Today in Biofuels: Landmark study re-models soot impact in climate change, rivals carbon; Germans ethanol industry calls for protection against Brazil; Wisconsin goes 25 x 25

Top Story:

US researchers have remodeled soot emissions, concluding that soot causes nearly 60 percent of the global warming impact of CO2, and because soot has a shorter lifecycle than carbon emissions (that can last for up to 100 years), tackling soot offers a “faster win” against climate change than carbon strategies. The article, in Nature Geoscience, concluded that previous soot models had not previously accounted for the absorption of reflected sunlight. In possible confirmation of the data, significantly higher soot concentrations are found in the Arctic than Antarctic, and observations in the northern polar region show higher ice-melting rates not previously explained by the carbon emission model of climate change.

“Between 25% and 35% of black carbon in the global atmosphere comes from China and India, emitted from the burning of wood and cow dung in household cooking and through the use of coal to heat homes. Countries in Europe and elsewhere that rely heavily on diesel fuel for transportation also contribute large amounts,” commented nature.com on the sources of soot emissions.

Producer News:

In Nebraska, E3 Biofuels said that the plant’s shutdown and bankruptcy filing was not the result of its pioneering methane digestion system that provides power to the plant, but in the 25 Mgy ethanol plant. The company’s conversion of manure to power had been considered a model of closed-loop, carbon-mitigating biofuel development. The company has not yet announced plans to resume operations.

In California, Kern County Supervisors approved the 55 Mgy Cilion corn ethanol plant proposed for Famoso. Groundwater usage and wastewater concerns had been considered in the environmental report on the plant, but ultimately the county board voted 4-1 in favor of the plant.

In Nebraska, U.S. Canadian Biofuels reached an agreement with Home Federal Savings Bank to release enough collateral to complete construction of the plant. Construction had shut down after an acquisition failed last month due to financing issues. The company has identified another undisclosed buyer, which required the company to complete construction. Under the agreement, US Canadian Biofuels will sell the plant before June 30.

International News:

In Mozambique, Galp Energia and Visabeira Moçambique signed an agreement to produce biofuels from crops such as jatropha planted on up to 150,000 hectares in Mozambique. The resulting oils would be processed either in Mozambique for the domestic market, or shipped to a Galp biodiesel plant in Portugal for the European market.

In the Philippines, senior legislator Roilo Golez called on President Arroyo to issue a moratorium on biofuel production, following China’s lead. Golez said that the diversion of food for fuel production “is bad policy in the face of the food crisis.”

In Germany, the CEO of the VDB, a biofuel trade association, has called on the German government to prevent cheap Brazilian ethanol from entering the German market, saying that German firms could not compete and that their existence was threatened. Germany mandates an E2 blend in all gasoline, but grain prices have made German ethanol uncompetitive with Brazil’s sugarcane-based product. According to the Guardian, Germany produced 310,000 tonnes of ethanol last year, down 10 percent from 2006.

Research News:

At the Chicago Board of Trade, corn prices rose 20 cents to $5.44 for the benchmark May contract Tuesday, while soybeans rose 50 cents to $13.07 per bushel. Speculation is rising as investors await a report from the USDA on annual planting acreage of corn, soybeans and wheat in the US. The weakening US dollar was blamed for the price increases.

In Wyoming, Jatropha Biofuels Technologies said that initial tests showed that its jatropha oil extraction process will produce more than 20 percent more oil over expeller technologies, and is more scalable. The technology uses high pressure gas to maximize extraction rates.

In Ohio, the Third Frontier Commission awarded more than $4 million in grants to six advanced biofuels projects in the state.

Policy and Policymakers:

In Wisconsin, Gov. Jim Doyle said that the state will award $150 million over 10 years from the Wisconsin Energy Independence Fund, to encourage energy efficiency and renewable energy. The governor called for the state to generate 25 percent of its power and fuels from renewables by 2025.
Consumer and Fleet News:

Ohio State has converted its CABS buses to a B20 biodiesel blend as part of a campus-wide effort to “be greener”.

Financial News:

The Biofuels Digest Indexâ„¢ (BDI), a basket of public biofuels stocks, gained 2.07 percent to close at 118.18 as diversified agribusiness improved strongly. For the day, Archer Daniels Midland (ADM) gained 2.18 percent to close at $41.79, while The Andersons (ANDE) was up 1.61 percent to finish at $44.21. Among ethanol stocks Verasun Energy (VSE) gained 3.96 percent to close at $7.61 as its merger with US BioEnergy (USBE) approaches completion this week. Overall, advances led declines 5 to 2.

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