“Many biodiesel companies are already in a critical situation, and there is a risk that this will be transformed into companies closing in the next months,” said Raffaello Garofalo, secretary general of the European biodiesel industry association EBB.

“Many companies have already closed, especially in Germany and Spain.”

The EBB estimates European Union 2011 biodiesel production capacity is at 22.1 million tonnes but that the industry is reaching only 44 percent of that capacity.

“Although the EU has got a nominal biodiesel capacity of more than 22 million tonnes, many plants have been at least temporarily closed down or idled and are not really producing,” said Rabobank analyst Susan Hansen.

“This is for instance the case in Germany, Spain, or Italy but actually across the whole of the EU.”

A poor EU rapeseed crop has made palm oil and soyoil-based biodiesel more price attractive.

German oilseeds analysts Oil World forecasts EU biodiesel output will fall to 9.07 million tonnes in 2011 from 9.54 million last year largely because of competition from imports.

“EU imports of biodiesel have increased sharply so far this year and will probably reach a record 2.52 million tonnes in January/December 2011, up 21 percent from last year,” Oil World said.

“We expect 1.4 million tonnes of biodiesel to arrive from Argentina and at least 830,000 tonnes from Indonesia and Singapore,” Oil World says.

That compares with imports of 1.1 million tonnes from Argentina and 516,000 tonnes from Indonesia and Singapore last year.

European biodiesel producers came under extra pressure earlier this year as environmentalists questioned the EU policies for green fuels, after studies said the cultivation of rapeseed, palm or soybeans as a feedstock for biodiesel was worse for climate change than the use of regular diesel.

Biodiesel refiners themselves are often unwilling to talk about the depth of the problem.

“The industry is in a very bad way, and we could see more closures pretty soon, especially in south Europe,” said one German refiner, who declined to be named.

CRISIS CLOSE IN SPAIN AND ITALY?

A crisis could be approaching in Spain and Italy, where biodiesel capacity usage is falling to dramatically low levels.

“I cannot see how Spanish and Italian biodiesel producers will survive much longer at the terrible capacity usage rates we are currently seeing,” one oilseeds trader said.

“The signs are that biodiesel imports are causing an alarming fall in local output.”

Spain’s 2011 biodiesel output will drop 31 percent on the year to 550,000 tonnes, Oil World estimates. Spain’s biodiesel production capacity is 4.4 million tonnes.

Italy’s 2011 biodiesel output is likely to fall 40 percent on the year to 450,000 tonnes, Oil World forecasts. Italy’s annual capacity is 2.2 million tonnes.

More EU imports of palm-based biodiesel are expected, especially from Indonesia.

“Biodiesel demand for Europe at least keeps us in business and will keep palm oil prices very supportive next year despite expectations for strong production,” said an Indonesian trader who sells biodiesel to Germany.

But rising imports, especially from Indonesia, also threaten to create trade friction, with allegations of unfair prices.

“Palm oil and even biodiesel is sold in the internal market in Indonesia at a price which is higher than the price of exports to Europe,” said the EBB’s Garofalo. “There is clearly dumping. This also happens from time to time with Argentine imports.

“We are now talking to the EU Commission authorities to raise their attention to this issue.”

Rabobank’s Hansen said she would not be surprised if the EU moved to curb imports.

“Every time imports drastically increase, I believe the EU will find ways to – at least temporarily – put barriers in place by introducing tariffs on imported biodiesel for example,” she said.

The EBB is also calling on European governments to take more steps to reach the EU’s goal of 10 percent biofuel use in transport by 2020.

“This (low production) is a paradox when we have a desperate need to reduce greenhouse gases in transport to fight climate change,” Garofalo said.

(additional reporting by Niluksi Koswanage in Kuala Lumpur, editing by Jane Baird).REUTERS.

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.

Argentina is expected to produce 2.3 million metric tons of biodiesel, made from soybeans, this year, up 27 percent from 2010, Oil World said in a report today. Exports may total 1.5 million tons, according to the report. In Brazil, biodiesel output may gain 14 percent, Oil World said.

“The available global supplies of vegetable oils and animal fats are insufficient to satisfy all the requirements of the energy sector without jeopardizing satisfaction of demand for food,” Oil World said. “This is going to be a supportive factor for oils and fats prices.”

Argentina’s soybean oil exports rose 100,000 tons to 1.2 million tons from January through April, partly because of rising requirements for biodiesel production, Oil World said. Indonesian production of the biofuel may rise to at least 800,000 tons by the end of 2011, most of which will be exported to the European Union, according to the report.

“Accelerating usage of vegetable oils for biodiesel could create scarcity and appreciating food oil prices later this year, unless policy-makers start fine-tuning their policies of biofuel-usage mandates,” Oil World said.

China will buy more vegetable oils after domestic stocks fell 800,000 tons in the past 12 months, Oil World said. Chinese imports may increase 20 percent to 3 million tons from July through September as palm oil and soy oil purchases rise, according to the report.

“There are several indications that world production will not rise sufficiently during the remainder of this year to satisfy global demand for food and for oleochemical usage as well as for the energy sector,” Oil World said.BLOOMBERG

By Bryan Sims | April 05, 2011/ ADM plans to acquire Prairie Pride’s soy crush and biodiesel facilities in Deerfield, Mo.

Photo: Prairie Pride Inc.

Decatur, Ill.-based agribusiness firm Archer Daniels Midland Co. has agreed to acquire a soybean crushing facility and 30 MMgy biodiesel production plant from Prairie Pride Inc. in Deerfield, Mo. ADM will also form a partnership with PPI for the biodiesel portion of the business.

PPI responded to ADM’s acquisition of its soy crushing and biodiesel production assets, stating,

“Earlier this year, in conjunction with a division of General Electric, we worked to find partners and potential purchasers of the crush and biodiesel facilities. After a bidding process conducted by GE, ADM has agreed to purchase the debt held by GE and will become our primary creditor. Not only has ADM offered to infuse more capital into the crush and biodiesel facilities, they also have requested that Prairie Pride participate alongside ADM in the future of the biodiesel facility.”

Al Decker, treasurer of PPI’s board of directors, told Biodiesel Magazine that the biodiesel plant ceased production in February last year and has sat idle prior to ADM’s stepping in with the acquisition. Decker said the company had spent over a year working for a solution to resume operations, but the company became financially distressed, citing the lapsed tax credit as the primary culprit behind the decision to halt production. The Deerfield biodiesel plant broke ground for construction in 2006 and began producing biodiesel in 2007.

“We were down to a minimum staff, basically for maintenance and security reasons at the plant,” Decker said, adding that ADM will likely evaluate whether to retain PPI personnel or expand staff with ADM employees, or a combination of both at the site. “We’re tickled to death to have the [plant] up and running again.”

For ADM, the acquisition of PPI’s soy crush and biodiesel production assets was attractive because it further highlights the company’s growth strategy in the U.S. and internationally.

“ADM’s growth strategy involves expanding the volume and diversity of crops that we source and process; expanding the reach of our origination, transportation and processing assets and expanding our value-added product portfolio,” ADM said in an email correspondence. “The Prairie Pride facility will increase our North American crush capacity and it fits well within ADM’s integrated business model.”

As for PPI, the company is confident that ADM will achieve PPI’s goals its investors originally set out to meet when they invested in the project five years ago.

“Prairie Pride has faced many challenges over the past several years,” PPI’s website states. “The board of directors believes, after considering all material facts and circumstances, that a long-term relationship with ADM gives our members the greatest potential to receive returns on their investment without the necessity of infusing more capital into Prairie Pride. We are hopeful that this will be a successful and profitable business relationship, and that the crush and biodiesel facilities will purchase local soybeans and provide local jobs in the future.”

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

Algae Fuels is a group of companies such as Copec, E-CL, Rentapack, Pontificia Universidad Catolica de Chile and Bioscan and is financially supported by both the Corporations for the Promotion of Production (Corfo) and InnovaChile.

InnovaChile has invested CLP 3.245million, which is equivalent to USD 6.7 million for the project, out of the total requirement of CLP 6.836 million . The pilot plant will grow algae for five years and an assessment would be carried out to determine if the project is both cost-effective and productive. The need was to produce algae with high lipid levels, which could be converted into biodiesel.

According to Arturo Natho, Algae Fuels’ President, the two important aspects of the project were the industrial scale development of microalgal cultures; and also the efficient and cost-effective way of obtaining the biodiesel and its by-products. The company’s perception is that the optimal climatic conditions for the growth of microalgae are available and hence the project was bound to be successful. The project does not require huge tracts of agricultural land as the algae can grow in small areas and that too rapidly. Its production would be a source of uninterrupted and limitless energy.

The first phase comprises of exploring, isolating, purifying and selecting microalgae strains. First the algae would be gathered from the Sea, and then it would be studied in Santiago, to distinguish the most suitable and appropriate strains and then grown in domestic climatic conditions. After which the plants are shifted to the field laboratory in Mejillones where photosynthesis is accelerated due to the CO2 present in the chimney of the power generating plant. The last stage would be subjecting the species to various chemical processes and then centrifuging it to get algal biomass. Finally it is dried in a special kiln and processed chemically. Then the biofuel can be utilized.

SOURCE: AZOCLEANTECH

Sustainable Agro Biotech, LLC has been developing proprietary technologies to recycle carbon dioxide emission into microalgae varieties with robust growth and oil production capabilities and to achieve commercially feasible harvesting of microalgal products. The Company operates facilities in Gainesville, Florida and a 10 acre facility in Puerto Rico in partnership with University of Puerto Rico, Mayaguez. AFA will work with the Sustainable Agro Biotech team to further its research and develop a viable algae-to-biofuels capacity.

“This announcement, following last week’s news that we have concluded agreements providing AFA with large tracts of land, demonstrates our commitment to the fulfillment of our business plan. We are extremely excited by this acquisition,” commented AFA CEO Craig Frank. “We have had an interest in algae for quite some time and have been looking for a company that fit well with our comprehensive approach to biofuel. This acquisition opens up new opportunities for AFA, and broadens our operational possibilities, both in terms of geography and the types of feedstock we have at our disposal.”

“The opportunity this agreement provides to Sustainable Agro Biotech is meaningful in a number of ways,” remarked Arup Sen, President of Sustainable Agro Biotech, LLC. “AFA will lend us support, encouragement, vision, and the larger infrastructure under which we can explore various methods of growing algae and extracting oil from algae. We are excited by the possibilities the combination of our talents and resources will allow.”

About Alternative Fuels Americas

Alternative Fuels Americas (AFA) is a “seed to pump” company developing above ground oil fields through the planting of high yield crops. The Company expects to engage in all phases of the biodiesel process – planting, growing, and harvesting Jatropha, crushing and refining Jatropha seeds into biodiesel, and selling the biodiesel or green fuel oil into the local markets. For more information, visit http://www.alternativefuelsamericas.com

About Sustainable Agro Biotech, LLC

Founded in 2007 in Puerto Rico, Sustainable AgroBiotech, LLC develops proprietary technologies related to collection and use of unique microalgae varieties, recycling of carbon dioxide emission into microalgae biomass as a source of fuel oil and environmentally safe, commercially feasible methods to harvest microalgal products.

This press release includes statements that may constitute “forward-looking” statements, usually containing the words “believe,” “estimate,” “project,” “expect” or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, acceptance of the Company’s current and future products and services in the marketplace, the ability of the Company to develop effective new products and receive regulatory approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company’s periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

source: market watch

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

BIODIESEL BLOGSPOT

BIODIESEL NEWS

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

Agricultural giant Tyson Foods Inc. and fuel developer Syntroleum Corp. will announce Monday that they have successfully opened a plant that makes diesel from chicken fat and leftover food grease.

But they say their new venture won’t survive unless Congress gives them a hefty tax break, an argument that many other alternative energy projects are also making.

A raw-materials check at the Tyson-Syntroleum alternative-diesel plant.

Tyson and Syntroleum say they’ve begun in recent weeks to make diesel and jet fuel from chicken fat, beef tallow and a range of greases and oils at a plant they’ve built in Geismar, La., south of Baton Rouge. The raw materials are leftovers from Tyson’s meat-processing plants and other food-processing factories and restaurants.

The Louisiana refinery has the capacity to produce 75 million gallons of fat-based fuel annually—making it tiny by oil-industry standards but among the bigger alternative-fuel plants in the U.S.

Buyers include oil companies mandated by federal law to mix renewable fuel into their conventional diesel, the companies say, though they wouldn’t identify the purchasers, citing confidentiality agreements. The U.S. Air Force confirmed that it has contracted to buy about 40,000 gallons for testing the fuel for potential use in planes.

The companies contend that the fuel won’t be economically viable unless Congress restores a $1-a-gallon federal tax credit that used to go to companies that mixed alternative fuels into petroleum-based diesel. That break expired at the end of last year, when the $170 million Louisiana plant was under construction.

Had Syntroleum known Congress would let the break lapse, the company probably wouldn’t have built the plant, said Jeff Bigger, a company senior vice president.

Jeff Webster, a Tyson group vice president, said that if the tax break isn’t extended, “The whole green-fuels industry in the U.S. is going to go down.”

Tyson Foods and fuel developer Syntroleum Corp. have successfully opened a factory that makes fuel from chicken fat and food grease. But they say the venture won’t survive unless Congress gives them a hefty tax break. Jeffrey Ball reports from Dallas.
The alternative-diesel credit is among several tax breaks that have lapsed or will soon do so. The Obama administration and Congress will be discussing in coming weeks whether to continue the breaks amid concerns over the federal deficit.

Similarly, a 45-cent-a-gallon tax break for companies that blend ethanol into gasoline is due to expire at the end of this year. Makers of the corn-based fuel are lobbying Congress to extend it.

Several U.S. biodiesel plants have shut down recently, some citing the expiration of the $1-a-gallon tax credit for alternative diesel. Biodiesel—made from grease or oil mixed with chemicals in vats—was all the rage a few years ago, when the tax break existed.

Tyson and Syntroleum aren’t making biodiesel. They use heat to change the molecular structure of fats and oils and then refine them into fuel. They say their brew behaves more like conventional diesel and jet fuel than biodiesel does—meaning it could be used in large quantities in existing pipelines, gas stations, cars, trucks and planes.

Their fuel is registered with the Environmental Protection Agency for use in cars and trucks. It hasn’t been certified for use in planes.

JEFFREY BALL

SOURCE: WSJ