Friday Edition

02.20.09

GLOBAL

Oil futures jumped 14% Thursday to end near $40 a barrel, marking the biggest one-day gain since the end of last year, after US inventories showed a surprise decline last week as consumption started picking up.

NORTH AMERICA

US President Barack Obama and Canadian Prime Minister Stephen Harper have agreed to establish senior-level US-Canada Clean Energy Dialogue, specifically calling for collaboration on advanced biofuels.

Sustainable Power Corp. of Texas has acquired Angel Eyes Produce Company in which newly created Sustainable Produce Corp. will establish a biofuel and demonstration farm in Baytown, TX, with the intent of creating commercial-sized indoor farms.

The Idaho National Laboratory signed an agreement with OriginOil, a Los Angeles-based company trying to extract lipids from algae to produce biofuel for airplanes and vehicles.

A desert shrub called guayule is a source of natural latex, but according to Western Regional Research Center, the bagasse resulting from the removal of the latex from the stems can provide about 9,000 Btu per pound and can be converted into biofuel.

BP and Verenium have announced a joint venture to bring a commercial-scale cellulosic ethanol plant on line in Florida by 2012. The joint venture will initially focus on financing the 36-million gallon per year plant in Highlands County, FL.

SOUTH AMERICA

Soybeans rallied for the first time in seven sessions on speculation farmers in Argentina may strike in protest against export taxes and quotas, helping boost sales of US supplies. The strike is planned to last four days beginning Friday.

EUROPE

Latvian biodiesel production has increased threefold from 2007 to 2008, with 9,000 tons produced in 2007 and 28,340 tons produced in 2008.

Sarp Industries, owned by Véolia Environnement, will launch its new biodiesel plant in Limay, France in April 2009. The 60,000 mt/y facility will process used cooking oil as its only feedstock.

ASIA / PACIFIC

China National Offshore Oil Corporation is likely to inaugurate its jatropha biodiesel plant in Hainan Province in May. CNOOC will also develop a 60 ha seedling breeding base, and a 23,300 mu jatropha plantation base in Hainan.

Palm oil futures in Kuala Lumpur dropped for the first time in three weeks on concern demand isn’t rising enough to support prices, Bloomberg reports.

About World Energy