Monday Edition

06.02.08

GLOBAL

World Bank President Paul Wolfowitz called on the US and the EU to ease subsidies on some biofuels from corn and oilseeds when prices are high as one of a series of urgent steps to tackle a global food crisis, Dow Jones reports. He said cutting tariffs would encourage the output of more efficient biofuels that do not compete with food production.

U.N. Secretary-General Ban Ki-moon will issue an urgent plea Tuesday to world leaders at a food summit in Rome to immediately suspend trade restrictions, agricultural taxes, and other price controls that have helped fuel the highest food prices in 30 years, according to U.N. officials. The United Nations will also urge the US and others to consider phasing out subsidies for food-based biofuels and to reach a pact with poor countries that would cut agricultural tariffs and subsidies.

OPEC President Chakib Khelil blamed speculators for the steep rise in oil prices, insisting that supply was not a problem and that the high price was linked to the exchange rate of the dollar, which has fallen steeply against other major currencies. He said the cartel of producer nations would not review production again until its meeting in Vienna on September 9, 2008.

NORTH AMERICA

Perihelion Global announced its biodiesel product has met ASTM D 6751 specifications required for US EPA registration and is now certified as fuel-grade biodiesel. The company says its Opp, AL multi-feedstock biodiesel plant is online and producing.

Methes Energies International announced its wholly-owned subsidiary, Methes Energies Canada, has signed a one-year agreement with Gulf Hydrocarbon on purchase of the total biodiesel production at Methes’ new 6.6 million gallons per year biodiesel plant in Sombra, Ontario, Canada. Methes Energies has a similar off-take agreement with Gulf Hydrocarbon for its 1.3 million gallons per year production facility in Mississauga, Ontario, Canada.

GreenHunter Energy will begin commercial operations of its biodiesel facility in Houston, TX. The company’s Renewable Fuels Campus is a zero emissions facility composed of a 105 million gallon per year biodiesel plant, a 700,000 barrel bulk liquid terminal operation, a 200 million pound per year glycerin distillation system, and a 45,000 barrel-per-month methanol distillation tower.

SOUTH AMERICA

Argentine farmers lifted their strike at midnight on Sunday, but continued with a demonstration today asking non-farm groups to strike in support of the farming community. Following Monday’s three-hour stoppage, farmers plan to organize tent camps in the squares of the country’s main cities and towns to build support among local officials and bring pressure on Congress.

Brazilian President Luiz Inacio Lula da Silva has urged developed nations to end farm subsidies as a way to fight food inflation, saying, ``It is important to start establishing a strategy to improve food production and, above all, take away the farm subsidies in the rich countries. That way, the poor countries will feel motivated to produce more food to eat and to sell.'' Lula said he will convey this message to world leaders meeting this week in Rome for a UN Food and Agriculture Organization conference.

EUROPE
The Danish National Advanced Technology Foundation has granted $3.1 million to biodiesel research to develop new technologies to reduce concerns about sustainability and food supply.

Hungary-based Hungrana, Europe's largest corn processor, has invested $156 million to more than triple its ethanol capacity to 150,000 tons per year. The company's increased capacity is enough to allow Hungary to meet the EU's 2020 target for 10% ethanol in vehicle fuel. Hungrana says it will establish 100-150 retail ethanol stations within a year, giving it nationwide coverage.

ASIA / PACIFIC

Convenience store operator Seven-Eleven Japan said Monday that it will test the use of biodiesel made from recycled cooking oil in its delivery vehicles in Hokkaido. Seven-Eleven will use the biodiesel to fuel 58 vehicles for deliveries to over 460 outlets in Sapporo and other areas. Included in the deliveries is the Group of Eight summit in July.

Thailand's oil and gas conglomerate PTT PCL announced it has teamed up with the Thai unit of Toyota Motor Corporation to study the development of bio-hydrogenated diesel (BHD) for commercial use, Dow Jones reports. The director of PTT said the study is expected to be completed by the end of 200. If the project is viable, both sides may invest in the development of a production plant.

A new EU regulation will limit imports of oleo chemicals from palm oil, kernel oil, and coconut oil, the Association of Biodiesel Producers said. The regulation requires exporters to register the content of chemicals in their products before December 1st 2008, or the products will not be allowed to enter the European market. Indonesian biodiesel producers claim the regulation was a move by the EU to protect its domestic industry.

According to local observers, the Indian government is unlikely to meet its deadline of October 2008 for increasing the ethanol blend in gasoline from 5% to 10%.

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