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    The Iowa State University's Extension Bioeconomy Task Force carried out a round of discussions on the bioeconomy with citizens of the state. Results indicate most people see a bright future for the new economy, others are cautious and take on a distanced, more objective view. The potential for jobs and economic development were the most important opportunities identified by the panels. Iowa is the leading producer of corn based ethanol in the US. Iowa State University - June 16, 2007.

    Biofuel producer D1 Oils Plc, known for establishing large jatropha plantations on (degraded land) in Africa and Asia, said it was in advanced talks with an unnamed party regarding a strategic collaboration, sending its shares up 7 percent, after press reports linking it with BP. Firms like BP and other large petroleum companies are keen to secure a supply of biofuel to meet UK government regulations that 5 percent of automotive fuel must be made up of biofuels by 2010. Reuters UK - June 15, 2007.

    Jean Ziegler, a U.N. special rapporteur on the right to food, told a news briefing held on the sidelines of the U.N. Human Rights Council that "there is a great danger for the right to food by the development of biofuels". His comments contradict a report published earlier by a consortium of UN agencies, which said biofuels could boost the food security of the poor. Reuters - June 15, 2007.

    The county of Chicheng in China's Hebei Province recently signed a cooperative contract with the Australian investment and advisory firm Babcock & Brown to invest RMB480 million (€47.2/US$62.9 million) in a biomass power project, state media reported today. Interfax China - June 14, 2007.

    A new two-stroke ICE engine developed by NEVIS Engine Company Ltd. may nearly double fuel efficiency and lower emissions. Moreover, the engine's versatile design means it can be configured to be fuelled not only by gasoline but also by diesel, hydrogen and biofuels. PRWeb - June 14, 2007.

    Houston-based Gulf Ethanol Corp., announced it will develop sorghum as an alternative feedstock for the production of cellulosic ethanol. Scientists have developed drought tolerant, high-yield varieties of the crop that would grow well in the drier parts of the U.S. and reduce reliance on corn. Business Wire - June 14, 2007.

    Bulgaria's Rompetrol Rafinare is to start delivering Euro 4 grade diesel fuel with a 2% biodiesel content to its domestic market starting June 25, 2007. The same company recently started to distributing Super Ethanol E85 from its own brand and Dyneff brand filling stations in France. It is building a 2500 ton/month, €13.5/US$18 million biodiesel facility at its Petromidia refinery. BBJ - June 13, 2007.

    San Diego Gas & Electric (SDG&E), a utility serving 3.4 million customers, announced it has signed a supply contract with Envirepel Energy, Inc. for renewable biomass energy that will be online by October 2007. Bioenergy is part of a 300MW fraction of SDG&E's portfolio of renewable resources. San Diego Gas & Electric - June 13, 2007.

    Cycleenergy, an Austrian bioenergy group, closed €6.7 million in equity financing for expansion of its biomass and biogas power plant activities in Central and Eastern Europe. The company is currently completing construction of a 5.5 MW (nominal) woodchip fired biomass facility in northern Austria and has a total of over 150 MW of biomass and biogas combined heat and power (CHP) projects across Central Europe in the pipeline. Cycleenergy Biopower [*.pdf] - June 12, 2007.

    The government of Taiwan unveils its plan to promote green energy, with all government vehicles in Taipei switching to E3 ethanol gasoline by September and biofuel expected to be available at all gas stations nationwide by 2011. Taipei Times - June 12, 2007.

    A large-scale biogas production project is on scheme in Vienna. 17,000 tonnes of organic municipal waste will be converted into biogas that will save up to 3000 tonnes of CO2. 1.7 million cubic meters of biogas will be generated that will be converted into 11.200 MWh of electricity per year in a CHP plant, the heat of which will be used by 600 Viennese households. The €13 million project will come online later this year. Wien Magazine [*German] - June 11, 2007.

    The annual biodiesel market in Bulgaria may grow to 400 000 tons in two to three years, a report by the Oxford Business Group says. The figure would represent a 300-per cent increase compared to 2006 when 140 000 tons of biodiesel were produced in Bulgaria. This also means that biofuel usage in Bulgaria will account for 5.75 per cent of all fuel consumption by 2010, as required by the European Commission. A total of 25 biofuel producing plants operate in Bulgaria at present. Sofia Echo - June 11, 2007.

    The Jordan Biogas Company in Ruseifa is currently conducting negotiations with the government of Finland to sell CER's under the UN's Clean Development Mechanism obtained from biogas generated at the Ruseifa landfill. Mena FN - June 11, 2007.

    Major European bank BNP Paribas will launch an investment company called Agrinvest this month to tap into the increased global demand for biofuels and rising consumption in Asia and emerging Europe. CityWire - June 8, 2007.

    Malaysian particleboard maker HeveaBoard Bhd expects to save some 12 million ringgit (€2.6/US$3.4 million) a year on fuel as its second plant is set to utilise biomass energy instead of fossil fuel. This would help improve operating margins, group managing director Tenson Yoong Tein Seng said. HeveaBoard, which commissioned the second plant last October, expects capacity utilisation to reach 70% by end of this year. The Star - June 8, 2007.

    Japan's Itochu Corp will team up with Brazilian state-run oil firm Petroleo Brasileiro SA to produce sugar cane-based bioethanol for biofuels, with plans to start exporting the biofuel to Japan around 2010. Itochu and Petrobras will grow sugarcane as well as build five to seven refineries in the northeastern state of Pernambuco. The two aim to produce 270 million liters (71.3 million gallons) of bioethanol a year, and target sales of around 130 billion yen (€800million / US$1billion) from exports of the products to Japan. Forbes - June 8, 2007.

    Italian refining group Saras is building one of Spain's largest flexible biodiesel plants. The 200,000 ton per year factory in Cartagena can handle a variety of vegetable oils. The plant is due to start up in 2008 and will rely on European as well as imported feedstocks such as palm oil. Reuters - June 7, 2007.

    The University of New Hampshire's Biodiesel Group is to test a fully automated process to convert waste vegetable oil into biodiesel. It has partnered with MPB Bioenergy, whose small-scale processor will be used in the trials. UNH Biodiesel Group - June 7, 2007.

    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.


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Saturday, June 16, 2007

California adopts 10 percent ethanol blend, major boost to biofuels

Gasoline sold in California will include up to 10 percent ethanol, state air managers have decided, a move the renewable fuels industry says will shift the burgeoning ethanol market into high gear. California is the world's fifth largest economy and the largest consumer of transport fuels in the United States.

The California Air Resources Board adopted a resolution updating the predictive model for gasoline reformulation. All California refineries making gas sold in the state will have to blend 10 percent ethanol into their gas to meet new fuel standards set by Gov. Arnold Schwarzenegger starting Dec. 31, 2009.
Today's decision by the Air Resources Board is an important step toward diversifying California's fuel supply with alternative and, in this instance, renewable fuels. While many alternative fuels exist in the market, ethanol is one that can be blended into today's gasoline with no change to our current cars. This action allows fuel providers to blend up to 10 percent ethanol into gasoline, while still ensuring we're meeting California's tough air quality standards. - California Governor Arnold Schwarzenegger
Industry groups said the ruling will almost double demand for the biofuel in California, which last year used about 1 billion gallons (3.8 billion liters) of ethanol, or nearly one-fifth of the total consumed across the United States.

Blending more ethanol into gasoline will improve air quality in California and reduce dependency on foreign oil. The decision blends in with Governor's Schwarzenegger's Low Carbon Fuel Standard (LCFS) executive order. The goal of the LCFS is to ensure that the mix of fuel sold in California market deliver, on average, lower greenhouse gas (GHG) emissions. By 2020, the LCFS is expected to produce at least a 10 percent reduction in the carbon content, replace 20 percent of all on-road fuels with lower carbon alternatives, and more than triple the size of the state's renewable fuels market.

Boost to biofuels market
"Once the market starts to fall in line like this, it shows the demand is there and is growing," said Bruce Scherr, CEO of Informa Economics Inc., a Memphis-based consulting firm specializing in renewable fuels. A handful of other states - including Connecticut, Minnesota and Hawaii - have mandates for the use of 10 percent ethanol, or E-10, according to the Renewable Fuels Association.

A surge in demand will be created as large states like California, Texas and New York roll out legislation forcing gas stations to sell a more environmentally friendly mix, analysts said. That growth is aided by the Energy Policy Act of 2005, which gives small refiners a federal tax credit for using the biofuel:
:: :: :: :: :: :: :: :: ::

"While many alternative fuels exist in the market, ethanol is one that can be blended into today's gasoline with no change to our current cars," Schwarzenegger commented. "It is critical that government continue reducing barriers so that alternative fuels can increasingly penetrate our transportation fuels markets.

If refineries still cannot meet clean air standards with 10 percent ethanol in their fuel mix, they can reduce emissions from other sources by donating money to programs that take polluting vehicles off the road, among other alternatives, said board spokesman Dimitri Stanich.

California's decision may have an impact on global ethanol producers like Brazil and other countries in Latin America, who export to the United States. The biofuels they produce are more efficient and less costly than corn based ethanol, the main biofuel used today in the U.S. In March, the United States and Brazil signed a biofuels cooperation agreement, but President Lula did not succeed in making the US abandon its US$0.54/gallon tariff on imported ethanol (earlier post).

In March, the United States imported 629,000 barrels of ethanol mainly from Latin America (previous post).

More information:
California Environmental Protection Agency, Air Resources Board: Groundwork Begun for Greater Use of Ethanol in California's Gasoline - June 15, 2007.

USNewswire: Gov. Schwarzenegger Issues Statement on Air Resources Board's Adoption of Measure in Support of Ethanol, Renewable Transportation Fuel - June 15, 2007.

California Renewable Fuels Partnership
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UK's largest biomass plant approved, biomass task force created


Scotland's Environment Minister Mike Russell has announced plans to boost wood supplies for renewable energy production at a plant in Lockerbie and throughout Scotland. He unveiled proposals to set up an industry-wide task force to tackle the issue when he visited the biomass station at Steven's Croft. Meanwhile, farmers in southern Scotland have become aware of the bright prospects for bioenergy and have begun turning over large slices of their land to growing willow, a short rotation coppice energy crop.

The new biomass project is the largest of its kind in the United Kingdom. The £90 (€133/US$178) million E.ON facility is expected to be fully operational by the end of the year. It will be capable of performing the following tasks:
  • generating enough electricity to power 70,000 homes
  • providing over 300 jobs in the forestry and energy farming sector
  • displacing the emission of 140,000 tonnes of greenhouse gases each year
E.ON operates three coal fired power stations in the UK (Ratcliffe, Kingsnorth and Ironbridge), and in al three of them biomass is co-fired. The type of fuels that are being burnt include cereal pellets, olive cakes and wood.

According to the recently published UK Biomass Strategy (earlier post), the total amount of wood available to England, Scotland and Wales for use as fuel is set to increase by 55% over the next decade, from 1.1million oven dry tonnes to 1.7million oven dry tonnes.

Task force
The new biomass plant is one of a number of green power projects across Scotland which are fuelled by wood. The increasing demand for timber supplies has prompted Mr Russell to examine how to meet the future needs of the sector. The Minister announced plans for the Forestry Commission Scotland to lead an industry task force to work to balance supply and demand in the long term.

The new task force will consider ways of bringing forward supplies from currently under-utilised sources such as forest residues, short rotation coppice and under-managed woodlands. It will also consider the impact of increased demand for wood fuel on the future balance between supply and demand within the wood processing sector:
:: :: :: :: :: :: :: :: ::

The task force will be led by Forestry Commission Scotland and will include representatives from the renewable energy, wood processing and land management sectors.

The announcement was made during a visit to E.ON's £90 million biomass plant in Lockerbie, the largest of its kind in the UK. Currently, E.ON expects to begin testing the plant after the summer and commission the station by the turn of the year. Overall,

The Forestry Commission Scotland has a number of woodfuel officers around the country who are working with a range of organisations to help develop and demonstrate the benefits of changing to wood fired systems. Already, the Commission has been helping both small and large scale woodfuel projects get under way and by next year is expected to be supplying well over 100,000 tonnes of material for woodfuel. Forestry Commission Scotland also has a contract to provide timber to the woodfuel supplier for the E.ON plant.

Head of Construction at E.ON Adrian Chatterton said “We were delighted to welcome the Minister to Steven’s Croft. When we commission the plant later this year it will be a flagship addition to our fleet.”

During Mr Russell's visit to the area he saw the whole woodfuel process in action from harvesting the timber through to the processing of it at James Jones before it is moved on to the E.ON plant. He also stopped in at the Barony College to discuss forestry training issues.

The Forestry Commission Scotland serves as the Scottish Government's forestry department. It manages 668,000 hectares of national forest land for multiple benefits, including nature conservation, public recreation, timber production, and rural and community development; supports other woodland owners with grants, felling licences, advice and regulation; promotes the benefits of forests and forestry; and advises Ministers on forestry policy.

E.ON is the UK's largest integrated power and gas company - generating, distributing and retailing electricity - and is part of the E.ON group, the world's largest investor-owned power and gas company. It employs around 16,000 people in the UK. E.ON is one of the leading green generators with 20 wind farms located from Cornwall to Northern Ireland. Two of their power stations burn biomass material with the new Steven’s Croft plant set to be the largest of its kind in the UK.

Becoming energy farmers
Given the growing interest for bioenergy, farmers across southern Scotland have already been turning over large slices of their land to growing willow. It is hoped much of it will eventually be used as fuel for the Steven's Croft biomass power station which is nearing completion outside Lockerbie.

The plant requires 220,000 tonnes of fuel a year and it is hoped local willow can provide about 45,000 tonnes.

The latest sowing of the willow crop has been at a six-and-a-half hectare field at Dalscone Farm in Dumfries and more is due to be planted shortly at Stranraer, Kilmarnock and Lockerbie.

Renewable Fuels, the company growing and supplying harvested willow for the station, is expanding its programme for developing energy crop production in Scotland. Contracts manager John Farrell said there was an increasing awareness of the revenue potential of the crop.

Increasingly popular
"Farmers in Dumfries and Galloway are becoming interested and we have already planted in four areas of the south west this spring and several more are in line," he said. A spokesman for the National Union of Farmers Scotland in Dumfries said he was aware that willow was becoming more popular.

"There is potential there and there are certainly fields about the Lockerbie area where it is in," he said. "The siting of the plant in Lockerbie has encouraged some people to try and diversify into that area."

Image 1: simulation of the proposed E.ON plant in Lockerbie. Credit: E.ON.
Image 2: farmers in Scotland have taken up planting short rotation coppice like willow. Credit: BBC.

More information:
Forestry Commission: Minister announces wood fuel task force - June 15, 2007.

E.ON UK: Biomass page.

BBC: Farmers speculate on biomass boom - June 15, 2007.


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