Today in Biofuels: USDA issues upward revision in biodiesel net energy return; ethanol plant at Chernobyl to remove radioactive isotopes from soil; Nature Conservancy study says land conversion causes net carbon gain

Top Story:

The US Department of Agriculture, in conjunction with researchers at the University of Idaho, released a new calculation of the energy balance of biodiesel. The new ratio, a net return of 3.5 units of energy for every unit of input, has been increased from 3.2 due to improvements in biodiesel processing since the calculation was last updated in 1998. Petroleum diesel has a net energy return of 0.83 units.

Producer News:

In Chicago, Coskata announced a strategic partnership with ICM Inc to construct a commercial scale plant for cellulosic ethanol. Coskata executives said that this first plant would open in 2010, but did not disclose the plant’s capacity. They said that full-scale cellulosic plants would cost up to $400 million and would produce 100 Mgy.

In Indiana, the Vigo County Area Plan Commission approved a rezoning of a 237-acre site for POET Energy’s proposed 115 Mgy corn ethanol plant in Farmersburg. The company will take a projected 18 months to complete construction.

In South Dakota, VeraSun Energy announced that it will relocate its corporate headquarters to Sioux Falls after its merger with Twin Cities-based US BioEnergy is complete. Vera Sun CEO Don Endres did not comment, in a press conference to announce the move, about the falling price of VeraSun stock, but acknowledged the narrowing spreads between corn and ethanol prices. He reaffirmed the company’s belief that the stock values would recover.

International News:

In Belarus, Greenfield Project Management signed an agreement with the national government to build a 145 Mgy gallon ethanol plant at Chernobyl, site of a nuclear industry accident in the 1980s. The sugar beets and grain feedstocks will be grown at the site of the former Chernobyl Nuclear Power Station, and cultivation will remove radioactive isotopes from the soil.

In the Dominican Republic, Bio E Group announced that it will construct two ethanol, plants that will produce 35 Mgy in ethanol and 30 MW of power. The plants will be located in the townships Bayaguana, Monte Plata and Quisqueya, San Pedro, and will cost $300 million to construct. Tomsa Destil and Biotech will take an ownership stake in the venture.

In Australia, the state of Victoria’s Economic Development and Infrastructure Committee, found the costs of developing biofuels could outweigh the benefits, and recommended that the state defer a decision to impose an ethanol blending mandate until 2013. Feedstock availability, and the potential to increase pressure on food prices, were cited as chief concerns of the panel.

Research News:

In Illinois, more than 30,000 downloads have been recorded in one month for a report titled “Corn-Based Ethanol in Illinois and the U.S”. The 160-page report was authored by 14 members of the College of Agricultural, Consumer and Environmental Sciences at the University of Illinois, and examine the economics and science of ethanol with a focus on feedstocks such as miscanthus and switchgrass.

A Nature Conservancy study has found that converting land to biofuel crop cultivation releases more carbon into the air than the carbon savings achieved by substitution of biofuels for fossil fuels. The study results will be published in Science magazine next month, and examines the conversion of forest, grasslands, and peatlands, and the release of carbon stored in those areas when the lands are cleared for cultivation.

Policy and Policymakers:

The European Biodiesel Board said that US exports of subsidised biodiesel threaten the existence of the global biodiesel industry. US exports surged to 80,000 tonnes per month last year from an average of 20,000 in 2006. The EBB has lodged an anti-dumping complaint with the European Commission. European mandates are expected to create a market of up to 28 million tonnes of biodiesel by 2020.

Consumer and Fleet News:

In Nevada, Q&D Construction will convert its heavy equipment to B20, following the conclusion of a successful pilot test which commenced in 2004.

In Washington state, Propel Biofuels said it would open 35 standalone biodiesel service stations this year in Washington, Oregon and California. The company said that it would sell B20 at smaller outlets and B20 and B99 at larger stations, such as its 9,000 square foot station in downtown Seattle.

Financial News:

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, dropped 2.13 percent yesterday to close at 116.74 for a third consecutive day of losses, as investors punished diversified agribusiness and ethanol stocks. For the day, Archer Daniels Midland (ADM) fell 1.83 percent to close at $41.26, while The Andersons (ANDE) was off 0.48 percent, closing at $45.65. Among mid cap ethanol stocks, US BioEnergy (USBE) tumbled 9.28 percent to $7.23. Among small caps Green Energy Resources (GRGR.PK) fell 16.13 percent to close at $0.13. Overall, declines led advances 3 to 1.

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