Today in Biofuels: World Bank climate change survey seeks respondents; palm oil prices subside; Indian sugar growers blockade rail, roads
Top Story:
An online survey on climate change supported by the World Bank, the World Conservation Union, the International Development Research Centre, and GlobeScan is available, and seeking response from climate change professionals. The survey is the second in a pre-Bali / post-Bali survey of professional opinion. The pre-Bali survey rated biofuels produced from food crops like corn as having the least potential of 18 technologies for reducing carbon emissions over the next 25 years without unacceptable side effects, trailing coal as a force for climate change mitigation. Survey results will be distributed to decision makers around the globe, and respondents will have immediate access to interim findings presented in Bali as well as a summary report in two months. The survey is available in the six official UN languages here.
Producer News:
In Missouri, Show Me Ethanol may miss out on $6 million in interest savings on low cost state government loans because of conflicts of interest. State rules prohibit legislators or their immediate family from becoming investors in plants that receive favorable state tax treatment, and state Rep. John Quinn, the brother of state Governor Matt Blunt, and the wife of U.S. Rep. Sam Graves are Show Me Ethanol investors., State Treasurer Steelman says that there will be no exceptions to the conflict of interest rules, while the investors are considering the option to sell off their investments.
In Pennsylvania, Conoy Township is nearing a decision on the $100 million Lancaster Biofuels ethanol plant project. The board, which is wrapping up public commentary this month, and written testimony by February 22nd, is expected to make its decision by March 13th.
In Indiana, Lake County Solid Waste Management District Board is reviewing proposals from Genahol-Powers 1 and Indiana Ethanol Power, both of Evansville, to convert county garbage into ethanol. The J.W. Spear engineering firm, is currently analyzing the technical feasibility of each company’s proposals.
The National Algae Association announced the opening of its new headquarters serving all areas of the algae industry. The association provides an open exchange forum for the publishing of technical papers and the announcement of the results of research into the latest algae related technologies. The association also supports discussion and development of new markets that take advantage of the tremendous potential of algae, not only as a source of renewable energy, but also in the exploration and development of other markets for algae products, such as cosmetics, pharmaceuticals and fertilizers. The association said that it intended to provide a forum where algae researchers and producers could come together to exchange ideas concerning the latest developments in algae production and the products made from algae. The identity of founding members of the association and its initial projects and budgets were not disclosed.
International News:
In India, Sir Richard Branson said that India and Britain should run 70 percent of vehicles on sugar-based ethanol. Branson spoke at an India-Britain CEO roundtable on climate change. He said that sugar prices were low, the technology was mature, and the emissions benefits were established and accepted. Other participants warned of the effect on food prices of large-scale diversion of croplands to biofuel production, and noted that the EU is moving only cautiously towards adoption of a biofuels policy.
A German academic has analyzed the factors that are causing deforestation of the Amazon, and concluded that sugarcane ethanol production in south-central Brazil is not pushing cattle and soy farming into the Amazon region. Peter Zuurbier, Associate Professor and Director of the Wageningen UR Latin America Office, said that the problem is unclear land titles, unscrupulous timber companies, and poor soil conservation practices by cattle ranchers. He said that after illegal clear cutting by timber companies, the land is occupied by nomadic cattle herds that, over a period of 3 to 4 years, ruin the thin soil of the Amazon areas, which causes fertilizer-based soy farming to be brought into the area to improve productivity.
In India, sugar cane growers established rail and road blockades to protest the non-payment of nearly $5 million that is owed to them by Bihar State. Noting the non-payment protests, the Bihar Times is asking how the Bihar State government is going to be able to finance its ambitious ethanol policy. Bihar has indicated that it hopes to reactivate as many as 15 sugar mills to produce ethanol, although the central government has required that only mills that produce sugar and ethanol will receive a waiver from the 1966 Sugarcane Control Order which bans the direct conversion of sugar juice into ethanol fuel. Previously, ethanol could only be made from molasses.
In Indonesia, the National Biofuel Development Committee is expected to propose a 1 percent biofuels mandate in this year’s legislative session. The proposed mandate would increase biofuels consumption from 7 Mgy to 158 Mgy. Meanwhile, the state oil and gas company Pertamina said it was reducing biofuel blends from 5 percent to 2.5 percent in its biosolar and biopremium products owing to losses of $1.8 million resulting from high ethanol and crude palm oil prices.
Research News:
Crude palm oil prices have begun to fall in Malaysia, as biodiesel demand drops off due to 80 percent price increases over the past 18 months. April crude palm oil prices fell to $944 per tonne on the Bursa Malaysia Derivatives Exchange Refined, as export s fell 35 to 40 tons according to cargo surveys conducted by Intertek Testing Services and Societe Generale de Surveillance to as low as 567,583 tonnes, from 946,210 tonnes.
Policy and Policymakers:
The Miami Herald published a comparison of the climate change policies of the key remaining US Presidential candidates. Supporters of energy development funds include: Clinton, Obama, Edwards. Emission caps: Clinton, Obama, Edwards, McCain, Huckabee. Higher fuel efficiency standards: Clinton, Edwards, Obama, Huckabee. Carbon auctions, or cap-and trade: Obama, Edwards, Huckabee. Nuclear power: Giuliani.
Consumer and Fleet News:
In South Dakota, consumers are facing the elimination of a long-time 2-cent-per-gallon tax break on ethanol. The bill was introduced by legislators to add an projected $4 million to a badly depleted highway fund. Opponents says that increasing taxes on South Dakota’s most successful new industry was a bad idea. Meanwhile, Gov. Rounds has proposed a 2-cent-per-gallon tax break for biodiesel to jump start demand for the fuel.
Financial News:
US markets were closed for the Martin Luther King holiday, but observers are expecting a financial “bloodbath” following plunging stock future indices, down more than 2.6 percent, and soaring bond rates which pushed US Treasury yields to 50 month lows. Investors are fleeing equities due to concerns of a US recession. On Friday, The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, fell 0.72 percent Friday to close at 116.91, down more than 15 percent for the year to date. It was the fourth consecutive day of losses for the Index. Among diversified agribusiness, The Andersons (ANDE) dropped 0.68 percent to close at $44.05, while Aventine Renewable Energy (AVR) led the decliners among mid cap ethanol stocks, down 2.02 percent to close at $9.23. Among small caps, Xethanol (XNL) rose 5.41 percent to $0.78 while Environmental Power (EFG) tumbled 10 percent to $4.14. For the day, declines led advances 4 to 1.
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