[Biodiesel News] Biofuels, low inventories may lift palm oil prices

Biofuels, low inventories may lift palm oil prices
Business Times - Malaysia - Malaysia
SINGAPORE: Palm oil prices are likely to rise by 10 per cent early next year as surging world demand for biodiesel is expected to increasingly reduce ...

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Posted by Vince to Biodiesel News at 9/14/2006 05:22:00 AM

[Biodiesel News] D1 Oils to buy major site for biodiesel production, distribution ...

D1 Oils to buy major site for biodiesel production, distribution ...
Life Style Extra - UK
LONDON (AFX) - D1 Oils Plc said it is buying a major site at Bromborough in North West England for 3 mln stg for conversion to biodiesel production, storage ...

D1 Oils to buy major site for biodiesel production, distribution on Merseyside

LONDON (AFX) - D1 Oils Plc said it is buying a major site at Bromborough in North West England for 3 mln stg for conversion to biodiesel production, storage and distribution.

D1 said it expects initial capacity of 100,000 tonnes from conversion of the 47-acre site to biodiesel production in 2007, at an estimated capital cost that would be lower than full construction. The group plans to increase refinery capacity by a further 100,000 tonnes in 2008.

Refining operations are anticipated to commence in 2007

D1 expects total UK biodiesel production capacity to reach 420,000 tonnes by end-2008.

D1's intended strategy is to invest up to 8 mln stg in the site during 2007 to convert the site to biodiesel production and provide working capital. D1 is currently reviewing a number of potential funding options for this planned investment.

Production from the site should deliver a contribution to both group revenues and earnings in 2007, D1 added.

It is intended that the first phase of operations at the new site will create around 45 new jobs.

Chief executive Elliott Mannis said: 'Refining is a major part of D1's strategy alongside agronomy and trading, and this transaction has the potential to make us the UK's largest biodiesel refiner within two years.'

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Posted by Vince to Biodiesel News at 9/14/2006 05:24:00 AM

[Biodiesel News] Cargill Earns Highest Quality Designation for Biodiesel Fuel

Cargill Earns Highest Quality Designation for Biodiesel Fuel
Food Ingredients First (press release) - Duiven,Netherlands
14/09/06 Although new to biodiesel production in the United States, Cargill took measures while constructing its biodiesel facilities so that it could help ...

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Posted by Vince to Biodiesel News at 9/14/2006 05:25:00 AM

[Biodiesel News] Axiom eyes $36m IPO for Geelong plant

Axiom eyes $36m IPO for Geelong plant
The Age - Melbourne,Victoria,Australia
Biodiesel interest Axiom Energy is planning to raise $36 million in an initial public offering, to create a biodiesel production facility in Geelong. ...

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Posted by Vince to Biodiesel News at 9/14/2006 05:25:00 AM

[Biodiesel News] Rendering plant branches out into biodiesel fuel production

Rendering plant branches out into biodiesel fuel production
ChronicleHerald.ca - Halifax,Nova Scotia,Canada
... Its newest venture, started a couple of years ago, involves making biodiesel fuel from vegetable waste collected from restaurants around the province. ...


CANARD — Dale Scott has been around the family business for a long time: Most of his life.

So when he sees an opportunity to diversify, create new products and meet new markets, he’s willing to use his own resources and take a risk.

The family business, S.F. Rendering Ltd., began almost 40 years ago, rendering chicken and pork waste into animal feed. It has since expanded into manufacturing products for the mink and fur industries and making pet food.

Its head office is in Canard, a farming community north of Port Williams, and it has a processing and freezing facility in New Brunswick. The company also has 200 hectares of farmland in Kings County.

Its newest venture, started a couple of years ago, involves making biodiesel fuel from vegetable waste collected from restaurants around the province.

With help from the National Research Council, the company hired chemical engineer John Houck two years ago to begin doing trials on biodiesel. The company has been, in essence, a pilot project for the manufacture of biofuel, said Mr. Houck.

"We’re now at the point where we can make biodiesel fuel from waste vegetable oil," he said in an interview at the Canard plant. The biggest challenge so far has been making a consistent product.

The company is producing 3,600 litres of biodiesel fuel per eight-hour shift. Some of it is being used in company vehicles to replace the more environmentally harmful petroleum products. But most of it is being burned in the plant’s boilers.

"We tend to use the worst, nastiest raw materials because it’s cheaper than using canola oil," said Mr. Houck.

"The problem is there is a finite supply of waste vegetable oil."

Now the company is looking at other sources of raw material, including canola oil, which is plentiful in Western provinces but is not grown commercially in Nova Scotia.

S.F. Rendering has capacity to make two million litres of biofuel and Mr. Scott is growing six hectares of canola. But to manufacture fuel, huge amounts of canola oil would need to be grown. And infrastructure is needed, particularly seed crushing facilities.

Although the environmental benefits of switching to biofuel are significant — it’s biodegradable and has no sulphur and therefore no greenhouse gas emissions — the profit margins are extremely low.

In other countries, like the United States and Italy, the world’s third-largest producer of biofuel, the government provides financial incentives, mostly tax credits, to make and consume biofuels. There are no such incentives in Canada.

Mr. Scott said he’s willing to use his own resources and accept the risks, but he needs a financial incentive from government to make it worthwhile. So far, he has received lots of encouragement but no cash.

"We’ve gotten to the point where Dale is willing to assume more of the risks to go bigger," said Mr. Houck. "But you need volume to make it work."

Mr. Scott would like to make up to 10 million litres a year and sell it to large institutional consumers, like hospitals, schools, prisons and government buildings.

He’d like to see a fuel tax credit, like those in other countries.

Representatives of several provincial government departments will visit his plant this week to view the biofuel operation.

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Posted by Vince to Biodiesel News at 9/14/2006 05:26:00 AM

[Biodiesel News] DGAP-News : EOP Biodiesel AG exceeds FY 2005/06 forecast

DGAP-News : EOP Biodiesel AG exceeds FY 2005/06 forecast
Frankfurter Allgemeine Zeitung - Frankfurt,Germany
Pritzwalk, Germany, 14 September 2006 - EOP Biodiesel AG, Pritzwalk, ended the financial year 2005/06 (to 30 June) with an annual net profit of EUR1.22 million ...

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Posted by Vince to Biodiesel News at 9/14/2006 05:25:00 AM

[Biodiesel News] Alternatives to oil

Alternatives to oil
Maui News - Wailuku,HI,USA
... Biodiesel and ethanol are leading contenders. ... MECO now is soliciting contractors for testing biodiesel in its diesel generators at Maalaea. ...

KAHULUI

The best chance for increasing Maui Electric Co.’s proportion of renewable energy sources looks like alternative fuels rather than different technologies.

Biodiesel and ethanol are leading contenders. Garbage and perhaps methane derived from buried garbage are possibilities.

Right now, there’s not much biodiesel and there’s no local ethanol, and it remains an open question whether either fuel can be adapted to MECO’s generators.

If either could be, says President Ed Reinhardt, using these scarce biofuels in stationary generating plants is better than using them as vehicle fuel.

The reason is that autos are becoming more efficient, and they are replaced after a few years. Generating plants don’t get replaced often – MECO’s oldest was built in 1948 – because they cost so much.

While it is possible to get some efficiency gains from better operational controls on stationary generators, the simplest would be to change fuels.

MECO now is soliciting contractors for testing biodiesel in its diesel generators at Maalaea. It has 15 of them (and more on Molokai and Lanai), some producing as much as 12.5 megawatts.

Stan Kiyonaga, who manages MECO’s power production, says the utility has been using biodiesel at startup and shutdown of some of its diesels to address an opacity problem. That is, the engine coughs out smoke that exceeds Clean Air guidelines.

Mechanical fixes, such as forced air exhaust, didn’t work well, so MECO experimented with biodiesel just for the critical times.

That worked, but Kiyonaga says with biodiesel, which has more oxygen in it, it is harder to manage nitrogen oxide emissions.

“We have to be careful.”

There also may be maintenance issues. Diesels have to be rebuilt periodically.

But it might be possible to replace more, even all of the petroleum diesel with biodiesel.

Further out, MECO is considering if it could run its combustion turbines, which produce most of its electricity, with biodiesel.

There is the supply question. Pacific Biodiesel, which uses waste restaurant oil as its feedstock, has maxed out that source on Maui and has plenty of customers for its output already.

Both Maui Land & Pineapple Co. and Hawaiian Commercial & Sugar Co. are investigating fuel crops.

HC&S already has one: sugar cane, which now provides biomass fuel but also could be turned into ethanol.

Most of MECO’s renewable portfolio always has come from bagasse: cane residue that HC&S burns to make electricity and sells to MECO. HC&S is moving toward producing ethanol from molasses, perhaps 5 million gallons a year. That likely would go to motor fuel since the state is requiring 10 percent gasohol for autos.

If HC&S converted its sugar to ethanol, its output might rise to 36 million gallons. But even that is a tiny fraction of U.S. ethanol output, now measured in billions of gallons.

Reinhardt says MECO gets frequent inquiries but has had no firm proposals from anybody for alternative energy sources, aside from Kaheawa Wind Power farm and another one to be built at Ulupalakua Ranch.

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Posted by Vince to Biodiesel News at 9/14/2006 05:23:00 AM

[Biodiesel News] Biodiesel-what are the benefits of this alternative fuel source?

Biodiesel-what are the benefits of this alternative fuel source?
Union Sentinel - Blairsville,GA,USA
... Biodiesel may be just that fuel source you are looking for. What is biodiesel you may be asking? Biodiesel is an alternative fuel ...

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Posted by Vince to Biodiesel News at 9/14/2006 05:22:00 AM

[Biodiesel News] Officials consider biodiesel plant

Officials consider biodiesel plant
Marysville Advocate - Marysville,KS,USA
By Vernita Peeks. Marshall County is being considered as a possible location for a closed-loop ethanol plant that would involve waste ...

Marshall County is being considered as a possible location for a closed-loop ethanol plant that would involve waste management, beef cattle production and ethanol production.

Brian Barber, project development director for E3 BioFuels, Shawnee, met with the county commissioners and community members to learn about a plant being developed in Mead, Neb.

Present for the discussion were Daryl Benteman, Waterville, representing the Farm Bureau; Brian Studer and Mike Studer, Beattie; Merlin Frerking, Herkimer, Tony Smith, Axtell, Bob Voet, Home City, Jim Borgerding, Marysville, of Nemaha-Marshall Rural Electric; Bill Oborny, Marysville, and Gerald Gerstner, Frankfort, Marshall County Economic Development Council; Mike Vogt, Marysville, extension agent; Lynsey Wanklyn, Frankfort, economic development director; and Doug Plegge, Frankfort.

Barber said when the Mead plant goes into production, E3 BioFuels wants to move the contractor to the site of the next E3 plant.

Barber said he is looking for the site of that next plant. The Mead plant will be operational in late October or early November, he said.

Barber showed photographs of the Mead location and explained the closed-loop process shown in the accompanying diagram.

The diagram is from the E3 Internet site www.e3biofuels.com.
The three parts of the loop, Barber said, are:

• an anaerobic digester that uses bacteria to transform manure and thin stillage into biogas, water and a fertilizer/compost product;
• an onsite feedlot that uses wet distillers grain from the ethanol process along with corn, hay and silage as cattle feed and produces manure and beef;
• an ethanol plant powered 90-100 percent by biogas from the digester with natural gas up to 10 percent to produce ethanol and byproducts of thin stillage and wet distillers grain and water.

Barber said 50 percent or more of the water from the digester and the ethanol plant can be recycled into the process.

The Mead plant is a 25-million-gallon-per-year plant with a 30,000 head cattle feedlot operation, Barber said, but operation of the plant will be the true test of these numbers.

Barber said the next plant will be a 50-million-gallon ethanol plant with 60,000 head of cattle to get better benefit of the process and will have the advantage of everything learned at the Mead plant.

The larger plant will use 20 million bushels of corn a year, Barber said, and create 75-80 jobs.

This next, bigger plant will have a cost of $120-$130 million and up to 25 percent local investment would be allowed but not required, Barber said.

Investment would have to be through one investment group, not by individuals, he said.

Barber said E3 is looking at nine communities now, not just Marshall County, as a location for the next plant.

Barber listed criteria for potential sites of E3 BioFuels projects.

The list covers community support; federal, state and community incentives related to financing; site requirements and requirements for the surrounding area.

A copy of the criteria list is available from Wanklyn at the economic development office in the courthouse.

“What can we do to encourage Marshall County as the choice?” Commissioner Mick Keating said.

Barber said the biggest thing is community support.

Keating said he is very much in support of an E3 plant because it conserves fossil fuels.

When Barber was asked about corrosion of the anaerobic digester from the manure, he said the digester walls are 18 inches thick and made of separately sprayed layers of concrete. The next site would probably have multiple smaller digesters so the process can be better controlled, he said.

Wanklyn, Plegge and Commissioner Charlie Loiseau, Frankfort, toured the Mead plant recently. The plant is built around an existing feedlot constructed in 1969.
Plegge and Loiseau both said they were surprised at how little smell there was.
Barber said people from Washington County toured the Mead plant when E3 was looking into locating a plant in Washington County and commented that there was less smell than for an open feed yard.

Commissioner Dan Hargrave, Waterville, asked if farmers will be able to sell corn directly to the plant.

Barber said E3 wants to buy directly from farmers as well as from cooperatives and other sources. The plant will use both corn and milo, he said, and alfalfa will be purchased, too.

Oborny asked if there is enough corn in this area.

Barber said studies still show Kansas and Nebraska are good spots for ethanol plants.
Barber said he would have an engineer contact Nemaha-Marshall about the requirements for electricity.

Plegge said an E3 plant would be a big boost for the whole county. He suggested public meetings and a chartered bus trip to Mead for people who would like to see the plant there.

Barber said E3 would have to narrow down the list of possible sites to about three and purchase options on these sites before scheduling meetings.

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Posted by Vince to Biodiesel News at 9/14/2006 05:20:00 AM

[Biodiesel News] Biodiesel celebrates 10-plus years at Yellowstone National Park

Biodiesel celebrates 10-plus years at Yellowstone National Park
Biodiesel Magazine - Grand Forks,ND,USA
... Clean Cities Workshop in the Grand Teton National Park’s Moran Junction in Moran, Wyo., gave recognition to more than 10 successful years of biodiesel use in ...

On Sept. 12, the United Soybean Board (USB), in conjunction with the U.S. Department of Energy's (DOE) Central Regional Clean Cities Workshop in the Grand Teton National Park’s Moran Junction in Moran, Wyo., gave recognition to more than 10 successful years of biodiesel use in the U.S. national parks system.

The workshop provided a venue whereby those interested could gain more information on the benefits and the challenges associated with a decade’s worth of biodiesel use. Guest panelists featured USB Director Chuck Myers, Yellowstone National Park Environmental Manager Jim Evanoff and Clean Cities Projects Manager Ernie Oakes.

Each panelist made opening statements prior to fielding questions by media and those in attendance. Myers spoke to the environmental benefits of burning biodiesel and thanked the U.S. DOE for its continued support for biodiesel. “A little over 10 years ago, a soybean check-off-funded study established important standards for testing soy biodiesel to ensure quality,” Myers said. “About the same time, Yellowstone became the first national park to begin using biodiesel in diesel engines.”

He said this milestone more than 10 years ago was important because it demonstrated to parks, federal departments and agencies that biodiesel could be used successfully in daily operations. It also illuminated the importance of working closely with qualified distributors and retailers to more fully advance biodiesel’s positioning in the mainstream. “And it confirmed that biodiesel can be used successfully in one of the harshest, all-weather climates in the United States,” Myers said. When cold weather comes around, Yellowstone lowers its blend, incorporates an additive, and when the temps drop below zero, staff members plug the vehicles in, or park them indoors.

Yellowstone National Park was the first national park established in the world. “With that being said, we feel an obligation to be first at doing the right thing environmentally, and as a result we have undertaken a whole cadre of initiatives,” Evanoff said. “One of them, and one of the most successful, has been the introduction of biodiesel and biodegradable fuels in Yellowstone National Park.”

He said there are now five public biodiesel pumps in the greater Yellowstone area and 23 national parks, in addition to many different federal agencies and departments, which have latched onto biodiesel. “We’ve reduced by 500 tons the amount of carbon dioxide going into the atmosphere annually,” Evanoff said, referring only to Yellowstone’s use of biodiesel blends in its entire fleet of diesel applications. The average blend through the year is 20 percent, which Evanoff said increases in the warmer months and decreases in the colder months. Yellowstone purchases about 30,000 gallons of B100 annually, which is blended down, he said.

Oakes said his goal through the Clean Cities initiative is to make sure at least half the parks in the United States and all of the cities he works with move to using biodiesel “in a major way,” he said. “This is our 10th year working on this type of a project, and I see great things coming in the future.”

Issues discussed at the workshop included the solvent-like properties of biodiesel, which Evanoff said he’d like parks and other fleets to consider if they are looking to convert to high-biodiesel blends or B100. Older vehicles could contain rust or scaling in its fuel system, which could become dislodged from exposure to B100 or high blends, clogging up fuel filters. “Be aware of that,” he said.

Evanoff also said they “dispelled the myth” that the appealing aroma of B100 emissions would attract grizzly bears—the park started its testing of biodiesel with B100 on one diesel vehicle more than 10 years ago. They tested the notion on bears in captivity, which proved to be false.

A question of biodiesel cost arose, to which Evanoff said the last big shipment Yellowstone purchased was about $1 per gallon cheaper compared to regular diesel fuel, which wasn’t always the case. “If you’re asking about overall cost savings to the park over the course of a year, we’re in the middle of extrapolating those numbers,” he said.

Additionally, Myers said the parks have adopted soy-based products to replace traditional petroleum-based lubricants and cleaners. “We have switched from over 140 somewhat toxic cleaning and janitorial products from the park to nine biobased products that come out of Nebraska,” Evanoff said.

One of the takeaway messages to those investigating the use of biodiesel in their own parks or fleets is securing a fuel supplier that is “on board” with the success of biodiesel, Evanoff said. The role of the USB in biodiesel’s success was also highlighted.

“Fifteen years ago it was just a group of soybean farmers talking about what to do with the excess soybean oil we had on the market,” Myers said. “Biodiesel was a possibility. … During that 15-year period, soybean farmers through their soybean check-offs have invested about $35 million to help develop biodiesel. We’re very happy to be where we are today and to be here talking about biodiesel being used in Yellowstone for these past 10 years.”

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Posted by Vince to Biodiesel News at 9/13/2006 11:00:00 AM

[Biodiesel News] 11 Stinker stations in Idaho to offer biodiesel

11 Stinker stations in Idaho to offer biodiesel
KTVB - Boise,ID,USA
The stations upgraded their pumps and equipment to carry the environmentally friendly gas blend after receiving an $124,000 grant from the US Department of ...

BOISE -- Eleven Stinker gas stations in southwestern Idaho will begin pumping biodiesel next week.

The stations upgraded their pumps and equipment to carry the environmentally friendly gas blend after receiving an $124,000 grant from the U.S. Department of Energy and the Idaho Department of Water Resources.

The stations will offer a blend of 10 percent biofuel and 90 percent petroleum diesel at first.

But they plan to get ready for a 20 percent blend of biofuel soon.

State and company officials will mark the change next Monday at a downtown station on Main Street in Boise.

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Posted by Vince to Biodiesel News at 9/13/2006 11:02:00 AM

[Biodiesel News] Oregon school district to test biodiesel fuel in trash truck

Oregon school district to test biodiesel fuel in trash truck
Waste News - Akron,OH,USA
Sept. 13 -- The Portland, Ore., public school district is launching a pilot project to test the use of biodiesel fuel in a Waste Management Inc. ...

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Posted by Vince to Biodiesel News at 9/13/2006 11:03:00 AM

[Biodiesel News] The Last Straw? Making Gas From Crop Residue

The Last Straw? Making Gas From Crop Residue

September 1, 2006 – Illegal to burn and expensive to move, straw creates serious disposal problems for the grass seed industry. Luckily, two Agricultural Research Service (ARS) labs are collaborating with scientists from the Laramie, Wyo., Western Research Institute to develop a small-scale gasification reactor.

The Pacific Northwest grass seed industry that provides seed for lush lawns for homes, parks and golf courses also produces millions of tons of straw every year, only a fraction of which can be used as mulch for conservation.

ARS researchers at the Forage Seed and Cereal Laboratory in Corvallis, Oregon, and the Crop Conversion Science and Engineering Laboratory in Wyndmoor, Pennsylvania, are developing technology for converting that straw into synthetic gas that can be used to produce electricity or liquid fuel.

Within the prototype reactor, straw is reduced to char—small particles of carbon and residue—and converted into a mixture of vaporized gases that can be used to produce liquid, synthetic gas.

Scientists believe the research will enable them eventually to develop an economically feasible method to dispose of straw because it eliminates the expense of transporting straw off property.

The technology is still undergoing trials to improve its effectiveness and economy. ARS chemical engineer Akwasi Boateng, at Wyndmoor, and plant physiologist Gary Banowetz at Corvallis, believe that in the near future, the small-scale gasification system will provide not only an environmentally beneficial alternative to field-burning grass straw, but an economically competitive alternative to fossil fuel-derived energy.

Based on the carbon content of straw, Banowetz estimates that synthetic gas produced in the reactor could be converted into about 60 gallons of fuel per ton of straw. With 7 million tons of excess grass and cereal straw generated each year, the Pacific Northwest has the potential to produce 420 million gallons of liquid fuel.



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Posted by Vince to Biodiesel News at 9/13/2006 09:35:00 AM

[Biodiesel News] The Last Straw? Making Gas From Crop Residue

The Last Straw? Making Gas From Crop Residue

September 1, 2006 – Illegal to burn and expensive to move, straw creates serious disposal problems for the grass seed industry. Luckily, two Agricultural Research Service (ARS) labs are collaborating with scientists from the Laramie, Wyo., Western Research Institute to develop a small-scale gasification reactor.

The Pacific Northwest grass seed industry that provides seed for lush lawns for homes, parks and golf courses also produces millions of tons of straw every year, only a fraction of which can be used as mulch for conservation.

ARS researchers at the Forage Seed and Cereal Laboratory in Corvallis, Oregon, and the Crop Conversion Science and Engineering Laboratory in Wyndmoor, Pennsylvania, are developing technology for converting that straw into synthetic gas that can be used to produce electricity or liquid fuel.

Within the prototype reactor, straw is reduced to char—small particles of carbon and residue—and converted into a mixture of vaporized gases that can be used to produce liquid, synthetic gas.

Scientists believe the research will enable them eventually to develop an economically feasible method to dispose of straw because it eliminates the expense of transporting straw off property.

The technology is still undergoing trials to improve its effectiveness and economy. ARS chemical engineer Akwasi Boateng, at Wyndmoor, and plant physiologist Gary Banowetz at Corvallis, believe that in the near future, the small-scale gasification system will provide not only an environmentally beneficial alternative to field-burning grass straw, but an economically competitive alternative to fossil fuel-derived energy.

Based on the carbon content of straw, Banowetz estimates that synthetic gas produced in the reactor could be converted into about 60 gallons of fuel per ton of straw. With 7 million tons of excess grass and cereal straw generated each year, the Pacific Northwest has the potential to produce 420 million gallons of liquid fuel.



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Posted by Vince to Biodiesel News at 9/13/2006 09:35:00 AM

[Biodiesel News] Biodiesel Boom Changing Dynamics of Global Vegetable Oil Industry

Biodiesel Boom Changing Dynamics of Global Vegetable Oil Industry


Demand for Vegetable Oils at Historic Levels, Income Gains to Remain Strong Non-Traditional Investors Entering the Market

New York, August 18, 2006 – Expect higher prices for vegetable oil, as a new study by Rabobank's Food and Agribusiness Research group recently found increasing global appetite for biodiesel and other biofuels is driving demand for vegetable oils to historic levels in world markets, leading to higher prices for vegetable oils relative to meals and causing soybean crushers to reevaluate their business models. The confluence of environmental concerns, high-energy prices, and government incentives, which is fueling demand growth, is also driving expansion on the supply side, leading to significant increases in oilseed processing capacity.

Speaking at a recent conference on biodiesel and canola in Alberta, Canada, Alejandro Reca, PhD, executive director of Rabobank's Food and Agribusiness Research group in the Americas, discussed the dynamics driving the strong demand for biodiesels and predicted that the recent income gains in the global vegetable oil sector would be sustained over the long term.

Worldwide use of vegetable oils is expected to post growth of approximately 5.5% CAGR between 2005 and 2010, a significant departure from historical rates, reflecting the newly expanded biodiesel application.

"Biodiesel is proving to be a significant demand shifter in the overall vegetable oil industry," said Reca, "but the canola and palm sectors will benefit more proportionally from this growth, thanks to their high oil content and the oils' multiple uses as food and foodstock."

Reca added that Canada is expected to capture at least half of the anticipated 300% increase in production and crushing of canola, with Southeast Asian countries expected to reap the rewards of the more than 500% expansion of palm oil processing which is forecast for that region.

He also predicted recent income gains in the global vegetable oil industry would remain strong, since food consumption of vegetable oils should mitigate any potential decline in non-food uses of vegetable oil.

Reca noted, however, that the variance between lower prices for vegetable meals and higher prices for vegetable oils, as well as the increasing competition from DDGs, was causing many soybean crushers to rethink their traditional business models.

Reca cited several factors driving both supply and demand growth of biodiesel, notably the Kyoto protocols, the U.S. ban on MTBEs and requirement for ultra-low sulfur diesel, and increasing international government interventions in the areas of mandatory contents, tax credits, and differential taxes.

Additionally, continued instability in oil-producing regions and the resulting higher oil prices have prompted policymakers and industry to pursue alternative fuels which are cleaner and often produced from locally-grown and renewable commodities such as vegetable oils, which appeal to Western consumers.

"The tremendous opportunities presented by biodiesel today are attracting non-traditional investors to the agribusiness sector, such as financial institutions and private equity firms, as well as traditional energy and agribusiness players," Reca commented. "The result is that our energy and agricultural markets are becoming increasingly interrelated."

Reca noted the significant increase in manufacturing infrastructure as well, with approximately 50 plants currently under consideration for the U.S. market, along with a shift to larger scale plants. Many biodiesel manufacturers are locking in solutions such as supply agreements and off-take contracts to mitigate their long-term risk. He added that many automakers and agricultural machinery manufacturers, with an eye toward the future, are extending their warranties to allow for biodiesels use.

"Today's market conditions create the ideal environment for investment in and promotion of alternatives to petrofuels, and biodiesel in particular is attracting significant support on both the supply and demand side. As a result, the growth in the biodiesel market has economic and commercial implications far beyond just the energy markets, from increasing production and creating new trade flows for vegetable oils, to attracting new investors to the agribusiness sector, and ultimately to increasing the integration of global agricultural and energy markets," he concluded.

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Posted by Vince to Biodiesel News at 9/13/2006 09:41:00 AM

[Biodiesel News] Pennsylvania Governor Rendell Continues Push Towards Energy Independence

Pennsylvania Governor Rendell Continues Push Towards Energy Independence

State’s First Ethanol Production Plant to Locate in Clearfield County

Clearfield, Pa., Aug 21, 2006 – Governor Edward G. Rendell recently announced Pennsylvania's first ethanol production facility will locate in Clearfield County and build on the state's commitment to helping consumers move away from high-cost fossil fuels to homegrown energy solutions.

"Today, Pennsylvania takes another gigantic step forward on the renewable energy front in a move that will lessen our dependence on foreign energy sources," said Rendell last week. "With gas prices at or above $3 a gallon, Pennsylvania is sending approximately $30 billion overseas. It's time to take that money and invest it at home by supporting new technologies that will grow our economy and open the door to new opportunities.

"The plant that we're announcing today will help do just that. By producing approximately 108 million gallons of denatured, fuel-grade ethanol per year, we will not only break the grip of foreign oil cartels, we will create new markets for our corn growers and help foster a cleaner environment.

Rendell was joined by top executives from BioEnergy International, LLC and Lukoil Americas, two important partners in the project. BioEnergy will build and operate the facility and Lukoil will serve as the exclusive distributor of the finished product.

The Governor presented BioEnergy with $17.4 million in state investments to support the $250 million project. The package includes a $400,000 grant through the Opportunity Grant Program, $500,000 in Job Creation Tax Credits ($300,000 for the ethanol plant and $200,000 for the pilot plant), loan and grants of up to $2.5 million ($1.25 million loan and $1.25 million grant) for the ethanol plant through the Infrastructure Development Program and $14 million ($11 million for the ethanol plant and $3 million for the pilot plant) through the Redevelopment Assistance Capital Program.

The majority of these funds, $180 million, will support the building of a 108-million-gallon corn-based ethanol production plant, with the remaining $70 million going towards the development of a pilot-scale cellulose demonstration plant. Plans call for at least 110 new jobs within the next five years, plus approximately 300 temporary construction jobs.

The plant will employ conventional corn-based technology and will be among the largest east of the Mississippi River, and one of the nation's top 10, based on output. The smaller pilot-cellulose plant will use BioEnergy's groundbreaking technology to produce fuels using locally available organic wastes, such as wood and agricultural residue.

"The growth potential for cellulosic ethanol is substantial," Rendell added. "The commonwealth contains enough plant matter to produce in excess of 500 million gallons of cellulosic ethanol per year. In addition, Pennsylvania very well could be the nation's leading producer of soy biodiesel within the year, going from practically zero last year to a projected 40 million gallons of annual production as more than 20 proposed biodiesel projects are in various stages of development throughout the state.

"The return on this investment will be beyond measure. Ethanol production will provide a significant contribution to Pennsylvania's economy, impacting everyone from the farmers who grow the corn, the plant employees who manufacture the fuel, and the motorists who use it in their automobiles."

"BioEnergy is excited to be moving forward with the development of our company's second ethanol plant in the U.S. and our first in Clearfield County," said Stephen Gatto, chairman and CEO of BioEnergy International. "We expect this project to have a significant economic impact on the region, creating approximately 110 jobs overall. We credit Governor Rendell with helping us choose Clearfield County for our phased, $250 million investment.

Last May, Governor Rendell launched a major new initiative, PennSecurity Fuels, to make clean energy a cornerstone of the commonwealth's growing economy through innovative policies and targeted financial incentives. The initiative is aimed at protecting consumers and businesses from crippling price spikes and supply disruptions by replacing foreign oil with clean, alternative fuels made in Pennsylvania.

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Posted by Vince to Biodiesel News at 9/13/2006 09:39:00 AM

[Biodiesel News] The Last Straw? Making Gas From Crop Residue

The Last Straw? Making Gas From Crop Residue

September 1, 2006 – Illegal to burn and expensive to move, straw creates serious disposal problems for the grass seed industry. Luckily, two Agricultural Research Service (ARS) labs are collaborating with scientists from the Laramie, Wyo., Western Research Institute to develop a small-scale gasification reactor.

The Pacific Northwest grass seed industry that provides seed for lush lawns for homes, parks and golf courses also produces millions of tons of straw every year, only a fraction of which can be used as mulch for conservation.

ARS researchers at the Forage Seed and Cereal Laboratory in Corvallis, Oregon, and the Crop Conversion Science and Engineering Laboratory in Wyndmoor, Pennsylvania, are developing technology for converting that straw into synthetic gas that can be used to produce electricity or liquid fuel.

Within the prototype reactor, straw is reduced to char—small particles of carbon and residue—and converted into a mixture of vaporized gases that can be used to produce liquid, synthetic gas.

Scientists believe the research will enable them eventually to develop an economically feasible method to dispose of straw because it eliminates the expense of transporting straw off property.

The technology is still undergoing trials to improve its effectiveness and economy. ARS chemical engineer Akwasi Boateng, at Wyndmoor, and plant physiologist Gary Banowetz at Corvallis, believe that in the near future, the small-scale gasification system will provide not only an environmentally beneficial alternative to field-burning grass straw, but an economically competitive alternative to fossil fuel-derived energy.

Based on the carbon content of straw, Banowetz estimates that synthetic gas produced in the reactor could be converted into about 60 gallons of fuel per ton of straw. With 7 million tons of excess grass and cereal straw generated each year, the Pacific Northwest has the potential to produce 420 million gallons of liquid fuel.



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Posted by Vince to Biodiesel News at 9/13/2006 09:35:00 AM

[Biodiesel News] Argent Energy welcomes NZ's move to biodiesel

Argent Energy welcomes NZ’s move to biodiesel
Scoop.co.nz (press release) - New Zealand
The company has been investigating producing biodiesel from tallow (animal fats) in New Zealand for several months but says no firm decision has been made on ...

Argent Energy welcomes NZ’s move to biodiesel

The discussion document on a proposed sales obligation for biofuels announced by the New Zealand government has been welcomed by Argent Energy New Zealand.

The company has been investigating producing biodiesel from tallow (animal fats) in New Zealand for several months but says no firm decision has been made on the location and timing for the construction of a biodiesel plant.

The New Zealand company is a subsidiary of Argent Energy UK, which operates the United Kingdom’s first large-scale biodiesel plant in Motherwell, Scotland. It has recently applied for planning permission to build a second biodiesel plant in Cheshire. That plant would have the capacity to process 150,000 tonnes of used cooking oil and tallow to produce 170 million litres of biodiesel a year.

Argent Energy UK’s development director, Dickon Posnett, has been appointed managing director of the New Zealand company. Mr Posnett has been involved with developing strategies for stimulating investment in the UK and the EU.

In welcoming the government’s discussion document he says if the introduction of biofuels is to be taken seriously as a means of providing a secure fuel supply and helping reduce carbon emissions, legislation should provide the encouragement needed for private investment.

Andy Hunter, chief executive officer of Argent Energy UK, says Mr Posnett’s appointment demonstrates the company’s commitment to developing a biodiesel business in New Zealand.

“We have carefully investigated a number of potential markets internationally and believe that New Zealand is ideally suited as a market for Argent Energy to develop,” he says.

Argent Energy uses state-of-the-art technology developed by BDI – an Austrian firm with collaborative links to the Universities at Graz in Austria - to produce high quality biodiesel.

Wilhelm Hammer, Managing Director of BDI, says he is delighted Argent Energy is actively pursuing the potential of expanding its operations both in the UK and internationally.

“We look forward to continuing to work in partnership with Argent to design and construct its first biodiesel plant outside the UK, in New Zealand,” he says.

Mr Posnett says his first priority will be to complete the study for a production facility. He says it is likely that the optimum size of plant would be capable of processing 75,000 tonnes of raw material a year to produce 85 million litres of biodiesel. This would displace more than 300,000 tonnes of carbon dioxide, the main gas responsible for global warming, he says.

Ends

Argent Energy website: http://www.argentenergy.com

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Posted by Vince to Biodiesel News at 9/13/2006 06:09:00 AM

[Biodiesel News] Biodiesel fuels vehicles on UT's campus

Biodiesel fuels vehicles on UT's campus
WATE.com - Knoxville,TN,USA
... UT. He's spearheading a project that takes leftover vegetable oil from UT Dining Services and transforms it into biodiesel. The ...

Watch the video (Biodiesel fuels vehicles on UT's campus)

KNOXVILLE (WATE) -- "Make Orange Green" is the slogan for the University of Tennessee's environmental awareness week.

Students are moving toward a self-sustaining campus, by using leftover cooking oil to fuel UT vehicles.

"In a week's time, we can produce 200 gallons of B20 for use in facility service vehicles," Scott Curran says.

Curran is a senior engineering student at UT. He's spearheading a project that takes leftover vegetable oil from UT Dining Services and transforms it into biodiesel.

Here's the four step process, starting with the waste cooking oil:

The students heat the oil and then mix it with it alcohol and lye. The chemical reaction causes the liquid to separate into biodiesel and glycerin.

Once they've drained the glycerin, they wash the biodiesel with water.

The finished product must be tested before it's ready to go in the gas tank. "We prefer not to call it biodiesel until it's met specifications," Curran says.

Not only is biodiesel made by recycling cooking oil, it is much cleaner than regular diesel.

Curran says, "Every emissions profile is better, except for the nitrogen emissions which are the same." That means the use of biodiesel dramatically reduces the amount of chemicals polluting the air.

As of now, the biodiesel produced on campus stays on campus. The students produce more than enough to fuel the 11 facility service vehicles.

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Posted by Vince to Biodiesel News at 9/13/2006 06:11:00 AM

[Biodiesel News] Research Finds Biodiesel Performs Well in Harsh Environments

Research Finds Biodiesel Performs Well in Harsh Environments
Farm Futures - Carol Stream,IL,USA
Soy biodiesel has stood up to the test of time and harsh environment conditions, according to decade-long look at use in national parks including Yellowstone ...

Soy biodiesel successfully used in Yellowstone, Grand Teton and other national parks.
(9/13/2006)
Farm Futures staff

Soy biodiesel has stood up to the test of time and harsh environment conditions, according to decade-long look at use in national parks including Yellowstone and Grand Teton.

In 1995 Yellowstone National Park began serving as the soy biodiesel testing ground for the National Park Service. The park boasts over 300 pieces of machinery operating on soy biodiesel, the centerpieces being the park's well-known yellow buses and a 1995 Dodge pickup. Yellowstone's trademark yellow tour buses have evolved into a high tech, biodiesel-powered riding experience including on-board electronic and communications gear. The pickup has been running on 100% biodiesel for over 10 years and 181,000 miles. This is no small feat, with an elevation of 6,241 ft., the mountainous region surrounding the park experiences a variety of extreme weather throughout the year, the United Soybean Board says.

Tuesday soybean leaders joined U.S. Department of Energy, National Park Service and National Biodiesel Board officials at the DOE's Central Regional Clean Cities Workshop near Jackson, Wyo., to recognize the implementation of biodiesel use at over 20 parks.

"With the Clean Cities Program, we are working with community leaders to educate them on how they can implement programs to decrease the use of petroleum in their community," says Ernie Oakes, Regional Clean Cities project manager. "Biodiesel blends have been a cornerstone of this program, specifically soy-based biodiesel produced in the United States."

Also showcased at the event was soy products with which the Teton staff has taken on an "early adopter" role. Some examples included soy cleaners, lubricants, solvents and hydraulic fluids.

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Posted by Vince to Biodiesel News at 9/13/2006 06:30:00 AM

[Biodiesel News] Government freezes new licences for biodiesel

Government freezes new licences for biodiesel
Malaysia Star - Malaysia
KUALA LUMPUR: The Government has put on hold the issuance of new manufacturing licences for biodiesel, Plantation Industries and Commodities Minister Datuk ...

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Posted by Vince to Biodiesel News at 9/13/2006 06:20:00 AM

[Biodiesel News] Biodiesel refinery first in the Delta

Biodiesel refinery first in the Delta
Delta Democrat Times (subscription) - Greenville,MS,USA
GREENVILLE - Construction of Greenville's first biodiesel refinery is about to get under way at a site on North Broadway. Scott ...

GREENVILLE - Construction of Greenville's first biodiesel refinery is about to get under way at a site on North Broadway.

Scott Petroleum began clearing the site in May for construction of the plant that will use a variety of feed stock oils for its biodiesel blend.

“It's been about a year and a half in the making,” said Darrell Forman, special projects manager for Scott Petroleum. “We've had a lot of input and a lot of hard work on the part of Tommy Hart and the Industrial Foundation. Our county and city leaders have been very supportive.”

Designers and planners have also played a vital role in getting the refinery plans this far, Forman said.



“We feel like we have taken the very best of people and developed a team to bring alternative energy to our customers, to answer our customers' call for alternative energy,” Forman said, “and also as everyone is trying to do, reduce our dependence on foreign oil.”

Construction of process equipment is already under way, said Forman, and site work is nearly complete.

“We'll begin constructing the building, the terminal, tank farm, the barge loading facility and the fuel truck rack all within the next four to six weeks,” he said. They expect to start production in mid-February and will employ 25-30 people.

“We're pleased with where we are right now,” said Solon Scott, owner of Scott Petroleum. “We are anxious to go ahead and get the project completed so that we can begin our sales efforts.”






It's never been more economically feasible to get into the biodiesel business.

“When the government came out and started offering a subsidy, it put it in a profitable position,” Scott said. “We just feel like it's an opportunity for us to be in the alternative energy arena.”

Biodiesel is a domestic, renewable fuel for diesel engines that is derived from natural oils, such as soybean, fish and poultry oils. It is blended with petroleum diesel to create a fuel that is cleaner than traditional diesels. Proponents of biodiesel also point to it as a solution to U.S. dependency on foreign oil.

The biodiesel available at the pump for consumers is a blend of refined vegetable oil and petroleum diesel. The blend most often found at retail outlets is 20 percent biodiesel, referred to as B20, according to information from the Mississippi State Extension Service. Tractor manufacturer John Deere already approves B5 biodiesel in its engines and last year began shipping tractors and combines with B2 biodiesel.

Another Mississippi company has purchased 4.5 acres of land in the same general area as the Scott Petroleum property.

Earth Biofuels LLC in Jackson will convert a bulk storage facility that borders Lake Ferguson into a biodiesel plant.

The Earth Biofuels plant will be the company's fourth and its second in Mississippi. The other plant is in Meridian.

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Posted by Vince to Biodiesel News at 9/13/2006 06:08:00 AM

[Biodiesel News] Memphis biodiesel plant begins production

Memphis biodiesel plant begins production
Biodiesel Magazine - Grand Forks,ND,USA
by Dave Nilles. An idle cotton oil mill in a downtown redevelopment zone in Memphis, Tenn., is now home to a biodiesel producer. ...

An idle cotton oil mill in a downtown redevelopment zone in Memphis, Tenn., is now home to a biodiesel producer. Milagro Biofuels of Memphis LLC produced its first biodiesel Sept. 11, according to President Diane Mulloy.

The 5 MMgy was expected to start-up in late August, but minor start-up glitches pushed production to this week. Mulloy said test batches have been conducted and samples sent to the U.S. EPA for certification. “I’m hoping that process is quick,” she told BiodieselMagazine.com. “We hope to sell biodiesel by the end of September.”

Greenline Industries began building the modular biodiesel facility off-site in March. The building, which required substantial interior modifications, is listed on the National Register of Historic Places, Mulloy said. New concrete floors were poured and minor exterior changes were made to allow for truck entry. Mulloy said the plant is completely enclosed, meaning inbound and outbound trucks will enter the facility for loading and unloading.

Milagro Biofuels will use 100 percent refined virgin soy oil for feedstock. The initial barge load was floated on the Mississippi River from Owensboro Grain in Owensboro, Ken. Owensboro is in the process of constructing a 50 MMgy biodiesel facility, which is expected to begin producing in mid-2007. Mulloy said other sources will be tapped for feedstock.

While Mulloy said she has received calls from around the country looking to obtain biodiesel, she expects most of the product to be sold and consumed locally. The company is also planning additional facilities, which would likely be located in southern Kentucky or mid-Tennessee.

Milagro will be holding an Oct. 6 grand opening. Mulloy expects a strong contingent of local and state officials. Democratic U.S. Congressman Harold Ford, who is running for U.S. Senate this fall, filmed a portion of a campaign commercial at the facility, according to Mulloy.

“It has really been an exciting process,” Mulloy said. “It has been fun to be part of a new business and emerging industry. The enthusiasm of our employees and partners has been infectious.”

A second biodiesel facility is also being constructed in Memphis. Memphis Biofuels LLC expects to begin production at a 36 MMgy plant in October. The project is permitted for 50 MMgy.

Milagro Biofuels of Memphis LLC
Location: Memphis, Tennessee
Design/builder: Greenline Industries
Capacity: 5 MMgy
Feedstock: soy oil
Biodiesel marketer: Milagro Biofuels
Start of construction: March 2006
Start-up date: September 2006

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Posted by Vince to Biodiesel News at 9/13/2006 06:01:00 AM