Today in Biofuels: 13 US news papers link biofuels to “chronic hunger, malnutrition and starvation; Cuba turns to biofuels as anti-biofuels Castro exits; ex-Cuban leader led global effort to link biofuels to hunger
Submitted by Biofuels Digest Blog
Top Story:
Anti-biofuels sentiment continues to gain traction in the wake of two articles published in Science magazine questioning the emissions benefits of ethanol. An editorial by David Ridenour of the National Center for Public Policy Research, linking biofuels to higher retail food prices in the US, and “chronic hunger, malnutrition and starvation” in the poverty-stricken nations of Africa and Southeast Asia, has been widely syndicated in the United States.
The Raleigh News & Observer, the Sacramento Bee, the Fresno Bee, the Billings Gazette, the Washington Tri-City Herald, the Press of Atlantic City, the Bellingham Herald, the Anchorage Daily News, and Hilton Head Island Packet.the Pittsburgh Tribune-Review, the Oakland Tribune, the Alameda Times-Star and the Argus have run the story so far.
Producer News:
In Arkansas, the joint venture between Tyson Foods and ConocoPhillips to produce biodiesel from beef tallow has increased capacity from an initial 1.5 Mgy to 7.6 Mgy. Tyson’s alternative fuel joint venture, Dynamic Fuels, which will convert Tyson byproducts into renewable synthetic jet fuel, is schedule to commence production in 2010 in Louisiana.
In Pennsylvania, East Coast Energy Solutions has reduced its list of candidate locations for its planned 40 Mgy ethanol plant to five finalists. Three of the finalist locations are in Warren County, in Phillipsburg, Greenwich Township and White Township. Rail service is said to be a key factor in final selection of what is expected to be a 30-acre site.
In Montana, AE Biofuels has commenced construction of a cellulosic ethanol commercial demonstration facility in Butte. The plant will use switchgrass, grass seed straw, small grain straw, and corn stalks alone and in combination with a variety of traditional starch and sugar sources at its 9,000 square foot pilot plant facility. The plant is expected to be operational by June 2008, using enzyme technology acquired from Renewable Technology in 2007.
In New York, attendees at the Biodiesel Finance & Investment Summit said that they expect numerous biodiesel plant closings, consolidations and mergers in the next 18 months as the industry copes with increased feedstock prices and tight capital supply. Experts predicted that companies such as Renewable Energy Group, which holds 27 percent of US biodiesel market share, will target biodiesel plants producing 20 - 30 Mgy that are too big for local markets but too small to achieve economies of scale.
International News:
In Cuba, the potential to produce between 2 billion and 3.2 billion gallons per year of sugar cane ethanol has been projected by industry analysts. Cuba is transitioning from the 49-year rule by Fidel Castro to the leadership of biofuels supporter Raul Castro. Fidel Castro blocked a proposed expansion into Cuba by Archer Daniels Midland in the 1990s. Cuba recently began overhaul of its 17 ethanol refineries last year.
In China, Gushan Environmental Energy announced agreements to acquire land in Chongqing and Hunan for biodiesel operations. Capacity was not announced for the proposed 11-acre sites, but they are consistent with mid-size biodiesel plant operations in the 20-50 Mgy range.
In Australia, Macquarie Oil Company has commenced construction of a 1.3 Mgy biodiesel plant in Cressy, Tasmania. The plant will be the first in Tasmania, and will use poppy seeds, mustard, and linseed as feedstock. The use of exotic feedstocks, instead of commodities such as palm or canola oil which have become prohibitively expensive, are key to making the plant commercially viable.
Research News:
RNCOS has released its Asia Pacific Biofuel Market Forecast, and projected that the global ethanol business would achieve a 14.7 percent compound annual growth rate in market value between 2006 and 2016. The reports also projects a 26.4 billion gallon global ethanol market by 2014, but projected a compound annual growth rate of 2.51 percent in China for the 2007-2015 period, and 2 percent in India.
Policy and Policymakers:
In Iowa, the new state biofuels bill will include a provision to add tax incentives for biodiesel retail sales. The bill proposes a 3-cents- per-gallon tax credit for B2-B5 biodiesel blends, 7.5 cents per gallon for B5 to B10, 15 cents per gallon for B10 to B20 and 30 cents per gallon for B20 and above blends. Members of the Iowa Soybean Association said that increasing tax incentives for higher biodiesel blends is a top priority for the association in the 2008 legislative session.
Consumer and Fleet News:
In New York, Magellan Midstream Partners and Buckeye Partners said that they are investigating a 1700-mile, $3 billion ethanol pipeline from the Midwest that would take several years to construct. It was not revealed whether the proposed pipeline will connect the midwest to both the east and west Coasts, but the proposed pipeline length is consistent with serving high-demand east coast markets initially. The companies said they would complete their feasibility assessments this year.
In Mississippi, the state’s first E85 station will open in Newton this week, paired with an ice cream museum at the historic Ford’s Fuel location. Station owners say that their goal is to heighten awareness of the Mississippi agricultural industry, and will open this week with an 85-cent ethanol promotion rate on the first morning of sales, followed by $1.85 ethanol on the first afternoon.
Financial News:
The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, gained 2.70 percent Tuesday to close at 127.26 as strong gains on ethanol stocks marked the opening of weekly trading. For the day, diversified agribusiness Archer Daniels Midland (ADM) rose 2.79 percent to close at $45.36.
Among ethanol stocks, US BioEnergy (USBE) gained 5.05 percent to close at $7.90, while Pacific Ethanol (PEIX) rose 3.78 percent to finish the day at $6.04. Among small caps, Bluefire Ethanol (BFRE.OB) was up 3.22 percent to $3.85, while Green Plains Renewable Energy (GRRE) lost 2.73 percent to close at $9.25. For the day, advances led declines 6 to 5.
Is ethanol part of our future? We want to hear your thoughts. Register on Ethanol Blog now and get published within minutes. Before posting, it is recommended that you review our posting guidelines.
