Monthly Archives: September 2010

Congress passes algae biofuel tax credit legislation

biofuel tax credit legislation

Congress passes algae biofuel tax credit legislation

The US House of Representatives has passed a new law this week seeking to give algae-based biofuels parity with cellulosic biofuels in federal tax credit programs.

The Algae-based Renewable Fuel Promotion Act (HR 4168) means algae biofuel projects could access a $1.01 per gallon production tax credit and 50% bonus depreciation for biofuel plant property.

The bill sponsored by New Mexico Congressman Harry Teague amended Internal Revenue Codes to expand the cellulosic biofuel definition.

Along with the Democrat Rep. Teague, there was bipartisan support for the legislation, including backing from Mary Bono Mack (R-CA), Dave Reichert (R-WA) and Brian Bilbray (R-CA).

Mary Rosenthal, Executive Director of the Algal Biomass Organization trade group, said: “Today, the House sent an unmistakable message of bipartisan support to the hundreds of companies, scientists, entrepreneurs and government agencies working to accelerate the development of algae-based fuels, which will create jobs, decrease emissions and reduce our nation’s dependence on imported fossil fuels.”

“The passage of this bill is a huge first step towards our goal of creating parity for algae-based biofuels within the tax code and among various other government programs,” added Ms Rosenthal.

PSA Peugeot Citroën and FNSEA to develop biofuels

peugeot-citroen-logo

PSA Peugeot Citroën and FNSEA to develop biofuel

PSA Peugeot Citroën and the Fédération Nationale des Syndicats d’Exploitants Agricoles (FNSEA), France’s largest farmers’ union, are in discussions to jointly develop biofuels.

The discussions fall into line with the objectives of the European Union directive on renewable energies, which has set a target of sourcing at least 10 per cent of land transport fuel from renewables by 2020.

FNSEA confirmed that French and other European agricultural resources are sufficient to deploy biofuel solutions without disrupting food supplies for the domestic or export markets. Furthermore, producers are said to have the necessary capacity to reach the 10 per cent target.

For its part, PSA Peugeot Citroën reaffirmed its commitment to the use of biofuels, which offer an additional strategic path in the group’s approach to carbon-free vehicles. The group also emphasised the importance of making B10 – a 10 per cent biodiesel blend – available quickly. The group estimates that Peugeot and Citroën vehicles using 10 per cent biofuel would save more than 800,000 tonnes of CO2 emissions annually.

Biofuel from the Deep Depths : Seaweed Power

Seaweed

Biofuel from Seaweed

Well, add it to the list of other unique biofuels that we’ve talked about on TGB. The latest alternative fuel idea to be floating around (pun intended) is a biofuel made from seaweed. Don’t get worried that your sushi supply will be hindered by the clean fuel just yet. There are some production elements to put in place, but when it’s all broken down, farmed seaweed looks as though it may a great solution to the biofuel question.

According to Daniel Trufino, CEO of Bio Architecture Labs (BAL) who are developoing the technology from their Berkeley location, between fifteen hundred and two thousand gallons of ethanol can be made from seaweed, whereas an acre of sugar cane can make just shy of a thousand gallons and an acre of corn can make just over four hundred gallons. Seaweed has the advantage of not having lignin, which is a chemical compound that makes up many of the secondary walls of some organisms. Because there’s no lignan, the seaweed can be broken down into sugar more easily.

The foray into biofuel from the deep is being led by BAL who recently partnered with Norwegian heavy weight oil company Statoil. Statoil is going to fund the research and development of BAL’s process to convert macroalgae that grows off of the Norwegian coast into ethanol. And while BAL is figuring out how to convert seaweed to biofuel, Statoil will also be funding the process of setting up the seaweed farming.

Can Research Strike a Balance Between Food and Fuel Crops?

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Can we ever strike a "biofuel balance"?

While researchers and farmers are still divided on the benefits of growing crops for biofuel production as Africa grapples with food security, Senegal is steadily working to balance the growing demands for food and biofuels.

Senegal, which uses more than 500 million litres of diesel a year, has been developing an ambitious bio-diesel programme to be energy and food sufficient by 2012. And while research by the Imperial College in London has shown that bioenergy is not only compatible with food production, but can also greatly benefit agriculture in Africa, not everyone is in agreement with this.

For years Senegal has been working with investors in biofuels, farmers, researchers and private sector to promote Jathropha Curcus. Jatropha Curcus is an oil-bearing plant, commonly used as a fence around homes to keep out livestock. It also has medicinal properties too.

The Senegal Institute of Agricultural Research director general, Dr. Macoumba Diouf, told IPS that low cost energy was key to modernising Senegal’s agriculture and boosting food production. The country has already developed a bioenergy plan over five years to 2012.

According to the plan, Senegal targets to plant one billion Jatropha Curcus plants grown using in-vitro, nursery and cuttings in the next two years. Currently, the country is propagating material to complement existing plants growing in the wild and about a quarter are expected to be planted by end of the year. The country will cultivate 321,000 hectares of land under Jatropha Curcus with 321 districts growing about 1,000 plants per hectare.

Indonesia to impose a 2% export tax on biodiesel

borobodur indonesia

2% Export Tax on Biodiesel

Indonesia, a burgeoning exporter of biodiesel in Southeast Asia, will impose a 2% export tax on biodiesel for the first time in October, trade sources said this week.

Indonesia uses the average crude palm oil, or CPO spot prices in
Rotterdam to set its export tax on CPO and its derivatives every month. It
will raise its export tax on CPO to 7.5% in October from the current 6%, which sources said was due to rising global palm oil prices.

The export tax is aimed at restricting the flow of CPO exports so that cooking oil supply in the country would be guaranteed, mitigating fears of a shortfall in this staple commodity.

Peru’s Biofuel industry is facing further set-backs.

peru flag

Biofuel set backs in Peru, South America

While Brazil’s ethanol industry continues to boom South American neighbour Peru’s industry is facing further set-backs.

The nation has decided to delay the planned roll-out of an obligatory biofuel blending mandate in the Peruvian capital, Lima, and in the province of Callao in order to avoid the need for imports.

Projected national demand including the capital is 10,000m3 per month and there is currently a production shortfall of 4,500m3 per month.

Sales of the blend will now start in June 2011 rather than 1 October this year, as previously planned. The government has been gradually rolling out an ethanol programme that makes the sale of petrol blends with 7.8% ethanol mandatory.

University working on Coffee Cup to Biofuel Process

coffee cup

Coffee Cup to Biofuel, fuel for the mind and your Car!!

Two University of Manitoba professors are working on a new way to recycle Cs from Tim Hortons. Biosystems engineering professor David Levin and microbiology professor Richard Sparling are investigating the possibility that bacteria could eat and process minutely ground-up cups and convert them into biofuel.

The research they have done so far shows that whatever is in the cups, the bacteria like it and can convert it into usable fuel. Apparently Starbucks’ cups are made of a different material, so the end product is nowhere near as good.

Foster Wheeler AG advances new biofuel production process

Australia’s biofuel production to more than double by 2015

Australia Biofuel

Australia biofuel output seen doubling by 2015

Australia’s biofuel production is forecast to more than double by 2015 as new capacity is installed and demand for alternative fuels increases, a private consultancy forecast in a report.

Australia’s biofuel annual capacity is forecast to rise to 1.519 billion litres by 2015 from 636 million litres this year, APAC Biofuel Consultants said, adding that this would see more demand for sugar cane and soybeans as biofuel feedstocks.

“Biofuels are increasingly contributing to the Australian transport fuel mix, replacing imports, assisting fuel security and providing environmental advantages,” APAC joint chief executive Mike Cochran said in the report.

Australia’s crude oil production is declining, leaving biofuel production well placed to displace imported oil, which currently meets about 40 per cent of the country’s oil demand.

Biofuel demand in Australia grew 34 per cent in 2009/10 from 2008/09, more than double the global growth rate.

Most Australian demand is for ethanol, which is blended with gasoline, rather than biodiesel, another major type of biofuel.

DA wants ban on use of maize for ethanol lifted

Biofuel land grab

Friends of the Earth says that biofuel crops, including sugar cane, 'are competing directly with food crops for fertile land'

The Democratic Alliance says it believes that the ban on South African maize being sold for ethanol production needs to be lifted.

It says this is in light of Grain SA, the body representing most of SA’s maize, wheat and soya producers, recently warning that a substantial number of small farmers could face bankruptcy due to the 2009/10 harvest season surplus, which has driven maize prices down.

The DA says it will be leading a delegation including Grain SA and the Portfolio Committee on Energy to the Department of Energy on 12 October 2010 to discuss the matter.

‘South Africa is currently the continent’s largest producer of maize and produced a surplus of four million tonnes for the 2009/10 season.”

“This has resulted in maize prices being driven down and as a result, a number of commercial grain farmers will fail to serve their current debt obligations and source new production loans. While the government has indeed taken steps to ensure an alternative market to dispose of the surplus maize, however, these efforts do not seem to have come to fruition.”

The DA says it therefore believes that the excess maize that is produced should be considered for the use in the production of ethanol in South Africa’s bio-fuel industry.

“The ban was imposed when world maize stocks were dwindling and there was fear of food security being compromised. However, the excess produced means that the provisions needed for food security is no longer a real fear.”

Source TimesLive