News of the Day

01.08.08

NORTH AMERICA

Verenium Corporation, a developer of high performance specialty enzymes and cellulosic ethanol technology, and Bunge Oils, Inc., have signed an agreement to develop enzyme processes for production of edible oils. Bunge has also agreed to become Verenium's partner for Verenium's first commercial product for seed oil refining, Purifine, a phospholipase C enzyme.

Earth Biofuels, Inc. announced a purchase agreement with Alliance Processors, Inc. for supply of yellow grease as a feedstock at the company's biodiesel facility in Durant, OK. Earth Biofuels will buy 100% of the yellow grease collected by Alliance at a fixed price over an initial three month term and a following three year term. Earth Biofuels produces and distributes biodiesel fuel through wholesale and retail outlets that is sold under Willie Nelson's brand name, "BioWillie.”

A five-year trial of switchgrass show the crop produces 540% more renewable energy than the energy consumed in its production. Previous estimates, based on small scale research plots, suggested the grass would yield a net energy production of 340%. In a paper in the Proceedings of the National Academy of Sciences, researchers says newer breeds of switchgrass have yields 20-30% higher than earlier strains.

Nevada-based Ormat Industries Ltd. announced it is postponing plans to build a $35-50 million biodiesel production facility. Ormat added that it would continue working with Evogene Ltd on development of high-yield non-edible plants for biodiesel production.

SOUTH AMERICA

ADM do Brasil Ltd says it will soon launch a $40 million biodiesel plant in Mato Grosso with an annual capacity of 45 million gallon per year, using soybean oil as feedstock.

EUROPE

In New South Wales, Riverina Oils and Bioenergy have proposed development of an integrated oilseed crushing biodiesel plant in Bomen to be established in partnership with the New South Wales government. Using canola and safflower oil seeds, crushing capacity will be 500 tons per day to produce 165,000 tons of biodiesel per year.

ASIA / PACIFIC

Japan's government will submit legislation on January 18, 2008 to provide preferential tax treatment to producers of biofuels and raw material crops such as sugar cane and rice. The bill would fix asset tax on biofuels production facilities for three years and allow biofuel producers to take out loans from Tokyo Small and Medium Business Investment & Consultation Co. and two other government-affiliated lenders.

In Thailand, the Energy Minister says biofuels sales will increase in 2008 to $469 million from $157 million in 2007. He said that the cost of oil imports have fallen 10% as a result of biofuel usage and a stronger currency, adding that gasoline would be replaced by E10 and E20 blends by 2012. Thai biofuel demand increased more than 100% in 2007. The increase in biofuels sales comes from the introduction of E20 and implementation of a B2 mandate.

A senior official of the Malaysian Palm Oil Board said that Malaysia is working toward developing alternative, cost-effective, eco-friendly oil palm-based fuels, saying the MPOB has begun a research program to develop a second generation of green fuels produced from solid raw material such as palm kernel cake, empty fruit bunches, and palm fiber and palm shells.

Crude palm oil futures prices on Bursa Malaysia Derivatives Bhd touched a new high yesterday amid tight supply following wet weather. The benchmark contract month March 2008 reached an all time high of $974.55 per ton.

AUSTRALIA

Australian firm Agri Energy will sell its wholly owned US subsidiary, US Canadian Biofuels for $42.5 million. The company includes Beatrice Biodiesel, Beatrice Ethanol as well as all land and buildings held by the company in Beatrice, Nebraska. Agri Energy’s chairman said investment support for the company had been adversely affected by the poor performance of the biofuels industry in the Australian market, high feedstock costs worldwide, and delays to completion of the project.

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