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    Canadian forest products company Tembec today announced that it has completed the acquisition of the assets of Chapleau Cogeneration Limited located in Chapleau, Ontario. The transaction closed on August 15 and includes a biomass fired boiler and steam turbine with an installed capacity of 7.2 megawatts. Consideration for the assets consists of a series of future annual payments to 2022, with a present value of approximately $1 million. Newswire Canada - August 22, 2007.

    Taiwan's representative to Brazil, Chou Shu-yeh, is urging Taiwan's government and private enterprises to invest in Brazil's biomass energy sector. Chou was speaking at a workshop on global investment and trade opportunities in Taipei. RTi - August 22, 2007.

    An algae-to-biofuels startup by the name of Inventure Chemical has raised about $1.5 million to continue its development of a chemical process that turns algae into biodiesel and ethanol. One of the biggest backers of the company is Imperium Renewables, a biodiesel producer. Seattle Post Intelligencer - August 22, 2007.

    The government of India's Karnataka state has approved the blending of six million litres of ethanol with diesel for use as fuel in State Road Transport Corporation (KSRTC) vehicles. Automotive World - August 21, 2007.

    VeraSun Energy Corporation, one of America's largest ethanol producers, announced that it closed on its acquisition with ASAlliances Biofuels, LLC for three ethanol plants with a combined annual production capacity of approximately 330 million gallons (1.25 billion liters) per year. VeraSun - August 21, 2007.

    Fujitsu develops a biodegradable laptop chassis from corn-starch bioplastic. The material reduces carbon dioxide emissions by 15% compared to a chassis made from petroleum-based plastics. CNET Asia - August 20, 2007.

    India's Rana Sugars Ltd has decided to set up a new plant for producing ethanol in Uttar Pradesh with an estimated investment of €9 to 10.9 (US$12.2 to 14.7). The facility will have a capacity of 180,000 liters per year and will generate, besides ethanol, 26MW of carbon-neutral power from bagasse. Economic Times India - August 20, 2007.

    Prominent pro-democracy activists staged a rare protest in Myanmar's biggest city Sunday, marching against a massive recent fuel price hike. "We are staging this performance to reflect the hardship our people are facing due to the government's fuel price hike," said Min Ko Naing, a leader of the 88 Generation Students' Group. Myanmar's ruling military junta imposed a surprise 100 percent hike on fuel at state-owned gas stations on Wednesday. The move was followed by increases in bus fares and commodity prices. The Star - August 19, 2007.

    Canada's Cavendish Farms, one of the country's largest food processing companies is to build a biogas plant to recycle spent cooking oils, starch and sludge from its waste-water plant to fuel its potato processing operation. Use of the carbon-neutral biofuel will limit the amount of bunker C fuel oil currently in use by the company. The plant, expected to be ready for operation by next fall, has received a $14-million loan from the Province of Prince Edward Island. CBC - August 18, 2007.

    Basin Electric Power Cooperative told a U.S. Senate Energy Appropriations subcommittee that it is looking into capturing carbon dioxide from its Antelope Valley Station and sell it for enhanced oil recovery in the Williston Basin. Carbon capture technologies have not yet been applied to a power plant that uses lignite, or even subbitumious coal. The trial would be the first one to do so in the Midwest. Bismarck Tribune - August 17, 2007.

    The BBC World Service's current 'One Planet' programme focuses on revolutionary technologies and research that uses a next-generation of GM crops as factories for the production of new pharmaceuticals, green products and alternatives to petroleum-based chemicals. One Planet - August 16, 2007.

    Germany's Biogas Nord has been commissioned to construct a large multi-feed biogas plant with a capacity of 2.8 MW of electrical power in Romania. The value of the order is approximately €3.5 million. The plant will be built in the Transylvanian region close to the county town of Oradea. Interestingly, a synergy will be created by coupling the facility to the construction of a biodiesel plant. In so doing, the waste products resulting from the production of biodiesel, such as rapeseed pellets and glycerin, will be brought to the biogas plant as substrates. Ad-Hoc News - August 16, 2007.

    The University of Western Ontario's Research Park at Sarnia has received $10-million in funding for the development of biofuel technologies. The funds will be used for the creation of the 'Ontario Bioindustrial Innovation Centre' at the University, including the addition of a commercialization centre with incubator suites, laboratory equipment, pilot plant space and space for startup companies. The Observer - August 16, 2007.

    Philippine Bio-Sciences Co., Inc. (PhilBio) and its Clean Development Mechanism subsidiary in Cebu, has told the Central Negros Electric Cooperative (Ceneco) that it will soon open a 10 megawatt biogas plant in Cebu. According to the company, under current conditions electricity generated from biogas is around 20% less costly than that generated from fossil fuels. Philippine Bio-Sciences - August 15, 2007.

    Scientists, economists and policy experts representing government and public institutions from more than 40 countries will exchange the latest information on economic and technology opportunities at the U.S. Department of Agriculture's "Global Conference on Agricultural Biofuels: Research and Economics", to be held Aug. 20-21 in Minneapolis. USDA ARS - August 14, 2007.

    A company owned by the Chinese government has expressed interest in investing up to 500 million US dollars in a biofuel project in Indonesia. The company is planning to use jatropha as its raw material and is targeting an annual output of around 1 million tons. Forbes - August 13, 2007.

    Virgin Atlantic, Boeing and General Electric are within weeks of selecting the biofuel for a flight demonstration in the UK early next year. The conversion of biomass via the Fischer-Tropsch process is no longer amongst the biofuel candidates, because the process has already been demonstrated to work. Ground testing of the chosen fuel in a development engine at GE is expected to begin in October-November. The limited flight-test programme will involve burning biofuel in one GE CF6-80C2 engine on a Virgin Boeing 747-400. Flight Global - August 13, 2007.

    Japan's Economy, Trade and Industry Ministry said Saturday it plans to introduce a new preferential tax system in fiscal 2008 aimed at promoting a wider use of biofuel, which could help curtail greenhouse gas emissions. Under the envisaged plan, biofuel that has been mixed with gasoline will be exempt from the gasoline tax--currently 53.8 yen per liter--in proportion to the amount of biofuel included. If blended with diesel oil, biofuel will be free from the diesel oil delivery tax, currently 32.1 yen per liter. Daily Yomiuri - August 13, 2007.

    Japan's Economy, Trade and Industry Ministry said Saturday it plans to introduce a new preferential tax system in fiscal 2008 aimed at promoting a wider use of biofuel, which could help curtail greenhouse gas emissions. Under the envisaged plan, biofuel that has been mixed with gasoline will be exempt from the gasoline tax--currently 53.8 yen per liter--in proportion to the amount of biofuel included. If blended with diesel oil, biofuel will be free from the diesel oil delivery tax, currently 32.1 yen per liter. Daily Yomiuri - August 13, 2007.

    Buenos Aires based ABATEC SA announces the release of a line of small biodiesel plants with modular design, high temperature reaction for the best yield, to produce from 50 to 1000 gal/day (190 to 3785 liter/day) of high quality methylester and valuable glycerol. PRWeb - August 10, 2007.

    Vegetable growers in North Queensland are trying to solve the problem of disposing of polyethylene plastic mulch by using a biodegradable, bioplastic based alternative. Trials are a collaboration of the Queensland Department of Primary Industries with the Bowen District Growers Association. Queensland Country Life - August 8, 2007.

    Hawaii's predominant utility has won approval to build the state's first commercial biofuel plant. It is the first substantial new power generator that Hawaiian Electric Co. has added in 17 years. HECO will build the $142.3 million facility at Campbell Industrial Park on Oahu beginning early next year, and expects to begin commercial operation in mid-2009. It will run exclusively on fuels made from ethanol or biodiesel. Star Bulletin (Honolulu) - August 8, 2007.

    PetroSun Inc. announced today that it conducted its initial algae-to-biofuel program held at Auburn and Opelika, Alabama. The company intends to hold a series of these programs during August and September with biodiesel refiners and firms that are researching the use of algal oil as a potential feedstock for jet fuel production. MarketWire - August 8, 2007.

    To encourage Malaysia's private sector to generate energy from biomass resources, national electricity company Tenaga Nasional Bhd (TNB) has increased the purchase price of electricity produced from palm oil biomass waste to 21 sen per kilowatt hour from 19 sen now. According to Minister of Enegry, Water and Communications, Datuk Seri Dr Lim Keng Yaik the new price structure, under the Renewable Energy Power Purchase Agreement (REPPA), will be implemented immediately. Such projects are eligible for the Clean Development Mechanism. Under the 9th Malaysian Plan, the country's government aims to achieve the installation of 300MW and 50MW of grid-connected electric power from renewable energy sources in Peninsular Malaysia and Sabah, respectively. Bernama - August 7, 2007.

    Aspectrics, which develops encoded photometric infrared and near infrared spectroscopy, will be launching a new range of biofuels analyzers designed to meet the demands of scientists and analysts to carry out biodiesel quality control and analyze biodiesel blend percentages in real time. Bioresearch Online - August 7, 2007.

    Irish start-up Eirzyme has secured a €10m investment from Canadian company Micromill System. The new company will produce low-cost enzymes to convert biological materials such as brewers' grains into bioethanol and biogas. RTE - August 6, 2007.

    Imperium Renewables says it has a deal to provide Royal Caribbean Cruises with biodiesel. The Seattle-based biodiesel maker, which is scheduled to inaugurate its Grays Harbor plant this month, will sell the cruise line 15 million gallons of biodiesel in 2007 and 18 million gallons annually for four years after that. The Miami-based cruise line has four vessels that call in Seattle. It is believed to be the single-largest long-term biodiesel sales contract to an end user in the U.S. Seattle Times - August 5, 2007.


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Wednesday, August 22, 2007

Canada's government invests $1 million in 12 biofuel projects in Quebec

Canada's new government announced it is investing $992,563 in 12 projects designed to help the nascent biofuels industry in Quebec. Through the Biofuels Opportunities for Producers Initiative (BOPI), organizations will receive funding to conduct feasibility studies and develop business plans for biofuel projects.

BOPI is a two-year $20 million commitment by Canada's new government designed to provide farmers and rural communities with opportunities to participate in, and benefit from, increased Canadian biofuels production. The initiative helps agricultural producers and others develop sound business proposals, as well as undertake feasibility or other studies to support the creation and expansion of biofuel production capacity. It is delivered through the industry councils in each province and territory that administer Agriculture and Agri-food Canada's Advancing Canadian Agriculture and Agri-Food Program.

On July 5, 2007, Prime Minister Harper announced that the government will provide up to $1.5 billion over nine years to support the production of renewable fuels. In addition, since coming to office, Canada's New Government has announced it will invest $500 million in biofuels and bio-products initiatives to assist farmers and rural communities to seize new market opportunities in the bioeconomy (earlier post).

Canada aims for a 5 percent average renewable fuel content in transportation fuels by 2010 and intends to regulate a 2 percent requirement for renewable content in diesel fuel and heating oil by 2012.

Small projects
Funding under BOPI for Quebec is provided through the Conseil pour le developpement de l'agriculture du Quebec (CDAQ). The 12 selected projects include:
  • $300,000 to the Federation des producteurs de bovins du Quebec to develop engineering phases leading to the construction of an integrated facility for processing slaughter and dead animal by-products into biofuel.
  • $187,808 to Nutrinor, Cooperative agroalimentaire du Saguenay, Lac St-Jean to develop a business plan and required studies for construction of a biodiesel microproduction facility.
  • $108,800 to Societe 9043-3616 Quebec inc. St-Alexis-de-Montcalm - Lanaudiere to develop a feasibility study and business plan for the construction of a biofuel facility from existing infrastructures.
  • $98,393 to Potager Meunier inc., St-Roch-de-L'Achigan - Lanaudiere to develop a feasibility study concerning the construction of a pilot ethanol and by-products production facility from willow crops:
:: :: :: :: :: :: :: :: :: ::

  • $71,561 to the Federation des producteurs de cultures commerciales du Quebec to position grain producers in Quebec and facilitate their uptake of biofuel market opportunities.
  • $70,256 to the Ferme Gaston Roy, Sainte-Marguerite to develop a feasibility study for a biodiesel production unit in the Quebec City region.
  • $42,999 to La Cooperative federee du Quebec, Montreal to contribute to the gathering of information for the preparation of a biofuel development policy and feasibility study for the production of ethanol and biodiesel.
  • $39,375 to Serge Quintal, Saint-Ignace-de-Standbridge to develop a feasibility study and production of a business plan for the construction of a biodiesel production plant.
  • $23,800 to the Syndicat des producteurs de cultures commerciales du Centre-du-Quebec to develop a feasibility study concerning biodiesel production from oilcrops oil.
  • $19,580 to the Institut de recherche et de developpement en agroenvironnement, Ste-Foy to determine the potential for biomass production from various vegetable species and the quality of their ligno-cellulosic complex for ethanol processing.
  • $16,000 to Les Huiles naturelles d'Amérique, Les Cèdres to develop a feasibility study for biofuel production in a small-size facility, Suroît region (in the western Montérégie).
  • $13,991 to Coopérative agricole Profid'Or, Joliette - Lanaudière to develop a feasibility study concerning the construction of an ethanol production facility from sugar beet.
Christian Paradis, Secretary of State for Agriculture announced the investment on behalf of the Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board. He said: "Canada's New Government is helping to ensure that producers are able to participate in and benefit from increased biofuels production in Canada. The renewable energy industry holds great potential for enhancing the economic prosperity of Quebec."

For his part, Mr. Laurent Pellerin, Chair of the Conseil pour le developpement de l'agriculture du Quebec (CDAQ), which administers the BOPI program in Quebec said: "Through their involvement in developing biofuels, Quebec's farm producers have once again shown that they share the environmental concerns of their fellow citizens while exploring new markets,"

Background
The Government of Canada is committed to establishing regulations that will require 5 percent average renewable fuel content in transportation fuels by 2010 and intends to regulate a 2 percent requirement for renewable content in diesel fuel and heating oil by 2012. Agriculture and Agri-Food Canada (AAFC) wants to ensure that these targets are implemented in ways that result in the greatest possible benefit to the agricultural sector, including ownership of biofuels production facilities by agricultural producers.

On July 17, 2006, Canada's New Government announced $10 million in funding for the Biofuels Opportunities for Producers Initiative (BOPI) to be delivered through the industry councils in each province and territory that administer the Advancing Canadian Agriculture and Agri-Food (ACAAF) Program.

Due to the high demand from producers and industry, on March 3, 2007, Canada's New Government announced an additional $10 million in BOPI funding. An additional $3 million was made available last fiscal year to fund additional projects and $7 million is being provided this fiscal year (2007-2008) for new BOPI project proposals, bringing the total up to $20 million over the two fiscal years.

The BOPI, delivered through the industry councils in each province/territory that administer AAFC's ACAAF Program, was developed to help meet this goal. Individual project funding is capped at $300,000 and at least 25 per cent of the project cost must be provided by the industry, of which one third must come from producers.

References:
Conseil pour le développement de l'agriculture du Québec

Biofuels Opportunities for Producers Initiative


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