Wednesday Edition

01.07.09

GLOBAL

Oil prices dipped near $48 a barrel Wednesday as investors weighed tensions in the Middle East and more bad US economic news. Traders are also seeking as many as ten supertankers to store crude, suggesting demand for oil remains weak.

The Cleantech Group has announced preliminary 2008 results for clean technology venture investments in North America, Europe, China and India totaling a record $8.4 billion, up 38% from $6.1 billion in 2007. The top sectors were solar, biofuels, transportation, and wind.

NORTH AMERICA

The Massachusetts Department of Environmental Protection has expressed that they and ten other Northeast and Mid-Atlantic states have committed to developing a regional Low Carbon Fuel Standard in order to reduce GHG emissions from fuels for vehicles and other uses.

Continental Airlines will conduct a biofuels demonstration flight January 7th, the first such test in the US with a commercial jet. The biofuel is comprised of algae and jatropha oils.

In Texas, Baylor University researchers have designed a process to make car parts from coconuts and biodiesel from coconut oil in hopes to become a source of income for millions of coconut farmers on annual incomes as low as $500.

HydroGenetics, Inc. has announced that it has completed the acquisition of Buffalo Biodiesel, Inc. in Buffalo, NY. Buffalo Biodiesel is a producer, collector and renderer of yellow grease for biodiesel.

PetroAlgae of Florida has closed on a $10 million capital raise through the sale of 3.2 million of newly-issued shares of common stock to two existing investors to help finance the commercial launch of its algal biodiesel, the company announced.

In Michigan, Franuhofer and the University of Michigan announced a program that will award $400,000 in seed grants for alternative transportation fuels.

Nova Bioresource has completed production of 17 million gallons of biodiesel, and is operating at 50-70% capacity at its Seneca plant. The company also has completed repairs to its Iowa biodiesel plant, damaged by last year’s fire.

Manitoba, Canada may mandate a biodiesel blend in provincially sold diesel fuel this year, ahead of the 2010 target. Manitoba's biofuels legislation requires at least 5.3 million gallons of provincially licensed production annually before a mandate is introduced.

Canada’s Atlantic region’s forestry industry, struggling to attract new investment, could revitalize itself by making use of renewable forest supplies to produce biofuels and bio-chemicals, according to a report released by the Atlantica Bioenergy Task Force.

SOUTH AMERICA

Brazilian consultancy firm JRBellardo, is seeking investors, mainly from Arab countries, interested in buying a 1.05 million gallon per month biodiesel plant in Sao Paulo state.

EUROPE

Polish biofuel producer Biopaliwa has landed a $67 million supply deal with Poland's largest crude oil refiner, PKN Orlen. The RME biodiesel will be used as an additive to the crude refiner's fuel or sold directly at the pump as B100.

In Castelo Branco, Portugal, Gleinol plans to invest $5.4 million to construct a biodiesel plant that will start operating in 2010. Raw oil plant material will come from Angola and Brazil.

In the UK, Origo Industries will trial its Ecobox technology at Liverpool John Lennon airport beginning next month. CO2 from air units in the terminal will be filtered through a photo-bioreactor containing algae, which will be refined into biofuel for airport vehicles.

Dutch biodiesel producer Biovalue, which operates an 80,000 mt per year biodiesel plant in Eemshaven, took delivery of 13,000 mt of Russian rapeseed this week to refine into RME.

Algasol Renewables plans to build a $14.2 million micro algae photobioreactor in the Balearic Islands, ADP reports. The plant is expected to be the world’s largest by 2012 and should provide 9% of diesel fuel consumed in the islands.

ASIA / PACIFIC

China’s State Council is expected to soon announce cuts in car purchase tax and incentives for the development of clean fuel cars to help support the flagging car market, The Financial Times reports.

South Korea aims to increase the production and use of alternative and renewable energies to 33.03 million tonnes of oil by 2030, resulting in 11% of total energy demand in 2030, Reuters reports. An investment of $88.34 billion is needed.

In the Philippines, the Energy Secretary said the National Biofuels Board will ensure that the government’s biofuels policy will be carried out as scheduled. The Philippine's Department of Energy is expected to commission five biofuel plants within the next year.

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