JAL flight to test camelina-jatropha-algae fuel

By Susanne Retka Schill

Web exclusive posted Dec. 17, 2008 at 10:11 a.m. CST 

Japan Airlines will use second -generation feedstocks camelina, jatropha and algae oil for a demonstration jet flight in Japan on Jan. 30. Japan Airlines announced plans Dec. 16 for the one-hour demo flight from Tokyo. A blend of 50 percent biofuel and 50 percent Jet-A (kerosene) fuel will be tested in one of four Pratt & Whitney engines in a JAL-owned Boeing 747-300 aircraft. The biofuel component will be a mixture of three second-generation feedstocks: 84 percent camelina, 16 percent jatropha and less than one percent algae. 

According to JAL's announcement, the flight will have several firsts. It will be the first biofuel demonstration by an Asian airline, the first biofuels test using Pratt & Whitney engines, the first to use camelina and the first to use a combination of three sustainable feedstocks. 

The camelina used in the JAL demo flight was sourced by Sustainable Oils Inc., a Montana-based developer of camelina-based fuels. India-based Terasol Energy sourced and provided the jatropha oil and the algae oil was provided by California-based Sapphire Energy. 

The biofuel for the JAL demo flight was processed by UOP LLC, a Honeywell company, using proprietary hydro-processing technology. The fuel was then blended with Jet-A fuel to create the 50 percent blend. The flight test is the culmination of nearly a year's work, which included laboratory testing by the Boeing Co., UOP and several independent laboratories. Pratt & Whitney, a United Technologies Corp. company, conducted ground-based jet engine performance testing of similar fuels to further establish that the biofuel blend either met or exceeded the performance criteria in place for commercial aviation jet fuel.

"Our feedstock selection was based on firm sustainability criteria designed to avoid the mistakes of preceding biofuel generations," said Boeing Biofuels Program Manager Tim Rahmes. "Working together with Japan Airlines and our other industry partners we've successfully partnered to create a next-generation, plant-derived jet fuel blend that, through extensive testing, has replacement fuel qualities that meet or exceed all of the current jet fuel specification properties." 

JAL Environmental Affairs Vice President Yasunori Abe said the flight is designed to demonstrate the fuel's performance. "The highest levels of safety will be adhered to throughout the whole biofuel demonstration flight. Prior to takeoff, we will run the No. 3 engine (middle right) using the fuel blend to confirm everything operates normally. In the air, we will check the engine's performance during normal and non-normal flight operations, which will include quick accelerations and decelerations, and engine shutdown and restart." Once the flight has been completed, data recorded on the aircraft will be analyzed by Pratt & Whitney and Boeing engineers. 

Oil Palm Growers to Purchase Less Fertiliser

Monday, November 24, 2008 8:54 PM

(Source: New Straits Times)By Ooi Tee Ching
MALAYSIA'S 200,000-odd oil palm planters, initially forecast to spend
more than RM5 billion on 3.5 million tonnes of imported fertiliser
this year, have collectively agreed to reduce purchases in the next
six months.

Oil palm plantations consume more than 75 per cent of the nation's
fertiliser imports.

"We're considering not applying fertiliser for the next six months to
cut cost if fertiliser prices do not come down. Fertiliser is still
two times more costly than at the beginning of the year," said
Malaysian Palm Oil Association (MPOA) chairman Datuk Azhar Abdul
Hamid, who is also Sime Darby Bhd executive vice-president of the
plantation and agribusiness division.

He was speaking to reporters after a meeting with Malaysian Estate
Owners Association (MEOA) president Boon Weng Siew and the Malaysian
Palm Oil Board (MPOB) chairman Datuk Sabri Ahmad.

MEOA's Boon said fertiliser importers' recent pledge to cut prices by
15 per cent is not justified.

"Fertiliser suppliers should drop prices by 50 per cent, considering
that international crude oil have come down by more than 65 per cent
from its high of US$147.47 (about RM535) per barrel in July," he said.

Also present at the press conference were Felda Holdings Bhd group
managing director Datuk Mohd Bakke Salleh, IOI Corp Bhd executive
chairman Tan Sri Lee Shin Cheng and Kuala Lumpur Kepong Bhd (KLK)
chairman Datuk Seri Lee Oi Hian.

Last year, Malaysia's oil palm planters spent RM2.6 billion on 3.4
million tonnes of imported fertilisers.

MPOB has so far collected RM500 million in cess from oil palm
planters. This money will be used to replant 200,000ha of land and
stabilise biodiesel prices when the government implements the B5
mandate effective February 2009.

Oil palm planters are also proposing to the government that national
power firm Tenaga Nasional Bhd uses palm oil feedstock for its
diesel-fuelled power plants in Sabah.

Although yesterday's sudden gathering of the oil palm associations
that included captains of the six biggest oil palm companies seemed to
reflect the seriousness of low palm oil prices, KLK's Lee said oil
palm planters and exporters are not in dire straits.

"Please do not misread this as a distress situation. At RM1,500 per
tonne, we're still profitable," he said, adding that oil palm planters
can manage production cost by lowering inputs.

He said KLK's oil palm planted area of some 170,000ha in Malaysia and
Indonesia have begun to reduce fertiliser inputs by 20 per cent.

"By using less fertiliser, we've cut back on our production cost by
about RM100 per tonne," he said.

Yesterday, the third month benchmark crude palm oil on Bursa Malaysia
Derivatives Exchange traded RM28 higher to close at RM1,488 per tonne.

Tree fungus makes ready-to-use biodiesel

by David Masters 

November 4, 2008

Researchers in the Patagonian rainforest have discovered a biofuel producing tree fungus that could radically transform worldwide energy production practices.

Gliocladium roseum is a fungus that grows inside the ulmo tree in northern Patagonia.

The fungus naturally produces a mixture of chemicals almost exactly the same as vehicle quality diesel derived from fossil fuels.

G. roseum produces the biodiesel chemical - termed 'myco diesel' - as a vapour, making it much easier to extract, purify and store than liquid counterparts.

Crops grown for biofuel usually have to be converted into sugar and fermented before they can be pumped into vehicle engines.

Scientists believe the fungus has the potential to be a major provider of green energy, as it could be used to convert cellulose plant waste directly into myco diesel.

According to lead researcher Gary Strobel from Montana state university, no other known organism on the planet does this.

According to Strobel, the mixture of chemicals in the myco diesel could run a car engine without any need for modification.

The fungus produces the myco diesel vapour as a self protective measure to kill off surrounding fungi.

Carotech secures RM200m biodiesel contract

KUALA LUMPUR: Carotech Bhd, one of the largest local producers of palm methyl ester, has inked a RM200mil contract with Trafigura Beheer BV, Amsterdam for the export of its refined and distilled palm biodiesel to the US and Europe.

Managing director David Ho expected the agreement to contribute significantly to the company's earnings and further strenghen its position as the leading supplier of palm biodiesel in the world.

"Trafigura has been our customer since 2007 and this agreement is important to us as it would take up more than 50% of our capacity and provide certainty to our operations, bankers and suppliers," he told reporters after the agreement signing ceremony yesterday.

At present, Carotech operates two production facilities in Perak which produce more than 120,000 tonnes of biodiesel per year.

Left to right : Trafigura Beheer BV, Amsterdam representative Nicolas Chiche, Deputy Minister of Plantation, Industries & Commodities YB Senator A.Kohilan Pillay and Carotech Bhd MD David Ho at the signing ceremony on Wednesday.

Under the agreement, Ipoh-based Carotech will supply Trafigura with 60,000-84,000 tonnes of its CaroDiesel biodiesel annually or 5,000-7,000 tonnes monthly, at a price based on a formula at a premium over the crude palm oil price.

The one-year contract would begin in January, said Ho.

Based in Switzerland, Trafigura is the world's third largest independent oil trader and second largest independent trader in the non-ferrous concentrates market.

In the oil sector, the company has access to over 30 million barrels of storage facilities through a combination of owned terminals under its network and long-term lease agreements with third party oil terminals.

Ho said while the biodiesel industry will face tougher challenges in 2009, its outlook was still bright with the European Parliament reaffirming binding targets of 5% for biofuels in transport by 2015 and thereafter increasing it to 10% by 2020.

"Failure to meet these interim targets for renewable energy will result in penalties," Ho said, adding that the US market for biodiesel was also growing at a rate of 25 million gallons per year in 2004 and 2005 to 450 million gallons in 2007.

No German ban on palm biodiesel

Germany has not banned imports of palm biodiesel, said Plantation Industries and Commodities Deputy Minister Senator Kohilan Pillay.

"There is no ban. Palm biodiesel can enter Germany. It is not possible to ban the import of any product as it would go against the very principles of free trade as spelled out by the World Trade Organisation," he said.

The deputy minister was speaking to reporters after witnessing the signing of a biodiesel supply agreement between Carotech Bhd and Swiss-based oil trader Tra-figura Group in Kuala Lumpur yesterday.

He said the German Government's main concern is the production of biofuels that cause the destruction of virgin jungles and the killing of wildlife. It proposes the elimination of soya and palm oils from the list of qualified biofuels for subsidy.

Kohilan said the general concern is the sustainability of biofuel sources. Bankers can be assured that biodiesel producers in Malaysia source their feedstock from oil palm estates that operate in a responsible manner.

"Banks and financial institutions should continue extending credit facilities to biodiesel producers. The industry, although in its infancy, is an increasing contributor to our economy. It is important that manufacturers have access to adequate cashflow," he said.

In view of the mandatory blending of five per cent biodiesel with 95 per cent regular diesel in government vehicles and the public transportation system from next February, biodiesel producers are in a solid position to repay bank loans, he said.

The deputy minister was responding to the growing concern of banks tightening lending to businesses perceived as risky in the light of slowing global economy.

Malaysia is ranked 24th in the World Bank's Ease of Doing Business Survey 2009 but in the sub-category of access to financing, it is ranked number one.

Earlier, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz was reported to have said total financing approved up to September this year was RM230 billion, 9.5 per cent more than the same period last year.

The central bank is in regular engagement with banks to make sure businesses, particularly small and medium enterprises, continue to have access to bank financing.

Malaysia sees 'fair' price for palm oil at RM2,000-RM2,600

THE Government will implement measures to reduce supply and increase the usage of palm oil in order to maintain the crude palm oil (CPO) prices at around RM2,000-RM2,600 per tonne. 

The measures include accelerating the replanting of oil palm trees that are more than 25 years old, increasing the usage of biofuel and developing downstream activities, said the Minister of Plantation Industries and Commodities, Datuk Peter Chin Fah Kui. 

He noted that the Government had allocated RM200 million for replanting and vehicles owned by it would start using biofuel in two to three months. 

A "fair" price for palm oil is between RM2,000 (US$562) a ton and RM2,600, he told reporters today in Putrajaya, outside Kuala Lumpur. 

CPO prices are now traded in the RM1,600 plus range per tonne. 

Malaysia, the world's second-largest palm oil producer, expects output of the edible oil next year to rise 2.9 per cent to 18 million tons. 

Chin said he expects the nation's palm oil production this year to be 17.5 million tons. - Agencie

International Energy Agency Warns of Rising Oil Prices

Posted by: Admin in Oil, Policy

The International Energy Agency recently issued a warning proclaiming that the era of cheap oil is over. It further went ahead to predict that crude oil prices would soon rebound to above $100 a barrel and double again by 2030 as fields in the North Sea and elsewhere in the world declined faster than expected.

More than $26 trillion of new investment would be needed over the next 20 years to ensure the world had enough energy, according to the IEA, which was founded during the oil crisis of 1973-74 and acts as energy policy adviser to 28 member countries including Britain.

The organization further said that while market imbalances could temporarily cause prices to fall back, it is becoming increasingly apparent that the era of cheap oil is over.

The developed world's energy watchdog has doubled up its long-term price expectation from last year's $108 a barrel for 2030. It assumes oil prices will rebound from today's $60-$70 a barrel to trade, in real terms adjusted by inflation, at an average of more than $100 from 2008 to 2015.

The summary to the IEA's annual World Energy Outlook says the rise in oil prices is for the most part because companies will battle to pump enough new oil to offset the production declines of the world's older fields. However, the organization refuses to accept that what is known as "peak oil" has yet been reached.

"The world is not running short of oil or gas just yet," it said. "The immediate risk to supply is not one of a lack of global resources, but rather a lack of investment where it is needed."

Total world oil output is not anticipated to peak before 2030, but the more easily approachable sources of crude, or conventional oil, are expected to plateau towards the end of that period. That will make the world more dependent on non-conventional sources, such as oil sands, which are hard to process, while conventional oil production will rise by only 5m barrels a day by 2030, the IEA forecasts.

The IEA has consistently said that energy resources have become concentrated in fewer hands as any increase in production is largely confined to Organization of Petroleum-Exporting Countries, the producers' cartel. Non-OPEC conventional oil output has already reached a plateau and is projected to be in fall by around the middle of the next decade.

Japan wood-gas-to-energy power plant wins award

By Anna Austin

Web exclusive posted Oct. 30, 2008 at 4:22 p.m. CST 

Japan-based Yamagata Green Power, an electricity distribution company which runs the country's most powerful wood gas-to-energy power plant, has been awarded the Asian Power magazine's Gold Award for the Best Renewable Energy Power Plant of the year. 

The two-megawatt power plant, which is fueled by gasified wood chips from local forests, is powered by two GE Energy Jenbacher gas engines, both of which have an electrical efficiency of up to 36 percent. Most of the plant's energy is sold to a power producer and supplier; the rest of the energy supports plant operations. 

This is the second consecutive year that the company's engines have received an Asian Power award. In 2007, GE Energy was recognized for its cow manure-digester biogas project in Punjab, India. 

Although GE Energy has supplied its Jenbacher engines for other types of waste gasification projects in Japan, the Yamagata project represents its first large-scale wood gas engine project in Asia. According to the company, it has also installed the engines in other wood gas plants in Europe and North America. 

The Asian Power awards, which are given annually to highlight the top power plant projects in Asia, were announced during the Power-Gen Asia 2008 conference in Kuala Lumpur, Malaysia. The award is given to projects which generate power from abundant, renewable biomass resources otherwise treated as waste, and demonstrate opportunities for future waste-to-energy initiatives.

By 2010, Japan has a goal to increase renewable energy production to three percent of the country's overall energy supply. As part of its renewable energy strategy, Japan is also seeking ways to expand its use of biomass fuel by up to 330 megawatts by 2010.

Cheaper Butanol from Biomass

A startup has raised $25 million for inexpensively producing biofuel.

Cobalt Biofuels, a startup based in Mountainview, CA, has developed a cheap way to make butanol from biomass. Last week, the company announced that it had raised $25 million to expand from a small laboratory-scale production to a pilot-scale plant that can produce about 35,000 gallons of fuel per year.

"Our models tell us it is a very low-cost process that can be competitive with anything on the market today," says Pamela Contag, the company's founder and CEO. The process is cheaper because it uses improved strains of bacteria to break down and ferment biomass, as well as improved equipment for managing fermentation and reducing water and energy consumption, she says.

Butanol could help increase the use of biofuels, since it doesn't have the same limitations as ethanol, the primary biofuel made in the United States. It has more energy than ethanol: a gallon of butanol contains about 90 percent as much energy as a gallon of gasoline, while ethanol only has about 70 percent as much. What's more, while ethanol requires special pipelines for shipping, butanol can be shipped in unmodified gasoline pipelines. And butanol can be blended with gasoline in higher percentages than ethanol without requiring modifications to engines.

Cobalt Biofuels joins a handful of other companies developing biobutanol. The biggest such effort comes in the form of a partnership between DuPont and BP: the companies plan to be selling commercial quantities of butanol made from sugar beets by 2010. Other companies developing biobutanol are Gevo, a startup based in Englewood, CO, that is commercializingadvances from UCLA, and Tetravitae, based in Chicago, which is commercializing advances from the University of Illinois. In spite of their progress, Andy Aden, a research scientist at the National Renewable Energy Laboratory, in Golden, CO, says that no company has demonstrated yet that it can make butanol cheap enough to compete in the market.

Cobalt Biofuels uses the bacteria Clostridium to break down components of plant matter, including cellulose, hemicellulose, and starch, and produce a combination of butanol, acetone, and ethanol. That is nothing new: Clostridium naturally produces these chemicals and was employed in the early 1900s to make butanol for use in solvents and to make acetone for explosives and other products. What's new, Contag says, is that a combination of fuel prices, government biofuel mandates, and the company's new technology have made butanol competitive as a fuel.

One of Cobalt Biofuels' key advances is a technique for genetically engineering strains ofClostridium so that they produce a luminescent protein whenever they produce butanol. "When the Clostridium are happy and producing butanol, they're also producing light," Contag says. When they're paired with light detectors, the company can quickly sort through new strains of the bacteria, as well as tailor their environment, to increase production. The company has further increased butanol production by engineering a bioreactor in which biomass flows in, the bacteria processes it, and a mixture of primarily butanol and water flows out.

While increasing the amount of butanol produced can decrease costs, two other factors are also important: the consumption of energy, and the consumption of water. Cobalt Biofuels has reduced both of these by 75 percent. To reduce energy, the company has licensed a new technology, called vapor compression distillation, for separating the butanol and water. The addition of pressure to the distillation process, together with the use of an effective heat exchanger that reduces wasted heat, lowers energy consumption. To reduce water use, the company has turned to proprietary water purification and recycling systems.

Eventually, the company plans to produce butanol using waste from paper manufacturing and sugar refining, as well as other sources, and then sell it as a fuel additive for reducing carbon monoxide emissions. As Cobalt Biofuels scales up production, it plans to sell the butanol as a substitute for gasoline.

Cheaper to invest in SE Asian businesses: CIMB

IT is less expensive to acquire equities or put in money in Southeast Asia (SEA) businesses, according to a private equity and venture capital management company.

"Investors are also now looking at SEA with some interest because they find the fundamental still there. There is growth and the demographic is positive," said the head of CIMB Private Equity and Venture Capital, Darawati Hussain.

She said investors are also finding China, Vietnam and India to be quite expensive to deploy their funds, "so there is some interest in looking at investment opportunities in other countries in this region, including Malaysia." 

"Sometimes when you compare the pricing that you have to pay to get a stake in some of the businesses (in the three countries), it is a lot higher than you usually have to pay to get equity in SEAs businesses," she said.

Speaking to reporters on the sidelines of the Asian Venture Capital Journal Private Equity & Venture Forum, Darawati noted that there are challenges to Malaysian entrepreneurs and businesses in trying to compete in the global stage.

"They have the challenge now because they may not be big and they cannot go to the bank to get further lending as their asset base is quite low.

"So private equity and venture capital are very important to businesses which are trying to grow their businesses," she said.

Nevertheless, she said Malaysia has a lot of funding, made available from the government, close to RM2 billion to invest in early stage and growth stage companies.

"In Malaysia, the (private equity and venture capital) industry is still quite small. As we are trying to develop more and more local firms to support and provide funding to local businesses, the government has been very instrumental in providing funding as well." 

CIMB Private Equity & Venture Capital is a subsidiary of CIMB Group, with US$400 million funds under management, primarily third party funds. — Bernama

Palm oil falls to almost 2-year low

PALM oil declined to the lowest in almost two years as crude oil fell for a second day on concern that a US government plan to invest US$250 billion in banks won't be enough to spur economic growth.

Palm oil, used mainly for cooking, tracks crude as analysts consider it viable as biofuels when oil trades above US$80 a barrel. Crude declined 0.8 per cent to US$78 a barrel in after-hours trading on the New York Mercantile Exchange at 11.42 am Singapore time.

Palm oil for December delivery dropped as much as 6 per cent to RM1,738 (US$495) a metric ton EXW on the Malaysian Derivatives Exchange and traded at RM1,752 at 11.50 am local time. Futures have plunged 61 per cent from a record in March.

"If crude oil slides to US$60 a barrel, crude palm oil would average RM2,220," said Ben Santoso, a plantation analyst at DBSVickers Securities Singapore.

Palm oil exports from Malaysia, the largest producer after Indonesia, fell 9.1 per cent to 560,210 tons in the first 15 days of October compared with the same period in September, Intertek, an independent surveyor, said today. Exports fell 12 per cent in September to 1.29 million tons, the first drop in three months, the Malaysian Palm Oil Board said October 10.

Indonesia and Malaysia, which account for 90 per cent of the world's palm oil production, this week proposed export measures to reduce inventory to support prices. Both countries, which are oil producers, also passed measures to introduce biofuels for domestic use to absorb surpluses.

Palm oil for January delivery in Dalian dropped the daily limit of 5 per cent to 5,034 yuan (US$784) a ton. - Bloomberg

Profit in the Canada Biofuel Industry

Canada Biofuels Market Potential
View Report Details

Biofuel is any fuel that is derived from biomass - recently living organisms or their metabolic byproducts, such as manure from cows. It is a renewable energy source, unlike other natural resources such as petroleum, coal, and nuclear fuels. 

Ethanol is manufactured from microbial conversion of biomass materials through fermentation. Ethanol contains 35% oxygen. The production process consists of conversion of biomass to fermentable sugars, fermentation of sugars to ethanol, and the separation and purification of the ethanol. Fermentation initially produces ethanol containing a substantial amount of water. Distillation removes the majority of water to yield about 95% purity ethanol, the balance being water. This mixture is called hydrous ethanol. If the remaining water is removed in a further process, the ethanol is called anhydrous ethanol and is suitable for blending into gasoline. Ethanol is "denatured" prior to leaving the plant to make it unfit for human consumption by addition of a small amount of products such as gasoline. 

Biodiesel fuels are oxygenated organic compounds - methyl or ethyl esters - derived from 
a variety of renewable sources such as vegetable oil, animal fat, and cooking oil. The oxygen contained in biodiesel makes it unstable and requires stabilization to avoid storage problems. Rapeseed methyl ester (RME) diesel, derived from rapeseed oil, is the most common biodiesel fuel available in Europe. In the United States, biodiesel from soybean oil, called soy methyl ester diesel, is the most common biodiesel. Collectively, these fuels are referred to as fatty acid methyl esters (FAME). 

Biofuels have become a growth industry with worldwide production more than doubling in the last five years. The rapid expansion of ethanol production in the United States and biodiesel production (and to a lesser extent, biogas) in Germany and other countries in Western Europe has created a biofuels frenzy that has affected many countries, including Canada. Many measures have been used to stimulate production and consumption of biofuels, including preferential taxation, subsidies, import tariffs and consumption mandates. Recently, Canadian federal and provincial governments have announced consumption mandates and subsidies to assist rapid expansion of biofuel production in Canada. 

Canada has considerable natural resources and is one of the world's largest producers and 
exporters of energy. In 2006, Canada produced 21.1 quadrillion British Thermal Units (Btu) of total energy, the fifth largest amount in the world. Since 1980, Canada's total energy production has increased by 86%, while its total energy consumption has increased by only 48% during that period. Almost all of Canada's energy exports go to the United States, making it the largest foreign source of U.S. energy imports: Canada is consistently among the top sources for U.S. oil imports, and it is the largest source of U.S. natural gas and electricity imports. Recognizing the importance of the energy trade between the two countries, both participate in the North American Energy Working Group, which seeks to improve energy integration and cooperation between Canada, the U.S., and Mexico. 

The report Biofuel Industry in Canada is a complete coverage of the ethanol and biodiesel 
market in the country. 

GET YOUR COPY NOW: Download PDF 

Palm oil for public transport vehicles to shore up prices

NST Online » Local News
2008/10/14

PETALING JAYA: All diesel-powered public transport vehicles may have to use five per cent blend of biodiesel (B5) to help shore up palm oil prices.

Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui said this would be decided by the Cabinet Committee on Competitiveness of Palm Oil on Oct 21.

His ministry is pushing for a B5 mandate where five per cent of domestic diesel consumption will be replaced by palm-biodiesel. 

"If the B5 blend proposal is approved, it would create new demand for about 500,000 tonnes of palm oil per year," Chin said after officiating the International Rubber Research & Development Board's Natural Rubber Conference 2008 here yesterday. 

In the last seven months, palm oil prices have plunged by 60 per cent to current levels of around RM1,800 per tonne. 
Oil palm planters have been appealing to the government to take measures to shore up prices. 

Rising fertiliser cost in the last two years have raised oil palm planters' production cost to between RM1,000 and RM1,500 per tonne, depending on the maturity of the trees. 

If palm oil prices were to fall to RM1,500 per tonne, some oil palm planters may find it no longer profitable to harvest the palm fruits. 

The cabinet has to decide who will bear the extra cost if crude palm oil becomes more expensive than diesel. 

Ministry officials said oil companies would be briefed if they had to bear the cost of blending palm biodiesel into regular diesel at their depots. 

Addressing the Federation of Hakka Associations of Malaysia's annual general meeting in Ipoh on Sunday, Chin said Indonesia was already successfully using biodiesel.

"We have to act fast, especially since crude palm oil prices have been hovering at about RM1,800 per tonne lately. Our neighbour produces a much greater volume of crude palm oil but they are able to absorb it locally.

"We, however, depend on exports so when there's an oversupply and limited takers, we could end up with a greater margin of losses than Indonesia."

Chin said Indonesia had begun mixing three per cent methyl ester with every litre of diesel for industrial purposes from Oct 1.

"Jakarta has already implemented the mixture in the transportation sector and it is only a matter of time before it is used in all 17,000-odd islands while we could be left behind."

In another move to reduce the current oversupply of palm oil, the government has decided to raise the annual export quota of tax-free crude palm oil (CPO) to three million tonnes from 1.5 million tonnes. 

This means big palm oil companies such as Felda Group, Sime Darby Bhd, IOI Corp Bhd, Kuala Lumpur Kepong Bhd, United Plantations Bhd, Kulim Bhd and Kwantas Bhd, which have refineries outside Malaysia, can ship out more crude palm oil without being taxed. 

The government controls outflow of crude palm oil by imposing heavy tax to encourage local refining. 

"We are also stepping up efforts to get oil palm planters to chop down unproductive trees and replant with higher yielding seedlings," Chin said. 

"With these three measures (biodiesel mandate, increasing the CPO export quota and replanting), we aim to reduce stock levels to 1.5 million tonnes." 

Malaysia and Indonesia produce almost 90 per cent of the world's supply of palm oil.

RM1.5b fund for ICT, biotech

MALAYSIA Debt Ventures Bhd (MDV), a wholly-owned unit of Minister of Finance Inc, has launched its RM1.5 billion Second Fund, of which RM1 billion will be for information and communication technology (ICT) and the rest for biotechnology.

Managing director / chief executive officer Md Zubir Ansori Yahaya said the second fund would be sourced domestically and raised via a RM1.5 billion Islamic Medium-Term Notes programme.

"This is a 15-year programme and we are dividing it into two issuances. The first is for RM500 million, which we have already got the money last month," he told reporters after the launch of the fund today.

The launch was witnessed by Deputy Finance Minister Datuk Kong Cho Ha who represented Second Finance Minister Tan Sri Nor Mohamed Yakcop. Also present was CIMB Group's chief executive officer Datuk Seri Nazir Razak.

CIMB Investment Bank Bhd is the lead arranger and syariah adviser. Bank Islam Malaysia Bhd and RHB Investment Bank Bhd are the joint lead-managers.

Md Zubir said the average cost of fund was 4.9 per cent.

He, however, declined to disclose if the same cost would be applicable for the remaining fund.

MDV expects the first tranche to be used up by September 2009.

"MDV has not seen much reduction in our list despite the global slowdown. I think with the credit crunch, more and more customers are expected to come to MDV for loans as we offer flexibility in the loans applications and payments," he said.

Md Zubir said the issuance of the rest of the RM1 billion would depend on the demand and market conditions.

"The latest fund will be an alternative to the existing conventional financing — syariah-compliant financing programme.

"The fund will be used to create new and suitable Islamic products and services to add variety and choice for our customers. It is expected to enhance MDV's revenue channels and flow," he said. — Bernama

Wood fiber supplies increase, prices decrease

By Ron Kotrba

Web exclusive posted Oct. 8, 2008 at 9:58 a.m. CST 

After a 13-year record high in wood fiber costs for western U.S. pulp mills just last quarter, prices retreated significantly in the third quarter of 2008 as supplies grew, said Hakan Ekstrom, president and owner of Wood Resources International, which publishes North American Wood Fiber Review. Despite the 13 percent retreat in prices between the second and third quarters, Ekstrom said those prices in the West are still 25 percent higher than they were a year ago. 

"Prices started to move up first quarter this year substantially," Ekstrom told. "This was mainly because the pulp mills out here [in the West] were running out of chips – the inventory situation was pretty tough for them – and the saw mills started cutting back production so they delivered less residual chips to the pulp mills. So they were fighting for those volumes and in some cases they had to go further for those volumes, which increased transport costs." 

For the most part, the biomass-to-energy sector has had minimal influence on wood supply and pricing, but Ekstrom said moving forward that is likely going to change. "More wood is going in that sector," he said. "The marginal volumes going into the energy sector with be competing with oriented Strand board (OSB) plants, pulp mills and the like, and is increasingly going to be an issue."

The aftermath of this year's intense hurricane season also had an effect on raw material wood supplies to saw and pulp mills in the southern United States. The season's winds and rains put a damper on logging and transport activity during the third quarter – a time when mills generally try to build up winter supplies. 

"So far it's been too wet to haul," Ekstrom said. "Between now and through next month they need the weather to be good to try and catch up. A lot depends on the weather." If the weather doesn't cooperate, prices next spring may be higher as a result, Ekstrom said. 

The Northeast continues to see record-high hardwood prices – an astounding 45 percent higher than one year ago – as a shortage of loggers and increasing competition for hardwood drive prices up. 

Palm oil futures fall 8.5pc

JAKARTA: Malaysian crude palm oil futures fell as much as 8.5 per cent today as falling crude oil dimmed prospects for the vegetable oil for alternative energy and amid concerns about slowing demand due to a global economic meltdown.

The benchmark December contract on the Bursa Malaysia Derivatives Exchange stood at RM1,759 (US$500) per tonne at 0328 GMT after previously falling RM161, or 8.5 per cent, to RM1,729 (US$493) a tonne, a level unseen since November 15, 2006.

"Crude oil fell sharply which raised concern that biofuel may no longer be competitive," said a dealer in a local brokerage firm, adding the market expected crude oil could fall to US$80 a barrel soon.

Oil prices tumbled by more than US$4 a barrel today, extending losses to fresh one-year lows below US$83, as traders feared the credit crisis would send the global economy into recession and hurt fuel demand. 

Crude for November delivery was down US$4.26 at US$82.33 a barrel by 0227 GMT, having earlier fallen to US$82.10 a barrel.

US grains fell sharply in early Asian trading today, led by a more than 4 per cent drop in soybeans, also adding to pressure on palm.

Chicago Board of Trade November soybeans fell 4.7 per cent to US$9.33-3/.4 per bushel by 0404 GMT. 

Malaysian crude palm oil stocks rose 5.5 per cent in September to 1,949,498 tonnes from a revised 1,848,130 tonnes in August, official crop agency Malaysian Palm Oil Board said today.

A Reuters poll had forecast palm oil stocks to climb 9.3 per cent in September from a month earlier. 

Cargo surveyors Societe Generale de Surveillance and Intertek Testing Services will report October 1-10 export data on the same day. - Reuters

BioCentric Energy to produce algae oil in China

By Erin Voegele

Web exclusive posted Oct. 7, 2008 at 2:00 p.m. CST 

BioCentric Energy Algae LLC, a subsidiary of California-based BioCentric Energy Inc., is developing an algae oil project in the Guangdong Providence of China. 

According to Dennis Fisher, president and chief executive officer of BioCentric Energy, the Chinese government has granted the company 50 hectares (110 acres) of land adjacent to an industrial site in Wahan, China. 

The industrial site emits 40,000 metric tons of carbon dioxide annually through its smokestack. BioCentric Energy will capture the carbon dioxide and feed it to an algae solution contained within 6.5 miles of 25 inch pipe. The piping system will be constructed in pod formation, with each pod containing 480 feet of pipe. Fisher anticipates BioCentric Energy will have 40 pods producing oil by June 2009. Once complete, the facility is expected to generate approximately 80 tons of algae biomass per day. 

Fisher said the algae utilized by the project will generate approximately 47 percent oil, which will be extracted and sold to biodiesel producers. The remaining algae biomass will be converted into biogas used to fuel microturbines and produce electricity. Engineering on the project has already begun. Construction of the facility is expected to begin in December. 

U.S. could become largest biodiesel market by 2012

By Erin Voegele

Web exclusive posted Oct. 8, 2008 at 9:44 a.m. CST 

California-based SRI Consulting, a business research service for the global chemical industry, released its global 2008 Biodiesel report on Sept. 30. According to the report, the United States is currently positioned to become the largest biodiesel market in the world by 2012, consuming nearly 19 percent of the world's biodiesel supply. Additionally, the report states that the global biodiesel industry grew 50 percent between 2002 and 2007, and is positioned to grow 30 percent between 2007 and 2012. 

SRI's biodiesel report is designed to provide comprehensive timely information on the biodiesel industry and global industry trends. According to SRI spokeswoman Susan Wright, the report is typically updated every three years. However, due to the proliferation of changes in the marketplace, this update has been issued after only two years. 

The report projects a slower rate of growth for the industry over the next several years due to several factors, including the fuel versus food debate and the rising costs of feedstocks. Changing regulatory environments, the slowdown of the global economy and the current financial crisis are also expected to contribute to a slower growth rate.

The report also demonstrated a shift in global biodiesel patterns. Five years ago Europe was the dominant player, with 83 percent of the capacity. By 2007, the European share had dropped to approximately 46 percent as North American and Asian production grew. In addition, the report covers the supply and demand of biodiesel in North America, Central and South America, Europe, Asia, Africa, the Middle East and Oceania. It also provides in-depth coverage on supply and demand, legislation, feedstock production technologies, as well as environmental and agricultural issues for more than 75 countries. The report detailed 19 years of historical data and five years of projected supply and demand figures on a country by country basis. 

Mitsubishi expands wood pellet holdings

By Ryan C. Christiansen

Web exclusive posted Sept. 26, 2008 at 10:32 a.m. CST

Mitsubishi Corp., Japan's largest general trading company with offices in 80 countries, has acquired a 45 percent stake in Vis Nova Trading GmbH, a manufacturer in Bremen, Germany, that produces wood pellets from waste wood. Mitsubishi invested $8.2 million in VNT and intends to be actively involved in the company's management, Mitsubishi said.

VNT owns and operates a manufacturing facility and several distribution facilities in Germany. The company supplies 180,000 metric tons of wood pellets per year to electric power companies in the European Union. According to Mitsubishi, VNT plans to build additional factories and achieve 500,000 metric tons in wood pellet sales by 2010.

In addition to VNT, Mitsubishi has established two 25,000-ton wood pellet manufacturers in Japan, including Forest Energy HITA Co. Ltd. and Forest Energy Kadogawa Co. Ltd. The company said that the wood pellet industry has grown at a rate of 20 percent over the last few years and demand for wood pellets is expected to increase from the current six million metric tons per year to over 40 million metric tons by 2020. Mitsubishi plans to set up manufacturing plants in North America, South America, and Asia.

U.S. Senate extends renewable energy tax credits

By Erin Voegele

Web exclusive posted Sept. 24, 2008 at 11:47 a.m. CST

On Sept. 23, the U.S. Senate passed the Renewable Energy and Job Creation Act of 2008 by a vote of 93 to 2. If passed by the U.S House of Representatives and signed into law, the legislation could have a positive impact on the renewable fuels industry.

The bill includes an increase and extension through 2009 of income and excise credits for biodiesel and renewable diesel. It would also disqualify foreign-produced fuel that is used or sold for use outside the United States from claiming the credits available for alcohol, biodiesel, renewable diesel, and alternative fuel production. The provision is intended to eliminate abuse by companies that produce foreign fuel which enters the United States and receives the tax incentive, and is shipped to a third country for use.

"The American Soybean Association greatly appreciates the work of the Senate to extend the biodiesel tax credit," said John Hoffman, president of the American Soybean Association. "Passage of this legislation to extend the biodiesel tax credit enhances the viability of the U.S. biodiesel industry, which is an important market for U.S. soybean farmers. ASA now urges House members to swiftly pass the measure and send it to the President to be signed into law."

he legislation also impacts the biomass and ethanol industries. It would extend tax credits for producing electricity from closed- and open-looped biomass, geothermal or solar energy, small irrigation power, municipal solid waste, trash combustion, and qualified hydropower until 2011. Furthermore, it would expand the definitions of rules for open-loop biomass facilities, qualified trash combustion facilities, and non-hydroelectric dams for purposes of such credit. Cellulosic biofuel would also be included within the definition of biomass ethanol plant property for the purposes of bonus depreciation.

The legislation now moves to the U.S. House of Representatives for consideration. "Everyone should understand we have had a very difficult time getting to the point where we are and passing this final version of this bill," said U.S. Senate Majority Leader Harry Reid. "If the House doesn't pass this, the full responsibility of this not passing is theirs, not ours."

Ushering in the Era of Green Airports

The Boston Logan International Airport has its own fleet of small wind turbines, looking across the business district horizon across the grand harbor as commercial jets descend overhead. Each 6-foot-tall turbine, based at the edge of the rooftop of the airport's main office, is appended at a specific angle to capture the winds that blow through Boston Harbor.

The 20 turbines, established in July 2008, are anticipated to yield about 100,000 kilowatt-hours yearly, adequate to 3% of the building's energy requirements.

Logan's turbines are one of the most obvious examples of the environmentally friendly initiatives being adopted by leading U.S. airports. From low-flush toilets and hybrid cabs to solar arrays and recycled coffee grounds, some of the biggest aerodromes are aggressively carrying out green measures to economize on energy prices and to yield encouraging impressions among travelers.

Airports have always had to comply with certain environmental regulations arising out of their operations, as local governments require impact studies on new construction projects and soundproofing nearby homes. Landings and takeoffs, as well as the diesel shuttles that circle the terminal roads, leave thousands of tons of toxic emissions in a compact area of the city. And for years, many airports have been slow to adopt measures that go beyond the minimum requirements.

U.S. airlines emitted about 418 billion pounds of carbon dioxide in 2007, according to the Air Transport Association, the airline industry trade group.

Airports have been spending hundreds of millions in terminal facilities that are esthetically pleasing but are not configured to conserve energy. Because of the perilous situation in airlines, airports call for quick return on investment funds. Occasionally the return on investment on these (environmental) projects is not adequate enough for the airport.

However, similar to many other industries, airports are fast adopting the green zeitgeist, led partly by better social consciousness and ameliorating engineering science, and made more pressing by ascending fuel costs.

However, this green revolution is nothing new as some green efforts have been around for ages. Some examples of these include, on-site compressed natural gas fueling stations, glass walls for increasing the amount of natural light, electrical connections at aircraft gates, lower-wattage bulbs, recycled building materials and water-conserving vegetation are standard environmental practices at many airports.

The more reformist airports are eagerly accepting other experimental and groundbreaking green projects. Some projects, such as switching to more effective light bulbs, call for little or no investment funds. Others - such as efficient HVAC systems and installing electrification systems at gates - are costly projects that are funded with their own operations budgets, government grants or as part of new construction costs.

Many airports are also utilizing the large plots they have available for experimenting with alternative energy. For example, the Denver International and Fresno Yosemite recently installed solar panels in hopes of generating enough energy to save on their electricity bills.

In the case of Denver, the 9,200 panels installed, each equipped with sensors and measuring 3 feet by 5 feet, will be generating around three million kilowatt hours of electricity a year, the equivalent of about half the energy used to run the airport's people-mover rail system.

Furthermore, the airport did not even to pay for the $15 million cost, as its land contribution entitled it to energy credits with a local utility company.

Fresno Yosemite's 11,700 solar panels, installed in July 2008, could provide up to 40% of the airport facilities' daily electrical needs, the airport says.

Some green measures require little capital investment and are aimed more at changing business practices. Seattle-Tacoma, the home airport for Starbucks' headquarters, requires all coffee grounds served by concessions, about 143 tons a year, to be recycled and trucked to a local facility for composting.

The airport also will install garbage and recycling compactors later in the fall and will begin weighing trash and charging concessionaires by the pound for removal. The airport will not charge for hauling recycled waste.

Green practices are also seeping into the airfield. Boston Logan will be the first U.S. airport to reduce toxic emissions by using runway asphalt heated at a lower temperature - 250 to 275 degrees, up to 75 degrees lower than is required for traditional "hot mix" asphalt.

Cabinet approves the National Policy on Biofuel

9/13/2008

Shri Vilas Muttewar, Minister for New and Renewable Energy said the
Cabinet approval to the National Policy on Bio-Fuel will post and
direction to the development of bio-fuels in India. The Union Cabinet
gave its approval to the National Policy on Biofuel along with setting
up of an empowered National Biofuel Coordination Committee, headed by
the Prime Minister and a Biofuel Steering Committee headed by Cabinet
Secretary. Under the approved policy, the country aims to raise
blending of bio fuels with petrol and diesel to 20% by the year 2017.

The National Biofuel Policy was steered by the Ministry of New and
Renewable Energy. A proposal on "National Policy on Biofuels & its
Implementation" was prepared after wide scale consultations and
inter-Ministerial deliberations. The draft Policy was considered by a
Group of Ministers (GoM) under the Chairmanship of Shri Sharad Pawar,
Minister of Agriculture, Food & Public Distribution. More than seven
Ministries and Planning commission had been debating on the bio fuel
policy since last two years. The Agricultural Minister had been
anchoring the discussions prior to finalization of policy. After
considering the suggestions of Planning Commission and other Members,
the Group of Ministers recommended the National Biofuel Policy to the
Cabinet.

Salient features of the National Biofuel Policy are:

• An indicative target of 20% by 2017 for the blending of biofuels –
bio-ethanol and bio-diesel has been proposed.

• Bio-diesel production will be taken up from non-edible oil seeds in
waste / degraded / marginal lands.

• The focus would be on indigenous production of bio-diesel feedstock
and import of Free Fatty Acid (FFA) based such as oil, palm etc. would
not be permitted.

• Bio-diesel plantations on community / Government / forest waste
lands would be encouraged while plantation in fertile irrigated lands
would not be encouraged.

• Minimum Support Price (MSP) with the provision of periodic revision
for bio-diesel oil seeds would be announced to provide fair price to
the growers. The details about the MSP mechanism, enshrined in the
National Biofuel Policy, would be worked out carefully subsequently
and considered by the Bio-fuel Steering Committee.

• Minimum Purchase Price (MPP) for the purchase of bio-ethanol by the
Oil Marketing Companies (OMCs) would be based on the actual cost of
production and import price of bio-ethanol. In case of bio-diesel, the
MPP should be linked to the prevailing retail diesel price.

• The National Biofuel Policy envisages that bio-fuels, namely,
bio-diesel and bio-ethanol may be brought under the ambit of "Declared
Goods" by the Government to ensure unrestricted movement of bio-fuels
within and outside the States.

• It is also stated in the Policy that no taxes and duties should be
levied on bio-diesel.

• The National Biofuel Coordination Committee to be chaired by the
Prime Minister would have the following Members:

1. Deputy Chairman, Planning Commission
2. Minister of New and Renewable Energy
3. Minister of Rural Development
4. Minister of Agriculture
5. Minister of Environment and Forest
6. Minister of Petroleum and Natural Gas
7. Minister of Science and Technology
8. Secretary, Ministry of New and Renewable Energy would be the Convener.

• The Bio-fuel Steering Committee to be chaired by Cabinet Secretary
would have the following members:

1. Secretary, Ministry of Finance
2. Secretary, Ministry of Rural Development, Dept of Land Resources
3. Secretary, Dept. of Agricultural Research & Education
4. Secretary, Ministry of Environment and Forest
5. Secretary, Ministry of Petroleum and Natural Gas
6. Secretary, Deptt. of Science and Technology
7. Secretary, Ministry of Panchayati Raj
8. Secretary, Dept. of Biotechnology
9. Secretary, Planning Commission
10. Secretary, Dept. of Scientific Industrial Research
11.Secretary, Ministry of New and Renewable Energy would be the Member
Secretary.

• In regard to research in bio-fuels, a Sub-Committee under the
Steering Committee would be constituted led by the Department of
Biotechnology, Ministries of Agriculture & Rural Development and
coordinated by the Ministry of New and Renewable Energy.

• Major thrust to be given to Research, Development & Demonstration
with focus on plantations, processing and production technologies
including second generation cellulosic biofuels.

Commodities Roundup: CPO futures fall on weak export data CPO FUTURES

JAKARTA: Malaysian crude palm oil futures dropped more than 1 per cent yesterday following news of a fall in exports during the first 10 days of this month, dealers said.

Prices rose as much as 1.8 per cent following the release of a fall in August palm oil stock figures by the Malaysian Palm Oil Board, but turned lower after the announcement of a fall in exports in the first 10 days of this month.

Cargo surveyor Societe Generale de Surveillance said exports of Malaysian palm oil products for September 1-10 fell 2.3 per cent to 392,467 tonnes from 401,800 shipped between August 1 and 10.

Earlier in the day, official crop agency Malaysian Palm Oil Board (MOPD) said Malaysian crude palm oil stocks fell 6.5 per cent to 1,848,130 tonnes in August, from a revised 1,977,397 tonnes in July.

A Reuters poll had forecast palm oil stocks to rise 1.2 per cent in August from a month earlier.

The lower-than-expected stocks triggered a rebound in palm futures, but it was short-lived.

The price of palm oil, used in products from soaps to biodiesel, has dropped 23.64 per cent since the start of the year, due to faltering crude oil and concerns about high stocks.

The benchmark November crude palm oil contract on the Bursa Malaysia Derivatives Exchange ended down RM25, or 1.06 per cent, at RM2,329 (US$673) a tonne. The overall volume was 13,242 lots of 25 tonnes each.

"The rally after the MPOB report could not be sustained toward the closing. It seems that RM2,400 is the resistance level," a trader at a local brokerage said.

The trader said concerns about weak global demand resurfaced after data showed a decline in exports in the first 10 days.

"The data is not good. It sparks fears of defaults," he said. The trader said palm prices may test RM2,300 soon.

Industry analyst Drab Mistry said yesterday that palm futures are likely to ease to RM2,200 per tonne as surging production and weak demand weigh on the market.

In the physical market, crude palm oil for September delivery was at RM2,380/RM2,420 a tonne in south and central Malaysia. No trades were done in either region.

US crude for October delivery was up 23 cents at US$103.49 a barrel at 1101MGT in electronic trading.

Most active December soybean oil contracts at the Chicago Board of Trade declined 0.31 cents to 48.50 cents per lb during Asian trade on yesterday.

RUBBER

MALAYSIAN rubber prices closed higher for the third straight day yesterday, influenced by supply concerns, a dealer said.

He said the tight supply in major producing countries due to wet weather conditions had encouraged the market.

However, the dealer said the market maintained its quiet mode due to lack of transactions.

At noon yesterday, the Malaysian Rubber Board official physical price for tyre-grade SMR 20 added 2.5 sen to 960.5 sen per kg from 958 sen per kg yesterday and latex in bulk increased seven sen to 635 sen per kg from 628 sen per kg previously.

The unofficial sellers' closing price for tyre-grade SMR 20 rose six sen to 964 sen per kg from 958 sen per kg previously while latex in bulk went up 5.5 sen to 638.5 sen per kg from 633 sen per kg previously.

TIN

THE Kuala Lumpur Tin Market (KLTM) closed easier yesterday with the price down US$550 to US$18,500 per tonne on lack of demand and lower tin price on the London Metal Exchange (LME) overnight, dealers said.

LME tin price fell by US$625 to US$18,500 per tonne.

On the local front, bids accounted for 35 tonnes compared with offers at 101 tonnes.

Turnover fell to 64 tonnes from 70 tonnes on Tuesday with interests from Japanese, European and local traders.

The price differential between the KLTM and the LME increased to a premium of US$390 per tonne from US$265 per tonne previously. — Agencies

Solar Energy can bring clean energy to over 4 billion people by 2030

Solar electricity can contribute largely to the energy needs of two-thirds of the world's population - including those in remote areas - by 2030. This is the main conclusion of the Solar Generation report, published by Greenpeace and the European Photovoltaic Industry Association (EPIA) today. (1/9/2008)

"Solar photovoltaic electricity has the potential to supply energy to over 4 billion people by 2030 if adequate policy measures are put in place today," said Ernesto Macias, EPIA President, as the report was presented at a major conference on photovoltaic (PV) energy in Spain.  

Now in its fifth edition, Solar Generation confirms the impressive growth of the solar energy sector and demonstrates its potential of becoming a global energy contributor. By 2030, it estimates that over 1800 GW of photovoltaic systems will have been installed worldwide. This represents over 2600 TWh of electricity produced per year, or 14% of global electricity demand. This is enough power to supply over 1.3 billion people in developed areas and over 3 billion people in remote rural areas who currently have no access to mains electricity.   

"Solar electricity could help cut up to 1.6 billion tonnes of CO2 emissions by 2030, equivalent to the emissions of 450 coal-fired power plants," said Sven Teske, energy expert from Greenpeace International and co-author of the study. "Tackling climate change requires a revolution in the way we produce and use energy – solar is a major part of this solution." 

The Solar Generation scenario also shows how solar electricity will contribute towards creating green-collar jobs. Currently, almost 120,000 people are employed in this sector; most of the jobs - involving the installation, maintenance and sale of PV systems - are created locally and boost local economies. In 2020, over 2 million people are expected to be working in the sector. By 2030, employment in the sector could account for almost 10 million people worldwide.  

Today, the majority of installed PV systems benefit from well-designed grant support, in particular the feed-in tariff mechanism. This provides fair remuneration to the investor, and rewards the effort made in investing in a clean energy source. Solar energy is becoming more economically viable and should become cost-competitive with conventional energy by 2015 in southern European countries and by 2020 across most of Europe.  

The future renewable energy sources Directive at EU level is expected to reinforce the current legal framework and could facilitate the implementation of the feed-in tariff scheme throughout Europe. "The ball is now in the hands of European decision-makers who can take the opportunity this new Directive presents to show Europe's leadership in the development of renewable energy sources," Macias concluded.

E.ON plans US$164m biomass plant in Bristol

Plans are in the works to construct a 150MW plant at the port of Bristol as part of E.ON's investment program in a range of power generating technologies.

The company recently came under fire for planning to build Great Britain's first new coal-fired power plant since well over 20 years. It also wants to expand nuclear capacity by adding at least two nuclear power stations. Now, E.ON intends to establish one of the country's largest biomass facilities. The plant would be located on the Royal Portbury Dock in Bristol's port and would be E.ON's third biomass facility in the UK.

 

Paul Golby, CEO of E.ON UK, opined that it can make a significant contribution towards the British government's renewable energy targets. "Schemes such as this, together with cleaner coal, gas and new nuclear, will help us to keep the UK's lights on, while reducing carbon emissions and ensuring energy is as affordable as possible for our customers," he said.

 

E.ON's investment program in Britain includes one of the world's largest gas-fired power stations, at the Isle of Grain in Kent, as well as the gas-fired plant at Drakelow in Derbyshire; an offshore wind farm in the Solway Firth and plans for the Humber Gateway wind farm. It is also a partner in the London Array wind farm and has invested in marine energy projects in Cornwall and Pembrokeshire.

 

According to the company, the proposed Bristol biomass power plant would provide enough electricity for 250,000 homes and CO2 emissions savings of 500,000 tons per annum. It will be fired mostly by wood chips, consuming some 1.2m tonnes of them per year. Residual heat would be supplied to nearby industries. If regulatory approval is obtained, construction could start in 2010 with the plant opening in 2013 and achieving full capacity in 2014.