Finnish paper producer UPM is to build a biorefinery that will produce biofuels from crude tall oil derived from pulp in Lappeenranta, Finland.

The facility will be commercial size and produce about 100,000 tonnes of biodiesel a year to be used as vehicle fuel. The biodiesel is called BioVerno and produces 80% less greenhouse gases than traditional fossil fuels.

Construction on the biorefinery is expected to start in the middle of 2012 and scheduled for completion by 2014, with the development costing about €150 million.

About 200 people will work on the build of the project and when it is completed, around 50 people will be employed directly and 150 indirectly. UPM has not asked for public financial assistance.

‘Our biorefinery in Lappeenranta is the first significant investment in a new and innovative production facility in Finland during the ongoing transformation of forest industry,’ says UPM CEO Jussi Pesonen.

Once this project is completed, UPM plans to build another biorefinery in either Rauma, Finland, or Strasbourg, France, although this would use energy wood as a raw material through a different technology system than what is planned for Lappeenranta.

However, future development will depend on investment grants UPM receives from the EU, which is to make its decision whether to award them, and for how much, by the second half of this year.

‘We utilise our own development work and sustainable wood-based raw materials. As a result we will have a cost-competitive high quality transport fuel that truly decreases emissions and is suitable for modern cars,’ adds UPM’s vice president for biofuels Petri Kukkonen.  

Finnish paper producer UPM is to build a biorefinery that will produce biofuels from crude tall oil derived from pulp in Lappeenranta, Finland.

The facility will be commercial size and produce about 100,000 tonnes of biodiesel a year to be used as vehicle fuel. The biodiesel is called BioVerno and produces 80% less greenhouse gases than traditional fossil fuels.

Construction on the biorefinery is expected to start in the middle of 2012 and scheduled for completion by 2014, with the development costing about €150 million.

About 200 people will work on the build of the project and when it is completed, around 50 people will be employed directly and 150 indirectly. UPM has not asked for public financial assistance.

‘Our biorefinery in Lappeenranta is the first significant investment in a new and innovative production facility in Finland during the ongoing transformation of forest industry,’ says UPM CEO Jussi Pesonen.

Once this project is completed, UPM plans to build another biorefinery in either Rauma, Finland, or Strasbourg, France, although this would use energy wood as a raw material through a different technology system than what is planned for Lappeenranta.

However, future development will depend on investment grants UPM receives from the EU, which is to make its decision whether to award them, and for how much, by the second half of this year.

‘We utilise our own development work and sustainable wood-based raw materials. As a result we will have a cost-competitive high quality transport fuel that truly decreases emissions and is suitable for modern cars,’ adds UPM’s vice president for biofuels Petri Kukkonen.  

Pond Biofuels is developing a new algae growth system that will use CO₂ emissions from smoke stacks to grow biomass, which can then be converted into biodiesel, bioplastics or act as a substitute for renewable coal.

With support from the Ontario, Canada province, Pond Biofuels aims to get a full scale commercial facility into operation at St Marys Cement by 2014.

About one tonne of the algae will be able to produce 100 litres of biodiesel and production of the algae should help to reduce Ontario’s pollution costs, which currently amount to about $4 billion a year.

Steve Martin, CEO of Pond Biofuels, says: ‘Solving the problem of industrial emissions requires industry, government, technology and capital all working together. We have that here, with Pond Biofuels providing the technology, St. Marys as our commercialization partner, angel investors in the Biomaterials Investment Group and support from the Province of Ontario. Going forward, Pond's made-in-Ontario technology can be applied to other essential industries, like steel, power generation and resource extraction.’

‘This partnership between St. Marys Cement and Pond Biofuels, made possible with the support of the Government of Ontario, reinforces St Marys Cement's commitment to producing the most sustainable building materials available. With our goal of near-zero emission cement manufacturing and a biofuel distribution fleet, the most sustainable energy projects, green buildings, homes and highways of tomorrow will soon be a reality,’ adds Martin Vroegh, corporate environment manager of St Marys Cement.

Pond Biofuels is developing a new algae growth system that will use CO₂ emissions from smoke stacks to grow biomass, which can then be converted into biodiesel, bioplastics or act as a substitute for renewable coal.

With support from the Ontario, Canada province, Pond Biofuels aims to get a full scale commercial facility into operation at St Marys Cement by 2014.

About one tonne of the algae will be able to produce 100 litres of biodiesel and production of the algae should help to reduce Ontario’s pollution costs, which currently amount to about $4 billion a year.

Steve Martin, CEO of Pond Biofuels, says: ‘Solving the problem of industrial emissions requires industry, government, technology and capital all working together. We have that here, with Pond Biofuels providing the technology, St. Marys as our commercialization partner, angel investors in the Biomaterials Investment Group and support from the Province of Ontario. Going forward, Pond's made-in-Ontario technology can be applied to other essential industries, like steel, power generation and resource extraction.’

‘This partnership between St. Marys Cement and Pond Biofuels, made possible with the support of the Government of Ontario, reinforces St Marys Cement's commitment to producing the most sustainable building materials available. With our goal of near-zero emission cement manufacturing and a biofuel distribution fleet, the most sustainable energy projects, green buildings, homes and highways of tomorrow will soon be a reality,’ adds Martin Vroegh, corporate environment manager of St Marys Cement.

A US senator has called for congress to do more to support development in technology and biofuels incentives during a briefing at the White House.

Senator Chris Coons spoke at an American Chemical Society briefing, saying that biofuels production was essential for the future of the US economy.

‘This was a great starting point as a concrete forum to look at how we begin to move forward towards workable solutions that will require cooperation from many public and private interests to be able to move from the field to the filling station in the future,’ he said.

Coons listed the advantages that investment in biofuels could have for the US, such as job creation, economic development in rural areas and employment in all different types of sectors from growing the biomass to distributing the fuel.

He also discussed what individual companies in the country were doing to improve the production of biofuels and its development.

‘DuPont is deeply committed in investments to a diversified mix of next generation biomass and biofuels, those building blocks and the facilities necessary, those cellulosic production facilities as well as the development of bio-butanol and other drop-in biofuels,’ said Coons.

‘CMS is licensing what were formerly DuPont fluoropolymers selected impermeable memory technologies for the dehydration of biodiesel and other biofuels, a small plucky start-up the recipient of a number of critical SBIR and CDR grants that I think can play a key role in solving some of the production and delivery challenges,’ he continued.

He called for the Department of Energy and the USDA R&D programmes to extend tax credits for advanced biofuels and for the industry to work together on the Renewable Fuels Standard.

A US senator has called for congress to do more to support development in technology and biofuels incentives during a briefing at the White House.

Senator Chris Coons spoke at an American Chemical Society briefing, saying that biofuels production was essential for the future of the US economy.

‘This was a great starting point as a concrete forum to look at how we begin to move forward towards workable solutions that will require cooperation from many public and private interests to be able to move from the field to the filling station in the future,’ he said.

Coons listed the advantages that investment in biofuels could have for the US, such as job creation, economic development in rural areas and employment in all different types of sectors from growing the biomass to distributing the fuel.

He also discussed what individual companies in the country were doing to improve the production of biofuels and its development.

‘DuPont is deeply committed in investments to a diversified mix of next generation biomass and biofuels, those building blocks and the facilities necessary, those cellulosic production facilities as well as the development of bio-butanol and other drop-in biofuels,’ said Coons.

‘CMS is licensing what were formerly DuPont fluoropolymers selected impermeable memory technologies for the dehydration of biodiesel and other biofuels, a small plucky start-up the recipient of a number of critical SBIR and CDR grants that I think can play a key role in solving some of the production and delivery challenges,’ he continued.

He called for the Department of Energy and the USDA R&D programmes to extend tax credits for advanced biofuels and for the industry to work together on the Renewable Fuels Standard.

A new technology has been developed at the University of Sheffield in the UK which uses microbubbles to harvest and remove water from algae for biofuel production.

Algae produces oils which can be used to create biodiesel but water needs to be removed from the algae first in order to do so.

Using the microbubble system is an inexpensive way to do this. The process works by floating algae particles to the surface of the water and therefore enables the producer to easily harvest the algae.

The scientists were part of a team led by Professor Will Zimmerman in the department of chemical and process engineering at the university and this technology should allow for producers to now grow their crops more ‘rapidly and densely’, he says.

‘We thought we had solved the major barrier to biofuel companies processing algae to use as fuel when we used microbubbles to grow the algae more densely,’ explains Zimmerman. ‘It turned out, however, that algae biofuels still couldn’t be produced economically, because of the difficulty in harvesting and dewatering the algae. We had to develop a solution to this problem and once again, microbubbles provided a solution.’
The microbubble system is expected to save about 1,000 times the amount of energy when compared to existing floating systems, and is also much cheaper to install.

Now a pilot plant will be built to test the system on an industrial level, with the team working with Tata Steel at their site in Scunthorpe using CO₂ from their flue-gas stacks. This partnership is expected to continue.

Bruce Adderley, manager of Climate Change Breakthrough Technology, says: ‘Professor Zimmerman’s microbubble-based technologies are exactly the kind of step-change innovations that we are seeking as a means to address our emissions in the longer term, and we are delighted to have the opportunity to extend our relationship with Will and his team in the next phase of this pioneering research.'

The research was funded by the Engineering and Physical Sciences Research Council and also supported by the Royal Society Innovation Award 2010 and the Concept Fund of Yorkshire Forward.

A new technology has been developed at the University of Sheffield in the UK which uses microbubbles to harvest and remove water from algae for biofuel production.

Algae produces oils which can be used to create biodiesel but water needs to be removed from the algae first in order to do so.

Using the microbubble system is an inexpensive way to do this. The process works by floating algae particles to the surface of the water and therefore enables the producer to easily harvest the algae.

The scientists were part of a team led by Professor Will Zimmerman in the department of chemical and process engineering at the university and this technology should allow for producers to now grow their crops more ‘rapidly and densely’, he says.

‘We thought we had solved the major barrier to biofuel companies processing algae to use as fuel when we used microbubbles to grow the algae more densely,’ explains Zimmerman. ‘It turned out, however, that algae biofuels still couldn’t be produced economically, because of the difficulty in harvesting and dewatering the algae. We had to develop a solution to this problem and once again, microbubbles provided a solution.’
The microbubble system is expected to save about 1,000 times the amount of energy when compared to existing floating systems, and is also much cheaper to install.

Now a pilot plant will be built to test the system on an industrial level, with the team working with Tata Steel at their site in Scunthorpe using CO₂ from their flue-gas stacks. This partnership is expected to continue.

Bruce Adderley, manager of Climate Change Breakthrough Technology, says: ‘Professor Zimmerman’s microbubble-based technologies are exactly the kind of step-change innovations that we are seeking as a means to address our emissions in the longer term, and we are delighted to have the opportunity to extend our relationship with Will and his team in the next phase of this pioneering research.'

The research was funded by the Engineering and Physical Sciences Research Council and also supported by the Royal Society Innovation Award 2010 and the Concept Fund of Yorkshire Forward.

VTT, a company working at developing Vietnam’s solid biomass fuel resources on an industrial level as part of the Energy and Environment Partnership Programme run by the Finnish Ministry for Foreign Affairs, is to create multi-fuel delivery chains for power plants and industrial boilers.

The programme will make sure biomass fuels are available all year round through the use of storage systems to make seasonal raw materials available continuously.

It is thought that through this programme, biomass will be able to be more efficiently and more often delivered, which should allow for biomass fuel to be more readily available at Vietnamese power plants.

The project is also examining how to make transportation of the biomass via water routes more efficient and how better to use road transport and loading and unloading technology. Currently loading and unloading is all done manually.

In Finland, solutions are being developed to be implemented into the programme and last year the company looked at identifying the bottlenecks within the delivery chains.

In regards to transport, storage, pelleting, multi-fuel use and agreements, all aspects of the delivery chains were looked at and improvements on these will be put in place this year.

Although the amount of solid biomass has fallen from the 162TWh that was consumed in 2005, total energy consumption has grown faster than biomass fuel use.

VTT, a company working at developing Vietnam’s solid biomass fuel resources on an industrial level as part of the Energy and Environment Partnership Programme run by the Finnish Ministry for Foreign Affairs, is to create multi-fuel delivery chains for power plants and industrial boilers.

The programme will make sure biomass fuels are available all year round through the use of storage systems to make seasonal raw materials available continuously.

It is thought that through this programme, biomass will be able to be more efficiently and more often delivered, which should allow for biomass fuel to be more readily available at Vietnamese power plants.

The project is also examining how to make transportation of the biomass via water routes more efficient and how better to use road transport and loading and unloading technology. Currently loading and unloading is all done manually.

In Finland, solutions are being developed to be implemented into the programme and last year the company looked at identifying the bottlenecks within the delivery chains.

In regards to transport, storage, pelleting, multi-fuel use and agreements, all aspects of the delivery chains were looked at and improvements on these will be put in place this year.

Although the amount of solid biomass has fallen from the 162TWh that was consumed in 2005, total energy consumption has grown faster than biomass fuel use.

Scientists from the Biotechnology and Biological Sciences Research Council (BBSRC) Sustainable Bioenergy Centre (BSBEC) have uncovered a series of genes which could help grasses being breed with better characteristics for bioenergy production.

The genes help to better develop the wood part of the grass, called the fibrous, such as what is in rice and wheat. In understanding how these genes operate, the scientists hope to be able to discover how to breed crops so that they need less energy to turn them into biofuels.

Most of the energy in the plants is stored in the woody part but it is difficult to access this energy. However, the researchers discovered that they could create multi-use crops where the straw could be used to create energy more efficiently.

They say that this is essential in order to create energy in a sustainable manner without competing with food.

Professor Paul Dupree, from the University of Cambridge, explains: ‘Unlike starchy grains, the energy stored in the woody parts of plants is locked away and difficult to get at. Just as cows have to chew the cud and need a stomach with four compartments to extract enough energy from grass, we need to use energy-intensive mechanical and chemical processing to produce biofuels from straw.’

He continues: ‘What we hope to do with this research is to produce varieties of plants where the woody parts yield their energy much more readily - but without compromising the structure of the plant. We think that one way to do this might be to modify the genes that are involved in the formation of a molecule called xylan - a crucial structural component of plants.’

It is this xylan that makes up the wall that surrounds the plants’ cells, holding molecules in place so that the plant stays tough. It is this that needs to be broken down in order to access the energy more efficiently.

However, grasses have a different type of xylan when compared to other plants and the scientists wanted to discover what this difference was. They searched for the genes that were switched on more readily in grasses and found the gene family in wheat and rice, which was called GT61, which they could use to give the grass a form of xylan.

Rowan Mitchell of Rothamsted Research adds:  ‘As well as adding the GT61 genes to Arabidopsis, we also turned off the genes in wheat grain. Both the Arabidopsis plants and the wheat grain appeared normal, despite the changes to xylan. This suggests that we can make modifications to xylan without compromising its ability to hold cell walls together. This is important as it would mean that there is scope to produce plant varieties that strike the right balance of being sturdy enough to grow and thrive, whilst also having other useful properties such as for biofuel production.’

The research was conducted by the University of Cambridge and Rothamsted Research, which receives funds from the BBSRC.

Scientists from the Biotechnology and Biological Sciences Research Council (BBSRC) Sustainable Bioenergy Centre (BSBEC) have uncovered a series of genes which could help grasses being breed with better characteristics for bioenergy production.

The genes help to better develop the wood part of the grass, called the fibrous, such as what is in rice and wheat. In understanding how these genes operate, the scientists hope to be able to discover how to breed crops so that they need less energy to turn them into biofuels.

Most of the energy in the plants is stored in the woody part but it is difficult to access this energy. However, the researchers discovered that they could create multi-use crops where the straw could be used to create energy more efficiently.

They say that this is essential in order to create energy in a sustainable manner without competing with food.

Professor Paul Dupree, from the University of Cambridge, explains: ‘Unlike starchy grains, the energy stored in the woody parts of plants is locked away and difficult to get at. Just as cows have to chew the cud and need a stomach with four compartments to extract enough energy from grass, we need to use energy-intensive mechanical and chemical processing to produce biofuels from straw.’

He continues: ‘What we hope to do with this research is to produce varieties of plants where the woody parts yield their energy much more readily - but without compromising the structure of the plant. We think that one way to do this might be to modify the genes that are involved in the formation of a molecule called xylan - a crucial structural component of plants.’

It is this xylan that makes up the wall that surrounds the plants’ cells, holding molecules in place so that the plant stays tough. It is this that needs to be broken down in order to access the energy more efficiently.

However, grasses have a different type of xylan when compared to other plants and the scientists wanted to discover what this difference was. They searched for the genes that were switched on more readily in grasses and found the gene family in wheat and rice, which was called GT61, which they could use to give the grass a form of xylan.

Rowan Mitchell of Rothamsted Research adds:  ‘As well as adding the GT61 genes to Arabidopsis, we also turned off the genes in wheat grain. Both the Arabidopsis plants and the wheat grain appeared normal, despite the changes to xylan. This suggests that we can make modifications to xylan without compromising its ability to hold cell walls together. This is important as it would mean that there is scope to produce plant varieties that strike the right balance of being sturdy enough to grow and thrive, whilst also having other useful properties such as for biofuel production.’

The research was conducted by the University of Cambridge and Rothamsted Research, which receives funds from the BBSRC.

Bioenergy company ZeaChem has been awarded a $232.5 million (€176 million) loan guarantee from the US Department of Agriculture (USDA) to build a biorefinery that will convert biomass into sustainable fuels and chemicals.

It will be the company’s first commercial size cellulosic biorefinery and will use woody biomass and agricultural residues to produce bio-based fuels.

Speaking to Biofuels International, ZeaChem’s CEO Jim Imbler says: ‘Development of the commercial plant is actively underway. With this conditional loan guarantee in place, ZeaChem will seek to close financing on the commercial plant by the end of 2012, start construction in 2013, and begin operations in 2014.’

The total cost of the facility is expected to be just over $390 million. The plant will have the capacity of 25 million gallons a year and will be situated in the Port of Morrow in Boardman, Oregon, next to ZeaChem’s existing 250,000 gallons a year demonstration biorefinery.

The commercial facility is projected to utilise 650 bone dry tonnes of biomass per day, about 225,000 tonnes per year. This is the total feedstock demand for woody biomass (dedicated crop) and wheat straw (supplemental).

The company will source its woody biomass from the GreenWood Tree Farm Fund which is a local company that is controlled by GreenWood Resources, and will also collect its biomass from other nearby agricultural residue processors.

During the construction phase, about 188 jobs are expected to be created, and following this around 65 people will work at the facility full time.

At the demonstration plant, core operations have already begun and the project which allows for cellulosic ethanol to be produced should be finished this year.

Imbler says: ‘This commitment allows us to move forward with securing financing, beginning construction, creating jobs in the community, and producing economical and sustainable products for the fuel and chemical industries.’

US agriculture secretary, Tom Vilsack, adds: ‘This project, and others like it will help establish a domestic advanced biofuel industry that will create jobs here at home and open new markets in the pacific northwest and across America.’

The USDA is backing the bank loan guarantee and Silicon Valley Bank is the lender of record for the loan guarantee and is the actual recipient.

Bioenergy company ZeaChem has been awarded a $232.5 million (€176 million) loan guarantee from the US Department of Agriculture (USDA) to build a biorefinery that will convert biomass into sustainable fuels and chemicals.

It will be the company’s first commercial size cellulosic biorefinery and will use woody biomass and agricultural residues to produce bio-based fuels.

Speaking to Biofuels International, ZeaChem’s CEO Jim Imbler says: ‘Development of the commercial plant is actively underway. With this conditional loan guarantee in place, ZeaChem will seek to close financing on the commercial plant by the end of 2012, start construction in 2013, and begin operations in 2014.’

The total cost of the facility is expected to be just over $390 million. The plant will have the capacity of 25 million gallons a year and will be situated in the Port of Morrow in Boardman, Oregon, next to ZeaChem’s existing 250,000 gallons a year demonstration biorefinery.

The commercial facility is projected to utilise 650 bone dry tonnes of biomass per day, about 225,000 tonnes per year. This is the total feedstock demand for woody biomass (dedicated crop) and wheat straw (supplemental).

The company will source its woody biomass from the GreenWood Tree Farm Fund which is a local company that is controlled by GreenWood Resources, and will also collect its biomass from other nearby agricultural residue processors.

During the construction phase, about 188 jobs are expected to be created, and following this around 65 people will work at the facility full time.

At the demonstration plant, core operations have already begun and the project which allows for cellulosic ethanol to be produced should be finished this year.

Imbler says: ‘This commitment allows us to move forward with securing financing, beginning construction, creating jobs in the community, and producing economical and sustainable products for the fuel and chemical industries.’

US agriculture secretary, Tom Vilsack, adds: ‘This project, and others like it will help establish a domestic advanced biofuel industry that will create jobs here at home and open new markets in the pacific northwest and across America.’

The USDA is backing the bank loan guarantee and Silicon Valley Bank is the lender of record for the loan guarantee and is the actual recipient.

The Nordic Investment Bank (NIB) has provided bioenergy company Vaskiluodon Voima Oy with €18 million to build a gasification plant in Vaasa, Finland. The total project cost is expected to be about €40 million.

The facility will produce 140MW and is to be connected to a power plant that is already established, allowing for the coal from the old plant to be substituted by domestic biofuels and peat.

Because of this, coal use will be lowered by between 25-40%, with a fuel mix for the gasification system that will be made up of about 25% peat and 75% forest residues and biomaterials such as reed.

‘The objective of the Finnish national energy and climate strategy is to increase the use of renewable sources of energy and their share of energy consumption. NIB supports these targets,’ explains Sebastian Påwals, NIB’s senior manager, to Biofuels International.

The biomass will be sourced from under a 100km radius from the plant. However, the investment will not increase how much energy the plant produces, merely make its energy production greener.

Even so, it is the first plant of its size to be built in Finland and the development has also received a grant from the ministry of employment and economy because the technology being used has been deemed innovative.

‘Biomass gasification is a new technology. It has never before been used in such a large scale as planned in this project and previously it has been used for dryer fuels. It is also the reason for the project to earn the maximum amount of grant from the ministry of employment and economy,’ says Påwals.

‘The Vaskiluodon Voima project combines energy production with an innovative new technology developed in Finland, allowing NIB to finance a project that brings together two core sectors of its activities,’ adds Johnny Åkerholm, NIB president.

Vaskiluodon Voima is owned by EPV Energy Ltd. (50%) and Pohjolan Voima Oy (50%). Its electricity and district heating producing energy plants are situated in Vaasa and Seinäjoki.

‘More investments in renewable energy and energy efficiency are needed. In order to enhance the competitiveness of the region it is important to integrate energy networks and secure the supply of energy. NIB is interested in further possibilities such as financing the Vaskiluodon Voima project,’ says Påwals.

The Nordic Investment Bank (NIB) has provided bioenergy company Vaskiluodon Voima Oy with €18 million to build a gasification plant in Vaasa, Finland. The total project cost is expected to be about €40 million.

The facility will produce 140MW and is to be connected to a power plant that is already established, allowing for the coal from the old plant to be substituted by domestic biofuels and peat.

Because of this, coal use will be lowered by between 25-40%, with a fuel mix for the gasification system that will be made up of about 25% peat and 75% forest residues and biomaterials such as reed.

‘The objective of the Finnish national energy and climate strategy is to increase the use of renewable sources of energy and their share of energy consumption. NIB supports these targets,’ explains Sebastian Påwals, NIB’s senior manager, to Biofuels International.

The biomass will be sourced from under a 100km radius from the plant. However, the investment will not increase how much energy the plant produces, merely make its energy production greener.

Even so, it is the first plant of its size to be built in Finland and the development has also received a grant from the ministry of employment and economy because the technology being used has been deemed innovative.

‘Biomass gasification is a new technology. It has never before been used in such a large scale as planned in this project and previously it has been used for dryer fuels. It is also the reason for the project to earn the maximum amount of grant from the ministry of employment and economy,’ says Påwals.

‘The Vaskiluodon Voima project combines energy production with an innovative new technology developed in Finland, allowing NIB to finance a project that brings together two core sectors of its activities,’ adds Johnny Åkerholm, NIB president.

Vaskiluodon Voima is owned by EPV Energy Ltd. (50%) and Pohjolan Voima Oy (50%). Its electricity and district heating producing energy plants are situated in Vaasa and Seinäjoki.

‘More investments in renewable energy and energy efficiency are needed. In order to enhance the competitiveness of the region it is important to integrate energy networks and secure the supply of energy. NIB is interested in further possibilities such as financing the Vaskiluodon Voima project,’ says Påwals.

In order to discover better ways to harvest, store and transport corn residue, DuPont is working with Iowa State University to combat residue buildup.

If the residue buildup is able to be reduced then stand establishment concerns when the next crop is grown can be avoided.

A second benefit is that nitrogen tie-up caused by residues can be reduced. At the moment, some farmers growing corn increase their use of nitrogen fertiliser to allow for the nitrogen that is mixed up with microbes.

‘Growers who achieve high yields per acre typically find that residue becomes difficult to manage,’ says Andy Heggenstaller, Pioneer agronomy research manager from Iowa. ‘It can be a time-consuming and costly process.’

Excessive tillage can also harm the crop’s soil and organic matter is lost when oxygen is put into the soil through tillage.

However, if better residue management practices are introduced, challenges relating to reduced-tillage systems can be overcome.

DuPont says seed selection is important and the company looks into assigning each hybrid a stress emergence score, looking at the genetic potential for hybrid to establish stand under stress conditions such as in the cold, or with wet soil.

It also rates the seeds on their high-residue suitability, as to whether they have a good hybrid performance in reduced-tillage systems. This is judged on whether they rot or whether any signs of stress are being shown.

DuPont lists types such as include using row cleaners to clear the planting row of residue, planting slightly deeper to help overcome some of the moisture and temperature variability, and choosing a planting date that allocates extra time for soil under heavy residue to dry before planting.

However, with this work at the university, DuPont plans to further discover better ways in which to reduce residue buildup.

In order to discover better ways to harvest, store and transport corn residue, DuPont is working with Iowa State University to combat residue buildup.

If the residue buildup is able to be reduced then stand establishment concerns when the next crop is grown can be avoided.

A second benefit is that nitrogen tie-up caused by residues can be reduced. At the moment, some farmers growing corn increase their use of nitrogen fertiliser to allow for the nitrogen that is mixed up with microbes.

‘Growers who achieve high yields per acre typically find that residue becomes difficult to manage,’ says Andy Heggenstaller, Pioneer agronomy research manager from Iowa. ‘It can be a time-consuming and costly process.’

Excessive tillage can also harm the crop’s soil and organic matter is lost when oxygen is put into the soil through tillage.

However, if better residue management practices are introduced, challenges relating to reduced-tillage systems can be overcome.

DuPont says seed selection is important and the company looks into assigning each hybrid a stress emergence score, looking at the genetic potential for hybrid to establish stand under stress conditions such as in the cold, or with wet soil.

It also rates the seeds on their high-residue suitability, as to whether they have a good hybrid performance in reduced-tillage systems. This is judged on whether they rot or whether any signs of stress are being shown.

DuPont lists types such as include using row cleaners to clear the planting row of residue, planting slightly deeper to help overcome some of the moisture and temperature variability, and choosing a planting date that allocates extra time for soil under heavy residue to dry before planting.

However, with this work at the university, DuPont plans to further discover better ways in which to reduce residue buildup.

Construction has begun on the Hairy Hill biorefinery in Canada which is to turn farmers’ grain into ethanol whilst at the same time producing power for the grid.

The construction marks the second phase of the development, which already features a biogas plant that produces 1MW for the power grid from manure and other waste.

That facility is expected to cost about $50 million (€38 million) and will mill, cook and process 110,000 tonnes of grain feed to produce 40 million litres of ethanol. For the biogas, which is created through an anaerobic digester system, about 120,000 tonnes of manure will be treated.

Approximately 10,000 tonnes of fertiliser will also be produced as a byproduct and the whole process is expected to generate about 100,000 tonnes of greenhouse gas emission credits.

The facility is expected to be the world’s biggest biorefinery although at the moment the feed lot creates about 250 tonnes a day of manure which is fed into the biogas plant.

However, sewage and waste collected from a slaughterhouse and a canola crushing plant is also used.

The facility is expected to create about 25 new jobs when it comes online and was able to be built thanks to a round of funding that the project was given from Climate Change and Emissions Management (CCEMC) which gave $130 million to renewable developments being built in Alberta.

Under these grants, the Hairy Hill project was given $15 million and will help the world’s first large scale carbon neutral biofuels plant to get off the ground.

Construction has begun on the Hairy Hill biorefinery in Canada which is to turn farmers’ grain into ethanol whilst at the same time producing power for the grid.

The construction marks the second phase of the development, which already features a biogas plant that produces 1MW for the power grid from manure and other waste.

That facility is expected to cost about $50 million (€38 million) and will mill, cook and process 110,000 tonnes of grain feed to produce 40 million litres of ethanol. For the biogas, which is created through an anaerobic digester system, about 120,000 tonnes of manure will be treated.

Approximately 10,000 tonnes of fertiliser will also be produced as a byproduct and the whole process is expected to generate about 100,000 tonnes of greenhouse gas emission credits.

The facility is expected to be the world’s biggest biorefinery although at the moment the feed lot creates about 250 tonnes a day of manure which is fed into the biogas plant.

However, sewage and waste collected from a slaughterhouse and a canola crushing plant is also used.

The facility is expected to create about 25 new jobs when it comes online and was able to be built thanks to a round of funding that the project was given from Climate Change and Emissions Management (CCEMC) which gave $130 million to renewable developments being built in Alberta.

Under these grants, the Hairy Hill project was given $15 million and will help the world’s first large scale carbon neutral biofuels plant to get off the ground.

Middle Eastern airline Etihad Airways has flown its first biofuels flight from Seattle to Dubai, using a Boeing 777-300ER.

The airline is the first to operate such as flight around the Gulf and the fuel was supplied by SkyNRG, which is an Amsterdam-based sustainable jet fuel supplier.

From the factory to the plane, the fuel was delivered with the help of SkyNRG’s partners EPIC Aviation and Boeing.

Etihad, which is an Arab airline, says it hopes the flight will help to support the development of and commercialisation of biofuels around the Abu Dhabi region.

‘However, the use of a presently available biofuel is just one part of a more comprehensive long-term biofuel strategy to ensure that we are able to use biofuels to decarbonise substantially an entire industry sector in the long term,’ says Dirk Kronemeijer, MD of SkyNRG. ‘We think the Middle East has great potential to give a critical boost towards making a market for sustainable jet fuel that is affordable.’

Middle Eastern airline Etihad Airways has flown its first biofuels flight from Seattle to Dubai, using a Boeing 777-300ER.

The airline is the first to operate such as flight around the Gulf and the fuel was supplied by SkyNRG, which is an Amsterdam-based sustainable jet fuel supplier.

From the factory to the plane, the fuel was delivered with the help of SkyNRG’s partners EPIC Aviation and Boeing.

Etihad, which is an Arab airline, says it hopes the flight will help to support the development of and commercialisation of biofuels around the Abu Dhabi region.

‘However, the use of a presently available biofuel is just one part of a more comprehensive long-term biofuel strategy to ensure that we are able to use biofuels to decarbonise substantially an entire industry sector in the long term,’ says Dirk Kronemeijer, MD of SkyNRG. ‘We think the Middle East has great potential to give a critical boost towards making a market for sustainable jet fuel that is affordable.’

Following major reviews, reversals and amendments of government policies over the past 18 months, biofuels in Australia should now be able to look to the future with more certainty and support

As with most other countries promoting renewable fuels, targeted policies and support from federal and state governments are critical components for determining the transport fuel mix in the Australian economy. The real question is whether government intervention will have the intended effect on changing consumer’s behaviour towards biofuels?

Mandates are a key tool used by governments to promote biofuels. However, economists continue to argue about their effectiveness and how they interfere with free market mechanisms, creating price distortions. 

In Australia, the introduction of biofuel mandates has rested with the state governments which are keen to promote regional development and investment. 

The most populous state in Australia, New South Wales, was the first state to introduce an ethanol mandate in October 2007. The original mandate started at 2% of all grades of petrol, increasing to 4% in 2010, then to 6% from January 2011. Furthermore, from July 2011, primary fuel wholesalers in New South Wales were to replace regular unleaded petrol (RULP) with E10.

However, in late 2010 the NSW Government was forced to suspend the introduction of the 6% tranche and the 10% E10 mandate because Australia did not have sufficient ethanol production and production capacity to meet the mandated volume. 

APAC Biofuel Consultants (APAC) estimates that about 400 megalitres (ML) of ethanol is required to meet the 10% mandated demand in NSW. Ethanol imports are taxed and thus economically prohibitive.

The Queensland Government was placed in a similar position. It had planned to introduce a 5% ethanol effective January 2011. However, in October 2010, primarily due to ethanol shortages, the Government decided to suspend its introduction for 12 months. Queensland has not yet decided if or when to implement a mandate.

None of the other states in Australia are seriously considering biofuel mandates at this stage.

Read this article in full in the upcoming issue of Biofuels International.

Following major reviews, reversals and amendments of government policies over the past 18 months, biofuels in Australia should now be able to look to the future with more certainty and support

As with most other countries promoting renewable fuels, targeted policies and support from federal and state governments are critical components for determining the transport fuel mix in the Australian economy. The real question is whether government intervention will have the intended effect on changing consumer’s behaviour towards biofuels?

Mandates are a key tool used by governments to promote biofuels. However, economists continue to argue about their effectiveness and how they interfere with free market mechanisms, creating price distortions. 

In Australia, the introduction of biofuel mandates has rested with the state governments which are keen to promote regional development and investment. 

The most populous state in Australia, New South Wales, was the first state to introduce an ethanol mandate in October 2007. The original mandate started at 2% of all grades of petrol, increasing to 4% in 2010, then to 6% from January 2011. Furthermore, from July 2011, primary fuel wholesalers in New South Wales were to replace regular unleaded petrol (RULP) with E10.

However, in late 2010 the NSW Government was forced to suspend the introduction of the 6% tranche and the 10% E10 mandate because Australia did not have sufficient ethanol production and production capacity to meet the mandated volume. 

APAC Biofuel Consultants (APAC) estimates that about 400 megalitres (ML) of ethanol is required to meet the 10% mandated demand in NSW. Ethanol imports are taxed and thus economically prohibitive.

The Queensland Government was placed in a similar position. It had planned to introduce a 5% ethanol effective January 2011. However, in October 2010, primarily due to ethanol shortages, the Government decided to suspend its introduction for 12 months. Queensland has not yet decided if or when to implement a mandate.

None of the other states in Australia are seriously considering biofuel mandates at this stage.

Read this article in full in the upcoming issue of Biofuels International.

DSM and POET have joined forces to convert  a facility into its first commercial-scale cellulosic ethanol plant in the US, which will be based in Emmetsburg, Iowa.

The POET-DSM Advanced Biofuels joint venture will produce 20 million gallons of ethanol in the first year, growing to about 25 million gallons the year following.

The plant is due to come online in the second half of 2013 and will put corn crop residue through a biological process using enzymatic hydrolysis and then fermentation to produce the ethanol.

Speaking to Biofuels International magazine, DSM’s chief technology officer Marcel Wubbolts says the companies had been considering the joint venture for about a year and a half and that their combined skills are very complimentary.

‘One of the things that we were very impressed by was the way POET’s value chain operates. This includes from how to turn the corn to stover, to processing, transporting, grinding the corn and pre-treatment. The company has really developed these areas,’ he says. ‘We have vast biotechnology experience where we have been improving enzymes and cellulosic sugars for bioethanol production. It is in this way that we are complimentary.’

The project is expected to cost about $250 million (€192 million) and the companies will each own a 50% share in the business. Wubbolts says that joining with POET will mean future possibilities for expansion.

‘POET provides technology in 27 plants and has the capabilities to roll out the new cellulosic technology at these facilities which produce corn ethanol at the moment. Using this method we could really expand throughout the whole world if we wanted to,’ Wubbolts explains.

However, for the first phase of development under the joint venture, the companies will be focusing on the US.

‘There is a very strong biofuels industry right now in the US for corn and corn waste,’ says Wubbolts. ‘We are using corn residue and have already set up contracts with farmers for them to provide us with the biomass. And we are not using feedstock that could be used for food.

‘The reason why we are using cellulosic biofuel technology is because we estimate the process creates a 111% reduction in greenhouse gases when compared to fossil fuels.’

DSM and POET have joined forces to convert  a facility into its first commercial-scale cellulosic ethanol plant in the US, which will be based in Emmetsburg, Iowa.

The POET-DSM Advanced Biofuels joint venture will produce 20 million gallons of ethanol in the first year, growing to about 25 million gallons the year following.

The plant is due to come online in the second half of 2013 and will put corn crop residue through a biological process using enzymatic hydrolysis and then fermentation to produce the ethanol.

Speaking to Biofuels International magazine, DSM’s chief technology officer Marcel Wubbolts says the companies had been considering the joint venture for about a year and a half and that their combined skills are very complimentary.

‘One of the things that we were very impressed by was the way POET’s value chain operates. This includes from how to turn the corn to stover, to processing, transporting, grinding the corn and pre-treatment. The company has really developed these areas,’ he says. ‘We have vast biotechnology experience where we have been improving enzymes and cellulosic sugars for bioethanol production. It is in this way that we are complimentary.’

The project is expected to cost about $250 million (€192 million) and the companies will each own a 50% share in the business. Wubbolts says that joining with POET will mean future possibilities for expansion.

‘POET provides technology in 27 plants and has the capabilities to roll out the new cellulosic technology at these facilities which produce corn ethanol at the moment. Using this method we could really expand throughout the whole world if we wanted to,’ Wubbolts explains.

However, for the first phase of development under the joint venture, the companies will be focusing on the US.

‘There is a very strong biofuels industry right now in the US for corn and corn waste,’ says Wubbolts. ‘We are using corn residue and have already set up contracts with farmers for them to provide us with the biomass. And we are not using feedstock that could be used for food.

‘The reason why we are using cellulosic biofuel technology is because we estimate the process creates a 111% reduction in greenhouse gases when compared to fossil fuels.’

The California Air Resources Board (CARB) has asked the US District Court for the Eastern District of California to stay its injunction it issued at the end of last year to stop CARB’s introduction of the California Low Carbon Fuel Standard (LCFS).

Judge Lawrence O'Neill, who implemented the injunction, says he did so because he believes the LCFS ‘violates the commerce clause of the US Constitution’.

At the beginning of January, CARB appealed against the judge’s decision with the US Court of Appeals for the 9th Circuit, although the Renewable Fuels Association (RFA) says it was happy with the injunction.

‘Judge O'Neill's ruling clearly established that the LCFS significantly overreaches by attempting to regulate commerce in states outside of California,’ says RFA president Bob Dinneen. ‘We are confident Judge O'Neill's ruling will stand, particularly as he outlined other specific actions the state of California could take to regulate carbon emissions that would not infringe upon the business practices of entities outside of California's borders.’

In December, two arguments were put forward which challenged the constitutionality of the LCFS. These were:

•             That the LCFS discriminates against interstate commerce in ethanol because it assigns worse carbon-intensity scores to Midwest ethanol than to California ethanol

•             That the LCFS attempts to regulate conduct occurring wholly outside the borders of the state of California and is thus impermissibly extraterritorial.

The Court says that CARB cannot hold responsibility, both political and legal, for commercial incidents happening outside of the state of California.

The California Air Resources Board (CARB) has asked the US District Court for the Eastern District of California to stay its injunction it issued at the end of last year to stop CARB’s introduction of the California Low Carbon Fuel Standard (LCFS).

Judge Lawrence O'Neill, who implemented the injunction, says he did so because he believes the LCFS ‘violates the commerce clause of the US Constitution’.

At the beginning of January, CARB appealed against the judge’s decision with the US Court of Appeals for the 9th Circuit, although the Renewable Fuels Association (RFA) says it was happy with the injunction.

‘Judge O'Neill's ruling clearly established that the LCFS significantly overreaches by attempting to regulate commerce in states outside of California,’ says RFA president Bob Dinneen. ‘We are confident Judge O'Neill's ruling will stand, particularly as he outlined other specific actions the state of California could take to regulate carbon emissions that would not infringe upon the business practices of entities outside of California's borders.’

In December, two arguments were put forward which challenged the constitutionality of the LCFS. These were:

•             That the LCFS discriminates against interstate commerce in ethanol because it assigns worse carbon-intensity scores to Midwest ethanol than to California ethanol

•             That the LCFS attempts to regulate conduct occurring wholly outside the borders of the state of California and is thus impermissibly extraterritorial.

The Court says that CARB cannot hold responsibility, both political and legal, for commercial incidents happening outside of the state of California.

Australian company Algae.Tec has raised AUS$5 million (€4 million) through Patersons Securities and the money will be used to fast-track the business’ commercial plans.

Recently Biofuels International reported that Algae.Tec formed a joint venture with Chinese company Shandong Kerui to build a 250-module algae biofuels facility in China.

Algae.Tec executive chairman, Roger Stroud, says the company was happy with the fundraising round: ‘This again demonstrates that sophisticated investors are aligned with the need for alternative transport fuel technologies such as the Algae.Tec enclosed algae to biofuels solution.

 The market is also responding to the recent milestones and commercial deal announcements the company has signed with major companies in China, Sri Lanka and Europe.’

 The technology used by Algae.Tec allows for algae to be grown at a high rate and uses a special harvesting technique called the McConchie-Stroud system.

Australian company Algae.Tec has raised AUS$5 million (€4 million) through Patersons Securities and the money will be used to fast-track the business’ commercial plans.

Recently Biofuels International reported that Algae.Tec formed a joint venture with Chinese company Shandong Kerui to build a 250-module algae biofuels facility in China.

Algae.Tec executive chairman, Roger Stroud, says the company was happy with the fundraising round: ‘This again demonstrates that sophisticated investors are aligned with the need for alternative transport fuel technologies such as the Algae.Tec enclosed algae to biofuels solution.

 The market is also responding to the recent milestones and commercial deal announcements the company has signed with major companies in China, Sri Lanka and Europe.’

 The technology used by Algae.Tec allows for algae to be grown at a high rate and uses a special harvesting technique called the McConchie-Stroud system.

The US Department of Agriculture (USDA) has formed a $25 million (€19 million) partnership with Fiberight, money which will be put towards building a new biofuels plant in Blairstown, Iowa.

The facility will convert waste into biofuels, producing six million gallons a year when the plant comes online in the first half of next year.

Fiberight is spending $20 million into the plant, combined with the $25 million from the federal government. In 2010 the development also received $2.5 million from the Iowa Power Fund.

About 200 tonnes of MSW will be processed per day on site and there will also be complementary low-lignin feedstocks feeding the plant such as paper mill residues from local paper mills.

The facility will be 55,000 square feet and will produce cellulosic ethanol from seed municipal solid and seed corn waste.

Craig Stuart-Paul, CEO of Fiberight, tells Biofuels International: ‘This plant will be close to commercial scale. But we hope to work with the community to add other complimentary feedstocks to expand the capacity. The site itself is sufficiently large to do so.’

The company will source its waste from Benton County to begin with, a community located nearby. ‘We have identified sufficient supply, the issue with MSW is that you cannot commence taking it in earnest until the plant is completely operational and de-bugged given that the sources of waste need to ensure that disposal of solid waste must continue without interruption,’ says Stuart-Paul.

The plant is expected to create between 12 and 40 jobs, helping to deliver the fuel to the surrounding regions.

We are working with Tenaska for our off-take, but we hope to supply some E-85 pumps in the local area,’ says Stuart-Paul.

The loan being provided is part of the USDA’s Biorefinery Assistance Program, which was approved under the 2008 farm bill.

Novozymes is a partner in the project and says it will supply the enzymes to help convert household and office waste into biofuels.

‘We truly believe that 2012 is the year for take-off in this industry. Steel is going into the ground, more Americans are going to work to make biofuels and we anticipate seeing significant volumes of biofuels as a result,’ says Craig Stuart-Paul, CEO of Fiberight.

Fiberight is also building a smaller facility in Lawrenceville, Virginia this year.

The US Department of Agriculture (USDA) has formed a $25 million (€19 million) partnership with Fiberight, money which will be put towards building a new biofuels plant in Blairstown, Iowa.

The facility will convert waste into biofuels, producing six million gallons a year when the plant comes online in the first half of next year.

Fiberight is spending $20 million into the plant, combined with the $25 million from the federal government. In 2010 the development also received $2.5 million from the Iowa Power Fund.

About 200 tonnes of MSW will be processed per day on site and there will also be complementary low-lignin feedstocks feeding the plant such as paper mill residues from local paper mills.

The facility will be 55,000 square feet and will produce cellulosic ethanol from seed municipal solid and seed corn waste.

Craig Stuart-Paul, CEO of Fiberight, tells Biofuels International: ‘This plant will be close to commercial scale. But we hope to work with the community to add other complimentary feedstocks to expand the capacity. The site itself is sufficiently large to do so.’

The company will source its waste from Benton County to begin with, a community located nearby. ‘We have identified sufficient supply, the issue with MSW is that you cannot commence taking it in earnest until the plant is completely operational and de-bugged given that the sources of waste need to ensure that disposal of solid waste must continue without interruption,’ says Stuart-Paul.

The plant is expected to create between 12 and 40 jobs, helping to deliver the fuel to the surrounding regions.

We are working with Tenaska for our off-take, but we hope to supply some E-85 pumps in the local area,’ says Stuart-Paul.

The loan being provided is part of the USDA’s Biorefinery Assistance Program, which was approved under the 2008 farm bill.

Novozymes is a partner in the project and says it will supply the enzymes to help convert household and office waste into biofuels.

‘We truly believe that 2012 is the year for take-off in this industry. Steel is going into the ground, more Americans are going to work to make biofuels and we anticipate seeing significant volumes of biofuels as a result,’ says Craig Stuart-Paul, CEO of Fiberight.

Fiberight is also building a smaller facility in Lawrenceville, Virginia this year.

Joule Biotechnology has closed a $70 million (€54 million) third round of financing which it says it will use to bring its developments to commercialisation.

This means the total amount raised is more than $110 million and a facility will now be built in Hobbs, New Mexico, which will begin its commissioning process in the middle of this year.

In the facility, Joule’s technology will be tested and the facility will have the land to further expand by 1,000 acres if needed further down the line.

The technology is expected to prove biofuels can be produced even with a lack of feedstock or resource constraints.

‘The expansion of our pilot plant, the issuance of additional patents; now totalling 11, the transition to our new headquarters and labs, and the successful close of our largest funding round to date,’ says Joule’s CEO, William Sims. ‘Our goal since inception has been to enable large-scale, renewable fuel production at unprecedented costs and volumes in the near term, without the obstacles and slow pace of biofuel progress. On the heels of our latest funding round and technology advancement, we're in a very strong position to make it happen as planned.’

The biofuels is developed from solar energy, converting sunlight and waste CO₂ into biofuels without having to rely on feedstocks, processing or natural resources.

Joule Biotechnology has closed a $70 million (€54 million) third round of financing which it says it will use to bring its developments to commercialisation.

This means the total amount raised is more than $110 million and a facility will now be built in Hobbs, New Mexico, which will begin its commissioning process in the middle of this year.

In the facility, Joule’s technology will be tested and the facility will have the land to further expand by 1,000 acres if needed further down the line.

The technology is expected to prove biofuels can be produced even with a lack of feedstock or resource constraints.

‘The expansion of our pilot plant, the issuance of additional patents; now totalling 11, the transition to our new headquarters and labs, and the successful close of our largest funding round to date,’ says Joule’s CEO, William Sims. ‘Our goal since inception has been to enable large-scale, renewable fuel production at unprecedented costs and volumes in the near term, without the obstacles and slow pace of biofuel progress. On the heels of our latest funding round and technology advancement, we're in a very strong position to make it happen as planned.’

The biofuels is developed from solar energy, converting sunlight and waste CO₂ into biofuels without having to rely on feedstocks, processing or natural resources.

Novozymes’ shares fell to the lowest they have been in two months following the announcement that the company’s earnings for the fourth quarter of 2011 were lower than predicted.

The Denmark-based company, which uses enzymes to produce biofuels, says the results could be blamed on the price of raw materials rising and a drop in sales for bioenergy enzymes.

However, net profit did grow by 13% did grow to DKK1.8 million (€242,000) but Novozymes says it expects 2012’s performance to be unpredictable because of instability within the global economy.

Steen Riisgaard, Novozymes’ CEO, says: ‘The uncertainty is expected to continue in 2012 and, although the characteristics of our products, the many different industries we serve, and the way the business operates have made Novozymes’ sales and earnings fairly resilient in previous economic downturns, we currently see scenarios at both the high and low end of the guidance.’
He says that the company is planning to further develop its cellulosic ethanol by building a commercial sized facility this year in Italy, with more facilities in the pipeline.

‘To sum up, although 2012 looks to be another uncertain year with respect to the global economy, it's also set to bring some very exciting developments with the focus remaining on innovation, market presence, and operational excellence,’ Riisgaard adds.

Novozymes’ shares fell to the lowest they have been in two months following the announcement that the company’s earnings for the fourth quarter of 2011 were lower than predicted.

The Denmark-based company, which uses enzymes to produce biofuels, says the results could be blamed on the price of raw materials rising and a drop in sales for bioenergy enzymes.

However, net profit did grow by 13% did grow to DKK1.8 million (€242,000) but Novozymes says it expects 2012’s performance to be unpredictable because of instability within the global economy.

Steen Riisgaard, Novozymes’ CEO, says: ‘The uncertainty is expected to continue in 2012 and, although the characteristics of our products, the many different industries we serve, and the way the business operates have made Novozymes’ sales and earnings fairly resilient in previous economic downturns, we currently see scenarios at both the high and low end of the guidance.’
He says that the company is planning to further develop its cellulosic ethanol by building a commercial sized facility this year in Italy, with more facilities in the pipeline.

‘To sum up, although 2012 looks to be another uncertain year with respect to the global economy, it's also set to bring some very exciting developments with the focus remaining on innovation, market presence, and operational excellence,’ Riisgaard adds.

Green Biologics Limited (GBL), a UK-based industrial biotechnology company has merged with butylfuel, a US-based renewable chemicals and biofuels company.

The new company will operate under the Green Biologics name and continue to be head-quartered in Abingdon, UK with a strong operational presence and commercial focus in the US contributed by butylfuel, which will become Green Biologics. The effective date for the all equity merger is January 1, 2012.

‘This merger creates a truly global leader in biobutanol and represents a transformational deal for both companies,’ says Sean Sutcliffe, CEO of the combined GBL group. ‘We are combining GBL’s acknowledged technology leadership and commercialisation expertise in China, India and Brazil with the scale up, operational process experience, and North American business building capabilities of butylfuel.

Both companies already shared a keen interest in the market in China. In August GBL signed an agreement with Laihe Chemical in China.

Under the terms of the agreement GBL and Laihe will collaborate to improve the economics of Laihe's biobutanol plant by optimising GBLs fermentation technology using sugars derived using Laihe cellulosic pre-treatment process.

The company has now successfully demonstrated on  a pilot plant at Laihe. The commercial facility in China, producing 50,000 tonnes of biobutanol and co-products a year, will be up and running within six months. The company then has plans for two more facilities.

‘China is a particularly interesting market,’ says Sutcliffe. ‘There are existing biobutanol plants built to use corn.  However, it is now not economically  feasible to use corn out there, so producers need a solution that can use cellulosic feedstocks at an affordable price.’

In China, GBL has three projects underway on molasses and corn by-product feedstocks. In India and Brazil, GBL’s focus is molasses, cane and bagasse.

In North America, the focus is on both starch-based and cellulosic feedstocks.

Joel Stone, president, North America and global VP of engineering, formerly CEO of butylfuel adds: ‘This is a near perfect fit of a remarkable industrial biotechnology company in GBL with an experienced bioprocessing and commercial scale-up company in butylfuel.’

‘The synergies of GBL’s microbiological and fermentation capabilities and global presence combined with our commercial and operational skills in building and operating large scale fermentation facilities in North America creates a compelling business model, in particular for the commercialisation of biobutanol in North America, the world’s leading advanced renewable chemicals and biofuels market.’

The merged GBL will be a globally managed company focused on the production of C4 chemicals and advanced fuels from renewable feedstocks, primarily from waste and by-product agricultural sources.

GBL has an extensive portfolio of proprietary and engineered Clostridia strains used as biocatalysts to process a wide range of starch, sugar and cellulosic feedstocks.

GBL deploys its technology using a ‘capital light’ business model to leverage existing production assets to reduce operating and capital expenses, and to enable rapid deployment and commercialisation.

Biofuels remains a strategic driver for GBL, with the company’s immediate market focus on butanol and C4 chemicals.

For the near term GBL will focus on producing biobutanol to replace petroleum-based butanol in the chemical industry. Butanol and its derivatives are key intermediates in the production of paints, coatings, adhesives and inks, an $85 billion (€66 billion) global market. Butyl acrylates are also used in the $700 billion global plastics and polymers market.

 ‘By getting biobutanol into the market place it helps drive down costs of production,’ Sutcliffe explains.

 Within 3-5 year GBL plans to turn its attention towards the use of biobutanol as a renewable transport fuel.

 ‘We plan to offer bolt-on plants to ethanol producers, so they don’t have to shut down production,’ Sutcliffe says. ‘We should start seeing our first customers signing up during 2012.’

 The blend stock opportunity for butanol exceeds $80 billion per year. Butanol also has the potential to be upgraded to aviation jet fuel, a $50 billion market driven by increasing global interest on reduction of carbon emissions.

Green Biologics Limited (GBL), a UK-based industrial biotechnology company has merged with butylfuel, a US-based renewable chemicals and biofuels company.

The new company will operate under the Green Biologics name and continue to be head-quartered in Abingdon, UK with a strong operational presence and commercial focus in the US contributed by butylfuel, which will become Green Biologics. The effective date for the all equity merger is January 1, 2012.

‘This merger creates a truly global leader in biobutanol and represents a transformational deal for both companies,’ says Sean Sutcliffe, CEO of the combined GBL group. ‘We are combining GBL’s acknowledged technology leadership and commercialisation expertise in China, India and Brazil with the scale up, operational process experience, and North American business building capabilities of butylfuel.

Both companies already shared a keen interest in the market in China. In August GBL signed an agreement with Laihe Chemical in China.

Under the terms of the agreement GBL and Laihe will collaborate to improve the economics of Laihe's biobutanol plant by optimising GBLs fermentation technology using sugars derived using Laihe cellulosic pre-treatment process.

The company has now successfully demonstrated on  a pilot plant at Laihe. The commercial facility in China, producing 50,000 tonnes of biobutanol and co-products a year, will be up and running within six months. The company then has plans for two more facilities.

‘China is a particularly interesting market,’ says Sutcliffe. ‘There are existing biobutanol plants built to use corn.  However, it is now not economically  feasible to use corn out there, so producers need a solution that can use cellulosic feedstocks at an affordable price.’

In China, GBL has three projects underway on molasses and corn by-product feedstocks. In India and Brazil, GBL’s focus is molasses, cane and bagasse.

In North America, the focus is on both starch-based and cellulosic feedstocks.

Joel Stone, president, North America and global VP of engineering, formerly CEO of butylfuel adds: ‘This is a near perfect fit of a remarkable industrial biotechnology company in GBL with an experienced bioprocessing and commercial scale-up company in butylfuel.’

‘The synergies of GBL’s microbiological and fermentation capabilities and global presence combined with our commercial and operational skills in building and operating large scale fermentation facilities in North America creates a compelling business model, in particular for the commercialisation of biobutanol in North America, the world’s leading advanced renewable chemicals and biofuels market.’

The merged GBL will be a globally managed company focused on the production of C4 chemicals and advanced fuels from renewable feedstocks, primarily from waste and by-product agricultural sources.

GBL has an extensive portfolio of proprietary and engineered Clostridia strains used as biocatalysts to process a wide range of starch, sugar and cellulosic feedstocks.

GBL deploys its technology using a ‘capital light’ business model to leverage existing production assets to reduce operating and capital expenses, and to enable rapid deployment and commercialisation.

Biofuels remains a strategic driver for GBL, with the company’s immediate market focus on butanol and C4 chemicals.

For the near term GBL will focus on producing biobutanol to replace petroleum-based butanol in the chemical industry. Butanol and its derivatives are key intermediates in the production of paints, coatings, adhesives and inks, an $85 billion (€66 billion) global market. Butyl acrylates are also used in the $700 billion global plastics and polymers market.

 ‘By getting biobutanol into the market place it helps drive down costs of production,’ Sutcliffe explains.

 Within 3-5 year GBL plans to turn its attention towards the use of biobutanol as a renewable transport fuel.

 ‘We plan to offer bolt-on plants to ethanol producers, so they don’t have to shut down production,’ Sutcliffe says. ‘We should start seeing our first customers signing up during 2012.’

 The blend stock opportunity for butanol exceeds $80 billion per year. Butanol also has the potential to be upgraded to aviation jet fuel, a $50 billion market driven by increasing global interest on reduction of carbon emissions.

Biodiesel production in Europe dropped last year and illegal imports from countries such as Argentina and Malaysia are being blamed.

Biodiesel production has fallen for the first time in Europe, even though consumption figures have remained stagnant. Although 2010 showed that the production of biodiesel had risen by 5.5% when compared to the previous year, latest figures show that in 2011 production fell.

Issues such as imports from Argentina, the US and Indonesia flooding the market; the debate over indirect land use change (ILUC); and member states not being clear on double counting measures have been attributed to the decline.

‘In 2010, 9.5 million tonnes of biodiesel was produced and although we’re not yet sure of the exact number expected for the 2011 production figures, we expect them to be lower,’ says Raffaello Garofalo, Secretary General of the European Biodiesel Board (EBB). ‘The new regulations are creating some problems for production for the first time in 12 years.’

Read this article in full in the upcoming issue of Biofuels International magazine

Biodiesel production in Europe dropped last year and illegal imports from countries such as Argentina and Malaysia are being blamed.

Biodiesel production has fallen for the first time in Europe, even though consumption figures have remained stagnant. Although 2010 showed that the production of biodiesel had risen by 5.5% when compared to the previous year, latest figures show that in 2011 production fell.

Issues such as imports from Argentina, the US and Indonesia flooding the market; the debate over indirect land use change (ILUC); and member states not being clear on double counting measures have been attributed to the decline.

‘In 2010, 9.5 million tonnes of biodiesel was produced and although we’re not yet sure of the exact number expected for the 2011 production figures, we expect them to be lower,’ says Raffaello Garofalo, Secretary General of the European Biodiesel Board (EBB). ‘The new regulations are creating some problems for production for the first time in 12 years.’

Read this article in full in the upcoming issue of Biofuels International magazine

Renewable Energy Group (REG) has released 7.2 million shares in an initial public offering to the public for $10 (€7.80) a share.

The shares are to trade on the Nasdaq Global Market from today, under the symbol REGI.

Nearly 7 million of the shares will be offered by REG and the remaining 343,000 shares are being sold by stockholders.

Underwriters have also been granted 30 days in which they can purchase up to 1.08 million shares of common stock to cover any over-allotments they may have.

UBS Securities and Piper Jaffray & Co are acting as joint book-running managers for the offering. Stifel, Nicolaus & Co and Canaccord Genuity are acting as co-managers.

REG is based in North America and is a biodiesel manufacturer and marketer that focuses on converting natural fats, oil and grease into advanced biofuels.

Renewable Energy Group (REG) has released 7.2 million shares in an initial public offering to the public for $10 (€7.80) a share.

The shares are to trade on the Nasdaq Global Market from today, under the symbol REGI.

Nearly 7 million of the shares will be offered by REG and the remaining 343,000 shares are being sold by stockholders.

Underwriters have also been granted 30 days in which they can purchase up to 1.08 million shares of common stock to cover any over-allotments they may have.

UBS Securities and Piper Jaffray & Co are acting as joint book-running managers for the offering. Stifel, Nicolaus & Co and Canaccord Genuity are acting as co-managers.

REG is based in North America and is a biodiesel manufacturer and marketer that focuses on converting natural fats, oil and grease into advanced biofuels.

Cool Planet BioFuels has been granted approval from the California Air Resources Board to test its negative carbon petrol.

The technology converts biomass, including grass and woodchips, into biodiesel. Through the process, a byproduct is created, which can be used as a fertiliser.

The first part of the testing will involve blending of the negative carbon fuel with E10 petrol to try and hit the target of a 10% reduction in carbon emissions in California by 2020.

Over the next couple of months, the technology will be tested with commercial companies before it is made available for public consumption.

The first batch of fuel will be derived from corn that will be sourced from the mid-west of the US.

Dean Simeroth, former chief of the CARB branch responsible for the development of California's Low Carbon Fuel Standard, says: ‘Cool Planet's cellulosic based renewable petrol is the first such technology to be granted CARB approval for fleet testing. Cool Planet's test blend is designed to address California's 2020 Low Carbon Fuel Standard which mandates a 10% reduction in carbon intensity versus today's petrol.’

BP Ventures, Google Ventures and several other investors, including Energy Technology Ventures, NRG Energy and ConocoPhillip have all invested in Cool Planet BioFuels, with BP the latest investor.

Cool Planet aims to produce more than 1 million gallons of 2020 low carbon petrol this year, increasing its production to 1 billion gallons by 2015.

Cool Planet BioFuels has been granted approval from the California Air Resources Board to test its negative carbon petrol.

The technology converts biomass, including grass and woodchips, into biodiesel. Through the process, a byproduct is created, which can be used as a fertiliser.

The first part of the testing will involve blending of the negative carbon fuel with E10 petrol to try and hit the target of a 10% reduction in carbon emissions in California by 2020.

Over the next couple of months, the technology will be tested with commercial companies before it is made available for public consumption.

The first batch of fuel will be derived from corn that will be sourced from the mid-west of the US.

Dean Simeroth, former chief of the CARB branch responsible for the development of California's Low Carbon Fuel Standard, says: ‘Cool Planet's cellulosic based renewable petrol is the first such technology to be granted CARB approval for fleet testing. Cool Planet's test blend is designed to address California's 2020 Low Carbon Fuel Standard which mandates a 10% reduction in carbon intensity versus today's petrol.’

BP Ventures, Google Ventures and several other investors, including Energy Technology Ventures, NRG Energy and ConocoPhillip have all invested in Cool Planet BioFuels, with BP the latest investor.

Cool Planet aims to produce more than 1 million gallons of 2020 low carbon petrol this year, increasing its production to 1 billion gallons by 2015.

Australian company Algae.Tec has signed a 50/50 joint venture (JV) with Chinese company Shandong Kerui.

 Working together, the companies will build a 250-module algae biofuels facility in China, in which both companies will pay half to cover costs.

The module system at the facility will be enclosed and the way the algae will be cultivated is meant to give it a high yield per acre, whilst at the same time not using land to produce biofuels’ feedstocks.

The plant is tipped to be the first of its kind in the world, according to Algae.Tec’s executive chairman, Roger Stroud, who says the main focus of the facility will be to use algae to produce biofuels.

 ‘The equally funded facility will be built in Dongying, in Shandong Province, and produce approximately 33 million litres of algae derived transport oil and approximately 33,000 tonnes of biomass per annum at a combined value of over $40million (€31 million), and capture 137,000 tonnes of waste carbon dioxide. And this should be the first of many,’ says Stroud.  

 The JV is part of Algae.Tec’s plans to expand throughout China, looking to corporations and environmental administration authorities to help it to do so. 

‘China is a country truly focused on a “blue skies” policy. The Algae.Tec technology will reduce unwanted emissions and will convert them into locally produced transport fuels which will add to fuel independence,’ adds Stroud. 

‘Algae.Tec is well positioned for massive expansion in the fastest growing economy in the world and will be raising capital shortly to fund this expansion.’

The plant will be built in a region that has the second biggest oil operations in China although Kerui says it has implemented a pollution and carbon programme from now until 2015 to combat emissions.

Once the plant has been built, Algae.Tec will look to build products that have more than 1,000 modules and ‘engage with CO₂ emitters in the greater China region’.

This is not the only region Algae.Tec is expanding into. Last week the company said it would increase its facility in Atlanta, Georgia, by four times, increasing it to a 70,000 square foot facility to use for new commercial projects.

Australian company Algae.Tec has signed a 50/50 joint venture (JV) with Chinese company Shandong Kerui.

 Working together, the companies will build a 250-module algae biofuels facility in China, in which both companies will pay half to cover costs.

The module system at the facility will be enclosed and the way the algae will be cultivated is meant to give it a high yield per acre, whilst at the same time not using land to produce biofuels’ feedstocks.

The plant is tipped to be the first of its kind in the world, according to Algae.Tec’s executive chairman, Roger Stroud, who says the main focus of the facility will be to use algae to produce biofuels.

 ‘The equally funded facility will be built in Dongying, in Shandong Province, and produce approximately 33 million litres of algae derived transport oil and approximately 33,000 tonnes of biomass per annum at a combined value of over $40million (€31 million), and capture 137,000 tonnes of waste carbon dioxide. And this should be the first of many,’ says Stroud.  

 The JV is part of Algae.Tec’s plans to expand throughout China, looking to corporations and environmental administration authorities to help it to do so. 

‘China is a country truly focused on a “blue skies” policy. The Algae.Tec technology will reduce unwanted emissions and will convert them into locally produced transport fuels which will add to fuel independence,’ adds Stroud. 

‘Algae.Tec is well positioned for massive expansion in the fastest growing economy in the world and will be raising capital shortly to fund this expansion.’

The plant will be built in a region that has the second biggest oil operations in China although Kerui says it has implemented a pollution and carbon programme from now until 2015 to combat emissions.

Once the plant has been built, Algae.Tec will look to build products that have more than 1,000 modules and ‘engage with CO₂ emitters in the greater China region’.

This is not the only region Algae.Tec is expanding into. Last week the company said it would increase its facility in Atlanta, Georgia, by four times, increasing it to a 70,000 square foot facility to use for new commercial projects.

BlackGold Biofuels and SLM Facility Solutions Nationwide have joined forces in the US to turn grease trap waste, derived from restaurants, into biofuels.

The process will cost the hospitality companies no extra money to deliver the grease trap waste to the facilities, and then BlackGold Biofuels will extract and recycle the grease, turning it into biodiesel.

'Grease trap waste is the greasy wastewater that goes down the kitchen drain during dishwashing and food preparation. It is typically collected in an underground grease trap or grease interceptor and then access via pumping truck via a manhole,' explains Emily Landsburg, CEO of BlackGold Biofuel, to Biofuels International.

SLM has links to the hospitality industry, which it will use to consolidate the grease trapping process and jetting services for commercial kitchens.

At the moment in the US, grease trap waste is often shipped to landfill or disposed of on fields. Although it could be used for heavy industrial fuel, the Environmental Protection Agency (EPA) limits the amount of fuel sulphur that can be released into the atmosphere, so this process is not readily used.

BlackGold’s chemical process meets ASTM and EPA specifications, with about 80% of the energy content from the waste being recycled.

Currently SLM has more than 15,000 clients around the US which it will direct to BlackGold recycling facilities that are close enough to their locations to make the journeys cost-effective.

BlackGold is also building some more recycling centres around the southeast and mid-Atlantic regions of the US which will lower the cost of freight.

Landsburg says: ‘In partnership with SLM, we have identified both the most cost effective and best use for wastewater materials, eliminating confusion and headaches for kitchens and waste-haulers.’

BlackGold Biofuels and SLM Facility Solutions Nationwide have joined forces in the US to turn grease trap waste, derived from restaurants, into biofuels.

The process will cost the hospitality companies no extra money to deliver the grease trap waste to the facilities, and then BlackGold Biofuels will extract and recycle the grease, turning it into biodiesel.

'Grease trap waste is the greasy wastewater that goes down the kitchen drain during dishwashing and food preparation. It is typically collected in an underground grease trap or grease interceptor and then access via pumping truck via a manhole,' explains Emily Landsburg, CEO of BlackGold Biofuel, to Biofuels International.

SLM has links to the hospitality industry, which it will use to consolidate the grease trapping process and jetting services for commercial kitchens.

At the moment in the US, grease trap waste is often shipped to landfill or disposed of on fields. Although it could be used for heavy industrial fuel, the Environmental Protection Agency (EPA) limits the amount of fuel sulphur that can be released into the atmosphere, so this process is not readily used.

BlackGold’s chemical process meets ASTM and EPA specifications, with about 80% of the energy content from the waste being recycled.

Currently SLM has more than 15,000 clients around the US which it will direct to BlackGold recycling facilities that are close enough to their locations to make the journeys cost-effective.

BlackGold is also building some more recycling centres around the southeast and mid-Atlantic regions of the US which will lower the cost of freight.

Landsburg says: ‘In partnership with SLM, we have identified both the most cost effective and best use for wastewater materials, eliminating confusion and headaches for kitchens and waste-haulers.’

Bioenergy crop company SG Biofuels has closed a $17 million (€13 million) round of fundraising to go towards further developments of its hybrid jatropha seeds which can be used for biodiesel production.

The series B of financing was led by Thomas, McNerney & Partners; and Finistere Ventures and current investors Flint Hills Resources and Life Technologies were also involved.

Using the money, SG Biofuels will broaden its research and development facilities towards global commercialisation.

Jatropha does not compete with food, as it is non-edible, and can be grown on difficult crop cultivating lands. Through the use of molecular breeding and biotechnology, SG Biofuels is attempting to improve the yields of the crops, whilst at the same time reducing input costs. The seed is being improved so it will be able to be grown in a variety of conditions around the world.

The company has signed up customers so that it can develop 250,000 acres to be used for its jatropha crops, including an agreement with JETBIO, Inter-American Development Bank and TAM Airlines.

Of this land, 75,000 acres will be dedicated to growing crops in Brazil to produce bio jet fuel.

‘The funding comes at a time when we’re experiencing significant commercial adoption of our hybrid Jatropha and will be instrumental as we continue to expand our global footprint,’ says Kirk Haney, CEO at SG Biofuels.

The company also recently had two new members join its board of directors - Pratik Shah, partner at Thomas, McNerney, and Jerry Caulder, MD of Finistere Ventures.

Bioenergy crop company SG Biofuels has closed a $17 million (€13 million) round of fundraising to go towards further developments of its hybrid jatropha seeds which can be used for biodiesel production.

The series B of financing was led by Thomas, McNerney & Partners; and Finistere Ventures and current investors Flint Hills Resources and Life Technologies were also involved.

Using the money, SG Biofuels will broaden its research and development facilities towards global commercialisation.

Jatropha does not compete with food, as it is non-edible, and can be grown on difficult crop cultivating lands. Through the use of molecular breeding and biotechnology, SG Biofuels is attempting to improve the yields of the crops, whilst at the same time reducing input costs. The seed is being improved so it will be able to be grown in a variety of conditions around the world.

The company has signed up customers so that it can develop 250,000 acres to be used for its jatropha crops, including an agreement with JETBIO, Inter-American Development Bank and TAM Airlines.

Of this land, 75,000 acres will be dedicated to growing crops in Brazil to produce bio jet fuel.

‘The funding comes at a time when we’re experiencing significant commercial adoption of our hybrid Jatropha and will be instrumental as we continue to expand our global footprint,’ says Kirk Haney, CEO at SG Biofuels.

The company also recently had two new members join its board of directors - Pratik Shah, partner at Thomas, McNerney, and Jerry Caulder, MD of Finistere Ventures.

Range Fuels has sold its cellulosic ethanol plant to New Zealand biofuels company LanzaTech after the company went into the red this month.

In an auction, LanzaTech purchased the ethanol plant located in Soperton, Georgia, US, for $5.1 million (€4 million), as part of a liquidation process that was approved by the government.

LanzaTech, that has received funding from Khosla Ventures, says it will produce biochemicals at the plant and the facility itself has the capacity to produce 4 million gallons of cellulosic ethanol a year.

In the past, Range Fuels received grants from the US Department of Agriculture (USDA) to produce cellulosic methanol, before turning to ethanol. The plant ran on woodchips, using a thermochemical conversion process to turn the feedstock into the fuel.

Through the purchase, LanzaTech was able to collect some of the $38 million loan, part of which the USDA had awarded the company.

LanzaTaech says it might keep some of the technology in the plant, such as the gasifier, although its main technology will be different – using proprietary microbes to turn the gas into ethanol. As a byproduct, the process produces butanediol and both of these products can be used for jet fuel.

The plant will be LanzaTech’s first production facility, although it is currently building a demonstration plant in Shanghai using waste gases produced from a steel mill and turning this into biofuels.

Range Fuels has sold its cellulosic ethanol plant to New Zealand biofuels company LanzaTech after the company went into the red this month.

In an auction, LanzaTech purchased the ethanol plant located in Soperton, Georgia, US, for $5.1 million (€4 million), as part of a liquidation process that was approved by the government.

LanzaTech, that has received funding from Khosla Ventures, says it will produce biochemicals at the plant and the facility itself has the capacity to produce 4 million gallons of cellulosic ethanol a year.

In the past, Range Fuels received grants from the US Department of Agriculture (USDA) to produce cellulosic methanol, before turning to ethanol. The plant ran on woodchips, using a thermochemical conversion process to turn the feedstock into the fuel.

Through the purchase, LanzaTech was able to collect some of the $38 million loan, part of which the USDA had awarded the company.

LanzaTaech says it might keep some of the technology in the plant, such as the gasifier, although its main technology will be different – using proprietary microbes to turn the gas into ethanol. As a byproduct, the process produces butanediol and both of these products can be used for jet fuel.

The plant will be LanzaTech’s first production facility, although it is currently building a demonstration plant in Shanghai using waste gases produced from a steel mill and turning this into biofuels.

The Renewable Fuels Association (RFA) says the ethanol exports for last year could have been more than 1.1 billion gallons, thanks to a new monthly record set in November.

More than 150 million gallons was exported in that month, according to government figures, going mainly to Brazil. The fuel was also exported to Canada, Mexico and the Netherlands were the other main export destinations.

From November 2010 to November 2011, more than 1 billion gallons was exported and the total for 2011 was due to hit 1.11 billion gallons. However, these exports are the ones that did not qualify for an ethanol blend tax credit because the ethanol was not mixed with petrol before being exported.

‘Exports have become an important part of the business model for American ethanol producers,’ says Geoff Cooper, VP of research and analysis at the RFA. ‘American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe.  While the preference for American producers would be to use more ethanol domestically through use of higher ethanol blends like E15, E30 and E85, overseas markets will remain a viable and important part of America’s ethanol industry.’

Last month, Cooper said that US policies had ‘perversely incentivised’ the importation of ethanol from Brazil and he estimates that this will continue throughout this year.

The Renewable Fuels Association (RFA) says the ethanol exports for last year could have been more than 1.1 billion gallons, thanks to a new monthly record set in November.

More than 150 million gallons was exported in that month, according to government figures, going mainly to Brazil. The fuel was also exported to Canada, Mexico and the Netherlands were the other main export destinations.

From November 2010 to November 2011, more than 1 billion gallons was exported and the total for 2011 was due to hit 1.11 billion gallons. However, these exports are the ones that did not qualify for an ethanol blend tax credit because the ethanol was not mixed with petrol before being exported.

‘Exports have become an important part of the business model for American ethanol producers,’ says Geoff Cooper, VP of research and analysis at the RFA. ‘American ethanol producers are the lowest cost provider of motor fuel today and have ample supplies available to help meet ethanol demand around the globe.  While the preference for American producers would be to use more ethanol domestically through use of higher ethanol blends like E15, E30 and E85, overseas markets will remain a viable and important part of America’s ethanol industry.’

Last month, Cooper said that US policies had ‘perversely incentivised’ the importation of ethanol from Brazil and he estimates that this will continue throughout this year.

Brazil says it has had the biggest grain harvest in its history, of nearly 160 million tonnes in 2011, and has forecasted a further rise for 2012.

The cereal, pulse and oilseed harvest beat 2010’s harvest by more than 10 million tonnes, probably because the land for harvest has grown nearly 5% in size to 48.7 million hectares.

This year it is predicted Brazil will harvest 160.3 million tonnes, about 0.3% more than last year’s harvest.

The regional breakdown of cereal, pulse and oilseed production in 2011 was as follows:

South: 67.6 million tons (up 5.3% year-on-year)

Central West: 56.0 million tons (up 6.7% year-on-year)

Southeast: 17.2 million tons (up 0.6% year-on-year)

Northeast: 14.7 million tons (up 25.1% year-on-year)

North: 4.3 million tons (up 7.6% year-on-year)

Tthe state of Paraná led national grain production, with a 19.7% share; followed by Mato Grosso (19.5% share) and Rio Grande do Sul (18.5% share).

However, nine of the 25 crops recorded a year-on-year decline in production, including: the second harvest of peanuts (-39.8%); oats in grain (-7.4%); coffee beans (-7.1%); sugarcane (-11.7%); onions (-9.8%); the second harvest of beans in grain (-7.4%);the third harvest of beans in grain (-8.2%); the second harvest of corn grain (-4.6%); and wheat grain (-6.5%).

Brazil says it has had the biggest grain harvest in its history, of nearly 160 million tonnes in 2011, and has forecasted a further rise for 2012.

The cereal, pulse and oilseed harvest beat 2010’s harvest by more than 10 million tonnes, probably because the land for harvest has grown nearly 5% in size to 48.7 million hectares.

This year it is predicted Brazil will harvest 160.3 million tonnes, about 0.3% more than last year’s harvest.

The regional breakdown of cereal, pulse and oilseed production in 2011 was as follows:

South: 67.6 million tons (up 5.3% year-on-year)

Central West: 56.0 million tons (up 6.7% year-on-year)

Southeast: 17.2 million tons (up 0.6% year-on-year)

Northeast: 14.7 million tons (up 25.1% year-on-year)

North: 4.3 million tons (up 7.6% year-on-year)

Tthe state of Paraná led national grain production, with a 19.7% share; followed by Mato Grosso (19.5% share) and Rio Grande do Sul (18.5% share).

However, nine of the 25 crops recorded a year-on-year decline in production, including: the second harvest of peanuts (-39.8%); oats in grain (-7.4%); coffee beans (-7.1%); sugarcane (-11.7%); onions (-9.8%); the second harvest of beans in grain (-7.4%);the third harvest of beans in grain (-8.2%); the second harvest of corn grain (-4.6%); and wheat grain (-6.5%).

A study carried out by San Diego Association of Governments (SANDAG) says the algal biofuels industry employed 466 workers in the San Diego region last year, providing more than $41 million (€32 million) in payroll and nearly $81 million in economic activity.

Adding to this, the industry is also expected to generate about $12.5 million in payroll and about $33 million in additional economic activity within other companies. These companies include those that are working in the goods and services industry which deal with algal biofuels companies.

For employment relating to jobs supporting research into the algal biofuel sector, just under 220 jobs are being provided in San Diego.

Beth Jarosz, senior economic analyst from SANDAG, says in a letter addressed to Stephen Mayfield, director of San Diego Center for Algae Biotechnology: ‘Future production of biofuel from algae has the potential to produce a sustainable and easily produced fuel source for the nation. This may result in advantages such as a cleaner environment, lower fuel costs, and other benefits. Those benefits are in addition to, not included in, the economic impact analysis.’

A summary of algal biofuel research’s impacts are as follows:

A study carried out by San Diego Association of Governments (SANDAG) says the algal biofuels industry employed 466 workers in the San Diego region last year, providing more than $41 million (€32 million) in payroll and nearly $81 million in economic activity.

Adding to this, the industry is also expected to generate about $12.5 million in payroll and about $33 million in additional economic activity within other companies. These companies include those that are working in the goods and services industry which deal with algal biofuels companies.

For employment relating to jobs supporting research into the algal biofuel sector, just under 220 jobs are being provided in San Diego.

Beth Jarosz, senior economic analyst from SANDAG, says in a letter addressed to Stephen Mayfield, director of San Diego Center for Algae Biotechnology: ‘Future production of biofuel from algae has the potential to produce a sustainable and easily produced fuel source for the nation. This may result in advantages such as a cleaner environment, lower fuel costs, and other benefits. Those benefits are in addition to, not included in, the economic impact analysis.’

A summary of algal biofuel research’s impacts are as follows:

Lufthansa says it has finished its six month trial with biosynthetic fuel, during which time more than 1,000 biofuel flights were successfully flown between Hamburg and Frankfurt.

However, the airline is ending its trials because it is unable to find reliable suppliers for its aviation biofuels.

‘As a next step, we will focus on the suitability, availability, sustainability and certification of raw materials. But first we must tap into this market. However, Lufthansa will only continue the practical trial if we are able to secure the volume of sustainable, certified raw materials required in order to maintain routine operations,’ project manager of the airline, Joachim Buse, says.

Over a period of six months, nearly 1,500 tonnes of CO₂ emissions were saved and just over 1,500 tonnes of biokerosene mix was consumed. Fuel consumption was able to be reduced by more than 1% by using this new fuel because the energy density of the biofuel is higher than conventional fuel.

‘Our burnFAIR project went off smoothly and to our fullest satisfaction. As expected, biofuel proved its worth in daily flight operations,’ says Joachim Buse, VP of aviation biofuel at Lufthansa.

The airline plans to fly its first transatlantic flight to the US tomorrow, which will carry about 40 tonnes of the biosynthetic fuel mix, flying from Frankfurt to Washington.

However, the airline warns that more needs to be done to meet emissions targets and that other companies should take note of their ambitious targets, as according the IATA’s plans airlines need to reduce their net CO₂ emissions by 50% by 2050.

‘If we want to protect our climate and thus our future in a sustainable manner, we need innovative ideas and technologies and an environmentally friendly alternative to fossil fuels – particularly in view of the growing demand for mobility worldwide,’ says Christoph Franz, chairman of Lufthansa.

Lufthansa says it has finished its six month trial with biosynthetic fuel, during which time more than 1,000 biofuel flights were successfully flown between Hamburg and Frankfurt.

However, the airline is ending its trials because it is unable to find reliable suppliers for its aviation biofuels.

‘As a next step, we will focus on the suitability, availability, sustainability and certification of raw materials. But first we must tap into this market. However, Lufthansa will only continue the practical trial if we are able to secure the volume of sustainable, certified raw materials required in order to maintain routine operations,’ project manager of the airline, Joachim Buse, says.

Over a period of six months, nearly 1,500 tonnes of CO₂ emissions were saved and just over 1,500 tonnes of biokerosene mix was consumed. Fuel consumption was able to be reduced by more than 1% by using this new fuel because the energy density of the biofuel is higher than conventional fuel.

‘Our burnFAIR project went off smoothly and to our fullest satisfaction. As expected, biofuel proved its worth in daily flight operations,’ says Joachim Buse, VP of aviation biofuel at Lufthansa.

The airline plans to fly its first transatlantic flight to the US tomorrow, which will carry about 40 tonnes of the biosynthetic fuel mix, flying from Frankfurt to Washington.

However, the airline warns that more needs to be done to meet emissions targets and that other companies should take note of their ambitious targets, as according the IATA’s plans airlines need to reduce their net CO₂ emissions by 50% by 2050.

‘If we want to protect our climate and thus our future in a sustainable manner, we need innovative ideas and technologies and an environmentally friendly alternative to fossil fuels – particularly in view of the growing demand for mobility worldwide,’ says Christoph Franz, chairman of Lufthansa.

Boeing and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) have joined forces to examine the potential for aviation biofuels’ feedstock growth in the north of the country.

The partnership comes following the release of the Flight Path to Sustainable Aviation roadmap, which recommends research into the area.

‘The roadmap made a compelling case for the development of a new Australian bio-based aviation fuel industry generating some 12,000 clean energy jobs over the next 20 years, especially in regional areas, cutting greenhouse emissions and reducing Australia’s reliance on aviation fuels imports by $2 billion (€1.62 billion) per annum,’ says Michael Edwards, general manager of Boeing Research and Technology in Australia.

CSIRO’s Deborah O’Connell will be leading the project, as she is an expert in bioenergy and sustainability. She says: ‘The Sustainable Feedstocks for Aviation Fuels programme will identify and trial new fuel sources that are compatible with existing land uses with the ultimate goal of developing commercially-viable feedstock to fuel supply chains this decade.’

Over the coming year, the first phase of the programme will be carried out, assessing new biomass production systems based on feedstocks such as grasses and short rotation trees in combination with grazing or cropping in regional Queensland.

The first phase will also assess fuel conversion technology for turning this biomass into aviation biofuels, and look at what production systems and technologies will integrate best with local infrastructure.

‘Since January 2010, Boeing has entered into sustainable aviation fuel research agreements with airlines, academic institutions and industry partners in Australia, the Middle East, China, Mexico, United States and Brazil,’ says Edwards. ‘Aviation fuels made from biomass have been certified and are being used on commercial and military aircraft, so the challenge now is to find the right way to scale up feedstock production so these new fuels are both environmentally and economically sustainable.’

Boeing and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO) have joined forces to examine the potential for aviation biofuels’ feedstock growth in the north of the country.

The partnership comes following the release of the Flight Path to Sustainable Aviation roadmap, which recommends research into the area.

‘The roadmap made a compelling case for the development of a new Australian bio-based aviation fuel industry generating some 12,000 clean energy jobs over the next 20 years, especially in regional areas, cutting greenhouse emissions and reducing Australia’s reliance on aviation fuels imports by $2 billion (€1.62 billion) per annum,’ says Michael Edwards, general manager of Boeing Research and Technology in Australia.

CSIRO’s Deborah O’Connell will be leading the project, as she is an expert in bioenergy and sustainability. She says: ‘The Sustainable Feedstocks for Aviation Fuels programme will identify and trial new fuel sources that are compatible with existing land uses with the ultimate goal of developing commercially-viable feedstock to fuel supply chains this decade.’

Over the coming year, the first phase of the programme will be carried out, assessing new biomass production systems based on feedstocks such as grasses and short rotation trees in combination with grazing or cropping in regional Queensland.

The first phase will also assess fuel conversion technology for turning this biomass into aviation biofuels, and look at what production systems and technologies will integrate best with local infrastructure.

‘Since January 2010, Boeing has entered into sustainable aviation fuel research agreements with airlines, academic institutions and industry partners in Australia, the Middle East, China, Mexico, United States and Brazil,’ says Edwards. ‘Aviation fuels made from biomass have been certified and are being used on commercial and military aircraft, so the challenge now is to find the right way to scale up feedstock production so these new fuels are both environmentally and economically sustainable.’

Bioethanol producer CropEnergies has reported a 22% rise in group revenues to €425.8 million which the company says is because of the higher prices of bioethanol and protein food and animal feed products.

‘Ethanol prices in Europe have risen since 2010, mostly due to higher demand which is fuelled by the growing blending rates and implementation of the EU Renewable Energies Directive in more and more countries in Europe,’ explains COO Lutz Guderjahn told Biofuels International. ‘As for protein food and animal feed products, CropEnergies has managed to realise attractive selling prices for these due to the demand for high quality products in those markets.’

EBITDA also rose by 21% to €66.1 million, compared to €54.6 million made the year before, and operating profit increased by 34% to €42.8 million.

Unsurprisingly, the company reported a rise in net earnings of 37% to €26.4 million and net financial debt was reduced to €155.4 million.

CropEnergies says it hit its highest production on record, 191 million m³ of bioethanol for the third quarter of this financial year, compared to 186 million m³ the year before.

However, in the first half of last year there was a drop in production because of a modified raw material mix and maintenance and optimisation methods.

‘As a matter of fact, although ethanol prices are currently still at a rather high level, they have decreased considerably in Europe,’ says Guderjahn. ‘In addition to the decline of raw material prices, the surge in bioethanol imports from the US has had a negative impact on prices. The phase-out of the blender’s credit and the initiation of anti-dumping and anti-subsidy proceedings regarding imports of bioethanol originating from the US by the European Commission will have a positive impact on prices.’

From the period of March to November 2011, CropEnergies only produced 497,000 m³ of bioethanol.

For this coming year, CropEnergies is predicting a further rise in profit, with revenues hitting between €550 million and €570 million, up from €472.8 the previous year.

It will use this revenue for future expansion and says it is planning to do the following in the near-future:

1. Optimise its existing plants

2. Expand trading activities by establishing a subsidiary in the US

3. Build a new plant.

Bioethanol producer CropEnergies has reported a 22% rise in group revenues to €425.8 million which the company says is because of the higher prices of bioethanol and protein food and animal feed products.

‘Ethanol prices in Europe have risen since 2010, mostly due to higher demand which is fuelled by the growing blending rates and implementation of the EU Renewable Energies Directive in more and more countries in Europe,’ explains COO Lutz Guderjahn told Biofuels International. ‘As for protein food and animal feed products, CropEnergies has managed to realise attractive selling prices for these due to the demand for high quality products in those markets.’

EBITDA also rose by 21% to €66.1 million, compared to €54.6 million made the year before, and operating profit increased by 34% to €42.8 million.

Unsurprisingly, the company reported a rise in net earnings of 37% to €26.4 million and net financial debt was reduced to €155.4 million.

CropEnergies says it hit its highest production on record, 191 million m³ of bioethanol for the third quarter of this financial year, compared to 186 million m³ the year before.

However, in the first half of last year there was a drop in production because of a modified raw material mix and maintenance and optimisation methods.

‘As a matter of fact, although ethanol prices are currently still at a rather high level, they have decreased considerably in Europe,’ says Guderjahn. ‘In addition to the decline of raw material prices, the surge in bioethanol imports from the US has had a negative impact on prices. The phase-out of the blender’s credit and the initiation of anti-dumping and anti-subsidy proceedings regarding imports of bioethanol originating from the US by the European Commission will have a positive impact on prices.’

From the period of March to November 2011, CropEnergies only produced 497,000 m³ of bioethanol.

For this coming year, CropEnergies is predicting a further rise in profit, with revenues hitting between €550 million and €570 million, up from €472.8 the previous year.

It will use this revenue for future expansion and says it is planning to do the following in the near-future:

1. Optimise its existing plants

2. Expand trading activities by establishing a subsidiary in the US

3. Build a new plant.

The Council of Energy Resource Tribes (CERT), a group made up of 57 Indian tribes, has formed a business relationship with renewable jet fuel supplier BioJet International.

The CERT members, who own and manage coal, uranium, oil and gas reserves throughout the US, will work with BioJet to capitalise on supply chain projects relating to feedstock and refining projects.

Mitch Hawkins, CEO of BioJet, says: ‘CERT is working through Tartoosh and BioJet to create project opportunities, raise capital and commercialise innovative biofuels technologies with an eye towards the creation of sustainable economic development within Indian country.’

BioJet last year received $1.2 billion (€940 million) in funding to invest and make strategic acquisitions. CERT manages 56 millions of acres of agricultural land of which BioJet will use about one million acres to grow feedstock, using these funds to do so.

David Lester, CERT executive director, says: ‘This effort will be led for CERT by Robert Martin, former National Ombudsman of the US Environmental Protection Agency in Washington DC, as leader of the RES Alliance with which BioJet is a strategic partner. We are poised for a long transition period wherein biofuels gain large market share not only from fossil fuels but also from ethanol.’

Hawkins adds: ‘We envision the scope of our business relationship broadly with CERT to include at least $1 billion worth of joint projects over a ten year period locating feedstock generation and refining operations to provide biofuels for commercial airlines and ground transportation at key locations throughout the western US.’

CERT and BioJet are expected to finalise a Memorandum of Agreement within the next two months which will define the terms of their participation.

‘BioJet and CERT will work together to develop feedstock resources both on tribal lands and also natural gas resources owned by the tribes.  The parties will also work together on development of biofuel refining facilities on tribal lands.  They will also coordinate on bioenergy related technology development and, in fact, are already doing so on at least one project,’ says Hawkins.

He goes on to explain that the most important aspect of any bioenergy project is the capital required to support it: ‘In this regard, the finance aspects of the relationship are unique in the US.’

He says CERT tribal lands are supported by financial incentives which mean they are exempt in varying degrees from state and local taxation as well as permitting and licensing requirements.
This serves to reduce transactional costs for any funded project and Indian tribes may issue general revenue bonds under the Tribal Tax Status Act and Tribal Economic Development Bonds under the American Recovery and Reinvestment Act, as well as being eligible for federal debt financing.

The Council of Energy Resource Tribes (CERT), a group made up of 57 Indian tribes, has formed a business relationship with renewable jet fuel supplier BioJet International.

The CERT members, who own and manage coal, uranium, oil and gas reserves throughout the US, will work with BioJet to capitalise on supply chain projects relating to feedstock and refining projects.

Mitch Hawkins, CEO of BioJet, says: ‘CERT is working through Tartoosh and BioJet to create project opportunities, raise capital and commercialise innovative biofuels technologies with an eye towards the creation of sustainable economic development within Indian country.’

BioJet last year received $1.2 billion (€940 million) in funding to invest and make strategic acquisitions. CERT manages 56 millions of acres of agricultural land of which BioJet will use about one million acres to grow feedstock, using these funds to do so.

David Lester, CERT executive director, says: ‘This effort will be led for CERT by Robert Martin, former National Ombudsman of the US Environmental Protection Agency in Washington DC, as leader of the RES Alliance with which BioJet is a strategic partner. We are poised for a long transition period wherein biofuels gain large market share not only from fossil fuels but also from ethanol.’

Hawkins adds: ‘We envision the scope of our business relationship broadly with CERT to include at least $1 billion worth of joint projects over a ten year period locating feedstock generation and refining operations to provide biofuels for commercial airlines and ground transportation at key locations throughout the western US.’

CERT and BioJet are expected to finalise a Memorandum of Agreement within the next two months which will define the terms of their participation.

‘BioJet and CERT will work together to develop feedstock resources both on tribal lands and also natural gas resources owned by the tribes.  The parties will also work together on development of biofuel refining facilities on tribal lands.  They will also coordinate on bioenergy related technology development and, in fact, are already doing so on at least one project,’ says Hawkins.

He goes on to explain that the most important aspect of any bioenergy project is the capital required to support it: ‘In this regard, the finance aspects of the relationship are unique in the US.’

He says CERT tribal lands are supported by financial incentives which mean they are exempt in varying degrees from state and local taxation as well as permitting and licensing requirements.
This serves to reduce transactional costs for any funded project and Indian tribes may issue general revenue bonds under the Tribal Tax Status Act and Tribal Economic Development Bonds under the American Recovery and Reinvestment Act, as well as being eligible for federal debt financing.

DuPont and feedstock company NexSteppe have signed an agreement to develop advanced feedstocks for biofuels, biopower and biobased products. In particular, the development will focus on new sweet sorghum and high biomass sorghum hybrids.

DuPont has made an equity investment in the company which it hopes will enable it to breed and commercialise new hybrids within crops in both the US and Brazil.

DuPont says that sorghum is able to be grown in drought conditions, where there is little rainfall and high temperatures. Because it is only grown for a short season, it is also able to be rotated in a crop rotation system.

The sweet variety of the plant can be processed in existing sugar and ethanol mills, being used as a feedstock for the development of biofuels and other biobased products.

High biomass sorghum can also be used for biopower generation and cellulosic biofuels development.

Anna Rath, NexSteppe founder and CEO, says: ‘Sorghum is a crop with significant genetic diversity and great potential that has received relatively little research attention and funding. Combining DuPont’s world-class research and development capabilities with our industry knowledge, experienced team and singular focus, we will be able to rapidly improve the crop to produce feedstocks tailored to the needs of the biofuels, biopower and biobased products industries.’

DuPont and feedstock company NexSteppe have signed an agreement to develop advanced feedstocks for biofuels, biopower and biobased products. In particular, the development will focus on new sweet sorghum and high biomass sorghum hybrids.

DuPont has made an equity investment in the company which it hopes will enable it to breed and commercialise new hybrids within crops in both the US and Brazil.

DuPont says that sorghum is able to be grown in drought conditions, where there is little rainfall and high temperatures. Because it is only grown for a short season, it is also able to be rotated in a crop rotation system.

The sweet variety of the plant can be processed in existing sugar and ethanol mills, being used as a feedstock for the development of biofuels and other biobased products.

High biomass sorghum can also be used for biopower generation and cellulosic biofuels development.

Anna Rath, NexSteppe founder and CEO, says: ‘Sorghum is a crop with significant genetic diversity and great potential that has received relatively little research attention and funding. Combining DuPont’s world-class research and development capabilities with our industry knowledge, experienced team and singular focus, we will be able to rapidly improve the crop to produce feedstocks tailored to the needs of the biofuels, biopower and biobased products industries.’

Springboard Biodiesel and Pinnacle Capital have launched a new programme to install small-scale biodiesel production facilities at both public and private schools and campuses in the US.

The technology will turn used cooking oil from the kitchens on the site into biodiesel that will be used to fuel school vehicles.

‘Because the cost of making biodiesel in our BioPro systems is less than $1.00/gallon, it's a great way for any school system to bring money back into its budget,’ says Springboard Biodiesel CEO Mark Roberts. ‘We have 59 colleges and universities enthusiastically using our equipment to convert used cooking oil into biodiesel. They are saving money, reducing their carbon footprint and, in many cases, incorporating the system into their sustainability curriculums.’

The technology works by adding used cooking oil to other substances including methanol, lye and sulphuric acid. Electricity is also used to produce the biodiesel and about one litre of used cooking oil produces about one litre of biodiesel.

Currently the systems that will be installed on these campuses can be purchased for between $7,000 and $25,000 (€5,500-€20,000). Roberts tells Biofuels International: ‘The system will make up to 9,000 gallons of biodiesel per year, so this saves about $27,000 a year.  Plus for every gallon of biodiesel used in the place of diesel, the institution reduces its CO₂ emission by over 90% and reduces particulate matter by almost 50%.’

Springboard Biodiesel and Pinnacle Capital have launched a new programme to install small-scale biodiesel production facilities at both public and private schools and campuses in the US.

The technology will turn used cooking oil from the kitchens on the site into biodiesel that will be used to fuel school vehicles.

‘Because the cost of making biodiesel in our BioPro systems is less than $1.00/gallon, it's a great way for any school system to bring money back into its budget,’ says Springboard Biodiesel CEO Mark Roberts. ‘We have 59 colleges and universities enthusiastically using our equipment to convert used cooking oil into biodiesel. They are saving money, reducing their carbon footprint and, in many cases, incorporating the system into their sustainability curriculums.’

The technology works by adding used cooking oil to other substances including methanol, lye and sulphuric acid. Electricity is also used to produce the biodiesel and about one litre of used cooking oil produces about one litre of biodiesel.

Currently the systems that will be installed on these campuses can be purchased for between $7,000 and $25,000 (€5,500-€20,000). Roberts tells Biofuels International: ‘The system will make up to 9,000 gallons of biodiesel per year, so this saves about $27,000 a year.  Plus for every gallon of biodiesel used in the place of diesel, the institution reduces its CO₂ emission by over 90% and reduces particulate matter by almost 50%.’

BP Technology Ventures has invested in Cool Planet Biofuels as part of the company’s C financing round, following the likes of General Electric, Google Ventures, ConocoPhillips, NRG and North Bridge Venture Partners, other investor companies.

The money will be used to further develop Cool Planet’s technology which involves producing reduced carbon petrol from grass and woodchips which can be blended with regular petrol for use in cars. The byproduct produced can be used as a soil conditioner.

The company says its fuel and conventional fuel are indistinguishable and the differences can only be picked up through radiocarbon isotope analysis.

The C funding round was closed a year earlier than schedule so that Cool Planet can use the money to build its modular fuel production plants.

Cool Planet aims to build the plants throughout the US so that the biomass can be sourced locally without having to transport it long distances.

The company says it anticipates further companies will invest in its business throughout this year and the most recent funding round was led by Shea Ventures.

Mike Cheiky, Coo lPlanet’s CEO, says: ‘While we have made significant progress over the past couple of years, this new infusion of capital, coupled with the expertise of the Google Ventures team, enables our team to scale even faster.’

BP Technology Ventures has invested in Cool Planet Biofuels as part of the company’s C financing round, following the likes of General Electric, Google Ventures, ConocoPhillips, NRG and North Bridge Venture Partners, other investor companies.

The money will be used to further develop Cool Planet’s technology which involves producing reduced carbon petrol from grass and woodchips which can be blended with regular petrol for use in cars. The byproduct produced can be used as a soil conditioner.

The company says its fuel and conventional fuel are indistinguishable and the differences can only be picked up through radiocarbon isotope analysis.

The C funding round was closed a year earlier than schedule so that Cool Planet can use the money to build its modular fuel production plants.

Cool Planet aims to build the plants throughout the US so that the biomass can be sourced locally without having to transport it long distances.

The company says it anticipates further companies will invest in its business throughout this year and the most recent funding round was led by Shea Ventures.

Mike Cheiky, Coo lPlanet’s CEO, says: ‘While we have made significant progress over the past couple of years, this new infusion of capital, coupled with the expertise of the Google Ventures team, enables our team to scale even faster.’

The Nigerian government has signed a deal with Global Biofuels, a local biofuel producer, to build 15 biofuel plants in the country, costing about N414 billion (€2.02 billion) in total.

The project will create about 120,000 jobs and will power 15 states with 30MW each. A pilot plant will be built in Ekiti, with construction beginning within the next few months and finishing in a year’s time.

The Nigerian minister of trade and investment, Olusegun Aganga, says the project has been researched over a number of years and feasibility and market studies had already been carried out on the proposed developments.

Ethanol will also be produced under the plans, using sweet sorghum as a feedstock, with 14 more plants scheduled to be built in Ondo, Osun, Kwara, Kogi, Benue, Gombe, Bauchi, Zamfara, Kano, Kaduna, Nasarawa and Plateau – if the pilot plant is a success.

Around 70% of the total project will be financed by the Chinese government and the rest of the funds will come from other financial institutions, including the Nigerian Export Import Bank, ECOWAS Bank for Investment and Development, Africa Finance, Fond Gari of Togo and First Bank of Nigeria.

The Nigerian government has signed a deal with Global Biofuels, a local biofuel producer, to build 15 biofuel plants in the country, costing about N414 billion (€2.02 billion) in total.

The project will create about 120,000 jobs and will power 15 states with 30MW each. A pilot plant will be built in Ekiti, with construction beginning within the next few months and finishing in a year’s time.

The Nigerian minister of trade and investment, Olusegun Aganga, says the project has been researched over a number of years and feasibility and market studies had already been carried out on the proposed developments.

Ethanol will also be produced under the plans, using sweet sorghum as a feedstock, with 14 more plants scheduled to be built in Ondo, Osun, Kwara, Kogi, Benue, Gombe, Bauchi, Zamfara, Kano, Kaduna, Nasarawa and Plateau – if the pilot plant is a success.

Around 70% of the total project will be financed by the Chinese government and the rest of the funds will come from other financial institutions, including the Nigerian Export Import Bank, ECOWAS Bank for Investment and Development, Africa Finance, Fond Gari of Togo and First Bank of Nigeria.

The Illinois state government has extended the tax credit for biodiesel for an extra five years, until 2018. Originally the credit was due to run out in 2013, but now biodiesel blends of more than 1% and less than 10% will continue to have tax applied to only 80% of the total cost for a further six years.

The Senate Bill 397 passed the full Illinois Senate by a vote of 44-9 and any biodiesel blend with more than 10% will be eligible for fuel tax exemption as well.

The news was well-received in the industry with the Illinois Soybean Association (ISA) saying that the tax credit, which was originally introduced in 2003, has seen the production of biodiesel in Illinois grow from 20 million gallons to 188 million gallons in 2010.

Matt Hughes, ISA chairman, says: ‘We are very pleased to see Illinois legislators' support for biodiesel, including Representative John Bradley from Marion, who sponsored the bill in the House.  The extension will help maintain Illinois as the nation's leading biodiesel producer. The state tax credit is truly vital to our industry and our farmers.’

The Renewable Energy Group (REG) echoed these views and the group’s CEO Daniel Oh says: ‘Since Illinois’ inception of the B11 blending credits in 2004, more biodiesel has been blended in Illinois annually than in any other state. By extending the biodiesel tax abatement for B11 and higher blends through 2018, the Illinois legislature showcases its commitment to more than 1,500 green collar jobs in the state.’

According to REG, the biodiesel industry was responsible for more than $2.6 billion of Illinois Gross Domestic Product between 2004 and 2010.

The Illinois government will also increase the state’s tax individual deduction level from $2 million (€1.5 million) to $3 million this year and then $4 million next year.

The Illinois state government has extended the tax credit for biodiesel for an extra five years, until 2018. Originally the credit was due to run out in 2013, but now biodiesel blends of more than 1% and less than 10% will continue to have tax applied to only 80% of the total cost for a further six years.

The Senate Bill 397 passed the full Illinois Senate by a vote of 44-9 and any biodiesel blend with more than 10% will be eligible for fuel tax exemption as well.

The news was well-received in the industry with the Illinois Soybean Association (ISA) saying that the tax credit, which was originally introduced in 2003, has seen the production of biodiesel in Illinois grow from 20 million gallons to 188 million gallons in 2010.

Matt Hughes, ISA chairman, says: ‘We are very pleased to see Illinois legislators' support for biodiesel, including Representative John Bradley from Marion, who sponsored the bill in the House.  The extension will help maintain Illinois as the nation's leading biodiesel producer. The state tax credit is truly vital to our industry and our farmers.’

The Renewable Energy Group (REG) echoed these views and the group’s CEO Daniel Oh says: ‘Since Illinois’ inception of the B11 blending credits in 2004, more biodiesel has been blended in Illinois annually than in any other state. By extending the biodiesel tax abatement for B11 and higher blends through 2018, the Illinois legislature showcases its commitment to more than 1,500 green collar jobs in the state.’

According to REG, the biodiesel industry was responsible for more than $2.6 billion of Illinois Gross Domestic Product between 2004 and 2010.

The Illinois government will also increase the state’s tax individual deduction level from $2 million (€1.5 million) to $3 million this year and then $4 million next year.