Indonesia seeks to cut fuel subsidies via biofuels

January 15, 2008 (Mongabay) – Biofuels will make up 10 percent of Indonesia’s fuel transport consumption by 2010 under a plan announced Monday by a senior government official, according to Reuters. The initiative could ease the economic impact of fuel subsidies – currently some of the highest in the world – in Indonesia, while boosting demand for locally produced bioenergy crops including palm oil, jatropha, sugar cane and cassava.”We can’t increase prices of subsidized fuel as it will hurt consumers. But we may be able to cut consumption and replace it with biofuel,” Reuters quoted Evita Legowo, secretary at the National Biofuel Development Team, as saying at the Reuters Global Agriculture and Biofuel Summit.

Presently Indonesia spends billions of dollars subsidizing and importing oil.

Advertisement

Malaysia mulls biodiesel mandate

January 16, 2008 (Emerging Energy News) – Malaysia, one of the world’s largest palm oil exporters, looks set to follow the lead of neighbouring countries in mandating the use of biodiesel blend in fossil fuel transport. “We are looking at 2008 in terms of slowly implementing a 2-per cent blend at least,” Sabri Ahmad, chairman of the Malaysian Palm Oil Board, told the Reuters Global Agriculture and Biofuel Summit from Kuala Lumpur. “We must implement because neighbouring countries like Thailand and Indonesia have made it mandatory.”

Thailand plans to launch a B2 mandate, requiring a two per cent biodiesel content in the nation’s diesel consumption from Feb. 2.

Finland’s Neste Oil says Singapore biodiesel plant to be operational in 2010

January 16, 2008 (Thomson Financial) – Finnish oil refiner Neste Oil said Tuesday that its biodiesel plant in Singapore, its largest, will be operational 2010 and initially cater to Europe’s growing biofuel requirement.The company’s investment of 550 million euros to build the plant, which will have an annual capacity of 800,000 tons, is in line with its strategy to become the world’s leading producer of diesel from renewable feedstock.

It is anticipating that demand will grow rapidly in developed economies.

Demand for biodiesel in Europe is currently around 6-8 million tons annually and is expected to grow to 13-15 million tons by 2010.

50m gallon biodiesel facility completed in India

December 19, 2007 (Biofuel Review) – AE Biofuels (OTCBB: AEBF) has completed the construction of a 50 million gallons per year biodiesel facility located in Kakinada, India. The company has also announced that it has commenced the construction of a glycerin refinery adjacent to the biodiesel facility. The additional refining processes will, says the company, significantly increase the value of the glycerin by-product to be sold into Indian markets.The plant is connected to the Port of Kakinada, on the east coast of India, by pipeline, and has Export Oriented Unit status, thus benefiting from tax-free imports and other tax benefits. The plant is 74% owned by AE Biofuels and is 26% owned by one of the world’s largest palm oil suppliers, and a Singapore palm trading company.

Korean Biodiesel Market Crowded

December 17, 2007 (The Korea Times) – Use of biodiesel remains quite low at home. But the domestic biodiesel market seems to have reached saturation point already as demand fails to follow supply despite government efforts to increase the production and use of the alternative energy. South Korea has an annual production capacity of some 800,000 tons at the moment. But the demand is expected to remain at less than one-fourth of the supply, according to the Ministry of Commerce, Industry and Energy Monday.

All aboard for ‘bioloco’ ride – New Zealand testing use of biodiesel in its trains

In a first step toward an eco-motivated locomotive fleet, Toll New Zealand is testing the use of biodiesel in its trains.

The six-month trial will use a B5 fuel mix of 5 per cent biodiesel and 95 per cent regular diesel in two trains – one freight and one passenger – dubbed “bioloco” engines.

 

Toll rail group general manager Joe Garbellini said the trial was aimed at getting a feel for how biodiesel would work for its fleet of 165 locomotive engines.

With an annual fuel consumption of 50 million litres, the attempt to reduce Toll’s carbon footprint could lead to more than 2.5 million litres of biodiesel being used in the company’s locomotives, Mr Garbellini said.

The trial had followed a locomotive driver fuel saver initiative recently introduced in partnership with Shell New Zealand.

Shell biofuels project manager David Robinson praised Toll’s role in the bioloco trial.

“Everybody wants to reduce their carbon footprint and it is so important that the bigger companies get on board.”

Gushan Environmental Sets IPO Terms

December 7, 2007 (AP) – Chinese biodiesel fuel producer Gushan Environmental Energy Ltd. said Friday it plans to raise about $171.6 million in an initial public offering of American Depositary Shares.  According to a filing with the Securities and Exchange Commission, Gushan is selling 15 million ADS, and a group of selling shareholders is offering 3 million ADS. Each ADS represents two ordinary shares.

Australian Jatropha Company Looks to Raise A$10m from IPO

November 14, 2007 (Biofuel Review) – A new Australian company, Jatoil Limited, formed to invest in the global market for biofuels, has announced an initial public offering to raise up to Aus$10 million ahead of its planned listing on the ASX on 12 December. According to the company it will supply rising international demand for biofuels by both growing and selling low-cost biodiesel feedstock overseas. The company’s main business will be the supply of Jatropha oil. It will, it says, develop its Jatropha feedstock supplies with local partners, initially in Asia, to supply the local Asian economies where the feedstock is grown and the European Union.

India’s Largest Cement Maker Outlines Plans for Biodiesel Production via Jatropha Plantations

November 13, 2007 (Business Standard) – With crude oil prices at historical highs coupled with rising costs of coal, domestic cement companies are looking at alternate sources of energy for their upcoming captive power plants (CCP).

Since cement manufacturing is a highly energy intensive process and dependence on captive power is fast rising, analysts believe such initiatives will help cap the increasing input costs.

ACC, the country’s largest cement maker, has outlined plans for biodiesel production through a drive for jatropha plantations. “We will plant 5 million jatropha saplings by 2009 in a phased manner, in and around our cement plants,” said Ramesh Kumar Suri, head, Alternate Fuel Resources (AFR) business of ACC.

Natural Fuel Shuts Australia’s Biggest Biodiesel Plant

November 12, 2007 (Platts) – Natural Fuel Australia Ltd. has shut the Darwin biodiesel plant because of poor production economics, just a year after startup and barely months after making its first exports of biodiesel to Asian and US customers, several well-placed industry sources said Tuesday.

The biodiesel plant, which at 120,000 mt/year (2,400 b/d) of biodiesel production is Australia’s biggest biodiesel refinery and one of the world’s largest, was unlikely to restart any time soon, sources said.

The plant was shut in September or October, sources said. The plant opened in November 2006 and hit its nameplate capacity in March. In August, it announced its first export of 7,700 mt of biodiesel to Asia and the US. Calls to top officials from Natural Fuel Australia’s parent companies — Sydney-listed Natural Fuel Ltd. and Babcock & Brown Environmental Investments Ltd. — were not immediately returned Tuesday.