Global News Summary
NORTH AMERICA Magellan Midstream Partners has opened a new biodiesel blending...
NORTH AMERICA US soybean reserve stocks have plunged, creating conditions for...
WORLD Global energy supplies will present a major risk factor for countries a...
WORLD Hedge funds are boosting their investments in commodities, particularly...
NORTH AMERICA The chairman of the US House Agriculture Committee said that th...
WORLD The Economist says that large investments in biofuel capacity and stron...
WORLD The US Energy Information Administration (EIA) says global oil markets ...
NORTH AMERICA More than 300 members of the majority farmer-owned operation Pa...
WORLD Investment bank Lazard Ltd. has created an alternative energy team comp...
NORTH AMERICA Bioenergy of America of Edison, NJ filed for bankruptcy yesterd...
According to an analysis by economists with the Food and Agricultural Policy Research Institute, continuing high crude-oil prices and new bioenergy mandates are expected to sustain prices at historic highs across all agricultural commodities over the next decade. Global net trade in ethanol is projected to increase by 2.5 billion gallons, reaching 3.6 billion gallons by 2017. New biodiesel mandates will almost double the price of biodiesel, pushing it to $6 per gallon, with doubling of net trade over the next decade.
South Dakota Governor Mike Rounds signed legislation reducing the state tax on biodiesel blends of B5 or higher by $0.02 to $0.20 cents per gallon. The tax break is triggered by a minimum in-state production capacity of 20 million gallons per year.
The Missouri state Senate passed legislation mandating a B5 or higher blend in all diesel fuel sold in the state. The measure now moves to the state House for approval. Missouri, which enacted an E10 mandate in January, would become the sixth state to establish a biodiesel mandate.
A new 10,000-gallon biodiesel tank has been installed at the Kentucky Transportation Cabinet’s Division of Equipment in Frankfort. The site was established as a central location where state vehicle operators can obtain biodiesel. It is a cooperative project of KYTC, Finance and Administration Cabinet, Environmental and Public Protection Cabinet and Fleet One, the fuel card service provider for Kentucky state government.
American Renewable Fuels says it will delay construction of its proposed 75 million gallon per year biodiesel plant in Clovis, NM until July, due to conditions in financial markets and high feedstock prices. It is the third biofuel project this year to be delayed or cancelled in Clovis.
The US Energy Independence and Security Act of 2007 has paved the way to an oil-free transportation system, according to the Institute for Local Self-Reliance (ILSR). ILSR envisions a 75-25 split between electric miles and biofuel miles. “The vehicle efficiency mandate will force car companies to hybridize most of their new vehicles which makes it possible for plug-in hybrids to use electricity as their primary fuel,” said David Morris, ILSR’s Vice President. “The biofuels mandate will result in the production of sufficient biofuels to meet nearly 100 percent of the fuel needed to run the backup engine.”
According to the Canadian Renewable Fuels Association, the biofuel industry in Canada remains on track, with a number of operations already in place and others set to start production very shortly. "With crude oil values climbing above $105 a barrel, along with federal and provincial inclusion of renewable fuel mandates, the industry is still very much in an expansion phase," said Robin Speer, Director of Public Affairs. Speer estimates current annual ethanol capacity in Canada around 220 million gallons. Biodiesel production capacity is estimated at 850 million gallons.
Gulf Ethanol Corporation says it will meet this month with several Central American ethanol producers to negotiate the conversion of existing plants to cellulosic feedstocks. Gulf will provide the technology, engineering and installation of cellulosic technology to the plant owners, and will share in the profits of each plant. "The economics of cellulosic ethanol production are compelling, as smaller nations seeking energy independence have abundant biomass that can be used to produce cellulosic ethanol," Gulf President J.T. Cloud.
In the Netherlands, Biopetrol announced delay of its 400,000 mt biodiesel plant in Rotterdam, citing construction problems due to late materials deliveries and permitting slowdowns.
ASIA / PACIFIC
In Burma, the government says the first national jatropha crops are ready for harvest, with up to 7 million acres planted by small farmers. This is the result of a national directive in 2006 that all farmers with more than 1 acre of land were to plant a minimum of 200 jatropha seeds.
In Australia, Natural Fuel Limited said it would switch to producing refined glycerin from biodiesel at its Darwin plant, after it was reported that the company recorded a $40 million loss for 2007.
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