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October 9, 2006

French biofuel farmers to the rescue!

According to the BBC the President of France, Jacques Chirac says non-food crops should be at the heart of European biofuels policy and France should get around 10% of its fuel needs from Biofuels by 2015.

But he doesn't want the Common Agricultural Policy (a bone of contention between countries with weaker farming lobbies and France) modifying before 2013.
According to the BBC the President of France, Jacques Chirac says non-food crops should be at the heart of European biofuels policy and France should get around 10% of its fuel needs from Biofuels by 2015.

But he doesn't want the Common Agricultural Policy (a bone of contention between countries with weaker farming lobbies and France) modifying before 2013.


It is not clear if he is including bioethanol from substandard, subsidised and overpriced French wines in the equation...

October 11, 2006

Potential size of UK biofuels from crops

Chris Rhodes’ Energy Balance blog has an interesting insight into how bioethanol could feature in the UK's future fuel mix. Rhodes examines some of the UK's Royal Society of Chemistry’s Policy Bulletin on Energy Policy (published October 2006).

I think he sums up the current situation quite nicely when he says:

There is no way we can produce enough ethanol to match our current level of fuel use, either using biomass waste or without compromising our food production. There is no way we can produce enough ethanol to match our current level of fuel use, either using biomass waste or without compromising our food production.

His calculations are worth a look.

November 1, 2006

Brazil plans to increase the proportion of bioethanol in gasoline

Sugar Cane

Bioethanol has been a mainstay of Brazil's fuel economy for some time, now the country plans to increase the amount of ethanol in gasoline from 20% to 23% soaking up nearly 310m litres from 20 November. This follows a request from the sugar alcohol sector, which wanted the mixture to be increased after a bumper crop of sugar cane.

The picture is by Joao Paglione

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November 2, 2006

The high price of cellulosic biofuels

The high price of cellulosic biofuels from cellulose, corn stalks basically, is some way off. This story from Reuters and found on Planet Ark explains why, and why it may not be such a good thing for farmers or food production. Quoting from the report:

The US Department of Energy has estimated the cost of producing a gallon of cellulosic ethanol is about US$2.20 per gallon, about twice the cost of producing ethanol from corn.

While Martha Schlicher of Renewable Agricultural Energy, who should be pretty pro this sort of thing says...

Farmers have a narrow window to harvest corn for grain. A second harvest to cut stalks and leaves would not only take more time but could hurt future yield potential by compacting soils and removing potential nutrients

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Continue reading "The high price of cellulosic biofuels " »

November 6, 2006

Two biofuels from the same feedstock

VeraSun, a large ethanol producer says is developing a process to squeeze biodiesel out of distillers grains as well as extracting ethanol from them in technology which seems to complement that unveiled by people like Abengoa Bioenergy, Dyadic International , Broin, DuPont and Novozymes. The firm looks to be squeezing as much as possible from the grains VeraSun says taking oil from distillers grains both increases the value of the oil for fuel use, and enhances the resulting distillers grains as a livestock feed by concentrating protein and reducing fat content

and it is

currently evaluating locations for a 30-million-gallon-per-year biodiesel production facility, with plans to commence construction in 2007 and begin production in 2008. The Company has contracted with Lurgi PSI for design and engineering services for the biodiesel facility and with Crown Iron Works for oil extraction equipment. As a result of the exclusivity provisions in these contracts, VeraSun expects to be the first to develop large-scale facilities using this technology. The Company has also filed a provisional patent application with the U.S. Patent Office for the production process.

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November 7, 2006

Biofuels and the market

Bioethanol and biodiesel markets are not working properly at the moment. The product prices probably do not fully reflect the input costs of making the fuels in many locations. There are signs on Making Biodiesel, a blog about making biodiesel, that bioethanol makers may be facing a rude economic awakening…
Such is the excitement about bioethanol in America , where some 50 new plants are estimated to be in the planning stages, that corn futures prices last week reached 10-year highs
. I’m not sure about the 10 year highs, but I’ve managed to pull off the futures price of corn for the last few days and it is spectacularly up from about 250 to 380 in a couple of months. (Here’s an RSS feed for the corn price data) .If that is being driven by hoopla about new bioethanol plants coming on stream in the next couple of years in the US (and there are tiny amounts scheduled to be produced in the next couple of years, compared to the volume of gasoline) then this is a something that the bioethanol industry had better get itself together to explain to people why the cost of their bread, bear and breakfast cereal is heading upward over the next couple of weeks. The other thing I saw which made my hair stand on end was this…
At present D1 makes biodiesel from soya imported from South America , but has high hopes for jatropha, a crop that produces an inedible plant oil and can be grown on marginal land.
They’re importing soya from South America into the UK to make biodiesel! Hardly sustainable. Let’s hope the firm’s Jatropha groves work out. No matter how much less carbon dioxide biodiesel produces compared with traditional diesel, most, if not all of that will be wiped out by shipping it across the globe. http://www.icis.com/blogs/biofuels/archives/2006/11/world-energy-outlook-to-2006.html

November 10, 2006

Bioethanol and Brazil

Infinity Bio-Energy, from Bermuda, is investing $700m in Brazil as part of its plans to produce 1 billion litres of ethanol by 2009 . The juice is for export, company CEO Sergio Thomson-Flores is quoted as saying on Biopact.

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November 13, 2006

Ethanol makers, ever wondered about the price of starch?

Ethanol makers, have you ever wondered about the price of starch that you could use for fermentation? Dr Will's newish website about tapiocia and a range of other commodities in Thailand will point you in the right direction. I'll be watching this...

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Sugarcane yeilds set to soar

Quoting from the World Ethanol meeting in Amsterdam last week, organised by FO Lichts the Energy blog talks about the yield from sugar cane increasing over the next few years

If this is true, it seems that countries in the tropical and semi-tropical climates have a huge advantage when their ethanol is compared to corn ethanol and will continue to have an advantage compared to cellulosic ethanol. The energy advantage combined with their labor cost advantage are a powerful combination.

The comments are worth looking at in terms of the amount of fertiliser that will be needed to maintain yields and what it might do to the soil.

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November 15, 2006

Corn-fed chicken or corn-fed bioethanol plants

chickensTo the People has latched on to the fact that there is only so much wheat to go around in the US and that diverting it into increased ethanol production will help push up the price and along with that the price of things that depend on it including... chickens.

For free marketers it seems to have taken a little while for the penny to drop.

picture from www.hopefulhomestead.com

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November 20, 2006

Central Bio-Energy plans more bioethanol for Nebraska

Central Bio-Energy, LLC (CBE), a Nebraska-based firm, announced today that it plans to invest more than $500 million to build three 100 million-gallon/year ethanol plants in Seward, Howard and Chase counties in Nebraska. The announcement was made in the Nebraska State Capital Rotunda in Lincoln. These plants will employ 150 full-time staff, with combined annual payroll in excess of $6 million. This investment will make CBE one of the leading ethanol producers in Nebraska, officials said. Projected annual revenues, when all three plants are operational, will approach $600 million.

Brett Frevert, chief financial officer, said

Each plant will purchase approximately 40 million bushels annually, or 120 million bushels in total providing a tremendous boost to the local corn markets.

So the farmers will be happy. What will taking 120m bushels of corn out of the market for every 300 m gallon/year production do to the price of corn?

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November 24, 2006

Check this site for corn-based goodness

As a journalist I know that one of the best sources of information can be associations. A new friend from Cargill I met at the 2006 European Biofuels Forum, suggested I should take a look at the US National Corn Growers Association might be worth a look. It is full of good corn-related stuff. I've posted it to del.icio.us along with a bunch of other links to sites I like. You can share them with your biofuel friends too.

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Mozambique on the biofuels map

I've just come across a site from Mozambique outlining a range of biofuel crop options for that country. The organisation behind it Mozambique Bio-Fuel Industries, is promoting Jatropha and Cassava.

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December 1, 2006

ethanol from cassava in Java

Ethanol from cassava is one route people are trying the the tropics. Biopact says this today:

Farmers in four districts in the Indonesian province of West-Java will begin growing cassava for a first bioethanol project in the region, a local official told state news agency Farmers in four districts in the Indonesian province of West-Java will begin growing cassava for a first bioethanol project in the region, a local official told state news agency

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December 5, 2006

Size of US ethanol market

The US ethanol market is growing rapidly, according to the US Corn Refiners Association in its report Corn, Part of a sustainable environment, production has increased from 1.1.bn gallons (4.2bn lires) in 1996 to 5bn gallions in 2006, with around 106 plants on line capable of producing 5.8bn gal/year, and 45 are in the construction or expansion stage, which could add 3.4bn gal to capacity. In addition, 114 plants are proposed, which could add a further 7bn gallons of ethanol possible taking the total to around 15.5bn gallons

If I were being pessimistic, I'd suggest that this will be just enough to disrupt the market, up the price of corn, damage aquifers and make almost no difference .The density of alcohol is 0.7856 so the weight of a litre of ethanol will be 785.6 grammes. This gives a total weight of alcohol that could be produced, if all the new capacity comes on stream, as 46bn tonnes, about 10% of the total volume of gasoline that the US uses annually at the moment.

But ethanol contains less energy than gasoline about 25MJ/kg compared to about 45MJ/kg for gasoline, comparing the two we find that the volume of ethanol will replace about half that of gas. In energy terms its about 5% of the volume of gasoline.

Assuming that other markets -- like food -- aren't more attractive for corn growers, that the price of oil stays pretty high and that no new technology comes along...

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December 13, 2006

Biofuels: some questions to be faced.

Is fuels ethanol bad for the evniroment and are biofuels a dead end?

Here’s the pay-off to a Q& A between John Philpott of Grist magazine and David Pimentel, professor of entomology at Cornell.

Philpott: A lot of earnest people support biofuels as a way to reduce greenhouse-gas emissions and displace fossil fuels. What do you tell them?

Pimentel: Conserve! One word. And no one talks about it, including the environmentalists. When these people talk about biofuels providing us with our energy, they need to look at the facts right now. Eighteen percent of all corn is going into ethanol production. We're getting 4.5 million gallons of ethanol. That's 1 percent of U.S. petroleum use. It's 1 percent.

If we use 100 percent of U.S. corn, and we won't do that, but if we used 100 percent, what would that do for us? Six percent. And ethanol is being subsidized at 45 times the rate of gasoline.

It’s a pretty comforting to see that my quick calculations were not to wide of the mark (ok so the mark was pretty wide) in this run round the houses on some of the key biofuel questions.

One fact surprised me :Plants collect 0.1% of all the sunlight falling on them, for instance.

Pimatel also emerges from the piece as a fan of organic farming, I’m not sure there’s enough manure in the world for that to be a really sensible position. But if we used organic crops to produce ethanol then the energy balance would be much more favourable… Trouble is, in the UK at least, these are premium products and cost more than inorganic crops.

Taking his arguments to their conclusion we would do better to grow plants, dry them in the field and burn them for energy than converting them to alternatives for gasoline or diesel.

But his talk about conservation struck a chord with me. Would you buy a smaller, less featured car if it were going to cost you less to run, and helped to conserve resources

December 15, 2006

A schoolboy error

I've just had a nice email back from David Pimentel. He likes the blog and pointed out that you need legumes not manure for organic agriculture to work.

Once again I should have

Continue reading "A schoolboy error" »

December 20, 2006

Nigeria needs tonnes of cassava

The ambition by Nigeria to achieve 10 percent ethanol for fuel can only be attained when production of cassava grows to about 7 billion kilograms annually, acording to Peak Oil.com

January 4, 2007

Harvesting second generation biofuels

Iowa State University is developing a dual-stream, single-pass combined harvester that separates corn stover (stalks, leaves and cobs) from the corn, according to the Energy Blog.

January 5, 2007

There ain't enough corn and there ain't going to be enough, neither

From an agricultural vantage point, the automotive demand for fuel is insatiable. The grain it takes to fill a 25-gallon tank with ethanol just once will feed one person for a whole year. Converting the entire U.S. grain harvest to ethanol would satisfy only 16 percent of U.S. auto fuel needs.--Earth Policy Institute

About two days after Democrats in the House of Representatives appeared to be preparing to divert $5bn in to subsidising more biofuel plants in the US, the New York Times has an article predicting that up to 50% of the US corn crop could be used in bioethanol in the future and that grain prices could go  interstellar.

The NY Times is quoting a report by the Earth Policy Institute: Distillery demand for grain, vastly understated:  which says

Continue reading "There ain't enough corn and there ain't going to be enough, neither" »

Virginia's farmers like biofuels

Virginia's Farm Bureau Federation, which looks pretty much like a well organised lobbying group to me, has produced this video suggesing one direction that biofuels could go in the future. It's part of something called Vision 25X25, which I will investigate further.

January 16, 2007

Philippines to grow biofuels for China

The Philippine and Chinese Governments have signed memoranda of understanding enabling large areas of the Philippines to be turned over to biofuels production for Chinese consumption according to BioPact.com

January 17, 2007

Every member of Congress now has discovered Ethanol

According to FarmPolicy.com every member of congress now has discovered ethanol.

Clearly prohibition is dead as a political concept in the US. Thank heavens it wasn't anything stronger.

More seriously though, FarmPolicy continues

“Some U.S. officials including some at the Energy Department worry that U.S. farmers won’t be able to grow enough corn to meet higher clean fuel targets.

“Thanks to the ethanol boom, the U.S. corn surplus will shrink to a precarious 752 million bushels — a three-week supply — before this year’s crop is ready for harvest, the U.S. Agriculture Department said last week.

You can also expect soya bean prices to rise as around 10% of the current area of that crop may be switched into corn production to meet the demand for fuel ethanol.

Worth exploring the rest of that post!

January 22, 2007

Flood could push palm oil price up

A flood in Malaysia's Johor province could push the price of crude palm oil up according to the Star on line. That could make biodiesel less competitive

Too much ethanol might flood the market

Philiip Brasher in  Energy News suggests that theremore ethanol could be produced in the short term than US drivers are able or willing to buyy.

He doesn't talk about the spiking price of corn tho'...

January 26, 2007

More fall out Ethanol from corn

Commodity trader is advising its users to go long into Soya beans following the dash to ethanol announced by Bush the other night... you can't get away from it at the moment.

January 30, 2007

Biofuel and food costs

I  asked Undersecretary Dorr yesterday at the Biofuels Finance Forum in London yesterday, about the price of corn for 2006 and received a politician's answer. The straight forward Canadian's took the pig by the tail and have been wondering what the effect of diverting corn will be on their pig industry.... they're not exactly wallowing in muck over it and expect that diverting corn in to ethanol will drive up the price of food.

February 20, 2007

Ethanol drives farmland price inflation

According to the Londonist blog, demand for farmland in the Americas is pushing the price of this commodity up faster than it is rising in London.

Demand for corn used in ethanol increased the value of crop land 16% in Indiana and 35% in Idaho in 2006, government figures show. The price of a Soho loft appreciated only 12%, while a pied-a-terre in Islington near London's financial district gained 11%, according to realtors.

So if you want to get into farming to grow corn for ethanol, wait  for one of two bubbles to burst...

February 23, 2007

Mike Johanns talks farm policy

US secretary of state Mike Johannes recently spoke about farm policy to the International Trade Association.

He talks about ethanol and sugar at some length. The Q&A is the best bit.

Latin America's farmers get ready for boom time

Meanwhile, Latin America's farmers get ready for a biofulled boom in prosperity, according to Biopact. Lets not get carried away, its a boom compared with poverty compared to moderate affluence North of the Mexican border. As Biopact says.

Farmers throughout Latin America - from Mexico and Brazil to Argentina and Ecuador - feel as if they have just won the jackpot. Some of them had ceased production years ago, because the (non tariff) trade barriers and US subsidies were too high to compete with their American counterparts. But now, they are entering the market again and are reaping unprecedented profits. If the US were to reduce its barriers, their fortune would grow bigger still.

February 26, 2007

Syngenta expects amylase-corn by end 2008

Syngenta hopes it will be able to produce a GM corn that can express amylase, which improves the fermentation of corn starch to sugar by the end of 2008, according to John Baker in ICIS Chemical Business magazine.

(Disclosure: I work for ICIS. About ICIS)

Please email me if you would like copy of the article at

simon.robinson@icis.com

Corn, ethanol and pricing

The price of beer will rise because of the US' move into ethanol from corn, according to Today's Financial Times  which contains a story about  Jean-François van Boxmeer, chief executive of Heineken, a Dutch brewer, he warned last week

that the expansion of the biofuel sector was causing a "structural shift" in agricultural markets.

One consequence could be a long-term rise in the price of beer, the FT warns because. Barley and hops account for 7-8 per cent of brewing costs.

That story is lurking behind a subscription wall, but there's something similar about Heineken, and the price of beer on Associated Content.

In sterling terms the price of a pint of wallop has gone up from 63p when I started buying pints of Marston's Pedigree bitter (a good 25 years ago)  to close to £3 in the trendy bars on Sutton High Street, where I work. That's an annual rise of around 6.5% without corn being diverted into ethanol driving the price of alternative grains up.

This is, as I've said before, good news for growers and bad news for everyone else. I find that I'm forced to agree with the Radioactive Communist Zombies blog that should cellulosic ethanol take off then Senators, and Representatives from the corn belt will be hollerin' for

protection in the form of either higher subsidies for corn-based ethanol, or taxes on cellulosic based.

So should the market set supply and demand or should governments skew demand and supply...

February 28, 2007

Biofuels good for biotech employment

I guess two plus two equals four. If you say you want more biofuels made with new technology, then you're going to have to employ more people taking that technology to another level. That point is not lost on Jim Greenwood, president and CEO of the US Bio Technology Industry Organisaiton.

He says

We can achieve the President's ambitious alternative fuel standard by using industrial biotechnology to both increase current ethanol production efficiency and make even more ethanol from cellulosic feedstocks such as corn stover, fast growing trees and wood chips, and dedicated energy crops, including switchgrass.

We all win

Biofuels good for biotech employment

I guess two plus two equals four. If you say you want more biofuels made with new technology, then you're going to have to employ more people taking that technology to another level. That point is not lost on Jim Greenwood, president and CEO of the US Bio Technology Industry Organisaiton.

He says

We can achieve the President's ambitious alternative fuel standard by using industrial biotechnology to both increase current ethanol production efficiency and make even more ethanol from cellulosic feedstocks such as corn stover, fast growing trees and wood chips, and dedicated energy crops, including switchgrass.

We all win

March 15, 2007

World Bank's Wolfowitz wants US ethanol tariff to go

Joining those who call for a removal of the US ethanol tariff is, Paul Wolfowitz, the president of the World Bank, according to Ethanol Brasil.

Ethanol Brasil continues:

Wolfowitz called for the US to remove the ethanol tariff in a statement came at a conference in London on financing low-carbon energy, and it will increase the pressure on President George W. Bush to take action.
Wolfowitz, a former influential member of the Bush administration, also called for "a global framework" on cutting greenhouse gas emissions and for more aid to the poor for adapting to climate change.

This isn't whine whine, any more than the US Brazil agreement was a win:win. This is a serious call from a serious former aide to Bush  for the Americans to get its trade position realigned.

Helping the poor help the rich (and themselves)

Helping the poor help the rich (and themselves) has got to be one of the better things to be doing in life. Now this rugged philanthropy has entered the world of biofuels.

Over On Biopact, they're writing about the International Crops Research Institute for the Semi-Arid Tropics' plan to help farmers in those regions, mostly in Africa and Asia to produce biofuels, which could be used locally or exported. (Tariff walls permitting)

ICRISAT's research on ethanol for biofuel from sweet sorghum (Sorghum bicolor (L.) Moench)  and biodiesel from pongamia and jatropha crops, is not only ensuring energy, livelihood and food security to the dryland farmers, but also reducing the use of fossil fuel, which in turn can help in mitigating climate change. These crops meet the main needs of the dryland farmers - they do not require much water, can withstand environmental stress and are not that expensive to cultivate.

April 2, 2007

Big corn crop may not curb prices

The US looks likely to have the largest area of its land under corn since 1944, but the big corn crop may not curb prices, according to the Wall St Journal.

The US Food Bill farming and fuel

Dan Imhoff, he explains how the farm bill links the US farming, food and by extension biofuels through state aid for crops like corn, cotton, wheat, soya and rice.

April 26, 2007

Food, fuel and water -- who decides?

Food, fuel and water -- who decides? Adding his weight to the food vs fuel argument is Mike Stones on Food for Thought, a Farmers Weekly blog. He quotes Henry Fell, chairman of the UK commercial farmers union who believes quite strongly that relying on food imports is a mistake.

What do you think?

May 1, 2007

Integrating dairies and biofuels

Another integrated dairy ranch and biofuel facilty is being built in Arizona, according to Biodiesel and Ethanol Investing.

May 16, 2007

US Farm Bill 2007

The US Farm Bill 2007 will underpin quite a lot of US agriculture through subsidies and price supports --  which make it hard for non US farmers to compete in that market. It must be one of the largest pieces of social engineering in the world. So it is interesting to see Senator Tom Harkin, quoted as saying by Bill Thompson in the Wall St Journal online .

"When I talk about energy and I talk about cellulose, you know, switchgrass can be a commodity... It may not be a commodity now, but in the next five to 10 years it could be a very big commodity ... Why are commodities just limited to what we've done in the last ... 50 years? Maybe there are new commodities out there we should be investing in."

Harkin, separately spoke about the Farm-to-Fuel Investment Act, in a press statement. He said:

The Farm-to-Fuel Investment Act, would provide transition assistance for farmers to grow dedicated energy crops (crops like switchgrass grown solely for the purpose of producing energy).

"When we draw our energy from farm fields and other renewable sources here in the U.S., and reduce our dependence on the oil fields of the Middle East, that is a win, win, win for America. This bill charts a course for initiating the extensive production of biomass feedstocks while continuing to protect wildlife and promote sound soil and water conservation practices. I commend Senator Klobuchar for her work to push additional biofuels production from biomass and the contribution she is making to the debate on the new farm bill."

Is the Senator right? I'd love to hear your views on the Farm Bill and on the Farm to Fuel Act.

Hattip and deep bow to Farmpolicy.com, which will be added to my reading list.

Just how politically sustainable is using food for fuel in the US?

Just how politically sustainable is using food for fuel in the US. There's an interesting post over on dtn Ag Policy Blog (limited trial, and limited access, I had to pretend to be Canadian) about the sustainability of the US' Biofuel policy.

The key lines for me are

USDA Chief Economist says that the rising prices of US agricultural commodities like corn and soya "will not boost food prices enough to harm consumers."

Their Washington insider says:

[Collins']  conclusions depend on a good harvest both this coming fall, and 2008. USDA believes that the additional acres and yield growth will provide for the growth in demand, and could even rebuild stocks a little.

The dtn Washington Insider pointed me towards Berkshire Hathaway. The investment firm recently held an annual meeting. Someone there could be the small boy in the Kings's New Clothes by Hans Christian Andersen, its either the person who asked about ethanol or Warren Buffet's deputy, Charlie Munger, who said, according to the Minneapolis StarTribune.com

"Running cars on corn is about the stupidest thing I ever heard of... Our government is under tremendous political pressure even though it makes no sense."

So we have a political decision to turn food into fuel, that is uneconomic and could put one of the world's largest countries at risk of rising food prices or worse if the weather is bad. Am I missing something, and is Charlie right? Let me know.

June 4, 2007

Switchgrass and domestic heating

Check this out

June 5, 2007

Biofuels could be very good for third world: UN

Biofuels could be very good for the third world Gustavo Best head of energy policy at the U.N. Food and Agriculture Organisation, talking to Reuters.

He draws an interesting parallel with the Green Revolution of the 1960s:

"It's probably the best opportunity there has been since the 'green revolution' to bring really a new wind of development in rural areas," Best says.

He goes on to explain that biofuels could offer new cash crops for farmers in the developing world.

What he doesn't do is discuss tariff and invisible barriers to trade that could make it hard for exactly these people to get their biofuels to large markets.

June 13, 2007

BP is crossing the oil bio divide

BP is crossing the oil bio divide, according to an interesting post on Biopact about BP and Mendel collaborating on rapid growing grasses for cellulosic biofuels.

June 18, 2007

Oregon's academics say ethanol is a waste of effort

Oregon's academics say ethanol is a waste of effort in a report published recently and discussed on the Onward Oregon Blog

Our George Seldes says

Whether you care about the phony issue of "energy independence," the very real issue of global warming, or you are concerned with preparing for an energy scarce future after peak oil, the result is the same: money spent subsidizing biofuels could be far better spent on other things that pay off far better for your goals
.


There are some interesting estimates of the energy value of corn ethanol, canola diesel and cellulosic ethanol. It would have been interesting to see a comparison of using biomass to generate steam and then electricity as another alternative. Has anyone got any data on this?

It's hard to disagree with George's suggestions for cheap easy ways to reduce the impact of cars on the environment in his state. One thing that is strange is the idea of gas station attendants, the pace of life in Oregon sounds much more pleasant than central London. Why can't cars have sensors fitted that display tyre pressure to the driver? Any suggestions?

June 20, 2007

UK farmers and biofuels

UK farmers and biofuels get showcased in this excellent video from Farmers Weekly Interactive.

June 26, 2007

Chicago board of trade offers monthly agricutlural updates

The Chicago Board of Trade is offering monthly global agricultural market up dates, from 15th of each month.

More thoughts on biofuels and inflation

There are some more thoughts on biofuels and inflation over on the Dry Creek Chronicles. The article pulls together some of the threads affecting pricing of food and changes in farming practice int the states but it doesn't address knock ons in terms of stress to the land, and water resources in the medium term. In the longer term ethanol/biofuels from cellulose could offer a better solution, but the real need is for Americans to conserve gasoline and buy more fuel efficient cars.

June 28, 2007

If you're worried about losing soil, perhaps you should read this

If you're worried about losing soil perhaps you should read this book from Earth Policy News. EPN says the book looks through the ages at the effects of over farming land through a lack of irrigation, over grazing and growing crops in marginal areas... a subject that could become more important as greater volumes of corn are grown for ethanol...

Does the no-till method of growing corn really get round the problems of soil erosion and could it be used in areas where there is currently soil erosion? Is that a question or the basis of a PhD thesis in agronomy? Let me know.,

July 3, 2007

Brazilian government liberates sugarcane workers from slave like condidions

The Brazilian government liberated sugar cane workers from slave like conditions yesterday, according to a report on ICIS news.
(Disclosure: I work for ICIS: About ICIS)
1100 people were released in the first move on a sugar cane field since 2005. A government source said:


“We are faced with a modern type of slavery through which workers have to pay their employers to keep their jobs”

The sugar cane used for ethanol production is mostly harvested mechanically, according to an industry source, so the chance of the ethanol industry being shut down is remote, the source said.

There is no excuse for using people in this way.

July 4, 2007

Jatropha: is it really a crop?

I thought that I'd take a look at Jatropha to see what all the interest from companies like D1 and BP is about. One thing that I've been wondering about is how much like a cropping plant, such as apples, wheat, rice or soya is it. One of the characteristics of these plants is that they all more or less produce ripe fruit at the same time as a singular annual event. This has advantages, none of the crops that I've mentioned would ever have made them the stars of dining tables across the world.

Jatropha

Continue reading "Jatropha: is it really a crop?" »

Biofuels are changing agricultural economics

Biofuels are changing agricultural economics according to the OECD and the UN's Food and Agriculture Organisation in a report on ICIS News.
(Disclosure: I work for ICIS: About ICIS)
This is

Continue reading "Biofuels are changing agricultural economics " »

July 11, 2007

Mallow for tomorrow?

Over on environmental graffiti they are lauding the seashore mallow. It is an oily plant that grows in salty land (with a fair amount of water), and would allow biofuels to be made from a crop which is not also used as a food source.

To steal a quotation:

It is according to John Gallagher of the University of Delaware, “the pig of the vegetable world, you can use everything but the squeal.”

July 20, 2007

UK has enough land to meet RTFO says NUF

The UK has enough spare land to grow crops that would enable the country to meet its Renewable Transport Fuel Obligation, according to a post over on FWi's Food for Thought blog.

Charles Abel says

Significantly, the NFU estimates that the UK has sufficient land available to meet the RTFO (Renewable Transport Fuel Obligation) target for 2010. About 5% of UK petrol supply would be provided by the bioethanol equivalent of 3m tonnes of wheat, about the same amount as we export. We also need about 5% of diesel use, which could be met by 2.7m tonnes of oilseed rape, roughly equivalent to reserves of set-aside and fallow land.

It would not be surprising if the same situation is replicated over Europe. Currently farmers are paid to leave land fallow under a process called set aside. Golf courses are one use for the land, industrial crops would be another. Europe's farmers are pretty keen to be able to get something useful off set aside land, as I wrote about earlier this month.

August 1, 2007

Argentina progresses biofuel from seaweed

Argentinian companies are progressing with a process to produce biofuels from seaweed, according to ICIS news.

Argentina’s Oil Fox and Biocombustibles de Chubut have teamed up to produce and export biodiesel from seaweed, according to president Jorge Kaloustian of Oil Fox.
He added.
An undisclosed Swiss partner will bankroll the project with a $60m (€44m) investment, Kaloustian said in an interview.

"Is going to be the first biofuel of this type in the world", Kaloustian said.

Seaweed will be worth watching. Japanese researchers have been looking at the process.

August 15, 2007

Small scale Jatropha cultivation

Small scale Jatropha cultivation over on Advantures in Sustainability. The wonder plant is cold resistant.

Farmland prices are rising

Farmland prices are rising because of biofuels, according to the New York Times.

DEKALB, Ill. — While much of the nation worries about a slumping real estate market, people in Midwestern farm country are experiencing exactly the opposite. Take, for instance, the farm here — nearly 80 acres of corn and soybeans off a gravel road in a universe of corn and soybeans — that sold for $10,000 an acre at auction this spring, a price that astonished even the auctioneer.
An interesting story, but is it a bubble? Of course this makes it more expensive to integrate back to the soil.

August 28, 2007

Biofuels and poorer harvests mean UK meat prices set to rise

Biofuels and poorer harvests mean that UK meat prices are set to rise, according to reports on the BBC this morning. The BBC has missed a key point here, UK farmers will not be badly disadvantaged compared to farmers in other parts of the world.

The weather does not seem to have been particularly good for crops worldwide this year, and we are taking increasing volumes of food crops and turning them in to biofuels. This combination, will help to drive up food prices globally, over the coming years unless second generation fuels, which are based on cellulose come on stream, and unless there is a much more significant increase in fuel efficiency.
If things continue as they are, then by 2020 the European Union may see 18% of its total wheat and soft grains crops being diverted into biofuels, according to Planet Ark earlier this month.

September 3, 2007

More on biofuels and food

There's more on biofuels and food in this interesting piece by John Vidal in the Guardian last Wednesday. Amongst other things he says


In the US, where nearly 40 million people are below the official poverty line, the Department of Agriculture recently predicted a 10% rise in the price of chicken. The prices of bread, beef, eggs and milk rose 7.5 % in July, the highest monthly rise in 25 years.

"The competition for grain between the world's 800 million motorists, who want to maintain their mobility, and its two billion poorest people, who are simply trying to survive, is emerging as an epic issue," says Lester Brown, president of the Washington-based Worldwatch Institute thinktank, and author of the book Who Will Feed China?


I could have written it myself, but I'm intrinsically too optimistic.

September 4, 2007

Malaysia's palm oil crop is hit by bad weather

Malaysia's palm oil crop is hit by bad weather, according to a report on AFX. The harvest looks to be about 14m tonnes compared to 16.5m tonnes predicted earlier in the year. That's not going to help biodisel production economics. Neither is the news, further down the article that Malaysia is running out of land to plant palm oil on.

September 7, 2007

The linkages between oil and soy prices

The linkages between oil and soya prices, and, more broadly, the link between food and fuel prices is investigated in this report by Judith Taylor, on ICIS News

(Disclosure: I work for ICIS: About ICIS)

Quoting from Judith's report for ICIS News.

Crude oil prices in the $70s/bbl mean refined soybean oil prices in the 40s cents/lb are the "new normal", Henry Bryant of Texas A&M University said on Thursday.

"With the expansion of production of renewables such as ethanol and biodiesel, the implication is that corn and soybean oil prices will be determined from the product's energy value as these increasingly become energy feedstocks," Bryant added.

The linkage is there and its going to get stronger. Do you want to live in a world where the price of crude determines the price of food? We need to push on with second generation biofuels and the use of non-food crops. It will matter less to more people if the price of corn stover is linked to oil, than if the price of food crops becomes more firmly linked to oil, currently at around $70/bbl and capable of rising.

wheat and biofuels (again)

There's an interesting round up of the interaction between crops and biofuels over on >living more than.com

September 17, 2007

China Philippine deal could lead to more deforestation

Up to 8.8m hectares (33, 980 square miles) of the Philippines could be turned into biofuel plantations under an agreement between the Phillippine and Chinese governments, according to IBON, a Philippine consultancy quoted on ABS-CBN interactive.

Last week, the Department of Agrarian Reform had announced it was looking at 400,000 to 500,000 hectares of land for agribusiness development under a memorandum of agreement with China signed January 2007. But the deals could ultimately cover as much as 8.8 million hectares of “idle alienable and disposable lands and forest lands.

"The RP-China farm deals may also threaten the country's food security as more and more lands are shifted from food staples such as rice, to production of crops for biofuels. Since the mid-1990s, the country is already completely a net food importer from being a net food exporter in earlier years," IBON said in a statement.

THE PATSADA KARAJAW NATION blog says

expect more agricultural lands be converted to growing “hybrids” for China and jathropa for bioethanol than our staple food, thereby threatening our country’s food security.

Food security comes in a number of guises, growing your own or being able to afford to buy food from other countries. If the market for biofules takes off and if the contracts are written so that prices reflect world prices and if the people who work on the plantations are properly paid, then that would produce a kind of food security too.

October 8, 2007

Crop prices hit records in key grains

The UN's Food and Agriculture Organisation published its most recent crops prospect and Food Situation Report. Key findings to chew over as you go to the report:

The global cereal supply and demand situation has continued to tighten in recent months, reflecting the deterioration of prospects for the 2007 world cereal production, which nevertheless is still expected to reach a record high. However, on current indications, this year’s harvest would only just meet the expected level of utilization in 2007/08, thus precluding a replenishment of cereal stocks, which are anticipated to remain at very low levels.
Record maize harvests were confirmed in South America, with production of Brazil increasing by one-quarter from last year’s good level. A record maize crop is also in prospect in Mexico, the largest producer in Central America. These good crops reflect expansions in plantings and exceptional high yields.

But in its press release the FAO says:

Maize prices are also well above last year’s levels, despite the bumper crop materializing this year, mainly reflecting continued strong demand from the biofuel industry.

It will be interesting to see if the set aside land in the US and European Union will be capable of delivering the additonal extra crops needed to meet biofuels demand...

October 19, 2007

Five things I didn't know about Pongamia before today

I only heard about the possibilities of using a bush called Pongamia as biofuel crop today when I came across the International Water Management Institute's (IWMI) report on water use and biofuels. The IWMI says it might be a suitable biofuel crop... It certainly looks rather nice.

434555352_c465eecbb0_m.jpg
picture from Binux on flickr

1. It is a hardy blighter and grows well in wet, dry and saline soils. It fixes nitrogen and its seeds are 30-40% oil, and it's widely grown in India .
2. It is a flowering shrub, like wisteria.
3. It travels under a number of names and is also called Indian Beech, Pongam, Honge, Ponge, and Karanj.
4. The British Standards Institute studied it in India in the 1930s and it was proposed as a diesel alternative.
5. People have trans-esterified it's oil into biodiesel with properties close to ASTM diesel standards.

November 23, 2007

George Monbiot's take on biofuels

UK Columnist George Monbiot has turned his gaze on the global bifofuels business, and doesn't like what he sees.

He makes some pretty good, if uncomfortable points about wealthy people's ability to pay more for food than the poor. He does miss the point that in Swaziland, where there is a shortage of food and cassava is being grown for fuel, the argument may not be quite as simple as he put it.

Using cassava ethanol would enable the country to import less oil based gasoline, which would leave the government with more money to subsidise staples or to buy food from overseas. Alternatively, farmers could sell the crop themselves.

Of course people have to have the land to do it and their legal title to that land has to be respected.

January 2, 2008

Subsituting soy for corn leads to deforestation in Brazil

Subsituting soy for wheat leads to deforestation in Brazil, according to story in Science just before Christmas. According to the Smithsonian Tropical Research Institute'

many American soy farmers are shifting to corn to qualify for the government subsidies. Since 2006, US corn production rose 19% while soy farming fell by 15%.


Its worth reading the short extract on the Smithsonian Tropical Research Institute's website by William Laurence

January 7, 2008

Food vs Fuel a Scottish perspective

There's an interesting , if long in the Sunday Herald a Scottish newspaper, about how the interplay between food and fuel could play out.
The key points of Kenney Kemp's article is that not all countries have more land to farm

The bad news for Scotland is that its farming industry is not in a position to help us avoid rising world food prices by producing more food for ourselves. For one thing, Scotland doesn't have any extra farmland. This is illustrated by the fact that in 1997, the total area under cultivation was 5.5 million hectares - and 10 years later this was about the same.

He adds:

From 1974 until 2005 food prices on world markets fell by three-quarters in real terms, with obesity and gluttony exploding simultaneously. But the days of the great grain mountains appear to have come to an end.

Prediction: look out for more stories like this in the press as the year progresses.

January 8, 2008

Switchgrass is sustainable and energetically favourable

Switchgrass is sustainable and energetically favourable, according to a story in Technocrat, reporting on the Science Now magazine article Biofuels on a Big Scale.

January 9, 2008

There's a wave of approval for switchgrass

There's a tide of approval out there for switchgrass as a biofuels source following an article which appeared in Science Now and reported briefly here on the basis that switchgrass is energetically sustainable

Typical is James Hudnall in his official site in a post no corn for oil, he says:

The idea of using food crops for energy is a bad one to begin with. There are plenty of alternatives. As I’ve said before, switchgrass is the answer. It’s cheaper to grow, takes less energy and less pesticides and fertilizer and it can grow on land unsuitable for farming.

Over on Ecoworld we had a little reality check in switching to switchgrass

According to the BBC report, “One acre (0.4 hectares) of the grassland could, on average, deliver 320 barrels of bioethanol.” That suggests (320 x 640) that 204,800 barrels per year per square mile would come from this switchgrass - an improbable amount. So we called one of the study’s authors, Dr. Ken Vogel at the University of Nebraska, to ask him to clarify this number. It turned out the BBC reporter had mixed up barrels and gallons. The researchers had actually estimated switchgrass can yield 4,896 barrels per square mile per year.

and there's a pretty straight report on Green Car Congress.

January 10, 2008

ADM, Bayer and Daimler love biofuels

ADM, Bayer and Daimler love biofuels, according to this story from ICIS News, written by Mark Watts.

(Disclosure: I work for ICIS: About ICIS)

It is interesting to see an engine maker, a major chemicals player, and one of the world's biggest corn companies getting together to look at a tropical shrub. In what is good news for jatropha growers. Mark says:

Bayer Crop Science said it planned to develop and register herbicides, soil insecticides and fungicides for disease and pest control of jatropha plants

Which should help yields and might make jatropha more commercially attractive. I wonder if Bayer Crop Science will be smart enough to develop pesticides and fungicides that permit other crops to be intermingled with Jatropha to help the economics of plantations.

January 15, 2008

Calls for cutting the US ethanol subsidy to cut price of US milk

There is a call in the US to cut the ethanol subsidy to help reduce the price of milk. One one hand it looks like a lot of cattle in the US are fed on corn, not wholesome grass... On the other, the volume of corn that's going into ethanol in the US is beginning to hit consumers in their pockets.

January 18, 2008

More on Pongamia

I was sent a link to Roshini Greener Biofuel, an Indian company which specialises in plantations of non-edible oils.The firm sees considerable scope for these plantations, particulalrly Pongamia in arid parts of the world.

January 25, 2008

UN FAO has more doubts about biofuels

Over on Greenbang, there's an interesting comment on the UN Food and Agriculture Organisation's latest thoughts on biofuels and the spike they are causing in agricultural commodity prices.
http://ap.google.com/article/ALeqM5hIipI7rsh-IaoutsJKgAmzG5Mh0gD8UBKQ6O1
Its worth reading the report on Regan Suzuki's comments on the effects that biofuels could have in terms of the competition for agricultural land, water and human rights.

The FAO is very much on the side of poor farmers and quite right too.

For what it's worth I think, the development of biofuels must be done with the free informed consent of the current land holders and tennants.
If it is then there is a chance that these poor farmers will be able to grow cash crops that will be used to make fuel for developed countries. That extra income could enable them to move away from the poverty associated with subsistence farming and build a coalition of need between the poor and the rich. (making the poor richer in the process).

This will only work though if there is a free and open market in biofuels, and providing we can manage the transition. In the short term I think that it will be difficult because of the low level of grain reserves.

January 31, 2008

Tapioca shortage may hit china's biofuels

According to a report on reuters, China is facing a tapioca shortage which may hit the country's bioethanol business.
This looks like demand has outstripped supply, in December 2006 ust over a year ago the Chinese government saw the biofuel potential of non-food crops and Chinese people were being exhorted to plant non-food crops, including cassava (from which tapioca comes) to provide a bedrock for biofuels production. I guess, like everywhere else appealing to peoples patriotic duty is less effective than appealing to thier wallets.

March 6, 2008

How much land will we need for biofuels in the UK

There's a useful exchange in Hansard, the UK's parliamentary record this week on biofuels. In a written answer. Ian Pearson (MP for Dudley South and the Secretary of State for Environment, Food and Rural Affairs) says that to meet the Renewable Transport Fuels Obligation using existing technology we'd need to plant between 1 and 1.5bn ha (405m to 608m acres) of crops compared to 209,000ha in 2005.

In other news, the Department had a sofa worth £350 (approximately) stolen in 2006.

Hattip to Biofuelwatch

April 30, 2008

Fertilizer and biofuels

The New York Times has discovered that you need fertiliser to grow corn. The august organ has also discovered that not all the nitrogen fertiliser gets absorbed by the plants and that it can run off into rivers and cause dead zones where these discharge into the sea. Thanks to uncorrelated.

May 20, 2008

Now big food is using underground campaigning against ethanol

 

Now big food, in the shape of the US Grocery Manufacturers' Association  is using underground campaigning against ethanol, according to DesMoinesRegister.com ,which is printed deep in the heart of the US cornbelt, Iowa. The website reports Agriculture Secretary Ed Schafer saying

"Underground things that have been going on for several weeks to generate the public opinion that some of these things (biofuel incentives) ought to be changed."

He was talking about the US Grocery Manufacturers' Association. The report says:

That organization, which represents such household names as Coca-Cola, Kellogg, Kraft and General Mills, hired a public relations firm operated by former Clinton administration associates to win support for freezing or rolling back a newly enacted mandate for ethanol usage.

The Grocery Manufacturers' Association has been concerned about the rising price of corn and other food stuffs for at least a year.

In May 2007 I wrote that US grocers want an end to US corn subsidies and tariffs.

So this isn't new. What is interesting is the line that the paper is taking. The report links the unnamed lobby group with "Clinton Administration Associates" which will probably push a few buttons (and looking at the comments on the original piece has). I'll see if we can get more detail would have made this much more plausible. .

New scientist says non-food biofuel crops are weeds

Non-food biofuel speceis are invasive, according to the New Scientist.  Of course they are, they're weeds. If people don't eat plants or the subtances they produce and if the plant is not in someway ornamental, then its a weed.

On the brigher side, they should grow quickly, so yeilds should be high.

May 30, 2008

Biofuel, climate change and poverty: three sides of a triangle

In an interview with Reuters, UNDP Administrator Kemal Dervis, who runs a development network covering 166 countries, called for coordination to cope with spikes in food prices and an integrated strategy for development and climate change.

He makes a number of good points.

June 23, 2008

Possible biofuel crops for Mozambique

A preliminary study on biofuel production in Mozambique has suggested that the most appropriate crops to use would be sunflower, sugar cane and sweet sorghum, according to a repot in allAfrica.com. The report points out the difficulty of trying to grow a fuel crop which is also a food crop:

Iberol had intended to produce biofuels from sunflower, but the chairperson of the Nutasa group, of which Iberol is part, Joao Rodrigues, told the Portuguese news agency LUSA that it had run into "many difficulties", notably the theft of the crop at harvest time, and the shortage of skilled labour.

Rodrigues blamed this on "social problems", notably food shortages among the population. "How can I make vegetable oil for fuel when the people living in front of the plantation don't have oil to make food?", he asked. "It didn't go well, and it's not worth wasting any more effort".

June 25, 2008

What effects will the midwest floods have on corn?

Interesting piece on Maribo about the likely effects of the recent floods in the US on the corn crop and the trade off between fuel and feed.  There's more on it at the Press-Citzen.com with a report by the Iowa secretary of agriculture

June 30, 2008

Gulf of Mexico deadzone all bad for biofuels?

Interesting piece over on Maribo about the way that flooding in the Midwestern US could lead  to a big increase in the size of the dead zone in the Gulf of Mexico. This is caused each year when excess fertiliser is washed out of farmland along the Mississippi, flows into the gulf and feeds algae which grow quickly taking oxygen out of the water. Sounds nasty, but if the algae were concentrated enough, wouldn't it be possible to make a virtue out of disaster by harvesting the alge and taking the biofuel out of it? 

1 bn acres of unused agricultural land world wide could produce biofuels

1 bn acres of unused agricultural land world wide could produce biofuels, according to the Stanford News Service in a piece called Feeding and fuelling the future: the bioenergy potential of reviving abandoned agricultural land.
The authors estimate that this is about a quarter of the total agricultural land in use. Land is abandoned for a number of reasons, but plants could fix nitrogen and carbon to help them recover as well as provide biofuels.

July 2, 2008

Switching to switchgrass isn't easy

Switching to switchgrass isn't going to be easy, according to this useful piece from redorbit. Worth reading. 

Is the price of corn related to the price of crude?

Is the price of corn related to the price of crude? Many in the US ethanol business say that it isn't this chap isn't so sure...

 

July 3, 2008

Biofuels push 260m people in to hunger, ActionAid

The charity Action Aid estimates that 260m people have been driven into fuel poverty by biofuels in a story reported in today's Guardian Unlimited.

Dr Claire Melamed, ActionAid's head of trade policy says.

"The world needs to start again and plan properly. If biofuels are to play a part in a renewable energy strategy we must ensure that they benefit the environment and that poor farmers and consumers are not harmed by their use."

Melmand was talking in an Action Aid publication, Biofuels in the firing line. This is strong stuff from people who professionally worry about the poor. Perhaps we should look at the amount of biofuel growth we've got planned over the next couple of years.

July 14, 2008

Biofuels and the whole of non-meat farming

Andy Posner, over on the Huffington Post raises some good questions about land use in a world where we're increasingly using biofuels.

I suggest in a comment that perhaps a little high-fructose corn syrup should be fermented to ease the US obesity crisis.

Fat chance of that happening then.

July 15, 2008

The high cost of corn in the US is choking off demand from ethanol producers

The high cost of corn in the US is choking off demand from ethanol producers, according to a report in the Des Moines Register. The report goes on to add that around 1.6bn bushels of corn will be left from last year's harvest compared to earlier forecasts of 1.4bn bushels. 

July 16, 2008

Ethanol subsidies could be safe for a while

Ethanol subsidies could be safe for a while.There's a really nice explanation of why subsidies are hard to abolish in Price of Oil: Hidden Oil Subsidies from Tree Hugger.com and on Huffington Post. I couldn't put it any more clearly than in the first paragraph.


July 23, 2008

1000 entries and what have we learned?

Put out the flags. I've reached the 1000 post mark. I started this in October 2006 with an open if sceptical mind. Its been a lot of fun so far. I've met a whole bunch of people who have commented on what I've written and offered suggestions and I'd like to thank you for that. I've also come to some conclusions about biofuels in my first 1000 posts on this topic. So here's my take on the state of the biofuel industry at the moment.

That there's a lot of misinformation.

That there's real potential for biofuels to make a difference, at least locally, in the developing world and building bridges between the world's rich and poor nations.

That there is a lot of waste that could be converted in to fuel, if we can persuade society to do it.  The Ineos story, is a good example of what might be possible.

That there is not enough edible oil in the world to keep America on the road for more than three months (and there'd be no fried food).

That you can only use old cooking oil for biodiesel economically as a home brewer if there's no serious competition for it.

That America needs to improve the fuel efficiency of its vehicle fleet more quickly than it is probably capable of doing.

That second generation biofuels are an excellent idea in principle, but are still some way off.

That the price of food is almost certainly linked to the availability of raw materials, but global trade in food muddies the water.

That once people become accustomed to subsidies its hard to wean them off.

That farmers are one of the biggest and toughest lobbies in the world (see the last point).

That weeds are potentially biofuel crops (Jatropha, Pongamia ).

That sweet sorghum is underrated as a potential biofuel.

That algae could be used to sequester the carbon dioxide from power generation plants ( so could clever chemical catalysts).

That Corn is good on the cob and Gallagher is largely right

Right, I'd better get on with the next one...

August 29, 2008

A biofuels polemic from Huffington Post

If you are interested in the environmental impact of biofuels in the US check this polemic on the Huffington Post. Makes some good points about the end to end efficiency of biofuels in the automotive sector. You can't comment on it there, so perhaps you'd like to do so here.


US ethanol replaced about 2.6% of gasoline demand

US this year diverted 24.5% of its corn crop into ethanol production and replaced 2.65% of the total US demand for road transportation fuels -- assuming that the 2007 figures for fuel use will be around the same as 2006, according to figures from the US Department of Energy which has issued preliminary ethanol production figures for 2007.  These show that in 2007 the US produced 6485 m gal ethanol -- 49.6% of the world total --  and imported 361 m gal. Total consumption was 6846m gal. This displaced 4642 m gal of gasoline, based on preliminary data.

The US used 24.5% of the corn crop (3200m bushels) in the process.

According to the US department of Transportation, American road vehicles consumed 174 930m gal gasoline in 2006. Those numbers are likely to be updated in April 2009 for 2007.

All of this helps to put the current US pro-corn lobby lunacy into perspective. It also shows how little difference incremental planting and incremental improvements in crop yeild will make in the short- to medium-term. The last thing the world needs is the demand for grains to be getting close to the production levels of grains.

This also shows just how massive the demand for fuel is and how pathetically small attempts at growing our way out of oil dependency based on one type of technology are. If the entire corn crop were diverted to make ethanol, it would only replace 10% of demand.

 We all need to be a lot smarter about the kinds of things that we use for fuel, things like food waste and municple waste should be examined quickly and thoroughly. We should throw less away without getting the additoinal benefit from it. We should, through taxation if necessary, price gasoline at a level which reflects its true economic value and then we'd have an incentive to make all road vehicles much more efficient. That's easy for me to say, I'm not standing for office. .  

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 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.


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?

September 18, 2008

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. 

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

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.

October 2, 2008

Could Russia become a biofuel superpower?

This is a bit of a long shot but reading this report in the UK's Daily Telegraph about Russia using big a good harvest as a foreign policy tool, got me thinking about the possibility of it becoming a biofuel superpower.

While the trust of the article is about a record wheat harvest, this paragraph sparked that thought.

Experts believe that Russia has huge potential for growth - millions of acres of farmland lie fallow and vast expanses of fertile land have never been farmed at all.

There would be hurdles to overcome, notably around the concepts of title and separations between the judicial, executive and legislative branches of government, but it might be a country that could develop a crop-based biofuels industry.


October 6, 2008

US Biofuel farmers could benefit twice from cap and trade

I think that farmers in the US might be able to benefit twice from some carbon cap-and-trade proposals, according to this piece from the Des Moines Register. First they'd have to move to no-till planting and secondly they'd have to get some kind of a share of  the credit from the biofuel producers. Looks interesting though. 

Corn estimates down in the US

The US Department of Agrculture has lowered its estimates of the volume of corn and soy that will be harvested this year. So 2008 will only be the second largest crop in history. It might have been higher if the weather had been better. That story's in the Des Moines Register. You should subscribe to Phil Braser's articles if you want to know what's going on in the breadbasket of the US. The paper has a story about the need to be cautious about new cellulosic technology too.

October 7, 2008

Now Silkweed is a potential biofuel

Silkweed is a potential biofuel, according to a website connected to a local TV station in Vermont. Silkweed is good for butterflies. It will be planted by Innovation Fuels, which it will turn into biodiesel. 

October 8, 2008

Webinar on US grain outlook

Part of CBOT is offering a free webinar on the outlook for the US grain harvest this year today at 2-3pm central US time. That's two days before the US Department of Agriculture is due to release  USDA Crop Production and Supply and Demand report on October 10th.

Biomass could get tight from 2030

Researchers In Denmark have been looking hard at the amount of biomass that will be available for biofuels after 2030 is going to become tight. This is what they say in a peer-reviewed paper in Environment Science Technology, produced by the American Chemical Society.


We show that toward 2030, regardless of whether a global or European perspective is applied, the amount of biomass, which can become available for bioethanol or other energy uses, will be physically and economically constrained. This implies that use of biomass or land for bioethanol production will most likely happen at the expense of alternative uses. In this perspective, we show that for the case of a new advanced bioethanol technology, in terms of reducing greenhouse emissions and fossil fuel dependency, more is lost than gained when prioritizing biomass or land for bioethanol. Technology pathways involving heat and power production and/or biogas, natural gas or electricity for transport are advantageous.


There's more, but you have to subscribe. The bit that interests me is the parts about heat and power production, that is static power generation. I guess there could be real benefits in this area because potentailly at least you could build power plants in the middle of agricultural areas. There would be transmission losses, but this would probably be less than the energy needed to transport liquid fuels around.

FAO wants biofuel support examined and outlines world biofuel capacity

The United Nation's Food and Agriculture Organisation wants subsisidies, tariffs and tax-breaks for biofuels production examined and possibly reduced in a press release which marks the publication of its annual report The State of Food. That report makes a compelling case for the use of cellulosic routes to biofuels, and by implication for much greater fuel efficiency. In the press release, the FAO argues that:

"Current policies tend to favour producers in some developed countries over producers in most developing countries. The challenge is to reduce or manage the risks while sharing the opportunities more widely."The FAO puts the total share of the world fuel market supplied by biofuels at 2%. It also makes a point that this blog has made on numerous occassions in the past that

If developing countries can reap the benefits of biofuel production, and if those benefits reach the poor, higher demand for biofuels could contribute to rural development. "Opportunities for developing countries to take advantage of biofuel demand would be greatly advanced by the removal of the agricultural and biofuel subsidies and trade barriers that create an artificial market and currently benefit producers in OECD countries at the expense of producers in developing countries,"

Burried at the end of chapter 1 of the State of food  is this gem...

The potential for current biofuel technologies to replace fossil fuels is also illustrated by a hypothetical calculation by Rajagopal et al. (2007). They report  theoretical estimates for global ethanol production from the main cereal and sugar crops based on global average yields and commonly reported conversion efficiencies.

The results of their estimates are summarized in Table 3. The crops shown [wheat, rice, maize, cassava,sugar cane, sorghum and sugar beet] account for 42 percent of total cropland today. Conversion of the entire crop production to ethanol would correspond to 57 percent of total petrol consumption. Under a more realistic assumption of 25 percent of each of these crops being diverted to ethanol production, only 14 percent of petrol consumption could be replaced by ethanol. The various hypothetical calculations underline that, in view of their significant land requirements, biofuels can only be expected to lead to a very limited displacement of fossil fuels. Nevertheless, even a very modest contribution of biofuels to overall energy supply may yet have a strong impact on agriculture and on agricultural markets.

My emphasis. Biofuels can only make a marginal difference to the world's energy demands using current technology, and as I wrote earlier today, second generation technologies around cellulose will become increasingly costly in future.

Should we be downhearted?

No!

There is real scope for biofuels to make a difference, providing that we use the right combination of technologies, we use the right feedstocks and we trade them in the right way. That is fairly across borders using a genuine free market without hidden subsidies or corruption. 

I'm going to say it once again, we as a society must  get to grips with fuel econonmy in all of its guises, from better home insulation and higher building standards to building cars with greater fuel efficiency.

Hattip to c-questor.

October 14, 2008

Listen to Barak Obama's take on biofuels

You can hear Barak Obama talking about biofuels on Good fuels. 

October 20, 2008

Ethanol doubts in the heartland

It is worth checking out a story in the Des Moines Register, posted on 17 October by Dan Piller Ethanol cos. hurt by prices may get help from USDA. Read the comments.

Biofuels from timber, perhaps you should be in Vienna now

Oh the things you find out too late to do much about. That's what comes of thinking strategically of other things. Anyway. It's European Forest week at the UN Food and Agriculture Organisation in Rome. NOW. The website says

European Forest Week 2008 celebrates the contribution of European forests in mitigating climate change, providing wood and renewable energy, securing the supply of fresh water and protecting our environment.

|'m trying to get hold of a biomass to fuel paper.


October 22, 2008

Distillers grains and cattle.

OK this is slightly off beam, but a lot of people are very keen of feeding distillers grains to cattle. For some ethanol plants it is the most profitable part of the business.

Animal husbandry is not an area that I know much, if anything about. At home we struggle to keep goldfish alive above three months. (Each one a tragedy.)

But I came across a good, if long piece of writing to the next Farmer In Chief in the New York Times Magazine the other day. I've been wondering what to do with it, and I guess it was Ensus' new website that prompted me to look at the effects of feeding protein and phosphorus-rich food to heifers. I am not trying to take a pop at Ensus, they're just the most recent example of this thinking that I've come across.

It turns out that there is no advantage or disadvantage to feeding distillers grains to dairy heifers. According this on eXtension

The primary advantage in feeding distillers grains to dairy heifers is cost. There are no known biological or nutritional advantages or disadvantages associated with feeding distillers grains to dairy heifers. Research trials in which distillers grains were fed to heifers observed normal growth rates, normal reproduction, and normal subsequent milk production.

For me one of there is a lot of resonance in Michael Pollan's article, especially the part about flying over a brown land, which much of the US is for much of the time (based on series of flights at different seasons to random times across the US in the past 10 years). I am also impressed with his quote:

As Wendell Berry has tartly observed, to take animals off farms and put them on feedlots is to take an elegant solution -- animals replenishing the fertility that crops deplete -- and neatly divide it into two problems: a fertility problem on the farm and a pollution problem on the feedlot. The former problem is remedied with fossil-fuel fertilizer; the latter is remedied not at all.

I don't think of my self as particularly a champion of the organic food movement. Cheap food has enabled many in the west to avoid malnutrition, partly through fertiliser use. Organic food is often the preserve of the wealthy, beacuse it has not been possible to produce it on the scale of industrial food.

Maybe we need a middle way between these extremes with smaller farms closer to centres of population and inorganic fertiliser application used to supplement rather than replace fertilisation using animal waste. At least part of this Pollan  recommends.

Would benefit farmers to grow a range of crops across their farms rather than being reliant on monocultures of individual crops, if only to spread the risk.

Enough of this, I'm heading right back onto the beam.


October 23, 2008

Meatpackers say aid to ethanol plants would be unfair and discriminatory

US meat producers are saying in the Des Moines Register that aid to ethanol producers that are facing trouble because of movements in the price of corn over the previous year would be unfair and  "would be a startling new development that discriminates in favour of one segment of American agriculture,"in a letter to the US secretary of agriculture.

This is a new front in the ethanol-from-corn industry's battle to stay profitable/in business.

October 24, 2008

Corn price rise: speculative bubble

The Reuter's person on the spot at the Chicago Board of Trade says the price rise corn experienced this year was due to a speculative bubble caused by money moving out of stocks into commodities.
The price is falling as the economy is changing. Of course there's no discussion on the effect of reducing the volume of this year's harvest by 20% by allocating 30% of that harvest to ethanol will have on price.

October 27, 2008

Credit crunch may make it harder for farmers next year

The credit crunch may make it harder for US corn farmers to maintain overdrafts, raise loans and fund farming next year according to to this report from Bloomberg. 

November 3, 2008

Syngenta in high yeild sugar cane development

In a statement issued late last week, Syngenta said it is developing a new technology to dramatically improve the cost efficiency of sugar cane planting in Brazil. Syngenta´s innovation would reduce planting costs per hectare by some 15%, driven by a novel approach to grow sugar cane from smaller cane segments using proprietary treatments. The technology is planned for launch in 2010 under the brand name Plene™ and has a market potential of $300 million per year by 2015.

This potentially make corn ethanol look even sicker as a long term answer to fuel replacement. But I can equally see US farmers asking for the 54cent/gal import tariff from Brazil to be raised to repel the threat from much more economic ethanol. I don't think that diverting sugar to ethanol is such a bad idea. Most of the time sugar is used for sweetness, not calories. Unlike corn.

November 4, 2008

Jatropha plantations for Florida--Biofuels Digest

A report in Biofuels Digest says that My Dream Fuels is aiming to plant around 900 000 jatropha trees in Florida. The firm says that its trees will mature in 8 months and significantly out perform wild Jatropha strains. My Dream Fuel is already working with Lee County, Florida and hopes to be able to power the county's fleet of vehicles using a combination of jatropha and cooking grease.

This looks interesting: an Indian Peuto Rican joint project to bring biofuel from Jatropha to the US. I wonder if the trees are genetically modified.



November 18, 2008

Corn is the foundation of US fast food.

Interesting, if off topic, Maribo has piece on the way that the US fast food industry is built on corn. I'll have the corn with a side of corn, too. 

December 1, 2008

Biofuels are sticking point for EU renewable policy

According to ReutersThompson Biofuels have deadlocked the EU'a renewables policy. 

Philippines sugar industry gets new biofuel grading

The Philippines Sugar Regulatory Authority has decided to set up a new classification for sugar to be used for biofuels. It looks like a way of properly accounting for sugar which would otherwise be counted as exports.
Sugar production in the 2007-2008 crop year hit a 25-year-high of 2.455 million tonnes, which resulted in a surplus of some 611,000  tonnes according to Business World Online. 

USDA wants biorefinery grant requests for new technologies

The USDA wants requests for loans to build biofuel plants that do not use corn starch as the raw material starting point.

The Biorefinery Assistance Program provides loan guarantees for the development, construction and retrofitting of viable commercial-scale biorefineries producing advanced biofuels. The maximum loan guarantee is $250 million per project subject to the availability of funds.

Preference is given to commercial applications of new technology...


December 2, 2008

Dynamotive in stover to biofuel process in China

A Dynamotive press release today says that Dynamotive is involved in a project to use pyrolysis to convert corn stover into liquid biofuels in China...

I've said it before that this kind of pyrolysis could prove to be the wayahead in converting corn waste into biofuels. I'm a big fan of this kind of technology providing that it is energetically sensible to collect the feed for the pyrolysis plant.

Here's the relase in full...

DYNAMOTIVE ENERGY SYSTEMS CORPORATION            News Release: December 1, 2008

Dynamotive Signs Agreement for Development of Plant in China

Vancouver, B.C. - Dynamotive Energy Systems Corporation (OTCBB:DYMTF) announced today that it had entered into a commercial agreement to support the development of a pyrolysis plant in China based on its proprietary technology.

In accordance with the agreement, Dynamotive will provide process and engineering support for the development of a plant to be located in the Henan province in the People's Republic of China, being the first Dynamotive plant to be built outside Canada.

The plant will be developed by Hubei Xinda Bio-oil Technology Co., Ltd. (Hubei Xinda) in co-operation with Great China New Energy Technology Services Co. Limited (GCNETS) who is the exclusive licensor for Dynamotive's technology in the People's Republic of China.

Dynamotive under the terms of the agreement will provide technical support for the development. Fees for the technical support have been agreed for at $2,300,000 (two million three hundred thousand USD). Construction will take place in China and will be the responsibility of Hubei Xinda.

Ping Yan, President and General Manager of Hubei Xinda said, "Our company focuses on the development of renewable energy in China. We have been following Dynamotive's technology for eight years."

"We have secured over 900,000 dry tons of corn stover as feedstock for BioOil production which will be sufficient to supply 10 plants in the first stage of development. We have the funds ready to build China's first plant in Henan province, and show the potential of this technology."

"The first project in China marks an important milestone for our company," said Dynamotive's Chairman Richard Lin. "China's economic development is in the world's spotlight, and energy security and environmental protection are two major global concerns. As a leader in the bio-fuel industry, Dynamotive uses its patented technology to convert agricultural residues into valuable and clean renewable energy. The process makes use of non-food resources and creates no competition for land with food crops."

GCNETS, Dynamotive's exclusive licensor in the region was instrumental in the development of this agreement and in the introduction of Dynamotive's technology in China. In particular GCNETS worked co-operatively with National Development and Reform Commission (NDRC) and Dynamotive in regard to vetting the technology (announced December 12, 2006), a critical step in securing this first plant.

The agreement with GCNETS and Hubei Xinda is the first of a number of potential agreements that are expected to be concluded in the region. GCNETS also worked closely with China National Offshore Oil Corporation (CNOOC), after being introduced by the Canadian Embassy in 2006 (see website disclosures October 7, 2008) and has confirmed that negotiations are ongoing.

GCNETS is obligated to develop within five years a minimum of 15 plants in the region. Minimum license fees have been set at $1,000,000 (one million USD) per plant developed. Further, the agreement between GCNETS and Dynamotive provides for up to 20 % ownership of Dynamotive in the venture.

According to NDRC, China produces 900 million tons of agricultural residues each year. Using only one-third for fuel production, it would be sufficient to supply feed for two thousand 200 tpd BioOil plants. This output would help China meet its target to reduce its industrial fuel oil imports by 50%.

Verasun goes to court today to cancel corn purchse contracts

VeraSun, which filed for Chapter 11 bankruptcy protection recently is planning to go to court in Delaware to cancel a number of corn purchase contracts. Much to the chagrin of farmers in Iowa who planned to sell the corn to the firm.  

Journal of Conservation Biology slams palm oil plantations

According to a report on the BBC today, the Journal of Conservation Biology says that palm oil plantations are bad for biodiversity in countries such as Indonesia and Malaysia.

It takes a higher degree, a research grant and the whole peer-review process to decided that planting one species where there were many hundreds reduces biodiversity... honestly.

Actually, they said a bit more than that... You can (and should) read the abstract.

December 3, 2008

VeraSun outlines process for farmers to sell corn elsewhere

VeraSun has outlined a process for farmers to be able to tell if their corn will be available for sale elsewhere, according to the Des Moines Register. 

December 10, 2008

Salt loving plants may help biofuels production

Researchers at the University of Arizona say that salt loving plants might hold the key to 63bn gallons ethanol from non-crop land, according to Biofuels Digest, which quoted from Wired.

If this is true then it really is interesting. With one bound (or several faltering steps) we could be free of the reliance on high-quality land which we need for crops globally.  Questions around the level of salt tolerance, yield and so on must be answered. But it could be one of those win-wins where it is possible to increases wealth for people who own marginal land. I wonder if there is any chance that such crops could remediate land that has become saline through irrigation.

China expects to make 5m tonne ethanol by 2010

According to the Huaxlee website, China expects to make 5 m tonne ethanol by 2010, in a post quoting from the China Daily. It will be fueling the need wtih biomass.
This blog has noted before that China has looked at biofuel from a range of sources including biomass. This volume is interesting enough for foreign players to take an interest in the country. The Huaxlee story is potentially useful for outlining the Chinese biofuel strategy and giving details of how biomass is being used.

Life on Myanmar's biofuels plantation

Tidied up

Life on a Myanmar biofuels plantation is explored and found to be pretty rosy in this article from Singapore's Straights Times. Well it would be, its the Straights Times and its a Singaporean investment. Didn't look around at any others though... Didn't explain whether the companies gained the land on the basis of prior informed consent of the locals...

Separately, while we're on the subject of Myanmar here are some links to the MOU between Myanmar Agri-Tec and South Korea's Enertech to make biofuel from the Jatropha grown. There's also a scheme to use the plantation to generate carbon credits... which is forward looking.

December 26, 2008

U.S. Biofuels : Near-term challenges and prospects

This is a guest post from Pradeep Indrakanti a regular contributor to this blog and author of the Energy Engineering Blog.

Introduction:

Recent high crude oil prices reaching 140 $/barrel and federal incentives have spurred biofuel production. Additionally, as noted by a 2007 McKinsey report, cellulosic biofuels have the potential to be a negative cost means to abate CO2. However, the majority of the current ( I generation ) U.S. biofuel production consists of corn converted to ethanol via fermentation ( ~6.5 billion gallons of ethanol in 2007 , ~250 million gallons of biodiesel in 2006). First generation biofuels in the US primarily comprise of corn ethanol and soy biodiesel. This conversion of food to fuels has not been without its disadvantages. For example, concerns about food for fuel, resource (land, water, energy) requirements, as well as net energy balances have made first generation biofuels a topic of debate. In this article, I will examine the some near-term challenges and opportunities for the U.S. biofuel industry , and discuss some of Obama's biofuel energy policies.

In comparison to I generation biofuels, II generation biofuels such as ethanol from cellulose, fuels from lignin likely have lesser environmental impacts. However logistical issues (gathering waste biomass) as well as enzyme costs are the main impediments for the commercialization of this technology. Additionally, in the case of waste biomass from crop refuse, the amount of biomass (ex: corn stover) to be left in the field to replenish the soil carbon is still a subject of research. The so-called III generation biofuels (algal biodiesel, high-photosynthetic rate plants) have the advantage of higher specific yields, but more research needs to be performed before they can be commercialized. For example, algal biodiesel economics are primarily affected by the algal yields, and improvements in algae productivity significantly improve the algal yields and overall economics.

The current economic downturn and lower demand for commodities has impacted several corn ethanol producers who locked into higher corn prices, anticipating an uptrend in commodity prices. VeraSun, for example, has filed for bankruptcy protection and is hoping to renegotiate agreements with corn producers. In the short-run, additional corn ethanol plants are not likely to be constructed because of lower demand for gasoline and tight credit markets . More about the general effects of the credit crisis on various sectors of the energy industry from an article on The Oil Drum .

Biofuels in Obama's energy plan:

  1. Federal mandates for biomass-derived fuels and a National Low-Carbon Fuel Standard (LCFS): The Obama-Biden energy plan (referred to as Obama energy plan) calls for 60 billion gallons of biomass-derived fuels by 2030. In comparison, U.S. currently consumes 143 billion gallons of gasoline annually, and current bioethanol production is ~7 billion gallons/year. However, the McKinsey report projects only 15 billion gallons of biofuels (as opposed to 60 in the Obama energy plan), of which 10.8 billion gallons would be provided by starch-based ethanol, and less than 4 billion gallons would be provided by cellulosic biofuels. Given that current corn-based ethanol production is about 7 billion gallons/year, it is clear that achieving the figures in Obama's energy plan will require massive increases in second-and third-generation biofuel production. The LCFS will mandate fuel suppliers to decrease the carbon content of their fuel by 5% by 2013 and 10% by 2018.

  2. Impact of regional/federal greenhouse gas trading programs on biofuel demand and utilization: Obama has mentioned that he will work to implement a cap-and-trade program to limit U.S. CO2 emissions, where the CO2 offsets would be auctioned. Whereas it is not clear whether political support to pass such legislation in the current economic environment exists or not, it is somewhat certain that clean fuel standards and green energy credits would be enacted before a federal cap-and-trade bill. On the other hand, regional cap-and-trade programs ( RGGI , MGGA and WCI ) also aim to limit regional GHG emissions. Particularly, MGGA, comprised of many corn-growing, ethanol-producing Midwestern states will likely have strong support for biofuels as a source of CO2 offsets in its program. On the other hand, the use of agricultural land to grow biofuel crops will conflict with other measures in a cap-and-trade regime. Two such examples are biomass co-firing in cement kilns and coal plants, and conservation-tillage leading to agricultural carbon sequestration in the soil. Such conflicting measures could lower the land/biomass availability for I/II generation biofuel production. Therefore, these apparent conflicts should be well addressed in any federal/regional carbon legislation. More about current climate policy proposals from the Resources for the Future and the Pew Center on Global Climate Change .

  3. Flex-fuel vehicles: The Obama energy plan will mandate all new vehicles by 2012 to be flexible fuel vehicles (FFVs) which can run on gasoline-ethanol blends of upto 85% ethanol (E85). It is not clear if such FFVs could be operated on other fuels such as biomass-derived butanol .

  4. Economic incentives for biofuel production: Obama will likely continue Bush's goal of producing at least 36 billion gallons of biofuels by 2022, which also includes a tax credit of 0.51 $/gallon of ethanol blended into gasoline. He proposes to eventually extend this to cellulosic ethanol. This is likely a measure to prevent further job losses in the corn ethanol industry, which is suffering from the low crude oil/gasoline prices. I note here that his support for ethanol tax subsidies was one factor that set him apart from McCain in the Iowa election. Additionally, the 2008 Farm Bill included a tax credit of 1.01 $/gallon of biofuel produced from renewable cellulosic feedstock. Legislation pending in the Congress also aims to provide excise and income tax credits (1.50 $/gallon) of fuel produced from algae.

Summary:

In the near-term, the demand for biofuels will be affected by existing federal mandates, world oil prices, credit markets and regional cap-and-trade programs. Of these, providing access to lines of credit and accelerating research in advanced biofuels would be some of the near-term initiatives that could help meet the 60 billion gallons/year target for biofuels. Any policy actions taken should not result in unintended consequences. For example, a recent study found that meeting the renewable fuel standards for biofuels by corn ethanol production would worsen the "dead zone" in the Gulf of Mexico. Additionally, the use of agricultural land to grow fuel-producing crops will likely result in conflicts with other means of carbon mitigation. Balanced policy measures addressing the larger picture are required for sustainable biofuel production.

December 24, 2008

A Short Essay on Biofuels and Related Matters

This is a guest post from Professor David B. Benson (retired), who is a regular commenter on The Big Biofuels Blog.
David's contact details: dbenson@eecs.wsu.edu

Biofuel
-------
  Photosynthesis uses only a very small fraction of the available sunlight.  This means that growing biomass to make biofuels will require considerable land (and water) resources.  Even so, these are available and some biofuels offer unique advantages.
  As a gas, biogasses and biomethane, biofuels can replace the use of natural gas.  Indeed, sufficiently pure biomethane can be, and is to a limited extent, directly introduced into existing natural gas pipelines.
  As a liquid, biofuel can, and does, replace liquid fuels derived from fossil oil.  Currently ethanol is used to replace some gasoline; possibly butanol will do so in the future as it has greater energy density.  Similarly biodiesel is already replacing some diesel and pilot projects to replace some jet fuel with a bio equivalent are under way.
Various techniques produce other grades, such as heating oils, from biomass.
  As a solid, biofuels can replace some or all of the fossil coal used in coal reactors used to generate electricity or provide space and process heat.  An older technique, being revitalized, is to torrefy wood.  Newer pyrolysis methods produce a combination of liquids and solids; the solids are usually called biochar.  The biochar is, in effect, extremely high grade coal for burning purposes; in a later section we will touch on what may well be a more important use of biochar.
  There are several different ways to turn biomass into biofuel.  The algal techniques require minimal land to sit upon, indeed just rock will do.  Considerably more equipment is required. Unfortunately, none of these methods, algal or otherwise, as yet preserve NPK for later reuse; we touch on this most important subject in a later section.

Food and Fuel
-------------
  A recent FAO report states there are, world-wide, about 5 billion hectares of agricultural land.  Of this total, about 30% is defined as arable land and another 20% is currently not in production.  The arable land grows mostly foods; the unused lands, often degraded, could be used to grow  biofuel stocks.  Most of these currently unused lands are in the Global South, South America and Africa.  Additional lands are governmental agriculture program set-asides; with better irrigation, additional lands could become available in Central Asia and elsewhere.
Much farmland in Russia is currently unused.
  So through 2030, according to a recent analysis, there is plenty of land to grow biomass for biofuels without competing with lands currently used for growing foods.  In addition, much of the arable lands are used inefficiently to grow animal feed for meat animals; beef, mutton and pork are probably the worst offenders for inefficiency and concomitant release of carbon dioxide; beef and mutton animals the worst for release of methane.  So the future may bring less animal protein and more vegetable protein, much more efficient.  This could, in turn, release arable land for growing biomass for biofuels, relieving the supposed 2030 date for serious competition between food and fuels.
  For some farmers in developing countries, growing food crops for biofuel feedstocks appears wise.  Tubers such as sweet potatoes and cassava are food crops, but not preferred ones.  The advantage to such tubers is the ability to grow on somewhat degraded soils. Some of these farmers may well wish to grow their primary food crops on good soils and tubers on the poorer ones.  If the primary harvest is successful, the tubers provide a cash crop, perhaps for biofuel feedstaocks.  If the primary harvest is less than adequate, some or all of the tubers can be eaten; a form of food security.
  The result, as I now see it, is that there will be no serious competition for land resources between food and fuel crops through about 2050, provided the quantity of meat in diets goes down, on average.
Eating less meat is considered to be more healthful, by the way.
  I haven't considered the competing needs for fibre such as wool and hemp, and construction woods, nor parks and other land set-asides.

Global South
------------
  Since so much of the land appropriate for growing biofuel feedstocks is in the global south, the concept of energy independence for many countries in the northern hemisphere is a  chimera; it will not be possible via biofuels and so not possible to be completely energy independent.  What could occur, I suppose, is energy independence by hemisphere; the Americas on the one hand and the rest of the world on the other.  Given the extent of investment in Africa by countries and corporations in Asia and Europe, with almost none from North America, such may become the defacto arrangement of the future, with various smaller degrees of cooperation between, say, Brazil and African countries.

NPK
---
  Potassium, chemical symbol K, is in ample supply.
  Phosphorus, chemical symbol P, is currently being mined at a rate of 0.8% of reserves per year; the reserve base is not(currently) economic to mine.  This rate may seem small, but the unused, degraded lands to be devoted to biofuel production will require some; suppose doubling to 1.6% per year.  Then the reserves are depleted in 62 years, 2070.
Worse, this assumes that world reserves are not overstated.  Analysis suggests that reserves are overstated.  If so, the end may come in, say, 2050.  Whatever, agriculture, biofuel production, waste management and so on needs to start conserving phosphorus for reuse; don't waste phosphorus.
  Nitrogen, chemical symbol N, is in short supply only in that it needs converting from diatomic nitrogen in the air into a biologically useful form in the soil.  Some micro-organisms do just that; these are often associated with legumes.  For example, it was locally the practice to alternate soft white winter wheat one year with dry peas and lentils the next.  This practice meant that less chemical nitrogen fertilizer had to be applied to the growing wheat.
  The chemical nitrogen fertilizer is fixed from the air via the Haber process, steam reforming natural gas to start the process.  The price of these fertilizers varies with that of natural gas, thought to generally increasing over time.  Obviously biomthane could replace the natural gas, but this may not be the best use of biomethane.
  Producing biologically useful nitrogen could well be something that addtional micro-organisms, including genetically modified ones, could play an increasing role, lessening dependence upon the Haber process.

Topsoil
-------
  Civilizations end when the topsoil is used up.  Avoiding this requires conservation and soil building.  Building soils includes adding compost but now also some biochar.  This later amendment then competes with simply burning the biochar as a fuel.  So to the list of competing uses for agricultural land, using some to grow biomass for biochar to simply build topsoil has to be added.

Waste
-----
  Vast amounts of biomass simply go to waste.  While crop wastes left in the field replenish the soil, some is collected with the crop, so could be used as biomass feestock for biofuels.  Other concentrations of wastes abound:  animal feedlot wastes, abattoir and fish offal, other food processing wastes, biomethane from landfill operations.
  Now that half of humanity lives in cities and towns, municipal wastes are an important source of biomass which are underutilized.  A few municipalities use some:  Dayton, Ohio, ferments to biogasse and burns this to generate electricity; some municipalities in The Netherlands generate enough extra biomethane to support CNG filling stations; San Diego, California, generates enough high quality biomethane to supply some to the natural gas pipeline.  But there is much more which can and should be done to note only improve the quality of wastewater discharge but also efficiently capture the energy currently often just wasted.
All this involves quite substantial infrastructure development and improvement.

Conclusion
----------
  An estimate of current world energy consumption, from all sources not including foods, is 420 exajoules per year.  With increased energy efficiency, but also a larger and wealthier population, an estimate for the year 2050 is 800 exajoules.  At the same time the peak in traditional fossil fuels will have come (and according to some, gone).
While various means of producing electricity and process heat, including space heating, will surely be non-biological, a reasonable estimate for a biofuel contribution is between 200 and 400 exajoules, depending upon the competing demands for land, water and other resources.  The higher figure requires substantial development of supporting infrastructure and other equipment.  This is surely possible, in some amount, so that biofuels will supply some, not all, energy needs between 2030 and 2050.

December 17, 2008

Biofuels and the innovation ecosystem

 Krisztina Holly has an interesting article on biofuels, the automotive bail out, evolution and the innovation ecosystem over on the Huffington Post.

Part of her post is particularly resonant for the biofuels industry

Big companies play an important role, too, in this healthy, diverse business ecosystem. They help amplify - through acquisition, licensing, or even copying - the impacts of successful ideas.

Just as dangerous as cultivating a monoculture is picking a "winner" prematurely.

In the recent green energy debate, for example, the U.S. chose to subsidize corn ethanol as the winning new clean fuel, giving $7.0 billion in subsidies in 2006 alone.

Through premature decision making, have we thwarted cheaper and cleaner competitors?

What we should have done, and still can, is to encourage innovators developing a wide range of fuel-alternatives including wind, algae, solar, methanol, and so on. Government should make available research funding, infrastructure, education, incentives, and regulations for the outcome we want, and let the market decide. 

Surely we have to agree with the last statement.

The way ahead should be to let a thousand biofuel flowers/algae/non-food crops/waste streams bloom. 

Too much corn could be bad for ladybugs (ladybirds)

Interesting piece on the effects of corn monoculture in the mid-west. Looks like too much corn is bad for ladybugs (ladybirds), but probably good news for people who make pesticide...

Hattip to Biofuelwatch

January 9, 2009

Coconuts for biofuels

Researchers at Baylor University, Texas have been working with academics from Papua New Guinea to make  biofuel from coconut oil. The technology looks to centre around a device which separates coconut milk from the oil as it crushes individual coconuts and is part of Baylor's Appropriate Technology program. It is being spearheaded in Papua New Guinea by Dr John Pumwa.

This looks to be a good use of a non food crop which can benefit the developing world. The idea came to Pumwa after he had seen coconuts, which are often grown for fibre not milk rotting on the ground because the price of coconut fibre was too low to make harvesting viable. Two products from the same crop are better than one.

January 15, 2009

Changing land management could shrink carbon payback time

Changing land management could shrink carbon payback time when farmers convert grassland to biofuel production, say researchers in the Journal of Environmental Science and Technology.

If this is right, and its been peer reviewed, I guess, then it could make biofuels more attractive in environmental terms. My question is how soon could agriculture switch to these production methods and how much of it would?


January 16, 2009

Syngenta and Proteus in biofuel joint venture

I notice that Syngenta and Proteus have formed a joint venture to create enzymes to help make second generation biofuels. This is not Syngenta's first jv in this area. It would be intetresting to know how the different techologies complement each other.

Emami Biotech in commercial jatropha biofuel production

Emami Biotech is using Jatropha in commercial jatropha biofuel production according to the Bioenergy site.

If this is the case, and the report is a little garbled, then could it be the first commercial application of that technology?

February 4, 2009

More on Jatropha

I've just stumbled on this website about Jatropha.  It talks about the way that using Jatropha as hedging material, it is possible to increase cultivatable land. I am not sure if that works if water is scarce...

More on Moringa

This site claims to be the global news centre for Moringa,  a plant which might be a potential biofuel source. Moringa can also be used for food, if you read the comments on this earlier post about Moringa. 

February 12, 2009

The corn-ethanol carbon balance argument again

There is an interesting video on Climate Central about the amount of carbon dioxide produced when ethanol is made from corn grown in the mid-West of the US. Hard to tell who is right in this debate (if any one is) the different premises are all important and few people seem to try and compare apples with apples. It's probably best to watch it and make up your own mind. 

CORRECTED: Two Jatropha projects in India

CORRECTED

Links sorted out.

Two Jatropha to biofuels projects have got under way in India in the past two days. According to the SindhToday 100 million Jatropha saplings have been planted in Chhattisgarth. Meanwhile Sulekha.com has Bharat Petroleum to invest Rupee 21.31bn ($438m) in a biodisel project.
Good to see India looking to non-food crops to boost its energy self sufficiency. 

February 23, 2009

Will water be the limiting factor in biofuel production?

I have blogged in the past about the relationship between water and biofuels. There can't be conventional grain-based biofuels without water. But there was an interesting post on EurActive a little earlier today in response to the annual Davos meeting. This year it produced a  Water Initiative.
Buried deep (page 22),the Davos report it suggests that first generation biofuels take between 32 and 360 cubic meters of water to generate 1 MW/h power.
The report adds

Plans to switch from gasoline to electricity or biofuels to increase energy security are effectively a strategic decision to switch dependence from foreign oil to domestic water. Attempts to alleviate some serious problems - such as energy security and climate change - can aggravate an even more serious problem, acute water shortages.
The report points to a couple of recent examples of water shortages in the US and Europe. The tension between water and energy is already visible in the US and Europe.

• The Department of Energy report to Congress on the interdependency of energy and water stated that energy production is very much at the mercy of water availability
• Utilities in the US recognize that water quantity is becoming a significant permitting issue - Maryland County denies cooling water to proposed power plants18
• Tennessee Valley Authority shut down one of three reactors at its Browns Ferry nuclear plant to avoid heating the Tennessee River to dangerous levels. Due to a drought that reduced the river level and hottest temperatures in 50 years, the plant could not discharge the cooling tower water since it would have crossed the permissible limit.

    

February 25, 2009

Belgium and Netherlands may grow GM poplars for biofuels

Belgium and the Netherlands may find themselves in a race to grow the first GM poplars for biofuels.

According to a story in Nature Biotechnology and quoted by Biofuel Watch in an email, the Dutch Government may approve the planting of poplars for biofuel. If you can get to a library, you can see the article in  Nature Biotechnology volume 27 number 2 February 2009 p. 107. Alternatively it will cost you $32 to view the article on line.

The gist is that...
Researchers at the Ghent, Belgium-based Flanders Institute of Biotechnology (VIB) have developed transgenic poplars deficient in the enzyme cinnamoyl-CoA reductase. This reduces the lignin content making them more suitable for bioethanol production, although so far their benefits have only been demonstrated in the lab.

A final decision from the Dutch government is due in spring 2009.

Information extracted by Hayley Birch. Well done Hayley.

Today the Dutch language, but Belgian, engineeringnet.be says The VIB has gained approval in Flanders, Belgium.  So could the race be on?

The VIB website has some interesting stuff... The process it went through to get permission to grow the plants in Belgium, for instance. The fact that VIB has been working on GM poplars for about 10 years...

It is also worth making a note of cinnamoyl-CoA reductase. Remember it. I'm going to guess that it is one of the key components in work by seed/trait companies who are hoping to develop easier-to ferment non-food biofuels. There's quite a bit of interest in cinnamoyl-CoA reductase.  

February 26, 2009

Sugar cane ethanol and Brazil

There's a piece entitled Why the Promise of Biofuels is a lie by Robert Bryce. It is pretty anti biofuels, mainly ethanol, it doesn't talk about biodiesel. It is worth looking at for the way it pulls together a couple of sources on the plight of Brazilian sugar cane harvesters. Their lot is pretty hard.

 But there is no need for it to be a model across the sugar cane-to-biofuel project.

In my opining Bryce's piece could do with looking at fuel economy too... but I am a bit obsessed with that.

February 27, 2009

The Malaysian Minster of Plantation Indusries on sustainability

The Malaysian Minister of Plantation Industries spoke exclusively to the World Refinning Association ahead of the Asian Biofuels Roundtable to be held in Malaysia at 23-25 March.

It is interesting that there is no discussion of prior informed consent of the people who live in the land and who may not be farmers. He is exactly right though in terms of the EU's sustainability criteria and how they should integrate with WTO and be science based. Should the Malaysian position on biodiversity be equally science based. If it isn't and it is probably debateable tot he degree that it does conform to prinicples of sustainabilty and biodiversity, does that matter if it is a case of feeding people and ensuring economic prosperity?

The press release follows...

Continue reading "The Malaysian Minster of Plantation Indusries on sustainability" »

March 3, 2009

FAO's case studies on small-scale bioenergy initiatives

The FAO has pdf on the impacts that small scale biofuels initiatives have had on the lives of participants in the developing world. It is downloadable as a PDF.  The report is interesting because it approaches the users and producers of biofuels as being market participants. 

March 4, 2009

Not farming is better for carbon emissions than corn-ethanol

Tree Hugger has one of those articles which show that doing nothing produces fewer carbon emissions than growing corn for ethanol. Well Duh.

Let's turn this on its head.
 If we stopped using oil-powered vehicles then we would not need to use any gasoline. Yhat sounds plain silly.

 The fact is we have a need to travel, we're tied to combustion engines, ethanol from corn is the biggest (if not the best) technology we have to reduce gasoline dependence. It's got to be better than digging up sequestered carbon and squirting it into the atmosphere, and that's the real point. It is probably no worse than  hydrogen powered vehicles in that respect.

March 10, 2009

UK has enough land for non-food biofuels -- study

A study in the Journal of Applied Ecology says that there is enough land in the UK for non-food biofuels. The abstract, which is copied on envirolation.org says that there is 3.1m Ha of acceptable land in the UK, that's land that isn't of great ecological importance

"suggesting the UK government target of 1·1 million ha by 2020 is feasible."

The other interesting news from this is that butterflies might do rather well out of Miscanthus and Willow plantations.

Butterfly abundance proved the most appropriate indicator, [of biodiversity] and it was found that total abundance was greater in field margins of both willow and Miscanthus biomass crops than in arable field margins.

Though the abstract didn't talk much about species and seemed to be more interested in the number of butterflies... I think some lepidoptra are quite specialised in terms of habitat and food.

More on Michigan State's big cellulosic ethanol drive

I wrote a couple of days ago about a company called Frontier Renewable Resources, a joint venture between JM Longyear and Mascoma that is planning to convert trees in Michigan into ethanol for biofuel. There has been a follow up story in the Michigan Messenger. Patrick K. Egan at the Messenger has managed to talk to Longyear CEO, Steve Hicks about project.

Egan's written a nice feature about what the arrival of the Mascoma plant might mean for the northern Michigan Peninsula.
There are some concerns about job losses. There is mention of the cost of  generating the cellulosic ethanol jobs. There is some speculation that Frontier Renewable Resources might import timber from Canada... It is worth reading.

It is also worth noting that Hicks says that there have been a couple of timber plant closures in the past couple of years that has increased the amount of timber available by around 2m acres of forest land (about 800 000Ha).

The piece is well balanced and also touches on some of the cost of jobs generated by the grant. I guess that the fear is that these will simply be temporary jobs and that once the money has gone then the jobs will disappear too. Though in 2009 is there such a thing as a permanent job? 

March 17, 2009

The right cellulosic biofuels might help protect the environment

Biofuels from cellulosic feedstock could help to protect the environment by reducing the amount of nitrogen that runs off into rivers and by providing coverage that helps protect the land against wind and rain erosion.
That is one of the central assertions in a guest article by Richard Cruse and Hillary Olson in the Des Moines Register today. Parennial grasses could be helpful in areas that are marginal for corn production such as sloping land and land on the margins of water courses.

This looks very sensible to me. One of my concerns with cellulosic ethanol production is that because there will be less cellulose to go back into the soil, to help with structure and water retention, there could be a decrease in soil quality. Using parennial grasses in marginal areas might even help biodiversity.

UPDATED: Verenium and Aventine in difficulties: Reuters

Verenium could have jhad difficulty continuing as a company, its auditors say in a report from Reuters yesterday and carried in the UK's Guardian Business Feed.The same report says Aventine may need to take Chapter 11 bankruptcy protection.

Key points from the Reuters report:

Verenium's outside auditor, Ernst & Young, said in a U.S. Securities and Exchange Commission filing that the company's working capital deficit of $23.8 million and accumulated deficit of $622.6 million as of Dec. 31 "raise substantial doubt about its ability to continue as a going concern."

While Aventine said it did not have the cash to make a $15 million interest payment due April 1 or the $24.4 million it owes builder Kiewit Energy Co. Kiewit built some ethanol-producing plants for Aventine.

Oil major BP has a stake in Verenium and it is not yet clear whether the firm would be prepared to step in and give addtional funding to Verenium. However the Reuters story relates to the year ending in December 2008. In February 2009 BP injected $45m into a joint venture with Verenium. The press office is looking into it for me.

How much of these difficutlies is down to a lack of integration along the supply chain from field to pump and how much is down to the difficutly in bringing new technologies to the market cost effectively it is hard to say. But this story points up the difficulties that I'm sure many companies face across the sector.

UPDATES include making it clear that Verenium is in a joint venture with BP and that BP has invested cash in the jv in the period after E&Y gave its opinion. For BP's response see Verenium: BP responds.

Arkansas: promised land for biofuel

Could Arkansas be a promised land for biofuel. This article from Delta Farm Press seems to think so. Of course it doesn't explain how all the biofuel that could be producecd in the state could be got to the markets that need it? I Wonder how long it would take to get from Little Rock to New York/San Francisco by ethanol tanker.

But hats off to them, they are interested in cellulosic biofuels from wood.

March 26, 2009

Antibiotics at heart of corn ethanol

Some US corn ethanol producers are using penicillin and three other antibiotics in corn fermentation process says Minnesota Public Radio.
Why? To ensure that the yeast they use in fermentation does not have to compete with naturally-occurring bacteria that wants the sugars in the fermenting mash itself.

I think that this matters on two counts:

One of the major revenue steams from ethanol producers is to sell the spent grain as protein-rich animal feed called distillers grains. There are strict limits in some countries on the amount of antibiotics in food produced by animals fed on this.

If the FDA, which carried out the study on distillers grains from 60 ethanol plants in the US were to strictly limit the amount of antibiotics in distillers grains,  the future of many of the plants in the US would be called into doubt.

The second, more far reaching effect is about antibiotic-tolerant bacteria. The FDA researched 60 samples across the US, and found Penicillin, virginiamycin, erythromycin and tylosin in the samples.
 
 Virginiamyacin plays an important role in human medicine for the very ill, it is used to treat endocarditis or meningitis. Here's just how important in a quote from the University of Michigan.

The next AGP on the list is virginiamycin. Now virginiamycin is related to Synercid, which is an antibiotic that was just marketed for [vancomycin-resistant enterococcus]VRE in the US in 1999, and this is after we went 10 years in US hospitals without having any antibiotics to treat VRE. Yet here it is, literally, out in our food chain. Virginiamycin has been used in US animals since 1974. It was banned by the European Union in 1998. One study by L. Clifford McDonald that appeared in The New England Journal of Medicine in 2001 found that about 17-87 percent of chickens tested in supermarkets in four different states, harbored this streptogram or quinupristin/dalfopristin-resistant organism.
My emphasis

By using antibiotics in these ways, isn't it possible that the US corn ethanol industry is helping to breed new strains of bacteria that resist virginiamycin and other antibiotics that are used to save lives. Does your plant use antibiotics? How do you feel about it? Let me know.

April 7, 2009

Scoping out biofuels

The Scientifc Committee on Problems of the Environment (SCOPE) has produced a report looking at the enviromental impacts of biofuels,. The group makes a number of recomendations for second generation feedstocks, and favours woody or grassy plants.

As with the first generation biofuels, the environmental consequences of the next generation depend significantly on the type of feedstock and how and where the feedstock is produced. The net greenhouse gas emissions from using either cellulosic ethanol or BtL are substantially less than for ethanol produced from corn, particularly if the feedstock comes from wood or from perennial grasses grown on  non-agricultural lands.

That sounds quite fair, I'm not sure that one of the other suggestions, that the methane from farm animals could be collected and used as fuel is particularly realistic. Even if you cram a cows together in a shed, the volume of methane has to be pretty low, or wouldn't the cattle choke to death?
Apart from that quibble, the report looks balanced and could offer a sensible way forward in this area.

April 27, 2009

Novozymes in China biofuel project.

Novozymes and China National Cereals, China Oil & Foodstuff Corp (COFCO) and Asian refiner China Petroleum and Chemical Corp (Sinopec) in February to develop an industry chain to collect agricultural waste, process it into bioethanol and distribute the clean fuel through petrol stations, according to a report on Reuters.

It is likely to need around $13bn to support the whole Chinese biofuel industry, says Reuters.

1200 gals water make 1 gal ethanol

Corrected

headline reads 1200 gal water

Wholly irrigated corn can take up to 1200 gal of water to produce 1gal ethanol, according to a report on the MinPost today.

That's a lot of water and touches again on my obsession with aquifers

May 14, 2009

Greenpeace protests against Neste's palm biofuel plans

Greenpeace is objecting to Neste's plans to become the world's largest consumer of plam oil as it ramps up biofuels production, according to a report on ICIS news.
Disclosure (I work for ICIS. About ICIS)


Neste disputes the pressure group's claims that it will have an impact on  the level of deforestation in South East Asial. 

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