Monday Edition

10.13.08

GLOBAL

The Dow Jones industrial average surged more than 400 points in early trading today, following pledges by governments to further aid the banking sector, including plans by the US Treasury to buy U.S. bank stocks. Australia, New Zealand, and the United Arab Emirates guaranteed all bank deposits, while Germany, France, and Italy are expected to unveil similar moves later.

Oil jumped nearly 5% from its 13-month low while government bonds tumbled after Britain injected $64 billion into leading UK banks.

NORTH AMERICA

Pacific Ethanol Inc. launched its newest $150 million ethanol plant at the Port of Stockton, CA, capable of producing over 60 million gallons of corn-based biofuel annually-the largest such facility in California.

This month Carbon Motors Corporation of Atlanta, GA will unveil its Carbon E7 police car that runs on biodiesel. The new car, which will provide a 40% improvement in fuel efficiency, is designed by law enforcement professionals.

The US Department of Energy along with officials from Tennessee, Alabama, Kentucky, and Indiana has declared Interstate 65 as the first biofuels corridor in the country. Interstate 65 stretches from Gary, Indiana, to Mobile, Alabama and now has E85 ethanol and B20 biodiesel available along its entire 886 mile length.

SOUTH AMERICA

Noble Group announced its investment in a 132,990 cu bulk biofuel and clean fuel terminal in Brazil. The terminal will be fully operational by November next year and be linked to the Itaqui port pier.

EUROPE

In the UK, Flex Fuels Energy said that it will make a decision later this month on its engineering and construction partners for an oilseed-crushing and biodiesel facility in Cardiff. The company said it will focus on rapeseed oil.

ASIA / PACIFIC

CPO stocks in Malaysia rose by 5.5% in September, less than expected as output fell and exports exceeded forecasts, Reuters reports. Nevertheless, Malaysian palm oil futures still fell as the global financial crisis spread.

Malaysia is set to introduce measures to induce demand for CPO exports after a more than 50% plunge in CPO prices over the last six months. Malaysia has increased its CPO export quota by 50% to 3.3 million tons, and may cut the export tax along with implementing a 5% palm-oil biodiesel mandate by the end of the month, Plantation Industries and Commodities Minister Peter Chin Fah Kui said.

Indonesia will reduce its fuel oil imports as part of its effort to mitigate the impact of the global financial crisis, and biofuels will be promoted to replace fuel oils through a blending mandate, the Indonesian Energy and Mineral Resources Minister said. Indonesia's mandate for palm oil in biodiesel may be changed to accommodate fluctuations in CPO prices, with a lower mandatory percentage for palm oil when CPO prices are high and vice versa, Dow Jones reports.

NEW ZEALAND

Air New Zealand, which plans to fly a Boeing 747 partially powered by jet fuel refined from jatropha, says it aims to be the cleanest, most fuel-efficient airline in the world. The airline is also planning to use algal biodiesel for about 10% of its needs by 2013.

AFRICA

The South African National Energy Research Institute’s Program Manager for Green Transport has labeled biofuels as the country’s number one short-term option for alternative transport fuel. Dr Titus Mathe noted that biodiesel is comparable to petrol and diesel in terms of energy content, and offers energy security because it can be locally produced.

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