Wednesday Edition

10.08.08

GLOBAL

Central banks around the world cut short-term interest rates by up to half a percent on Wednesday after investors across Asia and Europe unleashed waves of sell orders. The Federal Reserve, the European Central Bank and other central banks from Britain and Switzerland to Canada and China announced rate reductions within seconds of one another, New York Times reports.

A palm oil consultancy said that CPO prices are unlikely to break through $571/mt ceiling in Q4 as the global financial crisis is likely to depress demand, and the market will likely find support at around $486/mt, Dow Jones reports.

NORTH AMERICA

USDA and DOE released the National Biofuels Action Plan (NBAP), an interagency plan detailing the collaborative efforts of Federal agencies to accelerate the development of a sustainable biofuels industry. The plan is in support of President Bush’s "Twenty In Ten" goal to cut US gasoline consumption by 20% over the next ten years.

Dynamic Fuels LLC, a joint venture between Tyson Foods and Syntroleum Corporation LLC, has started the construction of its $138 million plant, scheduled to begin production in 2010. The plant will convert animal fats into biodiesel.

The USDA said US corn and soybean maturity and harvests maintained a below-normal pace, while winter wheat planting remained on par with its normal seeding pace, Dow Jones reports. The USDA said 31% of the soybean crop was harvested, up from 9% last week, but below the five-year average.

Sanimax in De Forest, WI and StormFisher Biogas have announced an alliance to build eight biogas plants, for a total investment of over $160 million. The plants will transform organic by-products from the food processing industry, restaurants and institutions like schools into renewable energy and organic fertilizer.

On Monday, Piedmont Biofuels of North Carolina unveiled the newest wing of their biofuels facility, the first facility of its kind in the state. The facility will allow large-scale methanol recovery, reducing the inputs required and turning waste streams into useful co-products.

Missouri's ranking has jumped from 59th in 2007 to 12th in 2008 in a new survey of the top alternative fuel fleets in the US, because of the state's efforts to increase biodiesel use in state vehicles.

Sun Power Biodiesel LLC in Cumberland, WI has been awarded a $25,000 Agriculture Development and Diversity grant from the state to promote growing canola and sunflower crops in a 10-county area in northern Wisconsin for biodiesel.

An associate research professor at Auburn University has been developing ways to convert common algae found in catfish farms into biodiesel. He currently has a small project in western Alabama.

Canola exports are moving at a strong pace and should continue moving forward, Dow Jones reports. According to the Canadian Ports Clearance Association, over 400,000 mt of canola are slated to move out of Canada's west coast in the next two weeks.

SOUTH AMERICA

Brazilian firm Brenco has agreed to provide LyondellBasell Industries with nearly 16 million gallons of ethanol in its first ethanol contract. Financial details of the agreement were not made available.

Petrobras may increase investments from the $12 billion already set aside for the next five years as part of its 2020 strategic plan, which would include new biofuel plants among other projects, the company announced in a statement.

EUROPE

First quarter RTFO figures, released Tuesday by the UK's Renewable Fuels Agency, show biofuels accounted for 2.61% of fuel supplied during the period, over the 2.5% annual requirement, but the target for sustainability was not reached.

The Scottish Government wants a tenfold increase in the amount of heat generated by renewable energy. To meet the targets, it plans to aim for at least 50% of gross electricity consumption from renewables, 11% for heat and 10% for transport.

EU car makers called on Monday for nearly $55 billion in loans to help develop greener cars, but were turned down by the EU Commission. Last week, the US Administration agreed to provide $25 billion in low-cost loans to help US car makers with improving fuel efficiency by 40% by 2020.

In the UK, Stagecoach bus company has ordered $5.3 million worth of biodiesel buses that will run on recycled food waste. They will be introduced into service in April, 2009.

In a press release, the UK Committee on Climate Change has advised the UK government to reduce greenhouse gas emissions in the UK by at least 80% by 2050.

Germany's ruling government coalition said oil refineries would have to mix 5.25% biodiesel in fossil diesel from January 2009, instead of the planned 6.25%, Reuters News reports. The 6.25% biodiesel blending target is now scheduled for 2010.

ASIA / PACIFIC

India hopes to attract more than $4 billion worth of investments in renewable energy over the next five to seven years, in preparation of a new biofuels policy, Reuters reports.

A senior official said the Sri Lankan government plans to introduce a biodiesel plan to encourage biofuels for transport without engine modifications. He added the government aims to have 10% of transport fuel from indigenous non-petroleum fuels.

Analysts said that Thai government efforts to promote palm plantations will help farmers whose livelihoods have been damaged by violence in recent years, but do little to help support the falling prices, Reuters reports. The government will open a new 200,000mt per year crushing plant to expand palm plantations into abandoned rice fields.

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