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Biofuel and Industrial News

Please see below expanded new articles from the Biofuel and Industrial Newsletter. To receive this e-newsletter in future please email mi@hgca.com.

 

RFA release UK biofuel usage data for the first half of the 2009/10 reporting year

The Renewable Fuels Agency (RFA) released the UK biofuel usage data for the first 6 months of the 09/10 reporting year (April -October). The key points were as follows with the equivalent figures from 2008 in brackets.

  • Total biofuel usage 706Mlitres (667Mlitres), of which 564Mlitres (562Mlitres) was biodiesel and 142Mlitres (105Mlitres) bioethanol.
  • This consumption is 2.9% of total UK road transport fuel, falling short of the annual 3.25% target.
  • Soya and tallow were the main feedstocks for biodiesel providing 209Mlitres (226Mlitres) and 114Mlitres (67Mlitres) respectively. The large increase in tallow usage has largely offset a 43% drop in oilseed rape usage from 155Mlitres in 2008 down to 89Mlitres in 2009. The change is partly due to the need to use waste oils to maintain production margins.
  • Argentina and the US were the main suppliers of biodiesel at 136Mlitres (29Mlitres) and 121Mlitres (207Mlitres) respectively. This shows a significant change over the year representative of the decline in biodiesel production in the US. In 2008, the US and Germany were the largest suppliers at 207Mlitres (121Mlitres 2009) and 83Mlitres (55Mlitres). The majority of German biodiesel is made from rapeseed oil.
  • Sugarcane from Brazil and sugarbeet from the UK provided 93% of UK bioethanol at 109Mlitres (86Mlitres) and 23Mlitres (17Mlitres) respectively.
  • This report also introduce new reporting on Renewable Transport Fuel Certificates (RTFC's) which are allocated one per litre of renewable fuel. Since the beginning of the RTFO 160million 2008/09 certificates have been traded and 7million 2009/2010 certificates.

For more see www.renewablefuelsagency.com 

Start of the Ensus bioethanol plant at Teesside moves ever closer
 Stewart Easdon, Ensus wheat and animal feed manager said the 'big green button' would be pressed on the Ensus bioethanol plant at Wilton, Teesside on Monday 25th Jan. As yet no further news has been released on progress. (Reuters)


Malaysia plans incentives for 'green' power plants
Malaysia plans to encourage development of "green" palm oil-based independent power plants (methane capture plants), as it steps up efforts to make higher greenhouse gas (GHG) savings. Currently under the proposed EU Renewable Energy Directive default savings from the use of palm oil for biodiesel stand at 19%, falling short of the 35% savings required for the fuel to be eligible for incentives under the Directive. In order to access the EU's biodiesel market, Malaysia must address the GHG emissions from its production process. 

Reports from industry executive suggest that a methane capture plant can reduce GHG's by converting the polluting waste gases from processing into electricity. A palm oil mill that processes 60t/hr of palm fruits has the ability to generate 2 megawatts of electricity which is enough to power a medium-sized oil palm estate.  

Low US glycerine supplies set to push up market creating opportunities for overseas producers
Glycerine is the main by-product of the biodiesel production process making up c. 10% by volume of the output. In the last few quarters glycerine prices have been relatively steady after dramatic moves up and then down during 2008. However, it appears a severe crunch in US crude glycerine supply is about to unfold as a result of the diminished US biodiesel industry. Lack of credit and the US governments delay in extending subsidies for biodiesel mean that production is low and glycerine production rate is approaching zero, analysts suggest. Overseas glycerine producers are likely to benefit from this trend with material from abroad becoming more desirable as US values rise. On December 23 2009 Northwest Europe vegetable glycerine prices stood at £290/tonne. (ICIS www.icispricing.com)


UK biofuel supplier Greenergy form JV with Bauche
 UK biofuels supplier Greenergy International said this it has formed a joint venture with French sugar and ethanol group Bauche to source and sell sustainable Brazilian ethanol in the European market. Greenergy, the leading importer of Brazilian bioethanol into Britain, will have a 70% stake in Sao Paulo-based Greenergy Brazil and Bauche the remaining 30%. The new venture has been prompted by the anticipated imposition of the EU Renewable Energy Directive in late 2010 or early 2011 which is likely to require biofuels producers to show their fuel complies with social and environmental standards.

David Rees, a director of Greenergy International and chairman of Greenergy Brazil said the company would be shipping bioethanol primarily to the UK, at least initially. He noted rising sugar prices had made Brazilian shipments of sugar-derived ethanol less competitive in the short-term. Sugar futures reached 29 year highs last Thursday on the back of news of an Indonesian deficit which added to previous supply concerns. Rees commented "It is unlikely that anyone will be buying spot Brazilian ethanol today, but that's a very short term position [however] come March-April we will see the price being normalized and Brazilian ethanol will once again be competitive, particularly in those European countries with a lower import regime, including the UK." (Reuters)


Coca-Cola launch bioethanol-based plastic bottles in Japan
Coca-Cola (Japan) Co. it will introduce PET (polyethylene terephthalate) bottles made using dehydrated Brazilian bioethanol in the spring for the first time in Japan. In the new plastic bottles, up to 30% of the oil-derived materials used in existing bottles will be replaced with bioethanol based PET made from sugarcane. By introducing the new bottles for three products, the company expects to cut its use of crude oil by 2Mlitres annually and the new bottles can be recycled at existing facilities. In the future Coca-Cola (Japan) plans to produce plastic bottles made completely from plant-derived materials.

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