining rights on iron and bauxite, to build a robust energy economy and infrastructure based on biodiesel, ethanol and solid biofuels:
ethanol :: biodiesel :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: iron :: aluminum :: mining :: Guinea ::
The small African state of Guinea does not produce any oil or natural gas itself and therefor understands the importance of fossil fuel dependence. It wants to overcome this dependence by relying on locally produced green fuels. Guinea's soils and climate are diverse, with in the South a subtropical humid zone where oil palm and sugar cane can be cultivated, whereas in the more central zone cassava is the most suitable energy crop. Still more to the north, in Guinea's arid Sahelian zone, both jatropha and groundnut can be grown.
The country of 10 million is relatively prosperous compared to its neighbors, and it was spared the deadly civil wars which raged in neighboring Liberia and Sierra Leone. Some 80% of Guinea's population lives from agriculture, with 40% of all Guineans living below the poverty line.
Investments in a bioenergy industry coupled to the mining and ferro-industry promises to bring a vast number of jobs.
No concrete news about the actual projects and investments has been released, but we will certainly follow up on this announcement. More and more companies are looking at potential synergies between bioenergy and mining operations. Especially in African countries with a young mining industry, reliance on biofuels becomes interesting because fossil fuel infrastructures are often absent, and rising energy prices and the instability of supplies strengthen the case for green energy as an integrated part of this heavy industry.
More information:
L'Aurore (Conakry): Guinée: CVRD, la brésilienne veut des Biocarburants pour la Guinée (via AllAfrica).
Article continues
Monday, October 09, 2006
High representative: biogas can replace all of Germany's natural gas imports from Russia
This is very important news to us, because we are staunch advocates of biogas as a renewable, climate-friendly fuel, especially for the developing world. Of all (transport and stationary) fuels, biogas has the lowest CO2 footprint (earlier post). When a major industrial power like Germany heeds Schmack's call, the technology will be boosted and eventually find more acceptance all over the world (and especially so in rapidly emerging countries like China and India, where Germany's engineering tradition as well as its renewable energy efforts are seen as world leading).
Schmack assesses Germany's long-term energy options and starts by saying that the country's decision to phase out nuclear energy stands firm: "The decision is not up for debate." Nuclear energy, the representative adds, is not a renewable or clean energy source anyways. The supply of uranium is already problematic and the long-term supply outlook for high-grade nuclear fuel is not very encouraging. Biogas, Schmack says, grows each year, in a clean way, and does not suffer from supply constraints.
The question is whether biogas can replace a large enough amount of energy in order to counter the nuclear lobby's efforts of reopening the debate about the phase-out: "At the end of 2005, Germany produced 10.5% of all its energy from renewable resources. Each year, the share increases by 2 to 3%. The math is simple: by 2030 and at this pace, green energy will have replaced a huge amount of fossil energy."
Asked whether renewables like biogas aren't too costly to produce, Schmack urges analysts to look at the total costs and to put a value on such issues as geopolitical uncertainties stemming from energy dependence. Moreover, Schmack insists that since biogas is produced locally, by local farmers and entrepreneurs, the state receives taxes from those involved, which are kept inside the country and contribute to its economy.
Ulrich Schmack has a vision, based on sound data and realistic projections, even though many will be surprised to hear it: "In 2030 Germany will produce 40 billion cubic metres (1.4 trillion cubic feet) of biogas per year. By that time we don't need any gas from Russia any longer. The billions of Euros that flow out of the country now to Saudi Arabia and Russia, stay here and will benefit our economy." "Security of supply and buffers against price fluctuations are guaranteed", Schmack adds.
An often recurring 'moral' problem remains, though: is it morally acceptable to use land to grow crops for energy when world hunger is a persistent problem? Schmack: "Man does not live from bread alone, he needs heat and energy too. What's more, people all over the world nowadays spend more of their disposable incomes on energy that on food. There are clear reasons for this". Moreover, for more than 5 decades, European countries have set-aside millions of hectares of land, and even paid farmers not use that land! And 'historically speaking, not long ago we used to grow vast hectarages of oat - the fuel for the horses that drove both agriculture and urban transport":
biomass :: bioenergy :: biofuels :: energy :: sustainability :: biogas :: natural gas :: Russia :: Germany ::
In this sense, bioenergy and biofuels mean a return to the energy paradigm of earlier times. The alternative is a global climate catastrophe that will have much more damaging effects on the poor, whose food security will be threatened even more.
The energy top in Berlin will thoroughly investigate the real efficiency of different bioenergy systems and analyse projections of efficiency increases. Schmack says this is a routine job, and points to the fact that he will push for more investments in highly efficient combined-heat-and-power (CHP) systems: "We have to get more out of our energy sources." In order to achieve this, the representative adds, decentralisation and localisation is of key importance. The integration of smaller energy systems based on biomass, wind and geothermal, in urban networks must get priority.
Schmack is confident that Germany's Energy Minister, Michael Glos, who recently showed some renewed interest for nuclear, will react positively to his vision and data about the potential of biogas. The reason for his optimism: recently Schmack Biogas AG opened a plant Prichsenstadt which powers the milling company of one of Glos's sons. Present at the opening were Germany's Economy Minister and... father Glos. And what struck Schmack most is that both, whispering like conspirators, "have literally confessed that biomass is our future."
More information:
Mittelbayerische Zeitung: Biogas könnte Gas aus Russland ersetzen - Ulrich Schmack setzt sich heute beim Gipfel im Kanzleramt für erneuerbare Energien ein - Oct. 9, 2006
Article continues
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