Wednesday Edition

07.28.10

WEDNESDAY EDITION
July 28, 2010
Volume 6 Issue 78

Global

BP REPORTEDLY SEEKING TO SELL ASSETS TO PAY FOR OIL SPILL DAMAGES
A day after BP said it would sell $30 bln in assets to pay for its Gulf of Mexico oil spill, the focus shifted to what is for sale. Sources said BP was in talks with India's Reliance Industries and Essar to sell retail assets in Africa with an estimated price tag of $500 mln, and could also sell its stake in Alaska's Prudhoe Bay oil field, Pan American Energy in Argentina, and smaller assets in Vietnam, Pakistan and Colombia, Reuters reports.

North America

NEW MEXICO BEGINS BIODIESEL MANDATE
New Mexico has this month begun mandating the use of a 5% biodiesel blend by all state agencies, political subdivisions and public schools operating on-road motor vehicles. After July 1, 2012, the B5 mandate will extend to consumers. Read more


US SENATE DEMS PROPOSE LEGISLATION TO DEAL WITH OIL SPILL
US Senate Democrats have unveiled legislation to respond to the BP spill and said they hope to pass the measure before Congress’ Aug. recess. The package adhered very closely to an outline Senate Majority Leader Harry Reid had proposed, when he abandoned a year's work on comprehensive climate legislation in favor of a bill that focused on preventing a future oil spills. Read more


BILL INTRODUCED TO EXTEND ETHANOL TAX CREDITS
A draft bill released by the chairman of the US House of Representatives' tax-writing committee would extend the ethanol blending tax credit for one year at $0.36/gal, compared with the current $0.45. It would additionally extend the small ethanol producer tax credit for one year at $0.08/gal, down from $0.10.

South America

NEW ARGENTINA BIODIESEL PLANT PROPOSED
Argentina-based ALS Bio plans to build a $10 mln, 60k mt biodiesel plant that will process salicornia and camelina plants. The project is expected to launch in 2011, ADP news reports.

CARBIO FORECASTS ARGENITNA BIODIESEL PRODUCTION TO INCREASE 25% IN 2011
Victor Castro, Executive Director of Carbio, expects Argentina’s domestic biodiesel production to rise by at least 25% in 2011 to around 2.5 mln mt on plentiful soyoil supplies, low costs and favorable export taxes. Read more


Europe

ETHANOL PUMP STATIONS IN FRANCE INCREASE
UFIP reported that around 2,257 service stations in France were offering E-10 at the end of June 2010, up from 2,235 in the preceding month and 1,060 one year earlier. A total of 118.1 mln liters of E-10 were sold in June 2010, up from 113.9 mln in the preceding month and 83.4 mln one year earlier. Read more


Asia / Pacific

CPO DROPS WEDNESDAY
Palm oil futures dropped Wednesday after crude oil fell for a second day on rising U.S. inventory, lowering the appeal of the vegetable oil as a biodiesel feedstock. Oct.-delivery futures declined as much as 0.6% $773/mt on the Malaysia Derivatives Exchange, Bloomberg reports.


CHINA TO IMPOSE CAP ON COAL, SUPPORTING RENEWABLE ENERGIES
China may impose a cap on coal production by 2015 and enforce energy consumption targets to cut emissions and reduce reliance on fossil fuels. “There must be a ceiling on coal output in the future, and energy needs can be met with new and renewable energy,” Wu Yin, a deputy director at the National Energy Administration, said. Read more

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