Daily Biofuels Summary for November 7: California adopts Alternative Fuels Plan, Universal adopts biodiesel, New Zealand racing adopts E85

Top Story:

The California Energy Commission voted 4-0 to adopt the California State Alternative Fuels Plan, which was developed jointly with the California Air Resources Board. The plan calls for on and off-road alternative fuel usage to reach 9 percent by 2012, 11 percent by 2017, and 26 percent by 2022. Fuels include electric hybrid, compressed natural gas, hydrogen, renewable diesel, bio-diesel and ethanol . The plan calls for investment in production, fuel stations and subsidies to support the short-term price differential between alternative and fossil fuels.

Producer News:

In Texas, Glycol Biotechnologies, a firm founded by Rice University researchers that has developed a technology that converts glycerine into ethanol, will begin producing ethanol at a pilot plant in Houston by mid 2008. The company uses a strain of E. coli for its process. Glycerin is a 10 percent by-product of biodiesel production, and the boom in biodiesel has resulted in a glycerin glut and depressed the finances of the biodiesel plants who make it. According to one of the company’s co-founders, they have received unsolicited queries from producers representing more than half of biodiesel production.

In North Dakota, Great River Energy, Cargill and Newman Group have broken ground on the $500 million Spiritwood Station complex that will include a 100 Mgy ethanol plant. The complex will also feature a coal-based power plant that will produce electricity for the Great River member co-ops in Minnesota, as well as steam for a Cargill malt processor and the ethanol plant.

International News:

In Canada, the Biofuels Opportunities for Producers Initiative (BOPI) will provide $300,000 to Sunbelt BioFuels, a 30 Mgy canola biodiesel plant in Altona, Manitoba.  Local farmers will provide $4 million in equity investment. The plant is expected to open in October 2009.

In Kenya, the Trees for Clean Energy project is teaching 950 farmers about jatropha cultivation. The project is taking place in Kibwezi, a semi-arid region near Tsavo National Park, and expansion is planned to Kisumu, Kajiado and Kitui districts.

In South Africa, trade and industry minister Mandisi Mpahlwa said the highly-anticipated South African biofuels strategy has been finalised and will be submitted to the Cabinet for consideration. However, speaking at another event, Science and Technology Minister Mosibudi Mangena said that the government will not introduce biofuel legislation to formalize the policy because consultations are still underway. because consultations were still taking place
The plan is expected to reduce dependence on coal-based power and imported fossil fuels while maintaining food security.

In Colombia, a new sugar beet ethanol plant has commenced production 90 mile north of the capital, Bogota. The plant will produce 29 Mgy of ethanol. Colombia has a 10 percent ethanol mandate in place, and expects to build 27 ethanol plants by 2020 in a $1.3 billion investment program.

In Canada, the Federal ecoAgriculture Biofuels Capital (ecoABC) initiative will provide more than $600,000 to Western Biodiesel, a 19 Mgy canola and tallow-based biodiesel plant at Aldersyde, Alberta.  Local farmers will provide another $275,000 in direct investment toward the $8 million project cost.

Research News:

Shell has purchased an undisclosed stake in stake in Codexis, a company which manufactures enzymes for the the cellulosic ethanol production process. Codexis executives said that they expect to build a commercial production facility for cellulosic ethanol by 2012.

Policy and Policymakers:

The International Air Transport Association appointed a global director of environment initiatives.  Giovanni Bisignani, Director General and CEO of IATA said, “Air transport takes its environmental responsibility seriously. Alongside safety and security it is a pillar on which we have built a great global industry. Despite our good track record, air transport’s carbon footprint is growing. That is not acceptable.  Our vision is for air transport to achieve carbon neutral growth in the medium-term, on the way to a carbon emission free future.  Paul Steele, the new executive, was formerly COO at the World Wildlife Fund.

Senator Pete Domenici (R- New Mexico) proposed an amendment to the 2007 Farm Bill mandating 15 billion gallons of ethanol usage by 2015. The Senator, the ranking Republican on the Energy Committee, said he hopes to include an identical renewable fuel standard in the Farm Bill to the standard proposed in the Senate Energy Bill passed last summer.

Consumer and Fleet News:

In Florida, the Jaws ride at Universal Orlando is converting to biodiesel. The park owners, NBC Universal, said that the switch will result in better air and water quality, and results in a more pleasant smell and water clarity for guests experiencing the Jaws ride.

In New Zealand, the Toyota Racing Series has adopted E85 ethanol as its racing fuel. The series will be the first to feature production cars running biofuels under extreme conditions. Other auto racing series that use ethanol feature cars built specifically for the race series. Auto racing officials noted that under racing conditions, the E85 blends are showing reduced emissions, increased power and torque over conventional fuels.

Financial News:

The Biofuels Digest Indexâ„¢, a basket of public biofuel stocks, soared yesterday to a 52-week high of 107.58, up 5.76 percent, on favorable reception to Archer-Daniels-Midland (ADM) quarterly earnings. ADM was up 6.87 percent to $36.89

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