Friday Edition

10.03.08

GLOBAL

Crude oil is poised for the largest weekly drop since 2004, after a U.S. employment report reinforced concerns over a recession in the US, Bloomberg reports. Oil has declined 12% this week as higher borrowing costs and reports showing a worsening economy spurred skepticism that the U.S. government's $700 billion bank-bailout plan will stimulate growth.

NORTH AMERICA

The US Senate approved a $700 billion rescue package that also includes billions of dollars in energy tax breaks, Reuter News reports. The House of Representatives will likely vote on the measure today. The bill includes the extension of the $1.00 per gallon biodiesel tax credit.

According to a study commissioned by US mayors, the shift to renewable energy is expected to create 4.2 million new ‘environmentally friendly’ jobs over the next 30 years, which will account for 10% of new job growth. The study assumed 30% of motor fuels coming from ethanol or biodiesel by 2038.

A Northern Illinois University faculty will analyze different types of alternative fuels, including biodiesel, looking not only at engine performance but at logistical changes that would be required to accommodate greener fuels, the university said in a news release.

The new Tulsa company L.E.A.F. will open a $7 million, 4.5 million gallon per year biodiesel plant in April, the first in a planned regional chain, that will employ the "BPU400" technology patented by Orbitek Inc. L.E.A.F. is in discussions with two bio-diesel distributors to carry and blend the fuels.

According to EIA, during the first six months of 2008, renewable energy accounted for more than 10% of domestic US energy production. From January 1 through June 30, the US consumed more than 50 quadrillion btu’s, of which domestically produced renewable energy accounted for 10.56%.

Bioversel Inc. has filed a lawsuit against GreenHunter Biofuels LLC, a subsidiary of GreenHunter Energy Inc., alleging the company failed to fulfill its obligations regarding a biodiesel tolling agreement and addendum contracts.

Willamette Biomass Processors Inc.’s new crushing plant capable of processing 80 million pounds of oilseed per year has started operations in Rickreall, Oregon. The plant will take in mostly regionally grown canola and camelina from farmers in Oregon, Washington, Idaho and Montana. Three million gallons of oil will be used at SeQuential-Pacific Biodiesel.

Nova Biosource Fuels Inc. announced the credit facility amendment for its Seneca biodiesel refinery and the shutdown of its Clinton refinery due to a fire, Reuters reports.

What could become the largest biodiesel project in the Southeast has picked a site on the Miami River in Miami-Dade County for its first facility. Miami-based Biomix Energy Corp. is seeking approvals to invest roughly $45 million to develop the site.

In Canada, a used cooking oil recycling pilot plant at the Burnaby Still Creek Recycling Depot is set to start October 7. The year long pilot project is a partnership between ERM BioSource, The Recycling Council of British Columbia (RCBC), and the City of Burnaby.

SOUTH AMERICA

Farmers in Argentina are resuming nationwide protests against the government over what they say is its inadequate support for them. They want economic concessions for smaller farms, and say they will suspend grain exports and limit the export of beef for the next six days.

EUROPE

Eight Italian biodiesel producers that already produce diesel from crops like maize and rapeseed are involved in a $14 million project, which they hope will produce fuel from seaweed on a commercial basis within five years.

Thousands of jobs could be lost in the French biofuel sector if the government's proposal to scrap tax advantages for biofuels by 2012 is adopted, Reuters News reports. The government said in its draft 2009 budget that it would gradually phase out tax reductions given to ethanol and biodiesel from January.

A Polish football legend has plans to build a biodiesel plant and a wind farm in Poland and has already set up an 80%-owned firm, Bon Oil, which will carry out the project.

ASIA / PACIFIC

Palm oil's discount to soy oil has more than doubled to $450 a metric ton in just six months as palm has lost half its value since hitting a historic high in March, triggering market talk that palm might have gone too low too soon, Reuters reports.
AUSTRALIA

The Queensland government has called for a dramatic shake-up of research and development in Queensland's food sector to help the state produce at least three new billion-dollar industries. The potential new industries could include ethanol production from sugarcane waste and biodiesel from oil tree crops.

Deutz-Fahr tractors, which are able to run on biodiesel, will be on show during Elmore field days in Australia. The Agrofarm models were the first tractors of such size that were available with full biodiesel engines.

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