ST. GALLEN, Switzerland (MarketWatch) -- BP PLC's (BP.LN) plans to invest $1.5 billion in biofuels in 2011 but won't do so at the expense of food security in the countries where it does invest, Chief Executive Robert Dudley said Friday.
"It is our policy...We will not invest in biofuel, in corn-based ethanol, on lands used for food, it will be in the Brazilian grasslands" which are used specifically for fuel crops, Dudley told an audience at a business conference here.
BP in March bought an 83% stake in Brazilian ethanol and sugar producer Companhia Nacional de Acucar e Alcool, or CNAA, for $680 million. BP was also the first global oil major to make an acquisition in Brazil's ethanol sector, buying a 50% stake in Tropical BioEnergia SA in 2008.
This was echoed by Royal Dutch Shell PLC (RDSA.LN) Chairman Jorma Olila. Shell undertook a $12 billion tie-up with Cosan Industria e Comercio SA, the world's largest sugar and ethanol group, in February last year.
"The only investment in first generation biofuels we have okayed is in Brazil, where it will not interfere with the production of foodstuffs or affect the integrity of the rainforests," Olila said.
Source: http://www.marketwatch.com/story/bp-says-plans-to-invest-in-biofuels-this-year-2011-05-13
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Showing posts with label biofuel investment. Show all posts
Showing posts with label biofuel investment. Show all posts
Wednesday, 8 June 2011
Bloomberg report says biofuels attractive to investors
Private financial support for technology acceleration continues to be important, and certain technologies are becoming clear favorites for investors, according to a recent Bloomberg New Energy Finance analysis of financial investments made in biofuels projects since 2004.
According to the analysis, venture capitalists and private equity firms have provided 60 percent, or $2.7 billion, of the total private investments made in next-generation biofuels since 2004. Of those investments, biochemical conversion technologies received 66 percent of the action while thermochemical technologies received 30 percent. Sixty percent of the investments made in next-generation biofuels through public markets since 2004 have also been directed toward biochemical technologies. Additionally, the analysis noted that companies backed by a well-known strategic partner appear to receive greater interest from the public markets. The analysis noted that three of the most conspicuous public offerings in recent years have been from companies developing biochemical processes that also have prominent partners, such as oil companies or pharmaceutical firms.
Government agencies also seem to prefer biochemical pathways. Since 2004, those technologies have received the majority of dispersed federal funds, according to Bloomberg’s analysis. Enzymatic hydrolysis projects have received 30 percent of the government’s next-gen biofuels funds, followed by acid hydrolysis projects, which received 21 percent of the dispersed funds. The analysts noted in their report, however, that while the government has announced $3.1 billion in investments to the industry since 2004, less than half of that amount has actually been received by awardees. This has negatively impacted the commercialization of next-generation biofuel technologies. “The clear disparity between the ‘announcement’ and ‘disbursement’ of funds by the DOE and USDA - particularly of loan guarantees - illustrates the inefficacy of the government’s fractional payout scheme,” the analysis noted.
“Technologies are not achieving the covenants set by the lending agencies at the expected pace. Consequently, project developers do not have access to the totality of the funds committed to their projects. As a result, technological developments take longer, forcing projects to seek additional funding from the private sector, which has been near impossible during the financial recession of the past 30 months.” On a positive note, the analysts believe the USDA’s announcement earlier this year to provide $460 million through its loan guarantee program could help to alleviate the bottleneck, if it is able to disburse funds in a more timely fashion.
Bloomberg analysts attributed greater interest in biochemical conversion processes to the fact that those technologies can be proven at a smaller scale than other technologies, such as thermochemical processes. Further, the analysts found that enzymatic hydrolysis appears to be the most attractive biochemical process, likely because it provides the ability to use coproducts produced from the process to generate heat and power and appears to have greater energy input-output benefits when compared with other technologies. The analysts noted, however that international oil companies are particularly well-suited to invest in thermochemical processes. And while most oil companies are publicly traded, many corporate investment deals are not made public, so it is possible that a greater amount of financial support has been given to thermochemical pathways than is illustrated by the analysis.
Source: http://www.ethanolproducer.com/articles/7829/bloomberg-report-says-biochemical-pathway-attractive-to-investors
According to the analysis, venture capitalists and private equity firms have provided 60 percent, or $2.7 billion, of the total private investments made in next-generation biofuels since 2004. Of those investments, biochemical conversion technologies received 66 percent of the action while thermochemical technologies received 30 percent. Sixty percent of the investments made in next-generation biofuels through public markets since 2004 have also been directed toward biochemical technologies. Additionally, the analysis noted that companies backed by a well-known strategic partner appear to receive greater interest from the public markets. The analysis noted that three of the most conspicuous public offerings in recent years have been from companies developing biochemical processes that also have prominent partners, such as oil companies or pharmaceutical firms.
Government agencies also seem to prefer biochemical pathways. Since 2004, those technologies have received the majority of dispersed federal funds, according to Bloomberg’s analysis. Enzymatic hydrolysis projects have received 30 percent of the government’s next-gen biofuels funds, followed by acid hydrolysis projects, which received 21 percent of the dispersed funds. The analysts noted in their report, however, that while the government has announced $3.1 billion in investments to the industry since 2004, less than half of that amount has actually been received by awardees. This has negatively impacted the commercialization of next-generation biofuel technologies. “The clear disparity between the ‘announcement’ and ‘disbursement’ of funds by the DOE and USDA - particularly of loan guarantees - illustrates the inefficacy of the government’s fractional payout scheme,” the analysis noted.
“Technologies are not achieving the covenants set by the lending agencies at the expected pace. Consequently, project developers do not have access to the totality of the funds committed to their projects. As a result, technological developments take longer, forcing projects to seek additional funding from the private sector, which has been near impossible during the financial recession of the past 30 months.” On a positive note, the analysts believe the USDA’s announcement earlier this year to provide $460 million through its loan guarantee program could help to alleviate the bottleneck, if it is able to disburse funds in a more timely fashion.
Bloomberg analysts attributed greater interest in biochemical conversion processes to the fact that those technologies can be proven at a smaller scale than other technologies, such as thermochemical processes. Further, the analysts found that enzymatic hydrolysis appears to be the most attractive biochemical process, likely because it provides the ability to use coproducts produced from the process to generate heat and power and appears to have greater energy input-output benefits when compared with other technologies. The analysts noted, however that international oil companies are particularly well-suited to invest in thermochemical processes. And while most oil companies are publicly traded, many corporate investment deals are not made public, so it is possible that a greater amount of financial support has been given to thermochemical pathways than is illustrated by the analysis.
Source: http://www.ethanolproducer.com/articles/7829/bloomberg-report-says-biochemical-pathway-attractive-to-investors
Mozambique has 31 biofuel investment projects
Maputo, Moçambique, 8 June – Mozambique’s Centre for Agricultural Promotion (Cepagri) since 2007 has registered a total of 31 investment projects in biofuel production, covering an area of 324,000 hectares, according to the news bulletin of the Confederation of Economic Associations of Mozambique (CTA).
The text published in the latest edition of the bulletin did not mention the amount of investment in the registered projects.
In order to make the biofuel development project viable in Mozambique the government approved the Strategic Biofuel Policy in 2009.
On 29 March, the council of ministers approved the Regulation on Biofuel Mixtures, as well as establishing the Inter-ministerial Biofuel Commission, headed up by the ministries for Energy and Agriculture.
These instruments were set up to promote the domestic biofuel market, its supervision and coordination.
The government expects these regulations to establish conditions for the introduction of mixtures of 90 percent gasoline with 10 percent ethanol and 97 percent fossil diesel with 3 percent biodiesel.
Source: http://www.macauhub.com.mo/en/2011/06/08/mozambique-has-31-biofuel-investment-projects/
The text published in the latest edition of the bulletin did not mention the amount of investment in the registered projects.
In order to make the biofuel development project viable in Mozambique the government approved the Strategic Biofuel Policy in 2009.
On 29 March, the council of ministers approved the Regulation on Biofuel Mixtures, as well as establishing the Inter-ministerial Biofuel Commission, headed up by the ministries for Energy and Agriculture.
These instruments were set up to promote the domestic biofuel market, its supervision and coordination.
The government expects these regulations to establish conditions for the introduction of mixtures of 90 percent gasoline with 10 percent ethanol and 97 percent fossil diesel with 3 percent biodiesel.
Source: http://www.macauhub.com.mo/en/2011/06/08/mozambique-has-31-biofuel-investment-projects/
Thursday, 2 June 2011
FAO and RFA Disagree with Oxfam on Biofuels and Food Security
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According to the Global Renewable Fuels Alliance (GRFA) a recent Oxfam report rightly exposes the effects of dangerous commodity speculation, escalating oil prices, short-falls in agriculture technology, and climate change on future world food supplies. However the report fails in its assessment of biofuels and their impact on global food security.
A recent UN Food and Agriculture Organization report said that investment in biofuels could actually help improve food security in rural economies by creating jobs and boosting incomes. The head of the FAO's Bioenergy and Food Security project, Heiner Thofern, said that if "done properly and when appropriate, bio-energy development offers a chance to drive investment and jobs into areas that are literally starving for them."
"The GRFA fully agrees with the FAO that biofuels are part of the solution," stated Bliss Baker, spokesperson for the GRFA. "Oxfam should recognize that biofuels have the ability to help impoverished people by attracting much needed investment in agriculture, particularly in developing countries," added Baker.
Recently the International Energy Agency released their Technology Roadmap: Biofuels for Transport which found that by 2050, biofuels could provide 27 per cent of the world's total transport fuel which would eliminate around 2.1 gigatonnes of CO2 emissions per year. The IEA went on to say that this could be achieved while not compromising global food security.
"Some of the factors affecting global food security should concern Oxfam," stated Baker. "Nevertheless biofuels are a clear part of the food and energy security answer because they encourage greatly needed agricultural investment and reduce GHG emissions without jeopardizing food security," concluded Baker.
The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 65 per cent of the global biofuels production from 44 countries. Through the development of new technologies and best practices, the Alliance members are committed to producing renewable fuels with the smallest possible footprint.
Download your FREE Agricultural Investment and Farmland Investment Guide here
Source: marketwire.com
According to the Global Renewable Fuels Alliance (GRFA) a recent Oxfam report rightly exposes the effects of dangerous commodity speculation, escalating oil prices, short-falls in agriculture technology, and climate change on future world food supplies. However the report fails in its assessment of biofuels and their impact on global food security.
A recent UN Food and Agriculture Organization report said that investment in biofuels could actually help improve food security in rural economies by creating jobs and boosting incomes. The head of the FAO's Bioenergy and Food Security project, Heiner Thofern, said that if "done properly and when appropriate, bio-energy development offers a chance to drive investment and jobs into areas that are literally starving for them."
"The GRFA fully agrees with the FAO that biofuels are part of the solution," stated Bliss Baker, spokesperson for the GRFA. "Oxfam should recognize that biofuels have the ability to help impoverished people by attracting much needed investment in agriculture, particularly in developing countries," added Baker.
Recently the International Energy Agency released their Technology Roadmap: Biofuels for Transport which found that by 2050, biofuels could provide 27 per cent of the world's total transport fuel which would eliminate around 2.1 gigatonnes of CO2 emissions per year. The IEA went on to say that this could be achieved while not compromising global food security.
"Some of the factors affecting global food security should concern Oxfam," stated Baker. "Nevertheless biofuels are a clear part of the food and energy security answer because they encourage greatly needed agricultural investment and reduce GHG emissions without jeopardizing food security," concluded Baker.
The Global Renewable Fuels Alliance is a non-profit organization dedicated to promoting biofuel friendly policies internationally. Alliance members represent over 65 per cent of the global biofuels production from 44 countries. Through the development of new technologies and best practices, the Alliance members are committed to producing renewable fuels with the smallest possible footprint.
Download your FREE Agricultural Investment and Farmland Investment Guide here
Source: marketwire.com
Thursday, 26 May 2011
Renewable Energy: U.S. Aviation Biofuels Industry a Go
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In 2010, the Sustainable Aviation Fuels Northwest (SAFN) was formed to determine how the Pacific Northwest could create a viable and robust biofuels industry with the goal of creating fuels for the aviation industry. Yesterday, a 10 month study conducted by Climate Solutions has determined that the Pacific Northwest has the diverse feedstock, fuel-delivery infrastructure and political will needed to achieve their goals. However, the report stressed that creating an aviation biofuels industry will depend upon securing early government policy support to prioritize the aviation industry in U.S. biofuels development.
Partners in the program include Boeing, Alaska Airlines, Portland International Airport, Seattle-Tacoma International Airport, Spokane International Airport and Washington State University.
“It is critical to the future of aviation that we develop a sustainable supply of aviation biofuels,” said Boeing Commercial Airplanes President and CEO Jim Albaugh during a press announcement. “Airlines are particularly vulnerable to oil price volatility, and the aviation community must address this issue to maintain economic growth and further mitigate the environmental impacts of our industry.”
Dr. John Gardner, vice president for advancement and external affairs at Washington State University noted that there were three goals of the report. The study aimed to verify what the sources of biomass would be; what the supply chain would be and the steps needed to make it happen; and what policies might be barriers.
To create a market for aviation biofuels, the study outlines an integrated approach recommending the use of diverse feedstock and technology pathways, including oilseeds, forest residues, solid waste and algae. In addition, the study outlines the long-term importance of securing aviation biofuels as a top government priority and using the aviation industry to drive growth in domestic production.
Bill Ayer, Alaska Air Group Chairman, noted that consumers care about the issue of high fuel costs and sustainable future fuels and the airlines are taking the issue seriously.
“Alaska Airlines has made significant strides in reducing its environmental impact by enhancing the efficiency of its operations, including using satellite-based flying technology and investing in the most fuel-efficient airplanes in their class – but efficiency is only part of the answer,” said Ayer. “In order for the aviation sector to continue its impressive record of fuel efficiency and emissions reduction while continuing to grow, it is important that a sustainable supply of aviation biofuels is developed.”
The Pacific Northwest is a great place to drive the initiative to aviation biofuels – Bill Bryan, Port of Seattle commission president, said that their airport is the most sustainable in America and challenged airports across the country to outdo them.
“Airports have been leaders for years in finding ways to reduce their environmental footprint, from clean fuel sources for taxis and shuttles to electrification of ground equipment and pre-conditioned air, but in order to take the next big step we have to address emissions from aircraft. We can’t get there without biofuels. It not only will help the sustainability of the Northwest but also the aviation industry,” concluded Bryan.
In 2010, the Sustainable Aviation Fuels Northwest (SAFN) was formed to determine how the Pacific Northwest could create a viable and robust biofuels industry with the goal of creating fuels for the aviation industry. Yesterday, a 10 month study conducted by Climate Solutions has determined that the Pacific Northwest has the diverse feedstock, fuel-delivery infrastructure and political will needed to achieve their goals. However, the report stressed that creating an aviation biofuels industry will depend upon securing early government policy support to prioritize the aviation industry in U.S. biofuels development.
Partners in the program include Boeing, Alaska Airlines, Portland International Airport, Seattle-Tacoma International Airport, Spokane International Airport and Washington State University.
“It is critical to the future of aviation that we develop a sustainable supply of aviation biofuels,” said Boeing Commercial Airplanes President and CEO Jim Albaugh during a press announcement. “Airlines are particularly vulnerable to oil price volatility, and the aviation community must address this issue to maintain economic growth and further mitigate the environmental impacts of our industry.”
Dr. John Gardner, vice president for advancement and external affairs at Washington State University noted that there were three goals of the report. The study aimed to verify what the sources of biomass would be; what the supply chain would be and the steps needed to make it happen; and what policies might be barriers.
To create a market for aviation biofuels, the study outlines an integrated approach recommending the use of diverse feedstock and technology pathways, including oilseeds, forest residues, solid waste and algae. In addition, the study outlines the long-term importance of securing aviation biofuels as a top government priority and using the aviation industry to drive growth in domestic production.
Bill Ayer, Alaska Air Group Chairman, noted that consumers care about the issue of high fuel costs and sustainable future fuels and the airlines are taking the issue seriously.
“Alaska Airlines has made significant strides in reducing its environmental impact by enhancing the efficiency of its operations, including using satellite-based flying technology and investing in the most fuel-efficient airplanes in their class – but efficiency is only part of the answer,” said Ayer. “In order for the aviation sector to continue its impressive record of fuel efficiency and emissions reduction while continuing to grow, it is important that a sustainable supply of aviation biofuels is developed.”
The Pacific Northwest is a great place to drive the initiative to aviation biofuels – Bill Bryan, Port of Seattle commission president, said that their airport is the most sustainable in America and challenged airports across the country to outdo them.
“Airports have been leaders for years in finding ways to reduce their environmental footprint, from clean fuel sources for taxis and shuttles to electrification of ground equipment and pre-conditioned air, but in order to take the next big step we have to address emissions from aircraft. We can’t get there without biofuels. It not only will help the sustainability of the Northwest but also the aviation industry,” concluded Bryan.
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