Friday, September 22, 2006

[Biodiesel News] Fuel gets more environmentally correct

Fuel gets more environmentally correct

The Register-Guard - Eugene,Oregon,USA

... SeQuential Biofuels opened a couple of weeks ago, offering not just biodiesel blends but also ethanol. ... They've got biodiesel stations all over the state. ...

 

Being socially responsible isn't always easy. Nobody knows that better than Team Best of ...

 

Sure, we try to do our part: recycling, buying organic (when the price doesn't give us a heart attack), letting the lawn go brown in August, keeping the winter thermostat under control.

 

But, hey, we're not perfect, and a couple of team members must confess upfront. We drive gas guzzlers.

 

We're sorry, OK? Peak oil notwithstanding, some of us really do need our trucks, and you will only pry the steering wheel out of our cold, dead fingers.

 

Fortunately, we now can feel a smidge less guilty, thanks to the arrival of a new gas station in Eugene.

 

SeQuential Biofuels opened a couple of weeks ago, offering not just biodiesel blends but also ethanol. For the first time, we can spend our fueling-up cash on something that is at least partially homegrown and renewable.

 

SeQuential is a Eugene-based company that opened a biodiesel production facility in Salem last year, making fuel from used cooking oil supplied by Kettle, the snack food maker. They've got biodiesel stations all over the state.

 

advertisement The new local station also includes blends with ethanol, a fuel derived from corn or sugar cane. Whether you drive a diesel vehicle, one of those fancy flex-fuel rigs or an ordinary gas-powered car, they've got a blend that will work.

 

When we showed up for the first time, their polite - and informed - pump jockeys steered us in the right direction.

 

We know ethanol has its naysayers who complain that the energy required to produce it exceeds the energy of the fuel created. And we were as dismayed as anybody to read the most recent Consumer Reports magazine, which found that E85 - the 15 percent gas, 85 percent ethanol blend - worsens a car's overall fuel economy.

 

But we figure these alternative fuels are in their infancy. Producers are still working out the kinks, and we like supporting their efforts.

 

Besides, SeQuential isn't just about the fuel. It also has a convenience store stocked with organic soda pop and chocolate, chlorine-free diapers, nonpetroleum lip balm, plus other last-minute essentials. It also has a small but decent variety of beer and wine.

 

Better still, the store houses Sweet Shots, a satellite of the city's most decadent bakery: Sweet Life Patisserie.

 

Like the outside fuel pumps, Sweet Shots is big on choices. It's got a full range of the butter-and-sugar confections we know and love, but for the allergy-challenged it offers egg-free, dairy-free and wheat-free options, too.

 

When we stopped by the other day, we had berry pie and coffee and inhaled a delectable caramel chocolate while we sat at the tiny coffee bar and - we are not ashamed to confess - enjoyed the ambience.

 

Our only bone to pick with the place is that it's not on our beaten path - located off of Interstate 5 just north of the 30th Avenue exit. We suggest you give it a try before the Lane Community College students discover it and the friendly staff no longer have time to chat about the green roof, or the solar panels on the overhead canopies, or the surrounding bioswale, or the many other elements that make this compact building a fine addition to Eugene's growing collection of environmentally friendly locales.

 

Best of ... has ideas to burn. Fuel up with us and go at www.registerguard.com/bestof.

 

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BEST LOW-GUILT GAS STATION

SeQuential Biofuels

Where: 86714 McVay Highway, accessible from the 30th Avenue exit from Interstate 5

Fuel: Biodiesel and ethanol in a range of blends

Hours: From 6 a.m. to 9 p.m. seven days a week

Sweet Shots: The espresso stand and bakery inside the convenience market is open from 7 a.m. to 7 p.m.

 

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Posted by Vince to Biodiesel News at 9/22/2006 12:00:00 PM

[Biodiesel News] Bunge, biodiesel group building largest biodiesel plant in ...

Bunge, biodiesel group building largest biodiesel plant in ...

Agriculture Online - USA

A Memphis, Tenn.-based investment group and a leading agribusiness firm are teaming up to build Illinois' largest biodiesel plant in Danville. ...

 

A Memphis, Tenn.-based investment group and a leading agribusiness firm are teaming up to build Illinois' largest biodiesel plant in Danville.

 

Bunge North America, the North American operating arm of Bunge Limited and Biodiesel Investment Group LLC announced the creation of Biofuels Company of America LLC (BCA), a joint venture that will build the 45 million gallon-per-year biodiesel plant adjacent to Bunge's soybean processing facility in Danville. Work on the site is already under way with plans for the plant to be operational in the first quarter of 2008.

 

"Bunge will be able to provide 100% of the feedstock for the new plant as well provide risk management and other services to the new facility," said Larry Clarke, senior vice president and general manager, Bunge Oilseed Processing.

 

Producing 45-million gallons of biodiesel will use the equivalent of 30 million bushels of soybeans. When complete, the plant will employ up to 15 full-time employees.

 

"The availability of feedstock, the access to transportation and the State of Illinois' commitment to alternative fuels through the Renewable Fuels Grant program, all made the Danville site attractive to us," said Mark Burke, Biodiesel Investment Group president.

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Posted by Vince to Biodiesel News at 9/22/2006 11:58:00 AM

[Biodiesel News] Blagojevich visits Stepan

Blagojevich visits Stepan

Joliet Herald News - Joliet,IL,USA

Rod Blagojevich on Thursday toured Stepan Co.'s biodiesel facility at its Millsdale plant and praised the company for its plans to double production. ...

 

ELWOOD — Gov. Rod Blagojevich on Thursday toured Stepan Co.'s biodiesel facility at its Millsdale plant and praised the company for its plans to double production.

 

The expansion project at the Millsdale plant outside Elwood is being aided by a $3 million state grant.

 

"This company in Elwood, Ill., can lead the country off of its dependence on foreign oil, off of its dependence on oil, and into the future," Blagojevich said.

 

Blagojevich contends that new production encouraged by the state's renewable fuels incentive programs can cut the amount of foreign oil used for Illinois gasoline in half by 2017.

 

The Millsdale plant has the largest biodiesel production plant in Illinois, producing 19 million gallons a year. The expansion would raise production to 49 million gallons.

 

Biodiesel is derived from soybeans and is used for truck and bus fleets.

 

Expansion of the biodiesel facility at Millsdale is expected to cost $24 million, could start in January and would take about a year to complete.

 

After being lauded for the company's investment at the local plant, Stepan President and CEO F. Quinn Stepan noted that the company has spent $190 million worldwide on expansion projects in the past five years, and, "More than $90 million has been spent right here at this site. We are committed to this state. We are committed to this site."

 

Millsdale is Stepan Co.'s largest facility among 14 chemical production plants worldwide. The plant also makes chemicals for detergents and plastics.

 

Stepan employs 370 workers at Millsdale, including 23 in biodiesel production.

 

The expansion will add six to eight workers at the biodiesel facility. About 160 building trades workers are expected to be involved in construction.

 

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Posted by Vince to Biodiesel News at 9/22/2006 11:54:00 AM

[Biodiesel News] Business ticker

Business ticker

York Dispatch - York,PA,USA

... A proposed biodiesel production plant ... Mary Jo White, R-Venango. Improving the municipal system will allow the biodiesel fuel plant to move ahead, she said. ...

 

Residents of Tyrone Township, Adams County, expressed concern over plans by a natural-gas pipeline company to install a compressor station. Duke Energy Corp. officials who spoke with residents at a local fire company Wednesday night were met with complaints and safety concerns.

 

Compressor stations are needed every 50 to 70 miles to boost pressure and deliver natural gas from Texas to numerous sites throughout the Northeast, the company officials said. They said the pipelines are losing pressure because of friction and because there are more businesses tapping into the pipes.

 

Company officials tried to assure residents the company could handle any emergencies and would help train local firefighters.

 

Duke Energy operates more than 100 natural-gas compressors in the United States, including 16 in Pennsylvania.

 

--- A proposed biodiesel production plant at a former Pennzoil refinery got a boost when a state lawmaker said $2.3 million has been earmarked for infrastructure for the municipality.

 

The money -- a $1.78 million grant and a $594,000 loan -- will be used to improve and expand Rouseville borough's wastewater system, said state Sen. Mary Jo White, R-Venango.

 

Improving the municipal system will allow the biodiesel fuel plant to move ahead, she said.

 

The money will be used to build a system that will disinfect 240,000 gallons of wastewater daily. It will serve 244 homes and businesses, as well as the biodiesel plant.

 

New Castle-based Enviro-Bi odiesel plans to operate the plant that will convert soy to fuel. Officials expect construction to begin before year's end and production to begin in the summer of 2007.

 

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Posted by Vince to Biodiesel News at 9/22/2006 11:50:00 AM

[Biodiesel News] Biofutures maiden H1 pretax loss 58,253 stg

Biofutures maiden H1 pretax loss 58,253 stg

Life Style Extra - UK

The company, which was admitted to AIM in May, is in a conditional agreement to buy Zurex Corp, which owns the rights to build a biodiesel plant in Malaysia. ...

 

LONDON (AFX) - Biofutures International PLC, a company established to invest in or buy assets, businesses or companies in the renewable fuels industry, posted a pretax loss of 58,253 stg in its maiden interim results for the period from February 17 to June 30.

 

The company, which was admitted to AIM in May, is in a conditional agreement to buy Zurex Corp, which owns the rights to build a biodiesel plant in Malaysia. Biofutures said the consideration for the buy will be 66.67 mln shares.

 

It said it is looking to raise funds to construct the plant from a share placing with the balance of the monies sought from the debt market.

 

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Posted by Vince to Biodiesel News at 9/22/2006 06:01:00 AM

[Biodiesel News] Linfox trialling biofuel for Axiom

Linfox trialling biofuel for Axiom

The Australian - Sydney,Australia

RENEWABLE fuel company Axiom Energy has opened its $36 million initial public offering (IPO) and entered into a trial arrangement of its biodiesel fuels with ...

 

 

RENEWABLE fuel company Axiom Energy has opened its $36 million initial public offering (IPO) and entered into a trial arrangement of its biodiesel fuels with trucking company Linfox.

 

Axiom is offering about 51.5 million shares at 70 cents each in an attempt to raise the $36 million.

 

Axiom intends to use the money to fund its first project based at Toll Geelong Port, for which it has secured a 20 year lease with logistics firm Toll Holdings Ltd .

 

The plant could make up to 150 million litres of biodiesel a year, which could be made from renewable plant oils and animal fats, helping tap into the 15 billion litre-a-year diesel market, Axiom said.

 

The company said it already had a strong pre-registration response from the majority of previous applicants for its withdrawn $37.6 million IPO in 2005, which had been oversubscribed.

 

A spokesperson for the Fox family, which owns Linfox, said they believed the logistics industry needed to play a more active role in tackling carbon emissions, and that biodiesel would play an integral part of this.

 

Axiom Energy managing director Danny Goldman said he was "delighted" at the opportunities that a potential relationship with Linfox might bring.

 

"Linfox has shown great leadership, being the first major Australian trucking company to publicly announced the importance of biodiesel to its fuel strategy," Mr Goldman said.

 

He said Axiom's business model was framed to target selling its fuel into the mainstream 15 billion litres per annual diesel market.

 

"Importantly the sustainable and environmental characteristics of biodiesel will justify its growing popularity by virtue of the fact that its non-toxic and readily biodegradable compounds are not only well suited to environmentally sensitive areas, but also allow for significant benefits to the environment and public health."

 

The offer closes on October 20.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:59:00 AM

[Biodiesel News] Axiom opens $36m IPO, scores Linfox deal

Axiom opens $36m IPO, scores Linfox deal

The Age - Melbourne,Victoria,Australia

... fuel company Axiom Energy Ltd has opened a $36 million initial public offering (IPO) and scored an all-important trial arrangement of its biodiesel fuels with ...

 

Renewable fuel company Axiom Energy Ltd has opened a $36 million initial public offering (IPO) and scored an all-important trial arrangement of its biodiesel fuels with trucking giant Linfox.

 

Axiom makes biodiesel fuels by blending renewable plant extracts and animal fats with ordinary petrodiesel fuel.

 

The Melbourne based company intends to use the $36 million to fund its first production plant in Geelong, for which it has secured a 20-year lease with logistics firm Toll Holdings Ltd.

 

The plant can make up to 150 million litres of biodiesel a year, which Axiom will use to tap the 15 billion litre a year Australian diesel market.

 

Axiom technical director David Vinson said the company's biodiesel fuel is cheaper than ordinary diesel.

 

"We have forecast a discount to the terminal gate price of diesel fuel of 15 cents per litre," Mr Vinson said.

 

"So really we're giving customers two benefits, one of them savings in terms of fuel costs and the other an opportunity to cut greenhouse gas emissions."

 

Mr Vinson said Axiom's product was just as efficient as ordinary diesel and reduced particulate, or environmentally hostile "black smoke", emissions by 50 per cent.

 

He said the fuel was cheaper because producers whose biodiesel blend meets government specifications can access an exemption from the 38.143 cents per litre excise on diesel fuel.

 

The excise exemption will last until 2011 then progressively be reduced until 2015 when the excise is expected to drop to 19.1 cents per litre.

 

Mr Vinson said the biodiesel fuel market was also primed for expansion into the commercial realm, with passenger cars that run on diesel already appearing on Australian roads.

 

Holden for example has already released a diesel powered Astra - a small car - and more manufacturers are set to follow suit, Mr Vinson said.

 

Linfox, meanwhile, said the logistics industry needed to play a more active role in tackling carbon emissions.

 

"Linfox has shown great leadership, being the first major Australian trucking company to publicly announced the importance of biodiesel to its fuel strategy," Axiom chairman Danny Goldman said.

 

Axiom is offering about 51.5 million shares at 70 cents each in an attempt to raise the $36 million.

 

The company said it already had a strong pre-registration response to the IPO from the majority of previous applicants for its withdrawn $37.6 million IPO in 2005, which had been oversubscribed.

 

Axiom decided to pull that IPO after federal treasury said it was considering introducing an excise on diesel produced from waste plastics - a product Axiom intended to make in a secondary operation, since scrapped.

 

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Posted by Vince to Biodiesel News at 9/22/2006 06:00:00 AM

[Biodiesel News] Bunge Creates Biodiesel Joint Venture

Bunge Creates Biodiesel Joint Venture

Houston Chronicle - United States

... processor and fertilizer manufacturer, on Thursday said it has partnered with a private equity firm to create a joint venture biodiesel company, Biofuels ...

 

NEW YORK — Bermuda-based Bunge Ltd., a soybean processor and fertilizer manufacturer, on Thursday said it has partnered with a private equity firm to create a joint venture biodiesel company, Biofuels Company of America LLC.

 

Financial terms of the venture with Memphis, Tenn.-based Biodiesel Investment Group LLC were not disclosed.

 

Bunge said the venture plans to build a biodiesel plant with capacity to produce 45 million gallons per year of the alternative fuel, which can be made from soybean and other vegetable oils. Biodiesel is typically blended with traditional diesel to create a cleaner burning fuel.

 

The plant will be located next to Bunge's soybean processing facility in Danville, Ill., the company said. Construction is under way, and operations are expected to start up in the first quarter of 2008.

 

"Bunge will be able to provide 100 percent of the feedstock for the new plant as well provide risk management and other services to the new facility," said Larry Clarke, general manager of Bunge Oilseed Processing.

 

Producing 45 million gallons of biodiesel will use the equivalent of 30 million bushels of soybeans.

 

Shares of Bunge fell 82 cents to $57.83 in afternoon trading on the New York Stock Exchange.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:43:00 AM

[Biodiesel News] Caltex backs petrol companies on ethanol

Caltex backs petrol companies on ethanol

Ninemsn - Sydney,New South Wales,Australia

... "What we say is that the consumer needs to become comfortable with ethanol and biodiesel," he told journalists after addressing an investment conference in New ...

 

Australia's largest oil refiner Caltex says petrol companies are getting bashed unfairly over the slow shift towards ethanol-blended fuels.

 

Caltex chief financial officer Simon Hepworth said the petrol companies were doing what they could but consumers had yet to fully embrace alternative fuels.

 

"What we say is that the consumer needs to become comfortable with ethanol and biodiesel," he told journalists after addressing an investment conference in New York.

 

Mr Hepworth said market research conducted by Caltex showed that up to half of respondents were uncomfortable with trying ethanol in their cars because of the potential impact on seals in the engines of older cars.

 

"It's customer sentiment, they need to be convinced of the fact their car isn't going to be damaged in any way," he said.

 

Mr Hepworth said the farm and sugar lobbies were looking for more than was possible, saying there wouldn't be enough ethanol in Australia if all petrol was mandated to be the 10 per cent ethanol blend (E10).

 

"So it is a question of everybody sitting down and understanding the facts as to what is possible over the next few years," he said.

 

"The oil companies do get bashed, unfairly so.

 

"We are moving very strongly and vigorously towards meeting the government biofuels targets ... we will do so."

 

Earlier this month, the Service Station Association said Shell and Caltex were ignoring the push towards ethanol-blended fuels, with independent service stations heading ethanol promotion.

 

Mr Hepworth said Caltex's network of service stations carrying ethanol-blended fuel would be expanded to more than 100 by the end of this year, from more than 40 currently.

 

"We are on track to meet the government targets that the industry has agreed with the government for the blending of biofuel by 2010."

 

Earlier, addressing the Merrill Lynch Australia investment conference, Mr Hepworth said while there was a lot of debate about ethanol and biodiesel, Caltex believed it would be a relatively small part of the market.

 

Mr Hepworth also predicted that over the next 10 to 15 years demand would shift from gasoline to diesel, driven by changes in fuel specifications and car models.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:45:00 AM

[Biodiesel News] Texas BioDiesel to build US$143mn biodiesel plant - Panama

Texas BioDiesel to build US$143mn biodiesel plant - Panama

BNamericas - Santiago,Chile

Houston-based Texas BioDiesel expects to begin initial works in the next two months on a 100 million gallon a year (379 million liters a year) biodiesel plant ...

 

Houston-based Texas BioDiesel expects to begin initial works in the next two months on a 100 million gallon a year (379 million liters a year) biodiesel plant in Panama, company president and CEO John Autrey told BNamericas.

 

The US$143mn plant will use palm, mustard seed and other vegetable products supplied by local farming cooperatives such as Cooperativa Empresa Productora de Palma de Aceite de Chiriquí.

 

Initial works entail building an extraction facility, while the plant itself is due to begin operating mid-2007, said Autrey, adding the plant will most likely be built at Puerto Armuelles in Chiriquí province.

 

Texas BioDiesel will transport oil from the extraction facility to its Houston biodiesel plant until the Panama plant starts operations, he said.

 

Private banks and the US Export-Import Bank (Ex-Im) are helping finance the project.

 

This project will be the company's first in Latin America, although talks are underway in other countries such as Argentina, Bolivia and Brazil to install plants, Autrey said.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:30:00 AM

[Biodiesel News] Biodiesel profits farm economies

Biodiesel profits farm economies

Mississippi State University - MS,USA

MISSISSIPPI STATE -- Increased use of biodiesel may not end the national dependence on foreign oil, but the short-term benefits to Mississippi’s farm economy ...

 

MISSISSIPPI STATE -- Increased use of biodiesel may not end the national dependence on foreign oil, but the short-term benefits to Mississippi’s farm economy should give soybean growers reasons for hope.

 

Gregg Ibendahl, agricultural economist with Mississippi State University’s Extension Service, said increased use of biodiesel should bolster soybean prices and provide farmers with a beneficial alternative to petroleum.

 

Federal guideline changes that will lower sulfur content in diesel are another factor that makes biodiesel more appealing. Biodiesel, which is made from vegetable oils or from animal fats, provides a lubricating ability that diesel lacks without sulfur.

 

In Mississippi, soybean oil is the primary source for biodiesel, and cottonseed also is used. Although biodiesel does not contain petroleum, it can be blended with petroleum diesel for use in diesel engines with little or no modification. The Mississippi Soybean Promotion Board funds MSU research efforts to make the soybean oil attractive for use in the production of biodiesel.

 

Ibendahl said there are not enough soybeans grown in the United States to eliminate the need for foreign oil, but biodiesel’s value as an alternative is undeniable.

 

“If we used every bushel of soybeans currently grown in the United States, we could not replace one-fifth of the diesel fuel used in the country,” Ibendahl said. “However, some research has indicated that every 100 million gallons of biodiesel use could raise soybean prices an additional 10 cents. If this is true, then we will likely see more acres allocated to soybean production.”

 

Marc Curtis, a soybean grower from Leland and a member of the United Soybean Board, said biodiesel is only limited by the supply of raw material.

 

“It makes good sense to use biodiesel in my tractors because that way I’m using my own product,” Curtis said. “It’s also a better quality product. It will extend the life of the machinery.”

 

Curtis said in the past, soy meal was the primary market for soybeans. Now, oil is the primary market and meal is secondary.

 

“Anytime you can find another market for your product, it will help prices,” Curtis said.

 

Ibendahl said with current fuel price levels, the biodiesel market should continue to grow. However as more and more soybeans are used as an alternative fuel, biodiesel probably will become less competitive with regular diesel fuel.

 

The economist said a federal tax credit takes $1 off the cost of producing biodiesel from first-time used vegetable oils and animal fats. The blender of the biodiesel then can pass on that savings to consumers. Ibendahl said some supporters of the $1 credit believe the tax incentives could add a billion dollars to the national farm economy over five years.

 

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Posted by Vince to Biodiesel News at 9/22/2006 05:38:00 AM

Thursday, September 21, 2006

[Biodiesel News] GREENSHIFT - Capital Alliance Income Trust Appoints James Grainer to Its Board ...

Capital Alliance Income Trust Appoints James Grainer to Its Board ...

Business Wire (press release) - San Francisco,CA,USA

Mr. Grainer, 52, the President and Chief Financial officer of GreenShift Corporation, a publicly listed company focused on the alternative energy and ...

 

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 21, 2006--Capital Alliance Income Trust Ltd. ("CAIT") (AMEX:CAA), a residential mortgage REIT, today announced the appointment of James L. Grainer to its Board of Directors, reinstating the size of the board to six members and satisfying the American Stock Exchange's independent director representation requirements.

 

Mr. Grainer, 52, the President and Chief Financial officer of GreenShift Corporation, a publicly listed company focused on the alternative energy and environmental sectors, formerly was a managing director in investment banking with Zanett Securities and Prudential Securities. Before working in investment banking, Mr. Grainer worked in Deloite-Touche's New York office providing tax and business advisory services. A Certified Public Accountant, his appointment includes membership on CAIT's Audit Committee, where he will also serve as a financial expert.

 

Mr. Grainer's appointment fills the vacancy created by the June 21, 2006 resignation of Donald Looper.

 

About Capital Alliance Income Trust

 

CAIT is a specialty residential lender, which invests in high yielding, non-conforming residential mortgage loans on one-to-four unit residential properties located primarily in California. Only residential loans with a combined loan-to-value of 75% or less are originated for CAIT's mortgage investment portfolio.

 

Forward Looking Statements: This document contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) that inherently involve risks and uncertainties. CAIT's actual results, operations and liquidity may differ materially from those anticipated in these forward-looking statements because of changes in the level and composition of CAIT's investments and unseen factors. As discussed in CAIT's filings with the Securities and Exchange Commission, these factors may include, but are not limited to, changes in general economic conditions, the availability of suitable investments, fluctuations in and market expectations of fluctuations in interest rates and levels of mortgage payments, deterioration in credit quality and ratings, the effectiveness of risk management strategies, the impact of leverage, the liquidity of secondary markets and credit markets, increases in costs and other general competitive factors.

 

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Posted by Vince to Biodiesel News at 9/21/2006 01:03:00 PM

[Biodiesel News] THE FUELS OF THE FUTURE Farming the World's Energy

THE FUELS OF THE FUTURE Farming the World's Energy

Spiegel Online - national,Germany

... Sometimes biodiesel -- as the product is officially known -- is mixed into conventional fuel; sometimes it's distributed in a pure form. ...

 

Agriculture offers the first serious alternatives to fossil fuels: Diesel, natural gas, and petroleum could give way in the future to "biomass" energy. As development continues apace, so too do concerns about the farmed fuels' effectiveness.

 

Six years ago, Germany's Volkswagen opened Autostadt, or "Motor City," in the western city of Wolfsburg. It's the most impressive park the German automobile industry has ever created to celebrate its product.

 

The temple of car worship offers its visitors cinemas, museums and educational installations. But the most interesting exhibition piece is probably also the most significant for the automobile's future. It's a transparent plastic case. Inside the case is a vegetable garden.

 

 

Photo Gallery: The Fuel of the Future

Click on a picture to launch the image gallery (6 Photos)

Visitors can use a remote-controlled robot arm to sow watercress -- and pick up the results eight weeks later: a drop of diesel oil that the company's scientists produce from what other people use to garnish their salad.

 

A tractor can drive two meters (6.6 feet) with one such drop, VW says. It's not much for an agricultural machine -- but it represents a glimmer of hope for a highly mobile society that is eyeing the world's fuel gauge with growing concern.

 

Engines can handle vegetable oil just as well as gasoline, as the pioneers of machine construction already knew. "It's turned out that diesel engines can run on peanut oil without any difficulty," the ingenious inventor Rudolf Diesel explained in 1912. But Diesel's contemporaries paid little attention to such questions. It was hard for them to imagine that cars would ever be associated with anything like issues of disappearing resources.

 

 

DER SPIEGEL

Comparing biofuels

Roughly 100 years later, though, there are half as many cars in the world as there were human beings alive back then. Some 800 million motor vehicles make up a vast army of gas-guzzlers. Every day motor vehicles consume about 10 million tons of oil -- more than half of what is produced worldwide -- on a daily basis. Finding a way to power these vehicles on a renewable fuel will be one of the Herculean tasks of the new millennium. Peanut oil simply won't be enough.

 

Rapeseed and sunflower stalks

 

The German rapeseed oil industry has undertaken the most sustained effort yet to replace fossil fuels with a botanical product. And over the last decade, what started as an association of independent-minded small businessmen has grown into an economic sector to be taken seriously. In 2005, 1.7 million tons of rapeseed methyl ester, derived from the seeds of the yellow-flowered plant, were used to feed the engines of German cars.

 

Sometimes biodiesel -- as the product is officially known -- is mixed into conventional fuel; sometimes it's distributed in a pure form. Available at some 2,000 gas stations, the fuel is cheaper than regular gasoline.

 

Comparable amounts of biodiesel haven't been produced anywhere else in the world. In this sense, the German rapeseed experiment is also indicative of the limits to ecologically clean economic growth. About a million hectares -- roughly a tenth of Germany's agricultural terrain -- are now used to plant rapeseed. Experts believe expansion by a further 1.5 million hectares is possible.

 

In other words, in the best possible scenario, German soil could yield about 2 million tons of biodiesel every year. Compare that to the 130 million tons of petroleum the German population consumes every year, and it becomes clear that rapeseed will never be able to liberate an industrial society from its dependence on petroleum.

 

Scarcity isn't the only problem with biodiesel. Fertilizing the fields and processing the harvest is highly energy-intensive, thus eliminating much of the potential for savings.

 

Moreover, biodiesel's suitability for use with modern engines is limited at best. Its chemical composition complicates efforts to achieve clean combustion and filter emissions. In fact, modern diesel engines with fine-tuned fuel injectors and particle filters are generally not approved for use with rapeseed methyl ester.

 

 

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Researchers at the Shell Corporation consider rapeseed diesel a "first generation" fuel -- one in which only the seeds or buds of the plant are used. "First of all, the result is not a top-quality fuel," says Wolfgang Warnecke, the man in charge of global fuel development at Shell. "Second, its production competes directly with that of foodstuffs. We're not interested in either of those two things."

 

Shell is therefore betting mainly on the development of second-generation fuels. These are produced from those parts of plants that were considered agricultural waste until today, such as straw from grain crops or sunflower stalks. "These production processes don't threaten to involve us in any ethical dilemmas," Warnecke says, "and the carbon dioxide balance is virtually neutral."

 

Driving on alcohol?

 

One of the first biofuels whose production process is on the verge of proceeding from the first to the second generation is a substance that human beings have used as an intoxicant for millennia -- alcohol.

 

Around 1860, Nikolaus August Otto created a prototype of an engine fueled with different types of spirits available for consumer purchase. One was ethyl alcohol, then widely used as lamp fuel.

 

American automobile pioneers Henry Ford and Charles Kettering (then General Motor's chief researcher) already saw an enormous potential in alcoholic fuel during the 1930s and wanted to power their cars with the fermented products of American farms.

 

 

Francis Garvan, president of the Chemical Foundation at the time, wrote a fierce appeal for alcoholic fuel instead of oil from abroad: "They say we have foreign oil," Garvan explained during a conference in Ford's hometown of Dearborn near Detroit in 1936. "It is in Venezuela ... It is out in the East, in Persia and it is in Russia. Do you think that is much defense for your children?"

 

But the alcohol lobby failed to prevail. New oil fields were discovered too quickly -- especially in Arab lands. Fossil fuels turned out to be the cheaper option -- and Western industrial nations marched steadfastly into total dependence on imports.

 

Only one country followed a path of its own and opted for alcohol: Brazil. Today the South American country covers about 40 percent of its fuel needs with bioethanol, a form of alcohol.

 

The tropical climate in Brazil allows for growing vast amounts of sugar cane -- a raw material used in the production of ethanol. Yet what may sound like a blessing isn't necessarily one for the local environment -- millions of hectares of rainforest have been cleared for car fuel plantations.

 

 

Alcohol fuel from wood.

In Europe and North America, ethanol is obtained mainly from cereals such as wheat, rye or corn. In Germany, companies such as Südzucker have started running alcohol refineries. All of these companies are still working with first-generation production methods. Their output would never be sufficient to adequately replace gasoline. Researchers have only been working on efficient methods for converting straw and wood to ethanol for a few years.

 

Factories where these methods can be put into practice are still in the research stage and are being developed partly with the support of the large oil corporations. Shell has invested in the Canadian ethanol producer Iogen, one of the pioneers of this young business sector.

 

Politicians and engineers from all industrial nations are now equally intoxicated by the idea of powering cars with alcohol that is mainly produced from waste products. In fact, Sweden even sees bioethanol as the key to its efforts to completely liberate itself from petroleum dependence by 2020.

 

The US government also considers bioethanol to be one of the fuels of the future, one that will allow for the definitive transition to energy autonomy. President George W. Bush recently announced: "We want people to drive with fuel that grows in America."

 

One of the great advantages of alcohol is its similarity to gasoline. Conventional fuel can contain up to 5 percent alcohol without creating a need to modify engines.

 

In Europe, mixtures of alcohol and conventional fuel are available with an alcohol content of up to 85 percent. Ford and the Swedish car manufacturers Volvo and Saab are already offering vehicles whose engines run on the new fuel, known as E85. The changes made to the engine control system are minimal; the price increase is no higher than a few hundred euros.

 

In South America cars are already running on pure ethanol. However, the greater the alcohol content in the tank, the more the engine's fuel consumption rises -- because alcohol contains only about two-thirds as much energy as gasoline.

 

So far, German ethanol producers remain weak contenders in the global fuel business. While Brazil is already producing 10 million tons of bioethanol per year, the three production plants in Germany produce only about half a million tons. "The great challenge will be producing a genuinely viable substitute," says Shell researcher Wolfgang Lüke.

 

But what is the true potential of the alcoholic fuel that so many are pinning their hopes on? According to calculations by the Agency of Renewable Resources (FNR), the German Ministry of Agriculture's unit specializing in biofuel, 2,500 liters of ethanol can be obtained from the grain harvest of one hectare (2.5 acres) of German agricultural terrain. Because one liter of the fuel replaces 0.66 liters of conventional gasoline, production on that one hectare represents real substitution for only 1,650 liters.

 

Oil is solar energy, too

 

Another new technology, which is still being developed, is far more promising. It's called "SunDiesel" and is currently being tested in Freiberg in the German state of Saxony.

 

There, the visionary Bodo Wolf -- who was trained as a coal miner and later became an engineer -- has developed a method that allows for high-speed replication of the process by which fossil fuels are formed from wood and other organic substances.

 

The key insight that allowed him to develop his method in East Germany before the fall of the Berlin Wall is contained in a simple truth: "Oil, gas and coal -- they're all solar energy."

 

All the fossil fuels central to the industrial age are the product of prehistoric vegetable and animal life that disappeared under the earth before it could rot. Forests became coal; dry lagoons full of algae and water animals became oil and gas fields. Exposed to enormous pressure and high temperatures, the former organisms were transformed into the solid, fluid and gaseous energy sources of today.

 

 

Wolf has developed a method that replicates this very process and speeds it up dramatically. Wolf's patented "Carbo-V method" accomplishes in a few hours what nature took millennia to achieve: wood, straw and every other form of dehydrated organic matter is converted into a synthetic gas in a system of burners and catalysts. Diesel fuel is then extracted from this gas by means of a Fischer-Tropsch reactor, a piece of equipment already used to liquefy coal and natural gas.

 

The company Wolf founded is called Choren. The first three letters of the name stand for carbon (C), hydrogen (H) and oxygen (O) -- the building blocks of organic life and of every conventional fuel; the last three letters of the name are short for "renewable."

 

The founder of Choren is now retired, but a host of powerful companies has staked a claim to his legacy. Daimler Chrysler and Volkswagen have been Choren's development partners for three years. And Shell invested in the company last year.

 

 

Synthetic fuel, the natural way.

The expectations are high, even though Freiberg's diesel producers are still a long way from going commercial. So far, only a small research plant has been set up. Next year -- much later than originally planned -- a second, larger plant is scheduled to go into operation; it will produce 15,000 tons of SunDiesel every year. Eventually, a major refinery will be built in the town of Lubmin in the eastern German state of Mecklenburg-Western Pomerania to produce an annual output of 200,000 tons.

 

The most dangerous opponent on the path to that goal may well turn out to be the German government. The rising production of biofuel already has cash-strapped fiscal authorities looking for new ways to tax it. German Finance Minister Peter Steinbrück of the Social Democrat Party (SPD) has already announced that biofuels will soon be taxed just like gasoline. The extra costs that would result might mean that only the cheap option of rapeseed oil survives. More promising methods that are still in development may have to be abandoned before they reach the market.

 

Nevertheless, the European automobile industry has tremendous hopes for SunDiesel. Because they consume so little fuel, diesel engines are one of the trump cards of the industry -- despite the blemish of being associated with worse emissions. The problem of soot particles has been partly solved thanks to new particle filtering techniques. What remains is the unusually high level of nitrous oxide emissions, a problem that can only be solved with new investment into technologies like urea-based catalytic converters.

 

The new fuel might offer a solution: SunDiesel is cleaner than conventional diesel. It's non-toxic and free of aromatics. Substituting SunDiesel for regular fuel would lead to a strong reduction in emission levels without requiring any additional processing of the emissions.

 

What is more, synthetic fuels like the one developed by Choren, which are also known as BtL ("biomass to liquid") promise marvellous efficiency -- even if they haven't yet been commercially tested. German government experts with the FNR estimate that an annual output of 4,000 liters (1,057 gallons) per hectare could be achieved with SunDiesel -- three times as much as with rapeseed oil and about one-and-a-half times as much as with ethanol.

 

But still more can be gotten out of biomass. As a raw material, wood is a first-class energy supplier -- especially when it isn't used to power cars, but rather to produce electricity and heat.

 

Thomas Nussbauer, an expert on resources at the Swiss Federal Institute of Technology in Zürich, flatly declares tree-based biofuel unsuitable for use in road transportation. In an article for the Holz-Zentralblatt journal for the timber and forestry industry, he makes a plea for putting the remains of trees into furnaces rather than into fuel tanks. According to Nussbauer, wood provides heat as efficiently as fossil fuels, but yields only three-fourths of their output when used as engine fuel.

 

Michael Deutmeyer, who is responsible for biomass management at Choren, doesn't doubt the validity of Nussbauer's calculation, but argues that it misses the main point. Deutmeyer argues that there are already many alternatives to fossil fuel energy sources in the areas of heat and electricity production: "Geothermal and solar energy production, improved insulation, as well as wind and water power represent a broad variety of techniques that can already be put to use," he says. "But when it comes to transportation, there is still no viable alternative to fossil fuel energy sources." For better or for worse, the car still depends on petroleum. Attempts to power cars with electricity have effectively failed.

 

 

Nor do the current improvements in battery technology for hybrid vehicles promise to make electric car engines suitable for serial production anytime soon. A full gasoline tank, which can power an engine for hundreds of kilometers and can be refilled in a matter of minutes, is still far superior to every alternative developed so far.

 

Natural gas, like from cows

 

Still, the contents of the tank don't need to be liquid. So far, the best alternative to fossil fuels like gasoline and diesel has come in the form of gas, not liquid. It, too, comes from plouwing the fields, and it's already being produced by a technique as simple as it is well-proven.

 

According to calculations by the FNR experts, methanol from fermented biomass has the greatest potential. An annual 3,560 kilograms (7,849 pounds) of methanol can be obtained from one hectare. That would be enough to replace 5,000 liters (1,320 gallons) of gasoline -- the best result yet.

 

On the surface, the technique resembles that used in ethanol production; both are much simpler than the highly complex techniques involved in BtL production. The harvest doesn't have to be dehydrated, but automatically turns into the desired fuel after it's placed into a large vat filled with moist sludge.

 

 

DER SPIEGEL

Bio-methane from maize.

The designers of the technique were inspired by the digestive system of cows and other herbivores -- and by the natural cycle of growth, ingestion, excretion and fertilization. "Biogas" can be developed from a wide variety of plant types and this diversity is also beneficial to the soil. The process also results in its own fertilizer -- the waste products can be used as fertilizer just like dung.

 

So far, the biogas sector has concentrated mainly on electricity production. The gas obtained in the production process drives generators that create energy for the power grid. The average output is far lower than that of windmills or solar panels, in terms of space needed for electricity production. But energy farms have an advantage that the administrators of the electricity grid value highly: They provide energy constantly -- even at night or when the wind isn't blowing.

 

Inside the small power plants, the biomethanol does exactly what it would do inside a car: It powers engines. It's also perfectly suited for fuelling natural-gas-powered cars.

 

Oil Rigs to Plowshares

 

But the industry has been slow to adapt the fuel for transportation. Biogas fuelling stations have opened only in scattered locations -- in Germany and Sweden, for example. The problem is a lack of customers. Even the use of natural gas as engine fuel is hardly advancing. For years, the gas producers and the producers of natural-gas-powered cars -- Opel, Volvo and FIAT are the leading manufacturers in the sector -- have been fighting for acceptance, but with little success. Their projects have been stalled due to the expenses involved in making the necessary changes to existing cars and to transportation infrastructure.

 

A natural gas fuelling station complete with the required pressurized storage unit costs about €200,000 ($254,602) -- about four times as much as a gasoline or diesel station. The car producers in the sector charge surcharges of between €2,000 ($2,545) and €4,000 ($5,090) for cars with engines equipped to handle natural gas, partly because of the additional cost of equipping a car with a pressurized tank.

 

What is more, only a few of the natural-gas-powered cars currently available on the market can drive an acceptable distance before they need to be refuelled. Installing a sufficient number of pressurized gas containers is not yet technically feasible in most cars. The result is that the state-subsidized -- and therefore extremely cheap -- alternative fuel has yet to make the breakthrough into the mainstream. Barely 30,000 natural-gas-powered cars are in use in Germany, where some 650 fuelling stations have been set up -- perhaps somewhat too optimistically.

 

 

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Experts employed by large oil corporations also disagree about the alternative fuel's chances of success. Aral, a subsidiary of BP, has consistently sponsored the expansion of the network of fuelling stations -- particularly due to the tremendous regenerative potential of biogas. The experts at Shell, on the other hand, believe natural gas will never be more than a niche market (for companies with their own fleets of vehicles, for example) and prefer to focus on the conversion of natural gas to liquid fuel.

 

"The greatest mistakes we can make during the search for alternatives are overhasty experiments with infrastructure," Shell researcher Wolfgang Lüke warns. In his view, the only alternative fuels with potential are the ones that can be mixed with conventional fuels. Ethanol and SunDiesel meet this criterion.

 

Lüke predicts that the liquids that will provide energy in the post fossil fuel age will be mixed with conventional fuels in gradually increasing quantities, ending the era of petroleum drop by drop -- a comfortably slow process that has already begun and that consumers hardly notice, aside from the occasional ineffectual political debate.

 

It seems advisable, on the other hand, not to overestimate the speed at which this development is taking place. Sparsely populated countries such as Sweden, which is striving for independence from oil, or the US, an oil-junkie well aware of the problems involved in oil dependence, do dispose of agricultural areas large enough to provide a substantial chunk of their industry with biomass. But in central Europe, producing sufficient amounts of car fuel on an organic basis isn't even remotely feasible.

 

 

According to a prediction by the FNR, some 3.5 million hectares of German agricultural terrain will be available for biomass production in 2020. If one takes an optimistic view of future technological development, this terrain could provide about one-fourth of the vehicle fuel consumed in Germany.

 

Globally, however, "the potential of biomass is enormous," says FNR expert Birger Kerckow. And Konrad Scheffer, a professor at the Institute of Crop Science at the University of Kassel in western Germany, claims that the energy content of the vegetation that is constantly reproducing itself on the Earth's surface exceeds humanity's current energy needs by a factor of between eight and 10. In the scenarios developed by the agricultural industry, plowshares will replace oil drills. Former Agricultural Minister Renate Künast, a member of Germany's Green Party, has already dubbed farmers the "oil sheikhs of tomorrow."

 

Hydrogen, the last frontier

 

The magic gas that some car companies like to evoke as the future elixir of guiltless mobility isn't much talked about today -- hydrogen.

 

Engineers long considered the lightest of the elements in the periodic table the universal energy source of the post fossil fuel age. Produced from water by solar or wind energy, the explosive gas was to be used as an unlimited energy source -- perfectly clean and infinitely reproducible.

 

Car companies invested billions in the development of prototypes. Vans and cars with combustion units that transform hydrogen into energy highly efficiently and without producing significant emissions can still be found in many places.

 

Combustion engines can be powered with hydrogen too. BMW developed a hydrogen-fueled 12-cylinder race car that broke the 300 km/h (186 mph) barrier in an entertaining "green" car race. Mercedes even planned to begin selling cars with hydrogen combustion units by as early as 2004.

 

But no one is talking about the new technology anymore. Daimler Chrysler is now aiming for 2015 -- and will probably have to revise this goal as well. There are plenty of cars that could run on hydrogen -- what's missing is the hydrogen itself.

 

Nowhere in the world can one even find the beginnings of a project for producing the ecologically clean gas on an industrial scale. Even Shell, one of the most open-minded companies in the petroleum business, is tentative when it comes to making statements on hydrogen fuel: "Hydrogen could be the ultimate fuel," reads the caption on one of the images that research and development director Warnecke likes to hand out.

 

According to Warnecke, one of the greatest obstacles is hydrogen's incompatibility with existing fuels: "Ethanol and BtL can just be mixed in with conventional fuel. Hydrogen requires a shift to a completely new infrastructure."

 

And this infrastructure would be many times more complicated and costly than that required by natural-gas-powered cars. Hydrogen needs to either be cooled down to minus 253 degrees Celsius (minus 423 degrees Fahrenheit) or pressurized at 700 bar (three times the level of pressurization for natural gas) before a car can use the fuel to drive a reasonable distance. The existing petroleum-oriented infrastructure is therefore completely inadequate.

 

Apart from economic obstacles, even experts without close ties to the oil industry are also sceptical about the environmental benefits of hydrogen. The ecologically "clean" production of hydrogen requires a tremendous surplus of electricity from ecologically viable sources. Such a surplus exists only in a few locations, such as the geothermal paradise Iceland (where thermal heat can be used to produce energy) or Paraguay (where water power is plentiful).

 

 

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The Wuppertal Institute, a respected German institute that studies the environment, climate and energy, examined the risks and opportunities of a forced transition to a hydrogen economy. The sobering conclusion was that such a transition "won't make ecological sense anytime during the next 30 to 40 years." It would be much more effective to introduce the energy produced from ecologically viable sources directly into the electricity grid, rather than to use it to produce hydrogen.

 

If, however, the clean and large-scale production of hydrogen did begin in the middle of the 21st century, then the gas wouldn't likely end up in the fuel tanks of hydrogen-powered cars.

 

The producers of botanical-based fuels would likely turn out to be eager purchasers of hydrogen. The production of BtL-diesel is suffering from an acute lack of hydrogen. Introducing the highly reactive substance into the Choren production process could double the total output of BtL-diesel plants.

 

The result would be a fully sustainable production chain, one that follows the example of millennia of natural history. Hydrogen is an element that likes to bond with other elements. Only when it is combined with carbon does the basic building block of organic life result -- and with it the energy resources petroleum and natural gas.

 

"Nowhere in nature does hydrogen appear in a pure form," says Choren-founder Wolf. "Why should it do so in industry?"

 

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Posted by Vince to Biodiesel News at 9/21/2006 12:20:00 PM


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