Today in Biofuels; Vermont House passes marijuana-to-moonshine biofuel bill; study says corn ethanol increases greenhouse gases by 93 percent; UN says world on brink of “age of green economics”

Top Story:

U.N. Secretary-General Ban Ki-moon said that the world is “on the threshold of another (transformation) — the age of green economics,” and said that “Businesspeople in so many parts of the world are demanding clear and consistent policies on climate change — global policies for a global problem.” He called for increased support of the United Nations efforts to coordinate climate change policy, saying that “Operating effectively in today’s world requires partnership. It requires co-operation, engagement and dialogue — as well as global rules.” He added that “With the right financial incentives and a global framework, we can steer economic growth in a low-carbon direction.”

Producer News:

In New Mexico, construction has halted on the 15 Mgy Clovis Biodiesel project due to financing issues. The $18 million plant was 80 percent complete and scheduled to be finished this month, but management now says that completion is six to eight months away. Project owners Ares Blue Sun blamed the run-up on soy prices and Blue Sun’s inability to close a public offering for the delay.

In Texas, Chevron Technology Ventures said that its decision to withhold further investment in Galveston Bay Biodiesel was in order to stop “throwing good money after bad”, and that the project was badly mismanaged. Chevron, in a response to a lawsuit accusing the oil giant of fraud and misrepresentation, said that Galveston Bay Biodiesel management had, without prior notice, announced that the cost of the $7.1 million project had increased to $20 million, and demanded $11.7 million from Chevron without giving detail about what the investment was for. Chevron said that it was not required under the partnership agreement to provide unlimited financial support to the project.

International News:

In Colombia, the Inter-American Development Bank awarded $1.5 million grant to the Government of Columbia for the development of a long-term plan to generate renewable energy. The grant was composed of $922,000 from the Bank’s Japan Special Fund and $594,000 from the Japanese Trust Fund for Consultancy Services, and will include a market study for biofuels and a pilot program to encourage energy efficiency among small entrepreneurs. promote investment in sustainable energy and biofuels projects in Colombia. The grant will be supervised by the Colombian Ministry of Mines and Energy.

In France, researchers at the French ministry of agriculture said that a 10 percent biofuels target could only be achieved if wheat and sugar experts are eliminated to clear land for biofuel cultivation. The report also says that, while ethanol production can be covered by domestic French cultivation, maximum vegetable oil production for France is 3.1 MT, compared to the 4.3 MT required by 20125 to meet a 10 percent biodiesel target.

In Indonesia, PTT will invest $28 million in palm oil production, including the acquisition of 95 percent of palm oil producer Mitra Aneka Rezeki for $14.75 million. The company will also construct a new palm oil refinery which will open by 2012. Mitra Aneka Rezeki has 35,000 acres of palm tree operations in western Kalimantan.

Research News:

In Washington, the multi-institution study published in Science magazine concluded that corn ethanol increases greenhouse gas emissions by 93 percent, instead of reducing them by 20 percent, over a 30-year period. Researchers said that previous studies did not take into account the effect of converting forest or grasslands to biofuel production. The study concluded that planting switchgrass would increase emissions by 50 percent. Study authors said that the role of biofuels should be limited to conversion of waste products. The Renewable Fuel Association called the study “simplistic”.

Cambridge Energy Research Associates said in a report that clean tech investment will exceed $7 trillion by 2030 including investment in wind turbines, solar panels and biofuels. The study warns that the rapid increase in the pace of investment and change could have a material disruptive impact on the traditional models of energy production and distribution, including disruption of the vehicle transportation market. It said that countries such as Germany in the photovoltaic sector, Brazil in biofuels, Spain in wind energy, and Asia in clean technology research and development are among the regions and countries that have established a major platform in the emerging clean tech industries.

Policy and Policymakers:

In Vermont, the state House has approved a measure that would permit the cultivation of hemp in the state, subject to federal approval, for biofuels and other purposes. The federal Drug Enforcement Administration regards hemp and marijuana as the same plant, although bill supporters say that the active element in marijuana can be reduced nearly to zero in industrial hemp. Hemp can be used as an ethanol feedstock, raising the possibility that, in the future, biofuels could be made from dope using a fermentation process also used to make moonshine whiskey. North Dakota has a similar law on the books, but farmers are not permitted by the DEA to cultivate hemp.

In Missouri, the state Senate passed a bill mandating a B5 biodiesel blend by 2010. Missouri would join Minnesota and Oregon as the third state to implement a biodiesel standard. Missouri already has implemented an E10 ethanol mandate.

Consumer and Fleet News:

In Japan, Nissan said that it will test E10, in the Tokachi region of Hokkaido, beginning in April. Nissan is the first Japanese carmaker to produce a flex-fuel vehicle that can run on E10, with the Murano E-10 receiving authorization from the Ministry of Land, Infrastructure and Transport after complying with E10 safety, environment and technical guidelines. The

Airbus said that the global aircraft fleet will double by 2026 — to more than 28,000 passenger and cargo aircraft, up from 13,000 today, and said that the industry’s share of greenhouse gas emissions would increase from 2 percent to 3 percent, even with the introduction of new eco-friendly jet engines. The Aviation Environment Federation, said that the 50% reduction in fuel consumption suggested by Boeing as a 2050 target, must be brought forward by several decades.

Financial News:

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, gained 0.20 percent yesterday to close at 116.97 to end a three-day run of declines. For the day, diversified agribusiness The Andersons (ANDE) gained 2.72 percent to 46.89, while ethanol stocks were led by VeraSun Energy (VSE), up 2.39 percent to $9.43. Among small caps, BlueFire Ethanol (BFRE) was up 3.23 percent to $4.15, while Bio Solutions Manufacturing (BLSM.OB) fell a whopping 28.57 percent to close at $0.01. Overall, declines led advances 4 to 3.

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