Friday Edition

07.16.10

FRIDAY EDITION
July 16, 2010
Volume 6 Issue 73

North America

DEMOCRATS TO PUSH FOR BIOFUEL TAX CREDITS
Democratic leaders on the US House tax writing committee plan to push legislation to extend tax credits for biofuels. Draft legislation obtained by Reuters would extend for one year the ethanol tax credit and a tariff on ethanol imports, along with the biodiesel and renewable diesel tax credit for 2011.

OIL LEAK TEMPORARILY HALTED IN THE GULF OF MEXICO
BP is “encouraged” after a pressure test that halted the flow from its Gulf of Mexico well indicated no sign of an oil leak after the first 17 hours. “We’ve had no negative information,” Wells said. While the test hasn’t yet confirmed the well’s integrity, “we’re encouraged by those results,” BP said. Read more


South America

NOVOZYMES AND DEDINI PARTNER ON BIOFUEL
Novozymes said Friday it and Dedini would partner to develop biofuel from sugarcane residue in Brazil, Reuters reports. "The objective of this partnership is to develop a process using the enzymatic hydrolysis route from sugarcane residues. This would result in the implementation of a demonstration plant, integrated into sugarcane mill refineries," Novozymes said.

BRAZILIAN AGENCIES INVEST IN BIOFUEL DEVELOPMENT
The Brazilian Innovation Agency, Research and Projects Financing and Brazil’s National Development Bank have entered into a partnership to invest $540 mln to promote ethanol development. Begining July 30, the project aims to promote the use of sugarcane, particularly bagasse and straw, to produce ethanol and new products such as polymers, special oils and biodiesel. Read more


Europe

UK MEETS BIOFUELS TARGET FOR TRANSPORTATION
The U.K. met its annual target for the use of biofuels in transportation, the Renewable Fuels Agency said. Almost 422 mln gal of biofuel were supplied in the year through April 14, or 3.33% of the U.K.’s road transport fuels, the agency said. Read more


BP ACQUIRES VERENIUM TECHNOLOGY AND FACILITIES
BP has paid $98 mln for technology and facilities developed by Verenium Corp. "This acquisition demonstrates BP's intent to be a leader in the cellulosic biofuels industry in the U.S. and positions us as one of the few global companies with an integrated end-to-end capability," said Philip New, chief executive of BP Biofuels. Read more


CHEMPOLIS COMMENCES BIOFUEL PLANT IN FINLAND
Chempolis, a biofuels producer and developer based in Finland, has opened a biorefinery in Oulu, Finland that processes reed canary grass into papermaking fiber, ethanol, biochemicals and biodiesel. The Oulu site will also act as a testing facility for other raw materials. Read more


Market Views

ETHANOL GROUP PROPOSES PHASE-OUT OF FEDERAL SUBSIDIES
A group of US ethanol makers proposed a phase-out of federal subsidies on Thursday -- the first such offer by a biofuels group, although the offer was tied to the creation of a more open market for the alternative fuel, Reuters reports.
Growth Energy presented the idea as Democratic leaders in the Senate sought consensus on an energy bill. Other leading ethanol trade groups support an extension of the existing incentives through 2015. They said it was too late in the congressional session to suggest broader-scale changes.
"Now is not the time to add uncertainty and complexity to the energy tax debate," said Bob Dinneen of the Renewable Fuels Association. "Losing the tax incentive will shutter plants and cost tens of thousands of jobs."

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