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What will gas be selling at by Memorial Day? Anybody’s guess is as good as anybody else’s, but DTN’s Man on the Floor of the CBOT and CME Gary Wilhelmi says the U.S. needs to keep looking for the ultimate replacement for imported energy.

NBB Offers First Biodiesel Fuel Card for Truckers, Fleets

Shell, Virent Energy to Research Sugar-based Gasolines

Motiva to Sell Ethanol from Tampa Terminal Early April

Orion to Convert Texas Mill Facility into Ethanol Plant

Shell, Virent Team on Sugar Biofuels

Distributor to Open 1,000 E85 Retail Sites on East Coast

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Top Story:

The Consumer Federation of America accused the US oil industry of conspiring to create tight markets for oil, with resulting increases in prices. The report said that widespread gasoline availability, falling demand and increasing use of ethanol have not had a price impact because of oil company manipulation of refinery outputs. The Federation said that the “The Federal Trade Commission and others have documented oil industry efforts to consolidate the market and cut excess capacity, which keeps gasoline supplies tight and prices high,” calling the domestic refiners an “oligopoly” that mirrored the oil cartel.

Producer News:

In North Carolina, only two biofuel projects are still moving forward after a series of cancellations due to financing issues have stymied North Carolina’s drive for biofuels leadership. The Clean Burn Fuels 100 Mgy corn ethanol plant and a small ethanol plant in Robeson County by Solv-It Technologies are still in progress, while Xethanol, Kreido Biofuels, East Coast Ethanol, and Agri-Ethanol all cancelled projects due to inability to raise funds. Last August, Virgina Atlantic sued Agri-Ethanol over a $209,000 loan.

In California, Leaf Clean Energy has invested $20 million in Greenline Industries, to facilitate expansion of Greenline’s R&D effort. Leaf Clean, a publicly-traded investment company, said that it expect to complete its investment phase in December 2008 and is shortlisting another 23 companies for potential investments.

International News:

In Brazil, ten ethanol and sugar plants will become operational by 2010 in the state of Paraná, said the Association of Alcohol and Sugar Producers of the State of Paraná (Alcopar). One is expected to launch in 2008, and the remainder in 2010. Capacity was not disclosed. 23 plants are currently active in Paraná.

In Ethiopia, Global Energy completed phase one of its castor crop experiment in Sodo, with seeding commencing next month. Harvest is projected to be 12,000 tons of castor oil worth up to $13 million. Castor is being farmed by 25,000 small African landholders on 7500 hectares in Waletia and Gome.

In Indonesia, the central government imposed a 20 percent tariff on export of crude palm oil, in an attempt to reduce prices in local Indonesia markets. The taxes will be imposed as of April 1, with the base price of CPO increasing to $1196 per tonne. The country has been beset by palm oil inflation caused by rising prices of the commodity.

In the Philippines, the state government of Palawan has allocated 30,000 hectares of land for the growing of jatropha.  Idle land will be used under the agreement signed by PNOC Alternative Fuels.

Research News:

A cattle superfeed was proposed in the pages of Farm and Ranch Guide. Advocates are saying that superfeeds will allow farmers to compete  better in international markets. One of the proposed feedstocks are dry distillers grains from ethanol production, but limited to 30 percent o the overall product.

Policy and Policymakers:

John McCain’s environmental record and policies are profiled in an investors.com article. The article focuses on his conversion to environmentalism after the 2000 elections, and his sponsorship of cap-and-trade legislation in 2003, 2005 and 2007 with Senator Joe Lieberman. The current bill would limit emissions among commercial & industrial users to 2004 levels by 2012 and moved down steadily until 2050. McCain favors an auction of emission certificates in his cap-and-trade proposal.

The United Nations Economic and Social Survey of Asia and the Pacific 2008 (UNESCAP) said that “Higher food prices will most hurt the urban poor and the rural poor who are net food consumers, for whom food is usually the biggest expenditure item. ” But the report said that biofuels can produce income benefits for farmers, jobs, and hold down oil prices. Of the world’s 50 poorest countries, 38 are net importers of petroleum and 25 import all their petroleum, according to the report.  The report also highlights the potential of second-generation biofuels including cellulosic ethanol, jatropha-based biodiesel.

Consumer and Fleet News:

In Puerto Rico, the EPA has  awarded $215,000 to the Polytechnic University of Puerto Rico to convert 61 school buses in the Bayamon school region to lower emissions.

Financial News:

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, fell 1.05 percent to close at 116.30 as diversified  agribusiness continued to weaken.  For the day, Archer Daniels Midland (ADM) fell 1.04 percent to close at $41.94, while The Andersons (ANDE) lost 3.55 percent to finish at 42.67. Among ethanol stocks, Aventine Renewable Energy (AVR) plummeted  7.60 percent to close at $4.86. Along small caps, Green Energy Resources fell a whopping 20.00 percent to close at  $0.12. Overall, declines led advances 2 to 1.

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The National Biodiesel Foundation announced in a news release that it has begun offering a biodiesel fuel card that highlights a network of truck stops that carry biodiesel. Known as the BioTrucker Fuel Card, truckers and fleets pay cash price on all fuel and no fuel transaction fee for biodiesel at in-network truck stops. Shell, Virent Energy to Research Sugar-based Gasolines Motiva to Sell Ethanol from Tampa Terminal Early April Orion to Convert Texas Mill Facility into Ethanol Plant Shell, Virent Team on Sugar Biofuels Distributor to Open 1,000 E85 Retail Sites on East Coast Nova Biosource Completes Funding for Ill. Biodiesel Plant

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Submitted by Biofuels Digest Blog

Top Story:

In the Netherlands, Royal Dutch Shell and Virent Energy Systems announced a 5-year partnership to make biogasoline from a catalytic process from biomass. The Virent Bioforming process uses undisclosed catalysts to convert plant-based sugars into gasoline-resembling hydrocarbons, instead of fermenting into ethanol The process uses non-food feedstocks. Shell did not disclose their investment in the project, but indicated that a demonstration plant for the technology was planned for 2010. Shell biofuel spokesmen said that biogasoline could use existing gasoline infrastructure for marketing and distribution, and that they expected biofuels to provide 10 percent of the global fuel supply by 2030.

Producer News:

In Iowa, Red Rock Renewables won approval for its 110 Mgy corn ethanol plant proposed for a site near Pleasantville. Opponents had criticized the plant’s location, traffic impact , safety plan, and potential for pollution as well as raising issues with water usage. Construction is expected to star later this year.

In Kansas, Orion Ethanol acquired a Texas wet milling plant from Dimmitt Ethanol. The purchase price was $2.5 million. Orion plans to convert the facility to ethanol production, with a total cost of the project estimated at $66 million, compared to more than $130 million for construction of a new dry milling ethanol facility. Orion’s project includes the construction of 60 Mgy of ethanol capacity, a 10 Mgy edible oil extraction plant, a 10 Mgy cellulosic ethanol plant, a 12 Mgy biodiesel facility, and up to 75 MW in wind and methane capacity.

A top engineering executive said that, based on a recently completed US roadshow with 15 major ethanol-related lenders, ethanol development is “dead” until 2009 at the earliest. Bateman Litwin CEO Shuki Raz told Reuters that financing issues and high feedstock prices were the concerns influencing the drying up of capital.

International News:

In India, Petroleum and Natural Gas Minister Murli Deora said that the national government would raise the required ethanol content in gasoline from 5 percent to 10 percent in October. Meanwhile, Indian Finance Minister P Chidambaram, speaking at a conference in Singapore, called the policies of developed nations converting food into fuel “outrageous and must be condemned” and that the world’s poor are feeling the impact of higher food prices. “It is a sign of the lopsided priorities of certain countries that they will resort to measures that will produce fuel at a cheaper cost in order to meet the transport requirements of a section of their population,” he said. He did not offer comments on India’s rapidly expanding capacity to do the same thing.

In Canada, Investeco Capital said that they would invest in cellulosic ethanol producer Woodland Biofuels of Ontario. Investeco said that Woodside’s Catalyzed Pressure Reduction technology have it a material advantage over other cellulosic ethanol producers as well as first-generation biofuels. Woodside recently received $9.8 million from Sustainable Development Technology Canada towards the cost of its demonstration plant, but Investeco’s capital infusion was not disclosed.

In Sweden, Svenska Statoil said that E85 sales increased 180 percent in February over the corresponding period in 2007, to 1.26 million gallons. Sales increased by 4 percent over January 2008. The company operates 280 ethanol stations in Sweden, offering E5 and E85 blends.

Research News:

The Ethanol Promotion and Information Council responded to recent report in a Florida newspaper that US ethanol production had led to Haitian villagers being forced to eat mud pie. In its response, EPIC noted that US corn exports in 2007-08 market year were 2.25 billion bushels, 6 percent more than in 2006-07 and the highest since 1990, and that the largest increase in sales went to Mexico, “one of the very nations that we are supposedly starving to death.” EPIC also noted that US ethanol subsidies, totaling $3 billion, have resulted in a $6 billion reduction in crop price supports and a $15 billion drop in US oil imports. EPIC said that the true reason for rising food prices was rising labor, packaging and fuel costs, and rising wealth and demand from China and India.

Policy and Policymakers:

In California, Pacifica ratified the US Mayors’ Climate Protection Agreement. The agreement, developed by the U.S. Conference of Mayors, includes commitments by US cities and towns to: measure carbon footprints, set emission reduction targets, promote energy efficiency, promote sustainable building practices, increase fuel efficiency in municipal fleets and convert diesel vehicles to biodiesel, and increase recycling rates.

Consumer and Fleet News:

The National Biodiesel Foundation announced the BioTrucker Fuel Card, which gives the cash price (or a discount of up to $0.02) and a waiver on fuel transaction fees at 149 truck stops around the country that sell biodiesel.

In Canada, Student Transportation of Canada will convert 235 of its 1,000 school bus fleet of 1,000 buses to biodiesel. The blend ratio was not disclosed but the company said it expected to generate emission reductions of up to 40 percent from the conversion. STC is the fourth-largest school bus fleet in North America with a total fleet of 5,000 buses and school vehicles in the US and Canada.

Financial News:

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, fell 0.53 percent to close at 117.53 as weakness in larger caps overshadowed a broader advance. For the day, Archer Daniels Midland (ADM) fell 0.75 percent to close at $42.38. Among ethanol stocks VeraSun Energy (VSE) gained 2.10 percent to close at $7.77, while Pacific Ethanol (PEIX) lost 1.09 percent a week before dismal quarterly earnings are expected. Along small caps, Nova Biosource Fuels (NBF) gained 9.42 percent, to $1.51. Overall, advances led declines 6 to 1.

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Alternative Fuel Distributors, Inc. said in a news release that it plans to construct and operate 1,000 convenience stores providing only E85 and other alternative automotive fuels on the East Coast over the next three years. Nova Biosource Completes Funding for Ill. Biodiesel Plant PetroSun Algae Farm to Begin Operations April 1 Focus on Fuels 3-24-08 API Launches Renewable Fuels Credits Data Clearinghouse Renewable Energy Group Withdrawing Plans for IPO CFTC Seeks Comments on OTC Ethanol Futures ClearingChange

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Top Story:General Motors Vice Chairman Bob Lutz said that only “a very narrow portion of the population will make a financial sacrifice to be green. I don’t think we can count on the majority of the American public to make a financial sacrifice….even as gasoline goes to $4 a gallon, you’re still going to see people doing the calculation. How much more do I have to pay for a hybrid system? Lutz was speaking to Jeffrey Ball of the Wall Street Journal.

Lutz added “Ever since CAFE legislation has been in effect, General Motors has improved the efficiency of its truck fleet by 60%, the fuel efficiency of its passenger-car fleet by 100%, and fuel use in the United States has done nothing but go up. So the idea that by legislating 35 miles per gallon, we’re somehow going to use less fuel, it would be the first time that it ever worked, because it inevitably results in people taking their fuel budget and buying a larger car.”

Producer News:In California, Kern County supervisors are expected to vote tomorrow on permits for a 55 Mgy corn ethanol plant proposed for Famoso. Cilion, the plant’s developer, is completing a similar plant near Modesto.

In Indiana, Central States Enterprises has proposed a 110 Mgy corn ethanol plant near Montpelier. The  $150 million project would also produce 376,000 tons of distillers dried grains, and would be sited adjacent to an existing grain storage and rail facility.

In Iowa, Golden Grain Energy and BEST BioDiesel have proposed a joint venture, Corn Oil BioSolutions, to convert corn oil into biodiesel at the Golden Grain ethanol plant in Mason City.

In Illinois, Blackhawk Biofuels will acquire a 45 Mgy biodiesel plant in Danville owned by Biofuels of America. Fifth Third Bank and Renewable Energy Group will provide debt financing for the acquisition, and REG will mange the facility on behalf of Blackhawk. The new ownership will convert the existing plant from soybean oil to a multi-feedstock model.

International News:In New Zealand, Aquaflow Bionomics is studying a substantial expansion to produce algae-based biodiesel for Boeing, saying that “even a small airline, you’re talking about hundreds of thousands of gallons a day being consumed.” Meanwhile, New Zealand is also converting to a 0.53 percent biofuel minimum blending standard in July, with a scheduled increase to 3.4 percent in 2012.

In Fiji, an agreement by the national government with China to produce cassave-based ethanol has farmers scrambling to secure modern farming equipment. Currently, cassava roots are harvested by hand. “Farmers definitely cannot be using digging forks and cane knives to prepare their farms and uproot the crops because it would cause delays,” a spokesman told the Fiji Times.

In Nigeria, Global Biofuels said that its seven state, seven plant ethanol plant would generate 406,000 jobs in Osun, Kwara, Kogi, Niger, Kaduna, Ekiti and Oyo states. The venture’s CEO, Dr. Felix Babatunde Obada, said that each proposed ethanol plant would cost $80 million to complete.

Research News:In the UK, an article in Chemistry & Industry said that disagreements between the UK, Germany and US governments about corn ethanol’s carbon footprint pose the potential for chaos. Eric Johnson, editor of Environmental Impact Assessment Review, said that German proposals on corn ethanol state a carbon saving of over 40%, while the US rates corn ethanol at a 22% saving, while the UK estimates that corn ethanol is 20 percent carbon neutral. “Bioethanol from US corn will win in Germany, barely pass muster under US rules and lose in the UK,” Johnson wrote, as governments begin to link incentives to carbon impact.

Policy and Policymakers:The CEO of BP said that “Ethanol is here today. It’s important. It matters. It pushes the ball forward, and we blend and sell 800 million gallons of ethanol a year in the United States,” adding that he expected biofuels to supply as much as 30 percent of global fuel demand.” Robert Lukefahr told the Wall Street Journal that “We have to have stable, long-term, clear policy so we know what the rules are.”

Consumer and Fleet News:US gasoline prices reached an all-time high of $3.26 per gallon last week, according to the Lundberg Survey of 5,000 gas stations. The figures were an all-time high for gasoline, even after adjustment for inflation, but were tempered by lower crude oil prices last week. The Lundberg Report cautioned that spring high-season demand had not yet peaked.

In New Hampshire, the Hollis/Brookline School District will convert 25 buses to biodiesel, with an estimated reduction of up to 70 percent in emissions. The district received a $162,850 grant from the US Environmental Protection Agency to retrofit buses with pollution control systems and make up the cost difference between petroleum diesel and biodiesel.

Financial News:US Markets were closed in observance of Good Friday. On Thursday, the Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, fell 3.85 percent to close at 111.10 as diversified agribusiness plunged, overcoming improvements in ethanol stocks.  For the day, Archer Daniels Midland (ADM) fell 4.76 percent to close at $40.18, while among ethanol stocks Verasun Energy (VSE) soared 15.51 percent to $6.63, shaking off a Moody’s downgrade earlier in the week; US BioEnergy (USBE) jumped 13.88 percent to $5.25. Among small caps, Nova Biosource Fuels (NBF) gained 15.97 percent to $1.38 on news of management changes and new financing. Declines led advances 3 to 2.

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A strange thing happened to crude oil last week — it fell like a lead pigeon. Overall consumption of oil and its products fell by 3.2 percent in the last month and gas demand contracted by 1 percent. However, gas prices are up about 70 cents from a year ago at $3.50 now and $4 is a possibility later this spring if Americans can’t resist the call of the open road. API Launches Renewable Fuels Credits Data Clearinghouse Renewable Energy Group Withdrawing Plans for IPO CFTC Seeks Comments on OTC Ethanol Futures ClearingChange CleanTech to Demonstrate Ethanol Conversion Technology Marquis’ Illinois Ethanol Plant to Begin Ops on April 17 Aberdeen Energy Sees S.D. Ethanol Plant Startup in May

Submitted by Biofuels Digest Blog

Top Story:

In Iowa, the USDA and Department of Energy announced a $944,000 grant to support a project at Iowa State using fast pyrolysis, gasification and nanotechnology based catalyzation to produce ethanol. Project director Victor Lin, a professor of chemistry and director of the Center for Catalysis, told Science News said that research into catalysts slowed in the 1990s over issues of controlling reactions and productivity. The new catalysts are solid nanospheres with honeycomb channels, loaded with a metallic catalyst and other species.

Producer News:

In Minnesota, Minnesota Pollution Control Agency will recommend that Agassiz Energy complete a detailed Environmental Impact Statement before receiving permission to proceed with its $130 million, 70 Mgy ethanol plant in Erskine. Agassiz Energy said it could add $500,000 to the project which took two years to complete its Environmental Assessment Worksheet and review process. The group will be asked to assess groundwater pumping on area wetlands, greenhouse gasses emissions data and a mercury levels.

In North Carolina, Kreido Biofuels has delayed the opening of its 50 Mgy biodiesel plant in Wilmington by six months, to the fourth quarter of 2008. The company cited  financing delays, government approvals and current market conditions as reasons for the delay.

In Indiana, Lake County Solid Waste Management District green-lighted three companies to presents proposals for a garbage-to-ethanol project, with a deadline of May 15 for proposals. Allied Waste, Genehol Powers and Indiana Ethanol Power are the companies in the running for the 20-year contract at two waste plants.

International News:

In Canada, Prince Edward Island Development Minister Richard Brown told CBC that the Atlantic provinces are set to establish a unified standard for biofuels, which may include a minimum blending percentage or tax incentives.

In England, D1 Oils founder and former chairman Karl Watkin said he may make a bid for the entire company, and is evaluating strategic options following his resignation from the board last month. Watkins resigned after the company announced a downsizing due to adverse market conditions stemming from US competition.

In Switzerland, the managing director of HG Consulting told the Sugaronline conference that Africa lacks the infrastructure and regulatory framework to become a major biofuels exporter at present. Meghan Sapp, said that South Africa, Mozambique, Kenya and Nigeria showed promise as sugarcane or cassava-based ethanol, but that ports, roads, schools and clinics were needed for the plantations, refineries and workforce required.

In Thailand, the Export-Import Bank of Thailand plans to invest $3.2 million in the MFC Asset Management new energy fund, focused on renewable energy production. The MFC Energy Fund is an open-ended, 10-year fund with $128 million raised from 11 financial institutions. The Fund is investing in solar, biodiesel, biomass and ethanol projects, and could be expanded to more than $500 million.

Research News:

The Nebraska Farm Real Estate Market Survey shows that local farmland prices have jumped 23 percent in the past year, and 88 percent since 2003. Adjusted for inflation, land prices set an all-time record in 2007, on strong demand for corn, at $1,425 per acre.

In Nebraska, detailed results from the five-year switchgrass study, that demonstrated average production costs of $60 per ton of biomass with a low of $39 per ton, are now available online. The complete USDA / U Nebraska-Lincoln study will be published in BioEnergy Research, but is available online here.

Policy and Policymakers:

In Illinois, House Bill 4696, that would increase state support for ethanol to $10 million in the form of 10-cent-per-gallon grants, was passed unanimously by House Renewable Energy committee and now moves to the House floor. The measure would also provide support for local governments and and gas stations for ethanol pumps.

Consumer and Fleet News:

In California, the first E85 station opened in the Los Angeles metro area, at the Conserv station in Brentwood. General Motors sponsored an 85-cent per gallon E85 promotion for opening day. There are more than 46,000 flex-fuel vehicles in Los Angeles.

Financial News:

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, dove 3.85 percent yesterday to close at 111.10 as Archer Daniels Midland rocketed downwards, overcoming improvements in ethanol stocks.  For the day, Archer Daniels Midland (ADM) fell 4.76 percent to close at $40.18, while among ethanol stocks Verasun Energy (VSE) soared 15.51 percent to $6.63, shaking off a Moody’s downgrade earlier in the week; US BioEnergy (USBE) jumped 13.88 percent to $5.25. Among small caps, Nova Biosource Fuels (NBF) gained 15.97 percent to $1.38 on news of management changes and new financing. Declines led advances 3 to 2.

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The API said in a news release that it has launched an internet-based data clearinghouse known as the API Credit Exchange or ACE to help companies buy and sell renewable fuels credits. Renewable Energy Group Withdrawing Plans for IPO CFTC Seeks Comments on OTC Ethanol Futures ClearingChange CleanTech to Demonstrate Ethanol Conversion Technology Marquis’ Illinois Ethanol Plant to Begin Ops on April 17 Aberdeen Energy Sees S.D. Ethanol Plant Startup in May Ethanol Profits Struggle

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The API said in a news release that it has launched an internet-based data clearinghouse known as the API Credit Exchange or ACE to help companies buy and sell renewable fuels credits. Renewable Energy Group Withdrawing Plans for IPO CFTC Seeks Comments on OTC Ethanol Futures ClearingChange CleanTech to Demonstrate Ethanol Conversion Technology Marquis’ Illinois Ethanol Plant to Begin Ops on April 17 Aberdeen Energy Sees S.D. Ethanol Plant Startup in May Ethanol Profits Struggle

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Top Story:In Texas, PetroSun will open the first US commercial-scale algae farm for biofuels near South Padre Island. The 1,831 acre site includes 157 separate ponds, and the company said that extraction of algae from water and oil from algae were studied and solved at the company’s pilot farm in Opelika, Alabama. PetroSun said that results from the pilot farm demonstrated a yield of between 5,000 and 8,000 gallons per acre, or a potential oil production of 9-15 Mgy at the South Padre Island facility.

Producer News:In Iowa, the Renewable Energy Group cancelled its $150 million IPO, citing poor market conditions. The company had hoped to use proceeds from the IPO to fund one-third of the construction costs of 180 Mgy in new production capacity at three locations. The company has two 60 Mgy plants under construction in Louisiana and Kansas, owns a 12 Mgy plant, and operates three other plants for other owners with a 120 Mgy capacity.

In Indiana, the Corporate Organization for Renewable Natural Energy (CORNE) announced plans to construct a 40 Mgy corn ethanol and biodiesel plant near Elkton. The company said that construction of the plant, restaurant and medical facility would cost $72.5 million and would take the place of an abandoned fertilizer plant.

In California, the Hanford City Council is set to vote on a 63 Mgy corn ethanol plant proposed by Great Valley Ethanol. Opposition to the plant’s construction has focused on noise and emission issues.

In Florida, Florida Crystals is seeking a change in Palm County ordinances to permit commercial-scale cellulosic ethanol plants to be built in industrial zones. The company has proposed one of eight plants in progress around the state, based on the 2 Mgy demonstration-scale plant that is scheduled for construction at the company’s Okeelanta mill.

International News:

In China, experts are warning that plans to produce biofuels in the China’s southwest will threaten biodiversity in the last remaining section of virgin forest in the country. Speakers warned against the planting of jatropha trees, which would threaten native grasses and a diverse range of animal species, said academics attending the International Workshop on Biodiversity and Climate Change in Beijing.

In Hungary, SEKAB has canceled plans to develop four ethanol plants in Hungary, citing financing difficulties. The company had planned an investment of $600 million in the region, but said that more than 30 plants had been shelved due to poor confidence levels among bankers about feedstock prices and economic viability. A recent drought caused Hungary’s corn crop to come in at half of normal levels in 2007, prompting fears of a a feedstock shortage.

In Germany, Petrotec said it will build two waste oil-based biodiesel plants in the UK and United States, each with a 28 Mgy capacity. The company operates a 23 Mgy waste oil biodiesel plant in Borken. The company said that the UK plant would be located in the Thames or Tees region, and the US plant would be in New York or northern California, but that more sites would be investigated. Total investment was projected at $32 million.

In Canada, the Canadian Food Inspection Agency issued a draft regulations on the use of distillers’ grains from ethanol production as livestock feed. The CFIA will publish a final version in the fall, after a comments period. The Agency said that several chemicals used in ethanol production needed to be assessed for safety, including monensin sodium and tylosin tartrate.

Research News:Miles per acre is the subject of an article at ecogeek on the productivity of various renewable energy sources. The article credited soybean biodiesel with a productivity of 2,400 miles per acre per year; corn ethanol, 18,000; palm oil biodiesel, 31,000; switchgrass. 32,000; wind, 180,000; algae, 370,000;  solar, 2,250,000. The site said that it was clear that installation costs for solar were more than 100 times as expensive than for corn ethanol, and that biofuels can be produced on lands not well-suited for solar or wind.

Policy and Policymakers:Writing in Forbes, Vinod Khosla said that the best way to frame the renewables policy question was: “What is the cheapest way in dollars per ton to reduce carbon emissions from automobiles?” He said that hybrids are a “PR gesture” because they can’t pay back their upfront investment in a reasonable amount of time, and added that McKinsey found that hybridization costs $90 per ton of carbon offset, the most expensive of all technologies.

Consumer and Fleet News:Writing in The Guardian, Sir Richard Branson said that the CEO of British Airways, Willie Walsh, was wrong to describe Virgin’s support for biofuels as “a bit of a PR stunt” and said that British Airways “doesn’t have an environmental strategy.” He said that “the only businesses around in 20 years time will be green and sustainable businesses,” and added that “Sniping from the sidelines is not the answer to climate change.”

Financial News:The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, recovered 3.45 percent yesterday to close at 119.48 as investors went bargain shopping. For the day, Archer Daniels Midland (ADM) rose 3.45 percent to close at $43.52, while among ethanol stocks Pacific Ethanol (PEIX) rose 15.38 percent to $4.95 on news of a $40 million cash infusion from by a supplier; Aventine Renewable Energy (AVR) rose 7.22 percent to $5.05. Among small caps, Nova Biosource Fuels fell 18.93 percent to $1.37 after a downgrade by Ardour Capital.  Overall, advances led declines 3 to 1 for the day.

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In Florida, an editorial in the Tampa Tribune quoted findings Bruce Dale, professor of biobased technologies at Michigan State University, that the US ethanol subsidy cost $3 billion last year, but resulted in a $6 billion reduction in farmer subsidies, and a $15 billion reduction in foreign oil imports.

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High energy and food prices, a weak dollar and mortgage problems are weighing on average U.S. citizens, according to DTN’s Man on the Floor of the CBOT and CME Gary Wilhelmi.

Raven Biofuels Merges with Pure Energy

Agreement Expands Cellulosic Ethanol

NC to Put Fuel Standards for Ethanol Blending on Books

Algae-to-Biofuel Farm to Open in April

Missouri Senate Passes Law Requiring 5% Biodiesel Blend

Dallas Fort Worth Terminal Begins Ethanol Operations

Focus on Fuels 3-10-08

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Top Story:

In New York, Vinod Khosla and Big Oil conducted a “food fight” at the Wall Street Journal’s ECO:nomics conference, where  Khosla accused the American Petroleum Institute for linking food price increases to ethanol production, saying ““The API started issuing press releases about food. Suddenly they got interested in the welfare of poor Africans.” “We have never said anything about ethanol being responsible for food prices,” said American Petroleum Institute President Red Cavaney. “It was Federal Reserve Chairman Ben Bernanke in recent Congressional testimony who linked a 4.5% increase in food prices to rising worldwide demand and the amount of corn going to ethanol.” Khosla suggested government rules mandating that service stations dispensing more than $5 million worth of fuel a year should have E85 pumps.

Producer News:

In Pennsylvania, the Conoy Township board of Supervisors in Lancaster County granted zoning approval for a new 60 Mgy ethanol plant. The supervisors voted 3-2 to grant a conditional-use permit, based on 77 conditions,  to the $120 Lancaster Biofuels project after five months of hearings. Opponents said they are considering a court challenge. Lancaster Biofuels said that if air, water and land permits are secured, the plant expects to commence operations as soon as 2010.

In Georgia, Range Fuels has raised $100 million for its 100 Mgy cellulosic ethanol plant. The first phase of the plants operations would take its woodchip-to-ethanol process to 20 Mgy capacity. The company’s process converts solid waste into gas, which is then converted into alcohol. The process is similar to the Fischer-Tropsch process, first developed in 1920.

In Minnesota, the SoyMor Biodiesel plant in Glenville shut down production, citing the high cost of soybean oil and the weak US dollar. The plant had been operating at 50 percent capacity since November.

International News:

In Belgium, the seven institutions of the Refuel Project presented their EU biofuels roadmap at the World Biofuel Markets conference in Brussels. The report said that the EU can meet its 10 percent biofuels target by 2020 with first-generation feedstocks and fuels based on existing technology, without major agricultural land use changes. The report said that next-gen biofuels would increase greenhouse gas emissions reductions, but would require several policy changes to have impact.

In Canada, the federal government has approved a $500 million cellulosic ethanol project plan by Iogen Corp for construction in Saskatchewan. Iogen execs said that they hoped to launch the 23 Mgy plant north of Saskatoon by 2011, using wheat straw and other cellulose as feedstock.  Iogen is backed in the venture by Shell, Goldman Sachs and Petro Canada.

In South Africa, Rainbow Nation Renewable Fuels has readied an application to construct a 76 Mgy soy-based biodiesel plant in Coege, Eastern Cape province. The Australian-based project developer said that they hoped to commence construction by 2009, and expected to be using soybean oil made exclusively in South Africa within five years.

In Brazil, the Mines and Energy Minister said that the government may move up the date for implementation of a B5 mandate to 2010, from 2013. The minister said that the country has an existing capacity of 661 Mgy, enough biodiesel to support a blend as high as 6 percent biodiesel.

Research News:

The Federal Reserve Bank of Kansas City released a report saying that the marketing has increased from 59 percent of food cost in 1959 to 80 percent today, due to labor and energy costs. The Fed said that labor and energy now make up 42 percent of the cost of food, while farm value is 19 percent. In commenting on the report, Ron Litterer, president of the National Corn Growers Association (NCGA) told the Grand Island Independent that the “USDA reports that farmers receive 19 cents from every dollar spent on a bag of wheat flour, but only 5 cents from a dollar spent on a loaf of bread and just 4 cents from a dollar spent on a box of corn flakes”.

Policy and Policymakers:

In Brazil, the president of the Brazilian Sugarcane Industry Association proposed that the US establish a variable ethanol tariff linked to the price of oil, if it would not abolish the ethanol tariff altogether. Proponents of the tariff repeal, who range from Sen. Charles Schumer (D-NY) and Sen. Richard Lugar (R-Ind) to Federal Reserve Chairman Ben Bernanke, say that increased Brazilian imports will reduce the overall cost of fuel, relieve pressure on food prices, and reduce US dependence on foreign oil. Opponents, led by Sen. Charles Grassley (R-IA) said that repealing the tariff would cause US taxpayers to subsidize Brazilian ethanol (as it would qualify for the 51-cent blenders credit), and said that Brazilian ethanol could be imported duty-free so long as it is partially processed in the Caribbean, under the Caribbean Basin initiative.

In Belgium, the “Agrofools” group padlocked and chained four sets of doors at the World Biofuel Markets conference, and battled with security to chain a fifth door before being arrested. The outside gates were chained shut by the Rhythms of Resistance group before being dispersed by police. The protesters were opposing the use of biofuels as a solution for reducing dependence on oil.

Consumer and Fleet News:

In Hawaii, the county of Kauai will pilot test a B20 biodiesel blend in the county fleet. The test will be conducted over two months using biodiesel supplied by Kaua‘i Farm Fuel.

Financial News:

The Biofuels Digest Index™ (BDI), a basket of public biofuels stocks, fell 1.32 percent yesterday to close at 120.50 as diversified agribusiness and ethanol slipped on general market weakness.   For the day, The Andersons (ANDE) tumbled 4.55 percent to close at $42.17, while among ethanol stocks Verasun Energy (VSE) dropped 5.71 percent to a 52-week low of $6.27 despite strong earnings. Pacific Ethanol (PEIX) fell 11.55 percent to $4.75.  Among small caps, Xethanol (XNL) gained 6.80 percent to close at $0.4699.  Declines led advances 5 to 1.