Monday Edition

11.10.08

GLOBAL

Over the weekend, China enacted a $585.5 billion stimulus package to be pumped into infrastructure, housing, rural reform and environmental projects including alternative energy. On Monday, world markets had already seen a gain and crude oil rose by over $3.00.

World oilseed output is forecast at 431 million mt for 2008/09 compared to 404 million mt in 2007/08, the UN’s food agency stated. The agency also said global wheat and other cereals output will jump to record highs this year.

A recap of the International Air Transport Associations Green Vision program has been published, focusing on the industry’s goals of zero emission jets by 2050 and 10% conversion to biofuels by 2013.

NORTH AMERICA

Eight renewable energy projects in Minnesota will receive nearly $3 million in state grants awarded by the Next Generation Energy Board. The projects include cellulosic ethanol production, an anaerobic digester technology for hog manure, and using turfgrass to produce electricity.

StarTran, the mass transit agency for Lincoln, NE has joined the Blue Skyways Collaborative as a partner in reducing air pollution in ten central US states. StarTran’s entire fleet has run on biodiesel since the beginning of 2008.

In Oregon, SeQuential Pacific Biodiesel has starting shipping fuel from its new 5 million gallon per year biodiesel plant, which will trigger a 2% statewide biofuel mandate once the company produces locally-sourced biodiesel for three consecutive months.

California-based Pacific Ethanol reported losses of $54.9 million for the third quarter due to high corn costs, the company announced Monday. The loss includes a non-cash asset impairment of $26.6 million related to the company's suspension of its proposed 50 million gallon per year ethanol plant last year.

SOUTH AMERICA

The Honduras Agriculture Ministry said Colombia has donated a $700,000 palm oil biodiesel plant to Honduras. The plant is projected to begin operation in mid-December.

Brazil will explore sharing ethanol production knowledge and distribution with Southeast Asian countries as part of its campaign to promote ethanol as a commodity to be traded in the world market.

EUROPE

Finland set targets on Thursday for power consumption and to raise the share of renewable energy to meet European Union goals for 2020.

BP has halted plans to build wind farms and other renewable sites in Britain and is instead concentrating the bulk of its $8 billion renewables spending program on the US due to government incentives.

ASIA / PACIFIC

The Philippine Department of Energy may increase the biodiesel blend to 3% in February 2009 to encourage more biofuel investors. The department’s director stated there are ten accredited biofuel manufacturers in the country presently.

Malaysia’s State Assistant Minister for Agriculture has advised farmers against jatropha cultivation because of the low level of research and development, the absence of a government plan, and the lack of a formal price mechanism. The Minister also stated that jatropha harvesting is 15 times more labor intensive than that of palm oil.

Malaysia's federal government has allocated $56.3 million to help fund the country's biodiesel blending program, Dow Jones reports.

Trade participants said crude palm oil futures on Malaysia's derivatives exchange rose Friday on stronger soyoil and crude oil futures, Dow Jones reports. The benchmark January contract on Bursa Malaysia Derivatives ended up $2.82 at $462/mt.

The Indonesian and Malaysian governments have agreed to cut production and increase domestic consumption of crude palm oil to prop up its prices in the international market. Indonesia's replanting plan is expected to cut output by 75,000 mt of CPO, with Malaysia reducing output by 500,000 mt.

In Indonesia, the Ministry of Fishery and Marine Resources announced a partnership with the Korea Institute of Industrial Technology to produce biofuel from seaweed in hopes to reduce the cost of biodiesel by half.

Thailand’s Commerce Minister said the government plans to buy 150,000 mt of crude palm oil at $0.0643/kg-30% higher than market price-from crushers in a bid to shore up the price of palm fruit bought from farmers.

In South Korea, the government plans to transform a 19 million-square-meter landfill in the metropolitan area into a renewable energy plant to produce biodiesel or solar power by 2020.

While China remains firmly against capping its emissions, it would be prepared to do more if developed countries agree to contribute to a new multi-billion-dollar international fund to invest in climate-friendly technology and devote 1% of their GDP to help poor countries fight global warming, Reuters reports.

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