Wanted: Bacterium that can eat sugar or sludge; must be team player or electrochemically active; ability to survive without oxygen, a plus. Thus might read the bacterial "job description" posted by Agricultural Research Service (ARS) and Washington University (WU) scientists, who are collaborating on ways to make microbial fuel cells more efficient and practical.

According to Mike Cotta, who leads the ARS Fermentation Biotechnology Research Unit, Peoria, Ill., the project with WU arose from a mutual interest in developing sustainable methods of producing energy that could diminish U.S. reliance on crude oil.

Cotta's team specializes in using bacteria, yeasts or other microorganisms inside bioreactors to do work, such as ferment grain sugars into fuel ethanol. At WU in St. Louis, Mo., assistant professor Lars Angenent is investigating fuel cell systems that use mixtures of bacteria to treat organic wastewater and catalyze the release of electrons and protons, which then can be used to produce electricity or hydrogen fuel.

In September 2006, the researchers pooled their labs' resources and expertise to undertake a three-year cooperative project. One resource they'll share is the ARS Peoria-based Microbial Culture Collection, which houses about 87,000 accessions of freeze-dried microbes from around the world.

Using the collection's database information, the team is searching for microbes that "eat" biomass sugars (e.g., glucose and xylose from corn stover) and are electrochemically active. That means they can transfer electrons from fuel cell sugars without help from costly chemicals called mediators. The electrons, after traveling a circuit, combine with protons in a cathode chamber, forming hydrogen, which can be burned or converted into electricity.

Bacteroides and Shewanella are among bacteria species used to start the process.

Hydrogen's appeal stems from its natural abundance and capacity to store and release energy in a nonpolluting manner. The challenge is commercially producing it from sources other than fossil fuels, which are in limited supply and nonrenewable. About 95 percent of U.S. hydrogen comes from petroleum or natural gas via a process called steam reforming.

ARS is the U.S. Department of Agriculture's chief scientific research agency.

Crop Science Society of America - Researchers have been studying fuels from biomass for years. Now, with growing dependency on foreign oils and an energy-conscious society emerging, biofuels are fast becoming part of a fuel revolution that could reach pumps all across America.

"Production of energy, such as ethanol, from sugar is more efficient than production from grains in both cost per unit and energy efficiency," Da Silva of Texas A&M University says. "Sugarcane is ranked first among all other crops for biomass production and can be a key component of biomass supply. Technology for producing ethanol from sugarcane is well established in tropical countries such as Brazil, where energy independence has been achieved."

Dr. Jorge Da Silva, associate professor of molecular genetics and plant breeding, Soil & Crop Sciences Department, Texas A&M University, "Sweet Fuel for the U.S.", will be making a presentation on biofuels on Nov. 6.

Ethanol blends are already available at some US gas stations. However, their availability varies from state to state, depending on the volume of ethanol produced. Sources of biomass for biofuel production in each state also vary widely.

"To see it everywhere, we have to make more of it on a regional basis," says Dr. Bill Rooney, professor of plant breeding and genetics, Soil & Crop Sciences Department, Texas A&M University. "The best source for biofuel in a region is contingent on the environment, growing season, water and fertility availability, stress resistance, and processing and conversion techniques. In any location, there will be several species grown for biomass."

Approximately 20 percent of grain sorghum is now used for ethanol production. Rooney is currently developing sorghum varieties specifically for bioenergy. He will discuss this topic on Nov. 7 during his talk, "Sorghum Breeding for Bioenergy Traits."

Although there is no finite development timeline, there is clearly a race for biofuels as the cost of petroleum reaches previously unimaginable levels, reserves diminish, and environmental concerns soar. If won, this race could bring about a revolution as significant as Henry Ford's creation of the Model T car.

The talks are to be given at the International Annual Meetings of the American Society of Agronomy , Crop Science Society of America, and Soil Science Society of America at the Morial Convention Center in New Orleans.

Almost 2 out of 3 "strongly agree" that energy efficient features reduce their monthly operating costs;

9 out of 10 agree that the adoption of energy efficiency will help protect the environment;

2 out of 3 agree that energy efficiency increases the resale value of their home; and

There is significantly more satisfaction with the design of a new home when energy efficient features have been offered (828 out of 1,000 on the Builder Rating on Overall Physical Design Index, compared to 676 when it's not offered).

Corey McBurney, Managing Director of EnerQuality Corporation, says, "An increasing number of builders in Ontario are choosing to participate in government backed, third party verified initiatives such as ENERGY STAR® for New Homes, the EnerGuide rating system and R-2000, to guarantee energy efficiency. These labels have become more significant in the buying decision as they provide proof that the home has met strict standards."

Of the 10 certification labels considered in the survey, ENERGY STAR for New Homes was the most widely recognized (83%), The EnerGuide rating label was second (63%) and R-2000 was third (41%).

"There is no doubt that consumers see value in investing in energy efficient features. Last year, buyers said the number one reason for purchasing energy efficient features was because of lower operating costs. This year, they put as much importance on higher quality construction as lower operating costs," said McBurney. "Home buyers are recognizing that greater care in design and construction of quality materials are needed to achieve the higher energy efficiency targets set out in the ENERGY STAR for New Homes, EnerGuide rating system and R-2000 initiatives."

Europe - Earlier we reported about a biodiesel export scheme in the US, the so-called 'B99' subsidy, which allows American producers to dump cheap biodiesel on the EU market, eroding the margins of European manufacturers. The European Biodiesel Board, the voice of the EU's biodiesel industry, announces it strongly condemns this subsidy which it calls 'unfair' and says it stands ready for legal action.

In the framework of the US Federal measures adopted in 2004, biodiesel can be subsidised up to $264 per cubic meter (300 USD/tonne, approximately €200/tonne) only by adding a 'drop' of mineral diesel to biodiesel. US producers can therefore claim the maximum subsidy for a 'B99,9' blend. Such a blend can then be exported to Europe where it is eligible to European subsidy schemes.

Since the benefit of the blender credit is not restricted to biodiesel produced and consumed on the US territory, the 2004 support provisions resulted in a surge of B99 exports to the EU. In most cases B99 blends are sold in the European market as 'pure biodiesel' and at a substantial discount (over €120-180/tonne), in some cases at a lower price than the one of the raw materials purchased by the EU industry for producing biodiesel.

The EBB estimates that some 700,000 tonnes US methyl ester have entered the EU since January 2007 (compared to only 90,000 tonnes for the whole 2006), meaning that the 1 million tonnes threshold could be reached before the end of this year. This represents a sudden and sharp increase in US exports which is only explainable by unfair support measures. At the same time, there are worries that such unfair practice will not be closed rapidly by the US Congress and that the support scheme will even be extended beyond 2008. In any case, closing the so-called 'splash and dash' loophole, whereby foreign producers (Indonesian, Malaysian) are taking advantage of the US biodiesel credit before shipping their commodities to Europe, will not solve the real problem, the EBB says.

The 'splash and dash' practice represents only a very minor share (less than 10%) of the overall B99 shipments that are reaching Europe. Most of the B99 is coming from US producers, using US raw materials. According to the EBB, the strong support measures enjoyed by US farmers explain the permanence of this unfair practice.

In most EU countries biodiesel producers are experiencing dumping competition from B99 blends. This competition is price-setting and is progressively disrupting the margins of European biodiesel producers, putting out of business most EU producers. As a result the important biodiesel industrial capacity risks remaining largely unutilised and production may start stagnating if not already declining as from this year, if urgent action is not taken.

This is why, unless the situation is solved very shortly by the US legislator, the EU biodiesel industry will initiate a comprehensive legal action against this unfair trade practice, in the form of a joint anti-dumping and anti-subsidy complaint, possibly supported by a WTO complaint.

The EU biodiesel industry is urging the European Commission to take the necessary actions to counter and then eliminate unfair 'B99' subsidised exports, a trade practice that is clearly breaching WTO rules and threatening the concept of international trade in biodiesel.

The European Biodiesel Board, also known as EBB, is a non-profit organisation established in January 1997. EBB represents the voice of the EU biodiesel industry. It gathers 56 companies and associations and aims to promote the use of biodiesel in the European Union. EBB member companies account for around 80% of EU biodiesel production.

MONTEVIDEO - Colombia, Ghana, Malaysia, Thailand and Uruguay are the top five developing countries likely to attract biodiesel investment because of their strong agricultural industries, relative stability and low debt, says a US study.

The analysis, 'A Global Comparison of National Biodiesel Production Potentials', was published online yesterday (24 October) in Environmental Science and Technology.

The analysis ranks 226 countries according to their potential to make large volumes of biodiesel at low cost.

Matt Johnston, one of the authors from the US-based University of Wisconsin-Madison, told SciDev.Net that they used data from public online sources, primarily the UN Food and Agriculture Organization, and several economic and development measurements.

The main objective was to identify developing countries already exporting large amounts of vegetable oil for profit — from palm or soybean crops for example— but who may not have considered the option of refining it into biodiesel, he said.

According to the study, these countries could improve their trade balance — the difference between a county's imports and exports — by exporting biodiesel or using the fuel to satisfy their own energy needs.

Virginia Lobato, an independent Uruguayan expert on biofuels, agrees, saying, "Colombia is privileged because it has many native oilseeds to develop a biodiesel industry without putting its food security at risk."

But she told SciDev.Net that although Uruguay has a reliable climate for farming and political and social stability, it doesn't yet grow the raw materials to produce a variety of biofuels. Lobato believes this study could influence Uruguayan policies on biodiesel, especially because is currently aiming to attract foreign capital.

Lobato warned that developing countries should not make large investments in biofuel before analysing the potential consequences, such as endangering the food security of poor people by turning food crops into biofuel.

Critics say biofuel production can also lead to deforestation as land is cleared for biofuel crop farming.

But the study authors hope that highlighting countries with potential will help them anticipate and mitigate problems.

The authors estimate that if the 119 countries in their analysis converted their exported vegetable oil to biodiesel, they could meet 4–5 per cent of the current demand for petroleum diesel.

Copyright SciDev.Net

Higher sales volume in the residential sector (+9.7%) was more than offset by a decline of 13.5% in the volume of industrial sales (including direct sales) and weakness (-5.2%) in the commercial sector.

Natural gas sales totalled 3 564 million cubic metres, down 10.4% from August 2006.

On a year-to-date basis, sales at the end of August were up 4.0% from the same eight-month period last year in the wake of across-the-board increases in all sectors.

The volume of natural gas sales to the industrial sector (including direct sales) has risen only 0.3% so far this year, while sales were up 9.8% in the residential sector and 8.7% in the commercial sector.

KUALA LUMPUR - Record oil prices have boosted demand for biofuels as consumers and companies look for cheaper and cleaner energy sources, but there are growing concerns that the various substitutes for gasoline and diesel may be doing more harm than good.

Biofuels like ethanol and biodiesel have been widely viewed as the answer to reducing greenhouse gas emissions but critics warn that a reliance on them could lead to higher food prices, deforestation and ultimately, do more damage to the environment than the fossil fuels they are supposed to replace.

'The use of food as a source of fuel may have serious implications for the demand for food if the expansion of biofuels continues,' the International Monetary Fund said Thursday.

The Washington, DC-based agency called for greater international coordination to ensure that policies promoting biofuels take account of their impact on consumer prices.

The concerns come as oil prices continue to set fresh records. The front- month futures contract spiked above 90 dollars a barrel in after-hours trade in New York earlier as mounting tensions in the Middle East exacerbated supply concerns heading into the US winter heating season.

The high oil price has pushed the price of crude palm oil, a key source of biodiesel, sharply higher in Malaysian trade.

Crude palm oil (CPO) futures traded on the Malaysian derivatives exchange hit a record on Friday, with the benchmark January contract rising to 2,784 ringgit per metric ton (1 US dollar = 3.38 ringgit).

'The rally in crude palm oil price was largely due to the record crude oil price, which would directly boost demand for biodiesel as a substitute to petroleum products,' said James Ratnam, an analyst with TA Securities.

Palm (nasdaq: PALM - news - people ) oil is cultivated from the fruit of the palm tree and is widely used in Asia as a cooking oil and to make soap. China and India are the two major buyers of Malaysian palm oil.

Fueling the boom

Malaysia and Indonesia, which together account for more than 85 percent of global palm oil production, have invested heavily in expanding their palm oil-based biofuel industries in recent years.

In Malaysia, the government had granted 92 licenses to set up biodiesel plants at end July, while the Indonesian government has allocated some 5-6 million hectares of plantation land for biofuel projects.

Demand for biofuel looks promising as developed nations switch from conventional energy sources to comply with the conditions agreed in the Kyoto Protocol, said Yeah Kim Leng, chief economist at Rating Agency Malaysia (RAM).

The international treaty requires developed countries to cut greenhouse gas emissions by at least 5 percent in the period from 2008 to 2012.

'The switch to cleaner energy will ensure rising demand for biofuel,' Yeah said.

Biofuels can be produced from any carbon source, including vegetable oils like palm oil, soybean oil and rapeseed oil. Research in the US has shown biofuels like ethanol and biodiesel could cut greenhouse gas emissions by up to 40 percent.

Oil palm has the highest oil yields among oilseed crops, which makes palm oil the most environmentally-friendly answer to rising demand, Credit Suisse said in a recent report.

'We are generally still bullish on CPO prices,' said Ting Min Tan, Malaysia- based analyst for Credit Suisse. 'If crude oil prices continue to go up, the economics of using palm oil as a biofuel improve.'

OSK Investment Bank analyst Alvin Tai said palm oil supply may exceed expectations next year as production in Indonesia recovers after the severe flooding early this year.

That could lead to a downcycle in palm oil prices in 2008, although any fall will be limited by huge demand from the biodiesel plants that have already been built and those currently being built, he said.

Environmental cost

But Malaysia-based conservation organisation Wild Asia said the focus on expanding oil palm acreage for biodiesel, will ultimately, be unsustainable given the scarcity of land.

'Aside from the environmental issues involved, I do not see how you could efficiently manage larger land holdings where there is already a cry for a reliable labor force and an aging population of skilled, experienced managers,' said Wild Asia director Reza Azmi.

'Any growth that is dependent on increasing developed land area will be of concern. New land developments are being focused where there is still cheap available land, often these are on marginal soils or in more undeveloped regions, many may be forested lands,' he said.

The Organization for Economic Cooperation and Development (OECD) has called on governments to cut their subsidies for biofuel and instead encourage research into technologies that would avoid competing for land use with food production.

It said biofuels may 'offer a cure that is worse than the disease they seek to heal'.

'The current push to expand the use of biofuels is creating unsustainable tensions that will disrupt markets without generating significant environmental benefits,' the OECD said.

'When acidification, fertilizer use, biodiversity loss and toxicity of agricultural pesticides are taken into account, the overall environmental impacts of ethanol and biodiesel can very easily exceed those of petrol and mineral diesel,' it said.

The IMF agrees that the growing use of biofuels could create imbalances.

'One country's policy to promote biofuels while protecting its farmers could increase another (likely poorer) country's import bills for food and pose additional risks to inflation or growth,' the agency said.

The effect on food prices could be eased if the United States and the European Union reduced barriers to biofuel imports from developing countries such as Brazil, 'where production is cheaper, more efficient and environmentally less damaging.'

The peak demand reductions of each of the Peak Buster Award winners have been verified by Ontario’s Independent Electricity System Operator.

On the eve of World Food Day, Jean Ziegler countered President Bush's call for an increase in biofuel, arguing farm production should be used to contain hunger instead.

"You don't have the right, even if you're battling climate change, to (perpetuate) this total massacre" caused by lack of food, he said.

Using biofuels instead of gasoline in cars is generally considered to cut CO2 emissions, although some scientists say greenhouse gases released during the production of biofuel crops can offset those gains.

The use of crops for biofuel has become especially predominant in Brazil and the United States. In March 2007, President Bush and President Luiz Inacio Lula da Silva of Brazil signed an agreement committing their countries to increased ethanol production.

Previously, algae has been considered as a means of sequestering carbon dioxide, by seeding the oceans with iron filings.

The filings prompt algae to grow, absorbing CO2 in the process, and it eventually sinks to the ocean floor when it dies, trapping the CO2 there.

The unknown risks of initiating such a project are what have prevented it occurring on a wide scale so far.

Growing algae to generate fuel is a potentially less risky solution, argues Munford, who explains that it can be used to produce oils suitable for making biodiesel, and is also more energy-dense than the land-based crops currently being used to generate this fuel. It's an idea that has considerable merit, but it is some way from being realised.

Minneapolis - The growing pains of a young industry sting some ethanol producers; with plant capacity outstripping immediate demand, many expect profits to be depressed through next year.

The ethanol party is over, at least for now.

Expensive corn and a glut of ethanol has dimmed the bonanza that swept across the corn belt last summer, raining cash on rural communities.

The industry's sobering morning-after has seen announcements in recent weeks that some of the largest players would delay building new plants, while profits everywhere have shrunk from their 2006 highs.

"It's not looking as rosy as it was a year ago," said corn farmer Jerry Larson, speaking by cell phone on Tuesday from the cab of his tractor.

Last year saw predictions of sky-high profits from turning corn into fuel for an energy-starved nation. Even domestic auto makers were pushing fuel from the Midwest, not the Mideast.

An onslaught of new plants created so much ethanol that it may take years for things to shake out, and some plants may suffer losses or delays waiting for demand to catch up.

The pain may be sharpest for newly public companies that now face expectant investors and an imbalance in ethanol prices. Some of the older players, including many of the state's farmer-owned cooperatives, are better positioned to weather the storm.

"There's a different mentality in investing between Wall Street and Main Street," said Rick Kment, an ethanol analyst with DTN, based in Omaha. The farmers have a long-term stake in the ethanol plants, while "the publicly traded companies have a mentality that says, 'What have you done for me lately?' "

For one thing, many farmer-owned co-ops paid off their plants' construction costs ahead of time.

'A hard time's coming'

"Everyone knows a hard time's coming," said Steve Core, a project developer for Fagen Inc., a Granite Falls, Minn., ethanol plant builder. "They just don't know when."

Some of the larger companies, many of which went public with a bang last summer, are now scaling back as their stock prices have taken a steady beating. VeraSun Energy Corp., of Brookings, S.D., one of the nation's largest ethanol producers, announced plans to delay construction of a 110-million-gallon-a-year plant in Reynolds, Ind. The company will continue with plans to open a similar-size plant in Welcome, Minn., according to a spokesman.

And the third-largest ethanol producer in the country, US BioEnergy, based in Inver Grove Heights, said it is holding off on new projects for now, though it will continue construction of a 100-million-gallon-a-year plant that broke ground this summer in Janesville, said company CEO Gordon Ommen.

"It's a commodity business and it's a young, immature industry and you're going to have this," Ommen said. The bottom line predicts a strong future for corn-based ethanol, he added, noting that all ethanol is currently being blended with oil-based gasoline or diesel fuel.

One plant's numbers

The slumping ethanol market can be seen in the financial results at Granite Falls Energy, which opened a 50-million-gallon ethanol plant in late 2005. Revenues in its most recent quarter fell to $23 million from $29 million a year ago. Profits plummeted from $15 million to $2 million. The company's year so far is mixed, with profits down 28 percent for the first three quarters on a revenue gain of 15 percent, to $74 million.

Still, the company paid off its construction loans in June, four years ahead of schedule.

The squeeze comes from basic economics. Ethanol futures prices have fallen from about $2.50 at the beginning of the year to $1.55 Tuesday. The price of corn, meanwhile, has soared this year, with futures trading above $4 a bushel earlier this year before falling back to below $3.50.

It may take a year for the ethanol industry to turn around, but that depends on weather, demand and the unpredictable nature of the commodities markets.

"I don't think anybody's got a very good crystal ball," said Ralph Groschen, a marketing specialist with the Minnesota Department of Agriculture.

If an ethanol project has steel in the ground today, with permits approved and stock sold, it will continue, he predicted.

The heavily subsidized industry has lobbied for even more government help, including an increased mandate for the use of ethanol in the nation's fuel supply.

"At the very least, Congress should be mandating that any state that's producing ethanol should be mandating 10-percent ethanol in gasoline," as Minnesota has done for 10 years, said independent analyst Alan Roebke, of Chaska.

Ethanol producers may benefit from another Congressional mandate, depending on what happens to the 2007 energy bill. The government already requires an increasing portion of the nation's fuel supply come from renewable fuels, from 4 billion gallons last year to 7.5 billion gallons by 2012. The Senate energy bill calls for a dramatic increase in that level, known as the Renewable Fuels Standard, to 36 billion gallons annually by 2022. A House version of the bill has no such mandate, and a compromise has yet to be worked out.

Such a mandate would far outstrip the industry's current capacity, about 7.8 billion gallons annually, according to the Renewable Fuels Association. New plants coming online will increase that by 6.4 billion gallons.

Keith Kor, general manager of the Corn Plus plant in Winnebago, Minn., remembers a similar scenario in 1995 and 1996 when high corn prices forced some plants to close. Yet the long-term effects have helped farmers.

A farmer today has several markets for corn, whereas before the ethanol industry, "he had to go to the one elevator" in his area, Kor said. "If you look back at why we did these ethanol plants, it was to drive the price of corn back up, and we've achieved that goal," he said.

By Farima Alavi

Tennessee - UT Board of Trustees approved a business partnership with Mascoma Corp., a cellulosic biofuels pioneer, on Wednesday, Sept. 19. The facility is designed to benefit Tennessee farmers and communities by providing significant economic and environmental benefits and reducing dependence on foreign oil.

"This partnership consolidates the University of Tennessee's leadership role in the development of cellulosic biofuels," Colin South, Mascoma's president, said. "We look forward to our collaboration with the university as the institution possesses some of the finest scientists and research experts in the field of bioenergy.

The university shares our vision that cellulosic ethanol will reduce our nation's reliance on foreign oil."UT Biofuels Initiative, the research and business model for the new facility, is a critical element in the Tennessee Biofuels Initiative, which could establish Tennessee as a national leader in ethanol production from cellulosic biomass, according to David Millhorn, UT Executive Vice President.

"This, in turn, should lead to new business and economic development opportunities for our farmers throughout the state," Millhorn said.

The facility will require 170 tons per day of switchgrass, which is used to make the principal product, cellulosic ethanol. Cellulosic ethanol is ethanol fuel made from switchgrass, wood chips and other non-food plant material. Using switchgrass to produce cellulosic biofuels is seen as a way to produce affordable, domestic, renewable fuel without raising food or feed costs.

Local production of switchgrass is being encouraged through an $8 million farmer incentive program, which is under development. Farmers who participate will receive high-quality switchgrass seed for planting, along with research and technical support related to switchgrass production.

The planned facility will be located in Niles Ferry Industrial Park in Vonore, 35 miles south of Knoxville. Construction is expected to begin at the end of 2007, and should be operational by 2009. The facility will be in Monroe County because the site is economical and agricultural, which is the goal for the Biofuels Initiative of using ethanol production throughout the state.

"The site sits in the heart of a productive farming region where the agricultural community has shown interest in the biofuels effort," said Dr. Kelly Tiller, director of external operations for the UT Office of Bioenergy Programs.

Bruce A. Jamerson, Mascoma's chief executive officer, said Tennessee and Mascoma have the ideal partnership for making Tennessee the first state to use switchgrass as an energy crop.

"The leadership of the University of Tennessee and its trustees have demonstrated tremendous dedication and zeal towards the advancement of biofuel technology," Jamerson said. "We look forward to working with our new colleagues as we progress through the stages that will ultimately lead to the production and distribution of a commercial product in Tennessee."

The state of Tennessee is expected to eventually produce more than 1 billion gallons of cellulosic ethanol a year, which could offset up to one-third of the state's petroleum usage.

Concerns about the environmental impact of biofuels may hinder their widespread implementation. A leaked report from the OECD has prompted environmental campaigning body Friends of the Earth to call on the EU to discard its target for using 10% of biofuels in road transport by 2020 due to concerns that the large-scale use of the alternative fuel would harm the environment. However, should widespread biofuels use be abandoned, there are currently no feasible alternatives to replace them.

Although the EU's biofuels target aims to improve security of supply and reduce carbon dioxide emissions, the OECD study reportedly warns of the ecological and humanitarian dangers linked with the increasing use of biofuels. The principal concerns of the report are that forests and wetlands will be replaced by crops cultivated for energy and that food will become more expensive.

However, if it is accepted that the biofuels option is unsustainable, the potential of other alternative fuels needs to be explored. To date, as they are regularly blended into much of Europe's standard fuel, biofuels have been the most successful alternative fuel.

Biofuels aside, autogas (LPG) and compressed natural gas (CNG) vehicles have been the most popular alternative fuels in Europe. Nevertheless, they still only account for a small proportion of the European car parc; LPG cars represent 0.9% of Europe's car parc, while CNG cars account for 0.3%. Furthermore, the majority of these are located in Italy and the Netherlands.

The fuels' availability at service stations is also much more limited than biofuels. Whereas biofuels are often offered as blends at a majority of service stations, only 12.5% of Europe's sites provide a CNG or autogas option. Again, these are mainly located in just five key markets.

Other alternatives have made an even smaller impact. Hydrogen fuel cells and electricity have also been purported by some as viable alternatives to fossil fuels. However, as yet, there are only a few mainstream hydrogen-powered cars on the market and the number of hydrogen refueling stations in Europe is limited to a handful. Electric cars currently only have a maximum range of 50 miles, making them impractical for long-distance use.

Furthermore, none of these other alternatives are perfectly clean. Carbon emissions are produced from burning CNG and LPG, as well as in the production of hydrogen cells and electricity.

In essence, it is true that biofuels do not offer the perfect alternative to petrol and diesel. However, given that biofuels are renewable and readily available, they are the best alternative developed so far.

©2007 Business Review Ltd

Last year, Park Property Management partnered with Stratacon to implement Stratacon's Smart Sub-Metering Solution in 2,500 apartment suites within the GTA. The buildings switched from bulk metering, where tenants pay for their electricity as part of their rent, to being individually metered for electricity consumption. With sub-meters, each resident pays only for their own electricity use, and in return gets a reduction to their rent.

"Individual metering helps tenants control their electricity use," says Margaret Herd of Park Property Management. "When people are aware of their use, they can control it. They tend to use less - in most cases, between 15% and 40% less, and in our case, an average of 33% less. When tenants use less, they pay less, and no longer subsidize high-use tenants."

"Electricity conservation is important to Ontario and every person, business and institution in the province," said Love. "Conserving electricity now is critical to ensuring that we can continue to enjoy a reliable supply in the future, it's beneficial to the environment, and it makes good financial sense. Taking advantage of the benefits of Smart Sub-Meters helps contribute to a culture of conservation in Ontario."

Based on the success of the original 2,500 units, Park Property is rolling out the initiative to the remaining 5,000 units in their portfolio. Park Property has communities in Toronto, Mississauga, Oakville, Etobicoke, Scarborough, Waterloo, Kitchener, Cambridge and Stratford.

Stratacon provided complete turnkey services including meter installation, consumption information for tenants, bill presentation and collection, as well as monitoring and verification. "Park is commended for taking this leadership role on their own initiative as a win-win proposition for tenants, the owners and the environment," says Ian Stewart, President of Stratacon. "Park was willing to install smart meters well in advance of government direction."

Venture capitalists are people, just like you and me. They put their pants on one leg at a time, and they're prone to making investing mistakes just like the rest of us. That said, it's hard to deny that some VCs are clearly better than others. John Doerr is one of Silicon Valley's more successful and higher-profile VCs, with big wins including early investments in Symantec, Amazon.com, and more recently, Google.

This success, I believe, gives his words some weight. So when he says, as he did in November, that global warming is real and that "cleantech" is "the biggest economic opportunity of this century," my ears -- and yours -- should perk up.

The future for cleantech

It's not that the idea of cleantech as a big investment opportunity is new. The Motley Fool, myself, and others have been writing about it for some time. Instead, it was Doerr's explanation of how cleantech can help address global warming that I found so interesting. He laid out four steps for solving global warming that, when viewed in aggregate, can provide investors with a useful framework for thinking about how to invest in cleantech.

First, Doerr said the U.S. government should adopt a mandatory goal of reducing greenhouse gas 25% by 2010. This is an ambitious goal, and even with Democrats now in control of both houses of Congress, I don't think it's likely. Nevertheless, I do believe some controls are coming, and investors can profit by understanding which companies are getting ahead of the curve and positioning themselves to benefit from government mandates. For instance, I have written before about Duke Energy's willingness to embrace mandates and explained how this progressive position -- when backed with strategic investments in cleaner coal-burning technologies and large-scale carbon sequestration and alternative fuel energy projects -- could position it ahead of its peers if and when government mandates on carbon emissions are imposed. More recently, IBM announced its Big Green Innovations initiative as a way to take advantage of this emerging market. Another way to play this opportunity is to consider investments in those companies manufacturing "negawatts" -- which attempt to decreasing energy use by better managing the demand side of the equation -- such as EnerNoc, Comverge, Itron, and Echelon.

Second, Doerr called for the adoption of renewable sources such as solar and wind power. This is hardly a bold call, but investors should give serious consideration to investments such as Motley Fool Rule Breakers recommendation Suntech Power. The company's big plans to buy $5 billion worth of solar wafers from MEMC Electronic Materials over the next 10 years is just one indication that it expects to be a leader in the growing solar cell market. Another company with growing solar resources worth considering is General Electric, which earlier this week announced it was acquiring a minority equity position in PrimeStar, a new manufacturer of thin-film solar cells.

To this end, the emerging field of thin-film photovoltaics is growing up fast, and now counts a number of promising companies among its ranks, including First Solar, Ascent Solar Technologies, Energy Conversion Devices (through its subsidiary United Solar Ovonics), and Suntech Power.

Third, Doerr said the United States needs to reinvigorate its biofuels industry. To a degree, this is already happening. Archer Daniels Midland now has a 50-million-gallon facility in production, and a few months ago, VeraSun announced plans to begin building a 30-million-gallon biodiesel facility. With the advent of tougher EPA regulations requiring cleaner-burning diesel -- which biodiesel meets -- the demand for biofuels could grow stronger in the near future. And both companies, by positioning themselves at the forefront of this biofuels "reinvigoration," could profit nicely from its expansion.

Ethanol production is also expanding rapidly, with Andersons, Aventine Renewable Energy Holdings, US BioEnergy, and Pacific Ethanol all bringing large-scale facilities online recently.

Finally, Doerr said there needs to be more investment in technologies that can remove existing carbon dioxide from the atmosphere. I'm not aware of any companies that do this now, but I know that Headwaters is actively working to develop unique nanoparticle catalysts that might soon help in this quest.

There will be no shortage of other companies working on such technologies, but I encourage investors to keep an eye on the big boys such as DuPont. Cleaning up vast amounts of carbon dioxide is a big problem, and it could well take a big company to deliver the resources necessary to make a dent.

Invest intelligently

Investors looking for a more diversified approach to investing in renewable energy might want to consider the PowerShares WilderHill Clean Energy exchange-traded fund. Alternatively, investors with a more conservative approach might want to look at companies like Chevron and PG&E. While they can't be considered pure cleantech plays, the former is now the largest producer of geothermal energy in the world, and the latter generates 12% of its electricity from renewable energy sources.

The bottom line is that, like Doerr, our Motley Fool Rule Breakers team believes cleantech will be huge. And while there will be many technologies and companies taking part in the solution, Fools should be strategic about how they want to approach the opportunity. After all, just because the opportunity is big doesn't mean everyone's profits will be, too.

If you'd like to take a look at our ongoing cleantech research at Rule Breakers and read up on the companies recommended to date, you can do so free for 30 days. Click here for more information. There is no obligation to subscribe.

©1995-2007 The Motley Fool

The proposed Bruce Line is supported by Progressive Conservative candidates Bill Murdoch (Bruce-Grey-Owen Sound) and Rob Morley (Huron-Bruce); and Liberal candidates Selwyn Hicks (Bruce-Grey-Owen Sound) and Betsy Hall (Dufferin-Caledon).

The proposed line is opposed by Green Party candidates Shane Jolley (Bruce-Grey-Owen Sound), Ben Polley (Guelph), Victoria Serda (Huron-Bruce), and Martin Lavictoire (Wellington-Halton Hills); and NDP candidate Karen Mann-Bowers (Guelph).

According to the Ontario Power Authority’s public statements, the proposed line is necessary to bring electricity from Bruce Power’s currently shutdown nuclear reactors (which are forecast to be re-started in 2009) and new wind power projects to southern Ontario. However, according to evidence filed by Hydro One at the Ontario Energy Board (OEB), this is really just media spin. In its filings, Hydro One admits that upgrades to the existing line that are already in the pipeline will be adequate to handle this additional load. Hydro One has told the OEB that the real purpose of the new line would be to increase system reliability - something that can be done much more quickly and cheaply by promoting energy conservation and small-scale local generation in southern Ontario.

And if reliability is the real issue, why is Hydro One proposing to build the new line right alongside the existing line? Wouldn’t a tornado or ice storm that knocks down the existing line also knock out the proposed new line?

The full responses of the candidates can be viewed at: www.cleanairalliance.org/.

"The need for renewable sources of energy requires a dynamic new way of thinking. The New Century Farm will research the practical things farmers can do in the future to grow, harvest and store biomass in a sustainable manner" said Dean Oestreich, DuPont vice president and general manager and president of Pioneer Hi-Bred, a DuPont business. "We’re proud to partner with Iowa State to create a demonstration farm that will be the first of its kind to integrate both the growing and processing of biomass into biofuels"

The New Century Farm will include a facility for research in biomass crop breeding, crop rotation needs and ways to efficiently store and process biomass material. It also will feature a teaching laboratory for training future scientists and farmers, and an extension facility to demonstrate the economic, social and environmental viability of bioenergy.

The funding from DuPont, through its Pioneer Hi-Bred business, will be allocated from 2008 to 2012.

"Supporting the bioeconomy is one of our highest priorities at Iowa State University, and the New Century Farm initiative is key to these efforts" ISU President Gregory Geoffroy said. "We’re delighted to have Pioneer partnering with us in this important initiative"

The New Century Farm Leaving Pioneer.com will be constructed on the ISU Agricultural Engineering and Agronomy Research Farm west of Ames, Iowa. Construction is scheduled to begin this fall, with a completion date for the main bioprocessing facility a year later.

"We are excited to be working with Pioneer and others to create a facility that will help address the opportunities and challenges of producing biofuels and bioproducts from biomass" Wendy Wintersteen, dean of the College of Agriculture and Life Sciences at ISU, said. "At the New Century Farm, the opportunity is great to integrate directly into agricultural fields the connections with harvesting, transportation, storage and processing. The New Century Farm will not only provide a venue for cutting-edge research, it will also allow us to train the next generation of scientists in this critical growth area"

DuPont is committed to delivering new technologies to the growing renewable fuels market, which includes improving biofuels production through improved seed and crop protection products; developing new technologies to allow conversion of cellulose to biofuels; and developing next-generation biofuels.

ISU’s College of Agriculture and Life Sciences is committed to using Iowa’s agricultural base to build the state’s bioeconomy through application of science to practical problems, leadership in university biorenewables programs, extension delivery of research-based information and education, and training of students for new career opportunities in the bioeconomy. The College of Agriculture and Life Sciences provides significant leadership and resources for ISU’s Office of Biorenewables Programs to achieve the goals of the universitywide Bioeconomy Initiative.

The College of Agriculture and Life Sciences Leaving Pioneer.com at Iowa State University is building on 150 years of excellence in research and education. The college educates more than 3,200 undergraduate and graduate students, supports the research programs of more than 330 faculty members in the college and across campus, and serves thousands of Iowans statewide through its extension programs. The College of Agriculture and Life Sciences offers nearly 30 different undergraduate career paths, from animal science, agronomy and horticulture to biology, genetics and environmental science, and awards $1 million in scholarships every year. The college has a 98 percent placement rate, with graduates on the job or pursuing advanced degrees. Two-thirds begin their careers in the state of Iowa.

Soon swamps, not corn, could become the hot commodity for fueling cars. Biodiesel fuel is what many people consider to be the future of transportation, as it is such a preferable alternative to gasoline. Not only is it renewable, but there is less pollution. Biodiesel is also non-toxic and it can be manufactured in the United States.

However, corn and soybean crops have taken a hit this past year because of the amount of testing done. The prices for the plants are skyrocketing because there is such a shortage. Should these tests prove successful, however, a number of long-term problems would arise, the largest being the lack of farmland available for producing food as well as fuel for vehicles.

In response to such growing concerns, many companies have begun testing a highly unlikely source — algae. Companies such as Solix Biofuels and Algae BioFuels have discovered that algae produces vegetable oil, which in turn can be refined into biodiesel the same way corn would.

Algae can be produced anywhere there are water tanks, which would save farmland. According to an article from www.smm.org, ‘‘it thrives on sunshine which is plentiful and free and pulls carbon dioxide out of the air.’’

Algae BioFuels has set up shop in Alabama for field trials in the Gulf Coast region for algae cultivation in open and closed systems.

According to the Web site www.greencarcongress.com, independent studies have demonstrated that ‘‘algae is capable of producing 30 times more oil per acre than the current crops now utilized for the production of biofuels. The algae biomass material could also supply annually up to 100,000 pounds of animal feed per acre with a 50 percent protein content.’’

‘‘We’ve got to get over this corn ethanol thing; it takes a lot of erosion,’’ said Jonathan Titus, State University at Fredonia biology professor. ‘‘The only way to solve this problem is to have better conservation – otherwise going to use the same amount of fossil fuel producing the corn that we would have otherwise.’’

For those who have been frustrated by corn prices this summer, it is with good reason. There are more than 211 million automobiles in operation across the U.S., causing corn-based ethanol production to triple since 1998. More than 20 percent of the 2007 corn crop was designated to ethanol production, and the bushel price is currently at a 10-year high

However, the repercussions of higher corn prices go beyond just the corn being consumed by people directly, but the corn used as feed for livestock.

In an article off www.grist.org, Tyson Chief Executive Officer Richard L. Bond told investors, ‘‘I believe the American consumer is going to have to pay more for protein — quite frankly, the American consumer is making a choice here...either corn for feed or corn for fuel.’’

Overall, it seems that algae may provide the solution we have been looking for.

‘‘Basically, they’re looking at macroscopic algae, taking it and commercially producing it on a large scale,’’ said Tim Strakosk, State University at Fredonia biology professor. ‘‘I think it’s definitely something to look into — more research needs to be done, but it is far more efficient than converting agriculturally based fuels. This method seems much more promising, especially if properly used.’’

Although he is impressed so far, Strakosk said the idea does have some disadvantages.

‘‘It’s not the cleanest burning fuel yet, but it definitely reduces climate emissions,’’ Strakosk said. ‘‘There’s some great biodiesel information over in Europe — they have cars that will get 80 miles to the gallon and have cleaner emissions than American hybrid cars.’’

For more information, Strakosk recommends visiting www.oilgae.com. While Americans continue to gas up now, it could be only a matter of years pond scum finds its place in the automotive industry.

Fuel from the crop is potent enough to power a jet-engined drag racer to victory. At first, making the connection between a flame-spewing jet drag car and a brilliant yellow field of canola is hard. But, when you learn that the canola can be turned into biodiesel, the picture becomes a little clearer.

Milligan Bio-Tech Inc., a company located in the heart of canola country at Foam Lake, Sask., has accomplished that transition, producing a fuel that's 100-per-cent biodiesel. That's in contrast to other biodiesel fuels, which use as much as 95 per cent petroleum diesel.

The company began exploring the possibility of developing biodiesel in the 1990s and started production in 2001.

The 2007 Corvette jet funny car provides an illustration of canola biodiesel's potential. Driven by Kevin Therres, the car rockets down a drag strip from the thrust provided by a J60 Pratt and Whitney jet engine.

"The biodiesel works very similarly to diesel," said Carl Perlinger, Milligan's business development manager. "Kevin and his crew had to make some minor adjustments to the injectors to make sure they are getting enough fuel, but I have seen it run and it works.

"The car runs the quarter mile in around 6.5 seconds at a speed of 402 kilometres per hour. He has put it up against regular jet funny cars and won."

Perlinger said the jet car garners attention for biodiesel and "shows what we can do with biodiesel and the power that can be achieved."

Fuels such as biodiesel and ethanol draw interest because they come from renewable feedstocks, in contrast to petroleum-based fuels that are refined from a depleting resource. But there are other factors that make biodiesel attractive.

"The biggest advantage to using canola biodiesel is the added lubricity," Perlinger said. "By adding lubricity, you decrease the amount of engine wear and therefore increase the longevity of the engine, we have seen.

"Canola carries unique lubricity properties that are not visible in other feedstock, therefore making canola one of, if not, the best feedstock to use for biodiesel production."

The effort to reduce emissions from petroleum-based diesel has involved removing sulphur from the fuel, but that also reduces the fuel's lubricity. That reduced lubricity has to be taken into account in designing and maintaining diesel engines.

An important consideration with diesel fuel is how well it flows in cold weather.

"Canola-based biodiesel will begin to gel at approximately minus 14 Celsius, where animal-tallow biodiesel will gel at 20C and soy-based biodiesel will gel at near 0C," Perlinger said.

He said biodiesel also cuts greenhouse-gas emissions and provides improved fuel economy. For example, Perlinger said a blend that's five-per-cent bio- diesel and 95-per-cent petro diesel reduces greenhouse-gas emissions by 17 per cent while raising fuel economy five per cent.

Concerns about growing crops for fuel production include whether there's a reduction of food production and the amount of energy needed to plant and harvest the crop.

"Canola biodiesel does have a positive energy trade-off," Perlinger said. "For every unit of energy used to produce biodiesel, two units of energy are produced."

Where biodiesel is concerned, one of its greatest promoters is singing legend Willie Nelson, who is involved in marketing a fuel called BioWillie.

Nelson "is invested heavily in biodiesel, but his interest is in Texas and using cotton-seed oil, soy and animal fat," Perlinger said. "He works very hard to promote the biodiesel industry and to drive interest in all types of biodiesel."

During a visit to Regina, Nelson stopped by the Milligan Bio-Tech booth at the Farm Progress show and didn't hesitate to support the company's efforts.

"Willie bought over 600 U.S. gallons of B100 biodiesel from us for his tour buses while he was in Regina," Perlinger said.

VANCOUVER, BRITISH COLUMBIA - Corix Utilities (Corix) has been awarded an electric meter installation contract by Southern California Edison (SCE) that is valued at US$100 million. Under the terms of the contract, Corix will hire, train and manage a deployment staff of approximately 150 union meter installers who will then exchange 4.5 million residential and small business meters served by SCE in California. The contract is subject to approval by the California Public Utilities Commission.

"This is a huge 'win' for us, as it was a very competitive bid process," said Brett Hodson, President and CEO from Corix. "It shows how competitive and successful we can be in California and the western United States, which is one of Corix's strategic goals. With the recent acquisition of the Edward S. Walsh water products company in California, we are well positioned for even greater success there in the future."

Corix's work will be part of SCE's advanced metering program - called Edison SmartConnect - that will see the deployment of 5.3 million "smart" meters to all of its residential and business customers who have less than 200 kilowatts of energy demand. The estimated capital cost of the project is US$1.3 billion, but that is less than the savings projected from the new smart metering technology. It will be able to "talk" to the coming generation of smart household devices - like thermostats - allowing customers more options for saving energy and money. All of the programs savings will be passed on to customers.

"Smart metering programs like this one are another example of how we are actually helping our partners implement sustainable solutions," added Hodson. "The end result for them - whether it is conserving energy, water or more efficient use of their infrastructure - is a lower environmental footprint."

Corix Utilities is part of the Corix Group of Companies, which is based in Vancouver, B.C. and specializes in providing infrastructure solutions in the water, wastewater and sustainable energy sectors. It has over 1000 employees in 40 locations across North America. Corix is a private company whose primary owners are the BC Investment Management Corporation and CAI Capital Management Inc., two large and stable members of the Canadian investment community who specialize in public pension funds.

Ithaca, New York - Watching grass grow is not normally the most exciting activity -- unless the future of New York's energy needs, rural economic development and reducing the human contribution to global climate change depend on it.

From the lab to the field, Cornell researchers are analyzing every aspect of some field grasses in a multidisciplinary, high-octane search for the next generation of biofuels from such cellulose feedstocks as grasses and willow trees, which can be converted to ethanol and other products.

Donald Viands, professor of plant breeding and genetics, in front of some big bluestem grass at the Cornell Agricultural Experiment Station research site in Big Flats, N.Y.

Nationally, corn is the leading source of biofuel, but in the long run, researchers say, New York will be better off developing alternative renewable sources of cellulosic ethanol that will be healthier for the environment, address energy needs and potentially create new business for rural farmers and landowners.

In the past few years, Cornell researchers have planted trial plots of field grasses -- cellulosic ethanol feedstocks -- in six sites across the state. Along with dozens of other renewable-energy research projects at the College of Agriculture and Life Sciences and the College of Engineering, the grass trials hold an important key to the future of New York's energy strategy for the 21st century.

New York Gov. Eliot Spitzer's new energy initiative calls for the state to obtain 25 percent of its energy needs from renewable resources, including biofuels, by 2013. Rising concern about global climate change is also pushing the biofuels train as a renewable "clean" energy source that could reduce reliance on fossil fuels.

If all goes well, the grass trials, funded by the federal government through the Cornell University Agricultural Experiment Station, with additional support from the New York Farm Viability Institute and the Northern New York Agricultural Development Program, will provide development tools to create a viable industry. The ultimate goal of Cornell biofuels research is to discover the best sustainable bioenergy crops for diverse bioregions and provide businesses and entrepreneurs with new technologies and systems to convert grasses, wood and other biomass to usable, renewable energy with minimal environmental impact.

"Because New York contains and is near other major population centers and has a large amount of agricultural land that could be used for producing feedstocks, it is uniquely situated to be a major player in the biofuels industry," says Donald Viands, Cornell professor of plant breeding and genetics and a lead principal investigator on the project. Cornell, with scientists from multiple disciplines, is partnering with others to provide cutting-edge research and extension activities necessary "to realize the potential of biofuels in a safe and sustainable manner," says Viands.

Interest in biofuels is so high that at a recent demonstration of grass trials at an experiment site in Big Flats in Chemung County, more than 100 people, including farmers, policy-makers and researchers, showed up on a 100-degree day for a tour of fields of big bluestem, switchgrass, coastal panic grass and other species grown in partnership with Cornell researchers.

Adding urgency to the so-called "green energy revolution" is the fact that 90 percent of New York energy needs are currently met by imported oil and natural gas, which is higher than the national average, says Joseph Laquatra, professor of design and environmental analysis. To reduce its vulnerability to high oil prices and potential supply disruptions, the state needs to develop more indigenous sources of energy.

In the long term, cellulosic ethanol and other forms of bioenergy from grasses, legumes and wood products are expected to play a significant role in energy supplies, especially in New York, where some portion of 1.5 million acres of idle and underused agricultural lands could be turned into fuel-generating crops.

Lauren Chambliss is a communications specialist with the Cornell Agricultural Experiment Station in Ithaca.

As per a recent report “Biofuel Market Worldwide (2007-2010)” published by RNCOS it has been found that the policy makers in Germany have devised various instruments for promoting the competitiveness of biofuel from domestic production.

(PRLog.Org) – These instruments are targeted towards raising Biofuel’s share to around 5.75% by the year 2010 in line with EU objective.

Brewers in Germany may be forced to raise beer prices in the coming months. Since increasing area of farmland in the country is now being used for growing subsidized crops used for obtaining bio fuels and not beer, thereby causing price rise on the ingredients of beer. Of the total 12 million hectares of farmland in Germany, almost two million is already being used to cultivate the plants that can be converted in to bio fuel. The area used to grow barley in the country is receding by nearly 5% a year.

"Many brewers have no choice but to raise their prices. They decided not to pass on the three-percentage point rise in value-added tax that came into force in Germany on Jan. 1, 2007 but in this case they have no alternative," as per Kai Schuerholt, German brewers' association’s spokesman, as reported by DW-WORLD.DE on April 23, 2007.

"Biofuels are monopolizing the land," said Manfred Weizbauer, German millers' federation’s head, which is necessitating a cut in subsidies that are granted to Bio fuel crops, as reported by DW-WORLD.DE on April 23, 2007. Bio fuel’s impact isn’t confined to beer only, bread prices may also see a rise of roughly 10% due to reduced production of grain, warned the German bakers’ federation.

As per the RNCOS report “Biofuel Market Worldwide (2007-2010)”, “Germany was the leading Bio diesel producer amongst the EU nations with its output reaching almost 1669000 Tons (2002.8 Million liter) during 2005. Germany, whose output grew by roughly 61.3% as against 2005, represents more than half of European Union Bio diesel production (52.4%).”

This research reports on “Biofuel Market Worldwide (2007-2010)”, also addresses some interesting issues for today’s Global business environment, such as the opportunities that exist for Biofuel in the global market, driving factors for the Bio fuel market worldwide, various government support programs and major Biofuel projects, and so on.

For more information visit: http://www.bharatbook.com/detail.asp?id=18047

Australian biofuel production is expected to double this year to 600 megalitres, far exceeding the Government's production target three years early.

A report by APAC Biofuel Consultants, released in Bangkok yesterday, said annual production of ethanol and biodiesel could reach 1000ML by mid-2009.

This compares with the Federal Government target of 350ML annually by 2010.

APAC's Mike Cochran said ethanol production was about 120ML at the moment.

"The number of E10 (blended ethanol and petrol) retail sites is expected to exceed 800 by the end of 2007 -- around 13 per cent of Australian service stations and almost double the number 12 months ago," he said.

"There are a number of other ethanol plants on the drawing board. If they come to fruition, ethanol production capacity could exceed 1000ML by 2011."

Mr Cochran said biodiesel production was facing high feedstock prices and commissioning difficulties.

"However the outlook is improving. The cost of major biodiesel feedstocks such as tallow, canola and imported palm oil are beginning to move down from their highs earlier this year.

"In 2006-07, biodiesel plant production capacity increased by 390ML. A further 210ML capacity is currently under construction, expected to be fully commissioned by the end of 2008, bringing capacity to almost 620ML per annum."

Mr Cochran said most ethanol and biodiesel plants were still using first-generation feedstocks, which pitted producers against the food market.

Feedstocks for ethanol include crops with a high sugar or starch content such as corn, while biodiesel uses oils such as canola and palm oil.

"Second generation feedstocks, such as microalgae for biodiesel and lignocelluloses for ethanol, are being researched in Australia and overseas and are seen as offering longer-term and more sustainable alternative feedstock sources for the biofuel industry," he said.

© Herald and Weekly Times.

By Victor M. Quintana S., translated by Annette Ramos

The biofuels boom is not just another trend or a passing fashion. It is the result of a new global food and energy cycle that entails very significant adjustments in our societies.

The cycle of hydrocarbons as the almost exclusive source of energy is ending. So is the use of basic grains as a food weapon and instrument of economic subordination, initiated with the Iran-Iraq war in 1979, and the export of U.S. wheat to the Soviet Union a year later. The dominant actors of this cycle have been the industrial agriculture transnational corporations that control the international market through the policy of low prices: grain companies such as Cargill and Archer Daniels-Midland; oil companies such as Exxon-Mobil and Shell; and biotechnology firms like Monsanto and Aventis-Novartis.

Problems With the Current Situation

It has been a very aggressive cycle against small farmers and against nature. The export of subsidized grain from the United States and the European Union has led to the bankruptcy of the small growers form the countries of origin and the importing countries. Large-scale cultivation of monocrops such as soybeans in the Latin American southern cone has spread, wiping out multifunctional farms, and its technologies have contaminated millions of hectares of soil and water.

Global warming, the depletion of hydrocarbons, and the growing proportion of fossil-fuel based fuels produced in countries or organisms outside the control of the United Status and the transnationals—such as Venezuela, Iran, or Russia—have led to the need for changes. New cycles for food and energy production are beginning, and among these, bioenergy plays a key role.

The bioenergy cycle is an open development cycle, whose evolution could follow several paths: it could be harnessed for restructuring domination, as the transnationals and the states that support them are attempting to do; or emerging powers could take advantage of it, such as Brazil, Russia, India, and China or OPEC; or it could be used by grassroots organizations of rural and indigenous people, and small producers.

Millions and millions of hectares will be dedicated to the production of ethanol in the United States and in the Soviet Union, withdrawing from the international market millions of tons of corn. This will raise global prices as well as impose serious hardship on countries that have not developed food sovereignty.

The governments of the European Union and the United States are fully engaged in promoting research and the cultivation of grains, oleaginous crops, and plants from which ethanol or biodiesel can be produced. The United States earmarked US$8.9 billion in subsidies for the production of ethanol, and research and development of biofuels in 2005. Mexican business and government are following suit and have begun to promote biofuel base crops with little or no consideration of their social, economic, and environmental impacts; without a basis in solid research regarding the conditions of our land and agricultural food production; and without analyzing the relationship in Mexico between food and biofuels production: Is it complementary? Is it mutually exclusive?

Toward a New Policy

In Mexico we cannot jump into promoting the massive, extensive, and intensive production of biofuels if we don't start from our social and historical reality, from the values that guide the project of our nation, from the social and regional diversity of our makeup, from our culture, better yet, from our multiculturalism, our biodiversity, from the wealth of our natural resources.

The following are six basic criteria that should be taken into account for the development of biofuels in our country:

* Food Sovereignty and Security: Mexico has 17 million people living in extreme poverty and 20 million in moderate poverty for whom corn is their main source of energy, fiber, and protein. Reducing the amount of land under cultivation for corn or allocating a large part of the crop yield to other uses will reduce supply and raise the price. This will affect first low- income families. Cultivating plants for the production of biofuels on a massive scale will increase pressure on the land currently dedicated to producing food, and make our food supply even more vulnerable. We currently depend on foreigners to provide one-fourth of our national food consumption in corn, half of wheat, more than half of rice, and almost 90% of our oilseeds. It would be totally irresponsible to dedicate large land areas to the cultivation of biofuels. It would increase scarcity of basic foods and increase vulnerability to pressures from the countries and transnational corporations that control the international market. The right to food, the basic fuel of living beings, is of a higher order than the need to fuel machines.

* The Right of Rural and Indigenous Families to Land and to Make a Living with Dignity from Agricultural Work: The experience of nations such as Argentina, where monocrop cultivation has been imposed by the international market, is very clear: it implies the displacement of hundreds of thousands of small and medium producers and their dislocation from the country to the city. Those who do not have the means to cultivate large farms to obtain the benefits of an economy of scale, or who don't have the resources needed to acquire specialized machinery or technology, find themselves unemployed. Farmers who go into debt to acquire these things but are then defeated by the competitiveness of big businesses also lose their livelihoods. In places where biofuel base crops are grown we find the same disadvantages as with monocrops in general. Therefore, if such crops are to be promoted in Mexico, care must be taken not to displace small producers, and rural and indigenous peoples from their land. The State and society should guarantee respect and no pressure on community, cooperative, and family land. We are not just dealing with guaranteeing property or the possession of land, but with the source of employment for family farmers.

* Sustainability of Water: In our country we have a serious problem with the depletion of aquifers and the overexploitation of rivers and lakes. This problem will increase according to climate change studies that predict larger droughts in the North of the country, less precipitation, reduction in the capacity of dams, and in a decrease in the replenishment of aquifers. Monocrop cultivation is based on intensive use of water. Companies interested in biofuels will not use seasonally cultivated land, but will seek out areas with irrigation because of its productivity. Except in a few regions, in Mexico the efficient use of water systems is not widespread. We have very little water in our country, and reducing that vital and primary resource in order to produce fuel threatens not just our sovereignty but also perhaps our viability as a nation. The cultivation of base plants for biofuels should always be conditioned on sustainable water management.

* Sustainability of Natural Resources: Our experience with the intensive cultivation of soy, oil palm, and corn show that they bring about devastation of natural resources: clear-cutting thousands of hectares of forest and shrubbery; pollution and depletion of soils through the use of agricultural chemicals; loss of biodiversity induced by monocropping; and the emission of nitrous oxide and other gases from fertilizers that contribute to the greenhouse effect. Changes in land use, for example, when converting previously uncultivated areas into crops, also contribute to global warming due to the reduction in green cover and the increased emission of carbon. Therefore, in Mexico base crops for biofuels should contribute to, not detract from, the sustainability of natural resources.

* Avoidance of Genetically Engineered Crops: The urgency to produce ever-increasing amounts of biofuels encourages the use of genetically engineered seeds, in the case of soy and corn; of genetically modified trees, such as the African palm and the genetically engineered poplar; or the development of genetically engineered grasses. Falling into that trap raises two threats. First, it makes us dependent on transnational corporations like Monsanto to obtain and use seed, and requires payment on patents. The second, even worse, is the attack on native seeds, grasses, trees, and entire ecosystems by the intrusion of transgenic elements that can end diversity and extinguish animal or vegetable species. We cannot allow the development of biofuels to be carried out based on genetically engineered plants and seeds.

* Community, Local, and National Control: In Mexico we vociferously maintain our national sovereignty over petroleum, although the communities in which oil wells are located are the last ones to benefit from oil extraction and the first to be hurt by the environmental damage it causes. The main promoters of biofuels production are oil companies such as Shell and Exxon, chemical companies such as Monsanto and Dupont, and agribusiness companies such as Cargill. As fossil fuels have been increasingly questioned, they have repositioned themselves to control the bioenergy field. Because of that, another criterion for the production of biofuels in Mexico is that of national and community control. This means that transnationals should not appropriate the process of their production and distribution, but that it should remain under national control. However, that is still not enough, given the negative experiences suffered by communities that are "unlucky" enough to have oil resources in their territory. It is necessary that these rural communities, with help from the government, have mechanisms that allow them to develop and exercise community control over the bioenergy that they produce—they should be able to decide how to produce the energy, how much to produce, for what use, and for whom.

Most of these criteria stem from small farm and indigenous agricultural practices, uses, and customs in our country. The first aim of production is to feed the family unit and the community. In doing so, the family is provided with a source of work, within its own land and community, although given economic and social distortions in many cases this livelihood is not enough for the subsistence of the domestic unit. These practices take great care to ensure sustainability in the way water and natural resources are used. The reason is very simple: maintaining and even improving the endowment of these resources is a condition for inter-generational reproduction of the family. They almost exclusively use native seeds and plants, which are transmitted from one generation to the next, or domestic varieties that have been adapted by the family or community to the climatic, soil, and moisture conditions of their land. And finally, the fundamental decisions about what should be grown, how it should be grown, to which market it should be aimed, and under what conditions are not made outside the family unit or the community.

Responsible Use and Alternatives

Six Criteria for the Development of Biofuels in Mexico

1. Food Sovereignty and Security: The right to food, the basic fuel of living beings, is of a higher order than the need to fuel machines.

2. The Right of Rural and Indigenous Families to Land and Agricultural Livelihoods: Great care must be taken not to displace small producers and rural and indigenous peoples from their land. The government and society should guarantee that there is no pressure on community, cooperative, and family land, and respect for their livelihoods.

3. Sustainable Water Use: The cultivation of base plants for biofuels should always be conditioned not just on availability of water but on its sustainability.

4. Natural Resources Sustainability: In Mexico, production of base crops for biofuels should contribute to, not detract from, the sustainability of natural resources.

5. Avoidance of Genetically Engineered Crops: The use of genetically modified crops to increase yields causes dependency on transnational corporations like Monsanto for seeds and leads to genetic contamination of native seed, grasses, trees, and ecosystems. We cannot allow the development of biofuels to be carried out based on genetically engineered plants and seeds.

6. Community, Local, and National Control Criteria: The production of biofuels in Mexico should take place under national and community control; transnational corporations should not be allowed to appropriate the process of their production and distribution. Also, rural communities, with governmental support, should have mechanisms to develop and exercise community control over the bioenergy that they produce.

It is not that we should reject biofuels in general, but we clearly reject the promotion of ethanol production based on corn and the advancement of biofuels within the logic of transnationals in Mexico. With climate change it is necessary to find energy options. But their exploration and development - if it enters into the hyper-industrial and transnational logic - will harm not just peasant families and rural communities, but also less powerful nations. In the long run, these "solutions" will be counterproductive for the very problems they seek to address.

The path to follow entails the small-scale production of biofuels from diverse sources so as not to enter into conflict with food production nor fall into the cultivation of monocrops. Greater advantage must be taken of farm byproducts, cattle dung, and biomass generated in other processes, production must assure sustainable use of water and natural resources, and be oriented firstly to satisfying the energy needs of the local community.

This is a start, but we can't convince ourselves that the production of alternative and sustainable energies will alone solve the problem of global warming. The entire model of civilization of our planetary society continues to revolve around industrialization and that entails a permanent and structural submission of the countryside to the city, and enormous consumption and waste of all types of energies. For the model of consumption exemplified by the rich countries of the north, no energy source will be sufficient. Even supposedly renewable energies like biofuels will fall short given the strain on nature that they entail.

We need to get to the bottom of the problem and question the capitalist industrial and post-industrial system that crowds people into cities of superhuman scale and voraciously consumes huge quantities of industrially produced food and energy to transport it across the planet. As the Brazilian theologian Leonardo Boff points out, " It is not enough to adapt to the new reality, nor is it sufficient to ameliorate the harmful effects of global warming, but rather we have to delve deeper: we have to renew the meaning of life, we have to recreate a new spirituality, that is, a broader sense of our passing through this world, of our coexistence as human beings, to assure that the earth and humanity can and will continue to have a future."

In this questioning of our civilization and the values that guide it , in this search for meaning, rural and indigenous communities have much to say : We can see now that rural people got it right strategically, we see the enormous environmental damage wreaked by industrial agriculture and livestock farms, we see the need to preserve domestic seeds and the genetic patrimony of nations.

The cycle that is now painfully beginning should not be one of genetically modified seeds and new energy sources that destroy biodiversity. It should be one of healthy food for all and diversified energy sources, administered with convivial wisdom, as Ivan Illich would say.

The crisis has provided us with the material basis for rural rebirth. Our generation and coming generations require plentiful and healthy food, produced without harming the environment, with the main goal of nourishing people, not making profits, without wasting water and energy, and without irresponsibly withdrawing millions of hectares from food production to use them for ethanol or biodiesel.

The only ones who can do this, who have the ancestral knowledge, the genetic inheritance, the love for the land, and the vocation of service to produce the food the world will need are rural communities. For this reason, they should be supported to become strong economic and social actors.

Victor M. Quintana is an adviser to the Frente Democrático Campesino de Chihuahua, researcher at the Universidad Autónoma de Ciudad Juárez, and collaborator with the Americas Program, at www.americaspolicy.org.

Calls from Washington for subsidies to increase US production of biofuels by up to 700 per cent in the next 30 years have persuaded American farmers to devote 12 million more acres to ethanol-yielding corn this year than last. That decision has meant a commensurate fall in the global supply of soybeans and wheat, boosting world prices of vegetable oils, livestock feed and food grains. The repercussions are already being felt from Munich to Kuala Lumpur.

Politicians have demanded vastly increased use of ethanol as a transport fuel in the EU as well as the US. In purely environmental terms this could create more problems than it solves. But there will be undoubted benefits in terms of energy security and carbon emissions from road traffic. Most importantly, the rapid response of the farming, energy and auto industries when offered adequate incentives gives hope that their critics’ forecasts of an energy-starved environmental doomsday may yet prove pessimistic.

Henry Ford first urged his customers and government to switch to ethanol from petrol nearly a century ago. It was not until the 1970s that a leading economy — Brazil’s — made that switch, and it did so solely to end its dependency on imported oil. The impetus for a new surge in ethanol production in 2007 derives from its claim to be both carbon-neutral and renewable. These claims are not groundless. The virtue of biofuels is simple: any crop that can be converted into ethanol will produce exactly the same amount of carbon when that ethanol is burnt as it “fixed”, or absorbed, from the atmosphere while growing. And that ethanol is renewable annually, just like the corn or sugarcane from which it is produced. This is a distinct improvement on the geological timescale over which all fossil fuels were laid down, even if, in practice, responsible biofuel growers must rest their land periodically.

Yet biofuels are no energy panacaea. Their supposedly neutral carbon equation is unbalanced when anything with a higher carbon-fixing capacity — such as rainforest — is cut down to make way for them, or for the palm and rape seed oil plantations spreading across parts of Indonesia and West Africa to make up for North American cuts in soybean oil supply. The equation is unbalanced further by the process of pulping and distilling biofuel crops. Critics of the process used in the US, where 114 refineries are in operation and 80 more are being built, claim that more energy goes into producing a gallon of ethanol than it gives out in an internal combustion engine.

Of more immediate importance, when biofuels compete for the world’s finite stock of arable land, they edge out food. The results, as we report today, already range from reduced portions in Japanese packets of cheese-flavoured snacks to “tortilla riots” in Mexico.

The response to accelerating global energy demand must be as varied as the ripple effect of the Midwest’s renewed love affair with corn. Biofuels will play a part, but the heavy lifting must be done by technology harnessed to the goal of efficiency. The only power adequate to the needs of the 21st century is brainpower.

Wall Street Journal - A hardy, but ugly green shrub thrives in India is being tapped for its energy rich seeds for biofuel production.

The jatropha plant's golf-ball size fruit contains a yellowish liquid similar to palm oil that can be made into biodiesel.

Since the plant isn't edible, it won't divert resources away from food crops, and doesn't need much water or fertilizer.

Unlike other biodiesel crops, jatropha can be grown almost anywhere -- including deserts, trash dumps and rock piles -- so it won't consume huge quantities of land water and chemicals to grow crops like what is needed to produce ethanol and other biodiesel.

While environmentalists fear that rising biofuel production will cause significant environmental damage with many countries increasing biofuel production goals - such as the U.S. ethanol boom - and continue to require more land.

With headquarters in Oklahoma State University, the SGI has made available, about US$ 2.5 million in research grants for the development /enhancement of biomass energy.

Seven “integrated projects” ($125,000/year for up to 3 years, characterized by multi-institutional participation) and ten “seed-grant projects” ($35,000/year for up to 2 years, for novel exploratory research) were awarded for the first round of funding.

The broad areas of research include the development of novel and cost-effective techniques for bioenergy crop breeding, biofuel processing (production and purification) and economics.

Some of the research topics in the integrated projects category include, the development of bioenergy-tailored sorghum/sweet sorghum crops and syngas/gasification technologies.

The seed grant projects include advanced biodiesel feedstock development, sorghum stover for ethanol production, and bioconversion of biomass by the microorganism, Vibrio furnii.

Minnesota - Researchers at the University of Minnesota have developed a fast way to convert sawdust and waste biomass directly into a mixture of gases that can be burned to generate electricity or made into liquid fuels such as diesel. If the process can be scaled up, it could be a more energy-efficient method for making biofuels by allowing for small, fast reactors located close to biomass sources.

The researchers developed a system that makes it possible to transform solids directly into a useful mixture of gases. The process begins when millimeter-sized particles come into contact with a 700 to 800 degree Celsius porous surface and instantly form a mixture of gaseous compounds. These interact with a catalyst made of the precious metal rhodium that facilitates partial oxidation reactions that both keep the system hot and convert the gases to hydrogen and carbon monoxide. This mixture of gases, called syngas or synthesis gas, can then be burned in a gas turbine to make electricity, or purified and made into a number of different fuels using well-known processes.

The key to the new process is a catalyst bed with the right kind of porous structure to maintain the temperatures and movement of materials needed for the chemical reactions. The resulting system breaks down the biomass in just 70 milliseconds. That is ten times faster than other methods for making syngas, says Lanny Schmidt, professor of chemical engineering and materials science at the University of Minnesota. Ideally, that means a reactor with a given volume could make ten times the amount of syngas using the new method than it could using conventional methods. Or put another way, it could allow for reactors one-tenth the size, he says.

The catalytic approach is one of a number of methods in development that could convert cheap sources of cellulosic biomass, such as sawdust, grass, and agricultural waste, into liquid fuels. It's still not clear which of two broad categories of approaches will be more practical, thermochemical methods, such as Schmidt's, or methods that use enzymes and organisms. Thermochemical methods are expensive but have the potential advantage of being able to use a number of different source materials, whereas biological systems will likely need to be fine-tuned for particular feedstocks.

But the ability to make smaller reactors for converting waste biomass to syngas could help meet one of the most significant challenges of producing fuels from biomass. Transporting bulky materials such as wood chips and corn waste long distances to central facilities uses a lot of energy, often in the form of fossil fuels. It also makes the overall process more expensive. Small, distributed syngas plants could cut down on these transportation costs by decreasing the distance the biomass has to be shipped. Distributed reactors could also be valuable in developing economies, Schmidt says, providing power and fuel to communities that don't have reliable transportation infrastructure.

The overall affordability of such a system will partly depend on whether rhodium, which can cost upwards of $6,000 an ounce, can be used in small enough amounts--and over long enough periods of time. The process also has to be scaled up, even for small distributed systems. Right now, the prototype uses an experimental catalyst bed the size of a person's thumb. The researchers estimate that a system that can make enough syngas to produce 10 gallons of gasoline a day would require a catalyst bed many times this size, about 15 centimeters across and 3 deep. It could prove difficult, says Theodore Krause, head of basic and applied sciences at Argonne National Laboratory, to make a larger system that remains fast and efficient.

While challenges remain, Schmidt's system represents a distinct advance in the science of making fuels from biomass, Krause says. In demonstrating the ability to convert solids directly into syngas, he adds, the research has "demonstrated something that most people would have at first guessed was not possible."

© Technology Review

COLUMBUS, Ohio – Cows could one day help to meet the rise in demand for alternative energy sources, say Ohio State University researchers that used microbe-rich fluid from a cow to generate electricity in a small fuel cell.

This new microbial fuel cell is a redesign of a larger model that the researchers created a few years ago. The new cell is a quarter of the size of the original model, yet can produce about three times the power, said Hamid Rismani-Yazdi, a doctoral student in food, agricultural and biological engineering at Ohio State University.

Experiments showed that it took two of the new cells to produce enough electricity to recharge a AA-sized battery. It took four of the first-generation fuel cells to recharge just one of these batteries.

Rismani-Yazdi is the lead author of a new study of cellulose-based microbial fuel cells. The source of power for these fuel cells comes from the breakdown of cellulose by a variety of bacteria in rumen fluid, the microbe-rich fluid found in a cow's rumen, the largest chamber of a cow's stomach. To create power, researchers fill one compartment of a microbial fuel cell with cellulose and rumen fluid.

“Energy is produced as the bacteria break down cellulose, which is one of the most abundant resources on our planet,” said Rismani-Yazdi. Indeed, cellulose is plentiful on most farms, as harvesting usually leaves plenty behind in the form of crop residue in fields. Other prime sources of cellulose include waste paper and items made of wood.

Rismani-Yazdi and his colleagues are continuing to refine their microbial fuel cells, as well as trying to figure out how to grow mass amounts of rumen microbes in the laboratory for possible large-scale use in the future.

The researchers reported the findings August 21 at the American Chemical Society meeting in Boston. Rismani-Yazdi worked with his mentor Ann Christy, an associate professor of food, agricultural and biological engineering at Ohio State and with Olli Tuovinen, a professor of microbiology at the university.

The team collected rumen fluid from a living cow, extracting the fluid through a cannula, a surgically implanted porthole that leads directly into its rumen. They filled one compartment of a fuel cell with this microbe-rich fluid and with cellulose.

The microbial fuel cell, which has two compartments, is about two inches wide and three inches in height and length. A thin membrane made of special material separates the two compartments. This material allows protons to move from the negative (anode) compartment into the positive (cathode) compartment.

This movement of protons, along with the movement of electrons across the wire and resistor that connect the two compartments, creates an electrical current.

A small piece of graphite placed inside each compartment served as a fuel cell's electrodes (an electrode draws and emits electrical charge.) The researchers filled the anode chamber with cellulose and with microbes derived from rumen fluid. Electrons are released as the microorganisms break down the cellulose.

These electrons are then transferred to the anode electrode.

The researchers filled the other chamber, the cathode, with potassium ferricyanide, a chemical that acts as an oxidizing agent and helps close the electrical circuit by accepting electrons from the cathode electrode. Once the circuit is closed, electrons flow from the anode to the cathode, creating electricity.

The microbial fuel cells with the least amount of resistance produced the most power – enough to run a miniature Christmas tree light bulb, Christy said. That's about three times more power than their first-generation fuel cells were capable of producing.

“The amount of electricity that we can get out of one of these cells is ultimately related to the resistance of the object that we want to power,” Rismani-Yazdi said.

He said that he typically adds cellulose to the fuel cells every two days, although that amount can vary depending on how quickly power is drained from the cell.

“But the power output of these fuel cells is sustainable indefinitely as long as we keep feeding the bacteria with cellulose,” Christy said. “We ran these cells for three months.”

Although the technology is still in its infancy, the researchers are encouraged by how far they've come in the last two years, and they are continuing their efforts to increase the amount of power these microbial fuel cells can produce.

Partial support for this work was provided by the Ohio Agricultural Research and Development Center as well as the College of Food, Agricultural and Environmental Sciences at Ohio State.

Methane, created naturally by agricultural waste, is a potent greenhouse gas that contributes to global warming. Biofuel facilities, such as the one to be constructed at the IEC, convert this harmful gas into useful clean energy. When compared to other hydrocarbon fuels, burning methane produces the least carbon dioxide per unit of heat generated. AEHI plans to work with DeRuyter Dairy, Happy Valley Dairy, and Van Es Dairy, among others.

The Idaho Energy Complex, a holding of AEHI, is a proposed $3.5 billion commercial nuclear power plant/bio-fuel generation facility to be constructed on a designated site near Grand View, Idaho. The electricity provided by the nuclear plant would be sufficient to power Idaho's growing needs and allow the elimination of fossil fuels for current power production. Additionally, excess heat from the nuclear reactor would be used to produce ethanol and methane from local crops and agricultural waste.

Alternate Energy Holdings actively acquires private green energy companies, as well as develops and markets innovative clean energy sources. Current projects include nuclear construction, bio-fuel generation, a safe and effective system for removing carbon dioxide from coal and natural gas plants emissions, and marketable lightning harvesting technology for electricity production.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Although AEHI believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that the forward-looking statements included in this press release will prove accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation that the objective and plans of AEHI will be achieved.

© 2007 Marketwire, Incorporated

Cornflake makers and socialists alike are pointing to green fuel for high food prices. Are they right?

(Newsweek International) - High food prices always hit the poor hardest, and these days there is plenty of bad news. Corn prices are nearly $4 a bushel, almost double their 2005 level. In Mexico, for instance, that translates into a 50 percent rise in the price of corn tortillas, which has elicited protests from tens of thousands of workers. Many blame the burgeoning U.S. biofuel industry, centered around corn-based ethanol, for the crunch. Fidel Castro says diverting corn into fuel is a "tragic" turn of events for the world's poor, while Venezuela's Hugo Chávez calls it "craziness."

They aren't the only ones pointing the finger at biofuels for high prices—food makers like Kellogg's are also. While biofuels are a convenient scapegoat, global food economics are a complex phenomenon. A surge in global food demand, high oil prices, uncooperative weather, currency fluctuations and biofuels all play a part in explaining the new, stratospheric world of food economics.

About a third of the recent corn-price rise is "just a currency issue," says Peter Timmer, an agricultural economist at the Center for Global Development. The dollar has plummeted against most of the world's currencies, and since most internationally traded foods are priced in dollars, the price hikes lose some of their bite abroad. "If you look at food-price inflation from a euro-currency perspective," he says, "it doesn't look as bad as it does in dollars."

Bad weather has also played its part. Drought in Australia ravaged its wheat crop last year, and exports fell by more than 20 percent. Recent flooding in China has destroyed 5.5 million hectares of wheat and rapeseed, and an abnormally dry growing season across northern Europe threatens grain yields. Longer term, Timmer sees two worries: that these are early signs of a climate change, and that there is no new Green Revolution underway to create tougher crops. "Agricultural scientists are quite concerned about the lack of a pipeline of new technology," he says.

Rising oil prices hurt, too. Food expert Michael Pollan has said that the most "worrisome" aspect of food production is how much energy it consumes. Each step from reaping to packaging uses additional energy—and with oil at close to $80 a barrel, that adds up. Most food packaging is plastic, which is made from oil, and common plastics like polypropylene cost up to 70 percent more today than they did in 2003, says Andrew Falcon, the CEO of C&M Fine Pack, which sells containers to U.S. restaurants. Retailers like Wal-Mart tried to absorb these costs by squeezing greater efficiency out of their suppliers, says Falcon, but eventually had to pass on the price increases. Taken together, these factors, from weather to bio-fuels to oil, contribute about 30 percent to the recent price hikes.

But perhaps the most significant factor is rising wealth, particularly in the developing world. Since 2002, the combined GDP of the 24 largest emerging markets has doubled, according to Bank of America, and per capita income has risen by nearly 14 percent a year. As families get richer, they can more regularly indulge in meat and dairy products. In China, beef consumption has gone up by 26 percent since 2000, and pork, which was already popular, rose by 19 percent. Even in India, where much of the population is vegetarian, chicken consumption has almost doubled since 2000. "This is an economic-development success story," says Lawrence Goodman, head of emerging-market strategy at Bank of America. But it's also a story of placing greater demands on our grain crops, since seven kilograms of feed go into every kilogram of beef.

The rise of per capita income in emerging markets is itself responsible for as much as one third of the current food-price inflation, say experts. With wealth rising, the globe warming and no technological fix in sight, higher food prices are unlikely to be a short-term phenomenon (as they would be if the ethanol craze were the primary cause). The good news may be that more poor people will get rich enough to buy corn anyway.

© 2007 MSNBC.com

NEW YORK (Reuters) - Ethanol maker U.S. BioEnergy (USBE.O: Quote, Profile, Research) said on Monday second-quarter earnings rose as it ramped up production of the corn-based fuel.

The company, which launched its shares on the Nasdaq in a $140 million initial public offering in December, said net income rose to $8.3 million, or 12 cents per share, from $5.2 million, or 8 cents per share, in the first quarter.

U.S. BioEnergy did not provide year-earlier second-quarter earnings figures, citing the change in the nature of its business since May 2006 to ethanol production from marketing and services.

The company sold 67.1 million gallons of ethanol in the second quarter, up from 59.7 million gallons in the first quarter, with prices near flat at $1.91 per gallon versus $1.90.

Total revenue rose 17 percent to $154 million.

High corn prices did weigh on profits, with costs rising to $1.41 per gallon of ethanol in the quarter from $1.25.

During the quarter, the company announced the early start of its Ord plant, as well as its plans to purchase Millennium Ethanol LLC., which will add 100 million gallons a year in capacity.

The company currently operates four ethanol plants with a capacity of 300 million gallons per year, and has plans for three more that would double its capacity.

Strong gasoline prices, as well as government efforts to boost ethanol's role among transportation fuels, has led to a boom in ethanol production this year.

U.S. BioEnergy shares have fallen more than 20 percent since last year's IPO, and hit a lifetime low last week at $9.50.

First it was tortillas in Mexico, then it was Frosted Flakes in America and recently German beer. Now the latest food to become the victim of prices pushed up by the massive shift of crops to biofuel are Germany's beloved gummy bears.

Prices of glucose, the second main ingredient in the chewy candies after sugar, rose by 30 percent in 2006.

"We're going to maintain current prices through the end of the year," Marco Alfter, a spokesman for Bonn-based gummy bear-maker Haribo, told SPIEGEL. But afterwards, the golden bears could get more expensive.

Haribo is one of a number of companies in the German food and beverage industry that has been critical of shifts in crops away from foodstuffs in order to accommodate production of biofuels, which emit less CO2 than regular gasoline and reduce dependency on energy sources in volatile regions. Representatives of mills, major bakeries, sweets companies and animal feed companies in Germany have joined forces to create the "Netzwerk Lebensmittel-Forum" ("Food Forum Network"), which is seeking to raise awareness about the dangers associated with replacing food agriculture with crops for biofuels.

"In two to four years, we could be faced with substantial problems when it comes to feeding the population," warned Karl-Heinz Legendre of the margarine industry association. Prices for palm and canola oil, wheat and corn have already risen dramatically.

"The decisive factor will be if the government continues to subsidize the burning of food," said Alfter, in reference to government subsidies given to farmers who produce biofuels using crops traditionally used for food.

Peter Hahn, director of the German Brewers' Federation, said the popularity of biofuel crops has also led to a drop in the farming of barley because farmers get double the subsidies for biofuel. The result: the price for a ton of malt has doubled this year.

"These massive subsidies cannot be at the expense of food production," Hahn said in a recent press release. "They are an unfair intervention in the market to the detriment of the food industry and the consumer."

The tense raw materials situation is expected to be one of the major issues addressed at this year's annual conference of the Federation of German Food and Drink Industries (BVE) in October.

© SPIEGEL ONLINE 2007

On August 9, 2007, BP Alternative Energy, a subsidiary of London-based oil giant BP, announced two separate and unrelated deals which, when taken together, highlight the company's growing commitment to renewable energy.

Of wind and gas

The first item reported that American Electric Power (NYSE: AEP) signed a long-term power purchase agreement to buy a total of 200 megawatts from the Fowler Ridge Wind Farm. This is noteworthy because Fowler Ridge is owned by BP Alternative Energy, and it's just one of the company's five new wind-power development projects in the United States. This suggests that BP's strategy to become a leader in wind power -- as evidenced by its acquisition earlier this year of Orion Energy's 1,300 MW of wind power -- is beginning to bear fruit.

The second news item announced yesterday revealed that BP Alternative Energy will be partnering with Powerspan to develop and commercialize carbon dioxide capture technology for power plants.

Now, in the grand scheme of things, the pilot plant will only be capable of storing 20 tons of CO2 a day. Nevertheless, the project offers further proof that BP is getting serious about finding ways to profit in a carbon-constrained future.

Sunny days ahead?

Another way the company is looking to profit from clean energy is by moving aggressively into solar energy. It might even surprise some investors to learn that BP Solar -- a key business with BP Alternative Energy -- is already one of the largest and most profitable solar companies in the world. Moreover, it's clear that the company is determined to maintain this position, and its growing strength could make life a little uncomfortable for some of the more modest-sized solar companies such as Evergreen Solar and Trina Solar.

In 2006, BP Solar signed a deal with REC Corp to supply it with silicon for the next five years, and the company plans to invest $8 billion in wind, solar, and hydrogen power over the next decade. Currently, it's teaming up with the California Institute of Technology to develop radical new nanotechnology-based methods for manufacturing solar cells and modules.

The company's research is so promising that the U.S. Department of Energy selected BP Solar for the America Initiative Award. The DOE granted the company up to $7.5 million in phase 1 for their 3-phase $40 million project to decrease the cost of solar power.

Fueling a new future

As impressive as BP's solar and wind programs are, they pale in comparison to the immense opportunity that awaits the company in the field of biofuels. BP is, after all, still primarily an oil and gas company, and it only makes sense that it's interested in pursuing commercial opportunities in this area.

In 2006, BP announced a joint project with DuPont (NYSE: DD) to develop a new technology for making biobutanol. If successful, the new biofuel could find a sizeable market because it has both a higher net energy density than ethanol and it can be shipped in existing pipelines (unlike ethanol, which, because of its high water content, must be shipped by truck or rail). This, in turn, could be bad news for smaller ethanol companies, including VeraSun (NYSE: VSE) and Aventine Renewable Energy (NYSE: AVR), which might be pinched if ethanol loses some market share to biobutanol.

So far this year, BP has also announced two additional deals in the field of biofuels that bear watching. The first occurred in January when BP announced it would be directing $500 million to the University of California and the University of Illinois to explore the creation of new fuels from different crops and even microbes.

If the latter idea sounds a little, well, different, it's worth noting that BP also recently invested an undisclosed amount in Synthetic Genomics, a promising new company founded by former Celera Genomics co-founder and president Craig Venter, which is seeking to design, synthesize, and assemble "designer bacteria" that create various biofuels, including ethanol and hydrogen, in a single, simple step.

To be sure, the technology is still a ways off, but it's possible that just as Venter was able to speed the Human Genome Project to a rapid conclusion back in 2001 (beating many experts predictions by more than four years), he and his company might also surprise people with how soon synthetic genomics could produce a commercial breakthrough.

Set air conditioners to 26 degrees Celsius (80 degrees Fahrenheit) or higher, or use fans as an alternative.

Close blinds and curtains during the day to keep out the sun and retain cooler air inside.

Turn off unneeded appliances, electronic equipment and computers.

Give the oven and stove the night off; prepare your food on the barbecue or in the microwave. This saves electricity and helps to keep your house cooler.

Avoid using major power-consuming equipment like dishwashers, washers and dryers, and swimming pool pumps until after 8 p.m.

Replace incandescent bulbs with compact fluorescent bulbs (CFLs).

Added John Janzen of Waterloo North Hydro, ''The memory of the Blackout serves as a poignant reminder of how dependent we are on electricity. While raising the air conditioning thermostat by one or two degrees has little effect on our personal comfort, when thousands of homes take the same action it significantly reduces the overall demand.''

The Cities of Kitchener and Waterloo are leading by example by reducing electricity consumption at their facilities. The temperature in City of Kitchener facilities has been set at an average of 26 degrees Celsius, fountains have been shut off, and all non-essential computers, monitors, equipment, and lights have been shut off. Air handlers have been scheduled to cool Kitchener City Hall at night to lessen cooling requirements during peak hours.

Employees at the City of Kitchener are asked to turn out lights where ever and whenever possible, close blinds to keep out heat, and turn off computers, lights and fans when leaving for the day or when not in use.

In addition to reducing strain on the electricity system, conservation has other benefits. It is good for the environment because it reduces emissions from coal-fired generating plants, and it also saves money on energy bills.

TIVERTON, ON – Bruce Power and Babcock & Wilcox (B&W) Canada are pleased to announce they have signed a contract at a value in excess of $90 million to manufacture eight replacement steam generators for Unit 3 at the Bruce A generating station.

The new vessels will be engineered and built at B & W Canada’s Cambridge facility. The new steam generators will be installed in Unit 3 as part of the ongoing, $4.25 billion Bruce A Restart and Refurbishment project.

In 2005, Bruce Power and B & W Canada signed a similar agreement for the manufacture of 16 replacement steam generators for Bruce A Units 1 and 2. To date, four of those generators have been installed in Unit 2.

“This is yet another example of the significant investment we are making to restore Bruce A and secure Ontario's energy supply,” said Duncan Hawthorne, Bruce Power’s President and Chief Executive Officer. "The resulting financial ripples continue to be felt around the province."

Mike Lees, President, B & W Canada, said this contract re-affirms his company’s reputation as a key player in North America’s revitalized nuclear industry.

“A contract of this magnitude demonstrates Bruce Power’s level of confidence in Babcock & Wilcox Canada. Our experience and stellar reputation for meeting our customers’ needs helped to secure this contract. The award will allow us to employ more skilled labour and engineering talent and to continue to make great contributions to the community.” he said.

B & W Canada, which built the original Bruce A steam generators more than 30 years ago, will manufacture the replacement vessels using Alloy 800 tubes and design enhancements learned from years of supplying replacement vessels for the U.S. and Canadian markets. Each of the new steam generators will weigh more than 100 tonnes and stand approximately 12 metres high.

HAMILTON/ST. CATHARINES/GUELPH, ON - Guelph Hydro Electric Systems Inc. and Horizon Utilities Corporation, two leading electricity distribution companies in Ontario, have signed a Memorandum of Understanding (MOU) to develop a business case for a strategic partnership.

The business case will establish the terms and conditions that could result in a formal strategic partnership agreement between the two companies. The proposed agreement will then undergo an evaluation and approval process by the respective shareholders and Municipal Councils.

If agreement is reached by all parties, a single Electricity Distribution Company will be formed to provide service to approximately 280,000 business and residential customers in the communities of Hamilton, Guelph and St. Catharines. Both companies are committed to maintaining their current high quality delivery of service to customers. "Consumers are well aware that they will be impacted by any future energy decisions that are made regarding electricity in Ontario," said Paul Truex, Chair of Guelph Hydro Electric Systems Inc.

"We believe this kind of partnership is the best way to reduce these impacts for our customers and shareholder. We need to continue to add value to our communities by creating a stronger, better resourced utility that provides leadership in energy conservation."

Art Stokman, President of GHESI, said that the three municipalities would jointly own any proposed new company.

"The partnership, if achieved, will result in savings through economies of scale, competitive distribution rates, and a greater financial ability to maintain and improve the respective electricity distribution systems," he said.

"GHESI and Horizon are both innovative, forward looking and community focused utilities. Changing regulations and legislation continue to have a serious impact on the sustainability of many electricity distribution companies. I believe that if this partnership is achieved, it will further reinforce the advantages that utility consolidation offers," said Max Cananzi, President and CEO of Horizon Utilities Corporation.

"Horizon Utilities and Guelph Hydro Electric Systems Inc. will combine their best business practices into a single, efficient, electricity distribution company. We hope that other utilities will recognize the benefits that we provide to the community and will be interested in joining our partnership."

Robert Dolan, Chair of Horizon Utilities Corporation, stated: "The proposed partnership is an important step by two very well respected utilities. They are leading the way by being proactive and taking action to deal with the current and future challenges facing the electricity industry."

Understanding how plants use solar energy could play a big role in the future energy supply, claim scientists.

Researchers who met at a public discussion in Glasgow earlier this week talked about how understanding the fundamental processes that plants use to turn light into energy is a key way of securing cheap, emission-free energy in the future.

Scientists who took part in the event - organised by the Biotechnology and Biological Sciences Research Council (BBSRC) - say that furthering our understanding of photosynthesis 'offers an innovative way of producing environmentally-friendly energy.'

Photosynthesis is the process that green plants and certain other organisms use sunlight as an energy source to synthesise food from carbon dioxide and water.

Sociology Professor Steve Yearley from the University of Edinburgh who took part in the public discussion said: "If carefully managed, biofuels could provide a partial solution to dwindling fossil-fuel supplies. However, the biofuels industry currently faces criticism for pushing up food prices and damaging sensitive ecosystems.

"Photosynthesis on the other hand, does not carry these risks. However, the development of any new technology can have far-reaching effects on society and it is important that we and the wider public assess what those might be at this early stage."

Scientists also discussed how a better understanding of photosynthesis could lead to better crops for biofuels.

Professor Jim Barber of Imperial College London said that if we can understand how plants capture and store solar energy, we could mimic the natural process to design solar panels with better energy conversion rates and also develop a clean, efficient means of producing hydrogen fuel.

Professor Barber said: "Plants use solar energy to split water into oxygen, released as 'waste', and hydrogen which they use to help build sugars that feed the plant.

"We do not fully understand how photosynthesis works, but recent key advances in plant research mean that the time is right to consider this science as a basis for future sustainable energy sourcing."

© Faversham House Group Ltd 2007.

Finance Will Support Development of US Geothermal Industry

REYKJAVIK, ICELAND--(Marketwire - July 26, 2007) -

Glitnir bank has agreed to provide ThermaSource, LLC (TSL) with up to USD 22.5 million to finance the acquisitions of drilling rigs (and related equipment) and working capital needs.

TSL will provide project management, engineering services and supervise effective drilling programs as well as provide the geothermal industry with a fleet of drilling rigs and experienced geothermal crews.

Louis Capuano Jr., CEO of ThermaSource, LLC: "With the completion of Glitnir's financing, ThermaSource will have the financial resources to fund our rapid growth. Glitnir's focus on the geothermal energy projects will provide a strong partner in ThermaSource's continuing growth."

ThermaSource's majority owners, US Renewables Group and Carlyle/Riverstone Group, are leading Private Equity Funds with focus on the energy sector.

Thomas King, CEO of US Renewables: "This financing is an important milestone in the growth of ThermaSource as the premier supplier of drilling and consulting services to the geothermal sector. We have been very impressed by Glitnir's knowledge of the geothermal market, its ability to anticipate structural requirements, and its approach to deal making in a spirit of partnership. We look forward to a long and profitable relationship with Glitnir through ThermaSource and in other renewable energy investments."

Larus Welding, CEO of Glitnir: "This agreement is an important milestone in establishing Glitnir as the leading geothermal bank in the world. The renewable energy team, led by Arni Magnusson, is both dedicated and focused and I am certain that the teamwork between Glitnir and ThermaSource will be very successful."

Arni Magnusson, Managing director of global sustainable energy at Glitnir: "Glitnir aims to be the leading bank in financial services to the geothermal sector. ThermaSource is a very professional, fast growing drilling company in the US, which specialises in servicing the geothermal industry. It is therefore a great pleasure to ensure ThermaSource with the financing of machines and equipment which will support the important development of the US geothermal industry."

About ThermaSource

ThermaSource, LLC provides the geothermal industry with engineering project management, consultation services and drilling rigs with crews. With over 420 years of geothermal experience on the ThermaSource, LLC management team, the educated and experienced drill crews and a consultation service that has been our business mainstay since 1980, ThermaSource, LLC is a well-respected contributor to the geothermal industry. For more information: www.thermasource.com

While most of them have been extensively discussed, the information available is usually fragmented, being either too scientific or simplistic in its presentation, and generally not comparable.

Now STOA, the European Parliament's Scientific Technology Options Assessment body, has published an inventory of 20 of the most promising options, which are clustered in five technologies: hydrogen and fuel cells, battery electric vehicles, hybrid technology, biofuels and natural gas. The inventory provides a comparative overview of the pros and cons of each of these technologies.

Focusing primarily on road transport, the study starts by looking at hydrogen which, when combined with fuel cells, seems to be a promising technology alternative. However, some serious technological problems remain unsolved, including for instance questions concerning the performance of fuel cells, and the production of large amounts of 'clean' hydrogen. Recently, the only affordable way of large-scale hydrogen production has been via steam-reformation from natural gas. From a mid-term perspective, this route might support the market penetration of hydrogen and of fuel cells, notes the study. The crucial point is that, in this case, hydrogen would be derived from a fossil fuel source.

Other routes are also being discussed, including the production of hydrogen from renewable sources (wind, photovoltaic, solar thermal, water) via electrolysis. This is often regarded as a kind of silver bullet since it enables close to zero emissions of greenhouse gases (GHG). 'But it is not clear if, at which time, and in which regions the production of hydrogen from renewable sources will be feasible at larger scales and at reasonable costs,' says the study.

A 'clean' production of hydrogen from nuclear power is feasible as well, but the drawbacks here are the finiteness of uranium sources and the acceptance of the use of nuclear power. In terms of climate security, the study predicts that the coal route will only be suitable if it is combined with CO2 sequestration and storage (CSS).

Assessing the use of hybrid technology, the study finds that this option offers the possibility to save energy and emissions by using established technologies and infrastructures. Whatever fuel and propulsion technology will be dominant in 20 to 30 years, the authors of the study predict that that hybrid technology will be part of the propulsion system. It is an important component of most fuel cell concepts and there seems to be a high potential to further improve the efficiency of conventional fuels.

The development of pure electric cars is also explored. Here the study remarks that the commercialisation of such vehicles will strongly depend on the development of suitable batteries. In spite of decades of research and development activities, decisive technological breakthroughs regarding batteries are not in sight. 'Yet, a surprising breakthrough in battery technology is not completely impossible and would surely entail radical changes to both the transport and the energy sector,' say the authors of the study.

No inventory on alternative fuel sources would be complete without an assessment of biofuels. While recognising the ease at which so-called first generation fuels, mainly biodiesel and bioethanol, can be produced today, the study sees second generation fuels as the way forward. Unlike their ancestors, second generation biofuels can be made using the whole plant or from biomass other than rapeseed and sugar cane.

It is estimated that by 2030, roughly 20% to 30% of the EU's road transport fuels could be covered by biofuels derived from European biomass such as energy crops, agricultural and forestry residues or the organic fraction of municipal solid waste. But to meet the continent's fuel needs, it is likely that biomass will have to be imported from abroad. This should be critically discussed, argues the study, since importing biomass may be detrimental to ecologically sensitive areas worldwide.

Last on the list of possible fuel alternatives is compressed natural gas technology (CNG). 'This is a feasible technology for the transport sector and has the potential to bring at least mid-term improvements in terms of energy security and GHG emissions,' notes the study. But its possible contribution to energy security strongly depends on the overall demand for natural gas. It is likely that CNG vehicles will become at least established for niche applications, such as in larger fleets or in inner cities. Meanwhile the study predicts that liquid petroleum gas (LPG) will offer environmental benefits at relatively low costs. However, since both CNG and LPG are based on fossil feedstock, they must be considered as bridging technologies. They might help to pave the way for 'cleaner' gaseous fuels such as hydrogen, bio-methane or dimethyl ethyl (DME), suggests the study.

For more information, please visit:

http://www.europarl.europa.eu/stoa/publications/studies/stoa179_en.pdf