Today in Biofuels: US intelligence chief says access to energy outranks terrorism as security threat; European Commission report says cost of biofuels outweighs the benefits; GM introduces flex-fuel Hummer
Submitted by Biofuels Digest Blog
Top Story:
The US National Intelligence Director said that access to energy outranked Al-Queda as a US national security threat. Mike McConnell, interviewed in The New Yorker, when asked if Al-Queda was the greatest threat to American security said “No, no, no, not at all. Terrorism can kill a lot of people, but it can’t fundamentally challenge the ability of the nation to exist….our issue going forward is more engagement with the world in terms of keeping it on a reasonable path, so another ism doesn’t come along and drive it to one extreme or another. And we have to have some balance in terms of equitable distribution of wealth, containment of contagious disease, access to energy supplies, and development of free markets. There are national security ramifications to global warming.”
Producer News:
In Colorado, BioFuel Energy said that the start of operations at its two ethanol plants would be delayed to the end of the second quarter, due to building material and labor shortages. The company said that total project cost for its plants in in Wood River, Nebraska and Fairmont, Minnesota is between $313 and $323 million. Each plant will have 115 Mgy in corn ethanol production capacity.
In West Virginia, the state Development Authority gave preliminary approval to a $5 million loan to Kanawha Biodiesel for its plant in Institute. The company has licensed a proprietary biodiesel production process from its parent company, Emerald BioFuels.
International News:
In Australia, a researcher at CSIRO, the national science agency, has warned Australian state governments against imposing ethanol mandates. The warning followed the imposition of an E2 mandate by New South Wales, scheduled to increase to E10 in 2011. David Lamb said that mandates in the US have encouraged heavy investment in ethanol, and he attributed the food shortage in Mexico and the doubling of the price of tortillas as a consequence.
In Japan, a 0.2 Mgy rice ethanol plant in Nigata, the country’s first ethanol facility, has been delayed until March 2009. The Japanese government is paying half of the $15 million construction cost for the facility, which will be managed by the National Federation of Agriculture Co-operative Associations (Zen-Noh). The plant will use non-food rice.
In China, Tiger Ethanol said it will build a sugar refinery and sugar beet ethanol facility in Xinjiang province. The plant will reach a capacity of 6 Mgy before the end of the first year of production, and will initially use corn as a feedstock but will convert to sugar beets in 2009. The plant will have a capacity of 25 Mgy by 2012.
In Kenya, the Green Africa Foundation said that the EU decision to focus its biofuels target on sustainable biofuels will help, not hurt, the growth of the African biofuels industry. Kenyan producers have focused on jatropha cultivation in Nyanza, Kitui and Eastern Province where pilot programs are already in place. The provinces suffer from severe forest degradation and jatropha is being used to stabilize forest as well as produce farm income.
Research News:
In Illinois, researchers at the National Center for Agricultural Utilization say that pennycress is a viable biofuel feedstock. The researchers note that the plant, known also as stinkweed or frenchweed, yields 2,000 pounds of oilseed per acre with 36 percent oil content, and is grown off-season from corn and soybean.
Policy and Policymakers:
The European Commission’s Joint Research Centre has drafted a study that said that increasing the use of biofuels in Europe would incur costs of $50-$100 billion that “will almost certainly outweigh the benefits.” The study also says that it is not possible to say whether “the EU 10 per cent biofuel target will save greenhouse gas or not.” The 10 percent target was proposed last year as part of an overall plan to cut greenhouse gas emissions in 2020 by 20 percent (from 1990 levels).
Consumer and Fleet News:
In Michigan, General Motors introduced a “green” Hummer HX, 6-cylinder concept car which is compatible with E85. GM is introducing 16 new hybrid or flex-fuel models over the next four years.
In Illinois, Dominick’s grocery stores will convert its 428 truck fleet to B20 biodiesel. The company, which operates 99 stores across the Midwest, said that it expects to reduce its greenhouse gas emissions by more than 500 tons per year as a result of the move.
Financial News:
Greentech Media said that venture capital invested $750 million in biofuels feedstocks and technologies in 2007 led by the $70 million investment in Amyris synthetic biofuels. Overall, VC investment in renewable energy increased by 50 percent to $3.4 billion.
The Biofuels Digest Index™, a basket of public biofuels stocks, fell 3.04 percent to 116.91 on concerns over the economy and the effect of rising commodity prices on ethanol margins. Every stock in the Index was down or flat in Thursday’s trading, with sector giant Archer Daniels Midland (ADM) down 2.86 percent to $41.16 leading the downward trend. Among mid cap ethanol stocks, Pacific Ethanol (PEIX) plummeted 10.,24 percent to $5.52. Among small caps, Nova Biosource Fuels (NBF) fell 5.98 percent to $2.20 despite the announcement of new marketing initiatives, while Better Biodiesel (BBDS.OB) tumbled 13.48 percent to $0.77. Green Energy Resources (GRGR.PK) was able to hold at $0.13 for the day.
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