Crude oil factors to support bio-fuel demand

G. Chandrashekhar

Mumbai, Oct. 8 A sudden surge in bio-fuel demand has transformed the agri-commodity landscape in the last couple of years. Against the backdrop of compelling factors such as continued strong demand for energy and fuel requirements, increasing oil prices and all-encompassing demand from the burgeoning economies of China and India for fuel and other commodities, bio-fuels are here to stay, according to a report prepared for the Singapore regional office of ASA International Marketing.

Several factors are seen supporting the movement towards bio-fuels including depleting oil reserves and rising oil prices, increasing demand to fuel economic growth as also environmental (green fuel) and geopolitical factors, the report argued.

Food vs fuel

Having hurt many countries, rising food prices (grains such as corn and wheat as also vegetable oils such as palm oil and soyabean oil) across the world have led to a food versus fuel global debate that needs to be addressed amicably. The heat of the debate is unlikely to diminish until second-generation bio-fuels are able to offer longer-term sustainable fuel options. Currently, bio-fuels have become the in-thing because of State support, while mass uptake can only come with the establishment of requisite infrastructure, the report noted. Major bio-fuels used at present are bio-ethanol (from corn, cane or wheat) used widely in the US and Brazil, and bio-diesel (from vegetable oil) used widely in Europe.

Noting that the ripple effect of global fuel demand has undoubtedly arrived in South East Asia, the report pointed out that the region was blessed with abundance of agricultural resources that are suitable for bio-fuel production — palm oil in Indonesia and Malaysia, sugarcane and cassava in Thailand, and coconut in The Philippines.

Region imports

Feedstock availability in South-East Asia would imply that the region will become one of the world's major bio-fuels producers in the future. The geographical demand-supply imbalance indicates that currently the world's bio-fuels producing countries — European Union and North America — will need to import bio-diesel from the region in future, the report asserted. Diversion of traditional food products for fuel can potentially hurt food security, especially in poor countries. Global food and major foodstuffs imports were estimated to be a little over $400 billion in 2006, of which developing countries accounted for $142 billion and low-income food-importing countries $72 billion. Approximately two-thirds of the imports were cereals and vegetable oil. With recent sharp increase in prices of corn, wheat and palm oil, there is considerable concern of aggravating food security. To what extent farmers in developing nations would respond to higher prices with higher production remains to be seen.

Ausra Receives $40 Million In Funding

Ausra Inc., the developer of utility-scale solar thermal power technology, has secured more than $40 million in funding from Silicon Valley venture capital firms Khosla Ventures and Kleiner, Perkins, Caufield & Byers (KPCB).

Ausra's power plants are designed to drive steam turbines with sunshine. Ausra's core technology, the Compact Linear Fresnel Reflector solar steam generation system, was originally conceived in the early 1990s by founder David Mills while at Sydney University. Mills later worked with Graham Morrison to develop the idea between 1995 and 2001.

"Solar thermal power is the main event in renewable energy, and Ausra has the deep expertise and a simple, yet effective, design to fully capitalize on the opportunity to deliver the majority of our future power needs," says Ray Lane, a partner in KPCB and an Ausra board member.

Ausra is headquartered in Davis, Calif.

IEA report: bioenergy can meet 20 to 50% of world's future energy demand

In a new publication the International Energy Agency's Bioenergy Executive Committee highlights the potential contribution of bioenergy to future world energy demand. It summarises the wide range of biomass resources available and potentially available, the conversion options, and end-use applications. Associated issues of market development, international bioenergy trade, and competition for biomass are also presented. Finally, the potential of bioenergy is compared with other energy supply options.


In the document titled 'Potential Contribution of Bioenergy to the World's Future Energy Demand', the analysts put the total energy potential for sustainably produced biomass at 1100 Exajoules (EJ) by 2050 under a most optimal scenario. In a more average scenario bioenergy's contribution to the world's future energy supply ranges between 20 and 50% (200 - 400 EJ), depending on different energy demand scenarios. Some 130-260 EJ of this amount would be made up of liquid biofuels, more than the world's current total mineral oil output. Over the longer term (2100), more land becomes available and the share of bioenergy increases (graph 1, click to enlarge). For this contribution to materialize, the development and deployment of perennial crops in developing countries is of key importance, as is the creation of international markets. The IEA Bioenergy Excom states that for many rural communities in developing countries such a situation would offer good opportunities for socio-economic development.

Current and future energy demand
The researchers note that global current fossil energy use totals 388 EJ. Energy demand is expected to at least double or perhaps triple during this century. At the same time, concentrations of greenhouse gases (GHGs) in the atmosphere are rising rapidly, with fossil fuel-derived CO2 emissions being the most important contributor. In order to minimise related global warming and climate change impacts, GHG emissions must be reduced to less than half the global emission levels of 1990. In addition, security of energy supply is a global issue. A large proportion of known conventional oil and gas reserves are concentrated in politically unstable regions, and increasing the diversity in energy sources is important for many nations to secure a reliable and constant supply of energy.

In this context, biomass for energy can play a pivotal role. Energy from biomass, when produced in a sustainable manner, can drastically reduce GHG emissions compared to fossil fuels. Most countries have biomass resources available, or could develop such a resource, making biomass a more evenly spread energy supply option across the globe. It is a versatile energy source, which can be used for producing power, heat, liquid and gaseous fuels, and also serves as a feedstock for materials and chemicals.

Due to rising prices for fossil fuels (especially oil, but also natural gas and to a lesser extent coal) the competitiveness of biomass use has improved considerably over time. In addition, the development of CO2 markets (emission trading), as well as ongoing learning and subsequent cost reductions for biomass and bioenergy systems, have strengthened the economic drivers for increasing biomass production, use, and trade.

The IEA Bioenergy ExCom notes that biomass and bioenergy are now a key option in energy policies. Security of supply, an alternative for mineral oil and reduced carbon emissions are key reasons. Targets and expectations for bioenergy in many national policies are ambitious, reaching 20-30% of total energy demand in various countries. Similarly, long-term energy scenarios also contain challenging targets.

Sufficient biomass resources and a well-functioning biomass market that can assure reliable, sustainable, and lasting biomass supplies are crucial preconditions to realise such ambitions. Relatively recently, international trade in biomass resources has become part of the portfolio of market dealers and volumes traded worldwide have increased at a very rapid pace with an estimated doubling of volumes in several markets over the past few years.

Global biomass potential
Various biomass resource categories can be considered: residues from forestry and agriculture, various organic waste streams and, most importantly, the possibilities for dedicated biomass production on land of different categories, e.g., grass production on pasture land, wood plantations and sugar cane on arable land, and low productivity afforestation schemes for marginal and degraded lands.

The potential for energy crops depends largely on land availability considering that worldwide a growing demand for food has to be met, combined with environmental protection, sustainable management of soils and water reserves, and a variety of other sustainability requirements. Given that a major part of the future biomass resource availability for energy and materials depends on these complex and related factors, it is not possible to present the future biomass potential in one simple figure. Table 1 (click to enlarge) provides a synthesis of analyses of the longer term potential of biomass resource availability on a global scale. Also, a number of uncertainties are highlighted that can affect biomass availability:

These estimates are sensitive to assumptions about crop yields and the amount of land that could be made available for the production of biomass for energy uses, including biofuels. Critical issues include:

• Competition for water resources: Although the estimates presented in Table 1 generally exclude irrigation for biomass production, it may be necessary in some countries where water is already scarce.
• Use of fertilisers and pest control techniques: Improved farm management and higher productivity depend on the availability of fertilisers and pest control. The environmental effects of heavy use of fertiliser and pesticides could be serious.
• Land-use: More intensive farming to produce energy crops on a large-scale may result in losses of biodiversity. Perennial crops are expected to be less harmful than conventional crops such as cereals and seeds, or even able to achieve positive effects. More intensive cattle-raising would also be necessary to free up grassland currently used for grazing.
• Competition with food and feed production: Increased biomass production for biofuels out of balance with required productivity increases in agriculture could drive up land and food prices.

Taking a more average estimate than the most optimal scenario, the researchers think future biomass production on different types of land could be broken down as follows:

Energy farming on currrent agricultural land
Energy farming on current agricultural (arable and pasture) land could, with projected technological progress, contribute 100 - 300 EJ annually, without jeopardising the world's future food supply. A significant part of this potential (around 200 EJ in 2050) for biomass production may be developed at low production costs in the range of E2/GJ assuming this land is used for perennial crops.

Energy farming on marginal and degraded land
Another 100 EJ could be produced with lower productivity and higher costs, from biomass on marginal and degraded lands. Regenerating such lands requires more upfront investment, but competition with other land-uses is less of an issue and other benefits (such as soil restoration, improved water retention functions) may be obtained, which could partly compensate for biomass production costs.

Biomass wastes and residues
Combined and using the more average potential estimates, organic wastes and residues could possibly supply another 40-170 EJ, with uncertain contributions from forest residues and potentially a significant role for organic waste, especially when biomaterials are used on a larger scale.

In total, the bioenergy potential could amount to 400 EJ per year during this century. This is comparable to the total current fossil energy use of 388 EJ.

Key to the introduction of biomass production in the suggested orders of magnitude is the rationalisation of agriculture, especially in developing countries. There is room for considerably higher landuse efficiencies that can more than compensate for the growing demand for food.

The development and deployment of perennial crops (in particular in developing countries) is of key importance for bioenergy in the long run. Regional efforts are needed to deploy biomass production and supply systems adapted to local conditions, e.g., for specific agricultural, climatic, and socio-economic conditions.

Conversion options
Conversion routes for producing energy carriers from biomass are plentiful. Figure 1 (click to enlarge) illustrates the main conversion routes that are used or under development for production of heat, power and transport fuels. Key conversion technologies for production of power and heat are combustion and gasification of solid biomass, and digestion of organic material for production of biogas. Main technologies available or developed to produce transportation fuels are fermentation of sugar and starch crops to produce ethanol, gasification of solid biomass to produce syngas and synthetic fuels (like methanol and high quality diesel), and extraction of vegetal oils from oilseed crops, which can be esterified to produce biodiesel.

The various technological options are in different stages of deployment and development. Tables 2 and 3 (click to enlarge) provide a compact overview of the main technology categories and their performance with respect to energy efficiency and energy production costs. The 'End-use Applications' section discusses the likely deployment of various technologies for key markets in the short- and the long-term.

Current and projected performance data for transport biofuel production techniques

Current and projected performance data for bioenergy production techniques

Short-term represents best available technology or the currently noncommercial systems which could be built around 2010. Long-term represents technology with considerable improvement, large-scale deployment, and incorporation of process innovations that could be realised around 2040. This is also the case for the biomass supplies, assuming biomass production and supply costs around E2/GJ for plants which are close to the biomass production areas.

Market development and international trade
Biofuel and biomass trade flows are modest compared to total bioenergy production but are growing rapidly. Trade takes place between neighbouring regions or countries, but increasingly trading is occurring over long distances.

The possibilities for exporting biomass-derived commodities to the world's energy markets can provide a stable and reliable demand for rural regions in many developing countries, thus creating an important incentive and market access that is much needed. For many rural communities in developing countries such a situation would offer good opportunities for socio-economic development. Sustainable biomass production may also contribute to the sustainable management of natural resources.

Importing countries on the other hand may be able to fulfil cost-effectively their GHG emission reduction targets and diversify their fuel mix.

Given that several regions of the world have inherent advantages for producing biomass (including lignocellulosic resources) and biofuels in terms of land availability and production costs, they may gradually develop into net exporters of biomass and biofuels.

International transport of biomass (or energy carriers from biomass) is feasible from both the energy and the cost points of view. The import of densified or pre-treated lignocellulosic biomass from various world regions may be preferred, especially for second generation biofuels, where lignocellulosic biomass is the feedstock and large-scale capital intensive conversion capacity is required to achieve sound economics. This is a situation comparable to that of current oil refineries in major ports which use oil supplies from around the globe.

Very important is the development of a sustainable, international biomass market and trade. Proper standardisation and certification procedures are to be developed and implemented to secure sustainable biomass production, preferably on the global level. Currently, this is a priority for various governments, market players, and international bodies. In particular, competition between production of food, preservation of forests and nature and use of land for biomass production should be avoided. As argued, this is possible by using lignocellulosic biomass resources that can come from residues and wastes, which are grown on non-arable (e.g., degraded) lands, and in particular by increased productivity in agricultural and livestock production.

Demonstration of such combined development where sustainable biomass production is developed in conjunction with more efficient agricultural management is a challenge. However, this is how bioenergy could contribute not only to renewable energy supplies and reducing GHG emissions, but also to rural development.

Biomass and bioenergy in the world's future energy supply
What contribution can biomass make to future global energy (and bio-products) demand? A wide diversity of projections of potential future energy demand and supply exist. Typically, scenarios are used to depict uncertainties in future developments and possible development pathways. The 'Special Report on Emission Scenarios' (SRES) developed in the context of the Intergovernmental Panel on Climate Change (IPCC) is based on four storylines that describe how the world could develop over time.

Differences between the scenarios concern economic, demographic, and technological development and the orientation towards economic, social, and ecological values. The storylines denoted A1 and A2 are considered societies with a strong focus towards economic development. In contrast, the B1 and B2 storylines are more focused on welfare issues and are ecologically orientated. While the A1 and B1 storylines are globally oriented, with a strong focus towards trade and global markets, the A2 and B2 storylines are more regionally oriented.

Graph 2 shows the total energy demand for secondary energy carriers (such as transport fuels, electricity, gas, etc.) in four distinct years of the four scenarios. Clearly, the various scenarios show large differences in demand and energy mix, as a result of variations in population dynamics, and economic and technological development.

Total primary (the presumed mix of fossil fuels, renewables and nuclear) energy demand in 2050 varies between about 800 EJ and 1,400 EJ. As discussed previously, the total primary biomass supplies in 2050 could amount to 200-400 EJ. This is conservative relative to the increased availability of primary biomass for the different SRES scenarios, shown in graph 1. The circled lines depict the total primary energy demand per scenario, corresponding with the projected energy consumption data in graph 2. All scenarios project a gradual development of biomass resource availability, largely corresponding to the (potentially) gradually increased availability of land over time.

Assuming conversion to transport fuels with an expected average conversion efficiency of 65%, this would result in 130-260 EJ of fuel. This is up to double the current demand and a similar range to the expected demand in the SRES scenarios discussed above.

Competing markets for biomass?
Biomass cannot realistically cover the whole world's future energy demand. On the other hand, the versatility of biomass with the diverse portfolio of conversion options, makes it possible to meet the demand for secondary energy carriers, as well as biomaterials. Currently, production of heat and electricity still dominate biomass
use for energy.

The question is therefore what the most relevant future market for biomass may be. For avoiding CO2 emissions, replacing coal is at present a very effective way of using biomass. For example, co-firing biomass in coal-fired power stations has a higher avoided emission per unit of biomass than when displacing diesel or gasoline with ethanol or biodiesel.

However, replacing natural gas for power generation by biomass, results in levels of CO2 mitigation similar to second generation biofuels. Net avoided GHG emissions therefore depend on the reference system and the efficiency of the biomass production and utilisation chain. In the future, using biomass for transport fuels will gradually become more attractive from a CO2 mitigation perspective because of the lower GHG emissions for producing second-generation biofuels and because electricity production on average is expected to become less carbon-intensive due to increased use of wind energy, PV and other solar-based power generation, carbon capture and storage technology, nuclear energy, and fuel shift from coal to natural gas.

In the shorter term, however, careful strategies and policies are needed to avoid brisk allocation of biomass resources away from efficient and effective utilisation in power and heat production or in other markets, e.g., food. How this is to be done optimally will differ from country to country.

The use of biomass for biomaterials will increase, both in well established markets (such as paper, construction) and for possibly large new markets (such as bio-chemicals and plastics) as well as in the use of charcoal for steel making. This adds to the competition for biomass resources, in particular forest biomass, as well as land for producing woody biomass and other crops. The additional demand for bio-materials could surpass the current global biomass use (which is some 10% of the global energy use).

However, increased use of bio-materials does not prohibit the production of biofuels (and electricity and heat) per se. Construction wood ends up as waste wood, paper (after recycling) as waste paper, and bio-plastics in municipal solid waste. Such waste streams still qualify as biomass feedstock and are available, often at low or even negative costs.

Cascading biomass over time in fact provides an essential strategy to optimise the CO2 mitigation effect of biomass resources. The IPCC (2007) reports that the largest sustained mitigation benefit will result from a sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre, or energy from the forest. This could for example involve conventional forests producing material cascades (e.g., solid wood products, reconstituted particle/fibre products, paper products) with wood or fibre that cannot be reused/recycled being used for energy.

Comparison with other energy supply options
State-of-the-art scenario studies on energy supply and mitigation of climate change agree that all climate-friendly energy options are needed to meet the future world's energy needs and simultaneously drastically reduce GHG emissions.

Intermittent sources such as wind and solar energy have good potential, but their deployment is also constrained by their integration into electricity grids. In addition, electricity production from solar energy is still expensive.

Hydropower has a limited potential and commercial deployment of geothermal and ocean energy, despite their large theoretical potentials, has proved to be complex.

Biomass in particular can play a major and vital role in production of carbon-neutral transport fuels of high quality as well as providing feedstocks for various industries (including chemical). This is a unique property of biomass compared to other renewables and which makes biomass a prime alternative to the use of mineral oil.

Given that oil is the most constrained of the fossil fuel supplies, this implies that biomass is particularly important for improving security of energy supply on the global as well on a national level.

In addition, competitive performance is already achieved in many situations using commercial technologies especially for producing heat and power. It is therefore expected that biomass will remain the most important renewable energy carrier for many decades to come. Conversion to power with an assumed average efficiency of 50% logically results in 100-200 EJe, also a similar range to the expected future demand.

Additional future demand for (new) biomaterials such as bio-plastics could add up to 50 EJ halfway through this century.

It is clear, therefore, that biomass can make a very large contribution to the world's future energy supply. This contribution could range from 20% to 50%. The higher value is possible when growth in energy demand is limited; for example, by strongly increased energy efficiency.

Opportunities for bioenergy
Biomass is a versatile energy source that can be used for production of heat, power, and transport fuels, as well as biomaterials and, when produced and used on a sustainable basis, can make a large contribution to reducing GHG emissions.

Biomass is the most important renewable energy option at present and is expected to maintain that position during the first half of this century and likely beyond that. Currently, combined heat and power (CHP), co-firing and various combustion concepts provide reliable, efficient, and clean conversion routes for converting solid biomass to power and heat.

Production and use of biofuels are growing at a very rapid pace. Although the future role of bioenergy will depend on its competitiveness with fossil fuels and on agricultural policies worldwide, it seems realistic to expect that the current contribution of bioenergy of 40-55 EJ per year will increase considerably.

A range from 200 to 400 EJ may be expected during this century, making biomass a more important energy supply option than mineral oil today – large enough to supply one-third of the world's total energy needs.

Bioenergy markets provide major business opportunities, environmental benefits, and rural development on a global scale. If indeed the global bioenergy market is to develop to a size of 300 EJ over this century (which is quite possible given the findings of recent global potential assessments) the value of that market at E4-8/GJ (considering pre-treated biomass such as pellets up to liquid fuels such as ethanol or synfuels) amounts to some E1.2-2.4 trillion per year.

Feedstocks can be provided from residues from agriculture, forestry, and the wood industry, from biomass produced from degraded and marginal lands, and from biomass produced on good quality agricultural and pasture lands without jeopardising the world's food and feed supply, forests, and biodiversity.

The pre-condition to achieve such a situation is that agricultural land-use efficiency is increased, especially in developing regions.

Considering that about one-third of the above-mentioned 300 EJ could be supplied from residues and wastes, one-quarter by regeneration of degraded and marginal lands, and the remainder from current agricultural and pasture lands, almost 1,000 million hectares worldwide may be involved in biomass production, including some 400 million hectares of arable and pasture land and a larger area of marginal/degraded land. This is some 7% of the global land surface and less than 20% of the land currently in use for agricultural production.

There are rapid developments in biofuel markets: increasing production capacity, increasing international trade flows, increased competition with conventional agriculture, increased competition with forest industries, and strong international debate about the sustainability of biofuels production.

Biomass is developing into a globalised energy source with advantages (opportunities for producers and exporters, more stability in the market) and concerns (competing land use options, sustainability).

Biomass trading and the potential revenues from biomass and biomass-derived products could provide a key lever for rural development and enhanced agricultural production methods, given the market size for biomass and biofuels. However, safeguards (for example, well-established certification schemes) need to be installed internationally to secure sustainable production of biomass and biofuels. In the period before 2020 substantial experience should be obtained with sustainable biomass production under different conditions as well as with deploying effective and credible certification procedures.

Especially promising are the production of electricity via advanced conversion concepts (i.e., gasification, combustion, and co-firing) and biomass-derived fuels such as methanol, hydrogen, and ethanol from lignocellulosic biomass. Ethanol produced from sugar cane is already a competitive biofuel in tropical regions and further improvements are possible.

Both hydrolysis-based ethanol production and production of synfuels via advanced gasification from biomass of around E2/GJ can deliver high quality fuels at a competitive price with oil down to US$45/ barrel.

Net energy yields per unit of land surface are high and GHG emission reductions of around 90% can be achieved, compared with fossil fuel systems. Flexible energy systems, in which biomass and fossil fuels can be used in combination, could be the backbone for a low risk, low-cost, and low carbon emission energy supply system for large-scale supply of fuels and power, providing a framework for the evolution of large-scale biomass raw material supply systems.

References:
IEA Bioenergy Executive Committee: Potential Contribution of Bioenergy to the World's Future Energy Demand - September 2007.

China aims high in renewable energy usage

China will increase the portion of renewable resources to 15 percent in its total energy consumption in 2020 in a bid to reduce greenhouse gas emissions and pursue sustained economic growth, according to a national plan published on Tuesday.

China's renewable energy usage will total 600 million tons of coal equivalent by 2020, compared with 166 million tons in 2005 which accounted for 7.5 percent of the country's total energy consumption.

The plan would cost China two trillion yuan (US$266.7 billion) during the 2006-2020 period, said Chen Deming, vice minister in charge of the National Development and Reform Commission (NDRC).

As coal currently feeds most of China's energy needs and causes serious pollution, the plan highlights the development of hydropower, wind power, biomass and solar energy.

By 2020, the country's installed hydropower capacity is expected to reach 300 million kilowatts (kW), wind power capacity 30 million kW, biomass power 30 million kW and solar power 1.8 million kW.

According to the plan published by NDRC, China will also provide electricity to remote, off-grid regions and alleviate fuel shortages in rural areas by using renewable energy.

By 2020, about 300 million rural people will use biogas as their main fuel, when China will use 10 million tons of bio-ethanol and two million tons of bio-diesel to replace 10 million tons of oil annually.

Study Proposes "Multi-track" Strategies On Emission Reduction

SYDNEY, Sept 5 (Bernama) -- A study released here today has proposed what it says is "a new strategy for unified global action" to tackle climate change, an issue over which leaders of the Asia-Pacific Economic Cooperation (Apec) remain divided.

The study, released by the United States-based non-governmental organisation, World Growth, proposes a "multi-track" process that allows countries to develop "more customised strategies to reduce emissions".

World Growth chairman Alan Oxley, who authored the study, said that the process could bring the United States, China, Japan, Australia, South Korea and other countries of the region "closer together on a consensus" towards how to tackle climate change ahead of the United Nations global talks later this year in Bali, Indonesia.

"The Apec region is the ideal forum for proposing a new approach," said Oxley.

Among others, the study's "multi-track" strategy allows for each nation to develop a strategy to tackle climate change that best suits it.

The report claims that this would give nations more flexibility to reach emission reductions through a variety of strategies, including Kyoto-styled mandatory cuts, adopting new technologies and improving energy consumption.

Australian Prime Minister John Howard wants this year's Apec to put climate change on top of the agenda and is pushing for a climate change strategy, triggering a debate whether Apec is the right forum to discuss the issue.

Apec groups Australia, Canada, China, Chile, Hong Kong, Brunei, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, South Korea, Taiwan, Thailand, Vietnam and the United States.

-- BERNAMA

GERMAN FIRM TO CONSTRUCT BIO-FUEL PLANT IN BULGARIA FOR 100 MLN EURO

Tue 28 Aug 2007

 

German company Verbio Vereinigte BioEnergie AG has been examining opportunities to invest 100 million euro in the construction of a plant for bio-fuel production.

The firm has been researching the proper terrain for the construction. The company insists that the plant should be located near a port and is considering the region of Varna, company representatives said, as quoted by investor.bg.

The production facility will produce bio-diesel and bio-ethanol. The company is expected to apply for a first-class investment certificate. Bulgaria could become a main producer of bio-fuels on the Balkan region, the company's managing director Claus Sauter said.

Verbio has several bio-diesel and bio-ethanol plants in Germany. Their total capacity exceeds 700 000 tons a year, or 2.1 litres a day. Of this, 400 000 tons is bio-diesel and 300 000 tons is bio-ethanol.

The firm currently uses rapeseed and rapeseed oil as raw materials, and is expected to introduce palm oil to its production line by the end of 2007.

How winds of change could be an alternative to coal

In the valley around the south Indian village of Gudihalli, farmers have cultivated sunflowers, coconut trees and the medicinal plant salpani for generations.

Now, on the surrounding hills, windmills 56 metres (184ft) high loom over the traditional industries of Chitradurga, a region in the state of Karnataka best known for its ancient fort.

The 800-kilowatt turbines, 48 metres in diameter, are surprisingly quiet. In this region, 246 turbines have been installed. On these hills there are 28; two were financed by Climate Care in exchange for the carbon-free electricity they will produce until 2018.

The British company provided an £85,000 grant towards the capital costs of the turbines built by two local companies, Mahalaxmi Construction and RDS Construction. Electricity has been sold to the grid for nearly two years. In the monitoring station, engineers from the company Enercon study the progress. By mid-August the RDS turbine and the Mahalaxmi turbines had each generated about 2.7 million kilowatts. Mitcon, an Indian consultancy monitoring the project for Climate Care, calculates that the two turbines had collectively saved 4,010.18 tonnes of carbon – equivalent to the annual emissions of 666 British households.

In June the Indian Government released a database establishing carbon values for each unit of energy generated, on all regional grids, allowing the carbon displaced by renewable energy sources – the certified emission reduction – to be more accurately calculated than was previously possible.

The new India has urgent energy needs to sustain its economic boom, and great potential for wind energy. Today it accounts for less than 5 per cent of total generation. The gross potential for wind energy is 45,000 mega-watts; just 4,000MW is now generated. Campaigners say that India will become of one of the top three carbon dioxide emitters. To meet its electricity generation target of 400,000MW by 2030 it will rely not on renewable energy but on large-scale coal-fired power plants, which are the cheapest to operate. Today 62 per cent of India's electricity is powered by coal.

Wind energy makes little sense for private investors without the big tax breaks offered by the Government. The cost and earnings of the turbines mean they break even in year 12.

According to Ameen Ahmed, a wildlife campaigner in Karnataka, they are "not worth the environmental damage" that they cause. The turbines "have devastated large tracts of forest and many villagers complain about the noise pollution". There have also been reports of the whirring driving bears from their natural habitat.

India is a leader in the technology of renewable energy, and the fourth biggest generator of wind energy. It is harnessing the opportunity provided by trading carbon credits with Western nations to help them meet their emission targets under the Kyoto Protocol.

IJM Plantations to launch biodiesel module

SUBANG: IJM Plantations Bhd expects to launch its first 30,000-tonne biodiesel module by the second half of next year, said chief executive officer and managing director Velayuthan Tan.  

"Our Sandakan plant is based on a modular concept with a combined capacity of 90,000 tonnes. There are three modules with 30,000-tonne capacity each," he said after the company AGM and EGM yesterday.  

He said the group was likely to go into full-scale operations by end-2008 once it was familiar with the processes and the biodiesel market.  

The biodiesel subsidiary, IJM Biofuel Sdn Bhd is a 60:40 joint venture between IJM Plantations and US company CTI Biofuels Malaysia LLC.  

Velayuthan Tan

Tan said its American partner had helped in securing demand for the first biodiesel production, which would mainly be exported to Europe and the US.  

Contribution from the new operations was likely to flow in during fiscal year ending March 31, 2009, he added.  

Meanwhile, IJM Plantations has started a nursery on 4,000ha in north-east Kalimantan. It owns about 32,000ha in that area.  

"We hope to start first planting around middle of next year and the rest over the next five to six years," Tan said, adding that the quality of soil should produce good yields.  

The company intends to buy another 8,000ha close to its Kalimantan plantation.  

"Ideally we're looking at (a total) 40,000ha. We hope to secure the rest by year-end," Tan said, adding that it had allocated an initial investment of RM250mil for its Indonesian venture.  

IJM Plantations owns about 30,000ha in Sabah, of which some 25,000ha have been planted. According to its 2007 annual report, close to 47% are prime trees, 42% young and the balance immature palms.  

Tan said based on the age profile, production of fresh fruit bunches was anticipated to chart double-digit growth next year.  

The company is expected to release its first quarter results this week. 

MHI Receives Order for Geothermal Power Plant in Kenya; Set to Become CDM Project

Tokyo, Japan, Aug 28, 2007 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI) has received a full-turnkey order from Kenya Electricity Generating Company Limited (KenGen) to build a 35 MW (megawatt) geothermal power generation plant, the third unit at the company's Olkaria II geothermal power station. The new construction initiative is expected to become Clean Development Mechanism (CDM) project, and the new plant is slated to go on-stream in the end of December 2009.

The Olkaria II power station is located approximately 100 kilometers northwest of Nairobi, the nation's capital. The plant on order will consist of a steam turbine, condenser, generator, peripheral equipment, electrical facilities and a control system. MHI's Nagasaki Shipyard and Machinery Works will be responsible for the design, manufacture, installation and civil engineering work. Mitsubishi Electric Corporation will supply a generator. Mitsubishi Corporation is handling the trade particulars.

Prior to the latest order, MHI has already supplied five geothermal power plants to KenGen: three units (15MW each) for Olkaria I that went on-stream in 1980s and two units (35 MW each) for Olkaria II completed in 2003. MHI believes the new order was awarded as a result of the power provider's recognition of the technological excellence, reliability and safety of those earlier deliveries.

Geothermal power generation utilizes geothermal fluid, a mixture of high-temperature water and steam (over 250 C, or 482 F) extracted from deep underground reservoirs through production wells. The steam extracted from the fluid is used to rotate steam turbines. As geothermal power generation involves no fuel combustion and emits no CO2, it contributes to environmental preservation. Construction of the third unit at Olkaria II is expected to become CDM project, one of the three "flexibility mechanisms" incorporated into the Kyoto Protocol which came into force in February 2005.

MHI has vast experience in geothermal power systems, in addition to plants relying on other natural energy sources such as wind power, hydropower and solar energy. Outside Japan, to date the company has delivered geothermal plants to 13 countries worldwide, including Kenya, the United States, Iceland and Costa Rica. Their collective power output is about 3,000 MW.

Kenya presently obtains more than 75% of its entire power supply form hydropower generation, but as geothermal power generation is a stable power source that is not affected by weather, the country has plans to promote geothermal projects. MHI will now further fortify its marketing activities, both within Kenya and worldwide, for geothermal power plants as a clean energy resource.

Myanmar Energy Planning Dept Plans on Biofuels

SINGAPORE, Aug 27 (Reuters) - Myanmar plans to export jatropha-based biodiesel as it attempts to tap the growing market for biofuels, a senior Myanmar energy official told a seminar on Monday.

"By this time next year we hope to have 7 million acres (2.8 million hectares) of jatropha plantations in full swing and a large amount of biodiesel for export in the future," said U Soe Myint, director general of Myanmar's energy planning department.

According to Lim Hong Hui, chief executive officer of Singapore's Tian Biogreen Energy Ltd (TBEL), 2 million hectares of jatropha crops can produce 1.2 million tonnes a year of jatropha crude, a similar product to crude palm oil.

"Myanmar's requirements for biodiesel are minimal, but the jatropha project should earn some foreign exchange income," said U Soe Myint.

Myanmar has faced a rare series of protests sparked by fuel price hikes last week. The price rises were most likely a result of Myanmar's generals struggling to pay for domestic diesel subsidies despite rising revenue from sales of natural gas.

The plantations will be run by Myanmar's seven local state departments, rather than the central government, with each state having its own processing plants, said U Soe Myint. "Malaysian and Indonesian companies are already in talks with people in the various states to set up processing plants, while the central government will be responsible for quality control," he added.

Jatropha is a drought-resistant perennial bush or small tree that analysts consider one of the most promising sources of biofuel, as it avoids strain on food crops like corn and sugar.

MG Biogreen To Set Up 10 More Waste Composting Plants

KUALA LUMPUR, Aug 27 (Bernama) -- MG Biogreen Sdn Bhd aims to set up 10 more waste composting plants, costing US$2 million each, over the next three years to step up its carbon credit production, senior vice president of operations Dennis Lau said today.

"These waste management plants in our expansion plan will be very similar to the one we have (in Lahad Datu) today, (focusing on) composting waste management driven by technology of palm oil waste," Lau said.

"The plants will contribute mainly to the sale of carbon credits," he said, adding that the company was identifying locations in Malaysia and Indonesia for the setting up of the plants.

Carbon credits, a tradeable permit scheme, provide a way to reduce greenhouse gas (GHG) emissions by giving them monetary value, where a credit gives the owner the right to emit a tonne of carbon dioxide.

Credits can be exchanged between businesses or bought and sold in international markets at the prevailing market price.

MG Biogreen has clinched sales of over RM1 million annually for five years by selling to Japan's Kansai Electric Power Co Inc carbon credits produced from its palm oil waste composting plant in Lahad Datu, Sabah.

The company signed an emission reduction purchasing agreement with Kansai Electric at a ceremony here today witnessed by KYOTOenergy Pte Ltd's chief executive officer Michel Buron.

KYOTOenergy, considered the only technology-based carbon asset management company, is responsible for facilitating the sales.

The agreement will allow MG Biogreen to transact up to 400,000 carbon credits until Dec 31, 2012, while Kansai Electric has an option to extend the agreement beyond that date.

MG Biogreen a subsidiary of the MicroGreen group of companies, whose principal activities include research and development on microbial and related products and biological processes, licensing of its technology and the business of organic waste management, and manufacturing and marketing of bio-organic fertilizer and related products.

-- BERNAMA

Felda buys US oleo chemical company

PUTRAJAYA: Felda is set to go global through its ventures in the international market in two areas it is most familiar with - palm oil and food. 

One of the biggest feats in the history of Felda's establishment is the 100% acquisition of Twin Rivers Technologies Group, a United States' oleo chemical company, which will see the authority becoming the owner of the third largest fatty acids and the largest bio-diesel producer in North America. 

Another major accomplishment is that Felda's catering section, D'Saji, will be opening its first restaurant overseas in Mecca, Saudi Arabia, come November. 

Deputy Prime Minister Datuk Seri Najib Tun Razak said the aim had always been for Felda not only to be a global player but also a global leader, particularly in the palm oil industry. 

"The acquisition of the US company is very much consonant with Felda's overall business strategy. We are delighted to have discovered this company and the people who established the company are keen to work and have a long-term relationship with Felda," he said. 

Najib had earlier witnessed the signing of the acquisition deal between Felda and the Twin Rivers Technologies Group (TRT). Felda was represented by its director-general Datuk Tarmizi Alias while chairman Irwin Heller signed for TRT Group. 

The acquisition, worth around US$71mil (RM241.1mil) provides a strategic platform to get Felda's palm products into North America and the move will enable the authority to diversify both geographically and products-wise in the vegetable oils arena. 

The Deputy Prime Minister said Felda would continue to look at other possible international acquisitions to further strengthen its position as a world player in the industry. 

"The other advantage is that we are able to expose our executives to some of the best international practices. This is the hidden benefit of the acquisition. 

"Of course there will also be challenges but if we can work together with the Government, the challenges can be overcome," Najib said, adding the United States' import for palm oil has increased significantly where in 2006, a total of 683,000 tons of palm oil was imported compared to the 300,000 tons in 2004. 

To a question, Najib said Malaysia's role in assisting African nations to build their oil palm industry was through the Malaysian Technical Co-operation Programme (MTCP), adding the Government was willing to extend assistance if there were "invites from countries in the continent". 

The Government is currently engaged in business activities in Sierra Leone where 1,400ha of palm oil has been planted. Felda is the lead agency for the project while the Government provides support, including financial assistance for the programme. 

"I am also excited and pleased that Felda will be opening a restaurant in Mecca. This will be the authority's first foray to test its culinary capabilities. I am confident they will succeed and look forward to the possibility of opening many more of such restaurants worldwide," he said.

US awards grants to Pakistan’s power sector

ISLAMABAD, Aug 27 (APP): United States Trade and Development Agency (USTDA) on Monday signed two agreements to provide grant of dollars 587,000 to Pakistan for two different projects of energy production.

American ambassador to Pakistan Anne W. Patterson speaking at the agreement signing ceremony held at local hotel said, "These grants are part of a dollars 1.4 million package to Pakistan, and expression of our commitment to Pakistan's economic development under the US-Pakistan energy discussion framework."

She said Pakistan's electricity market is expected to grow at about 7.5 to 10 per cent per year over the next 15 years as the country's robust economy expands, therefore, assured that America will extend more cooperation to Pakistan in meeting its energy demands.

The American ambassador said, "We applaud the government of Pakistan's decision to use indigenous renewable energy sources such as water, wind, municipal solid waste and other renewable sources."

She said these grants are to support the renewable energy priorities of US-Pakistan energy discussions, which President Bush and President Musharraf launched during President Bush's visit to Pakistan in March 2006.

She said implementation of these power projects will assist Pakistan in meeting the growing demand for power and will enhance the nation's energy security.

The ambassador said another agreement was being finalized to provide dollars 810,000 for energy sector to produce 150 MW electricity using coal and added that it will be signed in September this year in Washington.

American ambassador to Pakistan Anne W. Patterson singed both the grants on behalf of USTDA while Chairman of Alternative Energy Development Board Air Marshal (Retd) Shahid Hamid and Chairman National Electric Power Regulatory Authority (NEPRA)  Lt. Gen.  (Retd) Saeed uz Zafar respectively.

The first grant of dollars 325,000 to Alternative Energy Development Board (AEDB) will assist Pakistan in developing new electric power supplies through a detailed evaluation of a five to ten MW waste to energy power plant near Karachi.

The second agreement of grant of dollars 263,000 to National Electric Power Regulatory Authority (NEPRA) to support a review of renewable energy projects and recommending tariff setting procedures, and changes to the legal framework of the renewable energy sector.

Chairman NEPRA Lt. Gen. (Retd) Saeed uz Zafar speaking on the occasion said its after a long time that Pakistan has received a grant from US for energy sector.

He said under this grant, the NEPERA would review its strategy towards renewable energy projects and recommend new tariff settings.

Chairman Alternative Energy Development Board Air Marshal (Retd) Shahid Hamid speaking on the occasion thanked the America government for this grants adding that it is just a beginning. He expressed the hope that USTDA would also provide more funds to start renewable energy projects from waste in other big cities of Pakistan.

He said Pakistan is also looking for more funds for other alternative energy sources including bio, wind and coal.

Alternative Energy - Power the Grid with Garbage

What if there was a way to use landfill waste to make electricity? What if with this method a by-product was produced that could be sold for a profit? What if it produced clean and safe steam energy? Would you lobby your local government to give it a try?

Think about your answer because this alternative energy source exists right now. A flagship plant has been operating for the last few years in Utashinai , Japan. And another one is slated for completion by 2009 in Saint Lucie County, Florida.

Atlanta based, Geoplasma , expects to generate 160 megawatts of electricity, enough to power 36,000 homes. And where does the garbage come in, you ask?

Here is the process in a nutshell. The new plant is being built next to an existing landfill sight. They will process 3,000 tons of trash from the landfill and surrounding sources. The garbage is fed into an auger, a machine which shreds it into smaller pieces. These are then fed into a plasma chamber - a sealed, stainless steel vessel filled with either nitrogen or ordinary air. A 650-volt electrical current is passed between two electrodes; this rips electrons from the air and creates plasma.

A constant flow of electricity through the plasma maintains a field of extremely intense energy powerful enough to disintegrate the shredded garbage into its component elements. The byproducts are a glass-like substance used as raw materials for high-strength asphalt or household tiles and " syngas".

Syngas is a mixture of hydrogen and carbon monoxide and it can be converted into fuels such as hydrogen, natural gas or ethanol. Syngas (which leaves the converter at a temperature of around 2,200 degrees Fahrenheit) is fed into a cooling system which generates steam. This steam is used to drive turbines which produce electricity - part of which is used to power the converter, while the rest can be used for the plant's heating or electrical needs, or sold back to the utility grid.

The advantages with Plasma Gasification are obvious. Existing landfills would be eaten away to produce much needed energy. The land could then be reclaimed for animal habitation. And at the rate that US citizens produce garbage we would have an endless source of energy without having to drill into the Earth or strip forests and take the tops of mountains looking for coal.

It sounds like the ultimate in recycling and sustainability. I plan to look for future information on the Florida plant and keep an eye on the advancements. I'm wondering about the carbon emissions. I can't find anything to indicate if they plan to use carbon sequestration. I'll update everyone if I find anything. In the meantime, here is a list of informative articles on the subject.

Malaysia backs Japan's climate change initiative

KUALA LUMPUR: Malaysia backed Japan's new initiative to halve global emissions by 2050, the two countries said Friday after their leaders held talks on issues ranging from energy and trade cooperation to stability in North Korea. 

Japanese Prime Minister Shinzo Abe arrived Thursday on his first official visit to Malaysia as part of an Asian tour, which earlier took him to Indonesia and India. 

"This visit is a reaffirmation of the continued interest Japan has in enhancing economic and trade relations as well as investment,'' Foreign Minister Syed Hamid Albar told reporters. 

A joint statement issued at the end of the talks between Abe and his Malaysian counterpart, Abdullah Ahmad Badawi, said the two leaders "shared the need to cut global emissions by half from the current level by 2050 in order to stabilize atmospheric concentrations of greenhouse gases.'' 

The emission reduction target is part of Abe's "Cool Earth 50'' initiative, which was announced in May and calls for an effective framework for addressing climate change beyond 2012.  

All countries would participate under the auspices of the United Nations. 

The statement said Abdullah "highly appreciated'' the initiative.

Abe and Abdullah also agreed it is important to promote sustainable forest management in Malaysia, to counter greenhouse gas emissions and to conserve the planet's biodiversity. 

Abdullah also urged more Japanese involvement in Malaysia's southern and northern regions, which are being developed as new investment hubs.  

The two countries reached a free trade pact in July last year, resulting in Japanese investment in Malaysia increasing by about five times. 

The two leaders said a similar free trade pact between Japan and the Association of Southeast Asian Nations would "consolidate the prosperity of the region.''

Renewable energy can save Southeast Asia 2 trln usd in fuel costs - Greenpeace

SINGAPORE (Thomson Financial) - Shifting to renewable energy could save Southeast Asian countries as much as two trillion US dollars in fuel costs over the next 23 years, or more than 80 billion dollars annually, environmental group Greenpeace said Thursday.

A shift from oil and coal could also reduce carbon dioxide emissions by 22 percent in the same period, it said in a report released to coincide with a meeting of Association of Southeast Asian Nations (ASEAN) energy ministers here.

Globally, investing in renewable energy -- geothermal, hydro, wind and solar power as well as biomass and biofuels -- would save countries 180 billion dollars a year and slash carbon dioxide emissions in half by 2030, Greenpeace said.

Carbon dioxide sent into the atmosphere has been blamed as a major contributor to climate change.

While upfront investment costs are higher for renewable energy, the long-term savings are greater, Greenpeace said.

However, Southeast Asian energy ministers and officials from China, Japan and South Korea who joined them later at a meeting in Singapore on Thursday indicated that shifting would not be easy.

In a joint communique issued after their one-day meeting, they said that with robust economic growth, the region's demand for oil 'will continue to increase, especially in the transportation sector.'

They also 'recognised that coal will play an important role in the regional energy supply,' in sharp contrast with Greenpeace's position calling for a moratorium on the building of new coal-fired plants.

They acknowledged efforts of some countries to explore the peaceful use of nuclear energy and encouraged dialogues to discuss more viable nuclear technologies.

Greenpeace had urged the ASEAN energy ministers to scrap plans to harness civilian nuclear energy and focus resources on developing renewable sources that are abundant in the region.

ASEAN members Indonesia and the Philippines have among them the biggest geothermal resources in the world, Greenpeace said.

ASEAN members have committed to increase the share of renewable energy in power generation to 10 percent by 2010.

ASEAN urged to adopt renewable energy instead of nuclear and coal

Thursday, August 23, 2007

Singapore (dpa) - The environmental group Greenpeace called Thursday on the Association of South-East Asian Nations (ASEAN) to adopt binding renewable energy and efficiency targets to avert dangerous climate change.

Energy ministers from the grouping's 10 countries were discussing nuclear safety at a meeting in Singapore which could pave the way toward introducing nuclear energy to the region.

Thailand, Indonesia and Vietnam have all said they hope to develop atomic power by 2020.

"The urgent need for decisive action is now," Athena Ballesteros, Greenpeace International climate and energy campaigner, told a news briefing. "ASEAN must establish among its governments" the right energy and climate policy.

A joint report by Greenpeace and The European Renewable Energy Council said adopting nuclear power proposals are very dangerous due to the inherent risks nuclear power poses in addition to ASEAN's geologically unstable areas and governance problems.

It cited the July 16 earthquake that caused a small water leak at the Kashiwazaki-Kariwa nuclear power plant in Japan.

"Besides the dangers of accidents and unresolved issues of nuclear waste storage, building a nuclear power plant involves enormous financial and opportunity costs, diverting funds from clean, safe and far more economical renewable technologies," the report said.

Investing in a renewable energy future will save 10 times the fuel costs of a "business as usual" fossil-fuelled scenario, saving 180 billion US dollars annually and cutting carbon dioxide emissions in half by 2030, Ballesteros said.

He described nuclear power and so-called "clean coal" being discussed by ASEAN as "false, costly and dangerous" solutions to climate change and energy security while renewable energy including solar, wind, hydro, geothermal and bio energy makes "economic sense."

ASEAN comprises Singapore, Thailand, Malaysia, Indonesia, the Philippines, Brunei, Vietnam, Laos, Cambodia and Myanmar (Burma).

The energy ministers were holding a one-day meeting, first among themselves and then joined by counterparts from China, South Korea and Japan.

The South-East Asian region ranks third highest in carbon dioxide emissions among developing countries, following China and India.

By shifting to renewable energy, East Asia stands to save as much 2 trillion US dollars in fossil fuel costs over the next 23 years and reduce carbon dioxide emissions by 22 per cent from 2003 levels, said Jasper Inventor, Greenpeace Southeast Asia Climate spokesman.

Investment in renewable energy

Global investment in renewable energy could reach $750bn annually within the next 10 years, according to the latest Ernst & Young Renewable Energy Country Attractiveness Index – which tracks and scores investment in renewable energy.

Demand for renewable energy is growing at unprecedented rates, driven by competing government incentives. In 2006 investment reached $100bn and Jonathan Johns, Head of Renewable Energy at Ernst & Young, says he sees no signs of these levels cooling off despite the uncertainties in some global markets.

Johns says, "Competition for assets is intense and trade players are increasingly battling for supply chain presence. Further takeover speculation has fuelled share price rises this year and while global trading markets have been tumbling, energy stocks appear to have escaped relatively unscathed for the time being."

He adds, "Given the industries current growth rates of 20% to 30%, the drive from manufacturers' for greater profitability, and new entrants coming into the market from the tiger economies, possibly even Japan, M&A activity is likely to filter down the supply chain adding a premium for key assets such as gearbox and bearing manufacturers."

The All Renewables Index, which scores investment for all forms of renewable energy, from solar to wind and biomass, shows that the US continues to be the global leader – a position it has comfortably held since last autumn.

Over the quarter the Index remained fairly static. The biggest change was the three point rise up the table for the UK from fifth to second position (which it shares with India and Spain) as investors received a fillip from the energy white paper, which put renewables firmly at the centre of future energy policy.

Overall Johns says that the outlook for the sector is very positive, although critical mass is becoming imperative for those companies that are serious about being real players in the market. "The ability to acquire and commercialize new technologies, enter new markets and diversify across the industry requires a strong balance sheet, a track record of raising finance for new acquisitions and a dynamic approach – it's not for the faint hearted."

The Ernst & Young Country Attractiveness Indices provide scores for national renewable energy markets, renewable energy infrastructures and their suitability for individual technologies. The indices provide scores out of 100 and are updated on a regular basis.

The main indices are referred to as the 'Long-Term Index'. The Near-Term Index takes a two-year view with slightly different parameters and weightings. The Country Attractiveness Indices take a generic view and different sponsor/financier requirements will clearly effect how countries are rated. Twenty-five countries are monitored in the indices.

Ernst & Young

Biodiesel in Thailand less costly than petro-diesel, as Bangchak Petroleum plans new facility

Some interesting numbers come from Thailand, where Bangchak Petroleum Plc plans to invest between 900 million and 1 billion baht (€20.5-22.8/$27.8-30.9 million) to build a biodiesel plant by the end of this year.

Patiparn Sukorndhaman, Bangchak's senior executive vice-president, told reporters that biodiesel produced locally costs 70 satang (70 cents) per litre less than conventional diesel. Since 2005, diesel has seen a continuous price hike, with the government feeling the pinch of subsidizing the fuel. First-generation biodiesel being competitive at current prices, Sukorndhaman thinks the alternative fuel will become increasingly popular locally.

Starting in April next year, the Thai government will call on local oil companies to switch all their diesel products to B2, a blend of 2% biodiesel and 98% diesel fuel. The move would encourage and build up confidence among motorists to use the much cheaper B5 fuel currently marketed by Bangchak Petroleum. Bangchak Petroleum offers B5 at 300 of its fuel stations and is planning to increase the number to 500 before the end of 2007.

A recent project coordinated by the Thai government and executed by Bangchak Petroleum in the city Chiang Mai, saw 1,300 public-transport buses utilizing unsubsidized B2, which was 0.5 bath per liter less costly than diesel (overview of this and other projects).

The biodiesel currently produced by the company relies on waste vegetable oils. Bangchak Petroleum has opened units to buy used vegetable oils from towns and communities for the production of biodiesel at its oil refinery in Sukhumvit. It also sources waste oil from various markets in Bangkok.

Bangchak Petroleum's new plant, with a daily production capacity of 300,000 litres per day (78,000 gallons), will use waste and palm oil. It is scheduled to be completed within 20-23 months. The plant would be located near Bangchak's existing oil storage facilities in Bang Pa-in, Ayutthaya (see map, click to enlarge), to save the company's logistics cost:

Bangchak is now the leader in Thailand's biodiesel market, with a share of 78.6% of total market volume of 30 million litres per month, followed by PTT Plc with 21.4%. Patiparn said the company's biodiesel production output rose by 47% to 28.7 million litres per month over the past six months.

Of the total investment in the new plant, up to 300 million baht would come from the company's capital and the rest from loans, which would lift its debt-to-equity ratio to two times from 0.6 currently.

Patiparn said Bangchak forecast its total revenue would grow 15% this year to 107.57 billion baht although its gross refining margin would decline to below US$2.90 per barrel this year on average compared to more than $3 per barrel on average last year.

The revenue growth would be contributed by the company's promising exports of fuel oil, which account for 30% of its total output, to China. This year, it will ship around 25,000 barrels per day of fuels to China, almost double the 14,000 barrels per day last year. The export price is now around $8-10 per barrel.

Nevertheless, the exports would have to be terminated in the fourth quarter when its product quality improvement (PQI) facilities have been completed. The facilities will transform fuel oil into more lucrative lighter fuel products including gasoline and diesel.

Bangchak will shut down two-thirds of its production capacity for 12 days in February next year, which will cause its capacity to decrease to 40,000-50,000 barrels per day from 70,000 barrels currently.

Bangchak now ranks fourth in the local fuel retail market, with a 12.5% share or 180 million litres per month, after PTT (32.9%), Esso (17.5%), and Shell (15.9%).

The company is also investing in the production of ethanol made from cassava.

Solar is a hot investment

According to an article in the Toledo Blade [thanks Colleen], shares of Phoenix, Ariz.-based thin film solar module maker First Solar Inc. with production facilities in Perrysburg, Ohio, is experiencing impressive results with its stock. Today, the company closed its stock trading at $68.82, and yesterday, Monday, May 7, First Solar's stock price closed at $69.63 – a record high for the company.

The surge comes after the company, founded in Toledo as Solar Cells Inc., reported Q1 earnings that easily beat Wall Street estimates, the article said, and that analysts predicted break-even earnings, but the firm had a profit of $5 million on sales of $66.9 million. The company filed its 10-K report today with the SEC.

The company completed an initial public offering in November 2006, and appointed an Intel veteran as its CEO in March.

Further, the company broke ground on a new solar module manufacturing plant in Malaysia in April, that is expected to produce a minimum annual capacity of 100-megawatts.Other companies in the solar cell and solar energy space include BP Solar, Energy Conversion Devices, Energy Photovoltaics, Evergreen Solar, Kyocera Solar, PowerLight, Q-Cells, SCHOTT Solar, Solarfun Power, SunPower, Suntech Power Holdings and U.S. Energy Systems.

Solar energy to 25,000 villages by 2012: Muttemwar

NEW DELHI: With an aim to supply power to every nook and corner of the country, the government is contemplating to provide solar energy to 25,000 unelectrified villages by 2012.

"There are 25,000 villages in the country where due to technical reasons regular electricity could not be provided. So, we are planning to connect them with solar and bio-energy," Union Minister for New and Renewable Energy Vilas Muttemwar said addressing a function here.

Acknowledging that 56 per cent villages have no power connection, he said though the country needed 3 lakh MW power, the present production is just 1.35 lakh MW.

Muttemwar said renewable energy was the only solution in the future to overcome the energy crisis in the country as excessive use of fossil fuels were creating environmental problem in the form of global warming and climate change.

"India is blessed with plenty of renewable energy sources such as solar, bio-energy, wind and hydel energy. With such a vast pool of renewable resources available, the Ministry is striving to provide energy in every village and lighting in every house," he said.

In her speech, Delhi Chief Minister Sheila Dikshit highlighted the steps taken by her government to promote solar energy in the capital city.

"Due to various steps taken by our government, Delhi has become greenest city of the country," she said.

The function, which was orgnaised by TERI to celebrate the 'Rajiv Gandhi Akshay Urja Divas', was also addressed by Director General of TERI R K Pachauri.

Silicon nanoparticles enhance performance of solar cells

CHAMPAIGN, Ill. — Placing a film of silicon nanoparticles onto a silicon solar cell can boost power, reduce heat and prolong the cell's life, researchers now report.

"Integrating a high-quality film of silicon nanoparticles 1 nanometer in size directly onto silicon solar cells improves power performance by 60 percent in the ultraviolet range of the spectrum," said Munir Nayfeh, a physicist at the University of Illinois and corresponding author of a paper accepted for publication in Applied Physics Letters.

A 10 percent improvement in the visible range of the spectrum can be achieved by using nanoparticles 2.85 nanometers in size, said Nayfeh, who also is a researcher at the university's Beckman Institute.

In conventional solar cells, ultraviolet light is either filtered out or absorbed by the silicon and converted into potentially damaging heat, not electricity. In previous work, however, Nayfeh showed that ultraviolet light could efficiently couple to correctly sized nanoparticles and produce electricity. That work was reported in the August 2004 issue of the journal Photonics Technology Letters.

To make their improved solar cells, the researchers began by first converting bulk silicon into discrete, nano-sized particles using a patented process they developed. Depending on their size, the nanoparticles will fluoresce in distinct colors.

Nanoparticles of the desired size were then dispersed in isopropyl alcohol and dispensed onto the face of the solar cell. As the alcohol evaporated, a film of closely packed nanoparticles was left firmly fastened to the solar cell.

Solar cells coated with a film of 1 nanometer, blue luminescent particles showed a power enhancement of about 60 percent in the ultraviolet range of the spectrum, but less than 3 percent in the visible range, the researchers report.

Solar cells coated with 2.85 nanometer, red particles showed an enhancement of about 67 percent in the ultraviolet range, and about 10 percent in the visible.

The improved performance is a result of enhanced voltage rather than current, Nayfeh said. "Our results point to a significant role for charge transport across the film and rectification at the nanoparticle interface."

The process of coating solar cells with silicon nanoparticles could be easily incorporated into the manufacturing process with little additional cost, Nayfeh said.

###

With Nayfeh, the paper's co-authors are graduate student and lead author Matthew Stupca at Illinois, professor Mohamed Alsalhi at King Saud University in Saudi Arabia, and professors Turki Al Saud and Abdulrahman Almuhanna, both at the King Abdulaziz City for Science and Technology in Saudi Arabia.

The research was funded by the National Science Foundation, the state of Illinois, the Grainger Foundation and the University of Illinois.

Pellets of power designed to deliver hydrogen for tomorrow's vehicles

New insights to be shared on use of solid ammonia borane for hydrogen storage

A small pellet of solid ammonia borane (240 mg), as shown, is capable of storing relatively large quantities of hydrogen (0.5 liter) in a very small volume.

BOSTON – Hydrogen may prove to be the fuel of the future in powering the efficient, eco-friendly fuel cell vehicles of tomorrow. Developing a method to safely store, dispense and easily "refuel" the vehicle's storage material with hydrogen has baffled researchers for years. However, a new and attractive storage medium being developed by Pacific Northwest National Laboratory scientists may provide the "power of pellets" to fuel future transportation needs.

The Department of Energy's Chemical Hydrogen Storage Center of Excellence is investigating a hydrogen storage medium that holds promise in meeting long-term targets for transportation use. As part of the center, PNNL scientists are using solid ammonia borane, or AB, compressed into small pellets to serve as a hydrogen storage material. Each milliliter of AB weighs about three-quarters of a gram and harbors up to 1.8 liters of hydrogen. Researchers expect that a fuel system using small AB pellets will occupy less space and be lighter in weight than systems using pressurized hydrogen gas, thus enabling fuel cell vehicles to have room, range and performance comparable to today's automobiles.

"With this new understanding and our improved methods in working with ammonia borane," said PNNL scientist Dave Heldebrant, "we're making positive strides in developing a viable storage medium to provide reliable, environmentally friendly hydrogen power generation for future transportation needs."

PNNL scientists are learning to manipulate the release of hydrogen from AB at predictable rates. By varying temperature and manipulating AB feed rates to a reactor, researchers envision controlling the production of hydrogen and thus fuel cell power, much like a gas pedal regulates fuel to a car's combustion engine. "Once hydrogen from the storage material is depleted, the AB pellets must be safely and efficiently regenerated by way of chemical processing," said PNNL scientist Don Camaioni. "This 'refueling' method requires chemically digesting or breaking down the solid spent fuel into chemicals that can be recycled back to AB with hydrogen."

Gov't backs $97M in biofuel loans

The Associated Press August 21, 2007, 5:53PM ET

WASHINGTON

The U.S. Agriculture Department on Tuesday awarded $97 million in loan guarantees to support four biofuels projects as part of a broad push to encourage renewable energy use.

Clean Burn Fuels LLC will be loaned $35 million to build an ethanol plant in Hoke County, N.C., and Blackhawk Biofuels LLC was awarded $27.5 million for a planned biodiesel plant near Freeport, Ill.

Appling County Pellets LLC was awarded $19.5 million to produce wood pellet fuel in Appling County, Ga., and National Trail Biodiesel will be loaned $15 million to build a biodiesel production plant in Jasper County, Ill.

Current law mandates 7.5 billion gallons of renewable fuel use in the U.S. by 2012, but proposed legislation would increase the requirements to 36 billion gallons per year by 2022.

Nanotechnology boosts solar cells performance

Physicists from the University of Illinois at Urbana-Champaign (UIUC) have improved the performance of solar cells by 60 percent. And they obtained this spectacular result by using a very simple trick. They've coated the solar cells with a film of 1-nanometer thick silicon fluorescing nanoparticles. The researchers also said that this process could be easily incorporated into the manufacturing process of solar cells with very little additional cost.

This research has been led by Munir Nayfeh, Professor of Physics at UIUC. Here is a photo of Nayfeh holding a silicon solar cell coated with a film of silicon nanoparticles (Credit: L. Brian Stauffer, for UIUC). Here is a link to a larger version of this picture. And Nayfeh said that "integrating a high-quality film of silicon nanoparticles 1 nanometer in size directly onto silicon solar cells improves power performance by 60 percent in the ultraviolet range of the spectrum."

According to the physicist, "in conventional solar cells, ultraviolet light is either filtered out or absorbed by the silicon and converted into potentially damaging heat, not electricity. In previous work, however, Nayfeh showed that ultraviolet light could efficiently couple to correctly sized nanoparticles and produce electricity."

This previous work was published in the IEEE Photonics Technology Letters under the name "Thin film silicon nanoparticle UV photodetector" (Volume 16, Issue 8, Pages 1927-1929, August 2004). Here is the abstract. "We constructed ultraviolet (UV) photodetectors by room-temperature deposition of Si nanoparticle films on Si p-type substrates. Silicon nanoparticles of 1-nm diameter are dispersed from Si wafers using electrochemical etching. The current-voltage characteristics indicate a photoconductor in series with a diode-like junction with a large enhancement in the forward current under UV illumination. With increasing wavelength, the response drops rapidly, dropping to a few percent at 560 nm. These results point to a sensitive UV detector with good visible blindness where the particle films effectively constitutes a wide-bandgap material."

So how did Nayfeh improved this process in the last 3 years? "To make their improved solar cells, the researchers began by first converting bulk silicon into discrete, nano-sized particles using a patented process they developed. Depending on their size, the nanoparticles will fluoresce in distinct colors. Nanoparticles of the desired size were then dispersed in isopropyl alcohol and dispensed onto the face of the solar cell. As the alcohol evaporated, a film of closely packed nanoparticles was left firmly fastened to the solar cell."

And it really worked. "Solar cells coated with a film of 1 nanometer, blue luminescent particles showed a power enhancement of about 60 percent in the ultraviolet range of the spectrum, but less than 3 percent in the visible range, the researchers report. Solar cells coated with 2.85 nanometer, red particles showed an enhancement of about 67 percent in the ultraviolet range, and about 10 percent in the visible."

This latest research work was published in Applied Physics Letters under the name "Enhancement of polycrystalline silicon solar cells using ultrathin films of silicon nanoparticle" (Volume 91, Issue 6, Article 063107, August 6, 2007). Here is the abstract. "Ultrathin films of highly monodispersed luminescent Si nanoparticles are directly integrated on polycrystalline Si solar cells. The authors monitor the open-circuit voltage and the short circuit current. The results demonstrate that films of 1 nm blue luminescent or 2.85 nm red luminescent Si nanoparticles produce large voltage enhancements with improved power performance of 60% in the UV/blue range. In the visible, the enhancements are ~10% for the red and ~3% for the blue particles. The results point to a significant role for charge resonant transport across the nanofilm and Schottky-like rectification at nanoparticle-metal interface."

One thing puzzles me. Why did the researchers tried films with a thickness of 1 and 2.85 nanometers only? Why not 2, 4 or 6? Did they lack time? Or did they try with poor results? Please send me a note if you have the answers?

Sources: University of Illinois at Urbana-Champaign news release, August 20, 2007, 2007

Mitsubishi Corp creates firm to produce biomass pellets

Japan's largest trading company Mitsubishi Corp. earlier announced it is making major investments in three types of biofuels (that can replace diesel, gasoline and coal). Yesterday, the company brought some clarity to its plans by explaining its interests in the solid biofuels segment. Mitsibushi says it has established a manufacturing and sales firm for wood pellets in southwestern Japan.

The company, based in Hita, Oita Prefecture, plans to install facilities to manufacture pellets made mainly of cedar bark with a maximum annual output of 25,000 tons, the largest in Japan. The biofuels will be mixed with coal and co-fired in order to reduce the amount of carbon dioxide emitted by coal-burning boilers.

The new company is owned 70 percent by Mitsubishi and the rest by a local lumber mill cooperative and another firm. Forestry is the main industry of Hita. For the time being, the company will sell the waste wood-made pellets to small firms in Oita that own coal-fired boilers.

Mitsubishi is currently in negotiations to build similar production facilities in other parts of Japan and it is looking to launch the business overseas, mainly in Asia, in the future. The company hopes to attain global biofuel pellet production of one million tons in 2010:

The company will be involved in ethanol production as well, both in Japan and abroad. In one of the first few deals, Mitsubishi this month invested 300 million yen (€1.9/$2.6 million) to take a 34-percent stake in a government-backed project to build an ethanol plant with annual output of 15 million liters on the northern island of Hokkaido.

When it comes to biodiesel, the company plans to produce 1 to 1.5 million tonnes a year by 2017 after building plants in Asia or in Central and South America.

CA Treasurer: $5B Bond Measure to Boost Clean Tech

California State Treasurer Bill Lockyer suggested a proposal this weekend for what he says could be the largest investment in renewable energy technology in California state history — a $5 billion bond measure to make state government buildings more green.

He proposes the funds will be used to purchase and install solar technology, fuel cells and other renewable energy for state buildings. Lockyer says the 'Green Bonds' plan would make California government buildings carbon-neutral by 2030 and allow the state to produce roughly 1,700 MW of increased energy efficiency and renewable energy.

It's good news for the clean tech community. Lockyer says the funds will create jobs in the clean tech industry, give a boost to the state's green architecture, engineering and construction sectors, and will increase the supply of solar energy to the private sector. He says he "want[s] California's green tech industry to be the nation's leader."

Some of the details:

• Of the $5 billion, $3.5 billion would go for solar energy that would produce an estimated 450 megawatts (MW) of non-grid, renewable energy.
• There would be a $600 million investment to boost energy efficiency by 40 percent, which could produce more than $863 million in savings over 10 years.
• Another $900 million would fund fuel cell installation, biofuels and other renewable technologies, generating an estimated 150 MW of power.
• In addition Lockyer says California should run a carbon credit bank.

Eco-millionaires see boom times ahead

By Chris Wills

LONDON (Reuters) - Mankind's response to climate change will shift how the world gets its energy and is already making "green barons" out of early investors in renewable energy, clean technologies and carbon trading.

Reuters spoke to four entrepreneurs who are cashing in on the energy revolution and who say there is more money to be made.

BRUCE KHOURI, co-founder of Solar Integrated Technologies, based in Los Angeles, has at the age of 48 made $5 million by cashing in shares in the company.

He still has a $11 million stake in the company, which makes lightweight solar panels for commercial roofs. He saw the opportunity while running his own industrial roofing firm.

Q: How did you get rich?

A: "It hasn't been easy but we transformed an old-world roofing material into a renewable energy technology. It's a miracle Solar Integrated is still here but a pioneer charging across the prairie is bound to get hit by a few arrows."

As long ago as the early 1990s Khouri saw a market for flexible solar panels which could be laminated on to large roofs, such as warehouses. He did not found Solar Integrated until 2001 once tax and subsidy incentives made the market more attractive.

Q: Is 'the business of green' a bubble?

A: "No. For political reasons the United States has been behind others on green issues, but once it catches up it will be a domino effect. In 20 years they won't talk about regular roofing because it just won't exist ... there is so much rooftop real estate that is completely under-utilized.

"And 50 years from now every bit of a building that is struck by the sun will be generating power in some way."

PEDRO MOURA COSTA, co-founder of Oxford-based EcoSecurities, 44, made 4.8 million pounds ($10 million) when he sold some shares in the firm which helps convert emission cuts into tradable carbon credits. His remaining shares are worth about 37 million pounds ($73 million).

Q: How did you get rich?

A: "I saw the carbon market could be big business and the Kyoto Protocol confirmed my views. But I didn't expect it to take 10 years to come into force."

Moura Costa was working as a forester in Malaysia when he saw the potential for an international carbon credit market.

He spent the early 1990s advising on a project to plant trees in Borneo to compensate for extra carbon pollution from new power plants in the Netherlands.

Q: Is 'the business of green' a bubble?

A: "No. It's become quite obvious we do something now or it will be an irreversible trend with catastrophic consequences.

"The only chance of it being a bubble is if we lack the political commitment to drive emission reductions worldwide -- and if we do that we might as well forget about any environmental effort whatsoever because climate change is hitting us hard and the trend is likely to accelerate. I think it's very unlikely political support will go away."

DAVID SCAYSBROOK, founder of Novera Energy, a 43-year old Australian, made 3 million pounds ($6 million) when he cashed in some of his shares in the wind power and landfill gas firm he founded in 1998. He has about 3 million pounds ($6 million) worth of shares invested in Novera and carbon cutter Camco International, which he advises.

Q: How did you get rich?

A: Three things had pushed up share valuations in the wind power industry, he said.

First, people were more worried about energy security and producing energy themselves. Second, the cost of traditional energy sources such as oil and gas had gone up. Third, tax breaks, subsidies and emissions caps had prompted even more conservative investors "to finally move off their perch."

Q: Is 'the business of green' a bubble?

A: "The scale of investment to date is nothing compared to what is coming.

"The bubble aspect is ill-informed investors chasing pipe-dream technology. For example, there are hundreds of firms competing for the next generation of technology in solar panels but it won't necessarily be the best technology that wins."

NEIL ECKERT, chief executive of Climate Exchange, which runs the main European exchange for carbon trading, has shares worth about 18 million pounds ($36 million). He is also non-executive chairman of Trading Emissions and Econergy, both involved in emission-cutting projects and generating revenue from carbon credits.

Q: How did you get rich?

A: Despite the high paper value of his holdings in Climate Exchange, Eckert has yet to cash in. He already made millions selling his shares in Brit Insurance, which he set up and ran for 10 years until 2005.

Q: Is 'the business of green' a bubble?

A: "No. We have the biggest opportunity to replace fossil fuel, which has a market capitalization of hundreds of billions of pounds, but it's vital we listen to the scientific consensus and create a financial solution.

"I believe we have a chance to meet the stated mitigation targets much quicker than people think ... but it depends on whether people believe money can be made."

(Additional reporting by Gerard Wynn)