Monday Edition

10.27.08

GLOBAL

Oil fell to a new 17-month low below $62 a barrel on Monday, driven down by investor pessimism about the deteriorating global economic climate and its likely impact on demand for fuel.

NORTH AMERICA

The Pennsylvania Department of Environmental Protection has launched a biodiesel production incentive grant program, under Pennsylvania's Alternative Fuels Incentive Program, offering $0.75 per gallon to in-state producers. The grant will allow up to $1.9 million/yr per producer, and up to $5.3 million/yr from the program through 2010-2011.

The US Agriculture Secretary said that now is not the time to let up on developing renewable and alternative forms of fuel and energy just because the price of oil is down. He added promoting alternative fuels is a priority for the federal government as the country moves to reduce its reliance on foreign energy.

The award for Best Innovation by a Small and Medium-Sized Enterprise, part of the 2008 ICIS Chemical Business Innovation Awards, has been won by Virent Energy Systems for its biomass conversion technology.

The average price of regular gasoline in the US fell to $2.78 a gallon as the global economic slump curbed demand. Gasoline dropped 53 cents, or 16%, in the two weeks ended Oct. 24, Bloomberg reports. AAA expects prices to keep falling in coming weeks, reaching $2.50 before the end of November and possibly lower by the end of the year.

SOUTH AMERICA

Brazil’s government has cut the PIS and Cofins taxes on biodiesel sold in the domestic market in order to make the tax burden on biofuel the same as for fossil diesel. The two tax reductions will also apply to imported product.

Argentine-based Oil Fox has presented a $50 million plan to Paraguay's agriculture minister Cándido Vera Bejarano to cosntruct biodiesel plants in the country. The project includes the development of a harvest system for jatropha and other spurge-based plants.

Argentina is expected to plant a record 18.2 million hectares with soybeans this season. The area is expected to rise by 1.3 million hectares from the previous record set last season.

EUROPE

Biofuel-powered aircraft could be carrying millions of passengers around the world within three years, according to Boeing. Boeing expects planes to operate on a 30% biodiesel blend.

According to the general treasurer of the Czech Petroleum Industry and Trade Association, second generation biofuel from waste could become available at Czech filling stations by 2014-2015.

ASIA / PACIFIC

A senior company executive from Malaysia's Desmet Ballestra said the company is involved in constructing ten new biodiesel plants and 16 palm oil refineries worldwide, as demand for new infrastructure to produce biodiesel rises amid record-high crude palm oil output.

The Thai Energy Minister said Thailand's Energy Policy Committee decided to adjust contribution rates to the state oil fund from retail sales of fuel, Dow Jones International News reports. The changes will increase the fund's monthly income and help to stabilize retail prices of fuel in the future.

Under Myanmar's Jatropha bio-energy program, a joint venture company, named Myanmar Bio Energy Company, will be formed between the Myanmar Ministry of Agriculture and Irrigation, Japan Development Institute, and Japan Bio Energy Development Cooperation.

A $174 million biodiesel initiative to reduce Fiji’s reliance on imported diesel through the use of pongamia oil-based biodeisel is being planned. Bio-Fuels International and the Fiji Department of Energy will collaborate on the project.

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