Domestic Fuel

Oi from Brasil! I have spent the last three days learning about the ethanol industry in Brazil. I have been traveling with a group of 20 international journalists in the State of Sao Paulo, where 60 percent of the country’s sugarcane is grown and consequently where the majority of the ethanol is produced.

I’ll be writing a series of posts about my trip over the next week but I can sum up my experience in one sentence. Where there is a will, there’s a way. When the country of Brazil decided in the 1970s during the oil crisis that it would become energy independent, it did. Today, Brazil gets the majority of its energy, both renewable and fossil fuel based, within its boarders. In addition, the majority of the ethanol produced in the country stays in the country.

Also, unlike the U.S., Brazil produces most of its electricity needs from renewable sources as well. Today, more than 80 percent of its power comes from hydroelectricity, but this poses a problem during drought conditions and will be a bigger problem as water issues become more paramount. A solution? To sell the extra electricity from the sugar mills into the grid during the months the plants are operational, which happens to be during the dry time of the year. UNICA, the organization that represents the Brazilian sugarcane industry, predicts that sugarcane could supply 15 percent of the power by 2017.

While I don’t agree with all of Brazil’s polices and many in the country agree there have been some good and bad decisions, they offer the world demonstrable options and thus, a shorter learning curve to solid energy policies and technologies.

You can take a virtual tour via my Flickr account. Until tomorrow, Tchau.

Ethanol and biodiesel producers in Canada will ask their government early next year to increase the amount of the green fuels produced and added to fossil fuels… even as there are doubts the industry can meet current mandates and production incentives.

Reuters reports that the industry has not decided what those levels should be:

Canada has given annual incentives for up to seven years to 24 biofuel producers, including Husky and Suncor, from a C$1.5-billion ($1.4 billion) program. The government considers biofuel attractive because it reduces greenhouse gas emissions.

Canada’s current biofuel supply will fall short when the first federal government mandate of 5 percent renewable content in gasoline takes effect in September 2010 and a 2 percent federal mandate for renewable content in diesel takes effect in 2011.

Quaiattini admits that Canada will need to import about 40 million to 80 million gallons of ethanol in 2010 and 2011 just to meet current mandates. And some of that ethanol will need to come from the U.S.

A joint American-Malaysian effort has completed an important oil palm genome sequencing project that could unlock even more potential from this oil-rich feedstock for biodiesel.

Biodiesel Magazine reports that the Malaysian Palm Oil Board and St. Louis-based Orion Genomics have led a consortium that has sequenced three oil palm genomes from two oil palm species:

Oil palm plantations on average produce 3.9 tons of oil per hectare per year, nearly 10 times more than other productive oil bearing crops. Therefore, it has the potential to meet growing demand for food and renewable fuel. Used in cooking oil, margarine, baked goods and other foods, palm oil is the most consumed edible oil in the world as well as a common ingredient in soaps and cosmetics and an important biodiesel feedstock globally.

The oil palm family has two species, the E. guineensis which originates from Africa and the E. oleifera, which is native to South America. Because of its high productivity, the E. guineensis is the commercial variety planted in Malaysia. However, the E. oleifera has many interesting traits such as a low height increment that would increase the life-span of harvestable plantings, increased resistance to disease and production of higher quantities of unsaturated fats – traits that will add value if incorporated into commercial E. guineensis lines.

Researchers believe this knowledge of the genomic sequence will help them produce bigger yields to meet food and fuel needs.

A global biofuels organization is urging world leaders to recognize the environmental benefits of renewable fuels like ethanol and biodiesel.

The Global Renewable Fuels Alliance (GRFA) is calling on delegates to the United Nations Framework Convention on Climate Change Conference in Copenhagen December 7-18 “to seize the historic opportunity to recognize the environmental importance of biofuels and begin to develop strategies to ensure that biofuels play an even greater role in meeting global climate change objectives.”

GRFA released an position paper this week summarizing greenhouse gas (GHG) reduction strategies in the transportation sector that take advantage of the verifiable emission reductions available from biofuels. “With transportation responsible for 25% of the world’s GHG emissions and rising, it is critical that biofuels form the core of any future mitigation strategy in this important sector,“ said GRFA spokesman Bliss Baker. “Adopting sustainable biofuels programs can deliver real GHG reductions while reducing a crippling reliance on imported fossil fuels for many developing nations.”

GRFA outlines several actions to be recommended at the conference, including the adoption by governments of biofuels-friendly policies in the transport sector, and that policies take into account the increasing efficiency of global biofuels production in developing policies as opposed to relying on out-of-date data and outdated arguments. They also urge all governments to base an indirect land use change (ILUC) policy on transparent and unequivocal scientific evidence only.

GRFA also continues to call on the World Bank, the United Nations and other international bodies to increase investment in the agricultural sector of developing nations and to support expanded biofuels production in these regions.

Read the GRFA position paper here.

World ethanol supplies may hit a surplus next year, Brazil’s ethanol production and exports will be off due to wet weather, and biobutanol may be in the pipeline by 2013.

That’s just a few of the highlights from F.O. Licht’s World Ethanol 2009 12th annual conference held this week in Paris, France.

F.O. Licht managing director Christoph Berg told attendees at the conference that they are forecasting that global ethanol consumption next year will total 76.4 billion litres, compared to an estimated supply of 77.1 billion. “This would result in a surplus of around 700 million litres which is urgently needed to maintain the supply chain,” he said. However, Berg says global ethanol manufacturing capacity will only increase four percent this year, compared to last year’s increase over 2007 of 33 percent.

There was lots of discussion at the conference about the situation in Brazil, with wet weather crippling sugar cane production this year. UNICA President Marcos Jank reported that Brazilian ethanol production will be down six percent this year and ethanol exports will fall 34 percent.

Philip New, CEO of BP Biofuels, addressed the role of advanced biofuels and how soon we might get there. He noted that BP is working with Verenium on the development commercial production of cellulosic ethanol in the United States, while at the same time planning to produce biobutanol with DuPont in the UK by 2013. “Biobutanol can provide a door through the blend wall which I would argue is the key structural barrier to the growth of this industry over the next five to 10 years,” he told the conference.

Renewable Fuels Association president and CEO Bob Dinneen urged global leaders at the conference to work together for the future of biofuels. “The world ethanol industry must reject all the differences, divisions and diversions. We must come together behind our common agenda, take on our common threats, and put forward our common vision of producing energy, preserving the environment, and promoting economic opportunity for all the people on this planet,” Dinneen said.

Dinneen encouraged the industry to continue fighting the misinformation campaign against ethanol. “The only thing as noxious as the greenhouse gases that are the byproducts of burning petroleum products is the miasma of misinformation that the adversaries of ethanol are emitting. The two most common attacks on ethanol are shameless, senseless, implausible, and illogical,” he said.

World Ethanol 2009 concluded yesterday.

F.O. Licht’s World Ethanol 2009 12th annual conference kicks off today in Paris, France where leaders in ethanol development around the world have gathered.

The conference features perspectives on global ethanol development from industry leaders in countries such as the United States, Brazil, India, France, Germany, Demark, Belgium and Nigeria.

Among the US representatives is Bob Dinneen, President and CEO of the Renewable Fuels Association (RFA), who will be presenting to the conference “American Ethanol – The Path Forward” which will include a look at expanding ethanol markets and addressing unsubstantiated claims about the environmental impact of ethanol. Following Dinneen’s presentation will be Margo Oge, Director of the EPA’s Office of Transportation and Air Quality, who will talk about “Life-Cycle Assessments for the Renewable Fuels Standard.” Both will speak to the conference Tuesday morning, Paris time.

Follow Dinneen’s comments about the conference on his Twitter account twitter.com/ethanolbob.

Already a world beater in ethanol use, Brazil is getting aggressive in the amount of biodiesel it will burn.

Right now, diesel users in the South American country are required to run on a 4 percent biodiesel blend. Last week, Brazilian President Luiz Inácio Lula da Silva upped the ante to 5 percent by 2010… three years ahead of schedule. The jump in biodiesel use is expected to coincide with a rise in biodiesel production to 634 million gallons in 2010, cementing Brazil’s grip as the world’s leader in renewable energy use:

Biodiesel blends became mandatory in early 2008, quickly followed by a raise in blend levels from 2 to 3 percent in July of the same year and from 3 to 4 percent in 2009. The increase to 5 percent was originally planned for 2013. This has enabled a steady expansion of the Brazilian biodiesel market, with 43 plants operating today and production capacity currently at 3.6 billion liters (950 million gallons) per year, more than enough to supply the volume required by the 5 percent mandate.

”Our urban areas and highways will have cleaner fuel, which also creates jobs and generates income to the poor through family farming”, said minister of Mines and Energy Edison Lobão. More than 90 percent of the market has received the Social Fuel Label, a mechanism used by the federal government to ensure a joint participation by small farmers and agribusinesses in the biodiesel production chain.

The move is expected to save 62 million tons of carbon dioxide from going into the air between now and 2017.

A Florida-based algae-biodiesel company has found an international market for a by-product of its clean energy business.

This press release from PetroAlgae Inc. says it has has received official notice that the protein from PetroAlgae’s proprietary micro-crop production technology has successfully passed testing by the Indonesian Ministry of Agriculture and is suitable for use in animal feed:

Furthermore, the protein has been cleared for importation as a raw material to be used as an ingredient for animal feed. This protein is a co-product of PetroAlgae’s core bio-crude (renewable fuel feedstock) production system. Licensees of the PetroAlgae production system will be expected to follow the Guidance and Procedures for the Registration of Animal Feed in Indonesia.

PetroAlgae uses a modular, flexible design construction that allows it to use a near-continuous growing and harvesting process for a wide variety of micro-crops suited to local climates.

A pair of pioneers in biodiesel production in Canada have been recognized for their green efforts.

Timothy Haig and Kevin Norton of BIOX Corp picked up the 2009 Ontario Ernst & Young Entrepreneur of The Year – Cleantech Award. They were congratulated by the Canadian Renewable Fuels Association:

“BIOX is globally recognized as a biodiesel pioneer, and today’s cleantech entrepreneur award for Tim and Kevin is an affirmation of their pioneering efforts,” said Gordon Quaiattini, president of the Canadian Renewable Fuels Association. “BIOX is proof of the promise of renewable fuels in Canada. They are reducing harmful greenhouse gas emissions, diversifying the fuel supply and creating new high value jobs.”

Th BIOX biodiesel plant in Hamilton, Ontario, one of the largest continuous flow biodiesel production facilities in the world, cranks out about 15 million gallons of the green fuel a year.

Biodiesel production worldwide has risen by 10 times over the last eight years and could double again in just two more years, while global ethanol production has more than tripled over the same time period and could jump by another 50 percent by the year 2012.

Farmers Weekly Interactive reports a new report from the International Energy Agency says biodiesel went from about 1 billion liters (about 250 million gallons) in 2002 to 10.9 billion liters (about 2.75 billion gallons) in 2010 and is expected to double by the year 2012:

The review of 21 key biofuel producing countries by the International Energy Agency’s Bioenergy Task 39 also reveals bioethanol production has increased significantly, from less than 20bn litres per year in 2000 to 66bn litres per year by 2008.

The IEA report suggests if recent trends continue, world production of biodiesel could top 20bn litres per year by 2012, while bioethanol production could exceed 90bn litres.

The report goes on to say that economic and ecological sustainability issues are now becoming the main drivers in biofuels production.