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Crude oil and natural gas: Supply and disposition for November 2006 (preliminary)
Crude oil and equivalent hydrocarbons production totalled 13.3 million cubic metres in November, 1.7% above the same month in 2005. (One cubic metre is equivalent to 6.3 barrels).
This increase was the result of higher bitumen and synthetic crude oil output in Alberta, and the return to production of the Terra Nova oilfield off Newfoundland and Labrador.
Crude oil exports, which accounted for 73.1% of total production, were 19.1% higher than in November 2005.
Year-to-date output of crude oil and equivalent hydrocarbons reached 139.1 million cubic metres, 5.1% higher than the same 11-month period in 2005.
Marketable gas declined 5.1% from November 2005 to 13.7 billion cubic metres.
Exports of natural gas accounted for 58.8% of marketable production.
Natural gas domestic sales, however, increased 9.5% from the same period in 2005. According to November natural sales data, this increase was a result of sales gains in all sectors: industrial (+7.5%), commercial (+9.7%) and residential (+13.9%).
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Oil giant primes the biofuel pump with $500 million
By Richard C. Paddock
BERKELEY — Oil giant BP will give $500 million to a partnership led by UC Berkeley to develop new biofuels and reduce environmental harm caused by the use of fossil fuels, Gov. Arnold Schwarzenegger and company officials announced Thursday January 31, 2007.
UC Berkeley will team up with the University of Illinois at Urbana-Champaign and the Lawrence Berkeley National Laboratory to develop fuel from plants, improve the extraction of oil from existing reserves and find ways to keep carbon from entering the atmosphere.
University and oil company officials said the creation of the Energy Biosciences Institute is an unprecedented effort to find clean, sustainable sources of energy and reduce the emission of greenhouse gases that cause global warming.
"This is great news for California and great news for America," said Schwarzenegger, who had pledged $40 million in state funds if a California university received the award. "This is the first research laboratory dedicated to the development of alternative fuels. We will be the world center for biofuels research.
"We are not waiting for a clean energy revolution," added the governor, who signed legislation last year to curb the emission of greenhouse gases. "We are the leaders in that revolution."
BP, formerly known as British Petroleum, has agreed to provide $50 million a year for 10 years to the institute, an unusual partnership between the universities, the oil company and state and federal governments. As many as 50 BP employees will work at the two campuses.
Much of what the institute develops will be made available to the public, but BP will retain exclusive control over certain discoveries, said Robert C. Dynes, president of the University of California system. The institute will be governed by a board that will include university and oil company officials.
A building to house the institute will be built on UC land at the Lawrence Berkeley National Laboratory, a renowned research facility managed by UC.
The University of Illinois, which is noted for its research in plant genetics, could receive as much as $100 million of the award. Illinois Gov. Rod R. Blagojevich joined Schwarzenegger and others in making the announcement.
Officials of both universities said they expect the institute to begin operating by June. The Berkeley-Illinois partnership was chosen over four competing proposals, including bids from Cambridge University, UC San Diego and the Massachusetts Institute of Technology.
"The proposal from UC Berkeley and its partners was selected in large part because these institutions have excellent track records of delivering 'big science' — large and complex developments … that can be deployed in the real world," said BP Group Chief Executive John Browne.
Steven Chu, who shared the Nobel Prize in physics in 1997 and is director of the Lawrence Berkeley lab, said the institute would take a team approach with scientists from different disciplines collaborating in as many as 25 groups.
"Our new institute will combine the best qualities of individual genius in our faculty and staff with the capability to form teams that can rapidly explore bold approaches that are well beyond the reach of a single investigator or a single discipline," Chu said.
The institute will create the new discipline of "energy biosciences" and will offer instruction to undergraduate and graduate students in the hope of nurturing a new generation of experts in alternative fuels.
"It is my belief that we are reinventing the research university in this public-private partnership," Dynes said. "This place will be teeming with students."
Dynes noted that the institute will be part of a broader effort by the UC to develop alternative fuels from hydrogen, helium, wind and solar energy.
University officials were optimistic that the institute can find a sustainable, clean source of fuel to solve the energy crisis that threatens both the global climate and the political stability of the world. Some likened it to the Manhattan Project, which developed the atomic bomb, and others to the U.S.-Soviet space race.
"This is our generation's moon shot," said UC Berkeley Chancellor Robert Birgeneau.
Copyright 2007 Los Angeles Times
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EU will need imports to hit biofuel targets
By Andrew Bounds in Brussels and Fiona Harvey in London
Europe will need to import thousands of tonnes of bio-fuels to hit stringent new targets proposed by Brussels yesterday February 1, 2007.
Oil companies said a law requiring all petrol to be blended with 10 per cent ethanol by 2020 would call for supply from countries such as Brazil that could produce vast quantities at cheap prices.
"Europe cannot produce enough," said Peter Tjan, of the European Petroleum Industry Association. "We will swap oil from Saudi Arabia for biofuels from Brazil and Malaysia. Does that help energy security?"
Under the plans, filling stations in the European Union would have to offer two blends of petrol from 2009: E5, with 5 per cent ethanol, and E10, with 10 per cent. By 2020, only E10 would be permitted. Restrictions on ozone emissions would be loosened to allow the blending.
The directive, which must be approved by member states and the European parliament, would also cut the amount of sulphur in diesel fuel by up to 90 per cent.
In addition, all petroleum producers would have to calculate their carbon emissions from extracting, transporting and burning fuel by 2009 - a "bureaucratic nightmare", according to Mr Tjan. Between 2011 and 2020 they must reduce them by 10 per cent. Mr Tjan said using biofuels would generate the bulk of the saving. Refineries must already buy carbon permits under the EU's trading scheme.
The move comes just weeks after California, the US's biggest state, enacted a similar plan. "This is a test of our capacity to translate political priorities into concrete measures. It will further underpin Europe's shift towards the low-carbon economy," said Stavros Dimas, environment -commissioner.
Mr Dimas is eager to demonstrate that commitment after having to water down plans to force carmakers to produce cleaner engines. Next week the European Commission is expected to set targets that will require carmakers to cut emissions by one-fifth by 2012.
The environmental movement is split over the plans. The Green party in the European parliament opposes a rush to plant-based fuel, saying its production results in clearing rainforests for energy crops and raises food prices in poor countries by diverting land use.
Claude Turmes, a Green MEP, said: "The Commission is diverting attention from the real problem - the cars that use the fuel - and creating the illusion that fuel from plants is the panacea for our climate problems."
However, Reuters reported that low biodiesel sales, especially in Germany, were depressing European rapeseed and rapeseed oil prices.
Jos Dings, director of Transport and Environment, a campaign group, welcomed the move. "It is good that the Commission is concentrating on carbon emissions from fuel as well as cars," he said, accusing the German car industry of "mindless scaremongering".
Bioethanol is usually made from wheat or sugar, but the energy required to grow and distil the grains reduces the benefit of using it as a fuel - a litre cuts emissions by less than half on average. Deforestation to clear farmland could contribute more to climate change than the resulting fuels save in emissions.
Copyright The Financial Times Limited 2007
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Asian biofuel trading to grow, Japan imports will help
TOKYO - Biofuel trading has a great potential to grow in the Asia Pacific region and the possible start of commercial imports by Japan will help the market to take off, a U.S. government official said the last Friday February 2, 2007.
Biofuels, such as ethanol made from agricultural products, can also compete with crude oil at $50 a barrel, said Jeffrey Skeer of the U.S. Department of Energy (DOE) and chair of the APEC Biofuels Task Force at an industry conference in Tokyo.
Biofuels are expected to be produced in larger volumes in several years from various crops, such as sugar cane and palm, in Asian countries like Malaysia and Indonesia at different harvest timings and costs, while corn is the main source of biofuel in the United States now.
"Cost differentials can mean big trade opportunities in the APEC region as biofuel markets grow over time," Skeer said.
Skeer pointed out that the start of the imports by Japan would provide a significant support for the biofuel trading market in Asia to take off.
"Japan is pretty big. Imports will go slow but there is a good potential there," Skeer said on the sidelines of the conference.
He did not say when Asian biofuel trading would become commercially active or the potential size of the market.
Biofuels are mostly made from agricultural products and used as ethanol in auto fuel or blended into gasoline.
Japan is seen as a potential big market of ethanol producers as it is the world's third-largest oil market and the only Asian country with a U.N carbon emission cap.
It also has ambitions to replace about a fifth of its auto fuels with biofuels or gas-to-liquid (GTL), but technically there is no commercial retail distribution of such fuel.
Japan's high dependence on imported food and the decline of its agricultural sector have also delayed the introduction of biofuel to its retail market.
The Japanese oil industry has this year opted to import ethyl tertiary butyl ether (ETBE) from France ahead of a test retail distribution of bio-gasoline starting in April, citing a lack of sufficient facilities for direct ethanol blending and issues related to petroleum product sales tax.
But the industry has said it would shift to imports of ethanol from such countries as key exporter Brazil, and refiners, led by top refiner Nippon Oil Corp. (5001.T), set up a joint venture to import ETBE and ethanol in January.
The global biofuel industry is quickly developing amid growing concerns over climate change as biofuels emit less greenhouse gases than conventional fossil fuels as well as because of high oil prices.
U.S. President George Bush's speech in January that the states would sharply boost use of biofuels to reduce its fossil fuel consumptions by the world's largest energy market might speed up the pace of the industry growth.
The Japanese oil industry has also said costs to produce and import ethanol or ETBE is more expensive now, but DOE's Skeer said biofuels can be competitive with current oill prices.
"At world crude oil prices above $50 per barrel, biofuels from a wide variety of crops are cost-competitive with petrol and diesel as fuels for transport," he said.
International benchmark U.S. crude prices have fallen sharply from a record above $78, but still holding around $50-55 levels.
© Reuters 2007
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Demand for energy crops drives world grain prices
The recent rally in world grain prices has created a more positive outlook for tillage farmers for the 2007 harvest. At the Teagasc National Tillage conference in the Dolmen Hotel, Carlow, an international grain trader outlined the reasons behind the improved prospects and his predictions for the year ahead.
This year’s rally has been led by wheat. Economic growth in Asia and the Far East led to greater demand and this taken together with reduced wheat output worldwide in 2006 has led to increased prices. The surprise on the demand side was India which purchased seven million tonnes of imports, according to Mike Engelbach from international grain trading company, Cefetra Ltd., based in Rotherdam.
The increasing demand for meat in China is continuing to have an impact on wheat sales and this trend is likely to continue he said.
He also identified ‘energy’ as the dynamic new entrant to the market which has turned maize into the driver of the cycle. He said: “George Bush set a target of 7.5 billion gallons of ethanol production for transport fuel by 2012, covering approximately 5% of projected US fuel consumption. Current US capacity is 5.4 billion gallons with another 6.2 billion gallons of capacity under construction. This total capacity when operative will consume approximately 40% of US maize production. To meet this additional demand, the market estimates another 8 million acres of maize must be sown this spring, taken largely from soyabeans – the next cycle driver. “
He said: “There is no doubt that ethanol production will have a seriously inflationary effect on food, and although current attitudes may seem cavalier in this regard, governments will act unpredictably if food supplies become seriously threatened by a series of crop failures. “
As a result of these stronger prices, wheat acreage has expanded all around the world and there is a good chance of rebuilding wheat stocks next year. Against this background, Mike Engelbach has cautioned farmers that wheat prices will not be able to achieve the lofty levels seen this year.
However, he doesn’t expect the maize market to relax until the required acreage is in the ground. So for the moment sentiment and the trend are bullish.
Mike Engelbach is optimistic about the prospects for malting barley but he expects world feed barley stocks to be in oversupply. He said: “Malting barley is a different matter and will continue to make substantial premiums as malsters struggle to rebuild stocks until well into harvest.”
Inside the EU, intervention stocks of grain are being released to meet additional demand. Mike Engelback expects this will reduce stocks with only Hungary still carrying a substantial unsold quantity of some 4 to 5 million tonnes of maize. The picture is, therefore, balanced, but the lack of Government-owned stock together with the overall bullish global outlook will make for a steady and well-supported market.
© 1992-2007 by SeedQuest
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Canada lagging behind on Energy From Waste Technologies
Proven technology turns waste into valuable resource for electricity
production
TORONTO - A leading operator of Energy From Waste (EFW) facilities says Canada is missing out on the untapped value of EFW technologies, which uses residential and commercial waste to generate electricity and reduces the amount of waste being sent to landfill sites.
Mark Lyons, Vice President of Projects for Wheelabrator, a wholly owned
subsidiary of Waste Management, today addressed The Economic Club Of Toronto
on the safe, effective and proven "mass burn" process in use throughout the
U.S. that converts waste into electricity.
Waste Management, through Wheelebrator, is a leading North American
developer and operator of EFW facilities that safely combust waste in
specially designed power plants. "This is a drastically different process from
incineration, which burns waste without energy recovery," says Lyons.
"Combustion is the most reliable and efficient approach to deriving energy
from waste and it drastically reduces the volume that goes into landfills.
We've been using this process for more than 30 years in 17 plants across the
U.S."
Lyons says EFW is a viable option for Canada's energy supply and waste
management challenges that is available to Canadians right now. "We have
proven that this is an environmentally sound technology that makes good
business sense," says Lyons. "Thirteen per cent of America's solid waste is
processed at EFW facilities and it's time now for Canadian municipalities to
seriously consider this solution."
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Oklahoma Gov. proposes biofuels center
By Ron Jenkins
Gov. Brad Henry on Tuesday proposed the creation of a world-class Oklahoma Bioenergy Center to develop fuels that would lessen the country's dependence on foreign oil.
If approved by the Legislature, the center would pool researchers from Oklahoma as well as other parts of the country to focus on biofuel research, development and education.
"With 60 percent of the nation's oil supply coming from foreign countries, many of which are openly hostile to the U.S., the need for renewable energy is clearly a matter of national security," Henry said.
"Not only would the Oklahoma Bioenergy Center play a vital role in reducing America's dependence on foreign oil, but it would be a great boon for Oklahoma in a number of ways. This institute would help diversify our state's economy, protect our environment, create high-paying jobs and contribute to a revitalization of rural Oklahoma."
The center would be funded with $40 million over a four-year period under the Democratic governor's proposal.
Henry said Oklahoma is suited to have a major role in biofuels and bioenergy research. Not only does it produce promising energy crops, such as switchgrass and other native grasses, it has a long tradition in energy and agriculture, he said.
He said the University of Oklahoma, Oklahoma State University and the Samuel Roberts Noble Foundation would form a consortium that would be integral to the mission of the new research center.
Senate President Pro Tem Mike Morgan, D-Stillwater, called Henry's plan "a bold initiative that will keep Oklahoma among the world leaders in energy."
Senate President Co-Pro Tem Glenn Coffee, R-Oklahoma City, also saw merit in the proposal.
"While oil and gas will continue to be the backbone of our energy industry for many years to come, it also makes sense for Oklahoma to take a leadership role in the development of new forms of energy, like biofuels," Coffee said.
House Speaker Lance Cargill, R-Harrah, did not directly address the idea of a center, but said House Republicans are "looking forward to hearing how the governor plans to balance the state's budget with all his recent spending proposals."
Henry said biofuels research supported by the center would include development of feedstocks, primarily cellulosic biomass, collection and transportation, conversion technologies and distribution.
He said it will be a boon to the state's rural and agricultural economy and feature an education component to help interested farmers make the transition to energy crops and adopt best management practices.
Henry noted that President Bush stressed a new federal emphasis on biofuels in his State of the Nation speech.
Creation of the center, Henry said, will put Oklahoma in the forefront as private industry and the federal government make investments in renewable energy research and development.
Copyright 2006 Associated Press
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Hydro One confirms details of early morning power "blip"
TORONTO - On Tuesday, January 30th at 6:22 a.m., Hydro One experienced an equipment failure at its Richview Transformer Station. A capacitor bank which was coming online to increase voltage to respond to demand during the early morning peak failed causing a momentary drop in voltage or "blip in power". The faulted equipment was isolated immediately and removed from service.
Hydro One estimates the blip lasted less than 1/5 of a second.
Both residential and industrial customers may have been affected by the
blip. Electronic systems sensitive to voltage fluctuations may have been
affected.
The failure of the capacitor bank resulted in a fire at Hydro One's
Richview Station. Hydro One personnel were on scene at the time of the
incident and followed established emergency and safety procedures and
contacted local fire officials. Emergency crews extinguished the fire by
7:30 a.m.. Local police, also on scene, have ruled out criminal activity.
There has been no additional impact to the power supply system as a
result of this morning's incident. The cause of the equipment failure is under
investigation.
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Ontario Business Consumers Welcome Review of Energy Agencies
TORONTO - Adam White, President of the Association of Major Power Consumers in Ontario (AMPCO), January 29, 2007, welcomed the Ontario Minister of Energy's announcement that he has appointed a panel to review the Province's Electricity Agencies as a positive development for consumers.
The primary focus of the four-person review panel will be to examine
executive compensation levels within Ontario's Energy Agencies. However, the
panel will also report back to government on areas where energy sector
effectiveness can be further strengthened, including assessments of overlap
and duplication between agencies.
AMPCO looks forward to working with the panel to consider how best to
structure and regulate Ontario's electricity sector now and into the future.
Consumers are concerned about the overall costs of electricity in Ontario
and AMPCO seeks to ensure that the structure and regulation of electricity
serves the interests of consumers first and foremost.
AMPCO is a not-for-profit consumer interest advocacy organization that
promotes improved competitiveness for Ontario industry through reliable
supplies of electricity at affordable rates. Its members represent a wide
range of resource, manufacturing and processing industries that use very large
amounts of electrical energy. As a group, AMPCO's 57 members consume more than
$1 billion worth of electricity each year, representing 14 per cent of
Ontario's total electrical demand and half of its total industrial demand.
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New technology needed to drive biofuel growth - BP
By Nigel Hunt
LONDON - Biofuels could supply up to 30 percent of the world's transport fuels by 2030 but the scope for major growth will depend on new technologies, the head of BP's (BP.L) biofuels business said on Monday Janaury 29, 2007.
"The future of this industry is going to be driven by innovation in technology," Phil New, president of BP Global Biofuels, said at a conference organised by Euromoney.
New said there were major drawbacks with current biofuel technologies related to their cost and performance as well as competition between food and fuel uses of crops.
He said BP believes that these problems could be solved with the eventual solution likely to involve ligno-cellulosic technologies combined with more advanced biomolecules.
Scientists have been working on a process known as ligno-cellulosis which would enable non-food crops and plant waste to be used to produce biofuels.
Biofuels are currently produced mainly from food crops such as sugar cane, grains and oilseeds, raising fears that the industry's expansion could increase food prices and possibly even spark food shortages.
"There is a very real prospect that biofuels could amount to up to 30 percent of the world's road transport fuels," New said.
New said there were significant concerns about the performance of ethanol which can be substituted for petrol.
"Ethanol is a reasonable start but it is a poor fuel molecule compared with either the fossil fuels it is seeking to replace or the potential for advanced, more complex alcohol molecules in the future," he said.
"It can't be transported, it's got lousy fuel efficiency characteristics, it is in many applications potentially quite unsafe and explosive and of course it can be very corrosive," he said.
Last year, BP announced it was partnering with DuPont Co. (DD.N) to develop an alternative to ethanol, biobutanol, which would be produced at a British Sugar plant in eastern England. British Sugar is a unit of Associated British Foods (ABF.L).
"We will putting in some pilot capacity we hope in the quite near future," he said, adding that development of the necessary technology was "going well."
© Reuters 2007
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Barrie Hydro to be Recognized by Ontario's Chief Energy Conservation Officer for its Leadership in Energy Efficiency
Barrie Hydro invites you to join them in celebration of their receipt of a Certificate of Recognition for their leadership in promoting energy efficiency and the success of their ENERGY STAR® Awareness Program in Barrie Hydro's service areas. The program represents an excellent example of how utilities, government, consumers and retailers can work cooperatively in developing a culture of conservation in Canada and collectively reduce Green House Gas emissions.
The prestigious Certificate of Recognition will be presented by Peter Love, Ontario's Chief Energy Conservation Officer. Other local dignitaries will also be on hand to honour Barrie Hydro and in support of their commendable achievement:
* Joseph Tascona, Member of Provincial Parliament, Barrie
* Dave Aspden, Mayor of The City of Barrie
* Ross Archer, Chairman, Barrie Hydro Distribution Inc.
* Mark Henderson, President and CEO, Barrie Hydro Distribution Inc.
Event Details
Date: Tuesday, January 30, 2007
Time: 10:00 a.m.
Location: Barrie Hydro
55 Patterson Road
Barrie, ON L4M 4V8
Barrie Hydro is the 11th largest electrical distribution utility in the Province of Ontario. The utility serves over 67,000 customers in seven service areas. Barrie Hydro prides itself on the distribution and delivery of reliable, high-quality electricity and its commitment to providing superior customer service.
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U.S. Energy Systems Announces Early Completion of Phase One of its UK Natural Gas Growth Strategy
Company May Now Access All Additional Capital for Stage Two Development
NEW YORK & NORTH YORKSHIRE, ENGLAND - U.S. Energy Systems, Inc. (Nasdaq: USEY or "the Company") and its UK Energy Systems, Ltd. (UKES) subsidiary today reported that Phase One of the Company's UK natural gas exploration and production growth strategy has been completed more than two months ahead of schedule, with power generation and gas production levels exceeding initial estimates. As a result, UKES is able to access all of its capital in support of Phase Two of its strategy. Phase One development of the Company's UK natural gas exploration and production strategy had been scheduled to be completed by March 7, 2007.
Phase Two of the Company's UK natural gas exploration and production
growth strategy includes the full development of proved and probable gas
fields, the construction of a pipeline to connect the project to the National
Transmission System ("NTS") network, situated approximately two miles away, as
well as 3D seismic exploration of UKES's North Yorkshire prospects.
In test results certified by an independent power engineer, PB Power, and
a reserves engineer, Gaffney, Cline & Associates, UKES reported:
-- Gas Production: total average gas production averaging 8.652 MMscfd
delivered to the Knapton Generating Station ("Knapton facility") for a minimum
of 28 consecutive days, for a total production volume of 242 MMscf during the
period;
-- Power Production: Knapton facility ran for a period of 28 consecutive
days and produced a total of 25,951 MWh, sent out at a load factor of 85%,
and;
-- Proved Developed Reserves: total Proved Developed reserves as of
December 31, 2006 exceeded 20 Bcf from the Malton, Kirby Misperton, Marishes
and Pickering fields.
These results exceeded the milestone requirements under UKES's August
2006 financing agreement by a wide margin, UKES said.
"We are very pleased that our UK natural gas growth strategy has
surpassed important performance milestones far ahead of schedule," said Grant
G. Emms, UKES Chief Executive Officer. "The Knapton facility is operating
24/7, power generation and gas production levels are growing, and with
continued exploration and upgrades, gas reserve estimates are exceeding
expectations. Our operations team has been successfully executing to this
point and we fully expect that this excellent record of performance will
continue going forward as we now begin Phase Two of our strategy."
Asher E. Fogel, USEY's Chief Executive Officer, stated that the Company's
UK natural gas properties are distinguished by uniquely combining offshore
production potential with an onshore cost structure. Located in the lightly
explored Cleveland Basin, the 100,000 acres of gas properties are an onshore
extension of the Southern North Sea Gas Basin with geology identical to less
accessible offshore fields. "We believe that USEY's UK gas properties hold
exciting offshore-sized potential," said Mr. Fogel. "We have a clear growth
strategy for increasing production of economical proved and probable reserves,
and we have a proven team of managers with more than 30 years of industry
experience to execute the strategy. We are proud that our team was able bring
Phase One of our UK natural gas growth strategy to completion ahead of
schedule and enable UKES to move swiftly into Phase Two."
UKES stated that drilling, testing and production from KM-4, its fifth
North Yorkshire producing well and the first producing well in the main
reservoir in its Kirby Misperton gas field, in addition to the installation of
compression, were driving factors behind its ability to successfully increase
gas flow and production potential considerably more than it had initially
estimated.
As discussed in a press release issued December 6, 2006, the Company
expects that reserve calculations for UKES's six North Yorkshire gas licenses
will be upwardly revised from an estimated 46 Bcf of proved reserves and 16.4
Bcf of probable reserves (cumulative 62.4 bcf) to reflect increased estimates
associated with the Kirby Misperton field and that the upward revision may be
by a significant amount.
UKES also stated that on December 31, 2006, the Knapton Power facility
experienced a power production stoppage due to a malfunction of the 42 MW gas
turbine. The turbine was replaced by a leased unit and put into service on
January 13, 2007 and the Knapton facility is again operating on a 24/7 basis.
Due to business interruption insurance coverage and the expeditious
installation of the leased unit, the Company said it expects no material
financial impact to be associated with the event.
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DuPont to help farmers and others meet President Bush's biofuels challenge
WILMINGTON, Del. - New technologies from DuPont will help farmers and others meet the biofuels challenge issued from President George W. Bush this week.
President Bush saw firsthand Wednesday new technologies DuPont is utilizing to help meet his challenge when he toured the company's global research and development facility here.
"The demand for alternative energy is going to put agriculture to the test and we have the science to help the industry meet the challenge," said Dean Oestreich, DuPont vice president and president of DuPont subsidiary Pioneer Hi-Bred International, Inc. "Through corn yield increases, cellulosic production and ethanol production efficiencies we will be able to double our per-acre ethanol output in 10 years."
"President Bush has set an ambitious goal for the nation to achieve a 20 percent displacement of fossil fuels in 10 years, and our biofuels program is primed to deliver the technologies needed to help get us there," said John Ranieri, DuPont Biofuels vice president and general manager. "In addition to energy security, biofuels technologies can be made from locally sourced feedstocks, such as corn stalks and can significantly reduce the associated environmental footprint."
In his State of the Union address, President Bush called for mandatory fuel standards that require 35 billion gallons of renewable and alternative fuels be used by 2017 - nearly five times the 2012 target now in place. Alternative fuels will come from sources such as corn ethanol, ethanol from cellulosic feedstocks, advanced biofuels including biobutanol, biodiesel and other alternative transportation energy options.
DuPont has been investing in a three-part strategy to deliver new technologies to the growing biofuels market while continuing to meet growing demand for grain corn, soybeans and other crops. The strategy includes: 1) improve existing ethanol production through differentiated agriculture seed products and crop protection chemicals; 2) develop and supply new technologies to allow conversion of cellulose to biofuels; and 3) develop and supply next- generation biofuels with improved performance.
Improve existing ethanol production
"The first part of DuPont's three-part strategy is about increasing yield per acre and enhancing ethanol yield of grain," said Oestreich. "We are doing this through biotechnology, enhanced and traditional breeding techniques, accurate product positioning on its customers' farms and ethanol yield prediction analysis of its corn hybrids."
"Pioneer is offering and continues to advance a broad array of tools to help farmers maximize their yields," he said. "We are using biotechnology to greatly speed up our research and development process, allowing us to bring improved products to the market faster. Biotechnology advances such as Herculex(R) Insect Protection traits and drought tolerance are or will soon be protecting their potential from yield-limiting factors. Pioneer agronomists are working closely with farmers to assist them with production challenges from corn-after-corn production. The Pioneer IndustrySelect(R) program identifies hybrids with higher ethanol yield potential and helps ethanol producers attain the hybrids they need to get higher ethanol yields per bushel."
A backgrounder on the efforts to help meet increased demand for ethanol and grain corn and can be found at
http://pioneer.mediaroom.com/file.php/271/ProdChallenge.pdf.
Conversion of cellulose to biofuels
Through a $38 million matching grant partnership with the U.S. Department of Energy, DuPont is developing a cost-effective technology package to produce cellulosic ethanol from entire corn plants. The program is developing the value drivers to economically convert cellulose to sugar and allow for the volumes needed to meet the demands of the biofuels market. DuPont is working with partners that include Deere & Company, Michigan State University, Diversa and the National Renewable Energy Laboratory. These organizations are working on answering questions such as whether a hybrid seed can be developed to improve conversion of cellulose to sugars; what type of new agricultural equipment will be needed to harvest this new crop; and how the industry will ensure sustainable agricultural practices.
"Ethanol produced from cellulose derived from corn stover and other plants will be an important part of the equation to meet the demand for fuel," Ranieri said. "Once this technology is optimized, we can move to other agricultural feedstocks, including switch grass and other future energy crops."
Develop and supply next-generation biofuels
In June 2006, DuPont and BP announced that they will bring the next generation of biofuels to market. The first product will be biobutanol. Biobutanol has low vapor pressure and tolerance to water contamination in gasoline blends, facilitating its use in existing gasoline supply and distribution channels. It has the potential to be blended into gasoline at higher concentrations than existing biofuels without the need to retrofit vehicles and it offers better fuel economy than gasoline-ethanol blends, improving a car's fuel efficiency and mileage.
"Biobutanol is an important part of DuPont's biofuels strategy," Ranieri said. "Developing biobutanol, which has properties that are closer to gasoline, will help to accelerate the adoption of biofuels in the transportation fuels industry."
DuPont - one of the first companies to publicly establish environmental goals 16 years ago - has broadened its sustainability commitments beyond internal footprint reduction to include market-driven targets for both revenue and research and development investment like biofuels. The goals are tied directly to business growth, specifically to the development of safer and environmentally improved new products for key global markets, including products based on non-depletable resources, like biofuels.
Pioneer Hi-Bred International, Inc., a subsidiary of DuPont, is the world's leading source of customized solutions for farmers, livestock producers and grain and oilseed processors. With headquarters in Des Moines, Iowa, Pioneer provides access to advanced plant genetics, crop protection solutions and quality crop systems to customers in nearly 70 countries.
DuPont (NYSE: DD) is a science-based products and services company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries and regions, DuPont offers a wide range of innovative products and services for markets including agriculture and food; building and construction; communications; and transportation.
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Natural gas sales for November 2006 (preliminary)
Colder than normal temperatures in the western provinces led to an overall increase in natural gas sales in November.
Natural gas sales totalled 6 843 million cubic metres in November, up 9.6% from November 2005. Sales to the residential sector increased 13.9% while the commercial sector was up 9.7%. The industrial sector (including direct sales) showed a lesser increase in sales of 7.5%.
On a year-to-date basis, sales at the end of November were down 1.2% compared with the same period last year.
Sales volume of natural gas to the industrial sector (including direct sales) have shown a negligible increase so far in 2006, while sales were down in both the residential (-3.0%) and commercial (-2.6%) sectors.
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Ethanol success depends on livestock
By Mark Buskohl
Renewable energy can be a boon to Iowa, but not without a vital piece: a growing, vibrant livestock industry.
Ethanol plants depend on livestock to consume the dried distiller's grain, (DDGs) a co-product of ethanol production. Ethanol plants will have to pay a lot more to dry and ship the co-product if they don't have local livestock.
What's more, if Iowa's livestock production declines, so will our corn production. Livestock and grain production have been intertwined for centuries in a sustainable cycle of agriculture. Livestock consume the DDGs and produce nutrients for the crops, which are grown to feed the livestock and the people and, now, our appetite for ethanol. This renewable-energy cycle can repeat itself again and again without foreign oil needed to make fertilizer or fuel.
Livestock provides opportunities for young people to get started in this capital-intensive business called farming. Rural Iowa is approaching a renaissance with the production of renewable energy. But that progress can only be framed by the continued growth of livestock.
Copyright © 2007, The Des Moines Register
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The Co-operators Gets Behind Sustainable Energy
GUELPH, ON - The Co-operators is committed to the fight against climate change - and promoting the use of environmentally-friendly alternative sources of energy is a key battleground. With this in mind, the group of companies is making major overtures to sustainable energy operations. Today The Co-operators announced grants totalling $50,000 to three Ontario-based wind energy organizations, co-operatives all.
The Toronto Renewable Energy Co-operative (TREC) is a not-for-profit
energy co-operative that erected the first urban wind turbine in North
America. The Co-operators second grant of $10,000 - dedicated to supporting
education, outreach and volunteer development for TREC - ensures the
organization is going strong and will continue to serve as a model energy
co-op for the sector.
Located in south-western Ontario, the Countryside Energy Co-operative
(CEC) is developing the first community-owned wind co-operative in North
America. The Co-operators grant of $20,000 in support of project management
and technical assessments - crucial to further developing the initiative
-makes CEC eligible for matching funding from the Ontario Ministry of
Agriculture, Food and Rural Affairs.
The Ontario Sustainable Energy Association (OSEA) supports 21 member
organizations, 17 of which are recognized renewable energy co-operatives. OSEA
plays an indispensable role in co-ordinating the movement's efforts, and The
Co-operators grant of $20,000 will help it maintain momentum as a major force
within the energy sector as it adds another staff member to its roster.
The Co-operators president and CEO, Kathy Bardswick, explains "Our group
of companies is focused on increasing the profile of renewable energy as a
positive vehicle for moving forward with environmental sustainability. By
supporting a number of organisations dedicated to the same goal, The
Co-operators is working to develop the capacity and infrastructure of this
emerging sector."
Deborah Doncaster, OSEA's executive director, comments on the importance
of The Co-operators support for energy co-ops. "The renewable energy sector
needs to have a strong and durable infrastructure in place; somewhere it can
turn to for support, direction and collective representation. OSEA's main
contribution to the renewable energy movement will be to provide that
cornerstone." She concludes, "The Co-operators support for our sector speaks
both to its vision as a corporate citizen and its belief that communities -
supported by local co-operatives - ought to play a decisive role in ensuring
their own environmental security."
As a leading Canadian co-operative, The Co-operators is proud of the
progress Canadian co-operatives are making as they play a leading role in the
nation's energy transformation. As the Canadian public becomes increasingly
aware of the co-op sector's potential for addressing key societal concerns,
the leading co-operative is confident that its partners in the co-op sector
will be called upon to play a major role in service delivery and environmental
protection.
Since its inception, The Co-operators Co-operative Development Fund has
invested more than $1 million in emerging and expanding Canadian
co-operatives.
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ARISE Signs Letter of Intent with Commerzbank for Bank Financing
DRESDEN, Germany - ARISE Technologies Corporation, announce on January 16, 2007, that it has signed a non-binding Letter of Intent with Commerzbank AG for a bank credit facility. This debt funding combined with the previously announced German incentives is anticipated to provide approximately 75% of the funds required for the EUR 50 million ARISE high efficiency photovoltaic (PV) cell manufacturing plant that ARISE plans to start construction on in Bischofswerda, Germany this year. The credit facility includes term equipment loans, a letter of credit facility and bridge financing for the construction project. Finalization of credit facility documents and the subsequent availability of the credit facility loans are subject to a number of conditions that are typical for transactions similar to this, including the raising of additional equity capital, and the bank is currently conducting extensive direct and 3rd party due diligence. Commerzbank is the second largest commercial bank in Germany with a consolidated balance sheet of above EUR 600 billion.
Ian MacLellan, President and CEO of ARISE commented, "We have been very
impressed with the depth of knowledge that Commerzbank has of the PV industry.
Their dedicated Center of Competence for Renewable Energies located in Hamburg
and strong local presence in the state of Saxony made this process very
productive. We are excited to have Commerzbank AG as our banking partner in
Germany."
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Centre CORUS: A Natural Laboratory working on extracting wind energy
MURDOCHVILLE, QUEBEC - The TechnoCentre eolien Gaspesie - les Iles and its partners are pleased to inaugurate Centre CORUS, a facility dedicated to the study of the various facets of extracting wind energy in nordic environments. This research, development and technology transfer centre established in Murdochville possesses expertise that is unique in North America.
Centre CORUS has chosen for itself a highly appropriate name since the word "corus" means a cold wind from the north west, which happens to be the dominant wind in the Murdochville region. Located at an elevation of 660 metres and swept by winds with an average speed of nine metres/second, Centre CORUS is a place of innovation, a magnet for Quebec know-how, and its expertise will help drive wind energy industry development.
The purpose of the centre is to provide affiliated researchers with the best possible research environment and specialised state-of-the-art research tools. It offers an integrated service with the support of its partners, the Ecole de technologie superieure (ETS), Universite du Quebec a Chicoutimi (UQAC), Universite du Quebec a Rimouski (UQAR), Cegep de la Gaspesie et des Iles and Cegep de Matane.
Research done at Centre CORUS focuses on the following areas:
- Climate conditions, wind energy potential, and field trials;
- Blade aerodynamics and wind farm simulations;
- Materials and processes; and
- Ice and de-icing techniques.
"Centre CORUS is highly innovative. Over the last few years, we have worked unstintingly to develop Quebec competencies in matters connected to the wind energy field. Today, we can proudly affirm that by pooling our resources, Quebec has taken the lead in research and development," stated Jean Desrosiers, General Manager of the TechnoCentre eolien and Centre CORUS.
"I am proud of the support the Government of Canada has given the TechnoCentre eolien Gaspesie - les Iles to develop this emerging industry. Since 2002, it has invested some $3,480,000 in the project, at the same time providing support for the Centre CORUS we are inaugurating today. The establishment of such a centre is a major step for knowledge building and economic diversification in the region," stated the Honourable Jean-Pierre Blackburn, Minister of Labour and Minister of Canada Economic Development.
Centre CORUS is housed in a former Noranda building ceded by the Ville de Murdochville for the symbolic sum of one dollar. Renovation work called for an investment of $500,000. The centre already has equipment worth nearly $300,000 and two permanent jobs have been created to date.
Centre CORUS and the TechnoCentre eolien share an annual operating budget of about one million dollars, a total investment of six million dollars over five years.
BACKGROUNDER
The nordic context: An environment to discover and learn to use
Centre CORUS began its research program two years ago and since then has conducted two measurement campaigns, in 2004-2005 and 2005-2006, using a multi-measurement tower to characterise the nordic climate.
The goal of these measurement campaigns was to:
- Conduct a preliminary comparative study of measurement instruments commonly used in the industry; and
- Identify the characteristic parameters of conditions conducive to the appearance, formation and build-up of ice.
The two measurement campaigns were conducted jointly with Universite du Quebec a Rimouski, the Ecole de technologie superieure's Canada Research Chair on the Aerodynamics of Wind Turbines in Nordic Environments and the Universite du Quebec a Chicoutimi's International Anti-icing Materials Laboratory.
The findings resulting from analysis of the data obtained show that under specific conditions, some measurement instruments provide erroneous data or simply stop functioning. Consequently, much remains to be done to improve the reliability of measurement instruments. These conclusions were presented at the International Conference on Wind Energy and Remote Sites held on the Magdalen Islands in October 2005 and at the annual conference of the Canadian Wind Energy Association in Winnipeg in October 2006.
The TechnoCentre eolien takes the opportunity provided by the inauguration of Centre CORUS to present the members of the scientific committee. They are notably responsible for assessing projects, according to pre-established criteria, that the scientific community and the industry will submit to the centre and which, if accepted, will be carried out by Centre CORUS and its partners.
The members of the Centre CORUS scientific committee are:
- Redouane Megateli, Scientific Director
- Christian Masson, President, ETS representative
- Jean Perron, UQAC representative
- Adrian Ilinca, UQAR representative
- Christian Vezina, Groupe Ohmega
- Robert Vincent, 3Ci
- Denys Laplante, Ministere du Developpement economique, de l'Innovation et de l'Exportation
- Antoine Lacroix, Natural Resources Canada
The third phase of the measurement campaign project will begin in spring 2007 with the installation of a tower on Mount Needle at an elevation of 900 metres. During this phase, some twenty measurement instruments will be compared and the various types of ice and their characteristic parameters will be examined more closely.
Four other projects currently being fine-tuned will gradually take shape over the course of the next few months.
- Surface treatment to prevent ice formation
- Full instrumentation of a high-power wind turbine
- Biodegradable lubricants
- Canada's Wind Energy Research Network
"Climate conditions and more generally, the North American context, are quite different from those encountered in Europe. Centre CORUS will enable the wind energy industry to adapt existing technologies and develop new ones to meet the challenges posed by our geographic reality and all its related parameters. The centre will advance research as far as possible to address the needs of all players in the wind energy field," indicated Redouane Megateli, the Centre CORUS Scientific Director.
The mission of the TechnoCentre eolien is to contribute to the development of an industrial wind energy network able to compete on foreign markets in areas involving equipment and services. It seeks to facilitate networking amongst stakeholders in the public and private sectors and thus solidify Quebec leadership in developing the wind energy sector via the regions comprising the Gaspe Peninsula - Magdalen Islands and the MRC de Matane.
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Kreido Biofuels, Inc. Completes Merger and Closes $25 Million Private Placement
CAMARILLO, CALIF. - Kreido Laboratories, a privately held alternative energy company, announced January 16, 2007, the completion of a reverse merger with publicly held company Gemwood Productions, Inc. The Company, which will operate under the name Kreido Biofuels, Inc., is now listed on the OTC market (OTCBB:KRBF) and will pursue Kreido Laboratories' renewable energy and process intensification business. In contemplation of the merger, Kreido Biofuels completed a $25 million private placement of common stock and warrants to a group of institutional and accredited investors led by Wellington Asset Management, a Boston-based financial firm with $540 billion in assets under management.
"Substantial investments in our private placement from several premier
institutional investors, plus the continued strong support of our existing
investors, have given us access to both capital and strategic introductions
that will position the Company for rapid growth and accelerated time to
market," said Dr. Joel Balbien, President & CEO. "Further, the public listing
of our securities will help us gain mindshare as a leader in alternative fuels
and process intensification technology, and facilitates our international
licensing efforts."
Kreido Biofuels, Inc. will develop, own, and manage biodiesel plants,
market biodiesel, and license its advanced process intensification technology.
Through the application of its novel patented STT(R) reactor system, the
Company can rapidly switch between alternative vegetable oil feedstocks within
a cost-effective minimal-footprint plant. The STT(R) technology is also being
applied by Licensees and partners to the development and commercialization of
other chemical products - including "Green Solvents" and small molecule
pharmaceuticals - where it has the potential to increase yields, enhance
selectivity, and significantly shorten time to market.
Kreido has invested over $20 million developing its patented STT(R)
reactor system. The Company's technology can rapidly scale a number of
chemical processing recipes, including unique formulas for soy, canola, and
palm biodiesel, from "Pounds per day" to "Tons per day" of continuous
production. Over ninety-five percent of existing biodiesel plants employ a
variation of the traditional transesterification process. According to COO Ben
Binninger, "We offer a way to significantly reduce the cost of processing, as
well as accelerate time to market."
Kreido Biodiesel is currently developing three biodiesel production
facilities located in the mid-west and southeast with a combined production
capacity of over 100 million gallons of biodiesel per year. Kreido Biodiesel
is concentrating its plant construction in existing liquids handling
facilities located on deep water ports, where there is storage and
transportation infrastructure, potential for rapid permitting, and access to
multiple feedstocks and fuel distributors. The Company expects the first plant
to be operational in 2007 and the balance of the plants in 2008.
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Major boost for biofuels sector
By Philip Clarke
More biofuels will be used in road transport in future, under new EU Commission proposals to increase the minimum inclusion rates and make them compulsory.
The plans were announced earlier this week as part of the commission’s new Energy Policy for Europe.
Currently the EU only sets targets for biofuel inclusion rates in road diesel and petrol.
The first target was 2% by 2005, though figures released this week show that only two member states – Germany and Sweden – have met this.
The next voluntary target is 10% inclusion by 2010, though again the vast majority of member states will miss this.
But under the new energy plan, the commission wants to set a binding minimum level for biofuels of 10% in vehicle fuel by 2020.
Under the proposal, which could be agreed by ministers as early as March, each member state will have to set out a national action plan to show how it will meet the new target.
EU agriculture commissioner Mariann Fischer Boel said the policy was “good news for agriculture”. “This is a strong signal to send to European agriculture and industry, showing a true commitment to creating a larger market for bioenergy.”
Biofuels are seen as beneficial in that they are clean and renewable, will create up to 300,000 new jobs throughout Europe and open new markets for farmers.
Production is already encouraged through the use of the €45/ha energy crop premium, available on up to 2m ha throughout the EU.
National top-ups are also available in some member states.
© Reed Business Information Limited 2007
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Greenfuel Technologies Corporation signed a strategic alliance agreement with IGV
CAMBRIDGE, Mass. - Greenfuel Technologies Corporation, a leader in the development of algae bioreactor technology for recycling CO2 in flue gases into clean, renewable biofuels, announced that it has signed a strategic alliance agreement with IGV, a private industrial research institute headquartered in Pottsdam, Germany.
IGV is a pioneer in micro-algae research and production with more than 80 commercial technology deployments worldwide. The announcement was made today in Pottsdam at a special signing ceremony attended by several Brandenburg government ministers and other high-ranking German dignitaries of science, industry and politics.
Under the terms of the agreement, GreenFuel and IGV will share proprietary algae bioreactor technology in an effort to accelerate the commercialization of biofuel production from recycled carbon dioxide in power plant flue gas emissions. GreenFuel and IGV will also pursue commercial opportunities together in Europe. Once in commercial production, the GreenFuel Emissions-to-Biofuels™ process will allow power plants to significantly reduce carbon dioxide emissions, generate carbon credits, and produce clean, renewable biofuels.
Algae are unicellular plants and, like all plants, they divide and grow using the process known as photosynthesis. GreenFuel estimates that its Emissions-to-Biofuels™ process can absorb a significant percentage of a power plant’s CO2 emissions during the daytime. Unlike typical agricultural biofuel feedstocks, such as soybeans or corn which have a limited harvest window, algae multiply every hour and can be harvested every day. Algae can also be grown on poor quality land with non-potable water, so they don’t compete for land suitable for food crops. The carbon-enriched algae contain lipid oils and starches that can be converted into biodiesel and ethanol for transportation fuels. The residual protein can be used for animal feed and nutritional supplements. GreenFuel is currently involved in a number of Emissions-to-Biofuels™ pilot projects in the USA, Australia, Europe, and South Africa.
“We are extremely impressed with the knowledge, experience and professionalism of the entire IGV organization,” said Cary Bullock, CEO of GreenFuel Technologies Corporation. “We believe that IGV will be a valuable and strategic partner in our efforts to bring our Emissions-to-Biofuels™ algal bioreactor systems into full-scale commercial production at a number of locations around the world.”
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Enbridge Gas Distribution wins Industry Partner of the Year Award for home energy efficiency initiatives
Markham - EnerQuality Corporation awarded Enbridge Gas Distribution the Industry Partner of the Year Award (sponsored by the EnerQuality Builder Council) during the EnerQuality Awards of Excellence ceremony. Held January 12, 2007 in Markham, in conjunction with the Ontario Building & Renovation Forum, the Awards were presented to outstanding building professionals, industry partners and homebuilders for advancing energy efficiency in new home construction.
"I'm very please that Enbridge Gas Distribution has won this award," said Corey McBurney, Managing Director of EnerQuality Corporation. "They have gone above and beyond to support energy efficiency in new homes."
Enbridge Gas Distribution, an early and active supporter of ENERGY STAR® for New Homes and EnerGuide for New Houses, has combined marketing support with a team of eight New Housing Market Consultants in the field promoting new home energy efficiency. Enbridge Gas Distribution has also initiated builder/trades training, is involved in consumer research, and has continued to reward builders with a financial incentive for building energy efficient homes.
EnerQuality manages three popular energy efficiency initiatives in Ontario targeting new housing: ENERGY STAR for New Homes, EnerGuide for New Houses, and R-2000. These three initiatives have a total of 354 participating homebuilders including the largest builders in the country and the support of government and private sector partners including Natural Resources Canada, Ontario's Conservation Bureau, Enbridge Gas Distribution, the Canada Mortgage and Housing Corporation, DuPont Tyvek, Icynene, Owens Corning, and OZZ Corporation.
"We are proud to work together with home builders and other organizations to support ENERGY STAR for New Homes which delivers a win-win-win result," said Lino Luison, Vice President, Enbridge Gas Distribution. "Builders win by offering homebuyers an energy efficient choice, homebuyers win through reduced energy bills and we all win through reduced environmental impact."
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Canada's largest solar research park launched
University of Toronto, ARISE Technologies and Portlands Energy Centre
partner to make Toronto a leader in solar power research
TORONTO - The University of Toronto (U of T), ARISE Technologies and The Portlands Energy Centre (PEC) have joined forces to create Canada's largest solar research facility, which will be located on the PEC site on Toronto's waterfront.
"This project will establish Toronto and Ontario as a world leader in
solar energy research and development and education," said Energy Minister
Dwight Duncan. "Solar and other forms of renewable energy are an important
part of Ontario's energy future."
When completed, the facility will harvest enough solar energy to power up
to 1,000 homes. The community will be able to participate through a community
based share offering.
Under the agreement announced today, PEC will provide land worth about
$2.4 million. ARISE will design and install a photo power system utilizing
high efficiency photovoltaic (PV) cell technology developed by ARISE and
U of T. The solar park will create between 500 kilowatts and 1 megawatt,
representing an investment between $5 to $8 million.
U of T students and staff at ARISE will use the facility to conduct
research on renewable energy systems and technologies. This will help develop
the utilization of PV systems for commercial and utility scale systems.
The PEC site is an ideal location for this project as it's an urban
setting close to the university, has access to transmission lines and offers a
large tract of land with an unobstructed southern exposure.
Later this year, ARISE will issue a community based share offering that
will allow residents to participate in the project. Standard Offer Contract
details with the Ontario Power Authority and government officials regarding
permits have not been finalized. Details on the community share offering and
exact size of the facility will be announced at a later date. The project is
expected to be installed in late 2008 or early 2009.
"We're thrilled to be part of this project and help create the path to a
more sustainable future. We're looking forward to working with ARISE and the
students," said Jim Burpee, PEC Chairman.
"This is an excellent opportunity for our students to get first hand
exposure to commercial scale solar electric systems," said Nazir Kherani, a
Photovoltaics Professor at U of T. "In addition, the facility will provide a
research venue for large scale, grid connected photovoltaic systems," said
Reza Iravani, an Energy Systems Professor at the University.
"We are very pleased to be involved with this and will use this project
as a large scale deployment of our high efficiency PV cells. We expect that
the cells used in modules for this project will be produced by one of our
partner companies. This project will provide an opportunity for our systems
group to study and optimize implementation of large scale systems for
deployment in Ontario," commented Ian MacLellan, President and CEO of ARISE.
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Ethanol industry looking beyond corn
BROOKINGS, South Dakota - Explosive growth in the ethanol industry is prompting many corn farmers to look for an alternative source for the alternative fuel.
One place they are looking is in their fields after the corn harvest.
Scientists are developing ways to turn crop residues such as corn stover into ethanol, and demonstration plants could begin using such materials within the next year, experts said Tuesday during a conference at South Dakota State University.
The stover, which is all of the corn plant except the ear, is attracting attention because it is abundant and can provide added income to farmers already supplying the ethanol industry, said Susan Andrews, an ecologist with the federal Natural Resources Conservation Service.
But stover already plays an important role in corn fields by combating erosion, adding organic matter and nutrients to soil and increasing biological activity, she said.
"Residues perform many ecosystem services and their removal should not be taken lightly," Andrews said.
Researchers are focusing on what percentage can be removed without hurting yields.
More residue can be removed from no-till land than from conventional plow fields, and cooler wet climates can tolerate removal better than dry fields. Low residue crops such as soy decompose fast, so farmers using a corn-soybean rotation should only remove stover and leave behind soy plant residue, Andrews said.
Gregg Carlson, an SDSU soil scientist, said farmers must consider stover's value both as a natural fertilizer and a feed source when determining its worth on the open market.
Residues such as corn stover and wheat straw comprise just a fraction of the potential sources of cellulosic or biomass fuel, said Bruce Jamerson, president of VeraSun Energy Corp., a Brookings-based ethanol producer.
Energy crops, which include switchgrass, elephant grass and fast-growing trees such as aspen and willow, can produce higher tons per acre for the industry.
"There's more energy in those plant materials than in residues," Jamerson said.
Other potential alternative fuel sources include garbage and forestry resources such as chips, bark and sawdust.
Nearly 200 people attended Tuesday's conference, titled "Corn and Ethanol Production: Mapping a Path to a Sustainable Future." It was sponsored by SDSU, the South Dakota Corn Utilization Council and the South Dakota Corn Growers Association.
The cellulosic industry is in its infancy, so there is an opportunity for corn growers to get involved early, said Brian Woldt, president of the utilization council.
Farmers are used to moving large volumes of material, dealing with legislative issues and creating a lot of capital, and companies developing new technologies will need that expertise.
Jamerson said biomass technology is still being developed but has the potential to revolutionize the ethanol and fuel industries.
The industry should see demonstration plants coming online within the next year or two and full commercialization in three to five years.
"There's no question in my mind that this will come, and we have to be ready for it," Jamerson said.
Copyright 2006 Associated Press
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Hydro One wins international award for storm restoration
TORONTO - The Edison Electric Institute today honoured
Hydro One Networks as a winner of the association's "Emergency Recovery Award"
for outstanding efforts to restore electric service following three successive
severe storms this past summer and fall.
The Edison Electric Institute annually presents its "Emergency Recovery
Award" in recognition of outstanding efforts in restoring electric service
that has been disrupted by severe weather conditions or other natural events.
Winners are chosen by a panel of judges following a continental nomination
process.
Edison Electric Institute (EEI) is the association of United States
investor-owned electric utilities and industry affiliates and associates
worldwide. Its American members generate approximately three-quarters of all
the electricity generated by electric utilities in the Unites States and serve
about 70 percent of all ultimate customers in the nation.
Hydro One Networks saw outages of 170,000, 150,000 and 90,000 customers
during respective storms this past July, August and September, and each time
the company restored power within seven days to an affected service territory
twice the size of Texas. With massive and repeated damage to its system, Hydro
One crews logged an estimated 270,000 employee hours in some of the most
challenging terrain in North America.
The company innovatively utilized helicopters to remove heavy debris
during one storm, built a road to a hard-to-reach area of damage in another
and efficiently used local employees to dispatch crews to unfamiliar terrain
in the third.
"Hydro One Networks' employees showed incredible resilience and
persistence in the face of these terrible storms," said EEI President Thomas
R. Kuhn. "Their effort is an inspiration to the rest of our industry, and yet
again shows the dedication of our industry to get electricity restored in the
face of massive, weather-related power outages."
"It's great to be recognized by our peers for our ability to get the
lights back on," said Myles D'Arcey, Hydro One Networks Senior Vice President
of Customer Operations. "Our customers and our crews faced a very challenging
summer of storms, and we're proud that we're considered among the best in the
business at the safe and rapid restoration of electricity."
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How will ethanol growth affect rural America?
By Frank Holdmeyer
The huge growth in ethanol production will have little-to-no impact on food price inflation this year, according to Keith Collins, a USDA economist.
"Food prices in 2007 will generally be a reflection of the price of crops consumed by consumers and meat prices, which have a very important role in food price inflation," said Collins on Sunday.
"Meat prices this year will reflect decisions made by producers over the last couple of years," continued Collins. "The cattle cycle has been building over the last couple of years. I don't think ethanol will have much of a role in the price of beef. Hog prices are actually declining, not increasing. Poultry prices are likely to come up in 2007, but that can't be directly attributed to ethanol.
"Ethanol will be a factor, but a very small factor with respect to overall price prospects. But as ethanol continues to grow year after year, we'll some price adjustments in the livestock sector."
Collins made these remarks at a press conference the first day of the 88th Annual Convention of the American Farm Bureau Convention.
When asked about the real impact of ethanol growth on rural America, Collins explained USDA has entered into an agreement with the Center for Agriculture and Rural Development at Iowa State University. "They are studying the effects of bioenergy on the rural economy. Many areas are involved, such as methane production. But ethanol is the 'elephant'. Bio diesel is growing but I have no data as to what that means to farmers and non-farmers in rural America."
Ethanol production is on a "break-neck path right now", continued Collins. Between June and December last year, plants under construction went up by 4 billion gallons. That will require 1.5 billion bushels of corn. At 150 bushels per acre, 10 million acres will need to be devoted to ethanol production.
"If ethanol production stays on that kind of break-neck path, we could reach a point where new ethanol markets will be needed just to maintain ethanol's price. As we look to the future, ethanol is going to have to move into E-10 blend markets all across the United States. At some point, E-10 blend markets will be saturated and ethanol will have to move from being a blending agent to a stand-alone fuel. That's a transition I think can happen, but there may be some bumps in the road."
Copyright © 2005 Farm Progress Companies
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Crude oil and natural gas: Supply and disposition increase in October 2006
Higher bitumen output from the Alberta oil sands, combined with higher offshore production in Newfoundland and Labrador, pushed up production of crude oil and equivalent hydrocarbons in October.
Production amounted to 13.5 million cubic metres, up 4.5% from October 2005. (One cubic metre is equivalent to 6.3 barrels).
On a year-to-date basis, production of crude oil and equivalent hydrocarbons reached 126.8 million cubic metres during the first 10 months of 2006, up 6.3% from the same period in 2005.
Crude oil exports, which accounted for 63% of total production, were 11.4% higher than in October 2005.
Marketable production of natural gas rose 4.7% to 14.8 billion cubic metres.
Domestic sales of natural gas advanced 22.5% from October 2005. According to October natural gas sales data, this increase was a result of sales gains in all sectors: industrial (+21.8%), commercial (+28.3%) and residential (+21.2%).
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Rise in ethanol raises concerns about corn as a food
By Alexei Barrionuevo
CHICAGO - Renewing concerns about whether there will be enough corn to support the demand for both fuel and food, a new study has found that ethanol plants could use as much as half of America’s corn crop next year.
Dozens of new ethanol plants are being built by farmers and investors in a furious gold rush, spurred by a call last year from the Bush administration and politicians from farm states to produce more renewable fuels to curb America’s reliance on oil. But the new study by the Earth Policy Institute, an environmental group, found that the number of ethanol plants coming on line has been underreported by more than 25 percent by both the Agriculture Department and the Renewable Fuels Association, the ethanol industry’s main lobbying group.
The Earth Policy Institute says that 79 ethanol plants are under construction, which would more than double ethanol production capacity to 11 billion gallons by 2008. Yet late last month, the Renewable Fuels Association said there were 62 plants under construction.
The lower tally has led to an underestimate of the grain that would be needed for ethanol, clouding the debate over the priorities of allocating corn for food and fuel, said Lester R. Brown, who has written more than a dozen books on environmental issues and is the president of the Earth Policy Institute. “This unprecedented diversion of corn to fuel production will affect food prices everywhere,” Mr. Brown said.
Bob Dinneen, the president of the Renewable Fuels Association, said the group had not intentionally tried to play down the number of plants under construction. “It has been a moving target,” Mr. Dinneen said in an interview on Thursday. “We are not trying to hide the ball. We are trying to keep up with a growing and dynamic industry as best we can.”
The Renewable Fuels Association has generally played down concerns in the food versus fuel debate over ethanol, saying that estimates showed there would be plenty of corn to meet the demand for both. “We can absolutely do that without having a deleterious impact on consumer food prices,” Mr. Dinneen said.
The National Corn Growers Association said Thursday that farmers were keeping up, noting that growers produced their third-largest crop in 2006 of 10.7 billion bushels. “All demands for corn — food, feed, fuel and exports — are being met,” Rick Tolman, chief executive of the corn growers, said in a statement. “Farmers have always responded to price signals from the marketplace and, historically, we have had much more challenge with overproduction than shortage.”
With spot prices of corn soaring to record highs of nearly $4 a bushel last month, farmers are expected to plant some 85 million acres of corn this year, an increase of 8 percent over 2006 and what would be the largest corn-seeding in the country since 1985, said Dan Basse, president of AgResource, an agricultural research company in Chicago.
Ethanol has raised the incomes of farmers and given new hope to flagging rural economies. But the reliance on corn to produce ethanol in the United States has drawn concerns from some economists, who question whether the drive to corn-based fuel will push up the prices of livestock and retail prices of meat, poultry and dairy products.
Mr. Brown is among those who believe the ethanol industry is growing too quickly. He called for a federal moratorium on the licensing of new distilleries. “We need a time out, a chance to catch our breath and decide how much corn can be used for ethanol without raising food prices,” he said Thursday.
Like many other experts, he advocates moving past corn-based ethanol into cellulosic ethanol, produced from plant waste and nonfood crops like switch grass.
For now, however, in the anticipation of high potential returns, ethanol plants that rely on corn are being built by everyone from farmers to Bill Gates of Microsoft to a mix of Wall Street investors. In addition to the 116 ethanol plants in production, and the 79 under construction, at least 200 more ethanol plants, with a capacity of 3 billion gallons a year, are in the planning stages.
In all, ethanol distilleries now running or in the works will pull an estimated 139 million tons of corn from the 2008 corn harvest, according to the Earth Policy Institute. That is about double the demand projected by the Agriculture Department and will require over half of the projected 2008 corn harvest of about 11 billion bushels.
Keith Collins, the Agriculture Department’s chief economist, did not respond to requests for comment. One reason for the department’s projection of just 60 million tons of corn used for ethanol is that it was released last February, before surging oil prices set off investor interest in ethanol plants. The Agriculture Department will release its new projections next month.
But the pace of plant construction may be slowing. Shortages of galvanized steel and backlogs for special tanks for the distilleries have pushed construction time back from 18 months to as much as 28 months for some plants, Mr. Basse said.
Some towns are also demanding environmental studies to better understand the impact ethanol plants can have on water supplies and quality of the groundwater, which has delayed permits for new processing plants.
Copyright 2007 The New York Times Company
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Biodiesel is transitional technology says Nextant
By Giles Clark
LONDON - A newly published study by Nexant, "Liquid Biofuels: Substituting for Petroleum", concludes that fatty acid methyl ester biodiesel will probably be a transition technology, capable of substituting for only a small fraction of global diesel demand.
However, as a biodegradable, low-toxicity product, it will likely hold market share far into the future. Bioethanol from grains and sugar, though an excellent high-octane gasoline blendstock, has many practical problems and is also likely to be transitional over the long term. The report projects that the next phase of development is likely to be ethanol made by fermentation of sugars obtained through biomass hydrolysis.
The report also concludes that, perhaps sooner than some may believe, integrated thermochemical platforms will take the lead in producing both gasoline and diesel range biofuels (biomass-to-liquids [BTL], similar to coal-to-liquids and gas-to-liquids), most likely in conjunction with electric power and chemicals. This alternative should be, and probably will be, pursued contemporaneously with developing biomass-based ethanol.
Regardless of which substrate is used to produce it, ethanol will eventually need to be dehydrated to hydrocarbon gasoline fractions that are more compatible with the existing fuel distribution and vehicle infrastructure.
In adopting ethanol dehydration, higher alcohols, and biofuels from syngas, society will make tradeoffs between two options: (1) the current renewable, sustainable biofuels that are biodegradable and have low toxicity, but have limited supply potential, and (2) other biofuels that are equally renewable and have small carbon footprints but are less biodegradable or more noxious-yet are more attractive in other ways.
While crop biotechnology may provide a more productive, varied, and stable feedstock platform for a biofuels industry, the potential for early conflict with food is probably underestimated. The role of byproducts such as DDGS, and possibly biodiesel glycerine, in balancing animal nutrition supplies is conversely underrated or even missed by many analysts. Nonetheless, the market's mere perception of competition of biofuels for sugar and grains with the food, feed, and fibers sectors seems to be enough to cause dislocations. This is already evident in the markedly higher late 2006 prices for U.S. corn, Brazilian sugarcane, and European rapeseed-each the primary biofuel feedstock in its venue.
The study outlines a number of highly attractive "paths of least resistance" for developing the global biofuels industry based on leveraging current or co-developing technologies, such as coal gasification and gas-to-liquids catalysis. For the interim strategy of fermenting sugars from biomass, a number of preparation options are available, and thermal utilization of fermentation process residues needs to be carefully considered. For the thermochemical platform of the future, more work must be done to develop in-field pyrolysis of biomass to help overcome logistics challenges, as well as biomass gasification and system optimization.
The study profiles a broad range of agricultural and biotechnology platforms and issues, and its geographic coverage includes the countries playing significant roles in biofuel feeds, production, and/or technology development over the next decade, including:
The Americas - primarily, the U.S., Brazil, and Canada, and also other countries in the hemisphere with activities in liquid biofuels
Europe - Western, Central, and Eastern, and Russia
Asia - primarily, China, Japan, India, Thailand, and Malaysia, and also other countries in Asia with activities in liquid biofuels
Africa (primarily South Africa) and Australia
© 2007 Biofuel Review
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Animal fats touted as future fuel source
DEXTER, Mo. - Jerry Bagby is typical of the oil men who are prospecting for a fortune in the Midwestern biofuels boom. He's convinced there's oil in these hills -- and he's found a well that no one else is using.
Bagby and a longtime friend have cobbled together $5 million to build a new biodiesel plant on the lonely croplands outside this southeast Missouri town. They're betting they can hit paydirt by exploiting a generally overlooked natural resource that's abundant in these parts -- chicken fat.
There's a virtual gusher of the stuff at a nearby Tyson Foods Inc. poultry plant. Currently, the low-quality fat is shipped out of state to be rendered and used as a cheap ingredient in pet food, soap and other products.
Bagby and his partner Harold Williams plan to refine the gooey substance, mix it with soybean oil and produce about 3 million gallons of biodiesel annually.
Today, only a tiny fraction of U.S. biodiesel is made from chicken fat, but that seems likely to change. The rising cost of soybean oil -- which accounts for roughly 90 percent of all biodiesel fuel stock - is pushing the industry to exploit cheap and plentiful animal fats.
The nation's biggest meat corporations have taken notice. Tyson Foods announced in November it has established a renewable energy division that will be up and running during 2007. Competitors Perdue Farms Inc. and Smithfield Foods Inc. are making similar moves.
As meatpackers enter the field, they bring massive amounts of fuel stock that could make biodiesel cheaper and more plentiful.
The shift to animal fat as a fuel stock could be key to making the budding biodiesel industry a reliable fuel source for U.S. trucking fleets, said Vernon Eidman, a professor of economics at the University of Minnesota who has extensively studied the biofuels industry.
Eidman estimates that within five years, the U.S. will produce 1 billion gallons of biodiesel, and half of it will be made from animal fat. By that time soybean-based biodiesel will account for about 20 percent of the total, he said.
For fuel refiners like Bagby, the allure of animal fat is clear. Soybean oil costs 33 cents a pound while chicken fat costs 19 cents. He only plans to include soybean oil in his blend because it adds necessary lubrication for engine parts.
'Soybean oil is more expensive than other products, so we just use enough of it to make the system run clean,' Bagby said, gesturing toward a row of pipes and vats being installed in his new refinery.
For companies like Tyson, the attraction is simple. Being the nation's biggest meat company, Tyson is also the biggest producer of leftover fat from chicken, cattle and hogs.
Tyson is keeping the specifics of its renewable fuels division under tight wraps. But Tyson Vice President Jeff Webster told a recent investment conference the potential is clear. Tyson produces about 2.3 billion pounds of chicken fat annually from its poultry plants. That's about 300 million gallons that could be converted to fuel.
The market for biodiesel and ethanol really started to boom in August 2005, after passage of the federal Energy Policy Act, experts say. The bill set a new standard requiring the U.S. to use 7 billion gallons of renewable fuels by 2012.
While it's always been cheaper, animal fat was initially overlooked as a biodiesel fuel stock because of its uneven quality, Eidman said.
When the energy bill passed, soybean oil was already widely sold as a food additive. Biodiesel refiners could depend on its quality because the oil was marketed and certified under a strict guidelines, Eidman said.
Animal fat also has its technical drawbacks. It clouds up at higher temperatures than soy-based biodiesel, which means it might thicken up when used in colder, northern cities, Eidman said. That might limit distribution to southern areas where temperatures don't often drop below 40 degrees or so.
While these factors kept animal fat in the background, the biodiesel industry has hit a turning point.
Increasing demand for soybean oil as a fuel and as a food is making the price creep up. It now makes economic sense to invest in new technology to process animal fat into usable form as a fuel stock.
Tyson and Perdue are already experimenting with biodiesel. Both companies have started using biodiesel in their trucking fleets.
Salisbury, Md.-based Perdue is also selling soybean oil as a biodiesel fuel stock through the company's Grain and Oilseed Division. The company also said this summer it's studying plans to build its own biofuels plants or invest in others.
Smithfield Foods has established its own biofuels division. The Smithfield BioEnergy group is studying how to turn hog waste into fuel and has also started producing biodiesel from vegetable oil. The company didn't comment on the division, but recent financial filings say the biodiesel program is still losing money because of startup costs.
Having a massive new source of fuel stock is a welcome development for the biodiesel industry, said Amber Thurlo Pearson, a spokeswoman for the National Biodiesel Board.
'More biodiesel in the marketplace could help make biodiesel's cost even more competitive with diesel fuel,' Pearson said.
The board estimates that U.S. biodiesel production is tripling annually, going from 25 million gallons in 2004 to 75 million gallons last year. The final tally for 2006 should be between 150 and 225 million.
Biodiesel costs about $1 a gallon more to produce than conventional diesel, but federal tax breaks for fuel distributors help hide that cost from consumers.
Bagby said his plant will be up and running by the end of January. His equipment can refine soybean oil, cotton seed oil and animal fat. That gives him flexibility to use whatever's cheapest on the commodity markets. His first batches will be made from soybean oil because it's easiest to get the equipment calibrated.
After that? Soybean oil has a long way to drop before it's as affordable as chicken fat.
'You can see the difference in cost,' he said.
Copyright 2006 Associated Press
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ARISE German Funding Grant Approved
WATERLOO REGION - ARISE Technologies Corporation, is pleased to announce that it has been notified that its application for government funding has been approved.
Further to ARISE media releases dated Aug. 15, Sept 5 and Nov. 16, Dec. 1
and Dec. 11, 2006, the Company's application to Sachsische Aufbaubank GmbH
(SAB) for government grants and tax incentives has been approved. The Company
expects to receive detailed documentation setting out terms of the grants and
incentives before the end of 2006 and expects to execute definitive agreements
relating to the grant program in early 2007. As typical with grant and
incentive programs like this, ARISE has several conditions to fulfill prior to
receiving the funds, including finalizing arrangements for additional debt and
equity financing. The Company expects to be able to meet all requirements of
the SAB's grant and incentive program.
Ian MacLellan, President and CEO of ARISE commented, "We are very pleased
with this good news. We can now start the detailed implementation for our
plans in Bischofswerda. I would like to thank everyone with the IIC, SAB,
Commerzbank, State of Saxony and the town of Bischofswerda for all the
assistance in getting the application approved. We are very excited about this
project."
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Canada sets biofuel targets, helps farmers invest
By Roberta Rampton
WINNIPEG, Manitoba - Canada set targets for inclusion of biofuels in the country's fuel mix on Wednesday December 20, 2006 and offered farmers some help to invest in new plants.
Government ministers, however, said bigger tax incentives for the fledgling industry would have to wait.
The minority Conservative government wants to regulate that 5 percent of gasoline sold in the country by 2010 contain biofuels such as ethanol made from corn or wheat, and that 2 percent of diesel sold by 2012 be biodiesel.
"What we're doing today ... before looking at things like incentives and subsidies, is to set the ground rules," Environment Minister Rona Ambrose said.
"Frankly, I turn it over to the opposition now: we need the passage of the Clean Air Act to move forward with our regulations, and looking forward to other market incentives," she said at a news conference in Saskatoon, Saskatchewan.
The government has a minority in Canada's Parliament, and would need opposition parties to vote in favor of legislation that would include the targets.
The regulations could take at least two years to develop, and the government plans consultations and studies through 2007.
Agriculture Minister Chuck Strahl said other incentive programs to spur Canadian biofuel production would have to be part of a future budget, which would also require support from opposition parties to pass.
Renewable fuels are made from crops, plant material and animal fats, and reduce greenhouse gas emissions from vehicles when added to gasoline and diesel fuels.
Canada would require 2.1 billion liters of renewable fuels and 600 million liters of biodiesel to meet the targets.
Currently, Canada produces only about 400 million liters of ethanol and 100 million liters of biodiesel, said Bruce McEwen, chief of Environment Canada's fuel section.
"The regulations would not require Canadian content," McEwen told reporters.
Strahl announced C$200 million ($174 million) to encourage farmers to invest in new plants, and C$145 million on research and development in the sector.
The government will help farmers with up to 25 percent of project costs, or a maximum of C$25 million per project.
Canadian biofuel producers have long said they need tax incentives to compete with the booming U.S. biofuel sector.
Canada will be the first country to regulate the use of biodiesel, Ambrose said.
The canola industry wants to supply the domestic biodiesel industry, but needs more help, the president of the Canola Council of Canada said.
"Without government investments that put Canada on par with the U.S., there is no biodiesel industry in Canada," said Barb Isman, president of the Canola Council of Canada.
Canada is the world's largest producer and exporter of canola, a rapeseed variant that traditionally has been used to make cooking oil.
In 2006, Canada exported more than 100,000 tonnes of canola oil to the European Union for use in biodiesel, as well as several hundred thousand tonnes of canola seed to crushers in Dubai, Turkey and Pakistan for use in the EU biodiesel industry.
© Reuters 2006
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Record ethanol production in Iowa predicted for 2006
The state will produce a record 1.5 billion gallons of ethanol in 2006, the Iowa Renewable Fuels Association said Wednesday.
Iowa has more ethanol plants than any other state, the association said.
The trade group said Iowa ethanol plants will turn out 36 percent more corn-based fuel than last year, when 1.1 billion gallons was made.
In producing the record amount of ethanol, Iowa’s ethanol plants processed over 550 million bushels of corn, or about 25 percent of the state’s 2.16 billion bushel corn harvest from 2005.
“There was record demand for ethanol from coast to coast this year and Iowa stepped up to fill the need,” said Monte Shaw, IRFA Executive Director. “In fact, Iowa ethanol refineries will produce just over 30 percent of the entire 2006 U.S. ethanol production.”
In December, U.S. BioEnergy’s ethanol refinery in Albert City began production, bringing the total number of ethanol plants in the state to 26. The annual production capacity is 1.7 billion gallons.
Iowa has 16 new ethanol plants and five major expansions under construction. They will add 1.6 billion gallons to Iowa’s annual production capacity. IRFA estimates that a dozen new projects could begin in 2007 adding yet another 1.4 billion gallons of capacity.
Copyright © 2006, The Des Moines Register
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Natural gas sales for October 2006 increase '05 period to period by 22%
With colder than normal temperatures in all provinces, natural gas sales showed large increases in all sectors in October. Natural gas sales totalled 5 743 million cubic metres, up 22.7% from October 2005.
| Natural gas sales |
| |
October 2006p |
October 2005 |
October 2005 to October 2006 |
| |
thousands of cubic metres |
% change |
| Total sales |
5 742 923 |
4 681 666 |
22.7 |
| Residential |
1 095 657 |
903 700 |
21.2 |
| Commercial |
882 762 |
688 147 |
28.3 |
| Industrial and direct |
3 764 504 |
3 089 819 |
21.8 |
| |
Year-to-date |
| |
2006p |
2005 |
2005 to 2006 |
| |
thousands of cubic metres |
% change |
| Total sales |
54 536 659 |
55 850 564 |
-2.4 |
| Residential |
12 277 606 |
12 923 875 |
-5.0 |
| Commercial |
9 170 314 |
9 542 399 |
-3.9 |
| Industrial and direct |
33 088 739 |
33 384 290 |
-0.9 |
|
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Biodiesel to be Tested in Long-term Canadian Demonstration Pilot
CALGARY - A group of diverse stakeholders, with an interest in gathering comprehensive data about the quality requirements of biodiesel blends used in Canada, are announcing their intention to embark on a two-phase biodiesel pilot project in anticipation of a federal renewable fuels strategy.
Applications for funding have been made by the members of the Alberta
Biodiesel Demonstration Project steering committee who all have a role to play
in the future development of renewable fuels. The demonstration pilot is a
joint undertaking of the Canadian Renewable Fuels Association and the Canadian
Petroleum Products Institute.
"All participants are supporting the initiative to provide certainty
regarding key quality aspects of biodiesel use in Canada," says John Rilett,
Director, Climate Change Central.
Biodiesel is a renewable fuel derived from agricultural oil seed crops
like canola and soy. It can also be produced from animal fats and recycled
greases.
Barb Isman, President, Canola Council of Canada, supports the pilot. "We
need this new industry, which represents several million tonnes of oils and
fats demand, to be sustainable over the long-term. This pilot project is
critical in starting off on the right foot with the end-users of biodiesel in
Canada."
The project will address the primary fuel quality areas of interest
related to the adoption of biodiesel. This includes extreme cold weather
operations and the introduction of ultra low sulphur diesel. Designed with a
two-phased approach, the project will involve laboratory testing followed by
on-road long-haul fleet use, which will include use of 2007 engines running on
Canadian General Standards Board 3.520 specification biodiesel blends. The
field trial is confined to Alberta long-haul fleets as the Alberta climate
will pose some of the most extreme challenges to biodiesel use. The biodiesel
demonstration project is expected to get underway in early 2007, with project
completion in 2008, contingent upon confirmation of financial support.
"Participation in this project will provide Shell the ability to be at
the forefront of new test methods and specifications," says David Aldous,
Senior Vice President, Oil Products, Shell Canada Limited. "Biofuels have a
place in Canada's long-term fuel supply, so we must ensure we maximize the
environmental benefits and continue to supply Canadians with the reliable,
quality fuels they expect."
"The Canadian Trucking Alliance looks forward to the commencement of the
study as it will hopefully provide clarity to some of our concerns regarding
the proposed introduction of a mandatory national biodiesel blend," says
Stephen Laskowski, Canadian Trucking Alliance. "This includes cold weather
performance of biodiesel."
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Mergers create biofuel majors, tackle price risks
By Neil Chatterjee
SINGAPORE - Mergers in the booming palm oil sector are creating the biofuel industry's own 'Big Oil' companies, but vertical integration and economies of scale may not be enough to make exports profitable or to replace crude.
Palm oil producers in southeast Asia have high hopes of tapping an emerging biodiesel market in Asia, Europe and the United States, as countries legislate to use crop-based fuels to replace costly oil, improve energy security, and cut emissions.
Shares in palm oil refiner Wilmar International (WLIL.SI) soared on Friday after it announced plans to buy Malaysian plantation assets in a $4.3 billion deal, less than a month after three Malaysian plantation firms announced an $8.6 billion merger to create the world's biggest palm oil group.
The creation of vertically integrated firms who can grow crops, process palm oil and ultimately churn out biodiesel mirrors the structure of oilfield-to-automobile global oil firms.
This will help the emerging biofuel giants limit the risk of volatile feedstock costs and lock in revenues with bigger, longer-term sales contracts, but ultimately neither will guarantee profit in the increasingly overcrowded sector.
"Biodiesel is not viable without subsidies, despite having lower cost structure and scale," said CLSA in a report on Wilmar.
"Only companies with a large enough scale can survive in this space. The costs will be lower with the elimination of some freight and shipping expenses through the integration of their estates and production plants."
Producers of crops such as rapeseed, soy and palm oil have seen soaring prices. A new outlet for supplies looked profitable as oil prices climbed over $70 a barrel this year.
But most refining of biofuels has been done by small independent firms that risk being caught between rising feedstock costs and an oil price downturn.
"Consolidating assets would not make much difference in reducing costs, unless they can increase supply -- the bottleneck is still on available landmass that can produce feedstocks," said Ibnu Bramono, analyst at consultancy FACTS Global Energy.
A refiner such as Wilmar is dependent on both product prices and feedstocks costs -- the latter can make up 80 percent of the biofuel cost. And palm oil prices have surged 30 percent this year to be worth the equivalent of $80 a barrel now, while Asian diesel is only up 6 percent at $70 a barrel.
"Wilmar's acquisition would allow it to buy crude palm oil prices probably at a friendly family price discount, thus allowing it to sell biodiesel at a better profit," said a biofuel broker, one of an emerging breed in Singapore, where Joint Asian Derivatives Exchange plans to start a palm oil futures contract.
Number-one refiner
Wilmar's move will make it the largest palm oil refiner, with about a quarter of global palm oil output, said Credit Suisse.
Analysts say more mergers are likely between those owning crop fields and those looking to supply consumers with motor fuel.
"It's not a good idea to start a stand-alone biofuel plant, which is kind of risky - it's a good idea for them to be vertically integrated and to secure upstream assets," said Bramono.
Despite the price risks, those markets may be guaranteed through government legislation or subsidies. Indonesia aims for 10 percent biofuel use while the European Union has a target of 5.75 percent by the end of the decade. But countries may drop targets if biofuels prove more costly than fossil fuels.
And their aim is for domestic supplies: top Asian consumer China is planning a huge expansion in use of vegetable oils to make biodiesel, while India is looking at hardy jatropha and the Philippines aims to export coconut biodiesel.
So exporters will have to look to fill niches or take advantage of government requirements that exceed domestic supplies, such as in South Korea and Japan, which are already importing small volumes of feedstocks to meet biodiesel targets.
The larger funds available to merged Asian firms may help them compete with traditional energy firms such as Royal Dutch Shell (RDSa.L), in developing so-called second generation biofuels from plant wastes, which are expected to be cheaper than growing crops for fuel.
"Big companies will certainly have more room for research and development, to accelerate technological development toward cellulosic fuels," said Yonghun Jung of the Asia Pacific Energy Research Center. "It's a good sign for oil consumers because it shows determination."
(Additional reporting by Jonathan Nonis)
© Reuters 2006
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China to limit use of grains for biofuels amid renewed worries over supply
SHANGHAI - China will restrict the use of corn and other edible grains for producing biofuel, state media reports said Monday, noting concerns over surging prices despite expectations for yet another bumper harvest.
"We have a principle with regard to biofuel: it should neither impact the people's grain consumption, nor should it compete with grain crops for cultivated land," the state-run newspaper People's Daily quoted Yang Jian, director of the development planning department under the Agriculture Ministry, as saying.
It said Yang emphasized that his ministry opposes using edible grains as raw material for biofuel.
He noted that the government was, however, encouraging farmers to grow sorghum, cassava and other non-grain crops on marginal land to supply biofuel processors.
Agriculture Ministry officials had no immediate comment on the reports.
Competition between food and fuel processors for grains needed to make biofuels is not limited to China. Worldwide, surging demand for grain crops has been a godsend for many farmers, but is pinching consumers as higher prices hit the industrial food chain, particularly the livestock sector.
China's economic planners have made increasing production of ethanol, a key biofuel, a goal in the country's five-year economic plan, to help curb pollution and reduce reliance on fossil fuels.
But protecting arable land and ensuring adequate food supplies is the top priority, the reports said.
"In China, the first thing is to provide food for its 1.3 billion people, and after that, we will support biofuel production," the People's Daily quoted Wang Xiaobing, an official at the Agriculture Ministry's crops cultivation department, as saying.
China has begun auctioning some of its wheat reserves to help control a surge in prices in local markets, despite reports that the grain crop is expected to hit a record 490 million tons this year, the third straight year of bumper harvests.
Wheat prices are at their highest level in a decade, due to severe droughts in the U.S. and Australia, and corn prices have also surged by up to 20 percent in local markets.
Prices for edible oils, meat and other products have also jumped, drawing complaints from consumers.
China can supply nearly 100 percent of grain demand locally, and despite the country's relatively scarce land and water government policy supports maintaining basic self-sufficiency for the sake of national security.
Copyright © 2006 the International Herald Tribune
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Biofuels: a new dawn or business as usual?
By Julian Bell
After more than a decade of falling prices, declining margins and shrinking investment, there is a growing optimism in agriculture that we are entering a new era of rising demand and better prices, driven by biofuels.
Are these predictions likely to be true? Or will we find that we are entering just another commodity market where price pressures will soon return?
Scottish farmers have benefited from a tighter world market in grain and oilseeds supported by biofuel demand in other countries. In the US, almost 20 per cent of the maize crop is processed for bio-ethanol, resulting this season in a sharp fall in stocks and maize prices at a ten-year high.
Without the rapid expansion of the US bioethanol industry it is unlikely that Scottish grain prices would have returned to over £100 a tonne this season.
In the European Union, bio-diesel demand accounts for more than 50 per cent of the rapeseed crop, which has pushed it to a record premium over other oilseeds, with a knock-on benefit for prices in Scotland. Based on current policies, global demand for bio-fuels (and the crops required to produce them) is set for a period of sustained expansion.
In the UK, the introduction of the Renewable Transport Fuels Obligation (RTFO) is expected to result in a 20-fold increase in UK bio-fuels demand by 2010.
This is good news for agriculture. But how important is it that the biofuel processing industry is based in Scotland? The country is already deficit in wheat, so a direct investment in bio-ethanol production is unlikely.
While Scottish wheat is unlikely to find its way to any English plants that are built, Scottish grain prices might still benefit. By reducing the UK's exportable surplus of wheat, such plants could result in a £3 to £8 per tonne relative price gain in Scottish ex-farm wheat prices.
Scotland, however, does have a surplus of around 130,000 tonnes of rapeseed and if plans for a 250,000 tonne rapeseed crushing plant at Rosyth go ahead, there could be potential price gains of around £5 to £8 per tonne for local producers due to savings in transport cost.
However, the small scale of such a plant could make it vulnerable to international competition, particularly from imports of processed vegetable oils.
The extent to which Scottish rapeseed values benefit in practice will depend on local supply and demand along with the scale and feedstock preference of any new crushing plants.
While price gains of £5 to £8 per tonne would be welcomed by Scottish arable farmers, they are not large enough on their own to achieve more than a modest improvement to farm profitability. With modulation expected to take an increasing share of the single farm payment, higher prices will be needed just to stand still and, therefore, the development of a domestic biofuels industry will not on its own guarantee the future of arable farming.
In the short to medium term, Scottish agriculture may continue to benefit from higher global commodity prices supported by biofuels. However, as with other any other commodity, producers will be under pressure to drive down costs.
Maximising yield is essential to achieve lower costs and with German oilseed rape yields regularly 10-15 per cent higher than in Scotland, significant room for improvement remains.
Longer term, although strong growth in global biofuel demand is expected, this is also likely to elicit a supply response from currently under-utilised producing regions of the world.
A stronger global market in the short term might also make it more politically acceptable to dismantle the EU system of market support, including cereals intervention which is up for discussion in 2008.
The UK government has made it clear under the RTFO proposals that it is looking to favour those biofuels that can demonstrate the best carbon savings. It is not, however, a given that UK-produced biofuels will have an inherently lower carbon footprint than imported products.
The challenge for Scottish producers will be to improve the carbon balance of their crops. Considerable scope remains for research in this area.
If Scottish agriculture does not have the scale to compete directly in biofuel production, should we still view it as a missed opportunity?
By diverting land out of food production in other countries, biofuels could open up new markets for Scotland's established value-added brands, such as Scotch whisky and Scotch beef.
This growth in demand could help producers secure longer-term contracts at better prices for traditional crops such as malting barley - a litre of bio-ethanol is worth a lot more in a bottle of whisky than it is in the tank of a car.
Whether or not large-scale biofuels production develops in Scotland, our industry will still need to understand the implications of developments on the global market and react accordingly. Developing innovative ways of reducing the carbon footprint not just of biofuels but also of food in general could offer significant challenges and opportunities in this new era.
©2006 Scotsman.com
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Algae provides fuel for ‘green' research
By Christine Lambrakis
As anyone with a pool knows, algae can be quite pesky plants. ASU researchers Qiang Hu and Milton Sommerfeld are shedding a whole new light on the plant in the Laboratory for Algae Research & Biotechnology (LARB) at the Polytechnic campus.
Even though algae can be a nuisance, these plants have multiple benefits to the environment that are sustainable, renewable and relatively inexpensive to produce, according to Hu and Sommerfeld.
The duo has been able to take their combined 40-plus years of research with algae and apply it to use in air and water remediation, alternative fuels and animal feed. During that time, they have identified 100 to 200 algal species of the more than 1,500 they have studied that are hardy and potent for various uses from producing algal oils for biofuels to removing carbon dioxide from power plant emissions and nutrients from various wastewaters.
What makes algae so appealing for so many applications?
“They reproduce quickly, and unlike the cells found in a leaf, they don't have unnecessary baggage. In other words, no roots and stems and they do not go dormant,” says Sommerfeld. “Algae have natural properties that allow them to grow quickly, with some species able to double two to three times in a day. That's a good thing when you want to produce large quantities of algae.”
To grow mass quantities of algae, the researchers developed industrial photobioreactor technology that allows for an optimal growth environment for maximum production, according to Hu. “It's basically an engineered device to enhance the natural process,” adds Sommerfeld.
What the plant and its cells are naturally producing makes them a valuable product, according to Hu. “For example, we have been able to identify one species of algae that synthesizes and accumulates large quantities of oils or lipids that could be a perfect alternative fuel for airplanes/jets because it releases far less air pollutants than petroleum-based fuels into the atmosphere,” says Hu.
The byproduct from harvesting the oil makes a healthy animal feed product or organic fertilizer as well. Through an anaerobic digestion or fermentation process, the byproduct can also be converted to methane or ethanol – two other kinds of biofuels. So there is little waste associated with algal feedstock.
Their research has also been successful at removing waste nutrients from agricultural wastewaters through an algal filtration system, allowing for reuse of treated water. These research and development projects have been supported by the local industrial community, including Salt River Project and Arizona Public Service, along with state and federal grants.
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Cultivating bio energy as fossil fuels fade
By Jean-Michel Severino
From climate change to volatile oil prices, all signs point to a looming global energy crisis.
Confronting the growing challenge means that humanity can no longer afford to ignore the inexhaustible resource found in the organic material that the sun provides each day through photosynthesis. Solar energy enables plants to absorb carbon gas and thereby produce not only oxygen, but also matter that the animal kingdom uses for food - and that our machines can use for energy.
Since the Neolithic (or late Stone Age) period, humans have been cultivating this "biomass" in order to feed itself. Yet, even in today's world, its energy potential is ignored. Beginning with the industrial revolution, humans sought energy from coal, and later from oil and natural gas, but this leads to the exhaustion of non-renewable resources. Existing alternatives for diversifying energy production are limited. Nuclear energy presents a number of disadvantages, owing to concerns about safety and disposal of radioactive waste. Hydroelectric power is already widely used, while wind and solar energy are structurally sporadic and disparately available.
Biomass, on the other hand, has several advantages. Supplies of it are large and available throughout the world. Moreover, the technology necessary to convert it into energy - including high-yield burning, gas conversion, and liquefaction into synthetic fuel - has long been mastered. Widely used during World War II, this technology has since advanced considerably. Biomass energy, however, is the victim of unfair competition from fossil fuels. Oil's price reflects its extraction, refining and distribution costs, but not that of creating the raw material. Millions of years and 200 tons of plant matter are necessary to produce one litre of oil, whereas just 15 kilograms of plant matter are required to make one litre of synthetic fuel.
After the oil glut, with oil below $20 a barrel, interest in developing energy from biomass ebbed, attractive only to "green" militants and those interested in fundamental science. Yet the potential is immense. The planet's biomass - forests, pastureland, savannahs and crops - make up productive capital that generates a 10 per cent "return" every year. Like a battery that runs out and is then recharged by the sun, this supply is renewable indefinitely, as long as it is managed properly. The annual return on this capital is currently estimated at 60 billion tons, yet only two billion tons is consumed for food purposes and 10 billion tons for energy.
Increasing the responsible use of this energy source would contribute to the fight against climate change by reducing carbon in the atmosphere and diminishing the amount of fossil fuel required to produce energy. Moreover, its abundance in southern countries promises to facilitate their economic development. Considered the "energy of the poor" until today, biomass could become a source of wealth if it is grown and harnessed with the support of the international community. Thus, "energy crops" could be developed to produce biofuel. Residue from forest, agricultural and agro-industrial activities could be collected and converted. For example, the six million tons of waste produced annually by Niger could theoretically be used to meet that country's entire energy needs.
However, in many places, energy cropping would certainly compete with food crops. Long-term estimates project that over a 50-year time horizon, most of the planet's arable land would have to be used to feed the world and for forest conservation. Thus, areas dedicated to energy production, particularly biofuel, may not reach the level that societies would wish. But, while such competition would reveal new global scarcities, it would also bring higher prices, thereby encouraging producers to increase yields and productivity.
Thus, while cultivating energy would create new constraints, it would also open new possibilities for many economic actors. The farmer and forest worker could become more involved in the market, the mine engineer could begin to take an interest in crop fields, the banker in plant shares. But, to prepare for a scaling up of energy cropping, new policies must be implemented, both in northern and southern countries, in terms of agriculture, land and water management, protection of biodiversity, fuel taxes and information and awareness-raising.
The ancient Egyptians and the Incas practiced a religion of the sun, believing it to be at the beginning of all life on earth. Science has since proven this to be the case. Nowadays, when it has become more important than ever that we embrace renewable resources, we should use the sun to cultivate energy, just as our ancestors used it to cultivate their food.
Copyright Project Syndicate
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Kitchener Waterloo Area Businesses Promote Energy Conservation to Improve Efficiency, Cost Control and Competitiveness
TORONTO - The Association of Major Power Consumers in Ontario (AMPCO) will be hosted a meeting in Kitchener on December 12 that will gathered business leaders and energy management experts together to discuss how energy conservation might improve the efficiency and competitiveness of local industry.
"AMPCO is working with a number of Ontario's largest energy consumers to
explore the potential of energy conservation as a means to cut costs, improve
the competitiveness of vital industries and reduce Ontario's demand for
electricity," said Adam White, President of AMPCO.
Ontario's manufacturing industries, such as forestry, steel, cement,
chemical, automotive, petroleum and mining, employ more than 1 million people
in Ontario and electricity represents one of their most significant costs.
"If energy conservation can improve the bottom line of these businesses,
it may help to create new opportunities for growth, investment and job
creation in the Kitchener Waterloo area," said White.
This meeting will contribute to regional consultations that AMPCO is
undertaking through the sponsorship of Ontario Power Authority's Conservation
Fund. These consultations will inform an Energy Conservation Action Plan that
AMPCO is preparing for submission to the Ontario Government in early 2007.
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Anaerobic digestion is now economically viable in Europe and can provide much needed security of energy supply
Anaerobic Digestion is both a waste treatment technology and a highly sustainable energy technology. Recent rises in energy costs, coupled with EU member state incentives, and waste management policy, now mean that economic viability has been attained. This article explains how this technology can also provide a politically secure energy supply, and argues that there should be more fiscal assistance to promote Anaerobic Digestion.
London, United Kingdom - Garden and food waste constitutes approximately 37 percent of the UK's municipal waste. Similar proportions are seen throughout the developed world, and may even be higher in some nations.
There is potential for this putrescible fraction, together with other wastes, such as domestic sewage and a wide range of agricultural and farm wastes, to be treated by Anaerobic Digestion (AD) plants using what is in effect wasted energy, to generate useable energy in a variety of forms, and to produce hygienically safe end products from the digestate (solid and liquid) process products. These products in turn will reduce demand for chemical industry/non-renewable resource derived fertiliser, and improve soil structure.
So this large energy source is available, and the AD process itself provides win, and win again, benefits not only for the sustainable energy, but also from bio-safety (pasteurization) benefits, to the ability to produce useful products from the residues from the process.
At a recent Methane to Markets Workshop (November 2006) in the UK, organised by the UK government Department DEFRA, statements were made by a number of speakers in regard to the economic viability of Anaerobic Digestion. The presentations were positive for AD profits in Europe in the context of current energy prices.
Differing prices were quoted for the break-even electricity price per kilowatt hour fed into the local grid by AD Plants. Nevertheless, a consensus appears to exist that at unit payments at 16 to 20 US Cents per kilowatt hour (or 8 to 10 UK pence) Anaerobic Digestion should be economically viable, even without achieving significant income from the end products of the process.
This means that in most of Europe, where renewable source generated "green energy" supplies are currently paid for by the electricity supply utility companies at 10% to 20% above these prices, there is profit to be made now. Also, profitability is likely to get better in the future as governments introduce more financial benefits to encourage renewable energy production. Premium prices also will be available for biofuels for vehicle transport which can be produced from AD methane.
By producing methane in a large number of these plants and burning the methane, or further processing it into fuels to run vehicles and moveable plant, extensive use of AD would provide a large contribution to reducing fossil fuel use, and averting the future impacts of climate change.
Anaerobic Digestion Plants are depending on the fuels/feedstocks used, at worst carbon neutral and almost always substantially carbon negative. That means that by installing AD systems nations can begin to put right the negative effects of greenhouse gas emissions to our atmosphere.
Unlike wind turbine energy AD energy it is not weather dependent. The methane produced can even be stored in gasometers, and can be pumped, after some further purification, into gas distribution systems.
Sweden is the nation which intends to lead the world in renewable fuels. They like some other EU states have a number of large scale Anaerobic Digestion Plants in operation already, and Sweden has a target to cease the importation of fossil derived fuels entirely within 10 years. Anaerobic Digestion features prominently in their plans to do this. The Swedish government clearly recognises the benefits of encouraging this level of sustainability both nationally and globally.
It should also not be forgotten that to any nation, security of energy supply is also extremely important. If Sweden achieves its aim and in 10 years is no longer reliant on fossil fuels, as a nation without its own fossil fuel resources, this will greatly assist their economy. However, it also gains hugely in the security of its energy supply, and as oil, gas and fossil fuels generally become scarcer the need for action to avoid power cuts due to remote energy supply shortages is bound to come more to the fore.
Germany has a successful Anaerobic Digestion industry with the most proven technology at the large scale, and like Sweden and some other Nordic Countries, also uses energy crops to augment the waste materials used as the feedstock. The Austrians and the Swiss need also to be mentioned here as they are comparable with German AD technology skills and investment in most aspects. The Danish are also AD implementers.
The United Kingdom has not invested significantly in AD in any area until recently; however, a few projects are now in operation with others to follow.
The United Kingdom has in the past possessed its own gas and oil resources, however, supplies from these are rapidly diminishing, and as of 2005 it became a net importer of natural gas. This was for the first time since North Sea gas was developed 20 to 30 years ago. The UK will now become heavily reliant on energy imports. Natural gas supplies will come in the main via just two sources; Russia and North Africa. The UK in common with other EU states, needs to plan carefully about its energy security.
Unfortunately, Anaerobic Digestion is not yet economically viable in the US by the yardstick we have quoted. US energy prices remain much lower than in Europe due to low energy taxation and available national resources which provide for a depressed energy price when compared with international markets.
The US, with its cheap energy is not unique. Other nations have their own supplies of fossil fuels and similarly their electricity prices are lower than in Europe. Energy prices in these nations will not yet support the cost of Anaerobic Digestion and examples are Argentina, and South Africa.
Nevertheless, it is justifiable to say that in many EU states in general, Anaerobic Digestion is now economically viable and it is a win win technology. It can provide sustainability in energy, reduce greenhouse gas emissions when fuelled by wastes, provide benefits to agriculture, and provide politically secure energy supplies.
All governments, except perhaps for the Swedes and the Germans where support is already high, should be giving far more financial and market support than they are at present to Anaerobic Digestion plant development and operation.
© Copyright 1997-2005, PRWeb
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Hydro One Appoints Laura Formusa Acting President and Chief Executive Officer
TORONTO - The Hydro One Board of Directors December 11, 2006 appointed Laura Formusa Acting President and Chief Executive Officer of Hydro One Inc. Ms. Formusa most recently held the position of General Counsel and Secretary for Hydro One Inc, having been appointed in 2003. She joined Ontario Hydro in 1980, following her call to the Bar of Ontario. Ms. Formusa has been a member of the Executive Committee and Secretary to the Board of Directors since 2003. She held various senior positions until being appointed General Counsel of Hydro One Networks in 2000.
Ms. Formusa earned her Bachelor of Laws degree at Osgoode Hall Law School
and was admitted to the Law Society of Upper Canada in 1980.
The Hydro One Board has also begun a search for a permanent President and
CEO.
Hydro One Statement
On December 8 The Board of Directors of Hydro One issued the
following statemen.
Toronto - The Board of Hydro One has unanimously resolved our full and ongoing
confidence in Tom Parkinson to continue as President and CEO of Hydro One.
However, in consultation with Tom and in light of the circumstances, we have
decided, with deep regret, to accept Tom's resignation effective December 8,
2006.
The Board unanimously recognizes and commends the company's substantial
achievements of the past four years, attributable to Tom's exemplary
leadership. Tom has demonstrated his passion for Hydro One through his
unwavering commitment to safety, customer service, productivity and the
reliability of the electricity system throughout Ontario. Under Tom's
leadership the company has achieved strong and sustainable financial
performance, roughly doubling the company's profitability in the past four
years, and meeting all financial targets. During the same time period, Hydro
One's credit rating was enhanced several times; it stands today at A(high)
with Dominion Bond Rating Service Inc. Tom has also overseen a succession of
significant infrastructure projects and brought each one in on time and on
budget.
Tom leaves with the admiration and best wishes of our Board and
management.
Rita Burak
Chair,
Hydro One
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| Hydro One responds to Auditor General's Report
TORONTO - Hydro One responded today to the Auditor General of Ontario's report released highlighting findings of a Value-For-Money audit of the company.
"It is important to note that the Auditor General's value-for-money audit found that Hydro One had the appropriate policies in place to help ensure that goods and services were acquired with due regard for value for money," said Hydro One Chair Rita Burak.
Hydro One accepts the auditor's recommendations and will continue to improve its internal procedures. As the report noted, many of the issues identified in the audit had already been identified by Hydro One's internal audit staff and actions had already been taken to improve internal controls and procedures.
Following the release of the Auditor General's report today, Hydro One Chair, Rita Burak and Energy Minister Dwight Duncan met to discuss Hydro One's response to the audit findings. The Chair provided the Minister with assurances that the issues raised in the report are being dealt with promptly and appropriately. The report's findings have also been discussed both by Hydro One's Audit and Finance Committee and the full Hydro One Board of Directors.
Hydro One, with over $4 billion in revenue and $12 billion in assets, is a public debt issuer and as such, complies with Ontario Securities Commission regulations. Hydro One's business is reviewed and audited by several entities on an ongoing basis, including external auditors Ernst and Young.
"We are proud of our accomplishments and our focus on ensuring that the company receives the best value on all of our expenditures. We appreciate the feedback from the Auditor General and will take prompt and appropriate action," concluded Burak.
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TORONTO - Hydro One confirms that power has now been restored to more than 71,000 of its customers and expects to have power returned to most of the remaining 19,000 customers, predominantly in Eastern Ontario, today.
Two storm fronts that brought a combination of snow, freezing rain, high and gusting winds causing significant number of downed power lines and poles, saw more than 90,000 Hydro One customers lose power at the storm's peak. Approximately 750 of Hydro One's highly mobile field staff as well as crews on loan from other utilities continue to zero-in on the most affected areas. As these crews complete work in one part of the province, they will then be redeployed to the next area, until necessary repair work is complete. While the company expects this focussed effort will see the majority of its remaining affected customers returned to power today, it is likely that repair to more remote and water access properties will be completed in the early week.
"We continue to marshal our resources towards the hardest hit areas and have made great gains in our restoration efforts," said Myles D'Arcey, Senior Vice President, Customer Operations, Hydro One. "We sincerely appreciate the patience and understanding of our customers over this challenging weekend and will continue to do all possible to have their power restored as quickly and as safely as possible."
Ontario Leads in Endorsing North American Electricity Reliability Standards
TORONTO - Ontario's existing reliability and compliance framework for the electricity sector has been strengthened with the signing of a joint memorandum of understanding (MOU) between the Independent Electricity System Operator (IESO), the North American Electric Reliability Corporation (NERC), and the Northeast Power Coordinating Council (NPCC). The signing of the joint MOU follows the recognition by the provincial government of NERC's role as the North American Electric Reliability Organization (ERO).
"The Ontario Ministry of Energy confirms that NERC is recognized as the
international electric reliability standards authority in Ontario," said
Minister of Energy Dwight Duncan. "Ontario looks forward to continuing
collaboration with NERC on international electric reliability," added Duncan.
Mandatory and enforceable standards, in place in Ontario for a number of
years, was a key recommendation resulting from the investigation into the 2003
blackout. Through its authority as the ERO, NERC has been charged with
developing and enforcing continent-wide reliability standards for the
high-voltage power system in North America.
"Ontario has been widely recognized as a leader in this regard having
operated with mandatory and enforceable reliability standards since 2002
through the IESO's reliability and compliance program," said Paul Murphy, IESO
President and CEO. "The move towards continent-wide reliability standards will
contribute to improving the reliability of the North American bulk power
system," added Murphy.
This joint MOU documents the obligations of the parties respecting the
Ontario reliability framework and complements the MOU made between the Ontario
Energy Board (OEB) and NERC. As Ontario's energy regulator, the OEB will
oversee NERC's activities, and the IESO will remain accountable for Ontario's
compliance with NERC and NPCC reliability standards and criteria.
The joint MOU can be viewed at:
http://www.ieso.ca/imoweb/pubs/ircp/ero/ero-20061128-MOU_IESO_NERC_NPCC_CBRE_N
PCC-INC.pdf.
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