Today in Biofuels: Brazil, US at odds over tariff reform at Bali; California bails out Pacific Ethanol; $425 million in new projects in The Philippines; US Senate Republicans block Energy Bill

Top Story:

At the UN Conference on Climate Change at Bali, Brazilian external relations minister, Celso Luiz Amorin, ripped into a 43-product “green list” proposed for tariff liberalization, saying they had unproven climate benefits while ethanol was left off the list despite proven results. US officials said that the US is a net importer of the proposed goods, but that freer trade conditions would increase usage by 14 percent and benefit the climate, adding that ethanol was excluded because it shows up in agricultural negiotiations. The head of the WTO said that freer trade in clean tech goods would help developing nations.

Producer News:

The State of California will raise $11.5 million from the sale of tax-exempt bonds that will be used to provide a low-interest loan to Pacific Ethanol. Critics of the move say that the bond sale is permitted under state law for companies who classify part of their plant as “waste treatment plants”, but that the production of ethanol and distillers grains involves no waste treatment.

In New York, Mascoma has moved the location of its proposed cellulosic ethanol plant from Greece to Rome (NY), citing the need to be closer to biomass sources and the suitability of the former Griffiss Air Force Base as a facility. The proposed demonstration plant would produce 500,000 gallons per year of cellulosic ethanol, and will commence production by March. The plant has received $14.8 million in assistance from New York state.

International News:

In Nigeria, the Minister of Commerce and Industry said that Nigeria is building five new sugar plants and had the potential to become a leading ethanol producer. He noted new new sugar plants are being built in Jigawa, Bauchi, Taraba, Kogi and Lagos states. Nigeria produces 50,000 tonnes of sugar out of a total consumption of 1.176 million tonnes. The National Sugar Development Council (NSDC) has requested a Presidential Initiative to construct six regional facilities producing 100,000 tons of sugar, 5 Mgy of sugar ethanol, and 25 MW of power for the factory and the national grid.

In the Philippines, three Spanish firms have announced that they are planning investments in the Philippine biofuels industry. Coromoto Comunicacion of Spain is considering the investment of $100 million in a jatropha biodiesel plant in southern Bukidnon. Abengoa Bionergy is investigating a $175 million project in Ozamis City. Green Fuel said it would invest up to $150 million in a biodiesel plant in Davao Oriental.

In South Korea, the Brazilian state oil company Petrobras has established a joint venture with Samsung to cooperate in the production and marketing of ethanol. Petrobras projected that it will sell 80 to 105 Mgy of ethanol in South Korea per year.

In the Philippines, Eastern Renewable Fuels said it would invest $43 million in an ethanol plant in central Mindanao. The plant has a planned capacity of 19 Mgy of ethanol. Eastern said it was negotiating with Junaxi State Farm in mainland China for a joint venture. Eastern is also investigating cassava plantations in the General Santos City (Socsksargen) area.

Research News:

The Chinese Academy of Sciences‘ Dalian Institute of Chemical Physics (DICP) announced that BP will provide $3 million to support the Energy Innovation Lab which focuses on clean energy. The BP China research team will work in the lab in cooperation with DICP scientists. The deal is a follow up to an cooperation agreement signed in October between BP, DISP and the water-purication company, Hyflux, to develop a zeolite membrane to purify ethanol.

Policy and Policymakers:

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 Republican leader Mitch McConnell said that the Senate would pass the bill if it did not contain a mandate requiring utilities to use renewable sources for 15 percent of their power generation, and a $21 billion tax package that would provide clean energy incentives.  The White House has threatened a veto of the bill if the two provisions were not taken out.

Consumer and Fleet News:

In Florida, Hess is distributing E10 to 60 of its 375 stations in Florida, and said it would expand to all 375 by the end of the year. Murphy Oil and Wal-Mart had previously rolled out E10 to their stations. Ethanol will be added to eight stations a day by Hess after it completes cleaning of tanks to remove residue and water.

In Pennsylvania, five school districts announced they are switching to B20 biodiesel. The Philadelphia-based, non-profit Energy Cooperative is administering $300,000 in incentive money from the Pennsylvania state Department of Environmental Protection to assist in the transition by Coatesville Area School District, Downingtown Area School District, Kennett Consolidated School District, West Chester Area School District and the Chester County Intermediate Unit. The announcement follows from an announcement by New York’s Oneonta Public Transit buses to switch to B20 for all five of its bus routes.

Financial News:

The Biofuels Digest Index™, a basket of public biofuels stocks, rose 1.99 percent Friday to close at a 52-week high of 112.50. Archer-Daniels-Midland (ADM) gained 1.77 percent to close at $38.55 after closing a $500 million bond issue.  VeraSun Energy (VSE) was up 6.18 percent to $14.43 as the company rides a hot streak following announcement of its proposed US BioEnergy merger. US BioEnergy was up 4.30 percent to finish the week at $10.91. Among small caps, Green Shift (GSHF.OB) recovered 17.234 percent to $0.034.

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