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.

'Ringgit will drop to 15-month low by year-end'

Malaysia's ringgit will drop to a 15-month low by the end of 2008 as a widening budget deficit, slowing growth and political turmoil will spur global funds to flee, according to CIMB Investment Bank Bhd.

The ringgit will weaken to RM3.5 a dollar as a wider deficit stokes concern the nation's credit-rating outlook will be cut, said Suresh Kumar Ramanathan, a rates and currency strategist in Kuala Lumpur.

Malaysia's biggest investment bank in February had predicted the currency will strengthen to RM2.95 by December 31.

"A large fiscal deficit is being priced into the market," he said in a phone interview in Kuala Lumpur yesterday. The currency will weaken as "the central bank shifted focus from inflation- fighting to growth concerns, and the danger of regime change is beginning to feed through," he said.

The ringgit declined 1.9 per cent this week, its biggest five-day loss in 15 months, after Prime Minister Datuk Seri Abdullah Ahmad Badawi on August 29 said the budget deficit will swell to 4.8 per cent of gross domestic product, from 3.2 per cent in 2007.

The ringgit's slump has also occasionally breached the lower band of its trade-weighted valuation in recent weeks. The lack of support from the central bank could further weaken its medium-term outlook, Suresh said.

Kuala Lumpur-based CIMB also revised its year-end forecast for Thailand's baht to 36.5 per dollar from 29, Indonesia's rupiah to 9,000 from 8,600, Singapore's dollar to S$1.45 from S$1.3 and South Korea's won to 1,200 from 1,000.

"The dollar is on a roll and Asian currencies are on the defensive," Suresh said. "Much of the slowdown ahead is due to the current de-gearing" as global banks pulled their money from the region to replenish capital eroded by credit-market losses, he added. - Bloomberg

Palm oil seen rising to RM2,900 by Dec

SIEM REAP: Malaysian crude palm oil futures are likely to rise to RM2,900 (US$844.5) per tonne by December on strong demand and lower output yields, leading industry analyst Thomas Mielke said today.

The price of the reddish-brown vegetable oil slid about 17 per cent this year and halved from a record high of RM4,486 hit in March, due to a knock-out combination of high stocks and news of defaults from key buyers India and China.

"In December the price should be around RM2,700 to RM2,900 for the third month contract. We expect increases in prices from here for several reasons," Thomas Mielke told reporters on the sidelines of a regional grains conference in Cambodia.

"Global demand for palm oil is going to pick up due to the very wide price discounts of palm oil relative to soyoil and other vegetable oils. Palm oil discounts are unusually high at the moment whatever locations you take," he said.

Mielke, head of German oilseeds research outfit Oil World, said the differential between the two products was as high as US$500 in the Rotterdam market at the end of August, with crude palm oil being quoted at US$835 per tonne and crude soyoil at US$1,338 per tonne.

Malaysian crude palm oil rose more than 1 per cent today as the price of crude oil bounced back from yesterday's low, and a weaker ringgit currency against the US dollar provided some support. - Reuters

United Arab Emirates plant to open in 2009

By Ryan C. Christiansen

Web exclusive posted Sept. 3, 2008 at 10:54 a.m. CST

Emirates Biodiesel LLC, also called EmBio, plans to open its first commercial-scale biodiesel plant in the United Arab Emirates in the first half of 2009. The 3 MMgy plant will use waste cooking oils and other inedible oils as feedstocks. The company will market its product domestically as a renewable fuel additive that can be used by companies in the region to offset carbon emissions.

EmBio was founded by United Arab Emirates-based Ecobility Energy Solutions LLC, in May to lead private-sector sustainable development and carbon footprint reduction in the United Arab Emirates.

"The need for a functional non-fossil fuel alternative has now become more evident than ever," said Karim Aly, one of Ecobility's cofounders. "Biodiesel is highly complementary to a holistic sustainable energy strategy as it concentrates on displacing liquid petroleum fuels."

"Here in the [Gulf Cooperation Council], as in the rest of the world, we are faced with surging energy demand and growing pressure on the environment," said Wadah Abusin, also an Ecobility cofounder. "It was clear that the need for sustainable development is critical to a prosperous future for the United Arab Emirates and the region. The majority of the infrastructure underlying the region's economic growth is diesel-powered. Gulf Cooperation Council states are rapidly exploring ways to make greater use of alternative energy to meet the growing domestic demand."

The Gulf Cooperation Council, which was established in 1981 to coordinate efforts, includes the United Arab Emirates, Bahrain, Saudi Arabia, Oman, Qatar, and Kuwait.

EmBio is funded by Alf Yad Limited LLC, a Dubai-based venture capital fund, which is a joint venture between the United Arab Emirates Chapter of the Young Arab Leaders and Daman Investments PSC, a private shareholding company that was formed in 1998 by a group of United Arab Emirates investors.

"Alf Yad sees tremendous potential in the renewable energy sector," said Shehab Gargash, chief executive officer of Daman Investments.

HOW THE U.S. GOVERNMENT COULD MAKE YOU A FORTUNE - BEGINNING SEPTEMBER 15

Step 1: The U.S. Government has decided that Energy Speculators are our new enemy. And on September 15, they're going to declare war on this enemy in a very public way.

This declaration of war - and the actions that follow - will create an enormous profit opportunity for those investors like us who know what to do.

Step 2: Following the CTFC report to Capitol Hill on September 15, Congress will get involved in the energy markets in a BIG way - and that creates an enormous opportunity. In fact, we already know what's going to happen!

Immediately after the September 15 report, Congress will begin establishing tighter controls over the energy trading markets. And this over-regulation could have a significant impact on the energy markets. In fact, the potential exists for a HUGE spike in the price of oil.

Step 3: As it becomes apparent that regulating the speculators is having minimal impact - at best - on energy prices, the markets will begin to realize that we've entered a new era - an era in which alternative energy is no longer "alternative"... but necessary.

As this realization takes place, a decade-long bull market in "alternative" energy will get a tremendous kick-start. Those investors who are in before September 15 will position themselves for potentially life-altering profits.

Step 4: As if that kick-start weren't enough... Congress will give us another "green gift" before December 31 by extending the federal renewable energy investment tax credits.

The last time this happened - on December 18, 2007 - several solar companies enjoyed significant spikes in share price as a direct result of this action.

Step 5: So here's what you need to do: click on the link below to get a copy of the FREE report I've prepared to take advantage of this one-of-a-kind pre-bull market opportunity.

Remember - this report wasn't put together by a group of number-crunchers who just arrived at the party. We were the first ones to regularly follow the alternative energy market, and we remain the largest and most successful group of investors dedicated exclusively to this new generation of wealth.

The fact is...

With the world's largest oil fields being depleted--some by as much as 15% per year--and natural gas facing a similar long-term plight, our energy future lies in alternative energy sources.