Monday Edition

08.03.09

Global

PALM OIL PRICE HITS 6-WEEK HIGH
Palm oil futures had the largest increase in six weeks as crude oil and soybeans gained, heightening the appeal of biofuels produced from the oil, Bloomberg reports Monday. Crude rose above $70 a barrel and soybeans exceeded $10 a bushel for the first time in a month, while October-delivery palm soared 4.8% to $653/mt.


North America

BP AND VERENIUM DEVELOPING CELLULOSIC ETHANOL PLANTS
BP and Verenium have announced that their joint venture, Vercipia Biofuels, will break ground on its first commercial-scale cellulosic ethanol facility in Florida in 2010. The company is also developing a second commercial-scale plant in the Gulf.

VERASUN FILES TO CANCEL COMMON STOCK
VeraSun has filed a plan of liquidation that would cancel the shares of the company's common stock, OPIS reports. "Under the terms of the plan, all shares of the company's common stock would be cancelled upon effectiveness of the plan, and the company's shareholders would not receive or retain any distribution or other property on account of their shares," VeraSun reported.

South America

ARGENTINA CONGRESS WILLING TO DISCUSS FARM EXPORT TAX
The head of the pro-government caucus in the Lower House, Deputy Agustín Rossi, stated that the ruling party "is willing to discuss the farming products export tax duties in Congress,” the Buenos Aires Herald reports. He also stated support "to keep government's ‘superpowers' which could only be used by government to lower export taxes, but in case a tax-rise is needed, it should be discussed and passed in Congress."


BRAZIL ANNOUNCES BIODIESEL AUCTION
In Brazil, the Ministry of Mines and Energy has published guidelines for a biodiesel auction in August to purchase 122-million gallons to meet the 4% biodiesel blend mandate. An exact date has yet to be announced.


Europe

EU COMMISSION COMPILING INDIRECT LAND-USE CHANGE REPORT
The EU Commission is currently compiling a report on indirect land-use, due by the end of 2010, as called for by the EU's new Renewable Energy Directive. However, according to sources, a document as well as legislation could be announced as early as March, 2010. This September, the Commission plans to preset scientific models on the impact of biofuels on indirect land use.


UK ANNOUNCES LOW-CARBON AVIATION RESEARCH PLAN
The UK government’s Technology Strategy Board has secured support from universities, and aerospace firms led by Rolls Royce and BAE Systems for research and development of low-carbon aviation technologies. The project, Strategic Affordable Manufacturing in the UK with Leading Environmental Technology (Samulet) will focus on reducing fuel consumption and limiting raw material usage.

Asia / Pacific

COCONUT OIL EXPORTS SURGE
Philippine coconut oil exports climbed over 64% to 114k mt on the year in July due to improved output and overseas demand. However, UCAP has forecast exports of coconut oil to slip this year on soft global demand and its increasing use as feedstock by local biodiesel producers.


CPO EXPORTS INCREASE IN JULY
SGS reported that a total of 1.4-million mt of crude palm and lauric oils were exported from Malaysia during July, a 15% increase over June, and a 1% increase from last year. The majority, 439k mt, was exported to China.

Australia

GOVERNMENT OFFERS FUNDING FOR LOCAL BIODIESEL PRODUCTION
In Australia, the Regional Development Minister announced $145k in funding from the Pilbara Regional Grants Scheme to support the Ashburton Aboriginal Corporation’s biodiesel manufacturing business. The project involves recycling waste products into biodiesel to provide local indigenous communities with fuel for machinery and power generation.

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