Brazil, the world’s No. 2 soyoil exporter, may sell only 1.50 million tonnes of soyoil overseas in the 2011 calendar year, down from 1.56 million tonnes in 2010, Oil World forecasts.

This is despite an estimated rise in Brazil’s 2011 soyoil production to 7.13 million tonnes from 6.93 million tonnes in 2010 as the country is on course for a record soybean crop, Oil World said.

Brazil’s 2011 biodiesel output is also expected to rise to 2.40 million tonnes from 2.11 million tonnes in 2010 and only 1.41 million tonnes in 2009, Oil World forecast. Soyoil is heavily used as a biodiesel feedstock in Brazil.

The picture is similar in Argentina, the No. 1 global soyoil exporter, where 2011 biodiesel output is also forecast by Oil World to rise to 2.3 million tonnes from 1.81 million tonnes last year.

But Argentina’s 2011 soyoil exports are still forecast to rise to 5.20 million tonnes from 4.94 million tonnes last year, it added.(Reporting by Michael Hogan; Editing by Anthony Barker).REUTERS.

BioVerde is in talks to sign its first supply contracts with European fuel distributors, in Italy and Spain, and expects to begin shipments within 90 days, President Ailton Braga Domingues said in a telephone interview.

With biodiesel production capacity in Brazil more than double the domestic demand, Sao Paulo-based BioVerde is eager to gain access to new markets. While high freight costs and a strong local currency have made Brazilian biodiesel uncompetitive abroad, the company says exporting is viable because its plants are near the coast instead of deep in the jungle.

“Our strategy was always different from other companies,” Domingues said. “Freight costs make this kind of strategy impossible for a plant in Mato Grosso and Goais” states, in Brazil’s interior.

BioVerde received export permits from Brazil’s fuel regulator Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis on June 15. Domingues said he expects to deliver to European distributors 10 million liters (2.6 million gallons) a month by the middle of 2012 and 33 million liters a month in four years.

‘Bigger Role’

“Brazil has the agricultural capacity to play a much bigger role than it does now,” Domingues said today in an interview. “We want to become Brazil’s biggest exporter of biodiesel.”

The company has one refinery online in Sao Paulo state, in Taubate, and is spending 150 million reais to retrofit another site, in Sorocaba, to produce 400 million liters of biodiesel a year, he said.

It’s expected to go into operation this year and will overtake Archer Daniels Midland Co.’s plant in Rondonopolis, currently Brazil’s largest with annual production capacity of 344 million liters, according to Bloomberg New Energy Finance.

Brazil has the third-largest biodiesel industry, after the U.S. and Germany, with about 60 refineries that can produce 5.9 billion liters a year, according to ANP.

Brazil’s two biggest biodiesel producers, Granol Industria, Comercio E Exportacao SA and Caramuru Alimentos SA, and at least six other companies have secured export permits. Some of them have concerns about selling the fuel abroad.

Higher Prices

“I’ve been working in this industry since 2005,” Marcelo Freiria, sales manager for Sao Paulo-based Granol, said in a telephone interview. “And not once have I been offered a price,” from a European distributor “that would justify me knocking on my director’s door and asking him to take it further.”

Biodiesel is selling for 2.05 reais ($1.28) a liter in Brazil, compared with about $1.20 a liter in Rotterdam, according to data compiled by Bloomberg. Shipping costs to export the fuel from Brazil to Europe may add an additional 12 cents a liter to the final price tag and fuel retail taxes in some countries may tack on another 26 cents, New Energy Finance analyst Roberto Rodriguez Labastida said.

Part of the reason for the price differential has been Brazil’s currency’s 45 percent gain against the U.S. dollar since 2008.

“Brazilian soybean oil,” the country’s staple feedstock “often sells for cheaper than European biodiesel,” Freiria said. “The business isn’t viable,” even at Granol’s Cachoeira do Sul plant that’s 300 kilometers (186 miles) from Rio Grande port in far southern Brazil, he said.

Not Competitive

Logistical problems and low European prices have meant it’s not been competitive to sell there, according to an official at Caramuru.

Last year, 61 percent of the 2.3 billion liters of biodiesel the EU’s 27 member states imported came from Argentina while almost 26 percent came from Indonesia, according to an e- mail from the EU’s statistics department Eurostat. None was imported from Brazil, according to the statement

With plants near the coast, about an hour’s drive from Santos, Brazil’s biggest port, BioVerde is better positioned than its competitors to reach European markets, Domingues said. Most of the industry is based more than 1,000 kilometers inland in the heart of soybean-producing country, he said.

“Our biodiesel has been tested and approved by European distributors,” he said. “Now it’s a question of negotiating the commercial conditions.”BLOOMBERG.

The soybean checkoff has been a driving force behind the biodiesel industry from its inception, culminating in 2008, when the industry produced nearly 700 million gallons. In that time, the biodiesel industry became a powerful economic engine. According to a report by consulting firm LECG, LLC, the biodiesel industry supported nearly 52,000 jobs in 2008.

In 2009, however, production declined to 545 million gallons and all but stopped toward the end of the year as the industry awaited announcements of the federal Renewable Fuels Standard (RFS2) and extension of the federal blenders’ tax credit. This drastic drop in production led to the loss of nearly 29,000 of those jobs, according to the LECG report. Still, the industry added $4.1 billion to the U.S. gross domestic product and generated $828 million in local, state and federal tax revenue in 2009, according to the report.

“The soy biodiesel industry remains vitally important to any community and state where a soy biodiesel plant exists,” says USB Domestic Marketing Chair Jim Schriver, a soybean farmer from Montpelier, IN. “There are large groups of people whose livelihoods either directly or indirectly depend on a profitable soy biodiesel industry. Biodiesel plants represent good, high-paying jobs for thousands of people as well as millions of dollars in tax revenue to our local, state and national economies.”

The federal blenders’ tax credit allows a biodiesel producer or fuel supplier to acquire 1¢ for every percentage of biodiesel blended with petroleum diesel, making soy biodiesel even more cost-competitive. Schriver says the reinstatement of the federal biodiesel tax credit should enable more U.S. biodiesel manufacturers to resume production of large quantities of this homegrown, renewable fuel and to recharge efforts to make biodiesel more available to diesel users on a greater basis.

“Smaller plants can get started back up right away, but larger plants will need more time to get everything back in place,” Schriver says. “I think, in time, more of the biodiesel industry will return to profitability and be able to provide the economic benefits of job creation and tax revenue to our communities.”

Biodiesel became the first domestically produced fuel to qualify as an advanced biofuel under the RFS2 because it reduces greenhouse gas emissions by at least 50% over petroleum diesel. The RFS2 called for 1.15 billion gallons of biodiesel to be used in the U.S. by the end of 2010 and ensures the domestic use of at least 1 billion gallons of biodiesel annually beginning in 2012. By 2022, when the RFS2 will be fully implemented, the Environmental Protection Agency expects biofuels production to increase U.S. net farm income by $13 billion, or more than 36%.

Soybean oil remains the dominant feedstock for U.S. biodiesel production, and the soybean checkoff funds a large portion of the biodiesel research and promotion conducted by the National Biodiesel Board.

SOURCE: CORNAND SOYBEAN DIGEST/united soybean board.

ShareIn Washington, President Barack Obama today signed H.R. 4853, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

Last night, the US House of Representatives voted by a 277 to 148 margin to approve the Obama tax deal, which extends the ethanol tax credit through 2011, and retroactively extends the biodiesel tax incentive and the renewable diesel incentive through 2011. The bill also renewed the 54-cent tariff on Brazilian ethanol through 2011.

Growth Energy CEO Tom Buis was invited to the signing ceremony for the Tax Relief Unemployment Extension Bill. At the ceremony, Buis presented the President with a letter on behalf of the American ethanol industry and its supporters, thanking him for delivering a common-sense ethanol tax policy.

In the letter, he wrote, “Every year, our addiction to foreign oil drains $1,000 for every man, woman and child out of our economy. That is money we should invest in Des Moines, not Abu Dhabi – Columbus, and not Caracas.  …by signing into law a one-year extension of the Volumetric Ethanol Excise Tax Credit, your leadership has set the table for comprehensive, long-term energy policy, including reform of the American transportation fuels market, as proposed by Growth Energy’s Fueling Freedom proposal. Our plan to reform the market would encourage the installation of blender pumps and make every auto sold in the U.S. a Flex Fuel Vehicle, ultimately giving American consumers the power to choose their fuel at the pump, instead of having that choice made for them.”

Joy from US ethanol and biodiesel interests was tempered by a call by UNICA for Brazil to lodge a complaint with the World Trade Organization over the ethanol tariff.

At the same time, Senate Democrats abandoned a plan for a $1.3 trillion omnibus spending bill that would have slashed funds for USDA loan guarantees and would have zeroed out funds for the Biomass Crop Assistance Program established under the 2008 Farm Bill. According to the Associated Press, “The 1,924-page bill collapsed of its own weight after an outcry from conservatives who complained it was stuffed with more than $8 billion in homestate pet projects known as earmarks.”

Reaction from industry included:

Mary Rosenthal, Executive Director, Algal Biomass Organization, said, “Congress’s decision to extend the incentives for the production and use of domestic renewable fuels is an essential step for the development of America’s biofuels industry. While long overdue, the extension of these important programs sends a strong signal of support for the importance of renewable, domestic fuels to our energy security, economy and environment.”

Joe Jobe, CEO, National Biodiesel Board, added, “Experience has shown that the biodiesel tax incentive is an effective tool to encourage the displacement of foreign petroleum with a superior, domestically produced Advanced Biofuel. Reinstatement of this proven incentive helps provide the policy framework needed to meet the nation’s renewable goals, and the NBB sincerely appreciates the bipartisan cooperation and support that made extension of this worthwhile incentive possible.

Randy Olson, Executive Director of the Iowa Biodiesel Board, added, “We are extremely pleased that the biodiesel tax credit extension has now been passed with strong bipartisan support in both the Senate and the House. Biodiesel has long been a bright spot in our state’s economy, supporting green jobs and generating economic activity on the farm and beyond. It’s also a vital component of our national energy security. Iowa’s biodiesel producers are looking forward to ramping back up to full-scale production of America’s first Advanced Biofuel and bringing jobs back to Iowa while helping our nation meet its commitment to Renewable Fuels.”

SOURCE: BIOFUELS DIGEST

“It is widely regarded that bioenergy could play a significant role in a low-carbon energy future in Australia,” said Roslyn Prinsley, general manger of the RIRDC’s New Rural Industries program. “It could help reduce our reliance on fossil fuels and provide an alternative income source for farmers though the establishment of new rural industries. But to achieve sustainable industry expansion, we need a solid scientific basis to help inform industry and government decision making, and drive potential private sector investment. [This report] will help us understand which potential feedstocks are commercially viable and best suited to Australia’s growing conditions, in particular our unique climate and soils. And, importantly, the studies help to dispel the myth that the production of bioenergy feedstocks has to come at the expense of land destined to grow crops for human consumption.”

The study, which focused on the central Queensland region of Australia, had three primary objectives; to identify native plant species that produce significant quantities of oil and grow well on marginal lands, to test the seeds of these species for oil content, and to examine the oil yield potential of selected species. Plant types evaluated during the course of the study included trees, shrubs, palms, herbaceous species and weedy species.

According to the report, fruits or seeds were obtained for each plant through field collection, seedbanks or commercial seed companies. The seeds were then analyzed for oil content. Of the more than 200 plant species tested, the researchers determined that 20 that featured substantial oil content. Oil from the 20 selected species was then analyzed for fatty acid composition, which was used to calculate biodiesel properties. In addition, oil from each of the 20 selected species was converted into biodiesel, with the resulting fuel evaluated for basic property characteristics. Biodiesel produced from one species, Calophyllum inophyllum, also underwent engine performance testing.

The 20 species identified by the study as potential biodiesel feedstocks include:

1. Calophyllum inophyllum (Beauty leaf tree): The perennial tree flowers twice a year, producing up to 8,000 fruits per plant annually. Each fruit contains a kernel that contains approximately 46 percent nonedible oil. The highly acidic and viscous oil was found to yield inferior quality biodiesel using conventional conversion processes, but modified production processes led to better results. As part of the study, researchers conducted engine tests using B5 and B20 biodiesel produced with Beauty leaf tree oil and found that it performed as well as conventional diesel.

2. Aleurites moluccana (Candle nut tree): The fast growing tree produces up to 7,000 fruits per tree annually. Each fruit contains one or two seeds, which contain approximately 47 percent oil. According to researchers, the oil contains a high quantity of linolenic acid, which might pose problems with its use as a biodiesel feedstock.

3. Syagrus romanzoffiana (Queen palm): The naturalized palm species bears fruits in panicles, each of which produces a kernel that contains 41 to 47 percent oil.

4. Murraya exotica (Mock orange): The naturalized species bears fruit in both autumn and spring. The resulting seeds contain 22 percent oil.

5. Cordyline manners-suttoniae (Cordyline): The palm-like plant produces berries. The seeds of the berries contain approximately 15 percent oil.

6. Grevillea banksii (Grevillea): The shrub bears a large number of fruits. The resulting seeds contain 15 percent oil.

7. Elaeocarpus grandis (Blue quandong): The tree produces fruits each contain a tiny kernel. The oil content of each kernel is approximately 38 percent. However, the proportion of the kernel to seed is very low.

8. Ochna serrulata (Ochna): The shrub produces seeds that contain 31 percent oil.

9. Brachychiton bidwillii: The deciduous shrub produces fruits, each of which contain 20 to 30 pea-sized seeds. The seeds have an oil content of 15 percent.

10. Koelreuteria formosana (Chinese rain tree): The naturalized tree has been classified as a weed due to its aggressive growth patterns. It produces seeds that contain 22 percent oil.

SOURCE: BIODIESEL MAGAZINE

Cited by Portuguese news agency Lusa, Ricardo Castello Branco said that, “the factory will be installed in one of the refineries of Galp Energia, in Portugal, and the details of the project are being studied, but it will be built in line with the time of delivery of the oil that we are now starting to plant.”

The projects for production of biodiesel from palm oil include construction of a factory in the state of Paraná, in northern Brazil, with operations due to begin in June, 2013, and also in Portugal, in partnership with Galp Energia, the so-called Belém Project.

This year in Lisbon a deal was signed by the two oil companies for production in Portugal, at the Sines refinery, of around 260,000 tons of biodiesel per year.

The strategy to supply the biodiesel unit in Portugal includes establishing an agri-industrial hub in Brazil to grow palms with estimated annual production of 300,000 tons per year.

Investments total 216 million euros in Brazil and total estimated investment in the project is 395 million euros, to be shared equally by the two companies.

source: macauhub

Urgente24 reported 8 / 11 that negotiations were between the producers and the government to unfreeze the internal value of biodiesel derived from soybean (see related). However, the conflict would come to an end for the pressures of the association that brings together workers in the sector.

Biodiesel.com.ar site reported, the update of prices was rushed by a demonstration of the Union of Petroleum private gas and biofuels San Lorenzo, Santa Fe, which warned of the effect of this freeze on jobs.

“It is the role of union leaders to defend the workers, the union is the only
tool that workers have to enforce their rights, “said Ruben Perez, secretary general of the union, who at the situation of the sector had said that SMEs are planning advanced suspensions and holidays for staff. “We prepared all the logistics to make roadblocks,” he threatened.

But after a meeting with the national government with De Vido and Javier Urquiza coordinator of the National Biofuels Program of the Ministry of Federal Planning, Public Investment and Services, an agreement was reached.

“We made it clear that defending the workers, there were formal commitment from that in 10 days will fix the problem and fixed the prices of biofuels for oil companies, which as so far not been published to increase the price of soybeans , the companies lost about $ 30,000 “was what he said the unionist.

Thus, the price is set at $ 3,920 to $ 4,200 in November and December. Currently the price is $ 3,769 a tonne, equivalent to 1,136 liters, for the domestic market catering to oil companies.

Exports grow

Biodiesel exports between January and October this year accumulated a total of U.S. $ 994 million, a 37.8% higher than those recorded in 2009, even though the court did not apply to diesel oil required for domestic consumption, implemented by the Law 26.093 .

At this rate, exports of biofuel end the year at around U.S. $ 1,200 million, which would be above the value of exports of gas oil, gasoline and fuel oil.

During the meeting of the value chain of the Biofuels organized by the Argentina Association of Biofuels and Hydrogen, is recalled that the industry’s installed capacity is 2 million tonnes of production and new investment grows up.

Speaking of the prospects for biofuel production, the engineer Fernando Peláez anticipated that in 2010, are being exported one million tons of biodiesel, plus the placement of 300 thousand tons in the domestic market.

The mandatory cut gas oil to biodiesel began the first day of 2010 with five percent in the aggregate to fossil fuel equivalent to about 600 thousand tons of biodiesel.

This summer, the cut was extended to 7% given the installed capacity of the manufacturing industry and domestic market needs.

Globally, Argentina ranks fourth in the production of biodiesel after Germany, France, and close to Brazil.

But, it is estimated that the leadership in the production and export of biodiesel for Argentina is in full expansion phase with a potential market in the world where demand is growing.

“Argentina’s biodiesel industry will have a sustained growth in the dissertation Peláez ventured.

Source Urgente 24

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The biodiesel from the plant can be either blended with the conventional diesel or used directly. The company claims that the biodiesel is compatible with the all the diesel engines currently in use. Neste Oil is building a similar plant in Rotterdam, The Netherlands which should be ready by Q2 2011.

The plant uses either vegetable oil or a mixture of oils and residual animal fats from the food industry. The basic principle used in producing biodiesel is esterification (or transesterification). In commercial production of biodiesel, fatty acids (found in plant-derived oils, animals fats and greases) are made to react with an alcohol (usually methanol) with potassium hydroxide (or other hydroxide) as catalyst.

It is clear that a greater concentration of fatty acids in any raw material would increase the output of biodiesel. Plant-derived oils like rapeseed oil are rich in fatty acids and can be directly used for producing biodiesel through transesterification. The animal fats, however, have lower fatty acid content and thus they are first treated with alcohol to generate an ester and then the resulting ester is treated with another ester in a replacement reaction to get biodiesel.

The process is thus very simple and generates useful by-products such are glycerol which has wide applications in several industries like soap manufacturing.

It is important, though, that raw materials produced should be sustainable. Unchecked exploitation of plants and plant products, which may be used as food in some part of the world, for biofuel production could not only lead to environmental disasters but social and economic problems as well. Biodiesel production from algae has also been proposed and research work on the same is underway in many parts of the world. However, the ability to provide a net reduction in carbon emissions is in doubt.

Mridul Chadha

Student, Environmental Engineer, Writer

SOURCE: CLEAN TECHNICA

According to video and a transcript of the debate posted to Iowa Public Television’s website, Zaun said that while he thinks the biodiesel industry needs to grow, he does not support reinstatement of the expired tax credit. In response, Boswell argued that Zaun has not connected success in the biofuels industry with a decreased dependence on foreign oil. “[Biodiesel] is a stand-up business that we’ve got to continue to support and be sure we can make it solid, and we definitely should be supporting those biodiesel plants that are sitting out there idle. We can do better,” Boswell said.

Zaun responded to Boswell’s remarks by saying he respectfully disagreed.

“When we as tax payers invest $100,000 to $600,000 for each new job created, that’s excessive,” he continued. “And, I want that industry to survive, and I want it to flourish.” However, during the debate Zaun offered no insight into possible alternative actions that could be taken in order to support biodiesel production in Iowa.

It is currently unclear how Zaun reached his $100,000 to $600,000 estimate of taxpayer support for each biodiesel job created. Biodiesel Magazine was unable to reach him for clarification. The Iowa Biodiesel Board has also been unable to verify where Zaun’s estimates have been sourced.

According to information posted to the IBB’s website, Iowa’s biodiesel industry supported 2,900 permanent jobs and contributed approximately $470 million to the state’s GDP in 2009.

“We are disappointed and concerned to hear that Brad Zaun does not support the federal tax incentive for biodiesel,” said IBB Executive Director Randy Olson. “The incentive expired last year, and the impact on Iowa’s industry has been devastating. Nearly half of the state’s 15 biodiesel plants have closed their doors or gone idle, and thousands of Iowans have lost jobs.

Iowa was once the leading biodiesel-producing state, but our position as a national and worldwide leader in renewable fuels is in jeopardy. Our sincere hope would be that anyone who represents Iowa in the U.S. Congress would continue to fight for the biodiesel industry, and energy independence.

Biodiesel is a bright spot in our state’s economy, supporting green jobs and generating economic activity on the farm and beyond. It’s also a vital component of our national energy security.”

The IBB has requested a meeting with Zaun’s office to discuss the impact of biodiesel in Iowa, and is hoping to shed some light on how vital the industry is to not only Iowa but the nation as a whole, said Olson. That meeting is currently scheduled for Oct. 25.By Erin Voegele.

SOURCE: BIODIESEL MAGAZINE

According to country’s energy ministry, Vietnam is focussing on production of ‘green gasoline’ from cassava, coconut, sesame, peanut, flax and jatropha, and from animal products such as catfish fat.

The government has instructed ministries to give incentives for the production and use of biofuel, defined as fuel made from these raw materials.

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Under the plan on biofuel development to 2015 with a vision to 2025, Vietnam will produce 1.8 million tons of ethanol and vegetable oils for use as fuel annually, meeting 5 percent of domestic petrol and diesel demand in the next 15 years.

Many countries already manufacture large amounts of biofuels, especially in the US and Brazil. Once a big importer of oil, Brazil has substantially reduced its requirement thanks to biofuel development.

Some Asian countries are strongly investing in biofuels, among them Thailand, China and India.

There are about four million hectares of deforested hill country in Vietnam – including more than half the Central Highlands – which are considered to be suitable for growing jatropha curcas, the crop that many countries use for biofuel.

Jatropha has a high oil content, and can produce the feedstock for one to three tons of bio-diesel per hectare.

Experimental plantations of jatropha bushes, which grow in poor soils and have a life cycle of 30 years, are being established. The Dong Xanh Joint Stock Company is planting 30,000 hectares of jatropha in seven central provinces to supply its ethanol plant in Quang Nam.

Dong Xanh JSC’s ethanol plant, the first in Vietnam, began operation in August. Its annual capacity is 100,000 tons of biofuel a year. The plant is already working at 70-80 percent of its designed capacity, supplying ethanol to state-owned Petrolimex. Its principal feedstock is cassava grown in Quang Nam and Binh Dinh provinces.

Petrolimex began selling bio-petrol (5 percent ethanol and 95 percent petrol) in August at filling stations in HCM City, Hanoi, Vung Tau, Hai Phong and Hai Duong and will add sales points in Da Nang, Hue and Can Tho this year. The biopetrol is offered at 500 dong per liter less than normal gas.

Three more ethanol plants with capacities in the 100,000 tons per year range are being built in the centre and north.

In Vietnam’s far south, refiners in Can Tho and An Giang are making bio-diesel from catfish fat, hitherto considered a waste material. The Mekong Delta factories currently process 30,000 tons of catfish fat each year.

The first plant producing biodiesel from catfish fat was inaugurated in the Mekong Delta city of Can Tho in early 2009, ran by Minh Tu Co., Ltd. This plant can produce 50,000 liters of biodiesel a day. The plant has exported its product to Singapore.

By the end of 2011, Vietnam will have five biofuels plants with a total capital of 365,000 tons of ethanol, which, mixed with gasoline, will yield 7.3 million tons of E5 petrol.

The legal framework for biofuel production and trading in Vietnam is nearly complete.

Biofuel has been designated a key industry and biofuel production projects enjoy the highest level of investment incentives.

According to Government planners, from 2007 to 2010, Vietnam will finalise a legal framework to encourage the production and use of biofuel, design the roadmap for using biofuels in Vietnam, learning biofuel technologies, training human resources for this industry, zoning and developing material areas for biofuel, build biofuel plants to meet 0.4 percent of the country’s need for petrol by 2010. This start-up work is basically on schedule.

From 2011-2015, according to planners, Vietnam will begin to produce additives, enzymes and other materials for biofuels and expand their production, develop new varieties of high productivity, and expand biofuel plant capacity to satisfy 1 percent of the country’s need for petrol by 2015.

From 2016 to 2025, Vietnam will build an advanced biofuel industry that will produce 100 percent of the national requirement for E5 and B5 fuels, i.e., will provide five percent of the fuel needed to run the nation’s motor fleets.

Biofuels are a wide range of organic materials which are in some way derived from biomass and can be used to produce energy. The term covers solid biomass, liquid fuels and various biogases.

Ethanol is an alcohol made by fermenting the sugar components of plant materials and it is made mostly from sugar and starch crops. Using advanced technologies still under development, cellulosic biomass, such as trees and grasses, can also be used as feedstocks for ethanol production.

Ethanol can be used as a fuel for vehicles in its pure form, but it is typically used as a gasoline additive to increase octane and improve vehicle emissions.

Biodiesel is made from vegetable oils, animal fats or recycled greases. Biodiesel can be

used as a fuel for vehicles in its pure form, but it is usually used as a diesel additive to reduce levels of particulates, carbon monoxide, and hydrocarbons in emissions.

Biofuels in general have 70 per cent less CO2 emissions and 30 per cent less poisonous chemical emissions compared to petrol. Biofuel made from sugar has 89 per cent less CO2.

Compared to traditional fuel like coal and natural gas, biofuel produces less greenhouse gases, disintegrates faster and does less harm to water and land resources. It also causes less wear and tear on engines.

A United Nations Environment Programme report showed biofuels accounted for 1.8 per cent of transport fuel. Ethanol production tripled between 2000-07 and biodiesel production rose eleven-fold.

The UNEP report also said mandates to blend biofuel into fossil fuels for vehicles had been enacted in 17 countries by 2006, most requiring blending with 10-15 percent ethanol or 2-5 percent biodiesel.

Brazil exported 5 billion litres of ethanol in 2008. Its investment in biofuels rose to $4 billion in 2007 and had most likely risen substantially since then.

Read more: http://community.nasdaq.com/news/2010-09/vietnam-joins-race-for-biofuel.aspx?storyid=38001#ixzz10plVH94V