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    Czech brown-coal-fired power plant Elektrárna Tisová (ETI), a unit of the energy producer ČEZ, could co-fire up to 40,000 tons of biomass this year, the biggest amount in the company’s history, said Martin Sobotka, ČEZ spokesman for West Bohemia. ETI burned more than 19,000 tons of biomass in the first half of 2007. The company’s plan reckoned with biomass consumption of up to 35,000 tons a year. Czech Business Weekly - August 27, 2007.

    PetroSun, Incorporated announced recently that it has formed PetroSun BioFuels Mexico to establish algae-to-biofuel operations in the State of Sonora, Mexico. PetroSun BioFuels Mexico will enter into joint venture agreements to develop algae cultivation farms and extraction plants in Sonora and southern Arizona that will produce algal oil, algae biomass products and excess electricity for the Mexican and U.S. markets. MarketWire - August 27, 2007.

    China's Yunnan Province hopes to reach an annual output of 2 million tons (approx. 417 million gallons) of fuel ethanol by 2010, according to the province's fuel ethanol industry development plan released recently by the Yunnan Economic and Trade Commission, state media report. Interfax China - August 23, 2007.

    Seven companies have teamed up to create Kazakhstan's first Biofuel Association. Its aim is to integrate interested parties for creating favorable conditions to have the country’s biofuel industry developed. An initiator and coordinator of the Association is the National Holding KazAgro, the Agriculture Ministry’s press service informs. KazInform - August 23, 2007.

    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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Monday, August 27, 2007

Kenyan farmers see hope in Virgin's bio-jet fuel test

According to the chief of the United Nations' Food and Agriculture Organisation (FAO), to African scientists and to global natural resource think tanks like the Worldwatch Institute, biofuels offer a historic chance to tackle global poverty and to reach the Millennium Development Goals. If biofuel policies and trade reform are implemented well, the world's poor - the bulk of who can be found in the vast rural areas of the Global South - can benefit by producing fuels for local and international markets.

This opportunity does not go unnoticed in Africa. In Nairobi, Kenya's capital, the local Business Daily pins its hopes on Sir Richard Branson and his Virgin Fuels venture. It writes:
Virgin Atlantic's quest to become the first commercial airline to use biofuels to power its aircraft could be the catalyst needed to realise the potential in Kenya's alternative energy sector. The airline has scheduled a test flight on biofuel early in 2008, less than a year since June when Virgin Atlantic owner Richard Branson committed Sh210 billion towards research into environmentally-friendly energy resources for the next 10 years.
Virgin has been testing different bio-jet fuel types and indicated that in the future biofuel feedstocks may well be sourced from Africa as a way of combining poverty alleviation and greening the airline industry (previous post). The money for the bio-jet fuel, which will come from Branson's airline and rail businesses, is to be invested through Virgin Fuels, a new arm that is focusing largely on biofuel innovations.

The Nairobi based newspaper continues:
Local farmers have started growing biofuel-producing crops like jathropa and rapseed and a breakthrough for Virgin would mean new markets for them. Ms Lorna Omuodo, the director of the Vanilla Jathropa Development Foundation, said it would be an opportunity to improve rural incomes if Virgin pioneers foreign market opportunities for biofuel.
Quoting the director of the Vanilla Jathropa Development Foundation, the potential to engage many farmers in the sector becomes apparent:
Jathropa does well in arid and semi arid areas and this will be a good opportunity to offer those people alternative income. The local industry has potential to benefit at least 12 million people, six million of them directly and the other half indirectly.
If Sir Richard couples the idea of greening the airline industry to sourcing biofuels from the South, he could do more to alleviate poverty than all of the UK's development assistance programmes combined. The Global South has vast untapped resources needed to make biofuels in an efficient and cost-effective manner: land, labor and a suitable climate for a range of promising energy crops (map: land suitability for jatropha, click to enlarge). Of course, such an initiative would require a strong set of social and environmental sustainability policies, investments in research and development in biofuels and African agronomy, and a change in the current trade regime. But in principle these requirements can be met:
:: :: :: :: :: :: :: :: :: ::

Virgin's decision to trial bio-jet fuel comes at a time when the local Kenyan biofuel industry, which is still at its budding levels, has shifted its focus from the basics of growing the raw materials into market opportunities ranging from searching for possible industrial users to how farmers can earn from international carbon trade.

Jathropa, which grows in marginal areas, is the best bet for Kenya as a biofuel raw material. A recent biofuel industry meeting in Nairobi agreed that focus should also be directed to looking for export opportunities.

Virgin has been very active in the biofuels sector. Recently it launched the first biodiesel train in regular operation (earlier post). Virgin Atlantic plans to fly the 747 on biofuels in early 2008 (more here). In an interview, the technical director for the project excluded synthetic biofuels for the trial, because they have already shown to work.

Map: land suitability for rainfed jatropha cropping in Africa - some 1.5 billion hectares are highly to moderately suitable; the bulk of the countries with jatropha potential currently utilizes less than 30% of its potential arable land. Credit: Fair Trade Biodiesel.

References:
Business Daily (Nairobi): Virgin Bid to Use Biofuel Could Boost Energy Sector - 27 August 2007

Biopact: Virgin launches first biodiesel train in Europe - June 07, 2007

Biopact: Virgin Atlantic to fly 747 on biofuels in 2008 - looks to Africa - April 24, 2007


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