EU’s 10% Biofuels Target Stays Despite Review Calls

Written on April 3, 2010

BusinessGreen.com reports that the EU will not scrap its policy of requiring 10% biofuel use for all road transport fuel by 2020, despite an impact study that says any biofuel usage about 5.6% could run the risk of negatively impacting the environment, particularly on land use. Advocacy groups are calling an urgent review of the EU’s biofuel policy in light of the study’s findings.

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One of the biggest reasons for biofuels not taking off in Africa, despite immense potential, is the lack of demand side development. The smallholders can grow the crops but they don't have the ability to sell them to European refineries. A local refinery has always been necessary but no one has been willing to invest in one without first ensuring that the supply side is guaranteed -- which is often difficult when you are looking to deal with potentially thousands of smallholder farmers to supply you with the feedstock.

Given that, government investment in a refinery is probably how one would need to proceed and this a great first step.

Poplar trees are already used for paper and timber production; could they now become yet another source of inedible biofuels? While this presents an opportunity for North America to move away from corn-based fuels, is this an efficient enough way to produce the fuel? And would this be sustainable enough?

This can become big if we can find a way to extract both fuel and paper out of the trees. That is to say, if the tree will be grown and cut down regardless for paper production, then let's find a way to get some fuel out of it as well.

Cleantech firm to change focus

Written on January 12, 2010

EmailWire reports that Green Energy Live, a clean energy firm, has decided to focus exclusively on its manure to energy conversion systems. Green Energy has phased out plans to expand into the ethanol business and will focus on the bio waste to energy segment. The company believes that this strategy will prove a better commercial success and easier to adapt to a widespread market.

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While a number of biofuel projects are slow to get off the ground, I have been seeing a lot of activity in the waste-to-energy sector. It appears that there are real possibilities there -- and primarily because it solves two problems at once: provides energy and reduces the waste cities need to deal with.

Principle says its funds have incurred substantial losses on their 18m investment in the biodiesel company.

With 27.55% of the issued share capital, it says it has the ability to block all special resolutions of the company and intends to do so until the board agress to discuss its requests.

These are that D1 ceases all but essential cash expenditure immediately and begins talks for the acquisition of Principle Energy Limited and an associated fundraising.

Principle is resolved 'to fulfil its duties to its underlying investors by ensuring that what it considers to be fruitless expenditure is halted'.

Story provided by Business Financial Newswire

Brian Myerson brings significant leadership to D1 Oils--a company that has probably done more harm than good to the sector with its unsubstantiated claims. There was a time when D1 Oils was widely expected to be a leader in the biofuel sector. Today, it is a sorry tale of poor planning. Can Principle change the trends?

Right now biodiesel is capturing widespread interest. Duane Johnson, an independent consultant with many years of experience in the biodiesel and biofuel markets, said that even though the biodiesel market appears slow right now, “We are seeing a tremendous interest in biofuels.

While there will always be debate on whether we should focus on crop-based fuels as an alternative, much of this debate misses an important point. Majority of the engines that run the world today are diesel based and replacing them would only come at a significant cost.

Unless, of course, we can find a way to make diesel in a sustainable and energy efficient way. And that exactly why biodiesel is here to stay.

Major oil companies and midstream companies face some changes in how they do business if biofuels production expands at the rate required by the US renewable fuel standards (RFS), a credit rating agency reports.

“The potential for advanced biofuels remains robust as long as the government-mandated demand remains in place,” Standard & Poor’s Rating Services analyst Mark Habib said in an October research note.

Currently, RFS-mandated volumes are almost 10% of US liquid fuel demand. The RFS requires increasing production of grain-based biofuels and advanced biofuels at a pace that could more than triple current biofuel production by 2022, he said.

“More than half will come from second-generation biofuels, primarily cellulosic biofuel which the EPA defines as an advanced alternative having at least a 60% greenhouse gas reduction compared with petroleum,” Habib said.

While I don't believe that the oil and gas companies face a major threat from the biofuel start-ups, I do believe that the traditional oil and gas companies--with their resources and reach--will play a major role in research and development of biofuels. We are already seeing traditional mega oil companies spending significant resources in developing alternative fuels. I would say, given the finite supply of oil in the ground, it is about time they start look at alternatives ... even if the oil in the ground is good for another few centuries.

A memorandum of understanding covering collaboration on a range of biofuels technologies and projects in China has been signed by the China National Petroleum Corp. and  UOP LLC, it was announced today (4th November). Under the terms of the agreement, announced at the 20th meeting of the China-U.S. Joint Commission on Commerce and Trade (JCCT), the companies will collaborate to demonstrate existing biofuels technology to produce green transportation fuels using feedstocks available within China. CNPC will also evaluate the installation of a demonstration-scale UOP/Eni Ecofining™ process unit for the production of green diesel fuel, as well as a larger-scale unit at an existing or new CNPC refinery site.

The companies will also collaborate, said the statement, on the design of an Ecofining unit able to produce both green diesel as well as renewable jet fuel from Chinese biofeedstocks, and assess opportunities for raising the energy efficiency of existing and new ethanol plants in China with the use ethanol of membrane technology.

"This collaboration will advance the development of viable renewable fuels for the transport sector in China," said Jennifer Holmgren, general manager of UOP’s Renewable Energy and Chemicals. "Collaboration between governments and private industry is necessary to enable a sustainable biofuels future. We are honored to work with CNPC to support this initiative, and congratulate all of the organizations involved for their commitment to a reduced carbon footprint."

"As a global Fortune 500 business and a responsible corporation, CNPC has long term commitment in emerging energy technologies and made positive progress," said Jie Hu, chief engineer of refining & chemicals for CNPC’s PetroChina Company Ltd. "Under the strategic agreement framework between China and the U.S. to promote clean energy technology, our collaboration with UOP to promote advanced biofuel technology will enable the low carbon emission and green economy development in China."

The discovery of the enzyme responsible for the formation of suberin could lead to easier agricultural production of crops used for biofuels, according to the US Department of Energy.

These images show that seeds deficient in HHT (right), an enzyme needed to synthesize an important component of plant cell walls, are more permeable to a red dye than normal plant seeds (left). Controlling the level of this enzyme may offer scientists a new way to alter plant growth for improved biofuel production.

 

One of the biggest challenges that the biofuel industry is facing is uncertain and low yields. India, for example, is a leading producer of Jatropha but records some of the lowest yields due to unfavourable climate conditions.

If these new findings work as advertised, this could be a major breakthrough in production of biofuels for many countries that have everything they need to produce their own fuel, except the right conditions.