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September 2008 Archives

September 1, 2008

How India could join the biofuel explosion

There's an interesting article about how India's policies are stopping India create biofuel on the Hindu  business line. They're subsidising the wrong thing, apparently. I think. 

BioEnergy Africa to list on the UK Alternative Investment Market today.

BioEnergy Africa is scheduled to list on the UK Alternative Investment Market today. The firm has a number of projects in Mozambique, according to the Independent Newspaper. 

September 2, 2008

Ethanol is a stepping stone

This is interesting, and  would be more interesting if there were a measure of how much diverting corn into ethanol (25% of the corn crop in 2007 produced 2.65% of the US total demand for gasoline in 2006) had an effect on prices of food. Northey is right. Corn ethanol has to be a transitory technology. But the US will need  to find ways to get ethanol from the field to the pump. Where is the infrastructure going to come from, who's going to build the pipelines. And at the end of the day how much real difference will it make if there is no corresponding increase in fuel efficiency? 

September 3, 2008

Desert greenhouses could harness the sea to grow bioufels

Greenhouses in desert areas near the sea could be used to grow a range of plants including Jatropha according to Guardian Unlimited. The answer lies in using the sun's energy to evaporate sea water... 

Miscanthus research in Iowa

The Iowa State University is looking hard at Miscanthus as a potential biofuel feedstock, says the Des Moines Register.

Miscanthus, on the other hand, holds the potential to make up to 2times as much ethanol per ton as corn. A University of Illinois study in 2005 showed that using corn or switchgrass to produce enough ethanol to offset 20 percent of gasoline use -- a current federal government goal -- would take 25 percent of current U.S. cropland out of food production.

That's got to be better than corn: a technology that takes two bushels of food out of the equation for every three that are processed into ethanol.

September 4, 2008

Indian Sugar cane to ethanol: a study

Thanks to Draka for this information on the state of ethanol production in India from Current Science.
As Draka says, in a comment below, sugar cane takes a lot of water to grow.

How to grow more corn: Plant it closer together

You might have noticed that there are a couple of conversations chuntering on in earlier posts. Mostly these deal with the ability to plant enough corn to sustain the US ethanol business and keep people fed at a reasonable price.

Here's breakthrough that is stunning in its simplicity from Iowa Farmer Today: plant the corn closer together.

No really. Its that simple. No details on increased water requirements, or fertiliser needs in subsequent years. Its an idea from Monsanto.

How much stover to leave

Iowa Farmer Today (I should take out a subscription I'm quoting the publication so much at the moment) has a good piece looking at how much stover should be left on the fields after corn harvesting. Stover could be good source of cellulose for cellulosic ethanol in a couple of years time. But there are issues about the soil's ability to maintain itself if significant amounts of organic material are removed each year.

September 8, 2008

Africa a green gold rush

Africa is becoming a the next battleground for biofuels, according to an article in Speigel on-line. The story was pointed out to me by David Benson, a regular commenter on the blog.
To me it points out the need for informed free consent by the people affected to the deals that the biofuels companies are offering. It also points up the robust ethical approaches that companes should be taking to ensure that locals are not squashed by people in power in the countries that they want to operate in. It also points up the need for transparancey in the payments that companies make in the processes of gaining permits and permissions.

I do take issue with the idea that small farmers are the best way to exploit the African land. Look at Zimbabwe as an example of what happens when industrial farming for cash crops is replaced by susbistence farming... Ok the situation is complitcated by the kleptocracy which runs the country.

I wonder if any of the companies mentioned in the Speigel on line would like to story would like to respond?

September 9, 2008

Independent Newspaper in biofuels debate

The UK's Independent Newspaper has started a debate about biofuels. There are some forums where you can comment. It's quite lively.

McCain opposes ethanol subisdies

With around eight weeks to go to the US presidential election, John McCain will be campaigning on ending ethanol subsidies... I'd missed that, I was rather distracted by his Moose-hunting running mate. 

September 10, 2008

Abengoa gets 2% discount on new Plant

Abengoa bioenergy has persuaded the State of Illinois to put $4m towards the cost of a $200m biofuel plant to be built at Madison, Illinois, according to the St Louis Business Journal. That will be in addition to other state and local tax exemptions.

Ethanol to power in Pakistan

There's an interesting story about Pakistani sugar cane growers making ethanol to power an electricity generation station from the Associated Press of Pakistan. Could this model be used elsewhere?
Thanks to rsteenblik.

Solazyme algae-based biofuel ok for Jet fuel

Solazyme's algae-based biofuel is ok for Jet fuel, according to Domestic Fuel. Solazyme received more funding last month, and plans to build a commercial scale factory some time in 2010. 

September 11, 2008

Looking at the economics of distillers grains

Nice piece in the Sioux Falls Argus Leader looking at the way that sales of distillers grains is helping to support the ethanol industry in the US.

Historically, distillers grain represented 10 percent of an ethanol plant's revenue stream, said Jerry Shurson, an animal science professor at the University of Minnesota. Today, it's closer to 20 percent to 25 percent, he said.

Which is nice to have, but if the volume of ethanol keeps on growing then the supply of distillers grains will continue to increase. This might reduce the price of distillers grains, but since it takes about three pounds of corn to produce about one pound of grains (the other two are converted to ethanol and carbon dioxide gas), this may not matter because producing ethanol and distillers grains takes corn out of the market.

Not all of the people in the report are happy about that. Especially those who live a long way from distilleries.

Kraft food leads biofuel fightback

The CEO of Kraft Foods is leading a fightback against ethanol subsidies in the US, according to Huffington Post. 

Poet to make cellulosic biofuel by year end

Poet LLC, formerly Broin, says it will be making cellulosic ethanol at a plant in Dakota by the end of the year, according to a report in Iowa Farmer Today.

It looks like Poet will be using DuPont technology, under an agreement signed in 2006 to make the ethanol. Poet gained funding from the US Department of Energy in 2007 to peruse the technology. The firm has been working with harvesting machinery firms to develop machinery that will take the corn cob as well as the corn off plants without significantly slowing harvesting.

Poet will be taking a leaf out of the Brazilian ethanol business by citing its cellulosic ethanol plants next to traditional refineries.


Looks like one of my predictions made in January will have been proven wrong about four years sooner than I thought. I'd be quite happy about that.


September 15, 2008

Friends of the Earth and Brazil's sugar cane producers come to verbal blows

Friends of the Earth and Brazil's sugar cane producers come to verbal blows in a report on Autoblog green. FOE accuses the Brazilians of monocultre that damages the environment and the Brazilians respond.


EU Parliament's decison to change its biofuel approach worries Malaysians

The European Parliament's decision to change its approach to biofuels has worried the Malaysian government, accroding to a report in Bernama.com.

The Euroepan parliament decided on 11 September that there would be a binding 5% quota on the use of biofuels across Europe by 2015 but that there should be less emphasis on palm oil, soya oil and other edible sources of biofuels. You can read all about it at Euractiv.com. For me (and, I'm sure, many in the biofuel businesss) the key passage in the Euractive report reads like this:

What's more, the parliamentary committee is demanding that, before 2015, a full review of the whole EU biofuel promotion policy and its social and environmental impacts be carried out to determine whether the targets need revising. This review should "focus on consequences for food security, biodiversity and the availability of electricity or hydrogen from renewable sources, biogas or transport fuels from ligno-cellulosic biomass and algae," the text reads. 

This flies in the face of much of the current thrust of European biofuel industry, and will create uncertainty in the market. That is not completely a bad thing. The difficulty for many existing companies and the trade associations that represent them centres around their needs to keep shareholder/proprietors happy quarter to quarter and year to year. The Parliament, by voting in this way, is hoping to develop a rounded robust biofuels sector that will have little or no impact on food supplies. This has to be preferable in the long term to a biofuel sector that competes for food crops.

The one thing that I don't like about the vote is that it adds in electricity and hydrogen. I especialy doubt that hydrogen will be a sustainable fuel untill we develop bacteria/algae to produce it from organic material without generating carbon dioxide. Hydrogen is bad because it is currently made using electicity, so the process is less efficicnt than electricity production. There is little or no infrastructure in place to get hydrogen to the point of need. 

The European Parliament's powers vary from area to area, for example, if this decision is seen in the context of agriculture, then parliament can only give its opinion to the Council of Ministers. If its a non-sensitive area then the Council and Parliament have to agree. If there are any experts in the rolls of Council and Parliament out there, I'd like to hear from you.

So where do the Malaysians fit into all of this... They are concerned that the poposed increases in carbon savings that are also included in the parliament's decison will leave palm and soy oil out in the cold. They might neet to lobby national governements, or be much more imaginative.


US on track to deliver second biggest ever corn crop

The US is on track to deliver the country's second biggest ever corn crop, according to numbers from the US department of agriculture and reported on ICIS news.

(Disclosure: I work for ICIS: About ICIS)

My pal William Lemos' report says:

The USDA said in its monthly report it expects 12.07bn bushels of corn in the 2008/09 crop year. That projection compares with a crop of 13.1bn bushels in 2007/08, the record harvest by US farmers.

USDA expects ethanol producers to consume 4.1bn bushels of corn in 2008/09. That projection is unchanged from a month ago. In 2007/08, the US used about 3bn bushels of corn to produce ethanol.

That's around 34% of the crop to make ethanol, and by my calaculation that will reduce the amount of corn or corn products like distillers grains available for food use by around 2.7 bn bushels, taking the effective crop level closer to 10bn bushels.

I don't know what the long term effect that will have on the price of corn, but on Friday last week, when William wrote his story, he tells us

The USDA raised its 2008/09 average corn price forecast by 10 cents/bushel to a range of $5.00-6.00/bushel (€3.60-4.32/bushel) in its latest report. US corn prices as assessed by the USDA averaged $4.25/bushel in 2007/08.


September 16, 2008

Rape seed plants can clean up toxic soil with a bacterial injection

Rape seed plants can clean up toxic soil with a bacterial injection, according to my colleague Doris De Guzman on Green Chemicals Blog.

The with suitable injections of bacteria, the plants grow faster and can help remove heavy metal residues such as lead and cadmium from contaminated land.

What is not clear from this is whether the heavy metals are captured by the bacteria or find their way into the seeds of the plants or whether it would be possible to separate them out safely. I don't think the world needs pre-leaded biofuels does it?

Wal-Mart supports cellulosic research

Wal-Mart has made a donation to Arkansas Biosciences Institute at Arkansas State University to help fund biomass to ethanol research, according to Domestic fuel. This should help the Institute gain funding from the Department of Energy.

That's interesting, about 10% of the US total polyethylene is moved through Wal-mart stores one way or another, I wonder if the retailer is examining ways of converting that into fuel too. Although that's off topic. ahem.

New Generation biofuels plans to list on Nasdaq

New Generation Biofuels plans to move its listing from the American Stock Exchange to Nasdaq and has announced plans to build a 50m gal/year plant in Baltimore, Maryland.
New Generation says it will be making second generation biofules from oils and animal fats. The firm produces a biofuel emulsion in water. That looks like an interesting technology to me.

September 17, 2008

National Algae Association

I've just been pointed at the US-based National Algae Association, which recently appointed Will Thurmond as Chairman, Research and Development Round table. Membership of the organisation is $750/year Researchers can join for £250. 

September 18, 2008

Schafer says phases out ethanol incentives

Secretary of Agriculture Ed Schafer told a meeting in Kansas on 11 September that the blenders tax credit and the tariff on imported ethanol should be phased out when domestic production gets to 34bn gal/year, according to Good Fuels, which goes into a discussion of the semantics of  subsidies vs incentives.

At least Schafer called a spade a spade, even if his time frame is rather long for my tastes.

Interview with Geoff Broin CEO Poet

The industrious chaps over at earth2tech have secured an email interview with Geff Broin, ceo of Poet industries which recently announced plans to build a cellulosic ethanol plant by the end of the year. He's a big fan of subsidies, and makes a good point about the economics of processed food. 

What he doesn't do/wasn't asked in the interview :
1.  Talk about the larger global picture of corn use in ethanol driving up the price of grains globally, nor
2. Talk about the viability of cellulosic biofuel production that involves stover in terms of soil fertility and structure. I don't know if he was asked that, but it would be interesting to find out. 

Consumers want greater fuel efficiency

This is a little old, and I'm only linking to it now for our American readers, the Europeans, will of course be on top of this sort of thing... There is a recent poll which shows there is considerable appetite for greater automotive fuel efficiency in Europe. In fact there is :

overwhelming support among citizens for measures to force carmakers to reduce the fuel
consumption of the cars they produce by 25 per cent without delay.

Does anyone know if there are similar sentiments in the US?

I notice, also from T&E that enough signatures have been collected in Switzerland for a referendum on banning SUVs.

Shell is involved in six new biofuel research ventures

Shell announced on 17 September that it was involved in six new research agreements for biofuels. This builds on a number of piecemeal announcements including an interest in a Hawaiian biofuel from algae venture and an agreement with Codexis.

The best thing for the second generation biofuels sector would be for another petechm titan, to do the same.

September 19, 2008

Wall St shockwaves travel through ethanol: Updated

Wall St shockwaves are hitting a number of companies in the Ethanol business says Reuters in a report last Wednesday.

The report looks at  Aventine and Verasun and the impact of a capital squeeze and rising corn prices. Management in those firms, and many more, will be working hard over the next few months. Verasun, is, in fact. looking at strategic alternatives, and has retained Morgan Stanley (which is doing the same at the moment, for itself) to help it with the process.
In an 8K filing with the SEC Verasun says.

Based on these assumptions, and excluding the impact of other factors, we would expect to incur a net loss for the third quarter of 2008 in the range of between $63 million ($0.40 per share) and $103 million ($0.65 per share).

Pherhaps it could be a partner for one of the big corn dealers?

Hattip to Greentech media


Wall st shockwaves travel through ethanol

Wall St shockwaves are hitting a number of companies in the Ethanol business says Reuters in a report last Wednesday.


The report looks at  Aventine and Verasun and the impact of a capital squeeze and rising corn prices. Management in those firms, and many more, will be working hard over the next few months.

September 23, 2008

Ethanol videos from RFA

The US renewable fuel association has launched two adverts full of ethnolic goodness.

Faces and Places . These ads are pretty simple to the point and interestingly set in Texas.

There's also a video clip on the RFA website about how great it is to produce 9bn gals ethanol/year from corn on the RFA website. For the record, the US used around 175 bn gal of fuel in 2006.

If that video had been produced in the UK it would have used Elgar's Pomp and Circumstance March as the soundtrack*. Get over yourselves: it's just ethanol.

*apologies, this his spirited rendition seems to have been recorded in the middle of the brass section.

September 24, 2008

US almost out of corns stocks by harvest 09

The US will be almost out of corn stocks by harvest 09, according to Phil Brasher in the Des Moines Register. You must read the article it points up the complete failure of corn to ethanol as a sensible economic or fuel policy.

Key quote 1

Corn supplies are projected to fall by one-third to just more that 1 billion bushels, or about one month's consumption, when harvest starts next fall. Supplies could be even tighter; many analysts think the latest production forecast is overly optimistic.

Surely the first responsibility that a government has to its people is to try and feed them, not allow them to drive around cheaply How low will stocks go? That's not a limbo dance that I want to watch. What's that going to do to prices and the economic viability of corn ethanol?

Key quote 2

But the real key to keeping the United States from running short on corn and soybeans may lie in South America, and how many acres farmers in Brazil and Argentina plant to soybeans in coming months. If they increase acreage significantly, that could ease soybean prices and steer U.S. farmers to more corn next spring, economists say.

Surely the key to keeping the United States from running out of diesel and gas may lie in the middle east. If those countries ramp up production indefinitely the price of oil will remain constant and the US will be able to drive around at $1/gal indefinitely.


Ogallala Aquifer still emptying

The Ogallala Aquifer is still emptying, according to a piece in Red Orbit, which is long, thorough and cites a number of different sources.

What is it and why am I bothered? If you've been paying attention since I started this about two years ago you'll have noticed that I'm very interested in water and I'm particularly interested in the Ogallala aquifer because it supports much of the farming and biofuels industry in a band in the mid-West from Canada to Texas.

When its empty its empty, the thing fills very slowly and its already down about 40% on the level when farming started in a big way.

Hattip to Nuprana

Interesting Algae Links

In the spirit of not repeating what others have done I'd urge you to look at this post on the Biofuels and Straight Veg Oil forum about algae. It brings together some interesting resources about algae research in the US. 

September 25, 2008

Syngenta unveils tropical sugar beet in India

Syngenta has unveiled a new tropical sugar beet that produces around as much sugar as cane, the company says. The crop matures in five months and uses less water than cane.
This could be useful for ethanol production in the tropics.

More on the High Planes/Ogallala aquifer

Here's more on the High Planes/Ogallala aquifer from Paradeep, one of the regular contributors to the blog.


A corny car

corn-car.jpg
Sue, my colleague, found this picture of a corn built car on the Gas 2.0 blog in a post about Dow Chemical and Ford Motor Co and the future of fuels and motoring.

About September 2008

This page contains all entries posted to The Big Biofuels Blog in September 2008. They are listed from oldest to newest.

August 2008 is the previous archive.

October 2008 is the next archive.

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