Domestic Fuel

The World Bank received a failing grade this week for its lack of support to developing countries trying to implement biofuels project. The “F” comes from the Global Renewable Fuels Alliance (GRFA) representing over 65 percent of the world’s biofuels production from 44 countries.

In a letter to Robert Zoellick, President of World Bank, from Bliss Baker, President of the GRFA, Baker wrote, “I am writing to you to express our deepest concern that the World Bank is failing developing countries in their desire to develop sustainable biofuels industries and relieve their crippling reliance on imported crude oil. Your Bank remains on the sidelines without any commitment to investing in biofuels projects while many developing countries look for scarce capital to build local projects.”

The GRFA continues to call on the World Bank to support the development of biofuels in regions that are in desperate need of relief from their dependence on foreign oil. However, despite pleas from various organizations, the World Bank remains indifferent.

Baker noted that, ”Thirty-eight of the forty-five poorest countries on earth are net importers of crude oil yet many of these underdeveloped countries possess vast amounts of biomass and potential for sustainable biofuels production.”

It is estimated that by 2050, biomass theoretically could supply 65 percent of the world’s current energy consumption, with sub-Saharan Africa, the Caribbean, and Latin America accounting for roughly half of this global potential. Several potential projects have emerged in Malawi, Zambia, Mozambique, Sudan and South Africa looking to attract investment; however, access to investment funds have been scarce.

Andrew Makenete, President of the Southern African Biofuels Association commented, “We see what many western countries have been able to accomplish in terms of energy security and attracting investment into the agricultural sector by building vibrant biofuels industries. We know that with the right support we can replicate this remarkable accomplishment here in Africa.”

Poor crop conditions and higher grain prices north of the border are causing an uptick in exports of the ethanol co-product dried distillers grains (DDGS) to Canada.

According to the U.S. Grains Council, 350 cars containing approximately 31,500 metric tons of DDGS were purchased last week by Canada’s largest distiller’s grains importer, Rycom Trading Ltd. Ryan Slozka, senior trader at Rycom says that poor weather has caused inadequate pasture conditions in Canada this year. “Western Canadian feeders rely heavily on U.S. DDGS and now possibly whole corn, which we are watching closely. We will wait and see if crop conditions improve here in western Canada, but as long as cattle feeders continue to see good results with feeding U.S. corn DDGS, we anticipate this upward trend in demand to continue,” said Slozka.

In 2008, Canada imported 772,000 tons of U.S. DDGS, up 453,000 tons from 2007, making Canada the second largest market for U.S. DDGS. This year’s imports are already running ahead of last year.

Just in case you missed last March’s World Biofuels Markets congress in Brussels, Belgium, now you have a chance to see and hear the presentations from the three-day event.

Green Power Conferences, which put on the international meeting, is making the entire set of presentations available… for a fee:

The complete set contains:

* Cutting edge insight from 200 of the industry’s most influential speakers
* High quality content from the multi-streamed congress
* 200 speakers, 46 sessions: “No other event gives you as complete a picture of the entire industry”
* Information from key sessions: Renewable Diesel, Btl & Synfuels, Algae Fuels, Cellulosic Ethanol, Biofuels & Forestry, Biofuels from Waste, Jatropha and many more…
* Specific Biofuels Cities sessions featuring Ecofys International, SenterNovem and ICLEI
* Recordings by keynote speakers including Sir Bob Geldof, Lord Browne and Dr Hermann Scheer MEP

More information is available through the Green Power Conferences Web site.

The next World Biofuels Markets congress will be held March 15-17, 2010, in Amsterdam, the Netherlands.

Renewable Fuels Association president and CEO Bob Dinneen is in Brazil for the Ethanol Summit 2009 in Sao Paulo and is providing an up-to-the-minute account of his visit via Twitter.

Among Dinneen’s comments so far since he arrived in Brazil early this morning: “Just passed a fuel station. Alcohol (ethanol) was 1.09, gasoline was 2.29. Units are litres and Rials, but you get the picture!” and “I find myself looking for flex fuel labels on the cars. They’re all over. A Honda Civic flex, a Toyota Corolla flex. Huh. Why not in the US?”

Former President Bill Clinton is among the speakers today at the summit, which is organized by the Brazilian Sugarcane Industry Association (UNICA) and is one of the most important gatherings focused on biofuels in the world. More than 90 speakers from all continents are confirmed for the Summit, which will feature 25 panels in five theme-specific venues, three publication launches and six plenary sessions. Dinneen will be among the panelists during a Wednesday session on Ethanol: Global vs. Domestic Market. A panel today on second generation ethanol includes representatives from POET, Novozymes, Monsanto and BP and a Food Versus Fuel panel on Wednesday will feature National Corn Growers Association chairman Ron Litterer.

Some believe the future of renewable energy is with hydrogen. If that’s true, the future… and the world… will be coming to Vancouver next week for Hydrogen + Fuel Cells 2009… billed as Canada’s premier international hydrogen and fuel cell event.

Organizers say the event, which runs from May 31 - June 3, will “showcase Canada’s leadership in commercialization of hydrogen and fuel cell technology:”

“Today, customers and end-users around the world are validating the benefits of hydrogen and fuel cells,” said John Tak, Chair, Hydrogen + Fuel Cells 2009. “There is increasing momentum behind the commercial adoption of this technology, propelling the growth of an industry that provides high-value green jobs and a legacy of innovation.”

More than 1,000 international delegates are expected to attend Hydrogen + Fuel Cells 2009, taking place June 1-3 at the new green-designed Vancouver Convention Centre. The conference will feature international experts profiling the latest developments in research, business and government policy, with the opening keynote session featuring addresses from the governments of British Columbia.

Officials say a convoy of hydrogen-powered electric vehicles will be driving from San Diego, California and will arrive in Vancouver on June 3.

Hydrogen + Fuel Cells 2009 is jointly organized by the Canadian Hydrogen and Fuel Cell Association and the Province of British Columbia. Sponsors include Air Liquide, The Linde Group, German Fuel Cell and Hydrogen Network, Air Products, Ballard, Enbridge, AECL, BC Hydro, Canadian Nuclear Association, Daimler, GM, Hydrogenics, IMW, Plug Power, PriceWaterhouseCoopers, Iwatani, National Research Council Canada, Natural Resources Canada and BC Transit.

Biofuels from the perspective of India and East Africa, as well as Europe and the United States, were part of the discussion at the World Ag Congress in St. Louis on Tuesday.

Henk Joos with London-based D1 Oils moderated the panel focusing on an integrated approach to biofuels. He stressed that the purpose of the panel was to find solutions. “We can decide to go again in an immense debate on food versus fuel,” he said. “I would like to take a different approach. I would like with my fellow panelists to identify responsible ways to make food and fuel at the same time.”

Joos noted, as did several others on the panel, that biofuels alone were not the cause of last year’s dramatic increase in food prices. “Food production per capita in the world has never been higher than it is today,” he said. “It’s not necessarily about the total production of food, it’s really food distribution, getting it to the people who need it.” Not only that, he added, a great deal of food continues to be wasted around the world.

He also pointed out the food and fuel example of Brazil, which has developed a very successful sugarcane ethanol industry using only 0.3% of total acreage to produce sugarcane. “That is a perfect example of how this production can go hand in hand,” he said.

The panelists included former Secretary of Agriculture for India Radha Singh, Lee Broughton with Enterprise, Bill Horan with 25x’25, and professor Nuhu Hatibu, CEO of Kilimo Trust, East Africa. All agreed that there are ways the world can produce fuel from various feedstocks - including non-food like jatropha and algae for biodiesel - and still feed a growing population.

You can listen to the opening remarks of the panelists here:

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Temporary tariffs on American biodiesel imposed by the European Union could become more permanent.

In March, the EU, citing what it called unfair subsidies by the U.S. government that help American biodiesel producers, slapped temporary duties on biodiesel coming from this side of the pond. And, according to this story on CNMoney.com, the duties, which typically last five years, could be going up significantly:

The commission is proposing changes to the biodiesel duties: U.S. agriculture giant Archer Daniels Midland (ADM) will face a duty of EUR359 a metric ton of biodiesel, up from the temporary duty announced in March of EUR261/ton, the European official said.

Peter Cremer North America LP and all other companies will have to pay EUR409/ ton, down slightly from the temporary duty of EUR419/ton.

National Biodiesel Board officials have dismissed the Europeans’ complaints about American biodiesel as baseless.

Just got word today that I’m headed to St. Louis next week to help cover the World Agricultural Forum’s Sixth Biennial World Congress, “Our Global Priority: Food Security—Financial, Trade and Technical Services,” for ZimmComm New Media, mostly on our sister Web site, AgWired.com.

For Domestic Fuel followers, there is plenty going on at the forum, especially in the sustainability field:

The 2009 World Congress will seek solutions to issues around agricultural production and supply, rising food costs, the crucial resource of water, and the impacts on agricultural economies and resources during a period of unprecedented financial uncertainties on a global scale. Defining strategies and creating solutions will require a better understanding of the drivers and challenges of agriculture and food production including labour, rising prices, shrinking sources of credit, leveraging of innovation and technology, creation of incentives for production and higher productivity, and reducing the impact of input costs to farmers. Each sector — government, private and private-public partnerships and civil society (NGOs) will be challenged to provide a road map to success by addressing the crucial issues of safe, affordable and reliable supplies of food, fuel, fiber and water.

If you’re in the St. Louis area on Tuesday, May 19th, check out the session entitled Food Security: An Integrated Approach to Biofuels. The session will be moderated by Henk Joos, Plant Science and Agronomy Director, D1 Oils and feature panelists Smt. Radha Singh, Former Secretary, Department of Agriculture, from India; Lee Broughton, Director, Corporate Sustainability, Enterprise; Ernie Shea, Project Coordinator, 25 X ’25; and Prof. Nuhu Hatibu, CEO, Kilimo Trust, East Africa.

Should be a pretty interesting conversation. Both Cindy and I will be providing coverage for the event, May 17-20. We’ll either see you there at the St. Louis Ballpark Hilton Hotel in downtown St. Louis or over on AgWired.com!

Fourteen southern African nations are now members of the Global Renewable Fuels Alliance.

The Southern African Biofuels Alliance has joined forces alliance to help “promote biofuels friendly policies throughout the world.”

Andrew Makenete, President of the Southern African Biofuels Association (SABA) called on other nations to speak out in favour of policies that would promote investment in biofuels particularly in developing countries.

“Biofuels represent an enormous opportunity for developing countries particularly those reliant on crude imports,” Makenete explained. “A sustainable biofuels industry utilizing multiple feedstocks will attract investments in agriculture, reduce our reliance on imported energy and improve income levels. This is a win, win, win for developing countries.”

The Global Renewable Fuels Alliance represents over 65% of the global biofuels production from 43 countries including Canada, the United States, Argentina, 22 European countries and now 14 African nations. Through the development of new technologies and best practices, Alliance members are committed to producing renewable fuels with the smallest possible ecological footprint.

KL Energy Corporation, based in Rapid City, South Dakota, has announced a partnership agreement with add blue Ltda, based in São Paulo, Brazil, to build a cellulosic ethanol plant in Brazil utilizing KL Energy’s cellulosic ethanol technology for the use of sugarcane bagasse and straw feedstock. The plant will use KL Energy’s enzymatic process which will be integrated into a conventional sugarcane mill, and is expected to go online in 2010.

“KL Energy had been looking for opportunities to enter the Brazilian ethanol market. Our agreement with add blue is the perfect fit to expand our business strategy as a global cellulosic ethanol technology provider,” said Steve Corcoran, CEO of KL Energy.

In addition, add blue will be the first company in Brazil’s sugarcane industry to apply Aspen Plus®, a process simulation tool designed to enable mill owners to increase capacities, yields and profitability. add blue is in the process of successfully concluding its first full scale process optimization project at a sugarcane mill in the State of São Paulo.

“Cellulosic ethanol has great market potential in Brazil and this is the ideal moment to introduce this technology,” said Peter Gross, Founder and Managing Partner of add blue. “The cooperation with KL has begun extraordinary well in all areas: the joint optimization of KL Energy’s enzymatic process for sugarcane mills, testing of bagasse feedstock in KL Energy’s commercial scale facility, and Aspen Plus powered process optimization.”

Brazil is the world’s 2nd largest producer of ethanol. Today, more than 360 mills are operating in Brazil, all of them generating significant amounts of sugarcane bagasse, an ideal feedstock for cellulosic ethanol production. KL Energy was the first company in the U.S. to bring a commercial-scale cellulosic ethanol facility online in January 2008 based in Upton, Wyoming using woodwaste as the primary feedstock.