Biofuel Waste to Riches

Potential new bi-products from biofuel waste may revolutionize the biofuel industry.

Adding Value to Biofuel Waste

What do you get when you cross E. coli with biofuel waste products? A new process that may revolutionize the economic development of the growing biofuel industry.

Biofuels represent the best sustainable, secure, and renewable alternative to fossil fuels. Unfortunately, biofuel production is beset by the same problem as traditional petroleum refining – excess waste. In traditional refining, only about...(complete article here).

Ethanol Subsidy Market Distortions

Iowa State takes a different look at the impact of ethanol.

Ethanol: A Welfare-Increasing Market Distortion?

Xiaodong Du, Dermot J. Hayes, Mindy L. BakerOctober 2008 [08-WP 480]

This study estimates the welfare changes for consumers and producers resulting from ethanol production and related support polices in 2007. The results suggest a positive welfare gain from the support policies; this is possible because ethanol subsidies effectively replaced a market distortion that had a larger deadweight loss. Previous farm subsidies created overproduction, which then depressed market prices and increased the cost of maintaining target-price supports. Ethanol polices resulted in additional ethanol production, but because this additional ethanol was sold in price elastic energy markets, the price depressing impact of the government supports was less than before. This resulted in lower government spending and a net welfare gain of $2.65 billion for given market parameters. The results are...(complete news release and link to study here).

National Biofuels Action Plan Released

You need a plan if you expect to accomplish anything -- even if what you are trying to accomplish isn't the right thing.

USDA & DOE Release National Biofuels Action Plan

WASHINGTON – Department of Agriculture (USDA) Secretary Ed Schafer and Department of Energy (DOE) Secretary Samuel W. Bodman today released the National Biofuels Action Plan (NBAP), an interagency plan detailing the collaborative efforts of Federal agencies to accelerate the development of a sustainable biofuels industry.

“Federal leadership can...(complete news release here).

Sorghum Biofuel Conference

Grain sorghum is tolerant of drought and poor soils and is grown in areas unsuitable for other biofuel crops with high water requirements. I would rather see it used for ethanol than corn. Corn takes far too much water.

USDA Conference Spotlights Sorghum's Biofuel Potential

By Ann Perry
August 18, 2008

WASHINGTON, D.C., August 18, 2008—Sorghum's potential as a biofuel crop will be explored at the International Workshop on Sorghum for Biofuels which begins in Houston, Texas, tomorrow. More than...(complete news release here).

UN Biofuels Standard Under Development

Guidelines for bio-fuels development is probably a good idea, however, each country ultimately must address its own internal issues.

UN-backed expert group takes steps to establish new biofuel standard

13 August 2008 – A United Nations-backed group of international experts has endorsed a first draft of a new global sustainability standard for biofuels to assess their economic, social and environmental effects.

The Steering Board of the Roundtable on Sustainable Biofuels (RSB), which includes an expert from the UN Environment Programme (UNEP), today signed off on...(complete article here).

EU Bio-fuels Reaction and Food Price Impact

The European backlash to bio-fuels appears to be much greater than in the U.S. It may be due to the way foods are prepared there as opposed to U.S. methods. In the U.S., the volume of pre-pared foods is extremely high relative to most of the world. The high level of preparation places a greater percentage of the cost of those foods in the pre-preparation than in the food itself. Therefore a change in the cost of the basic commodity would have a smaller relative impact on the overall price. In the lesser developed world such as Africa, the impact is extremely high.

ENVIRONMENT: EU Backs Away From Agrofuels

By Julio Godoy
PARIS, Jul 28 (IPS) - EU ministers for energy and the environment have revised their targets for renewable energy in the face of abundant new evidence that increased production of agrofuels is partly responsible for the worldwide increase of food prices.

The EU has had a declared objective of...(complete article here).

Food vs. Fuel: The Battle Rages

The food versus fuel fight continues....

New U.S. group defends ethanol in food vs fuel fight

By Lisa Shumaker

CHICAGO (Reuters) - A new group is adding its voice to the debate on using crops to produce alternative fuels such as ethanol amid rising food prices and shortages in some countries.

The Alliance for Abundant Food and Energy in Washington D.C. was created by...(complete article here).

Notice who has joined this alliance. ADM -- one of the largest grain companies in the world. Dupont -- maker of farm chemicals. Deere & Co. -- who have experienced a boom in their farm equipment business since the advent of RFS and corn-based ethanol. Monsanto -- the GM seed giant. They really aren't interested in the cost of food -- just their bottom line.

RFS Standards Review

RFS is under pressure due to the unintended consequences of corn-based ethanol production. Let's hope the House subcommittee does something about it.


Subcommittee Reviews Renewable Fuel Standard Implementation

WASHINGTON - Today, the House Agriculture Subcommittee on Conservation, Credit, Energy, and Research held a hearing to review the Renewable Fuel Standard (RFS) implementation and agriculture producer eligibility. Congressman Tim Holden of Pennsylvania is Chairman of the Subcommittee.

"As our economy diversifies its energy supply, it is critical we take advantage of all potential sources of renewable biomass," Holden said. "Unfortunately, the...(complete news release here).

New Bio-fuels Technology and Venture Capital

It takes a lot of capital to gear up for a new industry on a scale that will make a dent in our energy needs. The risks are high and the benefits unknown. Without significant government subsidies it is unlikely that many of the current ventures would be attempted.

Gassing Up With Garbage

By MATTHEW L. WALD
Published: July 24, 2008

After years of false starts, a new industry selling motor fuel made from waste is getting a big push in the United States, with the first commercial sales possible within months.

Many companies have announced plans to build plants that would take in material like wood chips, garbage or crop waste and turn out motor fuels.

About...(complete article here).

Re-thinking OECD Bio-fuels.

Countries are re-thinking biofuel policies -- and well they should. Unintended consequences of existing policies have created havoc. It is time to change course -- especially concerning corn-based ethanol.

Biofuel policies in OECD countries costly and ineffective, says report

16/07/2008 - Government support of biofuel production in OECD countries is costly, has a limited impact on reducing greenhouse gases and improving energy security, and has a significant impact on world crop prices, according to a new study of policies to promote greater production and use of biofuel in OECD countries.

OECD’s Economic Assessment of Biofuel Support Policies says biofuels are currently highly dependent on public funding to be viable. In the US, Canada and the European Union government support for the supply and use of biofuels is expected to rise to around USD 25 billion per year by 2015 from about USD 11 billion in 2006. The report estimates that biofuel support costs...(complete article here).

Texas in Biodiesel Lead

Texas is now the largest U.S. producer of energy from wind and biodiesel. Is solar next?

Houston biodiesel plant to use non-food feedstock

By BRETT CLANTON
Copyright 2008 Houston Chronicle

Texas expanded its lead as the biggest producer of biodiesel fuel in the U.S. with the opening today of the nation's largest biodiesel refinery at the Houston Ship Channel.

The facility, owned by...(complete article here).

Missouri Reconsidering Ethanol?

Momentum is building....

Food price hikes fuel anti-ethanol moves in U.S.

By Carey Gillam

KANSAS CITY, Missouri (Reuters) - Missouri is considering rolling back a mandate supporting ethanol production amid growing outrage over rising prices for food and livestock feed.

It was less than four months ago that ethanol supporters were celebrating the implementation of a Missouri law requiring gasoline sold throughout the state contain 10 percent ethanol. The law, passed in 2006, took effect January 1.

But now, in the face of...(complete article here).

Senator Hutchison Addresses Ethanol Mistake

Thank you, Senator Hutchison!

Undoing America's Ethanol Mistake

by Senator Kay Bailey Hutchison

Published in the Investor's Business Daily
April 28, 2008

The Nobel Prize-winning economist Milton Friedman once said, "One of the great mistakes is to judge policies and programs by their intentions rather than their results."

When Congress passed legislation to greatly expand America's commitment to biofuels, it intended to create energy independence and protect the environment.

But the results have been quite different...(complete article here).

Forestry Research

Our government at work handing out dollars.


AGRICULTURE SECRETARY SCHAFER AWARDS MORE THAN $4.1 MILLION FOR USE IN WOODY BIOMASS DEVELOPMENT

Federal grants support the Healthy Forests Restoration Act, reducing wildfire risk and providing economic incentives to rural communities

WASHINGTON, DC, March 7, 2008 -- Agriculture Secretary Ed Schafer today announced...(complete article here).

Chinese Bio-diesel

Two million metric tons annually of bio-diesel is a lot!

China Agro-Technology to build biodiesel refinery

March 10, 2008

The company said the $200 million plant would be able to produce 2 million metric tons annually.

Singapore-based China Agro-Technology (OTC: CAGTF) announced today that it signed a memorandum of understanding with the government of...(complete article here).

Engineering Better Biofuel Sources

Learning how plants function at the cellular level is critical to developing more useful plants.

Newly defined signaling pathway could mean better biofuel sources

WEST LAFAYETTE, Ind. - A newly defined biochemical pathway in plants may provide the scientific tools to design plants that will yield larger quantities of alternative transportation fuels than currently can be produced, according to Purdue University researchers.

The pathway moves materials that determine cell shape and size through a system of signaling proteins, said...(complete article here).

Why Biofuel Subsidies?

The research project referenced below from Iowa State University indicates that the likely objective of the U.S. Biofuels subsidies was to transfer payment to the farming sector. With the historic pressure to remove farm subsidies which were designed to ensure a secure and cheap food supply, this strategy makes sense. However, the consequences of the strategy in its impact on the livestock feeding sector somewhat negates the gains in the farming sector.

Implied Objectives of U.S. Biofuel Subsidies

Ofir D. Rubin, Miguel Carriquiry, Dermot J. HayesFebruary 2008 [08-WP 459]

Biofuel subsidies in the United States have been justified on the following grounds: energy independence, a reduction in greenhouse gas emissions, improvements in rural development related to biofuel plants, and farm income support. The 2007 energy act emphasizes the first two objectives. In this study, we quantify the costs and benefits that different biofuels provide.

We consider...(complete article here) [Be sure to go to the .pdf of the entire article]

Indonesian Biofuel Woes and Goals

It takes longer to ramp up for higher production levels of palm oil than it does for annual crops such as corn or soybeans....

Indonesia seeks to nearly double biodiesel output

JAKARTA (Reuters) - Indonesian palm oil-based biodiesel output is expected to nearly double to 1.3 million tonnes this year on expected strong demand in the overseas market, a senior industry official said on Monday.

Biodiesel capacity is...(complete article here).

Related article here.

The Biofuel Impact on Food Prices Debate Continues

And the debate continues...

Biofuel impact on farm prices overplayed

By Sybille de La Hamaide

PARIS (Reuters) - The recent price rally in farm commodities such as grains, oilseeds and sugar beet can be attributed partly to higher biofuel demand but their share of the blame has been exaggerated, a top official of the Organisation for Economic Cooperation and Development (OECD).

Loek Boonekamp, a division head in the Agro-food Trade and Markets Division at the Paris-based OECD, said the surge in farm product prices -- with cereals more than doubling last year -- would have happened even without the rise in biofuel production.

"Closing your eyes and blaming...(complete article here).

Of course biofuels are having an impact on farm commodity prices. Anything that increases demand will impact price. No, it isn't the only factor affecting those prices. As always, one must consider all of the factors that have an impact -- weather, technology, input prices (profitability), etc. I think the jury is still out on whether bifuels are good, bad, or indifferent as to the overall impact on humanity -- for all of you "planet huggers," the health of the environment is meaningless without humans. However, the health of the planet is meaningful to humanity's continued survival.

EU Has Second Thoughts on Biofuels Mandates

The EU is having second thoughts about the wisdom of biofuels mandates. As in most politically motivated decisions, we will likely see a pendulum effect -- i.e. go to far one way and then overreact and go to far the other way, etc. When they examine the economic impact on poor people, I hope they look at the overall potential for raising living standards for those who are producing the biofuels. I also hope they look at the jobs created. It's a complicated mess no matter how you look at it -- something about the "law of unintended consequences...."

EU to toughen environment criteria for biofuels

By Paul Taylor

BRUSSELS (Reuters) - The European Union is to set tougher environmental criteria for biofuels after acknowledging that the drive for transport fuels produced from crops has done unforeseen damage, the European Commission said on Monday.

Environment Commissioner Stavros Dimas said in a BBC interview the EU had initially underestimated the danger to rainforests and the risk of forcing up food prices from its policy of setting binding targets for the use of biofuels.

"We have seen that the...(complete article here).