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    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.

    The J. Craig Venter Institute, leading the synthetic biology revolution, is expanding its Bio-Energy Program, seeking a senior scientist to head the new dedicated department. With ongoing research in biohydrogen, cellulosic ethanol, microbial fuel cells, and bacterial nanowires, the Environmental Genomics and Plant Genomics groups within JCVI are working on active components related to bio-energy. NatureJobs - August 5, 2007.

    Polish power and heat firm Praterm has decided to invest 50 to 100 mln zloty (€13.2-26.4 /US$18.1-36.4 mln) by 2013 in biomass production. The company has already bought Bio-Energia, an operator of four biomass heating plants with a total capacity of 14 MW. Wirtualna Polska - August 5, 2007.

    Brazil and Mexico will sign a cooperation agreement to collaborate on the production of ethanol from sugarcane, Gonzalo Mourão of the Brazilian chancellory's Departamento do México, América Central e Caribe said. Brazil's President Lula is on a tour of Central America and is currently in Mexico, after which he will visit Honduras, Nicaragua, Jamaica and Panama. He is set to sign several bilateral agreements on energy and biofuels with these countries. Reuters Brasil - August 4, 2007.

    Evergreen Pulp Inc. announced that it and Diversified Energy Corp. have been selected by the state of California for a $500,000, 36-month renewable energy project that aims to dramatically reduce natural-gas-use residue and natural gas at its Samoa mill. The Public Interest Energy Research Natural Gas Program, a part of the California Energy Commission, awarded four contracts for research, development and demonstration of technologies to replace natural gas with renewable resources, to four applicants from among a pool of 25. The state’s focus for the contracts was for biomass-to-gas and/or hybrid projects specifically addressing industrial and commercial process heating or combined heat and power needs. Eureka Reporter - August 4, 2007.

    Greenline Industries, which designs and builds biodiesel production facilities, and ULEROM, one of Romania's largest agri-business corporations, today announced the formal opening of their largest facility in Vaslui, Romania. The plant will produce some 26.5 million liters (7 mio gallons) per year. The Romanian facility is the 17th example of Greenline's technology featuring waterless wash, computerized, continuous flow and modular construction. PRNewswire - August 1, 2007.

    US Renewables Holdings announced today that it has successfully closed on $475 million of third party capital commitments in its most recent private equity fund, USRG Power & Biofuels Fund II, LP and related vehicles (collectively, "Fund II"), ahead of the fund's original target of $250 million. PRNewswire - August 1, 2007.

    Malaysian palm oil company Kim Loong Resources Bhd has secured European energy trading group Vitol as buyer for all its carbon credits from its planned biogas plant in Kota Tinggi. The biogas facility generates methane from palm oil mill effluent, a waste product. The project is expected to generate over RM2 million (€423,000/US$579,000) of earnings annually. The methane capture and power generation project was registered and approved by the Clean Development Mechanism. The Edge Daily - July 31, 2007.

    GreenHunter Energy, Inc. announces that its wholly-owned subsidiary, GreenHunter BioFuels, Inc., located in Houston, Texas has successfully acquired Air Emission Permits from TCEQ (Texas Commission of Environmental Quality) under TCEQ's Permit by Rule (PBR) programs. These permits open the way for construction of a 105 million gallon per year (mgy) biodiesel facility including a separate but related methanol distillation facility. PRNewswire - July 30, 2007.

    Together with Chemical & Engineering News' Stephen K. Ritter, the journal Environmental Science & Technology sent Erika D. Engelhaupt to Brazil from where she wrote daily dispatches of news and observations about biofuels research. In particular she focuses on a bioenerrgy research partnership between the American Chemical Society, the Brazilian Chemical Society, and the Brazilian Agricultural Research Corporation (EMBRAPA). Check out her blog. Dipatches from Brazil - July 28, 2007.

    Consultation is under way on a £50 million (€74/US$101million) renewable energy plant planned for the South Wales Valleys. Anglo-Dutch company Express Power plans to build a wood-fuelled biomass plant on Rassau Industrial Estate in Blaenau Gwent. The plant will generate an annual 160,000 MWh (Mega Watt hours) of green electricity for Wales from forestry, recycled wood and wood derivatives. ICWales - July 27, 2007.

    The price of New York crude leapt to 77.24 dollar a barrel on Thursday, marking the highest level since August 9, 2006, as keen global demand and tight supplies fuelled speculative buying, traders said. On Wednesday, the US government had revealed that inventories of American crude fell by 1.1 million barrels last week. France24 - July 26, 2007.

    Arriva, one of Europe's largest transport groups is trialling B20 biodiesel for the first time on 75 of its buses. The company is aiming to reduce total carbon emissions by around 14 per cent by using biodiesel as a 20 per cent blend (predominantly be a mixture of sustainable soya products, along with used cooking oil and tallow). The 75 buses in the innovative trial will carry around 130,000 passengers every week. Minimal engineering changes will be required to the fleet as part of the scheme. Arriva - July 26, 2007.

    Marathon Oil Corporation announces that it has completed two more projects adding biodiesel blended fuel at its Robinson and Champaign terminals in Illinois. The terminals now feature in-line ratio blending in order to provide soy-based B-2 (two percent biodiesel) and B-11 (eleven percent biodiesel). Marathon Oil - July 25, 2007.

    Norway-based renewable energy firm Global Green One has agreed to set up a € 101.6 million bioethanol plant in Békéscsaba (southeast Hungary), with more facilities planned for Kalocsa, Szombathely and Kõszeg, the latter of which was already a target for a €25 million plant in May this year. The Békéscsaba plant would process 200,000 tonnes of maize per year, employing around 100 people. The logistics part of the facility would also create 100 jobs. The company expects the factory to generate €65 million in revenues each year. Portfolio - July 25, 2007.


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Saturday, August 18, 2007

European biotech industry releases its policy on biofuels

EuropaBio – the EU association for bioindustries – has released [*.pdf] a consensus response to the 'integrated energy and climate change package' proposal, endorsed by EU Heads of State earlier this year and currently discussed in European Parliament. The association summarizes its policy for first and second generation biofuels as follows.

The available biomass in Europe will need to increase in order to achieve ambitious goals of biofuel use set by the European Union (5.75% in 2010 and 10% in 2020) in a sustainable and competitive way. Cultivating energy crops on set-aside and noncultivated land will contribute, but this will not be sufficient to fulfill all the demand.

The industry says that the output per hectare needs to be increased as well as crop quality that offers more fermentable carbohydrates or higher oil content crops. This can be done via plant science (modern plant breeding techniques and biotechnology) in combination with state-of-the-art application of crop protection.

Another important step to increase the biofuel production is the development of second generation biofuels; this involves the competitive production of biofuels from (hemi)cellulose and organic agricultural waste. Especially industrial biotechnology – mainly (hemi)cellulose degrading enzymes with improved efficiency - will be crucial to obtain this.

Interestingly, the organisation thinks the EU should set a quota that allows farmers from developing countries, where the potential is vast, to export a certain amount of biofuels or feedstocks to the EU, provided they are produced sustainably.
Biotechnology is today one of the most effective and innovative tools we have to attain European targets for biofuel use in a sustainable way. We are all excited about getting to the second generation biofuels, but I would like to underline that in order to facilitate the transition towards second generation biofuels, a market for first generation biofuels is needed, with an appropriate infrastructure and distribution. - Steen Riisgaard, President of Novozymes and Chairman of EuropaBio.
Recommendations
The EuropaBio’s recommendations call for EU initiatives to boost the use of biofuels and advocate a step-by-step approach from the current first generation to more advanced biofuels. Specifically, the industry:
  • calls upon the Member States to implement, as soon as possible, the principle of binding targets for blending biofuels with petrol and diesel
  • supports a change in fuel standards to permit a higher biofuel content in blends of petrol and diesel; and
  • advocates performance based regulation that encourages efficient delivery of biofuels which are most effective in reducing green house gas emissions
In order to harvest the full potential of biofuels, EuropaBio encourages European legislators to follow a similar approach to the USA and China and initiate policy measures which will allow second generation biofuels to become a viable, commercial business within the next 4-6 years:
:: :: :: :: :: :: :: :: :: :: :: ::

This should include support to further research in second generation technologies as well as support for demonstration projects.

Develop the integrated diversified biorefinery - an integrated cluster of industries, using a variety of different technologies to produce chemicals, materials, biofuels and power from biomass raw materials - will be a key element in the future.

EuropaBio encourages European legislators to establish a certification system for sustainable production and use of biofuels in order to ensure that biomass production always complies with good agricultural and labour practices and ensures a good and responsible balance between food and non-food crop production, complying with existing international standards and agreements.

Robust, realistic and coherent sustainability schemes - to be respected all over Europe, and preferentially worldwide - could help to achieve this.

EuropaBio does not support any unsustainable use of plant material for biofuel production and advocates that the use of biomass for fuel purposes should not jeopardise European and third countries’ ability to secure its people’s food supply, nor should it prevent achieving environmental priorities such as protecting forests, preventing soil degradation and keeping a good ecological status of waters.

Biofuels and Developing Countries

EuropaBio understands that development of biofuels also has a large potential for developing countries. In developing countries the majority of the population often lives in rural areas and subsists on agriculture. Such peoples are more vulnerable to natural disasters such as storms, floods and droughts and all efforts to counteract climate changes will therefore be beneficial. Global warming itself is today, a bigger danger to the biodiversity in these areas.

The development of biofuels will also bring direct opportunities to developing countries because their production will create many local jobs in the value chain from growing raw materials to their actual manufacture.

Industrialised countries must be prepared to set up the right regulatory frameworks with their local counterparts which can support a sustainable development for these countries and prevent unsustainable cutting of rain forests and similar (such as biofuels and sustainable production certification schemes). A realistic quota system where a certain percentage of the biomass has to be produced in the EU could create opportunities for European farmers as well as for developing countries.

Biofuels and GMO plants
The early phase of second generation biofuels will rely on current biomass (mainly crops and wood) and their agricultural residues as well as on improved enzymes and other technologies to make the process more effective. In the longer term horizon, the necessary increase in yield may probably only be achievable with modern plant breeding techniques - including plant biotechnology - and state of the art plant production methods, including the use of modern fertilization and plant protection systems.

As already seen in other parts of the world, modern plant varieties produced by biotechnology lead to far higher and more consistent yields. Also in Europe plant biotechnology can thus optimise land use and increase competitiveness and sustainability of European agriculture. Likewise, modern plant biotechnology may contribute to also grow energy plants in areas with marginal agricultural conditions, such as drought and saline zones or areas with very heterogeneous production conditions (frost, heat, flooding etc.).

This would open unique opportunities for marginal rural areas to play an economic role again in future and contribute to raising their countries Gross Domestic Products (GDP).

References:
EuropaBio: Biofuels in Europe. EuropaBio position and specific recommendations [*.pdf] - June 2007.


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