Today in Biofuels: US House passes landmark Energy bill with 36 billion gallon ethanol mandate, White House says it will veto; South Africa unveils biofuels policy, excludes corn; China outlines incentives for non-food biofuel feedstocks

Top Story:

In Washington, the US House of Representatives passed its energy bill 235-181, largely on party lines. The White House called the bill “misguided” and said that President Bush would veto it. The bill raises Corporate Averaged Fuel Economy (CAFE) standards 40 percent to 35 miles per gallon by 2020, and a mandate to increase ethanol blending to 36 billion gallons by 2022, and a mandate for utilities to derive 15 percent of their power from renewable sources by 2020. The bill also contains $21.5 billion in consumer tax incentives to install solar panels, wind turbines, and buy hybrid gas-electric cars. The tax incentives are offset by the cancellation of $13 billion in oil company tax subsidies, and it is this provision which the White House espcially objects to.

Producer News:

In Texas, Panda Ethanol announced that they have been granted an air permit by the Texas Commission on Environmental Quality for their 115 Mgy corn ethanol plant.

In Wisconsin, BEST Energies and Sanimax Energy have established a joint venture to complete a 10 Mgy corn oil biodiesel plant in Cashton. BEST will operate the plant and Sanimax will market the product along with biodiesel from their own 20 Mgy plant in DeForest.

In Texas, Chevron has indicated that it may pull out of funding expansion of a biodiesel project in Gal;veston. The Standard Renewable Energy plant is operated by BioSelect Fuels.

International News:

In South Africa, the national government unveiled its biofuels policy, which will set a target of 2 percent of fuel supply come from biofuels by 2013. The policy excludes corn as a feedstock, restricting the 2 percent target to biodiesel made from soybeans, canola or sunflower oils, or ethanol from sugar cane or sugar beet. The policy also will implement a 50 percent fuel tax exemption for biodiesel and a 100 percent exemption for ethanol. The final plan backed away from a 4.5 percent biofuels target that was the centerpiece of a draft plan circulated in the summer.

In Thailand, TPI Polene Power said that they will invest $58 million in an ethanol plant in Saraburi province. The plant would produce 48 Mgy of ethanol, primarily for export.

In New Zealand, Toll Rail, the major rail transport provider, will test B5 on commercial service between Auckland, Hamilton and Tauranga. If successful, the program would be extended to all 165 of the company’s trains.

In Zimbabwe, the National Oil Company will release 30 million jatropha plant seedlings by March to farmers. The jatropha seedlings will be used to provide 40,000 hectares of jatropha, which would be used as a source for jatropha oil biodiesel production. 22 million seedlings had previously been distributed.

In China, the Ministry of Finance has announced policies to promote the production of biofuels from non-food feedstocks. The subsidies will be flexible, and tied to the price of crude oil. Farmers will receive up to $878 per acre planted with forest products for biofuels, and up to $791 per acre for crops planted for biofuels. The Ministry also said it would subsidize demonstration projects for cellulosic ethanol, sweet sorghum, cassava or forest-product biodiesel feedstocks. Incentives would cover up to 40 percent of project cost.

Research News:

In Bali, the WWF released a report concluding that half of the Amazon rainforest would disappear by 2030 and would release 100 billion tonnes of carbon dioxide into the atmosphere as a result, or twice the annual emissions of all countries combined.

Policy and Policymakers:

In Bali, the executive secretary of the UN Framework Convention on Climate Change said ‘I haven’t heard India being very strong in the forefront of discussions (here at Bali). But they signed up with everyone else in support of negotiations’ for the next two years to address climate change.” The official added that China is being more aggressive in demonstrating its emission reduction achievements and making new proposals to address climate change, while the Indian delegation was being silent. India has previously indicated that its national priority was poverty alleviation, not climate control.

Consumer and Fleet News:

In Oklahoma, Heartland Energy Group said that its Flex Fuel America subsidiary will open its first Heartland alternative fuel station in Broken Bow, Oklahoma. The town is a stop on the corridor between Tulsa and Texarkana, TX.

Financial News:

The Biofuels Digest Index™, a basket of public biofuels stocks, rose 3.03 percent to a 52-week high of 110.31, as all biofuels sectors soared on passage of the House Energy Bill with a 36 billion gallon ethanol mandate.  Archer-Daniels-Midland (ADM) rose w,85 percent to $37.88 to lead large cap diversified agribusiness. Pacific Ethanol (PEIX) was up 7.30 percent to $6.03 to lead the midcap ethanol stock sector, while BioSolutions Manufacturing (BSLM.OB) rose 50 percent to $0.06. Overall, winners led losers more than 7 to 1 for the day.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

US House passes Energy Bill 235-181; White House promises veto; 36 billion gallon ethanol mandate included

In Washington, the US House passed its energy bill 235-181, largely on party lines. The White House called the bill "misguided" and said that President Bush would veto it. The bill raises Corporat...

President Bush threatens to veto Energy Bill and impose biofuel mandate by executive order

In Washington, President Bush threatened to veto the Energy Bill and impose a biofuel mandate by executive order if the final bill requires utilities to get 15 percent of their power from renewable so...

US Senate Republicans block Energy Bill with filibuster threat

In Washington, passage of the Energy Bill was blocked when the Senate voted 53-42 - 7 short of the 60 required - to overcome a filibuster by Senate Republicans opposed to the bill. Senate Republic...

US Senate to vote on Energy Bill; leadership seeks 60 votes to overcome Republican filibuster in support of oil companies; Renewable Power standard appears dead

In Washington, the US Senate is expected to vote on the Energy Bill today, with last minute negotiations underway to increase support for the bill above the 60 votes needed to overcome a Republican fi...

US Senate passes Farm Bill by veto-proof majority; override of expected veto now likely

In Washington, the US Senate passed the Farm Bill by a "veto proof" majority of 81-15, and the bill now goes to President Bush, who has promised to veto it. The $300 billion Farm Bill contains $209 bi...

US Senate leaders muster 60 votes to overcome Republican filibuster by dropping Renewable Power Standard, altering tax package

In Washington, the US Senate will consider passage tomorrow of a revised Energy Bill which drops the controversial provision requiring utilities to use renewable sources to make 15 percent of their en...