Submitted by Biofuels Digest Blog
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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