ETHIOPIA: Metehara begins ethanol production

The Metehara Sugar Factory would supply ethanol to the market after completing installation of equipment and construction work with ETB144 million this budget year, according to the Walta Information Center. Factory Projects and Productivity Manager, Andualem Bekele, told WIC that preparations have been made to finalize the installation of the equipment and construction work within a year so that the country would utilise ethanol as an alternative energy source for fuel. The factory in collaboration with Ethiopian Sugar Development Agency has already recruited the necessary human power required for the production, he said, adding that the agency would cover 30% of the ETB144 million for the installation while the remaining 70% would be covered with bank loan. Until recently, the factory has been exporting molasses due to being unable to put it to use locally. Following the rise in price of fuel in the last three years, however, the need for the by product, which is a raw material for the production of ethanol, has increased and consequently, the factory has begun storing it, he said. The current molasses production of the factory enables it to produce more than 11.2 million liters of ethanol alcohol annually, he said, further adding that preparations are underway to double the sugar and ethanol produce of the factory after three years.

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BRAZIL: August ethanol exports at 623.3 million litres

Brazil's ethanol exports for August rose again, to 623.3 million litres, according to Dow Jones. Ethanol export volume was as high as 602 million litres in July. In August 2007, Brazil exported 439.1 million litres. Most of the ethanol being delivered in August was from business closed in May and June, when US gasoline prices rose to over US$4 a gallon.

 

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BRAZIL: CONAB sees 2008/09 sugar production at 32.8 million tonnes

Brazil’s Agriculture Ministry's CONAB crop-forecasting agency said Brazilian mills will produce 32.8 million metric tonnes of sugar this year, up from 31.3 million tonnes last year, according to Bloomberg. CONAB in April forecast sugar output of 33.9 million to 35.2 million tonnes. Above-average rainfall, which pared sugarcane yields, forced growers to slow harvesting, while mills turned more of the tropical plant into ethanol to power cars in Brazil and the US. The slowing output, along with declining acreage in India, will help push up sugar prices 26% by year-end, Newedge USA LLC's Rodrigo Costa. Brazilian mills will turn 57% of their sugarcane into fuel this year, up from 54% last year, Conab said. Ethanol output will=2 0rise to 27.1 billion litres (7.1 billion gallons) from 23 billion litres last year. Ethanol use in Brazil, the world's biggest exporter of the biofuel, will rise 32% in the next three years as the number of flexible-fuel cars climbs, CONAB said in a separate statement. Consumption in Brazil will rise to 24.8 billion litres by 2011, up from 18.8 billion this year, the agency said.

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Kingsman sees 2008/09 sugar production deficit at 3.83 million tonnes

Kingsman says world sugar output in 2008/09 (April-March) will fall short of consumption by 3.83 million metric tonnes (raw value), according to Dow Jones. This contrasts from last quarter's projection for a 3.29-million-tonne surplus. =0 A Global sugar output for 2008/09 was forecast at 160.6 million tonnes, down from the previous forecast of 166.3 million tonnes. "Wet weather, rising production costs, a stronger real and higher ethanol prices have pulled (Brazilian) sugar production numbers lower," said Kingsman. "India's 2008/09 prospects have also diminished, as a late monsoon in Maharashtra reduced cane growth,” said Kingsman. Maharashtra is the biggest sugar producing state in India. The report added that India's farmers were also attracted to other crops which were fetching higher prices. In addition projected 2008/09 consumption was raised to 164.43 million tonnes, from the previous projection of 163 million tonnes. The largest upward adjustments were for China and India. Kingsman said sugar is replacing grains in lysine and MGS fermentation in Asia; in the US sugar replaced some use of High Fructose Corn Syrup; while in Australia some raw sugar has been made into ethanol.

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BRAZIL: Ethanol training given as part of tech coop agreements

More than 70 representatives from around the world received training on ethanol as part of bilateral technical cooperation agreements during the First Ethanol week, according to the Arab Brazilian Chamber of Commerce. The aim of the event is to provide training to 70 repre sentatives and leaders from countries such as Angola, Mozambique, Senegal, India, Mexico, Paraguay, Colombia and Honduras, in manufacturing ethanol from sugarcane. The course, simultaneously translated into Spanish and French, tackled matters such as the ethanol scenario within the context of global and Brazilian energy, the potential of sugarcane in energy production, the importance and the characteristics of the sugar and alcohol industry in Brazil, the ethanol production chain, distribution and commercialization of ethanol: transport, storage, supply and export.

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US: New bacteria could make cheaper cellulosic ethanol

Genetically engineered bacteria could make cellulosic ethanol cheaper to manufacture, according to Reuters. The genetically engineered bacteria ferment cellulose to produce ethanol more efficiently, the scientists wrote in the Proceedings of the National20Academy of Science. Naturally occurring bacteria can also ferment cellulose but they do it at lower temperatures that require the use of an expensive enzyme called cellulase, said Lee Lynd of Dartmouth College, an author of the study. The newly engineered bacterium, known as ALK2, can ferment all the sugars present in biomass and can do it at 122 degrees F (50 degrees C), compared with conventional microbes that cannot function above 98.6 degrees F (37 degrees C). At higher temperatures, the fermentation process required two and a half times less cellulase in one controlled experiment, Lynd said in a telephone interview. Doing it the natural way produces organic acids in addition to the ethanol, while ethanol is the only organic product of fermentation with the new bacteria, Lynd said. ALK2 is more efficient than the microorganisms now in use in breaking down all five sugars present in cellulosic biomass simultaneously, he said.

 

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Accenture sees growing pains among biofuel industry

Accenture says first-generation ethanol and biodiesel have carved a space in the global fuel market, but their growth is dogged by unclear regulation, adverse consumer perception, need for investment in supply chain and risk-management tools, according to Dow Jones. "There are a lot of pieces that need to come together to make it feasible," said Melissa Stark, London-based global lead of biofuels for Accenture and author of the study titled "Biofuel's Time of Transition," in an interview with Clean Technology Insight. In the firm's second in-depth study of biofuels, Accenture found that the "growing pains" for the industry are bigger than the analysts had expected when they published the first study in 2007. While most of the elements to make biofuels a global industry are in place, they will need to evolve to support its growth. Stark found a "patchwork" of regulations determining the use of biofuels across the world, with rules being made depending on how much weight lawmakers give to agriculture support, energy security and climate change. In the US, energy and food-supply security are behind the push for the inclusion of ethanol in the fuel mix, but a greater awareness about maize’s poor energy efficiency as a feedstock and its impact on the environment has made regulators and consumers wary. Government's clarity on the issue is crucial for the industry, and Stark sees regulation moving away from mandating the use of ethanol to encouraging cleaner fuels, with sustainably-produced ethanol and biodiesel in the mix. "For the US, there's so much first-generation ethanol, we need to create support for second- and third-generation," said Stark, adding that producers of corn-based ethanol are themselves investing in ways to use more crop waste to offset emissions. "They can live together in tandem for a while, and move towards using mor e of the waste than the food," she said. But the biggest challenges for the industry lie in the supply chain, infrastructure and financial markets, according to the report. The chicken-and-egg conundrum of there not being enough ethanol pumps for the automakers to make the cars that run on 85% ethanol, or E85, or there not being enough cars on the road demanding ethanol for retailers to install the pumps is still a powerful hurdle for the industry. As of April, there were approximately 1,557 locations for E85 in the US, mostly in the Midwest, close to a supply of ethanol, according to the study. To install an E85 outlet within five miles of the majority of drivers would require a total of 20,000 sites, according to Phil Lampert, executive director of the National Ethanol Vehicle Coalition. Estimates of the cost of converting pumps to E85 range from US$3,350 per site, according to Illinois officials' estimate based on the state's conversion of 64 sites, to US$7,000 for a new pump, Accenture said in the report. Oil companies are faced with decisions to invest in the infrastructure to blend, store and distribute biofuels, and on securing supply from a diverse pool of producers that include many small-sized companies. Altering the supply chain to integrate biofuels requires large investments but the integrated oil companies are reluctant without a clear sign from regulators that the growth of the market will continue to be supported. "Now it's=2 0about monetizing these investments in the supply chain, and trying to find a risk management solution - these are the two things that will take a lot of heavy-lifting to get through," said Stark. Financial markets for ethanol and biodiesel are in their infancy, with not enough liquidity for producers and consumers to trade across markets and across the globe, or to manage risk through futures and options, said the report. Competing technologies such as algae biodiesel and synthetic biology, known as third-generation biofuels, as well as the electric plug-in cars and hydrogen-based fuels will challenge biofuels, said Accenture. But there's room for all the technologies, and biofuels have at least a 10-year lead on any of these competing technologies to establish itself as a reliable and sustainable fuel, said Stark. THAILAND: Japanese demand supports market Thai sugar export premiums rose in the week to Tuesday despite a lull in Indonesian sugar import activity, as a strong demand from Japan supported prices, according to Dow Jones. Sugar export premiums in Thailand, a major exporter, rose for J-spec raw sugar for spot delivery, offered at a premium of 210 points, compared with 132 points a week ago, to the October contract on New York's benchmark Intercontinental Exchange. "Indonesia has stopped importing due to the crushing season but Japan is turning to Thai sugar as Australia is exporting less due to the weak international prices," said a sugar trader with an international trading house based in Singapore.

 

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INDIA: HPCL sets up ethanol JV with Shree Renuka Sugars

State-run refiner Hindustan Petroleum Corp Ltd and sugar producer Shree Renuka Sugars Ltd on Thursday said they signed a deal to set up a sugar plant with facilities to produce ethanol in Maharashtra, according to Reuters. The unit will be set up through a joint venture, the companies said in separate statements to the stock exchange.

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EU keeps biofuels target for 2020

The European Parliament’s industry committee has voted to retain its 10% renewables target for transport fuel by 2020, according to Spiegel Online. The 10% target will include 6% first generation biofuels while the remaining 4% will be second-generation biofuels or other renewables such as electricity or hydrogen. The committee’s vote will be the foundation for the Parliament’s views on renewables when it continues negotiations with the EU’s 27 member states on final legislation.

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US: Hawaii mill to exchange sugar for ethanol production

Hawaii’s Gay & Robi nson sugar, based on Kauai for more than 100 years, will soon end sugar production in exchange for ethanol production in a JV with Pacific West Energy LLC, according to local KHNL TV station. "While sugar has been an integral part of the heritage and way of life for generations of Kauai residents, we are encouraged that Gay & Robinson will continue to be an important part of the island's economic future,” said Governor Linda Lingle. “The company's transition from sugar to renewable energy signals a new chapter for Kaua‘i and will help position the island for a more secure, clean energy future that is less dependent on imported oil. The State will work closely with Gay & Robinson and Pacific West Energy, LLC to assist during the transition, including expediting the permits and approvals necessary to transform this kama‘âina company."

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CUBA: Hurricane Ike flattens 156,000 hectares of cane

Hurricane Ike flattened 156,000 hectares of Cuban sugarcane and flooded more when it churned along the island for two days this week, according to Reuters. Cuba harvested 330,000 hectares of cane during the 2008 harvest, producing almost 1.5 million tonnes of raw sugar. There are 700,000 hectares devoted to sugar cane in the country. 0A The president of the Cuban sugar technicians said the preliminary figures would no doubt increase as workers gained access to plantations where roads were washed out. "The data is still preliminary and is going to increase ... I saw today a figure of 15,000 hectares flooded," Tirso Saenz told Radio Progresso. Saenz said he was more worried about the flooded cane than that which was flattened, but that both situations were serious. Top sugar reporter Juan Varela in his weekly radio program on Thursday said there was extensive damage to infrastructure. Varela said at least 700 kilometres of plantation roads were washed out and 14 rail and highway bridges linking plantations to mills. Earlier reports had 100,000 pieces of roofing blown off sugar industry mills and other installations.

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CUBA: Hurricanes flatten and flood entire cane crop

Cuba's entire sugar crop was flattened and flooded by Hurricanes Ike and Gustav this month, according to Reuters. "There were 156,600 hectares of cane flattened and 518,879 flooded," according to a preliminary government report on the two storms damage to the country, broadcast by state-run television on Monday. The harvest is still three months away and flattened cane often recovers with some loss in yield, while flooded cane needs to be drained within two weeks to avoid significant losses. The report, read on the evening news, did not indicate how much of the flooded area had been drained. On the sugar industry the report said a little over 3,000 hectares of newly planted cane was lost and some 40,000 metric tonnes of stored sugar was soaked and would be refined again. The Sugar Ministry said at the weekend at least 115 mills and factories were damaged, especially roofs, and 150 railway facilities and 132 warehouses. The Sugar Ministry also reported at least 430 miles (700 kilometres) of plantation roads were washed out and 14 rail and highway bridges linking plantations to mills.

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NEW ZEALAND: Group seeking ban on Brazilian ethanol imports

An ecology group is pressing the New Zealand government to ban imports of Brazilian ethanol claiming that the alternative fuel does not fulfill the country’s sustainability standards, according to New Zealand Energy & Environment Business Week magazine. The Pacific Institute of Resource Management has claimed in its monthly magazine that over the past two years companies have been expanding intensive sugarcane mono-cropping plantations for biofuel production, replacing areas of food production in the Brazilian savannah region. The New Zealand government has commissioned studies to verify the sustainability of Brazilian ethanol.

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US: Ethanol pipelines under investigation

US companies are exploring how to transport ethanol via pipeline, looking at Brazil for examples, according to the Associated Press. Houston-based Kinder Morgan Energy Partners LP this month plans to run a test batch of ethanol through its 105-mile long underground gasoline pipeline from Tampa to Orlando, Fla. Currently, industry experts estimate a pipeline dedicated solely to ethanol would cost about US$1 million per mile. But demand has grown to the point where development of new transportation methods may finally pay off, said Jim Lelio, Kinder Morgan’s director of business development. About 8,000 barrels of straight ethanol will be run through the pipeline and, if successful, the pipeline could be transporting ethanol on a commercial scale by year’s end, Lelio said. The Association of Oil Pipe Lines, a Washington, DC-based trade group that represents about 50 pipeline companies, has been studying whether ethanol can be transported safely in existing pipelines. “We’re still primarily in the lab and we’re still working on technical hurdles,” said Raymond Paul, a spokesman for the Association of Oil Pipe Lines. “We’re hoping we’re close to a solution. And there may be more than one.” The federal Office of Pipeline Safety is studying technology in Brazil, where pipelines have been used successfully to transport sugar-based ethanol for decades, said spokeswoman Patricia Klinger.

 

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INDIA: Restrictions on ethanol hamper mill privatisation process

Bihar state government’s attempt to privatise 15 sugar mills has been hampered by strict rules on ethanol-only facilities, according to India’s Business Standard newspaper. “The amendment in central Sugarcane Control Order allowing direct conversion of sugarcane juice into ethanol would apply only to units which produce sugar. This has prevented many potential investors from investing since they wanted to enter the state only for ethanol production,” said Gautam Singh, minister for sugarcane industries, Bihar. Of the 15 mills, eight have been reserved for sugarcane-based industries like sugar mills or distilleries for=2 0ethanol or alcohol production. The remaining seven can be used by non-sugarcane-based industries. Only four of these mills have attracted interest of investors even though bids were invited in November last year. An attempt to lease out the remaining 11 mills through fresh tendering process has resulted in submission of just two bids, sources said.

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THAILAND: Khon Kaen to raise US$161 million in bonds

Khon Kaen Sugar Industry PCL plans to raise THB5.5 billion (US$161 million) from loans and bonds to fund its business expansion, according to Dow Jones. Some THB2 billion of the funding will come from bonds that the company aims to issue in November. Khon Kaen plans to sell THB1.5 billion of three year bonds and THB500 million of five year bonds. The money will be invested in a power plant as well as sugar and ethanol production. "Our revenue should leapfrog in 2010 after all projects run at full capacity," said assistant vice-president Chanachai Chutimavoraphan. Thailand's second largest sugar exporter expects its sugar factories in Cambodia and Lao to run at full capacity of 150,000 tonnes a year from 2010. The power plant upgrade will raise capacity to 40MW from 20MW and ethanol production should rise to 350,000 litres per day from 150,000 litres.

 

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PHILIPPINES: National biofuels plan brought online

The Philippines have brought online their long awaited biofuels policy, according to the Visayan Daily Star newspaper. This should hopefully kick off investments in the country’s biofuels industry that had been slowed down by the lack of clear guidelines, said National Biofuels Board vice chairman Rafael Coscolluela. More than 20 biofuels investors, many of whom plan on producing ethanol from sugarcane, have been waiting until the guidelines were completed before starting to move in earnest, he said. The one-stop-shop for investors will temporarily be housed at the SRA building in Quezon City, which will be man