Today in Biofuels: Researchers pioneer algae-from-wastewater process; China ethanol feedstock shortage; E85 sales up; UK parliamentary committee calls for biofuels moratorium
Submitted by Biofuels Digest Blog
Top Story:
In Virginia, researchers at Old Dominion University have successfully piloted a project to produce biodiesel feedstock by growing algae atop municipal sewage treatment plants. The researchers hope that these algae production techniques could lead to reduced emissions of nitrogen, phosphorus and carbon dioxide into the air and surrounding bodies of water. The pilot project is producing up to 70,000 gallons of biodiesel per year.
Producer News:
In Indiana, a group of Starke County residents group are opposing a 27 Mgy wood waste-based ethanol plant proposed for San Pierre. The developers have applied for a zoning variance from the Board of Zoning Appeals for the $66 million project. The residents group has retained counsel from Legal Environmental Aid Foundation of Indiana.
In California, Primafuel has received a World Economic Forum “Technology Pioneer Award” for innovation in biofuels production and distribution infrastructure, while John Rivera of US Sustainable Energy received an honorary doctorate and an award at the SEIDE conference on Renewable Energy in recognition for his work in biofuels research and development.
International News:
In China, the province of Guangxi said that a cassava (tapioca) shortage may lead it to curtail ethanol production projections for this year, and have cast doubt on the province’s plans to double production by 2010. Provincial officials originally set a production goal of 1 million tons of ethanol but is looking now at a best-case scenario of 200,000 tonnes.
In Jamaica, the Petroleum Corporation of Jamaica said that it is planning to switch from supplying regular unleaded to an E10 blend this year. The energy ministry confirmed that the switch is planned for the second half of the year, and that retrofitting of pumps at gas stations was now underway to enable distribution of the fuel.
In India, the state government in Bihar is protesting a regulation by the national government that ethanol can only be produced at sugar mills if the mills also produce sugar. The state is attempting to revive 12 dormant sugar mills by converting them to ethanol production. Bihar acccounted for less than 2 percent of Indian sugar production in 2007, but has 15 closed mills that have been offered to the market. The government received bids for three of the closed plants from Reliance Industries and Hindustan Petroleum (HPCL). India recently overturned a 1966 ban on the production of ethanol from sugar.
In Nigeria, the government of Nasarawa State has allocated $27 million to improve agricultural production including ethanol processing. The state said that it would construct an Agro Export Conditioning Centre at Keffi and establish a cassava ethanol processing plant at Doma, in conjunction with international investors.
In Poland, biofuels producers threatened to establish roadblocks to the PKN Orlen and Lotos petroleum refineries unless they purchase biofuels from domestic producers. The Association of Domestic Distilleries (ZGP), representing 150 producers, says that the refineries contract for more than 60 [percent of their biofuels from outside of the country. The refineries say that EU rules prevent them from giving price preference to local producers.
Research News:
Soybean reserve stocks have plunged, creating conditions for further biodiesel feedstock price increases, but corn shortages eased in December according to the USDA. For December 2007 compared to December 2006, corn stocks were 10.3 billion bushels, up 15 percent. Soybean stocks were 2.33 billion bushels, down 14 percent, while wheat stocks fell 14 percent to 1.13 billion bushels.
In Iowa, the state’s Renewable Fuels Association said that E85 sales increased 48 percent in the 3rd quarter of 2007, compared to the corresponding quarter in 2006. Total sales for the quarter were 941,547 gallons from 68 E85 stations. The figures, which represent 15 gallons per day per station, continue to underline a lack of appeal of E85 among drivers, although Iowa’s station owners increased E85 availability in the fourth quarter to 79 stations.
Policy and Policymakers:
In England, the Royal Society published a 90-page report titled ‘Sustainable biofuels: prospects and challenges’, which made postive comments about the potential of biofuels in greenhouse gas emission reductions, but called for a common set of sustainability criteria to be established globally. The report warned against “a risk that we may become locked into inefficient and potentially environmentally harmful biofuels supply chains.” Tim Yeo, chairman of the House of Commons Environmental Audit Committee (EAC) said “Biofuels can reduce greenhouse gas emissions, but at present most biofuels have a detrimental impact on the environment overall,” and his committee called for a moratorium on biofuels.
Consumer and Fleet News:
In Nebraska, the state Ethanol Board was awarded a $55,000 grant to encourage more stations in the state to offer E85. The state currently serves 60,000 flex-fuel vehicles from 38 stations. The board established one-day workshops that will cover EPA storage requirements, fuel tax incentives, safety training, and E85 marketing and brand awareness. The Nebraska Department of Economic Development will partly fund the grant.
Financial News:
The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, fell 0.72 percent Friday to close at 116.91, down more than 15 percent for the year to date. It was the fourth consecutive day of losses for the Index. Among diversified agribusiness, The Andersons (ANDE) dropped 0.68 percent to close at $44.05, while Aventine Renewable Energy (AVR) led the decliners among mid cap ethanol stocks, down 2.02 percent to close at $9.23. Among small caps, Xethanol (XNL) rose 5.41 percent to $0.78 while Environmental Power (EFG) tumbled 10 percent to $4.14. For the day, declines led advances 4 to 1.
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