BIODIESEL: THE FUEL FOR THE FUTURE

China: tax exemption for biodiesel

2011-01-13T23:07:00.000-08:00

By Erin Voegele | December 20, 2010

Posted Dec. 29, 2010

The People's Republic of China has taken action to make biodiesel production within the country more economical. In late December China's Ministry of Finance and State Administration of Taxation announced that pure biodiesel made from waste animal fats or vegetable oils is now exempt from consumption taxes.

The new policy has been enacted retroactively, effective Jan. 1, 2009. According to information released by the People's Republic of China, consumption taxes paid on biodiesel since that time will be refunded.

The action aims to boost the renewable resources sector, easing demand for petroleum and protecting the ecological environment, said the government in a statement. Biodiesel producers are expected to save approximately 900 yuan ($135) per metric ton due to the action. According to the statement, this should help make biodiesel producers more competitive in the fuel sector while guarding against waste edible oils from being reused for human consumption, which will help ensure food safety.

Biodiesel producers within the country are already reacting to the news. On Dec. 28 Chinese biodiesel company Gushan Environmental Energy Ltd. announced that it is currently in the process of assessing the effect of the new policy. "Gushan is in the process of assessing the immediate impact of this notice on its business operations and production plans and expects to make an announcement regarding the implications of this notice following further evaluation by its management," said the company in a press release. Biodiesel Magazine was unable to reach a representative of Gushan for further comment on the development.

Neste Oil to Buy Rapeseed Oil as Biodiesel Feedstock

2007-06-06T11:28:00.000-07:00

Espoo, Finland [RenewableEnergyAccess.com] Neste Oil and Raisio have agreed a contract under which Raisio will supply 10,000 tons of rapeseed oil to Neste Oil this year for use as a feedstock at its NExBTL Renewable Diesel plant at Porvoo. The plant, which is due to start up this summer, is based on proprietary Neste Oil technology that can use a flexible mix of vegetable oil and animal fat to produce premium-quality biodiesel. In September last year Neste Oil contracted to buy virtually all the byproduct tallow produced by the Finnish food processing industry as raw material input for its biodiesel production. The NExBTL plant at Neste Oil's Porvoo refinery is the first of its type and will have a capacity of 170,000 t/a. A second, identical plant is being built alongside, scheduled for completion late next year.

For Further Information
Neste Oil Corporation

Bio-Extraction & BioNex Energy Pursue "Cold Crushing" Biodiesel Venture

2007-06-05T15:23:00.000-07:00

Toronto, Ontario [RenewableEnergyAccess.com]

Bio-Extraction Inc. signed a joint development agreement with BioNex Energy Corp (BEC) in which BioExx and BEC will work on a development study to test, and prove, the commercial efficiency of the BioExx extraction technology for use in tandem with a planned BEC biodiesel production facility slated for western Canada.

BEC is a developmental stage company that intends to use cold crushing technology in its plant as a first-stage process for removal of oil from canola and other high oil-content crops; BioExx would provide the second-stage process.

The first stage of oil removal will remove approximately 80% of the oil from the biomass while maintaining a consistently low temperature. In the second and final stage of oil removal, the process will remove up to 100% of the remaining oil while at the same time maintaining the protein value originally contained in the biomass.

On a combined basis, this process could improve yields of oil volume versus existing oil-removal technologies while at the same time increasing the residual value of the biomass. In some cases, BioExx may also be able to isolate the proteins for use as protein additives in animal or fish feed and eventually for human consumption.

The BioExx technology has the capability to remove up to 100% of the oil but at a significantly reduced operating temperature while retaining all of the nutritive content of the spent biomass. The spent biomass resulting from this process can have substantially higher value because they can be sold as higher quality animal feeds or other higher value protein applications and products. The BioExx technology may therefore have the potential to fundamentally improve the economics of biodiesel manufacturing operations, while at the same time mitigating the increasingly prominent "food versus fuel" conflict over global crop usage.

For Further Information
Bio-Extraction Inc.

Soy-Based Biodiesel Can Burn as Cleanly as Natural Gas

2007-06-05T15:22:00.000-07:00

LPP Combustion Technology proves that renewable fuel has zero emissions.

Columbia, Maryland [RenewableEnergyAccess.com] LPP Combustion, LLC has demonstrated the patented LPP Combustion System will allow soybean oil-based biodiesel to burn as cleanly as natural gas, with no net greenhouse gas emissions. Because biodiesel is a renewable fuel, gas turbines burning this fuel with the LPP System can provide "carbon neutral" electrical power by producing no net greenhouse gas emissions. LPP Combustion has developed an enabling technology that provides the cleanest possible use of biofuels in a combustion device without the need for post-combustion pollution control equipment. The soy-based biodiesel was provided by Renewable Energy Group Inc. (REG), an Iowa-based full-service company and leader in the biodiesel industry. REG markets biodiesel to customers for the on-highway, marine, military, home heating and agricultural industries.

For Further Information
LPP Combustion, LLC

Interest in Green Star Algae Biodiesel Expands Globally (June 5, 2007)

2007-06-05T15:21:00.001-07:00

San Diego, California [RenewableEnergyAccess.com] Green Star Products, Inc. (GSPI) has heard from companies from more than 20 countries on five continents expressing interest in GSPI's biodiesel and microalgae technology. In addition to numerous inquiries that have also been received from across the U.S., are South Africa, India, China, Brazil, Australia, Canada, Argentina, Chile, New Zealand, Peru, Costa Rica, Sweden, Czech Republic, Zimbabwe, Spain, Italy, Nicaragua, Mexico, Russia, and Kazakhstan. This surge in "microalgae-oil-to-biodiesel" interest is accredited to two media events that explained the present and future status of biodiesel as an alternative fuel, which is based on feedstock oils from food sources such as corn oil and soy oil versus non-food microalgae oil. Algae can produce 50 to 100 times more oil per acre than food oils crops.

For Further Information
Green Star Products, Inc.

Homegrown Canadian Fuel

2007-06-01T12:12:00.000-07:00

The biodiesel industry has received a boost from some favourable government policies. In fact Sturgeon County may end up being home to a commercial-scale plant.

Editor’s Note: Ian Thomson, mentioned in this article, is one of the presenters in the sustainable development stream of this year’s Annual Conference Professional Development Program. The conference, the Annual General Meeting and related activities take place April 25-28 in Calgary at the TELUS Convention Centre and the Fairmont Palliser Hotel. Mr. Thomson is president and co-founder of Canadian Bioenergy Corporation. He also serves as president of the Alberta Biodiesel Association and the British Columbia Biodiesel Association, and he sits on the Mayor’s Climate Leadership Council in Vancouver. Before Canadian Bioenergy, Mr. Thomson was a strategic consultant to organizations such as Cargill, Chevron, Duke Energy, Petro-Canada and United Technologies.

The biodiesel industry in Canada is gearing up in response to recent federal and provincial policy developments. Mandates for renewable content in diesel fuel, producer incentives, and project funding for the development of renewable alternatives to petroleum diesel - these have combined to give the industry renewed vitality.

Canadian Bioenergy is a Vancouver company planning a canola-based biodiesel production plant in Sturgeon County, near Edmonton. Since 2004 Ian Thomson, its president, has been leading the drive for a domestic biodiesel industry in Western Canada.

The company has been working with various groups in the biodiesel value chain, such as the Canola Council of Canada, to ensure the necessary framework is in place. This framework will need to have Canada growing, producing and selling renewable fuel in Canada - rather than importing the finished product from a subsidized U.S. market.

Made with renewable resources such as vegetable oils and animal fats, biodiesel burns cleaner than fossil fuels. It can be blended at any level with petroleum diesel for use in existing diesel engines and fuel injection equipment, without them being modified. Under a complete lifecycle analysis, biodiesel achieves significant reductions in both greenhouse gas emissions and air pollution.

Last December, the federal government announced a minimum five per cent renewable content in Canada’s transportation fuels, with an additional two per cent average renewable requirement in diesel fuel by 2012. The government recently complemented this measure in the 2007 budget by introducing a producer’s credit of up to 20 cents a litre.

B.C. has extended even greater support in its provincial energy plan, calling for a five per cent biodiesel requirement by 2010. Other provinces are expected to follow.

Right now, only two biodiesel facilities at commercial scale are in operation. Canada’s domestic production capacity will increase substantially over the next five years to meet the forecast annual demand of 700 million litres under the federal and provincial mandates.

Following the federal budget of March 19, Doug Hooper, CEO of Canadian Bioenergy, applauded the federal government for its willingness to create a Canadian biodiesel industry. Mr. Hooper said: “A producer’s credit comparable to the one in the U.S. is one of the last key steps needed for us to build a domestic biodiesel industry.

“We’re showing the rest of the world that Canada is ready to take a real leadership role in lowering greenhouse gas emissions and improving the quality of the air we breathe. And we’re going to do it with fuel grown and produced at home.”

Canadian Bioenergy’s preliminary annual production plans are for 114 million litres of canola-derived biodiesel and about 10,000 tonnes of glycerine. Canola is an excellent feedstock for biodiesel production, with proven fuel attributes demonstrated by over a decade of on-road use in the European Union. These include superior cold-weather performance, which is a critical issue in the Canadian climate.

The Sturgeon County refinery would be designed so its capacity could be doubled to meet future demand. At the proposed initial scale, the biodiesel refinery would meet about 20 percent of the Government of Canada’s annual biodiesel production target of 500 million litres by 2010.

Canadian Bioenergy has established effective relationships with petroleum distributors to ensure that high-quality biodiesel is widely available to government, commercial and industrial fleets. The company currently operates terminal locations in Vancouver and Calgary to supply custom biodiesel blends for more than 20 large fleets throughout B.C. and Alberta.

The emergence of made-in-Alberta plans to reduce emissions from oil sands operations will mean greatly expanded demand for Canadian Bioenergy products. The location of the plant, in concert with the company’s integration with petroleum distributors, will make it attractive to large diesel users in Northern Alberta.

In addition to its beneficial fuel properties, the kind of biodiesel made from canola – methyl ester – is a versatile non-toxic, biodegradable chemical. It has a variety of uses in lubricants, solvents, release agents, and additives for drilling mud packs.

Canadian Bioenergy is leading research into expanded industrial uses of methyl ester, as well as the byproducts created in its production such as glycerine and fatty acid oils.

[Note: Original article from: http://www.apegga.com/Environment/default.htm]

Philippines in $1.3 Billion Biofuel Deal (23 May 2007)

2007-05-23T10:44:00.000-07:00

The alternative fuels division of state-owned Philippine National Oil Company (PNOC) has signed a US$1.3 billion (€966 million) deal with UK-based NRG Chemical Engineering Pte. to establish a joint venture and build a biodiesel refinery, a jatropha plantation, and two ethanol plants.

NRG Chemical will own a 70% stake in the joint venture and provide the bulk of the equity requirement in building a biodiesel refinery, two ethanol plants and a million-hectare (2.4 million-acre) jatropha plantation. PNOC-AFC will own 30% of the project.

The refinery, expected to be in operation by early 2008, will have an initial capacity of at least 350,000 metric tons a year (about 106 million gallons US), with a projected ramp to 3.5 million tons a year.

The refinery will initially use coconut and vegetable oil as feedstock until the planned jatropha plantation can start commercial production.

DoD Begins Field Testing of O2Diesel/Biodiesel Blend

2007-05-23T10:39:00.000-07:00

The US Department of Defense (DoD) has begun field testing of a new ethanol/biodiesel blend developed by O2Diesel. A demonstration fleet at Nellis Air Force Base in Las Vegas, Nevada, is now using the new fuel, O2Biodiesel, which consists of 28% renewable sources: ethanol, biodiesel, and a proprietary biomass-derived stabilizing additive.

Earlier emission testing at the Southwest Research Institute in San Antonio, Texas, demonstrated the synergy between the additive package, ethanol, and biodiesel with respect to the key regulated air pollutants: particulate matter and oxides of nitrogen (NOx).

While further emissions testing continues, the new fuel will undergo real-world operational challenges under military spec. These include storage and handling, and use in extreme conditions of heat, cold, humidity, and variations in types of use.

O2Diesel fuel is a blend of 7.7 vol% ethanol treated with the company’s stabilizing additive.

In December 2006, O2Diesel Corporation received an additional $1 million in funding from the DoD to continue its existing demonstration projects and develop a new fuel with at least 20% renewable sources.

Testing of the O2Diesel/B20 biodiesel blend is also underway at Ben Franklin Transit (BFT) in Richland, Washington. The 210-day operational test there, which began in January, is using 20 vehicles that represent four different chassis manufacturers running six different diesel engines ranging in age from 1988 to 2006.

Operational data will span winter and summer months.

One effect of combining ethanol and biodiesel is the lowering of the pour point (the temperature at which the fuel begins to gel). Conventional practice for winter blends has been to mix No. 2 diesel with No. 1 diesel to lower the pour point. The use of e-diesel may reduce the need to blend No. 1 diesel into winter blends (depending upon the ethanol content and other additives).

GM Vauxhall Begins B30 Commercial Van Customer Trials in UK

2007-05-23T10:34:00.000-07:00

GM’s Vauxhall has introduced B30-compatible models of its Vivaro and Movano panel vans, and will begin trials with two key fleet customers.

The biodiesel B30-compatible models use the existing 2.0 CDTI Vivaro and 2.5 CDTI 98 hp and 118 hp Movano engines, and offer up to 20% less CO2 emissions on a ‘source to wheels’ basis compared to the standard Euro 4-compliant diesel units.

As part of a controlled fleet trial, a number of vans will run on biodiesel B30 across the country as GM and Vauxhall investigate the long-term potential for the fuel in the UK, and look towards a more widespread distribution network for it.

Vauxhall is also calling on the UK government to look at establishing a quality specification for the fuel.

In August 2006, Citroën announced it was running its UK Head Office-based diesel cars and vans, including all those used by the media, on a 30% biodiesel blend. The B30 blend can be used in all current Citroën diesel vehicles without any modifications.

Fuel tax changes 'threaten biodiesel industry'

2006-07-12T16:49:00.000-07:00

here are concerns from biodiesel producers that changes to the fuel tax system will threaten the viability of the industry.

The changes come into effect this month and mean that farmers and miners can no longer receive rebates on biodiesel.

The president of the Biodiesel Association, Adrian Lake, says some biodiesel projects are being reviewed because of the changes.

"Under these laws a lot of the certainty is certainly gone and that has a big impact on whether people will commit the resources that are required to develop the crops and the infrastructure around it to supply to biodiesel," he said.

Mr Lake says regional areas will suffer the most under the changes.

He is calling on the Federal Government to consider the effects.

"We'd like to see the Government evaluate the impact of these changes to the tax laws and see what they can do to really stimulate the industry and also create the regional benefits for Australia, the regional cropping and also production of biofuels."

The Assistant Treasurer Peter Dutton said in a statement the new laws create a fairer system and correct a loophole that gave some biodiesel producers an unfair advantage.

[Source: ABC]

Biodiesel Jobs

2006-06-30T17:32:00.000-07:00

Area entrepreneurs getting into the biodiesel business

2006-06-30T15:19:00.000-07:00

Forget the Middle East, Nigeria or the Alaskan Wildlife Refuge. The fast-food kitchen is the chic place where environmentalists and entrepreneurs are tapping another source of oil.

Leftover restaurant grease is being used to make an increasingly popular alternative fuel — a blend of vegetable oils, animal fats and diesel popping up at more metro Atlanta stations.

Rob del Bueno, a leader in Atlanta’s “underground” biodiesel community the past few years, is launching his first mom-and-pop-style, pay-at-the-pump location.
His Atlanta biodiesel station at the corner of DeKalb Avenue and Oxford Road should be up and running by mid-July.

He isn’t alone. Citgo Food Mart in Alpharetta started selling biodiesel in the past two weeks.
In all, 10 stations selling the fuel — which burns cleaner than diesel — are scattered across Georgia from Rome to Waycross, according to the National Biodiesel Board. Many are selling it for $2.88, or about the same price as standard diesel.

So why will drivers turn to biodiesel if it’s not cheaper?
“The environmental benefits,” said del Bueno, whose endeavor gets funding from a foundation that wants his business model to spread across the Southeast.

Strike the iron while it’s hot
The concept may have its best chance yet. With oil prices hovering near $70 a barrel and the price of gas at the pump hanging around $2.80, consumers are more willing to listen to talk about alternative fuels. “We’re a nonprofit, so we’re really not looking to make money,” del Bueno said. “We want people to learn from this period and consider biodiesel as an option. Some may want to stick with it.”

Biodiesel is nothing new. But its burgeoning popularity is.
The volume produced and sold in the United States tripled from 25 million gallons in 2004 to 75 million last year, according to the National Biodiesel Board. Some 850 U.S. retail locations offer biodiesel at the pump in grades from B-5, or 5 percent biodiesel, to B-20.
Soybeans are the most common source of the fuel — which can run in any diesel engine.

Not just for the environmentally conscious
A few years ago, del Bueno made only enough biodiesel for use in his old Mercedes and the cars of a few friends. He helped spearhead an Atlanta grass-roots effort to embrace biodiesel, launching a Web site, creating an online forum and holding seminars.
“Education has always been an important aspect of this,” del Bueno said.
Now, he shares the world of biodiesel with businessmen who want to make a buck and help the environment.
Gwinnett resident Dan Maher is building a biodiesel production plant in Loganville that can make at least 1,000 gallons a day. By winter, he wants to offer biodiesel-at-the-pump at his chain of Dirty Dan’s car
washes.
Maher, owner of Georgia Biofuels Corp., said he could have 15 franchises set up by the end of next year.
One of his aims is to offer energy security — an increasingly important issue for Americans as the oil supply has been put at risk in recent months by hostile countries and historic hurricanes.
“You want to be able to see a business owner take pride in his investment,” Maher said. “This is American made — that’s the biggest thing. Plus, it’s a better fuel that burns cleaner. People want it.”

Tiny Microreactor For Biodiesel Production

2006-06-30T15:16:00.000-07:00

CORVALLIS, Ore. - Chemical engineering researchers at Oregon State University have developed a tiny chemical reactor for manufacturing biodiesel that is so efficient, fast and portable it could enable farmers to produce a cleaner-burning diesel substitute on their farms using seed crops they grow on their own land.

"This could be as important an invention as the mouse for your PC," said Goran Jovanovic, the OSU professor who developed the biodiesel microreactor. "If we're successful with this, nobody will ever make biodiesel any other way."

Current biodiesel production methods involve dissolving a catalyst, such as sodium hydroxide, in alcohol, then agitating the alcohol mixture with vegetable oil in large vats for two hours. The liquid then sits for 12 to 24 hours while a slow chemical reaction occurs, creating biodiesel and glycerin, a byproduct that is separated. This glycerin can be used to make soaps, but first the catalyst in it must be neutralized and removed using hydrochloric acid, a tedious and costly process.

The microreactor developed at OSU eliminates the mixing, the standing time for separation and potentially the need for a dissolved catalyst.

But more importantly, Jovanovic says, the microreactor, which is about half the size of a thick credit card, could help farmers reduce their dependence on mass-produced petroleum as well as reduce the need to distribute fuel via truck, tanker or pipeline.

"This is all about producing energy in such a way that it liberates people," Jovanovic said. "Most people think large-scale, central production of energy is cheaper, because we've been raised with that paradigm. But distributed energy production means you can use local resources - farmers can produce all the energy they need from what they grow on their own farms."

The microreactor, being developed in association with the Oregon Nanoscience and Microtechnologies Institute (ONAMI), consists of a series of parallel channels, each smaller than a human hair, through which vegetable oil and alcohol are pumped simultaneously. At such a small scale the chemical reaction that converts the oil into biodiesel is almost instant.

Although the amount of biodiesel produced from a single microreactor is a trickle, the reactors can be connected and stacked in banks to dramatically increase production. "By stacking many of these microreactors in parallel, a device the size of a small suitcase could produce enough biodiesel to power several farms, or produce hundreds of thousands of gallons per year," Jovanovic said.

Using microreactors, biodiesel could be produced between 10 and 100 times faster than traditional methods, said Jovanovic, who is also developing a method for coating the microchannels with a non-toxic metallic catalyst. This would eliminate the need for the chemical catalyst, making the production process even more simple, a key to widespread use.

Jovanovic is looking to partner with a new or existing company in order to commercialize the technology through the Microproducts Breakthrough Institute at ONAMI, Oregon's signature research center focused on growing research and commercialization to accelerate innovation-based economic development in Oregon and the Pacific Northwest.

But he admitted it will take a visionary business partner.

"The challenge is that we're trying to change a paradigm, moving from centrally-produced energy to distributed energy production, and that's not easy," he said. "But wind and solar energy technologies faced difficulties in their early days. And we're coming to a place in history where we cannot tolerate the growing uncertainty of petroleum-based energy supplies."

ONAMI is a collaboration involving Oregon's three public research universities - Oregon State University, Portland State University and University of Oregon - as well as the Pacific Northwest National Laboratory in Richland, Wash., the state of Oregon and the regional business community.

President Bush, in his 2006 State-of-the-Union address, pledged support for cutting-edge research in methods to produce biofuels. Jovanovic hopes his research will get a benefit from this pledge.

The federal government has granted $8 million over four years to OSU as one of the country's five Sun Grant centers of excellence - regional hubs charged with research and development of new technologies for using agricultural wastes, residues and new crops for the production of bio-energy.

Finding a better way to make biodiesel

2006-06-30T15:10:00.000-07:00

AMES, Iowa -- They're only 250 billionths of a meter in diameter. But fill them with the right chemistry and Iowa State scientists say the tiny nanospheres they've developed could revolutionize how biodiesel is produced.

The researchers are after a new, high-tech catalyst that takes some of the energy, labor and toxic chemicals out of biodiesel production. They've come up with a technology that works in the laboratory. And now they're working with the West Central Cooperative in Ralston to test their discoveries on a larger scale. They're also working to establish a company that would move the new technology into biorefineries.

The Iowa State research team is led by Victor Lin, an associate professor of chemistry. The team also includes George Kraus and John Verkade, both University Professors of chemistry at Iowa State. The researchers are part of Iowa State's Center for Catalysis.

Their project is being supported by a $1.8 million, three-year grant from the U.S. Department of Agriculture, a $120,000, two-year grant from the U.S. Department of Energy and a $140,000 grant from the Grow Iowa Values Fund.

"This is a project that's definitely relevant to the state's economy," Lin said. "I thought as a scientist I could contribute something to the state."

Current biodiesel production technology reacts soy oil with methanol using toxic, corrosive and flammable sodium methoxide as a catalyst. Getting biodiesel out of the chemical mixture requires acid neutralization, water washes and separation steps. It's a tedious process that dissolves the catalysts so they can't be used again, Lin said.

So Lin and his research team started looking for technologies that would create an easier, more efficient and more economical process. They were also hoping to find technologies that would effectively make biodiesel out of raw materials such as used restaurant oils and animal fats -- materials that are much cheaper than soy oil, but also contain free fatty acids that can't be converted to biodiesel by current production methods.

Lin has developed a nanotechnology that accurately controls the production of tiny, uniformly shaped silica particles. Running all the way through the particles are honeycombs of relatively large channels that can be filled with a catalyst that reacts with soybean oil to create biodiesel. The particles can also be loaded with chemical gatekeepers that encourage the soybean oil to enter the channels where chemical reactions take place. The results include faster conversion to biodiesel, a catalyst that can be recycled and elimination of the wash step in the production process.

Lin's particles can also be used as a catalyst to efficiently convert animal fats into biodiesel by creating a mixed oxide catalyst that has both acidic and basic catalytic sites. Acidic catalysts on the particle can convert the free fatty acids to biodiesel while basic catalysts can convert the oils into fuel.

And the particles themselves are environmentally safe because they are made of calcium and sand.

"We're excited about this and so is West Central," Lin said. "This serves as an example of how nanotechnology can be useful for advancing an industry that's not that high-tech. And this allows our students from the Midwest -- some of them from farms -- to learn a new kind of technology that doesn't take them away from home."

Larry Breeding, the general manager of biodiesel operations for the West Central Cooperative, said the technology shows promise for improving the efficiency of biodiesel production. But he said it still needs to be tested at larger and larger scales to see if the economic benefits are there. Tests also need to prove if the technology works in continuous-flow production rather than batch-by-batch production.

"This research is a real boon to us," Breeding said. "We don't have a research campus. So we have to rely on academia and we've leaned on the people at Iowa State very heavily for a lot of this work."

Contacts:

Victor Lin, Chemistry, (515) 294-3135

Larry Breeding, West Central Cooperative, (712) 667-3511

Mike Krapfl, News Service, (515) 294-4917

PetroSun Announces Formation of Algae BioFuels

2006-06-28T19:10:00.000-07:00

Subsidiary to Develop Algae-Based Biodiesel
Alternative Energy Resource to Supplement Petroleum-Based Fuels

PHOENIX--(BUSINESS WIRE)--June 22, 2006--PetroSun Drilling Inc. (Pink Sheets: PSUD - News), an emerging provider of oilfield services to major and independent producers of oil and natural gas, announced today that the company has formed Algae BioFuels Inc. as a wholly owned subsidiary. Algae BioFuels will be engaged in the research and development of algae cultivation as an energy source in the production of biodiesel, an economically feasible and eco-friendly alternative to petroleum-based transportation fuels. The R&D and production facilities for Algae BioFuels will be based in Arizona and Australia.

"PetroSun's formation of Algae BioFuels is a forward-looking strategy," said L. Rayfield Wright, president of PetroSun. "The opportunity to produce a renewable energy product that will assist in providing a healthier planet for future generations cannot be ignored."

Biofuel is any fuel that is derived from biomass -- which contains recently living organisms or their metabolic byproducts. Biofuel is a renewable energy source, unlike other natural resources such as petroleum, coal and nuclear fuels. Agricultural products specifically grown for use as biofuels include corn and soybeans.

Extensive research is currently being conducted to determine the utilization of microalgae as an energy source, with applications being developed for biodiesel, ethanol, methanol, methane and even hydrogen. Independent studies have demonstrated that algae is capable of producing 30 times more oil per acre than the current crops now utilized for the production of biofuels. Algae biofuel contains no sulfur, is non-toxic and highly biodegradable.

The Office of Fuels Development, a division of the Department of Energy, funded a program from 1978 through 1996 under the National Renewable Energy Laboratory known as the "Aquatic Species Program." The focus of this program was to investigate high-oil algae that could be grown specifically for the purpose of wide-scale biodiesel production. Some species of algae are ideally suited to biodiesel production due to their high oil content, in excess of 50%, and extremely rapid growth rates.

One of the biggest advantages of biodiesel, compared to many other alternative transportation fuels, is that it can be used in existing diesel engines, which relieves automotive manufacturers of having to make costly engine modifications. Biodiesel can also be mixed, at any ratio, with conventional petroleum diesel. As a result, the alternative fuel can be used in the current distribution infrastructure, replacing petroleum diesel either wholly, or as a diesel fuel blend with minimal integration costs.

About PetroSun

PetroSun's current operations are concentrated in the Ark-La-Tex region with plans to expand into New Mexico, Arizona, Utah and Australia in 2006. PetroSun provides a comprehensive array of products and services to the oil industry. The company's cutting-edge technologies, combined with a proven ability to apply them effectively and safely within a disciplined ROI framework, creates long-term value for PetroSun shareholders and partners. PetroSun is headquartered in Phoenix. For more information about PetroSun visit the company's Web site at http://www.petrosun.us.

Green Star Biodiesel Process

2006-06-23T23:33:00.000-07:00

Green Star Products, Inc. (OTC:GSPI - News) announced that they have developed and successfully commercially tested their 10 million gallon per year advanced biodiesel reactor. GSPI reactors require only two minutes to complete the biodiesel conversion reaction compared to over one hour that is typical for a conventional biodiesel plant.

GSPI Biodiesel Plants have the following competitive advantages:

All plant design is modularized so additional capacity can be added at minimal cost.

Speed of construction - plant can be placed in service in 14-16 weeks versus industry standard average of 14 to 18 months.

Small footprint of plant because of its modularized "continuous flow waterless design" versus industry batch plant design, which also results in lower production and maintenance costs.

Minimum plant management and operations staff required because plant is automated.

Proven technology - Industrial size plant operated and produced biodiesel for over three years in Bakersfield, California.

Minimal permits required from regulatory agencies. Plant requires no wastewater permit, which could take up to one year to obtain and minimum air quality permits.

The plant design is very energy efficient and reduces energy requirements by over 30% of industry average.

Lower capital costs by at least 40% compared to biodiesel industry standards. (between $.80 cents per gallon to a high of $1.25 per installed gallon for conventional biodiesel plants)

Plants require 30 to 40% less energy (increased efficiency) to run motors and pumps.

Faster achievement of positive cash flow is due to a much shorter time frame to complete construction and permitting.

Since GSPI's Continuous Flow Biodiesel Production (CFBP) system is completely enclosed and waterless, it greatly reduces the time to secure construction permits, which can take a year or longer to obtain. Mr. LaStella, President of GSPI, points out that California is probably the toughest state to obtain air and water discharge permits. Recently, the GSPI CFBP system received the permits to construct a biodiesel plant in California in only eight weeks. Since many cities and towns across the U.S. do not have the expertise to evaluate new biodiesel plants being built in their jurisdiction, they have welcomed the California permit package to save them the need to research this emerging biodiesel technology and save GSPI the time to receive these valuable permits.

The basic production cost to build the reactors has been reduced to only $30,000 per 10-million GPY reactor module. Smaller units will cost even less. This will significantly reduce the costs and time to build biodiesel plants. The prefabricated reactors make it possible to construct plants within 14-18 weeks versus the 14-18 months that is typical for conventional plants. The balance of the infrastructure--which includes land, building, electrical, storage facilities, railroad access and final cleanup of biodiesel--will still be required.

American Biofuels, L.L.C. (ABF), which is 35% owned by Green Star Products, Inc. and is the operator of the biodiesel plants, expects to increase biodiesel production to 40,000,000 gallons per year in 2006. ABF's Bakersville, Ca site is where the original 5-million GPY biodiesel plant was located. The original plant was first started up in late 2003. Three different sizes of the current reactor design were tested from January 2005 through February 2006 at the Bakersfield biodiesel plant facility. The largest reactor was rated at 10-million GPY and was operated from August 2005 through February 2006.

The Bakersfield facility was expanded to 10-million GPY in March 2006. ABF is planning to increase the capacity to 20-million GPY, estimated for completion by late 2006. ABF is also planning a new 20,000,000-GPY East Coast facility to supply New York state and surrounding states which is scheduled to be in production by late 2006.

Green Star Products, Inc. plans to construct total bio-refinery complexes for production of both biodiesel and biomass ethanol at each facility.The first bio-refinery is planned to be in North Carolina and the location of the second facility is to be announced soon in the northwestern sector of the United States. The bio-refinery complex would fully integrate both a biodiesel processing plant and biomass ethanol processing plant to optimize engineering strategy and cost reduction through planned synergic processing.

Each bio-refinery will have a start-up production of between 10 to 20 million gallons per year with quick expansion capabilities. The facility infrastructure will be capable of expanding to 60 million gallons per year (and further expansion capabilities could reach 100-million gallons per year).

The combined bio-refinery has the following advantages:

1) Ethanol plants operate at high temperatures above 1,200 F, while biodiesel plants require low temperatures below 240 F. Therefore, the waste heat from the ethanol plant is enough to run the biodiesel plant at almost no additional heat processing cost.

2) The biodiesel and ethanol plants can utilize the same laboratories, QC facilities, maintenance equipment and personnel. They can also share dispatch operations and management personnel.

3) One of the greatest advantages for the bio-refinery is the fact that domestically produced vegetable oil (soy oil, canola oil, etc.) will be used to make biodiesel and the waste products from the plants (stalks, etc.) can produce low cost ethanol.

4) Since the biodiesel production process requires approximately 10% methanol and since much of the methanol in the U.S. is presently supplied from outside of the U.S. borders, there could be a time when supplies could be cut short. The bio-refinery would simply use part of its ethanol, which works just as well as methanol. This would insure that the bio-refinery is always in operation backed by the output of the U.S. farmer.

The North Carolina biodiesel facility will be funded and owned by Renewable Resources International (RRI), which is owned by a group of environmentally conscious investors that collectively own approximately 3% of GSPI stock. The RRI facility is located close to existing biodiesel feedstock plants (soy oil crushing facilities) and adjacent to primary diesel fuel distribution terminals.

Initial Phase I of construction will provide for infrastructure expansion up to 60 million gallons capacity per year. Expansion will proceed from 10 million gallon capacity to the maximum infrastructure capacity by adding 5 million gallon per year capacity reaction modules in stages.

Phase II of the RRI program incorporates much larger production on a worldwide basis.

Green Star does not reveal any details about its reactor, so how it is constructed and how it works is not known. The reaction time in reactors can be increased by mixing either from the flow regime, through the use of mechanical agitation or from doing the reaction in several smaller well mixed stages. A good process description and flow schematic for a conventional biodiesel plant is found in the Van Gerpen reference. Based on this reference the reaction with the catalyst (usually sodium hdroxide) and alcohol normally takes 1 hour in a stirred reactor.

A patent application,#20050188607, by LaStella indicates that it has been proposed to use a methanol removing substance in place of the water rinse to remove methanol from the biodiesel, e.g., a silicone based gel adsorbent. This patent also claims that operating the plant at 145 F, above the normal 110 F, reduces the required retention time substantially.

Resources:

Green Star Products, Inc, Chula Vista, CA
Biodiesel Production and Fuel Quality, Van Gerpen, University of Idaho

Biodiesel Conference in Canada (17-18 July, 2006)

2006-06-23T23:29:00.000-07:00

Plan now to attend Biodiesel: Powered by Canola. Fueling our Future - a conference to kick start the development and growth of a canola-based biodiesel industry in Canada.

Bio-diesel – a renewable energy source

2006-06-22T13:54:00.000-07:00

Finally, diesel-powered vehicles are gaining in popularity in North America. Europe, of course, has long embraced this efficient powerplant because of its much higher fuel prices. As gasoline prices climb here, Canadians and Americans are warming up to diesel propulsion too. Recognising this trend, automobile manufacturers are planning more diesel vehicles, such as the Jeep Liberty diesel and Mercedes' new E320 CDI diesel.

However, while the diesel engine is more efficient than gasoline engines, it still uses a non-renewable resource for fuel. This dependence on fossil fuels could decrease with the addition of bio-diesel into the marketplace.

Bio-diesel fuels are methyl or ethyl esters. Esters are oxygenated organic compounds derived from a broad variety of renewable sources such as vegetable oil, animal fat and cooking oil that can be used in compression ignition engines. Some of their key properties are comparable to those of diesel fuel. "Soy Methyl Ester" diesel ("SME" or "SOME"), from soybean oil, is the most common bio-diesel in the United States while "Rape Methyl Ester" diesel ("RME"), from rapeseed (Canola) oil, is the most common bio-diesel fuel available in Europe. Bio-diesel is produced by a process called transesterification: where various oils are converted into methyl esters through a chemical reaction with methanol in the presence of a catalyst such as sodium or potassium hydroxide.

There are several reasons to consider using bio-diesel. It reduces our dependency on petroleum-based fuels. Bio-diesel has the potential to provide emission reductions with direct emission advantages for current engines and potential to retrofit older technology engines. Bio-diesel provides lubricity improvements for the fuel system and engine components over conventional diesel fuels and finally, production of bio-diesel could boost domestic industries such as farming and fuel production facilities.

While it is possible to run a diesel engine on 100% bio-diesel, there are several concerns about using fuel at this level. Initially, 20% bio-diesel/80% regular diesel was seen at a practical target but even this has been reduced to only 5% bio-diesel because of vehicle manufacturer concerns. Even at 5%, bio-diesel could extend our non-renewable fuel resources greatly. Currently, much of Europe is using 5% bio-diesel but there are some slight differences in their vehicles to ensure good driveability.

One of the concerns with using bio-diesel has to be its cloud point. One hundred percent (B100) Bio-diesel starts to "cloud" or solidify at zero degrees C. This compares to regular #2 diesel with a cloud point of –15 C. Blending regular diesel with 5% bio-diesel keeps the cloud point near -15 C so there is negligible effect on vehicle operation. However, fuel line heaters and fuel tank heaters are used on some European vehicles to keep the fuel liquid at cold temperatures.

Another disadvantage of Bio-diesel is that B100 has an energy content about 11% lower than that of petroleum-based diesel fuel resulting in a loss of approximately 5-7% in maximum power output. This disadvantage is much less when 5% bio-diesel is used. Even though it has less energy, bio-diesel fuel has higher viscosity than petroleum-based diesel fuel, which tends to reduce injection pump barrel/plunger leakage and slightly improve injector efficiency.

The cost of Bio-diesel fuels varies depending on the basestock, geographic area, variability in crop production from season to season, production facilities and many other factors. This cost may be reduced if relatively inexpensive feedstock, such as waste oils or rendered animal fat, is used instead of soybean, corn or other plant oil - but still, the average cost of bio-diesel fuel still exceeds that of petroleum-based diesel fuel. However, the cost of converting to bio-diesel blends is much lower than the cost of converting to any other alternative fuel because no major engine, vehicle, or dispensing system changes are required.

Another advantage of bio-diesel is lower emissions. There is no significant sulphur content, and if we were able to use 20% bio-diesel, we would have only a +2% increase in NOx emissions but have 12% lower in particulate emissions, 20% lower in Hydrocarbon emissions and 12% lower in carbon monoxide emissions.

Bio-diesel is not coal slurry, raw unprocessed vegetable oil, used cooking oil from McDonalds or raw vegetable oil mixed with diesel. It is a processed fuel from renewable resources. While there is still much to learn about long term use of bio-diesel and how best to store the fuel, research is ongoing around the world. As petroleum-based fuels continue to increase in price, the attractiveness of using of bio-diesel will grow. Maybe those exhaust fumes will smell better too!

Researchers Work on Alternative Jet Fuel

2006-06-21T00:09:00.000-07:00

The spike in oil prices has prompted plenty of drivers to consider biodiesel-powered or hybrid cars for their daily commute, but what about that gas guzzler we use to fly across country?

Government and corporate researchers are looking into ways to power commercial jet engines with alternative fuels, although many caution that widespread use could be years or even decades away.

Scientists face myriad obstacles, including the difficulty of producing, transporting and using massive amounts of these fuels under harsh conditions such as extreme cold. And for now at least, experts say many alternative jet fuels are more expensive than traditional ones.

"It's just so much easier to develop a fuel for automobile applications than for airplane applications," said Billy Glover, director of environmental performance for Boeing Co.

Still, rising oil prices are prompting increased interest, giving some researchers hope their preliminary efforts will someday pay off.

Boeing researchers say the practical concerns go beyond just the rising cost of jet fuel.

"We are interested in alternative fuels because we want to make sure that there's fuel available for the future," Glover said.

Today, most commercial airplanes use a fuel similar to light kerosene. It's heavier than the gasoline in most cars but not as heavy as diesel fuel, and is designed for the particular rigors of plane travel, such as cold conditions.

One alternative researchers are studying is biodiesel, which can be made from soybeans, corn and other products, and is used in some cars and trucks today.

A big problem, though, is that biodiesel freezes at a much higher temperature than traditional fuel, which could spell trouble in the frigid air at 35,000 feet.

Scientists are working on ways to keep the fuel from freezing so readily. But even if such efforts are successful, another big issue is supply. Scientists say there just isn't enough U.S. farmland to produce the crops needed to power jetliners, in addition to feeding people.

Robert Dunn, a U.S. Department of Agriculture chemical engineer who is studying biodiesel jet fuel, said he doubts airlines will be interested until it gets cheaper.

"The main challenge right now is economics," Dunn said. "Even though the price of petroleum is going up, biodiesel is still at a disadvantage economically. It simply costs more to produce."

Glover thinks it's more likely that airplanes would fly with a mix of biodiesel and traditional fuel.

Another option, which has been considered for decades, is whether jetliners could run on hydrogen. Gerald Brown, a senior research engineer with NASA Glenn Research Center in Cleveland, Ohio, said it would require relatively little modification to run a regular jet engine using liquid hydrogen. The hard part is storing it on board.

Liquid hydrogen has to be stored at minus 424 degrees. While lighter, it also takes up far more space than regular jet fuel. Airplanes would have to be redesigned to accommodate it.

Also, since hydrogen occurs mainly in combination with other elements, such as water, it's costly and takes a great deal of energy to produce it.

Since the Hindenburg disaster of 1937, there have been worries about hydrogen's explosive qualities. But Stan Seto, an engineer with consulting firm Belcan Corp. who has researched airplane fuels, said people now have decades of experience handling such fuel, so that's not a primary worry.

Hydrogen burns cleanly, releasing water as a combustion product. But Glover said that actually could be a concern: the amount of water released by a high-flying, hydrogen-powered jet could turn it into a cloud-making machine.

"The dynamics of the upper atmosphere are pretty complex, so you wouldn't want to do that without understanding that that was actually a good thing," he said.

Another option, which is in limited use today, is to run airplanes on synthetics, made by turning coal, oil shale or natural gas into a liquid that can act like traditional jet fuel. Chi-Ming Lee, chief of the combustion branch at NASA Glenn Research Center, said rising oil prices mean synthetics could be a cheaper alternative.

But Glover said synthetics currently require more resources to produce than traditional jet fuel.

Still, Lee says synthetics could be used in ultra-efficient jet engines that are under development today, potentially saving energy. Another advantage is the U.S. has large coal and natural gas reserves.

Although research into commercial jet fuel alternatives is still in the early stages, some expect quicker success in using alternative fuel for specialized aircraft.

AeroVironment Inc., based in Monrovia, Calif., is at work on the Global Observer unmanned surveillance aircraft that would be powered by liquid hydrogen. Spokesman Steven Gitlin said liquid hydrogen allows the aircraft to fly about four times longer than traditional jet fuel, although it is two to four times more expensive.

AeroVironment also developed - and successfully flew - a solar-powered aircraft, although the Helios Prototype crashed in later flight tests because of structural problems.

In the immediate future, the focus remains on making traditional airplanes more fuel-efficient. Boeing says its new 787 jetliner, scheduled to enter service in 2008, promises to be as fuel-efficient per person as a hybrid car traveling with two passengers.

"We try to build the most fuel-efficient airplane, so we need as little as possible fuel to meet the demand," Glover said.

Ford Motor working with Asian governments on biofuel use - report

2006-06-21T00:07:00.000-07:00

KUALA LUMPUR (AFX) - Ford Motor Co is working with several Asian governments, including Malaysia, on the use and development of biofuels, which are considered as alternative sources of fuel, the New Straits Times reported, quoting Ford Malaysia Sdn Bhd managing director Michael J. Pease.

Pease said the gas fuels being discussed include liquefied petroleum gas and compressed natural gas.

'The move in the Asian region to look at biofuels is a good first step although there is a need to find a balance between affordability of cars and fuel prices,' he added.

Pease said that although Ford is committed to helping its Malaysian customers in the face of rising fuel costs, its hybrid model may not be affordable in the local market.

'We are therefore intent on providing fuel-affordable vehicles to Malaysia,' he added.

The government had said that biodiesel is scheduled to be commercially available in the country by early 2007.

Malaysia IJM Plantations in JV with CTI Biofuel to set up biodiesel plant

2006-06-21T00:05:00.000-07:00

KUALA LUMPUR (AFX) - IJM Plantations Bhd said it has signed a 60:40 joint venture agreement with CTI Biofuels Malaysia (CTIBM) to build, own and operate a biodiesel plant in Sandakan, Sabah for the manufacture and sale of biodiesel.

In a statement, the plantation firm said its unit IJM Biofuel Sdn Bhd, the joint venture company which will undertake the operation of the biodiesel plant, will have an issued and paid-up capital of 2.5 mln rgt, comprising 2.5 mln ordinary shares of 1.0 rgt each.

The plant, it added, will be installed on a modular basis to achieve production capacity of up to 90,000 metric tons per annum of biodiesel, with an estimated project cost of 74 mln rgt.

'The first of the three modules, for production of 30,000 (MT) per annum, is expected to be operational in the first quarter of 2007,' it said.

CTIBM is a 95 pct subsidiary of CTI Biofuels, LLC, which is a wholly-owned subsidiary of Capital Technologies Incorporated of USA.

(1 usd = 3.69 rgt)

Chevron Creates Biofuels unit

2006-06-20T23:51:00.000-07:00

SAN RAMON, Calif (AFX) - Chevron Corp said it has formed a biofuels business unit to advance technology and pursue commercial opportunities related to the production and distribution of ethanol and biodiesel in the US.

In Galveston, Texas, the company held a groundbreaking ceremony to inaugurate construction of one of the first large-scale biodiesel plants in the US.

'Biofuels are a growing component of the world's energy base and will be an active part of Chevron's efforts to help diversify the world's energy supplies. Chevron's capabilities and experience in producing and distributing high-quality fuels make us ideally positioned to pursue opportunities in this sector as it expands,' said Donald Paul.

The biofuels business unit will operate within Chevron Technology Ventures (CTV), a corporate subsidiary dedicated to identifying, developing and commercializing emerging energy technologies.

Mike Wirth, executive vice president, Downstream, said, 'Chevron is already active in biofuels, with our marketing assets and experience blending ethanol in our gasoline. We are enthusiastic about the opportunity to further extend biofuels across Chevron's integrated operations.'

In the US, Chevron currently blends about 300 mln gallons of ethanol per year for use in gasoline blends.

In January, the company announced it is participating in an E85 demonstration project with the state of California, General Motors and Pacific Ethanol. The project will study performance, efficiency and environmental issues over a one-year period using California-formulated E85, a renewable fuel comprising 85 pct ethanol and 15 pct gasoline.

In May, Chevron announced its investment in Galveston Bay Biodiesel (GBB). This Houston-based company is constructing a biodiesel production and distribution facility in Galveston, scheduled for completion by the end of 2006.

GBB will produce biodiesel from soybeans and other renewable feedstocks and is expected to have initial production of 20 mln gallons per year.

Biofuel Benefits Go Beyond Environment

2006-06-20T23:45:00.000-07:00

Climate change and energy security priorities have created a policy framework that will produce a rapid expansion of the biofuels market, despite marginal economics.

Biofuel currently come in two forms:

-- Ethanol: Ethanol is made using a plant feedstock such as corn, beetroot, sugar beet or sugar cane and fermenting it. It can be used directly in pure ethanol-fired cars or be blended with gasoline at the pump to make "gasohol." Alternatively, ethanol can be combined with isobutylene to create ETBE (ethyl tertio butyl ether). ETBE is less volatile than ethanol and can be blended at the refinery, thereby avoiding the investment needed to allow blending at the pump.

-- Biodiesel: Biodiesel is made by combining raw vegetable oil with methanol to make a vegetable oil methyl ester (VOME). This can be used directly as fuel or blended with petroleum diesel.

The development of the biofuel industry is likely to prove rapid as government incentives drive forward what is still only a marginally economic product. There are three reasons behind this:

-- Security of supply: Increasing demand for oil has increased competition for existing oil resources by reducing global spare capacity, raising prices dramatically. Biofuels in most countries can be grown and processed domestically, providing an almost zero risk source of supply.

-- Climate change targets: Biofuels are cleaner than traditional fuels. In addition, biofuels are renewable and consume carbon dioxide as they are grown, offsetting that produced when burnt as fuel. Views are divided over the complete carbon life cycle of biofuels. Nevertheless, they are favored politically as one of the few means of "greening" the transport sector.

-- Import substitution and new exports: Many countries dependent on refined oil products have stimulated domestic biofuel production as a means of reducing rising oil import bills.

Both developing and developed countries are tightening their fuel specifications. In addition, governments are setting specific targets for biofuel use. Increasingly, these are being made mandatory. Developing economies are also promoting and subsidizing biofuel production. In tropical countries, the economics of biofuel are competitive with imported or locally refined petroleum fuels. However, in other countries they are generally dependent on subsidies and tax incentives.

Despite high oil prices, diesel remains cheaper than the raw material for biodiesel, though the gap has been much reduced. Some refiners argue that biofuels are more expensive than oil products at any conceivable sustained oil price scenario. Biofuels are dependent on fiscal incentives and have to demonstrate their benefits to society in other terms. However, benefits such as greenhouse gas emissions reductions or security of supply are not undisputed.

Biofuels bring energy and agricultural markets into direct competition. While this may serve to keep biofuel production costs high, there are possible policy trade-offs between agricultural subsidies and biofuel incentives.

Malaysian-German Partnership To Build Biodiesel Plants

2006-06-18T23:16:00.000-07:00

February 16, 2006 Johor Bahru, Malaysia [RenewableEnergyAccess.com] Two new biodiesel plants to be built by a Malaysian-German partnership will be located on a 20 hectare site at Tanjung Langsat Industrial Area in Johor Bahru and the other at Singapore's petrochemical hub of Jurong Island. The biofuel partnerships call for Kulim holding 51% in the Johor plant while CremerOleo would take up the rest. The German company would have majority stake in the Singapore facility.

Diversified palm oil group, Kulim (Malaysia) Berhad, sealed its partnership with Germany's CremerOleo GmbH & Co., as they plan to set up plants in Johor and Singapore to produce biofuel and other downstream specialty chemical derivatives this year.

"Seen through the eyes of a producer and raw Thmaterial supplier, biodiesel is a local business around the world. However, as a fuel it is also part of the global energy network. With our production and trade of bio commercialize fuels we help to integrate and commercialize renewable energy in these global markets," said Thomas Cremer, managing director of Cremer Gruppe.

The plants will have total capacity of 200,000 tons per annum -- 100,000 tons in Tanjung Langsat and 100,000 tons in Jurong -- producing methyl esters for biodiesel and glycerin as byproduct bound for the export markets, mainly the European Union countries. Both plants are expected to be in production as early as 2007.

According to the release, as global demand for biodiesel is expected to exceed 10 million tons in the next few years. Datuk Peter Chin Fah Kui, a Plantation Industries and Commodities Minister, said recently that Malaysia can be positioned to capture at least 10% of the overall market.

"We definitely want to have a slice of this lucrative market," said Ahamad Mohamad, managing director of Kulim. "In the European Union for example, biodiesel production almost doubled from 1.06 million tons in 2002 to 1.93 million tons last year. In the U.S., biodiesel output has gone from 500,000 gallons in 1999 to 25 million gallons in 2004."

The Malaysian government, in public support of its country's biodiesel production capacity, is drafting a national biofuel policy and will trial biodiesel on state-owned diesel-powered transport vehicles from three of its ministries: defense, transport and plantation.

Biodiesel in San Francisco

2006-06-17T02:43:00.000-07:00

San Francisco starts using Biodiesel as an alternative fuel for buses.
[Link]

Cambridge University have developed a new continuous process for converting waste food processing oil into bio-diesel fuel.

2006-06-17T02:39:00.000-07:00

Researchers at the Chemical Engineering Department at Cambridge University have developed a new continuous process for converting waste food processing oil into bio-diesel fuel. Bio-diesel is an environmentally friendly alternative to fossil fuel and it may be used in any conventional, unmodified diesel engine. The basic chemistry of bio-diesel production has been known for some time but it is normally carried out as a batch process.

By applying the Oscillatory Flow Mixing (OFM) technology developed at Cambridge it has been possible to design a continuous production plant. OFM technology is used not only in the esterification reaction but also in the washing and purification stages that are vital to produce a product that can be used in modern engines.

A pilot plant is now fully operational which can produce about 3 litres per hour of high quality diesel fuel with a flash point well in excess of 100o C and a Cetane number of about 53. The pilot plant can be used to test a wide variety of feed stocks and has recently been used for fresh rape seed oil, waste oil from a doughnut cooking operation and another waste food processing oil.

Sufficient information has been obtained form the pilot plant to enable the design of commercial scale plants.

More information: http://www.cheng.cam.ac.uk/news/2002/biodiesel2002.html

Using Microtechnology to Make Biodiesel

2006-06-17T02:38:00.000-07:00

Farmers are working with scientists from Oregon State University to make biodiesel from their own soybean, canola, rape and mustard seed crops. Using microtechnology, the scientists have developed a new, faster way to create biodiesel. Goran Jovanovic, professor of chemical engineering at OSU, serves as lead investigator in the research. Jovanovic keeps a design prototype in a sandwich bag in his office. It's a plastic plate with 30 microreactor channels running parallel to each other, each about the width of a human hair. The entire plate can easily fit in the palm of a hand.

At one end of the plate are two indents. Jovanovic fills one with alcohol and the other with oil. They flow down the channels, reacting and producing glycerol — a common ingredient in soap and biodiesel.

He noted that microtechnology produces biodiesel about 100 times faster than the classical method. Another benefit is the small size of the plates, which makes the microreactors discrete and deployable.

Tiny Reactor Boosts Biodiesel Production

2006-06-17T02:37:00.000-07:00

A tiny chemical reactor that can convert vegetable oil directly into biodiesel could help farmers turn some of their crops into homegrown fuel to operate agricultural equipment instead of relying on costly imported oil.

"This is all about producing energy in such a way that it liberates people," said Goran Jovanovic, a chemical engineering professor at Oregon State University who developed the microreactor.

The device - about the size of a credit card - pumps vegetable oil and alcohol through tiny parallel channels, each smaller than a human hair, to convert the oil into biodiesel almost instantly.

By comparison, it takes more than a day to produce biodiesel with current technology.

Conventional production involves dissolving a catalyst, such as sodium hydroxide, in alcohol, then stirring it into vegetable oil in large vats for about two hours. The mixture then has to sit for 12 to 24 hours while a slow chemical reaction forms biodiesel along with glycerin, a byproduct.

The glycerin is separated and can be used to make other products, such as soaps, but it still contains the chemical catalyst, which must be neutralized and removed using hydrochloric acid, a long and costly process.

The microreactor under development by the university and the Oregon Nanoscience and Microtechnologies Institute eliminates the mixing, the standing time and maybe even the need for a catalyst.

"If we're successful with this, nobody will ever make biodiesel any other way," Jovanovic said.

The device is small, but it can be stacked in banks to increase production levels to the volume required for commercial use, he said.

Biodiesel production on the farm also could reduce distribution costs by eliminating the need for tanker truck fuel delivery, part of the growing effort to meet fuel demand locally - instead of relying on distant refineries and tanker transport.

"Distributed energy production means you can use local resources - farmers can produce all the energy they need from what they grow on their own farms," Jovanovic said.

President Bush Backs Biodiesel

2006-06-17T02:35:00.000-07:00

April 25, 2006…Washington, D.C. President George W. Bush today touted biodiesel as a key component of his plan to confront high fuel prices. A farmer-leader of the American Soybean Association (ASA) participated in a renewable fuel summit hosted by the Renewable Fuel Association (RFA) today in Washington, D.C., where the President announced his plan.

"It’s truly rewarding to hear the President of the United States include biodiesel in his plan to address skyrocketing fuel prices," said ASA past-President Bart Ruth, who represented ASA at the RFA summit. "ASA has long advocated that farmers stand ready to help address our nation’s energy needs, and the President validated that point again today."

During his remarks, the President impressed upon listeners the need to continue investing in alternative fuels. He said,"…research and development has lead to new alternative sources of energy like biodiesel. So that’s one of the reasons why I signed into law the first ever federal tax credit for biodiesel producers. In other words, we’re interested in addressing our energy security on a variety of fronts. It makes sense for the United States to have a comprehensive strategy to help us diversity away from oil."

ASA led the charge to enact the biodiesel tax credit in October 2004, as part of the JOBS Act. Ten short months later, the ASA convinced Congress to extend until 2008 this critically important biodiesel provision, which would have expired at the end of this year.

ASA is currently working to extend the biodiesel tax incentive beyond 2008. To that end, ASA supports S. 2401, introduced by U.S. Senators Chuck Grassley (R-IA) and Max Baucus (D-MT), and H.R. 2498, introduced by U.S. Representative Kenny Hulshof (R-MO). Both pieces of legislation would extend until 2010 the biodiesel tax incentive.

"Extending the biodiesel tax incentive beyond 2008 is one action Congress can take to help reduce our nation’s dependence on foreign oil. It’s a top priority for the ASA, and we urge our supporters in both chambers of Congress to cosponsor these vitally important measures," concluded Ruth.

ASA is the policy advocate for 25,000 U.S. soybean producers on domestic and international issues of importance to all U.S. soybean farmers.

Chevron Invests In Texas Biodiesel Plant

2006-06-17T02:20:00.000-07:00

Renewable fuels received a big boost from the country's second largest oil company. After an investment in ethanol fuel, Chevron acquired 22% of a Texas soybean biodiesel plant, meaning that biodiesel production in the U.S. will increase over 50%.

Chevron acquired 22% of Galveston Bay Biodiesel's facility in Galveston, Texas. It produce up to 100 million gallons a year of biodiesel, a fuel that is made from components of soybean oil. The plant will boost U.S. biodiesel output by 54%.

"The Galveston plant will treat soybean oil with chemicals to extract esters, which will be processed into diesel that is indistinguishable from petroleum-based diesel.

"This is a niche sector for us," Chevron spokesman Leif Sollid said.

"The investment follows Chevron's January announcement of plans to begin selling fuel made mostly from corn-based ethanol this summer in California. With crude oil approaching $75 a barrel, President Bush is encouraging production of biodiesel and ethanol as alternatives to petroleum-based fuels."

"The federal government indirectly subsidizes the biodiesel industry by giving refiners a $1-a-gallon tax credit for diesel made from fresh vegetable oil and a 50-cent-a-gallon credit for each gallon made from recycled grease."

Source: http://www.planetizen.com/node/19776

State biodiesel plant will be world's largest

2006-06-17T02:19:00.000-07:00

WASHINGTON -- A French company is about to begin building the world's largest biodiesel plant in Indiana, doubling the nation's capacity to make the alternative fuel.

Gov. Mitch Daniels on Wednesday announced the state would provide $6 million to $7 million in tax credits and other incentives to agribusiness giant Louis Dreyfus Corp. to build the plant near Claypool.
The project, which was announced last year, combines a soybean processing plant with a biodiesel production plant. The facility will crush nearly 50 million bushels of soybeans a year, producing more than 1 million tons of soybean meal for animal feed and 80 million gallons of biodiesel.
Biodiesel can be made from vegetable oil, recycled grease and slaughterhouse waste. It typically is mixed with conventional diesel, and it requires few or no alterations for use in vehicles with diesel engines.
More than 35 biodiesel plants operate in the United States. Many more are planned or under construction, including others in Indiana, according to the National Biodiesel Board. The concern is that supply is expanding faster than demand.
But Erik Anderson, chief executive officer of Louis Dreyfus Commodities North America, is not concerned.
"There's going to be a lot coming on, but we believe the demand will be there for it," Anderson said. "That's why we want to be investing and investing large, early."
Daniels, who made the announcement while attending a renewable energy summit, said the plant marks the biggest step forward for the state in a year in which Indiana has gone from "almost nowhere" to being a leader in renewable fuels.
Anderson said the company looked for a long time and picked Indiana for several reasons, including the abundance of soybeans, competitive truck and rail access to feed markets, and support from state officials.
The incentives include up to $95,000 in training grants, $137,500 in infrastructure assistance to the local community, and up to $5.295 million in tax credits. That's in addition to local incentives the company is receiving, as well as a federal biodiesel tax credit.
The federal government has been increasing its support for alternative fuels to try to reduce the nation's dependence on foreign oil.
Construction is expected to begin within weeks and be completed within 18 months.
The plant is expected to employ about 85 people, but the larger economic impact will be to the state's agricultural economy.
Although Indiana is the fourth-largest soybean-producing state and the fifth-largest corn-producing state, it has lagged behind other states in biofuels.
At the beginning of last year, Indiana had only one ethanol plant. Today, six ethanol plants and two other biodiesel plants are under construction, with more on the way.
Daniels' administration has targeted agriculture and biofuels to try to improve the economy and increase jobs. To continue the growth, Daniels said he plans to ask state lawmakers to expand the tax credit it approved last year for the industry. He didn't rule out additional incentives, as well as possible usage mandates.
"We're deadly serious about this objective and thrilled about our progress," Daniels said. [Source]

$75 million biodiesel facility will be built in Walla Walla

2006-06-01T20:08:00.000-07:00

A $75 million biodiesel facility will be built in Walla Walla, officials with Chemical Consortium (ChemCon) Holdings Inc. said Tuesday.

The facility will be built at the Port of Walla Walla's Burbank Industrial Park and will produce 200,000 tons, or 60 million gallons, of biodiesel fuel each year, ChemCon said. ChemCon will sign a 30-year lease after conducting due diligence on the site, officials added.

ChemCon officials said that they'll take advantage of canola grown in the area, which they said was "the best feedstock for this type of facility."

"This location ... will allow transportation from sea, rail and truck. It also provides close proximity to the fuel terminals in Seattle and Portland," said J. Greig, CEO of Chemical Consortium Holdings, in a statement.

When completed, the facility will employ "approximately 30" employees.

Published May 23, 2006 by the Puget Sound Business Journal

Biodiesel Versus Ethanol?

2006-06-01T20:03:00.000-07:00

Ethanol is normally added to gasoline (at the 5-10% level) in many parts of the world. Current ethanol production in Canada for example, is about 200 million liters per year whereas gasoline consumption for the same year is about 38 billion liters. In the US, Ethanol is produced and used as an additive to gasoline to reduce air pollution, decrease dependence on imported oil and encouraging rural development.

Biodiesel is made from vegetable oils or animal fats, and involves a process wherein these oils and fats are reacted with alcohols in the presence of a catalyst to produce alcohol esters.
The products of this process are methyl or ethyl esters of fatty acids are called biodiesel. Because it is less viscous than the original oil or fat, it makes a better fuel for diesel engines. Western Europe is the main production area of biodiesel, where over 1.4 billion liters is produced annually. Biodiesel is added to diesel fuel to reduce air pollution but because it is more expensive, requires government subsidies to be actually used.

There are of course, controversies about fuel ethanol. One is, ethanol is more expensive than gasoline and needs incentives to compete, but this is apparent only to formative stages of research and implementation. Mature economies using ethanol such as Brazil, do not have subsidies. Process-wise, ethanol production is costly because of the cost of fermentation and the cost of developing move valuable co-products (such as electricity) to help offset the cost of ethanol production. Therefore, finding ways to reduce these costs would move ethanol production and use forward.

Another issue is efficiency. Using crops to produce ethanol has been found to be efficient and the efficiency ratings have been improving in the last 20 - 25 years or so. For example, studies showed that the energy costs to produce corn grain dropped from 3.36 GJ/t (gigajoules per tonne) in 1975 to 1.69 GJ/t in 1991. The cost of producing ethanol is now decreased significantly because the cost of raw materials decreased. The potential to reduce the energy costs of ethanol production also exists. High gravity fermentation for ethanol production will reduce energy and economic costs.

Some people question whether the production of ethanol will compete with the supply of food. Think of Canada for instance. If we replace 10% of the total gasoline used with ethanol, we are looking at 3.8 billion liters of ethanol! This would have a significant effect on food supply if ethanol is produced from grain. Thankfully, there are other sources of raw materials for ethanol production which could supplement or substitute grains if indeed ethanol production goes in the way of food supply.

Biodiesel on the other hand, is based on prices of vegetable oils and animal fats. Biodiesel has about 91% the energy value of diesel fuel and about 20 to 30% more expensive than diesel. Intuitively, this puts biodiesel at a price disadvantage. Large tax reductions and subsidies would be needed to make biodiesel competitive.

Another issue about biodiesel is the availability of oils and fats that can be used to produce it. Unlike ethanol which can be produced from grains and other cellulosic materials which can be expanded immensely, biodiesel cannot. And this posses a larger problem in terms of wider public acceptance for biodiesel.

Biodiesel around the World

2006-05-21T16:35:00.000-07:00

This page describes the use and availability of Biodiesel in various countries around the world. More information on biodisel can be found at the Biodiesel page.

Biodiesel Plants

2006-05-21T16:34:00.000-07:00

A list of biodiesel plants in the world [Link]

Cavalier County: Investors research plant for biodiesel

2006-05-21T15:22:00.000-07:00

With 180,000 acres planted last year, Cavalier County was the largest grower of canola in the state.

So, it's only logical that it would be a fitting location for a biodiesel plant that uses canola.

That is precisely the hope of potential investors who are investigating that possibility. Northern Prairie EnviroFuels L.L.C. has hired a Bismarck-based engineering firm to conduct a study of building a 'locally owned, high-capacity' biodiesel plant that uses canola as its feedstock.

The facility likely will be built in Cavalier County, which grows more than 20 percent of the state's canola.

The investors officially aren't known, because Northern Prairie isn't registered with the state's Secretary of State office, and representatives want to keep the names confidential. It's a mix of farmers and businessmen, said Mark Luther, the representative of the engineering firm of Kadrmas, Lee & Jackson, which is doing the study.

Tom Borgen, a Langdon farmer and secretary-treasurer of Northern Canola Growers, said his group isn't involved. He said there are two independent investor groups involved, one from the Munich-Langdon area and one from the Hallock, Minn., area.

Bryan Anderson, senior vice president of the First State Bank of Munich, said more information will be released after the feasibility study. 'We're in the early stages, so we don't want to get too far ahead of ourselves,' he said.

Luther said a plant could be operational as early as the fall of 2007.

'We're real optimistic that the feasibility study will turn out good,' he said. 'It's our hopes that we would have the capital raised and would start construction by this fall. That way, the farmers will know by spring if they can plant extra acres and have a plant available for their crop.'

He said the investors' group has been in the planning stages for more than a year, with his firm coming on board in the past month. Kadrmas, Lee & Jackson have been involved in the building of biodiesel plants in North Dakota and Montana.

The feasibility study will look at sites, quality and quantity of feedstocks, labor force and transportation.

Canola has become the preferred stock for biodiesel because it performs better than soybeans, Borgen said. Canola has properties that perform better in colder temperatures, he said. It also has twice as much oil content as soybeans, meaning factories have to handle only half of the product.

'All of the attributes that make a good, healthy oil also made a good biodiesel,' Borgen said.

There's a third reason, Luther said.

'Canola-based is the only one that meets European specifications,' he said. 'We want to have that option. If the local market isn't large enough, we want the option to export.'

Luther said production and employment levels are still uncertain and dependent upon the study. A benchmark might be the Archer Daniels Midland Co. plant in Velva, N.D., which broke ground in April and will make 85 million gallons of biodiesel annually from canola. The Velva plant, which will employ 12 people full-time, will use about 1 million acres of canola each year.

North Dakota's entire canola acreage last year was 850,000 acres.

Co-product from biodiesel production: Glycerine Renenue

2006-05-19T17:36:00.000-07:00

The primary co-product from the production of biodiesel is glycerine. Glycerine is a clear, odourless and gel-like susntance that is comonly used in products such as pharmaceuticals, toothpaste, and cosmetics. It is usually defined as any product whose primary component is glycerol. It can be produced naturally as a co-product of fatty acid, fatty alcohol, or biodiesel production. As well, it can be produced synthetically. The production of biodiesel creates crude (low grade) glycerine that can be purified further at the plant site or sold to refineries that continue purification and in turn sell the glycerine for use as a raw material in other products.

Glycerine markets are renowed for their complecity and unpredictabiliyt. The demand, supply, and pricing of glycerine is determined through world market forces. Because glycerine is produced primarily ad a co-product, demand for the primary products influences the amount of glycerine produced. For example, in Europe the demand for biodiesel influences the amount of glycerine available for sale. As well, there are hundreds of potential end uses for glycerine, some of which can use competing products.

Glycerine has a variety of characteristics that make it ideal for numerous applications. Glycerine can remain colourless and odourless for a long period of time. When cold, glycerine does not freeze, but merely gels. Glycerine is about 55% to 75% as sweet as sugar. It is also non-toxic and does not irritate the skin.

Although glycerine has more than 1,500 uses, many prominent applications can be segmented into the categories of oral-care, food, tobacco, urethane foams, and pharmaceutical products.

Demand estimates for the consumption of glycerine by source type for Europe and North America is estimated at 50 to 60 % for vegetables/synthetic kosher quality of which 40 to 50 % is vegetable kosher only.

Some of the highest quality glycerine produced in the world us supplied by Malaysia and Indonesia. Both countries are big producers. Their glycerine is predominantly kosker certified and is produced from palm oil, whereas U.S> production is primarily synthetic or tallow based.

The glycerine produced by biodiesel plnats is a crude glycerine. In order to attract the higher prices of purified glycerine it must be upgraded.Crude glyrine can contain up to 10% water, 10% ash and 2.5% of other organic materials. It is generally upgrade by vacuum istillation or ion exchange refining. Both approahces increase the capital and oeprating costs of the biodiesel operation.

Chevron Invests in Large-Scale Texas Biodiesel Facility

2006-05-16T13:14:00.000-07:00

SAN RAMON, Calif., May 11, 2006 -- Chevron Corporation (NYSE: CVX) today announced it has invested through a subsidiary in a Texas-based company that is building one of the first large-scale biodiesel plants in the United States. The facility will have the potential to produce 100 million gallons per year of this clean-burning renewable fuel – an amount that would more than double the current production volume of biodiesel in the United States.

Chevron, through its subsidiary, Chevron Technology Ventures LLC (CTV), has taken an equity position in Galveston Bay Biodiesel LP (GBB). The Houston-based company is constructing a biodiesel production and distribution facility in Galveston, Texas, scheduled for completion by the end of 2006.

GBB will produce biodiesel from soybeans and other renewable feedstocks. GBB has the option to sell pure biodiesel or biodiesel blended with off-road or on-road diesel into marine, commercial, trucking and industrial markets in the Galveston and Houston metropolitan areas.

"This investment is another example of how Chevron takes a proactive, practical approach toward the development of emerging new energy sources," said Don Paul, vice president and chief technology officer, Chevron Corporation. "We believe biofuels are a component of the diversification of the fuel supply to meet future energy demand."

GBB will have initial production of 20 million gallons per year, representing almost a 27 percent increase in total U.S. biodiesel production of 75 million gallons in 2005. The facility has the capability to expand operations to produce 100 million gallons of fuel per year.

"The biodiesel industry in North America is at an early stage of development, typified by small operations producing small quantities of fuel. This is an opportunity to engage in one of the first large-scale biodiesel production operations, providing renewable fuel to industry in Galveston, Houston and surrounding areas," said Dana Flanders, president of CTV. [Press Releases]

Turning sewage into biodiesel in New Zealand

2006-05-16T13:13:00.000-07:00

New Zealand's Aquaflow Bionomic announced late last week that they have successfully produced a sample of biodiesel from wild algae in sewage ponds. This announcement means Aquaflow Bionomic is the first to get the fuel from algae that were not specially grown in the laboratory. The algae clean the sewage water (or industrial waste streams from farmers or food processors) while making the biofuel. A company spokesman said, "The market potential for this product is almost unlimited in the peak-oil environment we are in."

Aquaflow Bionomic processes the algae into a pulp and then extracts liquid oils and turns it into biodiesel. The company expects to be producing a million liters of biodiesel a year once the program gets up and running next April.

Clean Energy Technology Creates Jobs

2006-05-16T11:40:00.000-07:00

Check out this very well done article by Joel Joel Makower of Clean Edge entitled, "Clean Technology: Where the Jobs Are" here.

Suncor Energy signs biodiesel contract with Toronto Transit Commission

2006-05-16T11:18:00.000-07:00

Ontario (May 9, 2006) – Suncor Energy Products Inc. and the Toronto Transit Commission (TTC) have teamed up to help clear the air in Toronto. An agreement has been reached for Suncor to supply biodiesel to the TTC’s fleet of 1,491 buses. This sales agreement extends to December 2007.

Suncor biodiesel is an environmentally responsible diesel fuel created by blending petroleum diesel with soy-based biodiesel. Biodiesel reduces carbon monoxide and particulate emissions, which are major contributors to smog.

Over the next 20 months, Suncor will supply the TTC with over 120 million litres of this cleaner burning fuel.

"Suncor's unique 'in-line' blending process will deliver a higher quality and cleaner-burning fuel to the TTC," said Don Smith, director of distribution operations and national sales for Suncor.

Residents of the Greater Toronto area will benefit from this agreement. "Using biodiesel fuel in TTC buses will contribute to cleaner air in Toronto," said Smith.

The introduction of biodiesel is Suncor's next step in providing sustainable energy solutions in Ontario. This summer, Suncor will be opening Canada's largest ethanol production facility in St. Clair Township, near Sarnia. Ethanol-blended gasoline, sold at Sunoco branded retail sites across Ontario, reduces vehicle-based carbon monoxide emissions up to 30 per cent. Pending regulatory approval, Suncor expects to later this year begin construction on a 76-mega watt wind power project in Ripley, near Kincardine. This project is expected to generate enough zero-emission electricity to power 22,000 homes.

This news release contains a forward-looking statement identified by the words “to supply”, which is based on Suncor’s current expectations, estimates, projections and assumptions made in light of its experiences and the risks, uncertainties and other factors related to its business. Actual events could differ materially as a result of changes to Suncor’s plans and the impact of events, risks and uncertainties discussed in Suncor’s current annual information form, annual and quarterly reports to shareholders and other documents filed with regulatory authorities.

Suncor Energy Products Inc. is a wholly-owned subsidiary of Suncor Energy Inc., an integrated energy company. In addition to a refinery in Sarnia, Suncor Energy Products has a network of 281 Sunoco-branded retail and Fleet Fuel cardlock sites and has a 50 per cent joint venture interest in over 200 Pioneer and UPI retail sites. Suncor Energy Products Inc. manufactures, distributes and markets transportation fuels, heating oils and petrochemicals primarily in Ontario. For more information, see the Sunoco website at www.sunoco.ca or www.suncor.com.

Sunoco in Canada is separate and unrelated to Sunoco in the United States, which is owned by Sunoco, Inc. of Philadelphia. Suncor Energy (U.S.A.) Inc. is an authorized licensee of the Phillips 66® brand and marks in the state of Colorado.

Ethanol, Biodiesel Eats Into US Corn Stockpiles

2006-05-16T11:17:00.000-07:00

WASHINGTON - The booming ethanol industry will consume 20 percent of this year's US corn crop, the government forecast on Friday, and soy-based biodiesel also is taking off.

Biofuels will bolster corn and soybean prices, the Agriculture Department said in its first look at this year's crop harvest. Voracious demand for corn from ethanol makers will help cut the corn (maize) surplus in half by fall 2007, or 1.14 billion bushels.

"Renewable energy is making a difference" in the corn and soybean markets, said USDA chief economist Keith Collins.

Some 2.15 billion bushels (54 million tonnes) of this year's corn crop was projected to go to ethanol plants, up 34 percent from the 1.6 billion bushels (40.6 million tonnes) now being used yearly.

USDA projected 2.3 billion lbs (1 billion kg) of soyoil would be used in biodiesel in the year beginning Sept. 1, up 1.1 billion lbs (500 million kg) from this year.

"We may get US$3 (a bushel) corn on the farm this year," said private consultant John Schnittker, because of ethanol and a big demand for exports. It has been a decade since the season-average farmgate price was that high.

Corn and wheat futures prices shot upward at the Chicago Board of Trade, based on USDA's forecasts of smaller crops than last year and tightening supplies. At mid-day, corn for July delivery sold for US$2.57-1/2, up 10-1/4 cents a bushel. July wheat was up 11-1/2 cents, to US$4.03-1/2 a bushel. July soybeans were US$6.13-1/2, up one-half cent.

There are nearly 97 ethanol plants in the United States with a capacity of 4.5 billion gallons (17 billion liters) a year. There are 44 projects under way that will add 1.4 billion gallons of capacity this year, says an industry trade group. Production in 2005 totaled 3.9 billion gallons (14.8 billion liters).

"We believe that by early 2007, we're going to be producing at a rate of 6.5 billion gallons (24.6 billion liters) a year," said Collins, requiring 2.15 billion bushels of corn.

Based on surveys of 14,800 wheat farmers and examination of wheat fields, USDA forecast a winter wheat crop of 1.323 billion bushels (35 million tonnes), down 12 percent from last year and the smallest crop since 2002 due to drought in the southern Plains.

Hard red winter wheat, the major flour class, would total 715 million bushels (19.5 million tonnes), down 23 percent from 2005 and smallest since 2002. Schnittker said tight supplies would boost prices.

With the planting season well under way, USDA projected a corn crop of 10.550 billion bushels (268 million tonnes), soybeans at a near-record 3.080 billion bushels (84 million tonnes), an overall wheat harvest of 1.873 billion bushels (51 million tonnes) and a cotton crop of 20.70 million bales weighing 480 lbs (218 kg).

The soybean stockpile would climb to a record 650 million bushels (17.7 million tonnes) by Sept. 1, 2007, despite near-record exports.

Kansas, the No. 1 winter wheat state, was forecast to reap 319.6 million bushels, compared to 380 million bushels last year. Texas will harvest 35 million bushels, one-third of last year's crop, due to drought. Oklahoma was forecast for 68.2 million bushels, half of last year.

Building mobile refineries to convert rape-seed oil into bio-diesel

2006-05-16T11:15:00.000-07:00

LONDON & PLANT CITY, FL – Kwikpower International plc, a diversified renewable energy and fuels company offering ‘carbon recycling’ solutions, and UTEK Corporation (AMEX: UTK; LSE-AIM: UTKA), an innovative technology transfer company, announced today the completion of a technology transfer to Kwikpower International in a securities exchange transaction.

The technology transferred is the licence to a process enabling the continuous conversion for onward sale of plant-based oils into bio-diesel using a mobile refinery. This system uses a tubular oscillatory flow reactor and was demonstrated for the first time at the Clean Energy Technology Show in London earlier this year. Conventional bio-diesel plants require the use of large tanks which must be emptied and cleaned after each batch.

A substantial potential market for bio-diesel has been created by the European Directive 2003/30/EU which sets a target that, by the end of 2005, 2% of all road transport should be powered by bio-fuels, aiming for 5.75% by 2010. The UK government provides a rebate of 20p on the duty of every litre of bio-diesel. The technology was developed by Professor Malcolm Mackley and his team in the Department of Chemical Engineering at the University of Cambridge and is being licensed by Cambridge Enterprise on behalf of the University.

Dr. Jim Watkins, CEO and Chairman of Kwikpower International said: “This technology transfer of the bio-diesel intensification process with Cambridge and UTEK will allow us to rapidly expand Kwikpower's opportunities in the bio-fuels markets. We see major growth opportunities in both the USA and Europe.

“Our KP Wellman engineering subsidiary is already working on integrating the new reactor design into an innovative continuous production module which will fit into a 40 ft container. This technology offers real promise to allow us to reduce the time and cost of production of bio-diesel from a variety of feedstocks, allowing bio-diesel to compete on a level playing field with crude oil derived diesel.”

Dr. Clifford M. Gross, CEO and Chairman of UTEK said: “We are very pleased to have completed our first technology transfer to a UK based company since UTEK’s admission to AIM in April this year. It demonstrates clearly that our U2B technology transfer model works well on both sides of the Atlantic and can be used by UK companies to develop their product portfolio with university discoveries.”

Biodiesel Delivery Infrastructure Model

2006-05-16T11:10:00.000-07:00

How is biodiesel manufactured?

2006-05-16T11:08:00.000-07:00

The manufacture of biodiesel is a deceptively simple process, so much so that it may be done on a small scale in a home laboratory. Operations may be scaled up to large-volume operations using the same basic process. However, for biodiesel to be marketed commercially as fuel, it must meet the ASTM Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels (D6751-02).

Here's how biodiesel is produced from vegetable oils in a non-technical nutshell: Vegetable oils are primarily triglycerides, containing 7-13% glycerin. The biodiesel process turns the oils into esters (i.e., the combustible biodiesel), and separates the esters from the glycerin. The denser glycerin sinks to the bottom and the biodiesel floats on top, facilitating separation.

The biodiesel process is called transesterification. Chemically, what happens is that alcohol (typically methanol because of low-cost simplicity of the chemical process) is used to react with the vegetable oil in the presence of a caustic catalyst (typically caustic soda -- NaOH or sodium hydroxide or lye). The caustic catalyst causes the methanol to react with the oil forming glycerin and crude biodiesel. Approximately 90% of the input oil is converted into combustible biodiesel fuel. The products are then processed further ("chemically washed") to remove excess methanol and unreacted catalyst, which may be reused. The main byproduct/co-product of the process is glycerin, which is used extensively in the cosmetic industry and for other chemical processes.

As stated in the first paragraph of this page, for biodiesel to be marketed commercially as fuel, it must meet the ASTM Standard Specification for Biodiesel Fuel (B100) Blend Stock for Distillate Fuels (D6751-02). The ASTM standard includes requirements to meet specifications for flash point (min. 130 deg/C), water and sediment (<0.05 vol %), kinematic viscosity at 40 deg/C (1.9-6.0 mm2/sec), sulfated ash (<0.02 wt %), sulfur (<0.05 wt %), copper strip corrosion (#3 max.), Cetane (47 min.), cloud point, carbon residue (0.05 wt %), acid number (<0.80 mg KOH/gm), free glycerin (<0.02 wt %), total glycerin (<0.24 wt %), phosphorous content (<0.001 wt %), and distillation temperature (< 360 deg/C).

While, small-scale biodiesel operations can produce biodiesel that will perform in diesel engines, these kinds of operations are unlikely to consistently produce ASTM-certifiable biodiesel. Using non-ASTM certified fuel in an engine increases the potential risk of plugging fuel injectors, resulting in costly repairs.

Using Soybean Oil as Feedstock:

2006-05-16T11:07:00.000-07:00

According to a recent market analysis, if soybeans are used to produce biodiesel on a small market scale, the fuel will cost approximately $0.66/liter ($2.50/gallon). Biodiesel produced at this cost is generally marketed as an additive to conventional diesel fuel and mixed to produce various biodiesel blends. The high cost (virgin oil) feedstock, such as soybean oil, is the main reason why even B10 and B20 mixtures are not as price-competitive with conventional diesel fuel, as soybean-based biodiesel producers would like. It takes about 7.3 pounds of soybean oil, which costs approximately 20 cents per pound, to produce a gallon of biodiesel. Feedstock costs alone, therefore, could be as high as $1.50 per gallon for soy biodiesel.

Malaysia Building First Biodiesel Refinery

2006-05-16T00:19:00.000-07:00

Malaysia Building First Biodiesel Refinery
24 April 2005

Bernama. The Malaysian Palm Oil Board (MPOB) and Golden Hope Plantations are partnering to build a biodiesel plant in Labu in Negeri Sembilan—the first in the country.

MPOB is investing RM 40 million ($10.5 million) in the plant, according to Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui.

Expected to be completed in three years, the plant will produce 5,000 tonnes (approximately 36.5 thousand barrels or 1.15 million gallons) of biodiesel a month.

The biodiesel is slated for export to Europe. Port Dickson, also in the state of Negeri Sembilan, is a major oil terminal and site of the largest refinery in the country (Shell Port Dickson).

Chin said the fuel could not be used in Malaysia as the existing infrastructure of the major oil companies in the country to blend the biodiesel with petroleum diesel was insufficient.

The companies would have to work together with MPOB and Golden Hope Plantations to develop the infrastructure, he said, adding that there weren't any legal provisions for the alternative fuel in the country at the moment.

“That is why we have to export. In terms of marketing, we do not see any problems,” he said

Asked why the government started this project, Chin replied that it was to put Malaysia on the world map in coming out with alternative fuels.

(See earlier post on the development by a Malaysian company of a new clonal oil palm designed to increase oil yield by 20%.)

Biodiesel: The Future Clean Energy

2006-05-15T23:54:00.000-07:00