Daily Biofuels Summary for September 14

Top Story: An author of a study produced for the OECD Roundtable on Sustainable Development has posted a clarification on Gristmill regarding the relationship between OECD and the report. He writes:

“I was surprised that, despite the paper displaying prominently that it was “by Richard Doornbosch and Ronald Steenblik”, the press has paid more attention to the logo on the cover, and has begun each story with “The OECD says … .” There are no doubt people working for the OECD Secretariat who would agree with the paper, but the OECD as an institution — as a club of nations — certainly has not endorsed the paper.The paper (which at this stage was meant to be a discussion paper and revised before being published) was produced for a body that is largely independent of the OECD — ambiguously called the OECD Round Table on Sustainable Development — a talking shop for Ministers of Environment, Finance and Trade.”

Producer News: In Indiana, Poet opens its 65 Mgy million corn ethanol plant in Portland….In New Mexico, Abengoa Bioenergy is putting a small New Mexico ethanol plant up for sale to concentrate on cellulosic ethanol and larger scale corn ethanol projects. The Portales, N.M. facility produces 27 Mgy of corn ethanol. Earlier this year Abengoa was one of several companies to receive a received grants from the Department of Energy for development of cellulosic ethanol plants. The proposed cellulosic ethanol facility in Hugoton, Kansas will produce 13 million gallons of fuel from switch grass, corn stover, milo and wheat straw….In Missouri, a citizens group opposing Gulfstream Bioflex’s proposed $165 million ethanol plant near Rogersville in the southeast part of the state, said it will appeal of a judge’s ruling in favor of Gulfstream….In Iowa, the $50 million Western Dubuque Biodiesel plant had a grand opening….In Kansas, details are emerging regarding Abengoa’s cellulosic ethanol research facility in Hugoton. The plant will The proposed cellulosic ethanol facility in Hugoton, Kansas will produce 13 million gallons of fuel from switch grass, corn stover, milo and wheat straw, and 88 Mgy of corn ethanol. Abengoa projects it will need to collect 4-7% of biomass from a 50-mile radius around Hugoton to supply the 930 tons needed daily for the plant. Abengoa expect to increase farm income by $8-$9 per acre from biomass acquisition.

International News: All Africa has published an excellent summary of the state of African biofuel development, citing African ethanol production at 160 million gallons in 2007, with coverage of Zambia, Mozambique, South Africa, and Nigeria production plans….The Japanese beer industry is reportedly concerned about the price and availability of non-genetically modified corn in the US. 73% of US corn acreage is now planted with GM seeds. Japan imported 64.8 million bushels of U.S. corn in the first half of 2007….In Norway, Norwegian energy giant Statoil and Brazil’s Petrobras signed an agreement for joint biofuel ventures. The involves both development opportunities in Brazil and internationally. The two state-owned energy companies are partners on oil projects in Brazil, Nigeria and in the Gulf of Mexico. The partnership will include investment in Brazilian biofuel projects.

Research News: In Georgia, the fleet superintendent for Lawrenceville detailed savings achieved in a biodiesel pilot project. Based on a 33,000 gallon annual fuel usage, overall savings are $0.31 per gallon.

• $720 — fuel savings
• $2496 — savings on additives
• $8775 — savings from improved mileage
• $11,991 — total amount saved

Policy and Policymakers: In Belgium, The European Commission confirmed their commitment to a biofuel policy despite rumblings about a discussion paper leaked from the OECD Round Table on Sustainable Development that was erroneously identified as an official OECD report and caused a media flap this week. The EU has set a 10% minimum biofuels target for 2020, although the Community is committed to maximizing sustainable development of biofuels.

Consumer and Fleet News: In New York, a college senior has created a biodiesel project that provides fuel 17% of the SUNY College of Environmental Science and Forestry fleet on biodiesel.

Financial News: The Biofuels Digest Indexâ„¢ (BDI), a basket of 21 major public biofuel stocks, rose 0.68% yesterday to 98.90 as a weeklong biofuels selloff ended, as investors considered the favorable impact of oil prices on biofuels prospects. Oil closed at over $80 a barrel for the first time, with U.S. crude closing at $80.09 a barrel, after hitting $80.20 earlier in the day. Green Plains Renewable Energy (GPRE) was up 3.4% to $15.20, and Bluefire Ethanol (BFRE.OB) rose 3.45% to $4.50, while Texcom (TEXC.PK), New Gen Technologies (NWGN.OB) and Xethanol (XNL) were all down more than 5%. Among Big Ethanol stocks, Archer-Daniels-Midland (ADM) was up 0.8% to $32.83 while Pacific Ethanol (PEIX) fell .18% to $11.06. In the broader markets, the Dow Jones industrials rose 133.74 points to 13,424.88, the S&P 500 was up 12.39 to close at 1483.95 and the Nasdaq was up 8.99 to 2601.06. Weekly new jobless claim figures were up 4,000 but suggested a more stable jobs picture after a disastrous job creation report was issued last week.

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