Wednesday Edition

09.03.08

GLOBAL

NORTH AMERICA

According to a survey by the United Soybean Board, 77% of those surveyed favor biodiesel as a source of energy, while 70% find it favorable as a green industry that is creating jobs.

In Oregon, SeQuential Pacific Biodiesel is gearing up to produce 5 million gallons of biodiesel per year from used cooking oil and locally grown crops. The capacity at the plant will trigger the state’s renewable fuel standards that require locally produced biodiesel to be included in all petroleum diesel.

Port Sutton EnviroFuels has halted plans to build Florida's first ethanol plant, citing a lawsuit that delayed the project and cost the company its financing. Dallas, TX-based GreenHunter Energy plans to invest up to $100-million to take over the land lease and construct a 50 million gallon per year biodiesel plant and terminal.

Arlington Energy of Mansfield, OH announced it will begin selling product from its new 5.5 million gallon per year biodiesel facility. The plant began production in July and processes used cooking oil, soy oil, and animal fat for biodiesel.

Destiny Sustainable Energy Farm in Osceloa County, FL will become a center for learning about potential energy technologies and crops such as sweet sorghum, algae, and jatropha. The farm is a cooperative including the University of Florida among others and has already planted 20 acres of sweet sorghum.

US-based Chrysler announced it is offering ten new flexible fuel vehicles that are able to run on ethanol blends up to 85%, according to the National Ethanol Vehicle Coalition. General Motors has 22 different 2009 flex fuel vehicles.

SOUTH AMERICA

Brazil's 2008-09 market year soy export estimate was revised downward on Monday to 25.7 million mt compared to 26 million mt in an estimate made by the Brazilian Vegetable Oils Industry Association. Year-ending stocks are expected to be around 1.5 million tons by January, one of the lowest in three years.

Brazilian state oil company Petrobras says it will seek partners for new biodiesel plants it plans to build. Petrobras' first three biodiesel plants were accomplished solely by the company; future facilities will be established in partnership with other firms.

Argentine vegetable oil maker Aceitera General Deheza (AGD) and Bunge Argentina will install technology for glycerin and other byproduct production at their biodiesel plant in Puerto San Martin.

Peru's state oil company Petroperú has published draft rules for a planned bidding process to purchase biodiesel from national and international suppliers. As of January 2009, the company must begin selling diesel with a 2% biodiesel blend.

EUROPE

UPM-Kymmene is establishing a new biofuel refinery development centre to research biofuels and bio-chemicals at the UPM Kaukas paper mill in Lappeenranta, Finland. The project will be in cooperation with Lappeenranta University of Technology.

Finnish group, Vapo OY, the parent company of Estonian's AS Tootsi Turvas, says it may soon choose Kunda, Estonia as the location of its first Estonian biodiesel plant.

In the UK, a Peterhead taxi company owner is making her own biodiesel to fuel her 12 car fleet. The owner is paying locals 15p per liter for large quantities of used frying oil to convert into biodiesel.

The Green Biofuels Ireland biodiesel plant at Marshmeadows, Ireland’s first commercial scale biodiesel facility, is now producing. The plant employs twenty people and has capacity to produce nearly 9 million gallons of biodiesel per year.

ASIA / PACIFIC

Prices of cooking oil products in Beijing, Shanghai, Guangzhou and Shenzhen have fallen at least 10% since early August, in line with the international market situation. Analysts say tumbling crude price will further reduce cooking oil prices in the near future as slower biofuel production has eased the demand for vegetable oil.

Biodiesel could account for 1.5% of the diesel consumed in Asia in 2008. Thailand plans to produce over one million gallons of biodiesel per day and 634,000 gallons of ethanol by 2011.

Malaysia may review cooking oil subsidies and the windfall tax being levied on crude palm oil following the recent steep fall in CPO prices, Dow Jones reports. The treasury will look at it based on the fact that windfall tax collection is getting smaller.

According to Reuters, cargo surveyor Intertek Testing Services reported on Tuesday that exports of Malaysian palm oil products for August rose 8.12 % to 1,490,527 mt from 1,378,537 mt shipped in July.

The Philippine Presidential Task Force on the Security of Energy Facilities and Enforcement of Energy Laws and Standards seized 4000 gallons of diesel and 1600 gallons of biofuel for having fake seals and no serial numbers. Both shipments are registered to Formula Oil Corp. in Binondo, Manila.

MIDDLE EAST

Israel Corp. subsidiary IC Green Energy (ICG) has acquired 43% of German biodiesel company Petrotec AG from Warburg Pincus for $40.7 million. ICG is also set to make a public offer to purchase the public shares in Petrotec.

Dubai-based venture capital fund, Alf Yad Limited, has announced a venture capital investment in EmBio, which is expected to produce the first supply of high grade biodiesel in the United Arab Emirates and the Gulf Cooperation Council.

AFRICA

The US Trade and Development Agency has extended a $572,000 grant to the Uganda’s Ministry of Energy and Mineral Development to analyze the potential for a biofuels market in the country. Resources, technologies, industry regulations, and incentives for the development of safe and responsible fuel production will be examined.

BioEnergy Africa raised $12.4 million from being listed on the London AIM market on September 1, 2008. The Company will use the funds to develop its first project, a 30,000 hectare ethanol project in Mozambique.

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