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Corn is not the future of U.S. ethanol: DOE
By Timothy Gardner
NEW YORK - New technology to make ethanol from crops such as grasses and trees instead of corn could ease price spikes of the grain within a decade, a U.S. Energy Department official said on Wednesday.
"I'm not going to predict what the price of corn is going to do, but I will tell you the future of biofuels is not based on corn," U.S. Deputy Energy Secretary Clay Sell said in an interview.
Output of U.S. ethanol, which is mostly made from corn, is expected to jump in 2007 from 5.6 billion gallons per year to 8 billion gpy, as nearly 80 bio-refineries sprout up.
Corn prices have doubled over the last year as the Bush administration, seeking to reduce oil imports while boosting output of fuels believed to cut greenhouse gas emissions, offers millions of dollars in incentives to boost ethanol production.
The corn prices, the highest in a decade, have spurred thousands of people in Mexico to protest over the price of tortillas, a national staple made from corn. The spike has also lead to worries that meat and dairy prices could eventually rise.
Sell said the future of biofuels is cellulosic ethanol, made from microbes that break down woody bits of non-food crops into sugars that can be fermented into fuel.
Cellulosic, and other new biofuels such as biobutanol, which can be made from petroleum as well as biomass, could begin to feed the commercial fuel market within six to 10 years, he said. They could also be part of a larger program to cut greenhouse gases, he added.
The new fuels are much pricier than conventional ethanol, but relief would come through U.S. investment in research and development.
"We are going to get significant breakthroughs that can conceivably bring down the cost of cellulosic ethanol production down by an order of magnitude," Sell told Reuters.
Amid growing pressure to cut emissions in the world's biggest producer of greenhouse gases, the Bush administration is also putting research and investment money into clean coal, and energy efficiency.
Sell rejected the idea that a national mandatory cap on emissions could shift the burden of the development of low- emissions domestic fuels from government to markets by creating trade in credits for the right to pollute.
Potential 2008 U.S. president contenders from both parties support such programs, as do growing numbers of energy experts and companies. But President George W. Bush opposes mandatory caps on emissions, saying they would hurt the U.S. economy.
Sell said the United States, as the world's top energy consumer and economy, was not morally obliged to lead rapidly developing countries.
He said such measures would keep "hundreds millions of people in poverty" in China and India. Those countries are not obliged to place mandatory cuts on emissions under any international agreement.
© Reuters 2007
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Landmark wood waste biomass site opens on Teesside
UK Wood Recycling opened its £8 million facility near Redcar on Friday, which will provide around 80,000 tonnes of recycled woodchip each year to the nearby Wilton 10 power plant on Teesside.
Launched by Parliamentary Under-Secretary of State for Energy Lord Truscott and local MP Vera Baird, the facility was also welcomed by Rick Wilcox, secretary of the Wood Recycler's Association who hailed the opening as an important day for wood recycling.
Addressing guests, Mr Wilcox said: "This is a great day for recycling and renewable energy. Co-incidentally the opening has fallen in the same week as the budget which has seen a significant rise in landfill tax which should stimulate the recycling of waste wood into heat and power and divert more waste wood from landfill."
Cutting a ribbon to open the facility, Lord Truscott said: "This project is an example of exactly what our country should be doing improving our energy efficiency and tackling climate change by creating renewable energy."
Technology
At the UK Wood Recycling site, which has already stockpiled 30,000 tonnes of waste wood since last July (see letsrecycle.com story), waste wood is loaded into hammer mills, shredded and de-contaminated using magnet and air technology designed by the company.
The waste wood is sourced from local authorities, waste firms, furniture manufacturers and packaging companies and is tested by UK Wood Recycling to ensure it meets the chemical specification needed for the biomass plant.
Expected to be operational in July, the Wilton 10 plant run by SembCorp Utilities UK will require around 300,000 tonnes of wood as fuel every year in total. About 40% of this will come from recycled wood, while the remained will come from forestry management schemes, sawmills and specially-grown energy crops.
The power plant will generate 30MW of electricity, enough to fuel 30,000 homes.
Geoff Hadfield, managing director of UK Wood Recycling, a sister firm of Manchester-based Hadfield Wood Recyclers, said: "UKWR is a major step forward for renewable energy in terms of using wood waste to generate electricity. This is a first for us but we hope there will be many more such schemes replicated around the country. There are less than a handful of biomass plants in the UK and over 300 in Germany which gives a sense of what is to come."
Market
Hadfields now sends just 25% of its recycled wood for use in the panelboard industry having in the past sent all of its wood to that market.
Mr Hadfield said the current surplus of waste wood in the panelboard market and the forthcoming increases in Landfill Tax was providing a good opportunity for biomass outlets for wood.
"This is a golden opportunity for our own business and the biomass industry in general," he said.
Toby Beadle, a consultant who helped SembCorp Utilities UK to get its biomass project off the ground, added: "This is an extremely important event for the whole sector as it brings to the attention of the government that this is real you can build big biomass projects and you can get the fuel. A lot of potential developers are waiting for this to work before they give the go-ahead and it will open the tap when it does."
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Biofuel's feasibility to get test
By David Goldstein
WASHINGTON - Kansas is about to welcome some 21st century pioneers who, instead of plowing under prairie grass, want to turn it into fuel.
The state is one of six getting a cutting edge technology that will make ethanol out of grass and crop residue typically left in the field. The location of the new $300 million plant has not yet been named, but construction should start next year and finish in 2010.
Cellulosic ethanol is the goal, instead of the more common corn-based variety. Cellulose is the main ingredient in cell walls of vegetation.
"That's the beauty of it," said Steven Bantz, at the Union of Concerned Scientists, a nonprofit group. "The environmental impact of some of these feedstocks is so much lower."
Environmentalists are encouraged, because cellulosic ethanol from switchgrass and other plants is cleaner and more efficient than ethanol made from corn.
Though the Kansas plant will have only a 50 million gallon output, the goal is to show that the product can be economically viable.
That's why Energy Department grants are so crucial, according to Matthew Hartwig, a spokesman for the Renewable Fuels Association.
"Part of the problem is breaking the material down," he said. "It's expensive. The capital costs are also four to five times the costs of (building) a traditional corn-based ethanol plant. It's not a proven commercial technique, so lenders, creditors and investors are just a little bit hesitant."
President Bush is not, pledging to cut gasoline use by 20 percent in 10 years. He also set a new mandatory standard to require 35 billion gallons of renewable and alternative fuels by then.
Corn ethanol plants, which produced 4 billion gallons in 2005, can't do all that alone, even if its popularity grows.
The 1.5 billion bushels diverted to fuel has put pressure on cereal and meat prices.
"There's only so many gallons you can realistically produce without competing with other uses of the grain supply," said Chris Standlee, at Abengoa Bioenergy, the Spanish firm that will build the Kansas plant. Abengoa, which has offices in St. Louis County, will get $76 million of the $385 million in grants announced last month by the Department of Energy. Other first-wave facilities will go to Florida, Georgia, Iowa, Idaho and California. Ray Hammarlund, at the Kansas Department of Commerce, projected that about 120 jobs and $45 million would be added to the local economy.
Switchgrass, corn stalks, wheat straw and milo stubble, even the state's native prairie grass might work as an ethanol source, Hammarlund said. "We've had talk about using bluestem." Making ethanol out of stalks and stems is more complicated than making it from corn, Standlee said. The trick is extracting the sugar necessary for brewing the alcohol-based fuel. With corn, the sugar comes easily from the starchy kernels.
© Copyright 2007 The Kansas City Star
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Hydro One to invest more than $600 million in Ontario's electricity transmission system; the largest expansion to Ontario's transmission system in 20 years
TORONTO - Hydro One announced it will seek the necessary approvals to construct a new double-circuit 500 kilovolt (kV) line on a widened existing transmission corridor between the Bruce Power facility and Hydro One's Milton switching station located in the Town of Milton; the largest expansion to Ontario's transmission system in 20 years. The news followed an announcement earlier today in which the Ontario Power Authority (OPA) confirmed its preferred option and route for the new line to increase the province's transmission capacity and to allow for greater access to renewable energy and nuclear power from the Bruce region. In a report released last fall, the OPA in its role to ensure an adequate, long-term supply of electricity for Ontario, identified the need and rationale for the new line to provide transmission capability to reliably transmit power from approximately 1,700 MW of new renewable generation identified in the region, as well as power from refurbished units at the Bruce Power facility.
The proposed 180-kilometre, 500 kV transmission line, Ontario's newest
clean energy corridor, is planned to be in-service by December 2011. The Bruce
to Milton project is the second clean, renewable transmission investment
announced in recent months and represents an approximate investment of over
$600 million in Ontario's transmission system.
The project is subject to both the Environmental Assessment (EA) Act and
Ontario Energy Board (OEB) approvals. The company will initiate the EA process
and will file a Section 92 (leave to construct) application with the OEB
simultaneously to meet the service date for the line. Hydro One is committed
to open consultation throughout the required approvals process.
Provincial land use policy requires that existing transmission corridors
be utilized to the extent possible for new transmission lines. As such, Hydro
One proposes widening the existing 500 kV corridor and constructing the new
line along the north and east side of the widened existing corridor, to avoid
the need to establish a new right-of-way. Rights to an additional 53-61 metres
(175-200 feet) of land adjacent to the existing corridor will be required.
Widening the transmission corridor makes it necessary for Hydro One to obtain
additional easement rights and, in a limited number of cases, purchase
properties.
"Ontarians expect reliable and cost-effective power and a transmission
system that provides it to their homes, schools, farms and businesses. Our
investment announced today meets this need," said Laura Formusa, President and
CEO, Hydro One (Acting). "This project is important to secure Ontario's clean
and renewable energy future. We are sensitive to concerns of property owners,
Aboriginal communities, local municipalities and stakeholders impacted by the
project and will work to ensure that we manage their concerns in a manner that
is fair and responsible."
Hydro One delivers electricity safely, reliably and responsibly to homes
and businesses across the province of Ontario and owns and operates Ontario's
29,000 kilometre high-voltage transmission network that delivers electricity
to large industrial customers and municipal utilities, and a 122,000 kilometre
low-voltage distribution system that serves about 1.3 million end-use
customers and smaller municipal utilities in the province. Hydro One is wholly
owned by the Province of Ontario.
Ontario Power Authority Recommends Moving Forward on Power Corridor
Bruce to Milton Transmission Line Key to Ontario's Long Term Power
Planning
TORONTO - In a letter to Hydro One, the Ontario Power Authority (OPA) has recommended commencement of the planning and approvals process required to build a new 500 kilovolt transmission line to deliver renewable and nuclear power from the Bruce region to Ontario's electricity consumers.
The OPA has indicated the optimal route for the new line is adjacent to
an existing transmission line from the Bruce Power facility to the Milton
switching station, a distance of approximately 180 kilometers. In keeping with
provincial land use policy, the preferred route follows an existing right of
way. With this route, the system will accommodate 1,000 MW more power than the
next best alternative.
The existing transmission line has the capability to transmit enough
generation from the Bruce area to Ontario's electricity consumers to meet
today's needs. The new line will provide transmission capability to reliably
and safely deliver an additional 3,000 MW of generation capacity.
Bruce Power is returning to service two nuclear units by 2009. These
units have been out of service since the mid 1990s. Approximately 700 MW of
wind development projects have also been identified in the Bruce area to date,
with another 1,000 megawatts of future renewable energy potential in the
region.
The OPA's analysis looked at various options to increase the capacity of
the electricity transmission system in southwestern Ontario to meet this need.
The final recommendation considers technical requirements, total system
capacity, provincial land use policy and the overall cost to Ontario
electricity consumers.
In December, 2006, the OPA called on Hydro One, working with the
Independent Electricity System Operator and Bruce Power, to institute interim
measures by 2009 to maximize the capability of the existing system to the
extent possible until the new line is in service.
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Biofuel's feasibility to get test
By David Goldstein
WASHINGTON - Kansas is about to welcome some 21st century pioneers who, instead of plowing under prairie grass, want to turn it into fuel.
The state is one of six getting a cutting edge technology that will make ethanol out of grass and crop residue typically left in the field. The location of the new $300 million plant has not yet been named, but construction should start next year and finish in 2010.
Cellulosic ethanol is the goal, instead of the more common corn-based variety. Cellulose is the main ingredient in cell walls of vegetation.
"That's the beauty of it," said Steven Bantz, at the Union of Concerned Scientists, a nonprofit group. "The environmental impact of some of these feedstocks is so much lower."
Environmentalists are encouraged, because cellulosic ethanol from switchgrass and other plants is cleaner and more efficient than ethanol made from corn.
Though the Kansas plant will have only a 50 million gallon output, the goal is to show that the product can be economically viable.
That's why Energy Department grants are so crucial, according to Matthew Hartwig, a spokesman for the Renewable Fuels Association.
"Part of the problem is breaking the material down," he said. "It's expensive. The capital costs are also four to five times the costs of (building) a traditional corn-based ethanol plant. It's not a proven commercial technique, so lenders, creditors and investors are just a little bit hesitant."
President Bush is not, pledging to cut gasoline use by 20 percent in 10 years. He also set a new mandatory standard to require 35 billion gallons of renewable and alternative fuels by then.
Corn ethanol plants, which produced 4 billion gallons in 2005, can't do all that alone, even if its popularity grows.
The 1.5 billion bushels diverted to fuel has put pressure on cereal and meat prices.
"There's only so many gallons you can realistically produce without competing with other uses of the grain supply," said Chris Standlee, at Abengoa Bioenergy, the Spanish firm that will build the Kansas plant.
Abengoa, which has offices in St. Louis County, will get $76 million of the $385 million in grants announced last month by the Department of Energy.
Other first-wave facilities will go to Florida, Georgia, Iowa, Idaho and California.
Ray Hammarlund, at the Kansas Department of Commerce, projected that about 120 jobs and $45 million would be added to the local economy.
Switchgrass, corn stalks, wheat straw and milo stubble, even the state's native prairie grass might work as an ethanol source, Hammarlund said. "We've had talk about using bluestem."
Making ethanol out of stalks and stems is more complicated than making it from corn, Standlee said. The trick is extracting the sugar necessary for brewing the alcohol-based fuel. With corn, the sugar comes easily from the starchy kernels.
© Copyright 2007 The Kansas City Star
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Alternative Energy Key To African Development: UN
“African countries must reduce their dependence on oil and begin to seek bold energy alternatives so the continent can emerge from a cycle of poverty, the head of the UN environment agency said Thursday March 22.
Tapping into the continent's vast resources and developing wind, solar and
geothermal energies will have long-lasting economic and environmental
benefits for Africa, where 90 percent of people in rural areas do not have
access to modern forms of energy, UN Environment Program chief Achim
Steiner said in Nairobi [where delegates from more than 100 countries and
inter-governmental organizations are taking part in the two-day Tokyo
International Conference on African Development (TICAD) jointly organized
by Japan, the United Nations and the World Bank]. …” [Agence France
Presse/Factiva]
Reuters notes that Steiner further said “… Many of the plans being
considered by African governments, including huge hydropower dams and
fossil fuel plants, were simply ‘more of the same.’ Many would be able to
supply the huge appetite of industry and city dwellers on the world's
poorest continent, he said, but would ‘lock in’ the rural majority to
decades without power. … Africa was rich in renewable energy resources
like wind, solar and geothermal power, he said, which could be harnessed
relatively cheaply to power small communities. African governments should
be encouraged by a new focus in the West on fighting climate change
through promoting clean energy generation and carbon financing, he said.
And they should look to countries like Brazil and Germany, which he said
took ‘strategic decisions’ years ago to become leaders in biofuels and
wind power respectively. …” [Reuters/Factiva]
The East African Standard writes that “… Japan's senior vice-minister for
Foreign Affairs, Takeshi Iwaya , who is chairing the meeting, called on
rich countries to assist Africa establish ownership of their projects.
Developed countries were also urged to promote regional co-operation. …
UN Secretary General Ban Ki Moon, in a video message to the delegates at
the TICAD Ministerial Conference on Energy and Environment for Sustainable
Development, said there were two billion people in the planet who lacked
access to modern forms of energy. …” [The East African Standard
(Kenya)/Factiva]
Meanwhile, Xinhua reports that addressing the conference on Thursday
Kenyan President Mwai Kibaki “… called on developed nations to extend
support to developing countries to strengthen their capacity in tackling
environment challenges. Kibaki said African governments could not contain
the enormous challenges of energy and environmental conservation on their
own. … Kibaki urged African countries to make use of the continent's
resources in an efficient and well-governed manner, but also said that
Africa is beset with the ‘inability to generate sufficient financial and
technical resources to exploit these energy sources, as well as lack of
adequate infrastructure to transfer electricity from surplus areas to
deficit areas within the continent.’
Kibaki also urged Africa to devise ways of developing effective power
supply networks by reducing energy costs to make electricity affordable to
ordinary people. … He said despite Africa being [an] insignificant source
of carbon emissions globally, it cannot be insensitive to the danger of
high carbons emissions because it was already paying the price of such
emissions from the industrialized economies.” [Xinhua (China)/Factiva]
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Biofuels accelerate biotech growth
By Paul Elias
Biotechnology was first applied in medicine, then farming. Today, dozens of lifesaving drugs are on the market, while many crops are genetically engineered to withstand weed killers.
Now, a 2-year-old push to develop alternative fuels is driving biotechnology's growth into the industrial sector.
Thousands of corporate executives and scientists gather this weekend in Orlando, Fla. for an industry trade show specifically aimed at touting biotechnology's so-called third wave, industrial applications. The word on everyone's lips: ethanol.
After decades of unfulfilled promise and billions in government corn subsidies, energy companies may finally be able to produce ethanol easily and inexpensively thanks to breakthroughs in biotechnology.
Most of the 5 billion gallons of ethanol produced annually in the United States is still made by fermenting corn, but the crop is expensive and its use in biofuels cuts into the nation's food supply. So the Canadian biotech company Iogen Corp. has developed a method for deriving ethanol from a variety of plants including wheat, oats and barley. Others are genetically engineering microbes to produce enzymes that will convert the cellulose in crop waste, wood chips and other plants into ethanol.
President Bush helped breathe new life into this once-sleepy biotech sector by touting the need to ramp up production of this "cellulosic ethanol" in his last two State of the Union speeches.
The president wants to reduce the country's oil consumption by 20 percent within 10 years and he sees alternative fuels as the way to get there. Bush visited the North Carolina biotechnology company Novozymes Inc. last month to underscore the industry's vital role in accomplishing that ambitious goal.
Government agencies led by the Department of Energy are sinking millions into biotech projects aimed at making ethanol more efficiently. And startups dedicated to turning plants into fuel have captured the fancy of deep-pocketed venture capitalists like Vinod Khosla. The billionaire co-founder of Sun Microsystems Inc. is investing hundreds of millions of dollars in green technology and will be a featured speaker this year at the World Congress on Industrial Biotechnology & Bioprocessing.
Other heavy hitters attending the conference include University of California scientist Jay Keasling, Discover magazine's Scientist of the Year in 2006 and a leader in the burgeoning "synthetic biology" field, which aims to create living species that will spit out drugs and fuel.
Oil companies are also investing heavily in biotechnology these days, and executives from ConocoPhillips Co., Chevron Corp. and Shell Oil Corp. will also be on hand at Walt Disney World for the conference, which starts Thursday.
By contrast, these annual gatherings have historically been sleepy affairs. Last year's industrial biotech meeting, sponsored by the Biotechnology Industry Organization, drew little interest even though it was held in Hawaii in January. That state's lieutenant governor may have been the biggest draw.
Past conferences have featured discussions on topics like biotech's role in manufacturing enzymes used to help laundry detergent break down dirt and give blue jeans the stone-washed look. But this year's meeting will be focused on the industry's role in making ethanol and other alternative fuels.
The DOE has awarded up to $385 million over four years to six companies to develop ethanol.
"We are moving into a very diversified fuel era," said Ron Pernick, who co-founded Portland, Ore.-based Clean Edge, which tracks venture capital investment. "Private investment is really taking off."
Pernick said venture capital investment in biofuels has increased from less than $1 million in 2004 to $20.5 million in 2005 to $813 million last year. Much of that investment is flowing to biotechnology companies that genetically engineer microbes that produce enzymes needed to break down crops into alcohol.
At least one industrial biotechnology company has radically remade itself into an energy company in hopes the alternative fuel craze is here to stay.
San Diego's Diversa Corp., which has lost $329.5 million since its inception in 1994, bought the Cambridge, Mass.-based ethanol company Celunol in January for $154.7 million in stock, plus debt financing. The Celunol management team will take over the new energy company once the deal is approved.
Still, even industrial biotechnology's adherents concede that commercial success in the alternative energy industry is years away - if ever.
"Taking any invention from the lab to the marketplace is a long-term process and takes a lot of patience," said Celunol spokesman John Howe, who said the company's plan to convert sugar cane into ethanol will take many years to become profitable.
Others wonder if trend to making more ethanol has created a bubble that may soon burst.
Economist Lester Brown, who launched the Washington-based think tank Earth Policy Institute, said it's easier to make automobiles more fuel efficient than it is to radically alter the country's fuel supply.
"If we were to raise fuel efficiency standards, we could save as much oil as the president wants," Brown said. "Ethanol is not a winning ticket."
Copyright 2007 Associated Press
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Ethanol's growing list of enemies
By Moira Herbst
Paul Hitch has spent his entire life raising cattle and hogs on a stretch of the Oklahoma panhandle he says is "flat as a billiard table." His great-grandfather started the ranch in 1884, before Oklahoma was a state, and now Hitch, 63, is preparing to pass the family business on to his two sons.
But he worries that they'll face mounting pressures in the industry, particularly because of the soaring price for corn, which the business depends on to feed the livestock. In the past year, corn prices have doubled as demand from ethanol producers has surged.
"This ethanol binge is insane," says Hitch, who's president-elect of the National Cattlemen's Beef Assn. (NCBA). "This talk about energy independence and wrapping yourself in the flag and singing God Bless Americaall that's going to come at a severe cost to another part of the economy."
The ethanol movement is sprouting a vocal crop of critics. While politicians including President George W. Bush and farmers across the Midwest hope that the U.S. can win its energy independence by turning corn into fuel, Hitch and an unlikely assortment of allies are raising their voices in opposition. The effort is uniting ranchers and environmentalists, hog farmers and hippies, solar-power idealists and free-market pragmatists (see BW Online, 02/2/07, " Ethanol: Too Much Hypeand Corn").
They have different reasons for opposing ethanol. But their common contentions are that the focus on corn-based ethanol has been too hasty, and the government's active involvementthrough subsidies for ethanol refiners and high tariffs to keep out alternatives like ethanol made from sugaris likely to lead to chaos in other sectors of the economy.
"The government thinks it can pick a winner, but they should allow consumers to pick their own," says Demian Moore, senior analyst for the nonprofit Taxpayers for Common Sense. "Corn ethanol has failed to prove itself as a reliable alternative that can exist without huge subsidies."
Ethanol has plenty of support in Washington. Besides Bush's call for sharply boosting output during his State of the Union (see BusinessWeek.com, 1/24/07, "Salesman In Chief"), Hillary Clinton, senator from New York and Presidential contender, has reversed her previous position to support ethanol subsidies.
Barack Obama, another Democratic Presidential hopeful, is on board. Even John McCain, a vocal critic for years, is reconsidering his opposition as he tries to snare the Republican nomination. Archer Daniels Midland (ADM), the agribusiness giant and the largest ethanol producer, is a formidable lobbying force in the capitol, after having handed out millions of dollars in political contributions over the last three decades.
Abundant Crops
Yet while the influence of ethanol's enemies isn't great now, their cohesiveness, and their power, is growing. For two days earlier this month, the NCBA, the National Chicken Council, the National Turkey Federation, and the National Pork Producers' Council testified before Congress, calling for the end of corn ethanol subsidies.
Left-leaning economists such as Princeton University's Paul Krugman are joining free-market fundamentalists at the Cato Institute in pointing out the economic pitfalls of ethanol. And green groups worry that aggressive production of corn could have dire consequences for the environment, because of the heavy use of pesticides, fertilizer, and machinery that burns fossil fuels. "There's great concern," says Doug Koplow, who analyzes energy policy for Earth Track, a Boston consultancy.
The opposition groups haven't worked together before this year, but Hitch says the NCBA is now beginning to reach out to other groups in an effort to coordinate lobbying and other activities. On Mar. 16, representatives of the ranchers, chicken farmers, pork processors, and milk producers held a joint conference call to discuss strategies for addressing the ethanol issue. They agreed to form an ad hoc group, which has not been publicly announced, to launch an informational Web site and to work toward the inclusion of measures to eliminate domestic ethanol subsidies and tariffs on Brazilian ethanol in the Farm Bill expected later this year.
Ranchers and other opponents say they're determined to get the government to change its policies, however long it takes. "This ethanol thing is driving everybody half nuts," says Hitch. "As far as presenting a united front on this issue, we certainly can and will."
Ethanol's quick growth dates back only two years, to the 2005 Energy Policy Act. The law mandates that 7.5 billion gallons of the nation's annual gasoline consumptionor roughly 5%come from renewable fuels by 2012.
In this year's State of the Union, Bush proposed quintupling that figure. That comes on top of the 51¢-per-gallon subsidy, which started in 1978. The result is a wave of ethanol plant construction, with 113 ethanol distilleries now in operation and an additional 78 in the works. That has pushed up demand for corn to the point that last year ethanol took up about one-fifth of the country's corn supply (see BusinessWeek.com, 2/5/07, "Food vs. Fuel").
Livestock Losses
More corn for ethanol producers, of course, means less for livestock. Ranchers in wide-open Western states and pig farmers in the rural stretches of the South and Midwest are finding their businesses slammed by policies cooked up in Washington.
Hitch says the feedstock that's primarily made from corn is the single biggest expense for his business. As corn costs have doubled, meat packers and processors like Tyson Foods (TSN) and Smithfield Foods (SFD) have to pay more for the animals they buy.
"The current approach and pace is full of risks to traditional users of feedgrains," Matthew Herman, a Tyson Foods manager, told a House subcommittee earlier this month. "Without adequate safeguards for the unintended consequences, the future of U.S. animal agriculture is put in great jeopardy."
Earth, Wind, and Fuel
Economists argue that making ethanol from corn wouldn't make any sense without the government's help. The mix of federal and state subsidies to corn ethanol amounted to a conservative estimate of $5 billion to $7 billion in 2006, says Koplow of Earth Track. A considerable chunk of that money comes from the 51¢ tax refund for each gallon of ethanol refiners blend with gasoline to make fuels that can power flexible-fuel cars.
At the same time, the government imposes a 54¢-per-gallon tariff on ethanol from Brazil, which is a cheaper and more energy-efficient product made from sugar cane. Some economists say American politicians are subordinating smart energy policy for political support in key states like Iowa.
"What's this idea that Brazilian ethanol is dirty, foreign fuel?" says Jerry Taylor, senior fellow at the free-market Cato Institute. "The government should stay out of energy markets and let the best fuels win."
If the government is going to play a role in energy markets, there are other players who would like more attention. Supporters of solar and wind energy make the case that if the government is going to hand out subsidies and mandate use, in the name of energy independence, they should get the same kind of treatment as ethanol.
"Why are we supporting ethanol with a mandate, but not wind and solar?" says Randy Swisher, executive director of the American Wind Energy Assn. "There's a lack of consistency in policy."
The economics may be even more attractive for some of the alternatives. Advocates for plug-in hybrid vehicles, including wind and solar producers, as well as utilities, argue that they can produce the electric equivalent of a gallon of gas for less than $1, less than half the cost of ethanol-based fuels.
"The amount of subsidies provided for ethanol could easily be used to switch this country to plug-in hybrid vehicles, and ultimately have a much greater impact on reducing oil dependency," says Jigar Shah, CEO of SunEdison, a solar power company.
Ground-Breaking Ceremony
Ethanol producers say they offer a viable alternative to traditional fossil fuels that is becoming more affordable over time. "We're producing a clean domestic renewable fuel that stands on its own in value and price," says Gordon Ommen, CEO of US BioEnergy (USBE), which just surpassed VeraSun Energy (VSE) to be the second-largest producer of corn-based ethanol after Archer Daniels Midland.
US BioEnergy had a ground-breaking ceremony at its Dyersville (Iowa) ethanol plant on Mar. 16. With three plants in production and five more under construction, US BioEnergy currently has a capacity of 300 million gallons per year.
Bush's point man on alternative energy, Andy Karsner, predicts that the opposition to ethanol will fade over time. Karsner says that while the government is now supporting ethanol made from corn, by 2012 there will be technology to make ethanol from garbage, switch grass, and other nonfood products.
This so-called "cellulosic" ethanol will relieve the pressure by decreasing demand for corn. "Corn ethanol is a necessary precursor to larger scaling of ethanol and alternative fuels in general," says Karsner, whose official title is assistant secretary of the Energy Dept.'s Office of Energy Efficiency & Renewable Energy (see BusinessWeek.com, 3/2/07, "The Point Man for Bush's Green Push").
In the meantime, ranchers like Hitch are concerned that there hasn't been enough thought given to the unintended consequences of the ethanol boom. He's worried that the U.S. could be developing another addiction with some serious side effects of its own.
"It's become a mania, and everyone needs to settle down, catch their breath, and look at what's really feasible," he says. "For now, it's just runaway."
Copyright 2000-2007 by The McGraw-Hill Companies Inc
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Education sector most efficient says Consumption of Energy Survey 2005
The education sector consumed energy at a lower rate than most other businesses, institutions and organizations in 2005, according to data from the latest Commercial and Institutional Consumption of Energy Survey. This survey collected aggregate information on the types and quantities of energy consumed by commercial businesses and institutions in 2005.
Nationally, the survey found that religious organizations and "other services" had the lowest gross energy intensity at 1.25 gigajoules per square metre followed by schools with a gross energy intensity of 1.35 gigajoules per square metre. Hotels and restaurants continued to have the highest gross energy intensity at 2.31 gigajoules per square metre.
Hotel and restaurant energy intensities were lowest in Atlantic Canada and Quebec at 1.74 gigajoules per square metre and 1.78 gigajoules per square metre respectively. British Columbia had the highest energy intensity for this sector at 3.13 gigajoules per square metre, but also had the lowest energy intensity of only 1.02 gigajoules per square metre for the education sector in Canada.
Gross energy intensity is the total energy consumed by type of business, institution or organization at the national or provincial level, divided by the corresponding national or provincial floor area total in square metres.
Differences in gross energy intensity may be explained by the different natures of business conducted by different sectors. Sectors with higher energy intensities tend to consist of establishments with longer operating hours or establishments that operate large pieces of machinery as part of their normal activities.
Conversely, sectors with lower energy intensities tend to consist of establishments that do not operate beyond core business hours or have little in the way of machinery besides general office equipment.
This survey was conducted on behalf of the Office of Energy Efficiency at Natural Resources Canada. Based upon the results, Natural Resources Canada will produce an analytical publication which will be available this summer on the Office of Energy Efficiency website.
Definitions, data sources and methods: survey number 5034.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (toll-free 1-877-679-2746, sbss-info@statcan.ca), Small Business and Special Surveys Division.
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In-demand switchgrass costs nearly twice as much as corn
By Philip Brasher
WASHINGTON, D.C. - Some Iowa farmers already know what it takes to grow crops like switchgrass for energy, and their experience raises questions about the feasibility of turning biomass into motor fuel.
The government views switchgrass and other sources of biomass as plentiful and low-cost alternatives to corn for making fuel ethanol.
But the price of the switchgrass and other feedstocks must be kept low enough so that ethanol plants can afford to buy them. The Energy Department hasn't specified a cost target for switchgrass but does have one for corn: $35 per ton.
If the experience of switchgrass growers in Iowa is a guide, ethanol plants are going to have to pay a lot more than that for switchgrass.
Farmers in four southern Iowa counties have been growing switchgrass as part of the Chariton Valley Biomass Project, which is testing the use of the crop as an alternative to coal in power generation.
What they have found is that it costs farmers about $60 a ton to grow, harvest and bale the grass, including the price of seed, fertilizer and herbicides, said John Sellers Jr., a project participant who farms near Corydon in Wayne County.
It costs another $25 for storage and transportation costs, and then farmers will need an additional $30 to $40 a ton in profit to make it worth their while, he said.
Mike Duffy, an Iowa State University economist who has analyzed the project, puts the production costs of switchgrass at $50 a ton.
"There's no $35-a-ton switchgrass," conceded Mark Downing, who analyzes bioenergy markets for the Energy Department.
Yields in the Iowa project have averaged about 3 tons per acre, way below what will be necessary to sustain an ethanol plant: 8 to 12 tons per acre, according to Downing.
His department is undertaking a study, which will include the use of satellite imagery, soil carbon measurements and climate data, to decide where it will be feasible to grow energy crops.
He said the high cost of Iowa land is a major impediment to biomass crop production in the state.
"That's going to be really tough, to get a farmer to get out of corn and produce switchgrass," he said.
Copyright © 2007, The Des Moines Register
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Israeli firm turns seaweed into green fuel by new technology
JERUSALEM - Israeli firm Seambiotic Ltd. announced recently a new technology to produce fuel from seaweed cultivated by carbon dioxide emissions from power plants, local daily Ha'aretz reported on Wednesday.
The new technology unveiled by the firm at an international conference on marine biotechnology that opened on Sunday in Eilat.
According to the report, the polluting gas, one of the main contributors to global warming, passes through a filtration process and enters a pool, where it feeds microscopic seaweed. The seaweed is used to produce fuel.
The seaweed, which is used to produce fuel, is found in the Mediterranean in small concentrations, but the carbon dioxide allows it to grow in the pools at a concentration of one million times greater.
The scientists who developed this technology said that it is possible to produce a liter of fuel for every 5 kg of seaweed and the use of carbon dioxide can also reduce the cost of production radically.
"In the scientific literature, it is stated that it is impossible to grow seaweed through the use of carbon dioxide from power plants, because of the large quantities of pollutants released from the smokestacks," director of Seambiotic Amnon Bachar was quoted by Ha'aretz as saying.
"But it appears that whoever wrote that does not know how to grow seaweed. We have found that seaweed can grow on the basis of the carbon dioxide being emitted from power plants. We get the carbon dioxide for free, and the power plant produces less pollution," he said.
The technology was developed in the experimental farm set up by Seambiotic Ltd. three years ago in the compound of the Ashkelon power plant, with the support of the Israel Electric Corporation.
Last week, the company filed a technology patent in the United States.
Copyright © 2006, The Hindu
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Energy demand down in 2005
Canada's demand for energy fell for the first time in three years in 2005, as a result of declining consumption in the nation's industrial and residential sectors.
Declines in those two key sectors offset an increase in consumption in the transportation sector, particularly fuel used to pipe natural gas, as well as a small increase in the commercial and public administration sector.
In 2005, Canada consumed 7,654 petajoules of energy, down 0.4% from 7,681 petajoules in 2004. One petajoule equals roughly the amount of energy required to operate the Montréal subway system for one year.
Energy use derived from the three main fossil fuels (natural gas, refined petroleum products and coal) declined 1.0%, as a result of reductions in demand from the pulp and paper, chemical and residential sectors.
The industrial sector, the biggest user of energy, consumed 2.6% less in 2005 than the year before. The reduction was due primarily to two industries: pulp and paper, and chemical. Historically, the industrial sector accounts for just under one-third (31%) of total energy consumption, the highest proportion of all sectors.
Demand slipped 1.1% in the residential and agriculture sector, which accounts for about 20% of total consumption.
Energy consumption increased 1.8% in the transportation sector and edged up 0.5% in the commercial and public administration sector. The transportation sector, the second largest user of energy, accounted for about 30% of final demand.
Crude oil production falls
Canadian companies produced about 146 million cubic metres of crude oil in 2005, down 2.1% over 2004. (A cubic metre contains 1,000 litres). This amounted to about 401 000 cubic metres a day.
While decreases were recorded for all types of crude oil production, the most significant decline occurred in synthetic crude oil where a facility fire hampered output throughout the first three quarters of 2005.
Production levels in the fourth quarter were strong, however, reflecting the return to normal production in the oil sands area combined with the start up of production at the White Rose Field in offshore Newfoundland and Labrador.
Alberta's oil sands remain an important source of crude oil production. In 2005, they accounted for over 39% of total crude oil and equivalent production, up slightly from 38% in 2004 and well above the proportion of 28% in 2000.
In 2005, the oil sands produced 149 000 cubic metres of oil a day. In 2006, this figure had jumped to an estimated 159 000 cubic metres of oil a day, roughly 50% of Canada's total crude oil production.
By 2010, oil sands production is forecasted to surpass 477 000 cubic metres of oil a day, or 67% of total Canadian crude oil production. Capital investment is expected to reach an estimated $11 billion in 2006 and $16 billion in 2007.
Exports of crude oil, primarily to the United States, decreased 2.4% from 2004. These exports now account for more than 62% of all Canadian production.
The US Midwest is still the most significant market for Western Canadian crude oil, consuming 57% of total exports to the United States. According to the United States Energy Information Administration, Canadian crude oil now represents 16% of total US demand for imported crude oil.
In 2005, average Canadian crude oil prices rose to more than $52 a barrel. This was a 30% increase over 2004, and more than double 1990 prices.
Natural gas production posts modest gain
Natural gas production increased 2.0% from 2004 to 2005. Despite record gas drilling activity in the last three years, production gains have been modest as a result of lower productivity from maturing wells.
Natural gas exports reached 4 066 petajoules in 2005, up 1.1% from 4 022 petajoules in 2004. Slightly higher production levels combined with lower domestic demand, due to milder weather in Canada, resulted in higher exports in 2005.
Well over half (56%) of total Canadian natural gas production goes for export. In the United States, Canadian natural gas accounts for 17% of total American demand for natural gas.
Canada's trade surplus for crude petroleum, refined petroleum and other products, natural gas, coal and electricity reached $53.0 billion in 2005, up from $43.5 billion the year before.
Marginal increase in electricity production
Electricity production from primary sources (hydro, nuclear, wind and tidal) increased 5.7% in 2005 as water conditions continued to improve in many parts of Canada. Nuclear generation posted a marginal increase in 2005.
Hydro generation accounted for 59% of electric power in 2005, the largest source. Nuclear energy provided about 14% of total Canadian electricity production.
However, in Ontario, nuclear power accounts for more than 51% of total electricity generation, enough to supply all the homes in the province.
Nationally, electricity generated using fossil fuels declined marginally in 2005, due to higher generation from primary sources and rising thermal fuel costs.
Although electricity generation from wind, solar and tidal continues to increase, total generation from these sources currently represents less than 0.5% of total generation.
Two large wind projects started up in late 2005: a 99-megawatt project located in St. Leon, Manitoba, and the 150-megawatt "Centennial project" in Swift Current, Saskatchewan.
Electricity demand increased 1.2% in 2005, mainly the result of increased demand by smelting and refining.
First decline in volumes of motor gasoline sales in 14 years
Volumes of motor gasoline sales declined in 2005 for the first time since 1991, possibly the result of soaring prices at the pump. Canadian drivers consumed more than 40 billion litres of motor gasoline, down slightly from 2004 levels.
Gasoline prices across Canada peaked in September 2005. In Montréal, prices reached an average of 118.5 cents per litre for regular unleaded at self-service stations. In Toronto, they averaged 107.2 cents, in Edmonton 102.2 cents and in Vancouver 112.7 cents.
Total demand for all refined petroleum products increased marginally in 2005 over 2004 levels.
Coal production, exports and consumption decreases
Coal production slipped 1.0% in 2005, the result of slightly higher imports.
Final demand for coal by the manufacturing sector declined 1.4% from 2004. Exports of coal fell 6.2%, due primarily to lower demand for Canadian coal from Japan.
Saskatchewan fastest growing province in energy consumption
Energy consumption declined faster than the national average in six provinces: British Columbia, Prince Edward Island, New Brunswick, Nova Scotia, Quebec and Alberta.
Saskatchewan's growth in consumption led the pack, increasing 2.9% from 2004. Higher demand for natural resource-based products, combined with agricultural gains, contributed more to the growth of the economy than any other industry.
Energy use by all sectors, or "final demand", declined 3.8% in Prince Edward Island; 2.2% in British Columbia, 1.1% in Alberta and Nova Scotia, 0.6% in Quebec, and 0.5% in New Brunswick.
The decline in Alberta was due primarily to lower energy use in the oil-producing province's pulp and paper and chemical sectors. Alberta accounted for 18% of total national consumption.
Energy consumption edged up 0.2% in Ontario, which accounted for over 34% of the country's entire energy demand. Consumption in Quebec fell slightly, putting its share at 21%.
Note to readers
In addition to the estimates for 2005, revised data are also available for the reference year 2004.
Factors influencing revisions include late receipt of company data and revisions to previously estimated or reported data. The revised data are available in the appropriate CANSIM tables.
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Mondial Energy Wins Prestigious European Award
TORONTO - Mondial Energy Inc. has been named the only winner for Canada of the prestigious European Energy Globe Award. Mondial is being recognized as an innovative renewable energy utility company. The award ceremony will take place at the European Parliament in Brussels on the evening of April 11, 2007.
In 2006 more than 700 projects from 95 countries participated in the ENERGY GLOBE AWARD competition. On April 11, 2007 the current highlight of this private Austrian initiative will take place at the Hemicycle of the European Parliament in Brussels. This follows gala ceremonies at the Expo in Japan in 2005 and in Vancouver, Canada at the Globe Fair in 2006. The major decision makers in Europe will attend this TV gala, which will be broadcast throughout Europe and internationally by 3sat and the EBU reaching more than three billion households.
The ENERGY GLOBE AWARDS are an invaluable contribution to helping find solutions to a better future as well as building awareness regarding the many obstacles we currently have to overcome in order to help our endangered environment.
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Canada's New Government invests in renewable energy for new homes
ST. THOMAS - Joe Preston, Member of Parliament for Elgin-Middlesex-London, on behalf of the Honourable Gary Lunn, Minister of Natural Resources, announced today that the Government will provide funding of $40,000 over two years for a pilot project to incorporate renewable energy in new homes.
"Canada's New Government is proud to be a partner in this project, which
will showcase how progressive builders can promote renewable energy technology
in the homes they build," said Mr. Preston. "Its success will raise interest
in the home-building industry and will hopefully lead many other builders to
promote renewable energy."
Over the next 18 months, Doug Tarry Homes Limited, a home builder in
St. Thomas, Ontario, will build about 100 "Solar Ready" homes. These homes
will have the rough-in for solar hot-water panels done during construction.
Home buyers can choose to have the panels installed immediately or wait and
install them at a later date at a reduced retrofit cost because the homes were
built to be ready for solar energy. Solar Ready also gives buyers of new homes
a more efficient and environmentally responsible home choice.
"This project will allow home buyers to save from 40 to 50 percent on
their home heating and hot-water energy bills, when compared with homes built
to conventional codes in Ontario," said Doug Tarry Jr., Director of Marketing
and co-owner of Doug Tarry Homes.
Doug Tarry Homes already meets ENERGY STAR(R) levels of performance in
its new homes. ENERGY STAR is the international symbol of energy efficiency.
The ENERGY STAR Initiative in Canada is administered by Natural Resources
Canada.
Natural Resources Canada's funding will go toward integrating Solar Ready
into the construction process and to promote Solar Ready to builders and
buyers of new homes.
This announcement highlights the Government of Canada's commitment to
reducing greenhouse gas and air pollutant emissions - delivering real change
and real results for Canadians.
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Ethanol wrong biofuel option say US experts in New Zealand
By Christine Nikiel
New Zealand's focus on ethanol production as a replacement for fossil fuels could be misplaced, visiting US experts say.
Within 15 years, the biofuel of choice would not be ethanol-based, Professor Basil Nikolau of the Iowa State University said at a biotech conference in Auckland yesterday.
Nikolau, who specialises in biochemistry, biophysics and molecular biology, said biodiesel, made from oils, was more like petroleum than ethanol.
And problems in the production and transportation of ethanol created extra costs, he said.
Ethanol could be diluted in water, and so could not be transported through pipelines.
And producing the biofuel used more energy than it created.
Jeff Stroburg, chief executive of Renewable Energy Group, said demand for biodiesel in the US had grown from 94 million litres in 2004 to nearly 760 million litres last year.
He predicted that by 2010, demand would reach have reached 3.8 billion litres, far more than the demand for ethanol or petroleum-based diesel.
But Jim Watson, founder of Genesis Research, which is conducting a large ethanol experiment in Taupo through its subsidiary BioJoule, said the American view was "biased".
Corn was a lucrative crop grown in the US for home consumption and export and there was competition for the land needed to grow corn either as a food or to produce ethanol.
People were not keen to see land used for growing food taken over to grow crops for biofuels.
For that reason, BioJoule focused on producing cellulosic ethanol produced from woody material that could be grown on "marginal" land.
To replace diesel supply with biodiesel required quality land.
"If New Zealand did this we'd have the same problem as the US - using high-quality land might mean replacing a food crop," Watson said.
The world needed biodiesel and ethanol produced from a range of sources, Watson said.
In February the Government said that from next year it would force oil companies to meet a biofuels quota of 0.53 per cent of total fuel sales, rising to 3.4 per cent by 2012.
Genesis Research offshoot Biojoule is seeking $5 million for a trial plant that will produce ethanol from shrubby willows it is growing near Taupo.
Local researcher Scion and state-owned AgResearch have teamed up with San Diego company Diversa to study how to use enzymes to convert wood into sugars that can be fermented and refined into ethanol.
Genesis, Scion and Diversa have said the forestry industry could provide ethanol for the three billion litres of petrol New Zealand uses each year.
Copyright ©2007, APN Holdings NZ Limited
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Giving energy waste the SLPP: Ontario mines partner to improve energy efficiency and save money
By Bryan Young
Do you have a leaky hot water tap in your home? A drop here, a drop there…it's no big deal, right?
Wrong! A leaky tap, at one drop per second, wastes 800 litres of water per month, not to mention the extra money you're spending to heat it. It all adds up to the drip, drip, drip of your energy dollars going right down the drain. Fixing it is just as easy as replacing a rubber washer that costs a few pennies.
In much the same way, the Ontario Mining Association (OMA) and Ontario Power Authority (OPA) have teamed up to fix another kind of small, steady leak that wastes energy and costs mines thousands of dollars a year. In this case, it isn't water but compressed air that is the energy-guzzling culprit.
The Sustainable Leak Prevention Program (SLPP) now underway at three northern Ontario mines will improve electricity efficiency, could help all mining companies save hundreds of thousands of dollars in their operations, and benefit other industries in Ontario that use compressed air in their operations.
Ontario's mining industry spends more than $500 million each year for energy, and this ranges from 15 to 30% of operating costs depending on the type of mining operation. Compressed air systems, found in underground mines, are one of the largest contributors to electricity costs. Even small air leaks in these systems can increase electricity costs substantially by causing compressors to overwork, leading to wasted electricity and higher operating costs.
For example, a single tiny hole equal to 1/8" in diameter wastes air at a rate of about 12 litres per second. Even at the low rate of 4 cents/KWh, this leak alone can waste more than $1000 per year - and those in the industry know that most systems that use compressed air have many leaks. Some plants experience a leak rate equal to 20 per cent of total compressed air production capacity.
In a $532,000.00 project, the Ontario Mining Association will oversee audits of compressed air systems at the Williams Mine in Hemlo near Marathon, CVRD Inco's South Mine in Sudbury and FNX's McCreedy West Mine also in Sudbury.
At the Williams mine, one of the largest gold-producing mines in Canada, Employee/Public Relations Coordinator Roger Souckey says, "Compressed air systems represent one of our greatest areas of operating and energy inefficiency." He notes, "The longer a leak goes undetected, the more compressed air and electricity we waste, and the less efficiently our equipment operates. A key deliverable of the program will be establishing a trigger mechanism that will prevent leaks by telling us that preventive maintenance is required."
The Ontario Power Authority was created to help develop a sustainable, competitive and reliable electricity system for the benefit of Ontario consumers, as well as to help build a "culture of conservation" in the province. Funding for 41 percent of the project comes from OPA's Conservation Fund, with the balance provided by the OMA and participating sites.
"It is our hope that this project will further the cause of energy conservation both at work, and then at home, as Ontario's mining workforce becomes more aware of the importance of saving energy in Ontario not just to help the environment, but support industry through greater energy efficiency," says Peter Love, OPA's Chief Energy Conservation Officer.
The Conservation Fund was established to mobilize as many sectors of the Ontario economy as possible to embrace a culture of conservation. The Fund focuses on enabling conservation education and electricity reduction pilot projects. The key learning points from each of the Conservation Fund programs then shared across all sectors help spark similar programs in other sectors or to build pilot programs into full-scale initiatives.
The Fund needs help designing future programs. Partnering with groups like the OMA helps better promote energy efficiency and a culture of conservation in Ontario. These projects also help build a community of practice which will lead to better conservation programs for everyone.
After little more than a year, the Ontario Power Authority's Conservation Fund has provided $2.5 million to 37 electricity conservation projects in a variety of sectors of the Ontario economy.
"In addition to identifying benchmarks and developing 'best practices' for the mining industry to help them remain competitive in a global economy, one of the key components of this program is also the promotion of a culture of conservation within the mining industry itself," says Project Manager Ivor da Cunha of LeapFrog Energy Technologies Inc.
"Repairing compressed air leaks in the mine is a cost-effective way to increase energy efficiencies and to ensure ongoing low-cost nickel production," says Dave Tomini, Divisional Energy Coordinator at CVRD Inco. "This initiative is in line with our continuing efforts to build a sustainable future."
Dave Secord, Senior Maintenance Coordinator at FNX McCreedy West mine says, "With training, and the management of this program, we are hoping to detect the problems right away and turn this into a cost saving in electricity as well as maintenance on our compressors."
Key findings of the audits will be presented to the OMA in March, with a final report submitted to OPA in May.
Bryan Young is the Manager of the Conservation Fund at the Ontario Power Authority. The Conservation Fund was established in 2005 to provide funding for action-oriented, sector-specific electricity conservation pilot projects that help build a culture of conservation in Ontario.
Since 2005, the Conservation Fund has provided $2.5 million to 37 projects in a wide variety of sectors including mining, forestry, agriculture, small business, schools, hospitals and religious institutions. Every dollar of the funding has leveraged over two dollars in partner support. The 2007 Conservation Fund budget is $3 million. For more information, visit www.powerauthority.on.ca.
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Biotech crops reduce emissions of greenhouse gas CO2
NEW YORK - Genetically Modified crops increase farm output, improve farmers' income and significantly reduce greenhouse gas emissions, according to a new study.
In 2005, biotech crops planted on 87 million hectares of land around the world reduced carbon dioxide emissions by nine billion kg, which is equivalent to removing nearly four million family cars from the road for an entire year, according to a study by Graham Brookes, director of PG Economics Limited of Dorchester, UK.
The study "GM Crops: The First 10 Years -- Global Socio-economic and Environmental Impacts" was commissioned by Monsanto, the world's leading provider of biotech crops.
Herbicide-tolerant biotech crops planted using conservation tillage practices helped to retain carbon in the soil, as plowing allows naturally occurring carbon dioxide to escape into the air, according to the study published in peer-reviewed journal AgBioForum.
Also, Insect-resistant crops dramatically reduced the need for spraying, while also significantly reducing farm fuel usage, it says.
"Simply put, biotech crops have changed the way people farm," Brookes said.
The study estimates that since their commercialisation in 1996, biotech crops have saved farmers 1,679 million litres of fuel through reduced field operations -- eliminating 4,613 million kg of carbon dioxide emissions.
Worldwide, use of biotech crops decreased the environmental impact of crop production associated with pesticide use by more than 15 per cent, the study says.
Since 1996, herbicide tolerant and insect-resistant biotech crops reduced pesticide sprayings by 224 million kg of active ingredient -- a 6.9 per cent reduction worldwide.
According to Brookes' estimates, biotech crops contributed $5 billion in net farm-level economic benefit to farmers.
Combining biotech insect-resistant and herbicide-tolerant traits in corn has boosted farm income by more than $3.1 billion since the traits' introductions, Brookes says.
According to a forecast by the International Service for the Acquisition of Agri-Biotech Applications, biotech crops will be under cultivation in 40 countries by 2015 with at least 20 million farmers planting 200 million acres annually.
© 2006, The Hindu
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Biofuels boom raises tough questions
By Matt Crenson
America is drunk on ethanol. Farmers in the Midwest are sending billions of bushels of corn to refineries that turn it into billions of gallons of fuel. Automakers in Detroit have already built millions of cars, trucks and SUVs that can run on it, and are committed to making millions more. In Washington, politicians have approved generous subsidies for companies that make ethanol.
And just this week, President Bush arranged with Brazil's President Luiz Inacio Lula da Silva for their countries to share ethanol production technology.
Even alternative fuel aficionados are surprised at the nation's sudden enthusiasm for grain alcohol.
"It's coming on dramatically; more rapidly than anyone had expected," said Nathanael Greene, a senior policy analyst at the Natural Resources Defense Council.
You'd think that would be good news, but it actually worries a lot of people.
The problem is, ethanol really isn't ready for prime time. The only economical way to make ethanol right now is with corn, which means the burgeoning industry is literally eating America's lunch, not to mention its breakfast and dinner. And though ethanol from corn may have some minor benefits with regard to energy independence, most analysts conclude its environmental benefits are questionable at best.
Proponents acknowledge the drawbacks of corn-based ethanol, but they believe it can help wean America off imported oil the way methadone helps a junkie kick heroin. It may not be ideal, but ethanol could help the country make the necessary and difficult transition to an environmentally and economically sustainable future.
There are many questions about ethanol's place in America's energy future. Some are easily answered; others, not so much.
What is ethanol?
Ethanol is moonshine. Hooch. Rotgut. White lightning. That explains why the last time Americans produced it in any appreciable amount was during Prohibition. Today, just like back then, virtually all the ethanol produced in the United States comes from corn that is fermented and then distilled to produce pure grain alcohol.
Will my car run on it?
Any car will burn gasoline mixed with a small amount of ethanol. But cars must be equipped with special equipment to burn fuel that is more than about 10 percent ethanol. All three of the major American automakers are already producing flex-fuel cars that can run on either gasoline or E85, a mix of 85 percent ethanol and 15 percent gasoline. Thanks to incentives from the federal government, they have committed to having half the cars they produce run on either E85 or biodiesel by 2012.
How fast is ethanol production growing?
About as fast as farmers can grow the corn to make it. According to the Renewable Fuels Association, a trade group, ethanol production has doubled in the past three years, reaching nearly 5 billion gallons in 2006. With 113 ethanol plants currently operating and 78 more under construction, the country's ethanol output is expected to double again in less than two years.
Is ethanol better than gasoline?
For all the environmental and economic troubles it causes, gasoline turns out to be a remarkably efficient automobile fuel. The energy required to pump crude out of the ground, refine it and transport it from oil well to gas tank is about 6 percent of the energy in the gasoline itself.
Ethanol is much less efficient, especially when it is made from corn. Just growing corn requires expending energy - plowing, planting, fertilizing and harvesting all require machinery that burns fossil fuel. Modern agriculture relies on large amounts of fertilizer and pesticides, both of which are produced by methods that consume fossil fuels. Then there's the cost of transporting the corn to an ethanol plant, where the fermentation and distillation processes consume yet more energy. Finally, there's the cost of transporting the fuel to filling stations. And because ethanol is more corrosive than gasoline, it can't be pumped through relatively efficient pipelines, but must be transported by rail or tanker truck.
In the end, even the most generous analysts estimate that it takes the energy equivalent of three gallons of ethanol to make four gallons of the stuff. Some even argue that it takes more energy to produce ethanol from corn than you get out of it, but most agricultural economists think that's a stretch.
But aren't there environmental benefits to ethanol?
If you make ethanol from corn, the environmental benefits are limited. When you consider the greenhouse gases that are released in the growing and refining process, corn-based ethanol is only slightly better with regard to global warming than gasoline. Growing corn also requires the use of pesticides and fertilizers that cause soil and water pollution.
The environmental benefit of corn-based ethanol is felt mostly around the tailpipe. When blended into gasoline in small amounts, ethanol causes the fuel to generate less smog-producing carbon monoxide. That has made it popular in smoggy cities like Los Angeles.
What about ethanol's economic benefits?
Making ethanol is so profitable, thanks to government subsidies and continued high oil prices, that plants are proliferating throughout the Corn Belt. Iowa, the nation's top corn-producing state, is projected to have so many ethanol plants by 2008 it could easily find itself importing corn in order to feed them.
But that depends on the Invisible Hand. Making ethanol is profitable when oil is costly and corn is cheap. And the 51 cent-a-gallon federal subsidy doesn't hurt. But oil prices are off from last year's peaks and corn has doubled in price over the past year, from about $2 to $4 a bushel, thanks mostly to demand from ethanol producers.
High corn prices are causing social unrest in Mexico, where the government has tried to mollify angry consumers by slapping price controls on tortillas. Lester R. Brown, president of the Earth Policy Institute, predicts food riots in other major corn-importing countries if something isn't done.
U.S. consumers will soon feel the effects of high corn prices as well, if they haven't already, because virtually everything Americans put in their mouths starts as corn. There's corn flakes, corn chips, corn nuts, and hundreds of other processed foods that don't even have the word corn in them. There's corn in the occasional pint of beer and shot of whisky. And don't forget high fructose corn syrup, a sweetener that is added to soft drinks, baked goods, candy and a lot of things that aren't even sweet.
Some freaks even eat it off the cob.
It's true that animals eat more than half of the corn produced in America; guess who eats them? On Friday the Agriculture Department announced that beef, pork and chicken will soon cost consumers more thanks to the demand of ethanol for corn.
It's also true that there's a difference between edible sweet corn and the feed corn that's used for ethanol production. But because farmers try to grow the most profitable crop they can, higher prices for feed corn tend to discourage the production of sweet corn. That decreases its supply, driving the price of sweet corn up, too.
In fact, many agricultural economists believe rising demand for feed corn has squeezed the supply - and boosted the price - of not just sweet corn but also wheat, soybeans and several other crops.
America's appetite for corn is enormous. But Americans consume so much gasoline that all the corn in the world couldn't make enough ethanol to slake the nation's lust for transportation fuels. Last year ethanol production used 12 percent of the U.S. corn harvest, but it replaced only 2.8 percent of the nation's gasoline consumption.
"If we were to adopt automobile fuel efficiency standards to increase efficiency by 20 percent, that would contribute as much as converting the entire U.S. grain harvest into ethanol," Brown said.
Isn't there a better renewable fuel substitute for gasoline?
Most experts think it will take an array of renewable energy technologies to replace fossil fuels. Ethanol's main drawbacks come not from the nature of the fuel itself, but from the fact that it is made using a critical component of the world's food supply. Ethanol would be more beneficial both environmentally and economically if scientists could figure out how to make it from a nonfood plant that could be grown without the need for fertilizers, pesticides and other inputs. Researchers are currently working on methods to do just that, making ethanol from the cellulose in a wide variety of plants, including poplar trees, switchgrass and cornstalks.
But plant cellulose is more difficult to break down than the starch in corn kernels. That's why people eat corn instead of grass. Plus it tastes better.
There are also technical hurdles related to separating, digesting and fermenting the cellulose fiber. Though it can be done, making ethanol from cellulose-rich material costs at least twice as much as making it from corn.
How long will it take before cellulosic ethanol is competitive with corn ethanol and gasoline?
Some experts estimate that it will take 10 to 15 years before cellulosic ethanol becomes competitive. But Mitch Mandich, CEO of Range Fuels, thinks it will be a lot sooner than that. The Colorado-based company has started building a cellulosic ethanol plant in Georgia that converts wood chips and other waste left behind by the forest products industry. Another company, Iogen Corp., has been producing cellulosic ethanol from wheat, oat and barley straw for several years at a demonstration plant in Ottawa, Canada.
How much more efficient would cellulosic ethanol be compared to corn ethanol?
Studies suggest that cellulosic ethanol could yield at least four to six times the energy expended to produce it. It would also produce less greenhouse gas emissions than corn-based ethanol because much of the energy needed to refine it could come not from fossil fuels, but from burning other chemical components of the very same plants that contained the cellulose.
How much gasoline could cellulosic ethanol replace?
The U.S. Department of Energy estimates that the United States could produce more than a billion tons of cellulosic material annually for ethanol production, from switchgrass grown on marginal agricultural lands to wood chips and other waste produced by the timber industry. In theory, that material could produce enough ethanol to substitute for about 30 percent of the country's oil consumption.
A University of Tennessee study released in November reached similar conclusions. As much as 100 million acres of land would have to be dedicated to energy crops in order to reach the goal of substituting renewable biofuels for 25 percent of the nation's fuel consumption by 2025, the report estimated. That would be a significant fraction of the nation's 800 million acres of cultivable land, the study's authors said, but not enough to cause disruptions in agricultural markets.
"There really aren't any losers," said University of Tennessee agricultural economist Burton English.
Really? No Losers at all?
There might be losers. Simple economics dictates that if farmers find it more profitable to grow switchgrass rather than corn, soy or cotton, the price of those commodities is bound to rise in response to falling supply.
"You can produce a lot of ethanol from cellulose without competing with food," said Wallace Tyner, an agricultural economist at Purdue University. "But if you want to get half your fuel supply from it you will compete with food agriculture."
There may also be ecological impacts. The government currently pays farmers not to farm about 35 million acres of conservation land, mostly in the Midwest. Those fallow tracts provide valuable habitat for wildlife, especially birds. Though switchgrass is a good home for most birds, if it became profitable to grow it or another energy crop on conservation land some species could decline.
Will Ethanol solve all our problems?
Ethanol is certainly a valuable tool in our efforts to address the economic and environmental problems associated with fossil fuels. But even the most optimistic projections suggest it can only replace a fraction of the 140 billion gallons of gasoline that Americans consume every year. It will take a mix of technologies to achieve energy independence and reduce the country's production of greenhouse gases.
"I think we're in a very interesting era. We are recognizing a problem and we are finding lots of potential solutions," said David Tilman, an ecologist at the University of Minnesota.
But if we're serious about achieving energy independence and mitigating global warming, Tilman and other experts said, one of those solutions must be energy conservation.
That means doubling the fuel economy of our automobiles, expanding mass transit and decreasing the amount of energy it takes to light, heat and cool our buildings. Without such measures, ethanol and other innovations will make little more than a dent in the nation's fossil fuel consumption.
Copyright 2006 Associated Press
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Biofuels: An advisable strategy?
Biofuels have been an increasingly hot topic on the discussion table in the last few years. The main argument behind the policies in favour of biofuels is based on the idea that biofuels would not increase the concentration of greenhouse gases in the atmosphere. However, a more careful analysis of the life cycle of biodiesel reveals that the energy (and CO2) savings is not so high as expected. It might even be negative.
In 2003 the European Union introduced a Directive suggesting that Member states should increase the share of biofuels in the energy used for transport to 2% by 2005 and 5.75% by 2010.
In 2005 the target was not reached and it will probably not be reached in 2010 either (we are in 2006 at approximately 0.8%), but in any case, the Directive showed the great interest that the European Commission places on biofuels as a way to solve many problems at once. The new European energy strategy, presented on 10th January 2007, establishes that biofuels should represent at least 10% of the energy used for transport .
Biofuels are not competitive with fossil fuel-derived products if left to the market. In order to make their price similar to those of petrol and diesel, they need to be subsidized. In Europe, biofuels are subsidized in three ways:
Agricultural subsidies, mainly granted within the framework of the Common Agricultural Policy
Total or partial de-taxation, which is indispensable, because energy taxes account for approximately half of the final price of petrol and diesel
Biofuels obligations, which establish that the fuels sold at the pump must contain a given percentage of biofuels
These three political measures need financial means, which are paid for by the European Commission (agricultural subsidies), by the governments (reduced energy revenues), and by car drivers (increase in the final fuel price). For this reason, an integrated analysis is needed in order to discuss whether investing public resources in biofuels and employing a large extension of agricultural land is the most advisable strategy to solve the problems associated with fossil fuels.
The main argument behind the policies in favour of biofuels is based on the idea that biofuels would not increase the concentration of greenhouse gases in the atmosphere. In fact, the amount of carbon dioxide emitted by biodiesel in the combustion phase is the same as that absorbed by the plant during its growth through photosynthesis, resulting in a neutral carbon budget. Moreover, substituting part of the oil products with biofuels would reduce the European energy dependency and increase energy security.
However, a more careful analysis of the life cycle of biodiesel reveals that the energy (and CO2) savings is not so high as it might seem at first sight, and in some cases might even be negative. In fact, the raw materials for biofuels are normally obtained with intensive agriculture, which imply a high use of fertilizers, pesticides and machinery. The reason is that, with less intensive agricultural methods, the yield would be lower and the land requirement and the costs would be higher. Also, fossil fuels are used in the processing phase (oil pressing, trans-esterification) and for transporting the oil seeds to the processing plant and from there to the final users.
In any case, even if the objective of the Directive were met, the savings would not be significant. In fact, since the transport sector accounts for 30% of the final energy consumption, the 5.75% of the fuels for transport corresponds to 1.8% of the final consumption. Taking into account that this amount requires the indirect use of fossil fuels, the final savings would be even lower.
For example, considering a very optimistic output/input ratio (the biodiesel produced using one unit of fossil fuels) of 2.5 , we obtain that reaching the 5.75% percentage (approximately 20 million tons of oil equivalent) would imply saving around 36 million tons of CO2 equivalent, i.e., less than 1% of the European Union emissions in 2004 (4,228 million tons CO2) If we take into account the emissions related to the transport of raw materials that are imported and the imports of food crops that would be substituted by energy farming, the savings would be even less, and if the oil seeds are imported from outside Europe possibly even negative.
Another point that is often raised to promote biofuels is urban pollution. Biofuels are not only seen as a "green" fuel on a global scale (reduction of greenhouse effect) but also on a local scale. They would contribute to reducing traffic contamination, and therefore the numerous ailments associated with it. In reality, the advantages from this point of view are very modest. For example, according to a study of the USA Environmental Protection Agency (2002), if diesel is replaced with a blend of 20% biodiesel (B20), Nitrogen Oxides (NOx) would increase by 2%, particulate matter (PM), unburnt Hydrocarbons (HC) and Carbon Monoxide (CO) would decrease by respectively 10.1%, 21.1% and 11% . Therefore, it can be assumed that with a 5.75% blend, the reduction in PM, HC and CO would be respectively 3%, 6% and 3% (and the increase in NOx would be negligible).
Against the modest advantages (a small substitution of fossil fuels and a slight reduction of some contaminants with respect to diesel), the disadvantages of a large-scale biodiesel production are apparent.
Due to the low yield, the land requirement is enormous. In the Biomass Action Plan (Annex 11) it is calculated that in order to achieve the 5.75% target (18.6 million toe biofuels), about 17 million hectares would be needed, i.e. one fifth of the European tillable land (97 million hectares). Since there is not so much marginal and abandoned land in Europe, the consequence would be the substitution of food crops and a huge increase of the food imports.
For this reason, both in the Biomass Action Plan and in the EU Strategy for Biofuels it is stressed that Europe will promote the production of raw material for biofuels in extra-European countries, where the European Commission intends to incentive energy farming.
This means that the impacts of energy farming would be exported to Southern countries. It is easily foreseeable that if the European demand for biofuels increased because of biofuel obligations and other supporting policies, Southern countries may be stimulated to replace if not food crops at least native forests with large monocultures.
Energy farming would presumably have a big role in deforestation, because pristine forests would be cut down in order to cultivate energy crops. The consequences would be, besides a worrying reduction of wild biodiversity, a decrease in soil fertility, water availability and quality, and an increase in the use of pesticides and fertilizers, as well as negative social effects like potential dislocation of local communities.
The European Directive, and in general all biodiesel promoting policies, do not only imply a competition for arable land but might also incentive plantations of palm trees, whose oil is cheaper than any other source. Palm plantations are responsible for most deforestation in South Eastern Asia and represent a real threat to the remaining native forests. Also they are responsible for a high soil erosion rate. For example, between 1985 and 2000 in Malaysia palm plantations caused 87% of the total deforestation and further 6 million hectares will be deforested to make room for palm trees . The same more or less applies to sugarcane plantations in Brazil.
Moreover, taking into account the CO2 emissions due to inter-continental transport and the increase of CO2 in the atmosphere due to deforestation (forests are CO2 sinks), the final result might be an overall increase of the greenhouse emissions instead of the whished reduction.
Another possible negative consequence is a reduction in world food availability, which can be a particularly serious problem in a context of increasing population and energy demand. A recent example is the increase in corn price in Mexico by 30% in early 2007, caused by the growing demand for corn-derived bioethanol in the USA (Mexico is a net importer of corn from the USA). Some use the term "ethanolinflation" .
Also, a large scale biodiesel production would imply a strong environmental impact in the agricultural phase: the huge monocultures of energy crops would dramatically reduce agricultural biodiversity, with strong environmental impact in terms of soil erosion, use of fertilizers and pesticides, and water requirement. Also, one of the consequences may be an increase in the use of GMOs. In fact, soybean, maize and rapeseed (among the most used raw material to produce biofuels) are respectively the first, second and fourth most important GMO crops.
Another argument often used in favour of biofuels is rural development. However, it can be argued that support to biofuels should not be used as agricultural subsidies. If the objective is to support agricultural sector, subsidies should be granted to organic agriculture and landscape protection.
Concluding, using public funding to support a large scale biofuel production is not an advisable strategy. Obviously, these considerations do not apply to used oil or agricultural residue recycling, nor small-scale niche productions, all of which may be good strategies, instead.
Summing up, biodiesel cannot contribute to the solution of the problems related to the high dependency of our economy on fossil fuels. The idea that biodiesel could be a solution for the energy crisis is not only false, but also dangerous. In fact, it might favour an attitude of technological optimism and faith in a technological fix of the energy problem. We should never forget that if we want to reduce the use of fossil fuels there is no magic wand: the only possible solution is to modify consumption patterns.
Copyright © 1995-2007 ScienceDaily LLC
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ARISE files revised MD&A and restated June 30, 2006 and September 30, 2006 interim consolidated financial statements
WATERLOO REGION - ARISE Technologies Corporation announced that it has filed revised Management Discussion & Analysis (MD&A) and restated interim consolidated financial statements for the second quarter and six months ended June 30, 2006 and third quarter and nine months ended September 30, 2006.
The restatements were undertaken to reflect a correction made to employee
stock compensation expenses. Employee stock compensation expenses related to
stock options previously granted in the first quarter of fiscal 2006 or
granted during the second and third quarters and vested in the second or third
quarters of fiscal 2006 were not recorded in earlier financial statements due
to a clerical error. This adjustment is a non-cash item and previous stock
option plan reporting in the notes to the interim consolidated financial
statements for the second and third quarters of fiscal 2006 properly disclosed
the quantity of options granted. No other revisions to the June 30, 2006 or
September 30, 2006 MD&A or interim consolidated financial statements have been
made.
ARISE maintains a fixed stock option plan that enables it to grant
eligible officers, directors, employees or any other person, advisor, firm or
corporation engaged in management or consulting services for the Company or
any of its subsidiaries the right to acquire shares of ARISE. As a result of
these restatements, contributed capital and General and Administrative
expenses both increased by $147,054 for the quarter ended June 30, 2006 and by
$149,763 for the quarter ended September 30, 2006 ($296,817 for the nine
months ended September 30, 2006). As a result, net loss has been restated to
$582,469 for the second quarter and $1,343,130 for the six months ended June
30, 2006. Net loss has been restated to $650,919 for the third quarter and
$1,994,049 for the nine months ended September 30, 2006.
Complete copies of the Company's revised Management Discussion & Analysis
and restated interim consolidated financial statements for the second quarter
and six months ended June 30, 2006 and the third quarter and nine months ended
September 30, 2006 can be obtained from the Company's web site at
www.arisetech.com or on SEDAR at www.sedar.com.
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Woodchips to fuel European cars
A new road fuel made from woodchips and straw will be launched in Europe later this year from a pilot plant developed by Shell and Choren Industries, the German biofuel company.
The synthetic diesel, made using a novel biomass-to-liquids (BTL) process, will eradicate many of the current concerns about the biodiesel industry by using waste plant material instead of valuable food crops. The pilot plant, near Freiberg in eastern Germany, will produce 15,000 tonnes a year of synthetic diesel, dubbed Sunfuel.
Most first-generation biofuels, such as ethanol, are made from food crops such as sugar, rapeseed and palm oil. Growing concern about global warming and the consequent rising interest in alternative fuels have caused the cost of food crops to soar.
It is the second major investment in biofuels for Shell in as many weeks after it secured a $US80 million ($102 million) grant from the US Government to build a plant in Idaho, which will produce cellulosic ethanol from plant waste and straw.
Construction of a much bigger plant in Schleswig-Holstein, costing E500 million ($839 million) and capable of producing 200,000 tonnes of BTL, will begin next year in an effort to quickly bring the product up to commercial scale.
Energy companies are under huge, and increasing, political and regulatory pressure to find low-carbon alternatives to conventional road fuels.
Shell's vice-president for strategy, Ken Fisher, admitted yesterday the cost of BTL was still high compared with oil at $US60 to $US70 a barrel. But he said the company was confident it could bring down the price with much higher volumes.
Mr Fisher expects full-scale production on a commercial basis by the middle of the next decade. "We would like to be the leading provider of second-generation biofuels," he said.
The technology used to produce the biofuel is based on the Fischer-Tropsch process, invented in Germany in the 1930s to synthesise liquid fuels from coal. The process was initially uneconomic, but was used in Nazi Germany and South Africa under apartheid when the country lacked access to crude oil.
The discovery of better catalysts and the rising price of crude is improving the commercial equation.
Shell is already the biggest biofuel distributor in the world.
The cost of ethanol rose 70 per cent last year as the market reacted to the regulatory pressure to reduce carbon and sulphur emissions.
With shipping also under pressure to find alternative fuels, a US-based tugboat company has unveiled plans to give the industry's grimy workhorse an ecological makeover, adding an electric hybrid system to the tug's powerful diesel engines.
Foss Maritime, a tug and barge operator based in Seattle, is teaming with the ports of Los Angeles and Long Beach, California, to build the electric-diesel hybrid tug.
Foss's hybrid design is similar to the technology used in hybrid cars such as Toyota's Prius, though the tug's engine was more directly inspired by diesel hybrids used in some railroad vehicles.
© The Australian
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Biodiesel: From fat to fuel
By Al Greenwood
Fat goes into soap. It’s now going into diesel engines.
Companies are converting animal fat into biodiesel, a fuel that burns cleaner than petroleum-based diesel.
Smithfield Foods, which owns a packing plant in Tar Heel, also owns a plant in Cleburne, Texas, that makes biodiesel out of vegetable oil and pig fat.
A Pittsboro plant owned by Piedmont Biofuels can produce up to 1 million gallons of biodiesel annually from chicken fat and vegetable oil.
Two poultry processing plants in the Cape Fear region, House of Raeford and Mountaire Farms, did not return calls seeking comments about biodiesel.
Companies are turning to animal fat because prices are increasing for vegetable oils, the most common raw material for biodiesel, according to the National Biodiesel Board. The board is a trade group that represents the biodiesel industry. Vegetable oil prices are rising because of increasing demand for biodiesel, the board said.
In 2006, 225 million gallons of biodiesel were sold in the United States, up 67 percent from 2005 and up 800 percent from 2004, according to the board.
Rising demand was one reason why Ford dealer Bill Smith opened America’s Fuel, a service station in Southern Pines that sells biodiesel and ethanol.
Since America’s Fuel opened last year, biodiesel sales have been steady, said Grant Roper, general manager.
The company’s largest customers are Progress Energy and Lowe’s Home Improvement. Some customers who don’t live in Moore County buy biodiesel at America’s Fuel when they’re doing business in the county.
“We are very pleased with the amount of biodiesel that we sell,” Roper said.
The same year that America’s Fuel began selling biodiesel, Smithfield Foods began making it. The plant is operated by a company division, Smithfield BioEnergy. The plant can produce 10 million gallons a year, 86 percent of its design capacity, said Doug Anderson, the division’s president.
About 70 percent of the fat going into the plant is pig fat. The rest is vegetable oil, mainly from soybeans.
The plant’s biggest obstacle is finding fat, Anderson said. There already is huge demand for fat, which is made into animal feed and chemicals used in tires, resins and other consumer products. With little processing, Smithfield can burn the fat and produce steam, which is then used in processing plants. For Smithfield, fat and its byproducts are more valuable than biodiesel.
Animal fat also requires more steps before it can become biodiesel, said Jenna Higgins, spokeswoman for the National Biodiesel Board. Processors have to remove impurities from fat and convert it into a liquid. “That extra treatment is one of the reasons why the process isn’t more common,” she said.
That could change in the future, said Vernon Eidman, a professor of economics at the University of Minnesota in St. Paul. If demand for biodiesel increases, prices for vegetable oil will increase as well. Once oil prices are high enough, animal fats could become an attractive source for biodiesel, he said.
By 2012, Eidman said the county would have the capacity to produce about 1 billion gallons of biodiesel, half of which could come from animal fat. Inedible poultry fat and tallow could provide much of that extra fat, he said. Pig fat could be another source.
However, all of the oil and fat in America can’t produce enough biodiesel to replace petroleum-based diesel, Anderson said.
In 2006, more than 50 billion gallons of biodiesel were sold in the country, according to the Energy Information Administration, a division of the U.S. Department of Energy.
“We need to figure out how to become less dependent on fossil fuels,” he said. “That’s the focus on the Smithfield BioEnergy. How can we capture the energy value of the wastes that we generate? If every company did that, we would replace more fossil fuel than any other way.”
Copyright 2007 - The Fayetteville Observer
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