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    According to the Barbados Agricultural Management Company (BAMC), the Caribbean island state has a large enough potential to meet both its domestic ethanol needs (E10) and to export to international markets. BAMC is working with state actors to develop an entirely green biofuel production process based on bagasse and biomass. The Barbados Advocate - June 6, 2007.

    Energea, BioDiesel International and the Christof Group - three biodiesel producers from Austria - are negotiating with a number of Indonesian agribusiness companies to cooperate on biodiesel production, Austrian Commercial Counselor Raymund Gradt says. The three Austrian companies are leading technology solution providers for biodiesel production and currently produce a total of 440,000 tons of biodiesel per annum in Austria, more than half of their country’s annual demand of around 700,000-800,000 tons. In order to meet EU targets, they want to produce biodiesel abroad, where feedstocks and production is more competitive. BBJ - June 6, 2007.

    China will develop 200 million mu (13.3 million hectares) of forests by 2020 in order to supply the raw materials necessary for producing 6 million tons of biodiesel and biomass per year, state media reported today. InterFax China - June 6, 2007.

    British Petroleum is planning a biofuel production project in Indonesia. The plan is at an early stage, but will involve the establishment of an ethanol or biodiesel plant based on sugarcane or jatropha. The company is currently in talks with state-owned plantation and trading firm Rajawali Nusantara Indonesia (RNI) as its potential local partner for the project. Antara - June 6, 2007.

    A pilot project to produce biodiesel from used domestic vegetable oil is underway at the Canary Technological Institute in Gran Canaria. Marta Rodrigo, the woman heading up the team, said the project is part of the EU-wide Eramac scheme to encourage energy saving and the use of renewable energy. Tenerife News - June 6, 2007.

    Royal Dutch Shell Plc is expanding its fuel distribution infrastructure in Thailand by buying local petrol stations. The company will continue to provide premium petrol until market demand for gasohol (an petrol-ethanol mixture) climbs to 70-90%, which will prove customers are willing to switch to the biofuel. "What we focus on now is proving that our biofuel production technology is very friendly to engines", a company spokesman said. Bangkok Post - June 5, 2007.

    Abraaj, a Dubai-based firm, has bought the company Egyptian Fertilizers in order to benefit from rising demand for crops used to make biofuels. The Abraaj acquisition of all the shares of Egyptian Fertilizers values the company based in Suez at US$1.41 billion. Egyptian Fertilizers produces about 1.25 million tons a year of urea, a nitrogen-rich crystal used to enrich soils. The company plans to expand its production capacity by as much as 20 percent in the next two years on the expected global growth in biofuel production. International Herald Tribune - June 4, 2007.

    China and the US will soon sign a biofuel cooperation agreement involving second-generation fuels, a senior government official said. Ma Kai, director of the National Development and Reform Commission, said at a media briefing that vice premier Wu Yi discussed the pact with US Secretary of Energy Samuel Bodman and other US officials during the strategic economic dialogue last month. Forbes - June 4, 2007.

    German biogas company Schmack Biogas AG reports a 372% increase in revenue for the first quarter of the year, demonstrating its fast growth. Part of it is derived from takeovers. Solarserver [*German] - June 3, 2007.

    Anglo-Dutch oil giant Royal Dutch Shell PLC has suspended the export of 150,000 barrels per day of crude oil because of community unrest in southern Nigeria, a company spokesman said. Villagers from K-Dere in the restive Ogoniland had stormed the facility that feeds the Bonny export terminal, disrupting supply of crude. It was the second seizure in two weeks. Shell reported on May 15 that protesters occupied the same facility, causing a daily output loss of 170,000 barrels. Rigzone - June 2, 2007.

    Heathrow Airport has won approval to plan for the construction of a new 'green terminal', the buildings of which will be powered, heated and cooled by biomass. The new terminal, Heathrow East, should be completed in time for the 2012 London Olympics. The new buildings form part of operator BAA's £6.2bn 10-year investment programme to upgrade Heathrow. Transport Briefing - June 1, 2007.

    A new algae-biofuel company called LiveFuels Inc. secures US$10 million in series A financing. LiveFuels is a privately-backed company working towards the goal of creating commercially competitive biocrude oil from algae by 2010. PRNewswire - June 1, 2007.

    Covanta Holding Corp., a developer and operator of large-scale renewable energy projects, has agreed to purchase two biomass energy facilities and a biomass energy fuel management business from The AES Corp. According to the companies, the facilities are located in California's Central Valley and will add 75 MW to Covanta's portfolio of renewable energy plants. Alternative Energy Retailer - May 31, 2007.

    Two members of Iowa’s congressional delegation are proposing a study designed to increase the availability of ethanol across the country. Rep. Leonard Boswell, D-Ia., held a news conference Tuesday to announce that he has introduced a bill in the U.S. House, asking for a US$2 million study of the feasibility of transporting ethanol by pipeline. Sen. Tom Harkin, D-Ia., has introduced a similar bill in the Senate. Des Moines Register - May 30, 2007.

    A new market study by Frost & Sullivan Green Energy shows that the renewables industry in the EU is expanding at an extraordinary rate. Today biofuels and other renewables represent about 2.1 per cent of the EU's gross domestic product and account for 3.5 million jobs. The study forecasts that revenues from renewables in the world's largest economy are set to double, triple or increase even more over the next few years. Engineer Live - May 29, 2007.

    A project to evaluate barley’s potential in Canada’s rapidly evolving biofuels industry has received funding of $262,000 from the Biofuels Opportunities for Producers Initiative (BOPI). Western Barley Growers Association [*.pdf] - May 27, 2007.

    PNOC-Alternative Fuels Corporation (PNOC-AFC), the biofuel unit of Philippine National Oil Company, is planning to undertake an initial public offering next year or in 2009 so it can have its own cash and no longer rely on its parent for funding of biofuels projects. Manila Bulletin - May 27, 2007.

    TMO Renewables Limited, a producer of ethanol from biomass, has licensed the ERGO bioinformatics software developed and maintained by Integrated Genomics. TMO will utilize the genome analysis tools for gene annotation, metabolic reconstruction and enzyme data-mining as well as comparative genomics. The platform will enable the company to further understand and exploit its thermophilic strains used for the conversion of biomass into fuel. CheckBiotech - May 25, 2007.

    Melbourne-based Plantic Technologies Ltd., a company that makes biodegradable plastics from plants, said 20 million pounds (€29/US$39 million) it raised by selling shares on London's AIM will help pay for its first production line in Europe. Plantic Technologies [*.pdf] - May 25, 2007.

    Shell Hydrogen LLC and Virent Energy Systems have announced a five-year joint development agreement to develop further and commercialize Virent's BioForming technology platform for the production of hydrogen from biomass. Virent Energy Systems [*.pdf] - May 24, 2007.

    Spanish energy and engineering group Abengoa will spend more than €1 billion (US$1.35 billion) over the next three years to boost its bioethanol production, Chairman Javier Salgado said on Tuesday. The firm is studying building four new plants in Europe and another four in the United States. Reuters - May 23, 2007.

    According to The Nikkei, Toyota is about to introduce flex-fuel cars in Brazil, at a time when 8 out of 10 new cars sold in the country are already flex fuel. Brazilians prefer ethanol because it is about half the price of gasoline. Forbes - May 22, 2007.

    Virgin Trains is conducting biodiesel tests with one of its diesel engines and will be running a Voyager train on a 20 percent biodiesel blend in the summer. Virgin Trains Media Room - May 22, 2007.

    Australian mining and earthmoving contractor Piacentini & Son will use biodiesel from South Perth's Australian Renewable Fuels across its entire fleet, with plans to purchase up to 8 million litres from the company in the next 12 months. Tests with B20 began in October 2006 and Piacentinis reports very positive results for economy, power and maintenance. Western Australia Business News - May 22, 2007.

    Malaysia's Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui announces he will head a delegation to the EU in June, "to counter European anti-palm oil activists on their own home ground". The South East Asian palm oil industry is seen by many European civil society organisations and policy makers as unsustainable and responsible for heavy deforestation. Malaysia Star - May 20, 2007.

    Paraguay and Brazil kick off a top-level seminar on biofuels, cooperation on which they see as 'strategic' from an energy security perspective. 'Biocombustiveis Paraguai-Brasil: Integração, Produção e Oportunidade de Negócios' is a top-level meeting bringing together the leaders of both countries as well as energy and agricultural experts. The aim is to internationalise the biofuels industry and to use it as a tool to strengthen regional integration and South-South cooperation. PanoramaBrasil [*Portuguese] - May 19, 2007.

    Portugal's Galp Energia SGPS and Petrobras SA have signed a memorandum of understanding to set up a biofuels joint venture. The joint venture will undertake technical and financial feasibility studies to set up a plant in Brazil to export biofuels to Portugal. Forbes - May 19, 2007.


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Thursday, June 07, 2007

Virgin launches first biodiesel train in Europe

Virgin Trains' Sir Richard Branson launched Europe’s first biodiesel blend train in scheduled passenger service – the 11:27 from London Euston to Llandudno, North Wales. The train is the first regularly scheduled train in Europe to use a practicable blended fuel which can significantly reduce CO2 emissions. The Virgin Trains trial is seen as a major step in a national biodiesel programme, conducted by Virgin Trains, the Association of Train Operating Companies (ATOC) and the Rail Safety & Standards Board (RSSB), to pioneer a sustainable fuel breakthrough for the rail industry.

As part of a national trial, Virgin Trains will run one of its Voyagers on a 20 percent biodiesel blend.
"This is a pioneering step we’re taking. If the trial is a success – and we believe it will be – and we can convert our Voyager fleet to run on B20 biodiesel we could cut our CO2 emissions by up to 14 percent. This means 34,500 tonnes less CO2 being emitted into the atmosphere each year, and is equivalent to taking 23,000 cars off the road. Government wants to see a reduction in transport’s carbon dioxide emissions, and Virgin and the rail industry are at the forefront. We’re starting with 20 percent biodiesel and hope to increase this amount to 100 percent in the future which would potentially see 100,000 cars off the road." - Sir Richard Branson, CEO of Virgin Trains
Virgin CrossCountry Managing Director Chris Gibb said: “Sir Richard set out a vision that Virgin should be at the forefront of developing sustainable energy. I am really proud that it is the people at Virgin Trains who are the first to have risen to the challenge.”

As part of the investment in biodiesel special fuelling points have been installed at Bombardier Transportation’s depots in Barton-under-Needwood, Staffordshire and Crofton, West Yorkshire and modifications have been made to the Cummins’ engines. During the trial the biodiesel train will run across much of Britain, from Birmingham to Scotland, in South Wales, North East England, the North West, Lake District, West Country, the South West and South Coast.

If the trial is a success the current higher duty on biodiesel would mean changes to duty levels would be required for a viable conversion of the fleet to biodiesel operation. The Treasury has made an important concession for this trial, but beyond this the duty rate would be 54.68p per litre – considerably more than the 7.69p per litre duty paid by the rail industry for diesel - and would require legislation to change:
:: :: :: :: :: :: :: :: ::

In addition to the environmental benefits of the Voyager trial, Virgin’s Pendolino electric trains return 17 percent of the power they use to the national grid every time they brake, making the Pendolino fleet one of the most efficient in the world. Over the course of a year this is enough to power 11,825 homes. These trains emit 76 percent less CO2 than cars or domestic flights.

The trial also forms part of Virgin Group’s vision to use clean-fuel technology to reduce carbon dioxide emissions. Virgin Atlantic has ordered 15 Boeing 787 Dreamliner aircraft, which are 27 percent more fuel efficient than its current fleet, and will begin testing biofuel in 2008 (earlier post). Overall the Virgin Group has already contributed US$200 million of its pledged US$3 billion to developing sustainable energy. Virgin Fuels has already constructed three ethanol plants which are cheaper and greener than standard corn–to–ethanol plants, as they substantially reduce the need for fossil fuels in ethanol production.

Over ten years Virgin Trains has developed the West Coast and CrossCountry franchises into high quality networks, offering a green alternative to air and car travel. Passenger numbers are now at 43 million a year and punctuality is currently running at well over 85 percent on both routes. But it doesn’t stop there. In December 2008 there will be faster journeys on London services, with almost one third more trains running. Virgin Trains also hopes to be able to run trains at 135mph and add two more coaches to Pendolino trains, encouraging millions more people out of their cars and off domestic flights.

One hundred percent of any profits made by Virgin Group through its train and plane companies for the next 10 years will be invested into developing clean fuels.

Earlier in Europe, the French national railways SNCF tested a very high blend (B80) of biodiesel in several of its trains. Abroad too, interest in the biofuel as a replacement for diesel is growing: Brazil's mining group CVRD, the world's largest iron producer, announced it is going to use biodiesel in its trains (earlier post), whereas in India, the country with the largest rail network, the national railways have started testing jatropha-based biodiesel and is establishing vast plantations for the crop (earlier post). Finally, in Sweden, a world premiere was delivered when a regularly scheduled train was made to run on biogas (see here).


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