US: LS9 claims breakthrough on sugar-to-diesel process

LS9, Inc, the renewable petroleum company, today announced in Science magazine a major scientific breakthrough that will significantly lower the cost of producing "drop-in" hydrocarbon fuels that are low-carbon, sustainable and compatible with the existing fuel distribution infrastructure, according to a company press release. This breakthrough has allowed LS9 to accelerate its technology and demonstrate alkane production at pilot scale.
"This is a one step sugar-to-diesel process that does not require elevated temperatures, high pressures, toxic inorganic catalysts, hydrogen or complex unit operations," said Steve del Cardayre, vice president of Research and Development. "We believe in simple processes at LS9, and the simplicity of this process has allowed us to successfully accelerate its scale-up and development."
In the article "Microbial Biosynthesis of Alkanes", a team of LS9 scientists announce the discovery of novel genes that, when expressed in E.coli, produce alkanes, the primary hydrocarbon components of gasoline, diesel and jet fuel. This discovery is the first description of the genes responsible for alkane biosynthesis and the first example of a single step conversion of sugar to fuel-grade alkanes by an engineered microorganism.
For over 20 years scientists have tried to identify the genes that enable particular natural organisms to directly convert biomass into alkanes. However, previous scientific research has failed to identify these genes. To solve this mystery, the LS9 team looked into the genomes of bacteria that produce alkanes in nature known as cyanobacteria. "We evaluated many cyanobacteria that made alkanes and identified one that was not capable of producing them. By comparing the genome sequences of the producing and non-producing organisms, we were able to identify the responsible genes," said Andreas Schirmer, Associate Director of Metabolic Engineering at LS9.
This breakthrough is consistent with LS9's focus of developing renewable petroleum products using a proprietary one-step fermentation process that significantly reduces the costs and energy inputs. While other biological routes to the production of renewable hydrocarbons are emerging, these other routes require costly and energy intense chemical conversion technologies such as distillation or hydrogenation. LS9's patent pending discovery enables the conversion of renewable biomass into fuels and chemicals without the need for these costly and energy intense chemical conversion technologies.

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VIETNAM: E5 mix to sell in fuel stations next month, two years after sales were halted

An ethanol-gasoline product will be sold in five large cities in Vietnam next month, nearly two years after its sales were halted due to the lack of quality standards for biofuel, the producer said Thursday, according to Thanh Nien News.
E5 gasoline, a blend of 5% ethanol and 95% gasoline, will be retailed at VND15,450 (US$0.81) per litre, slightly lower than prices of the popular A92 gasoline, local news website VnExpress reported, citing PetroVietnam Oil Corporation.
Ly Hong Duc, deputy general director of PetroVietnam Oil Corporation, said the product has been tested on various kinds of vehicles and shown good results. Ethanol can replace other harmful substances and make gasoline products less polluting, he said. Ethanol is made from crops like cassava and sugarcane.
The E5 gasoline was first launched in the market in September 2008 on a trial basis, but sales were halted six days later as there was no standard system for the product at the time. The government issued regulations on quality management of biofuel products last year.
PetroVietnam Oil Corporation is a subsidiary of state-owned gas and oil group PetroVietnam. The group plans to supply 240 million litres of E5 to local consumers in 2012 through 4,300 stations, compared to only 20 stations next month, according to VnExpress.
The group is building three new ethanol plants in Vietnam with a total investment of US$240 million, the news source said.

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US: Fight in Mass. over biomass energy's impact on health

There is evidently no form of energy, including renewable energy, that lacks opposition. A big spat right now centers on biomass power plants, according to The New York Times' Green Blog.
Biomass is a broad category that encompasses everything from burning whole trees to burning leftover wood chips, agricultural residues or household garbage. The focus of the argument is currently in Massachusetts, where state regulators are considering raising the bar for biomass plants.
Supporters say that cutting down trees to make electricity is carbon-neutral, because the trees will regrow and absorb carbon dioxide from the air. But a recent study suggests that the trees will take years to do that, offering little short-term help. (The same argument can be made about solar cells; manufacturing them involves releasing carbon dioxide, then takes some time to break even before yielding a net benefit in decreased carbon dioxide emissions.)
Biomass is a favored form of renewable energy because its generation can be reliably scheduled; the wind and sun can merely be predicted, and not always very well, leading to a need for extensive storage.
Now a group in Cambridge, Mass., is mounting a more direct assault on harnessing biomass: the Biomass Accountability Project is trotting out experts in medicine and forestry to argue against such power generators.
Margaret Sheehan, a lawyer with the group, says that even if new biomass plants meet all Environmental Protection Agency regulations on air emissions, generation could still endanger human health because the standards are inadequate. For emissions of very small soot particles, she said, “there is no safe known limit.”
That position has some support, particularly in New England. “We cannot afford to trade our health to meet our energy needs,’’ the American Lung Association of New England said in a position statement issued in December. Biomass plants can emit several pollutants harmful to the young, the old and people with respiratory problems, the group said.
But on the other side, the Biomass Power Association is gearing up to fight the notion that burning trees adds to carbon in the atmosphere. The group’s member companies use wood scraps from trees that were cut down for other purposes, said Bob Cleaves, the group’s chief executive. The association also argues that the study Massachusetts is using is misleading.
“The carbon cycle is beneficial,’’ Mr. Cleaves said. “Biomass energy should be supported.”
The arguments on both sides lost a bit of vigor when the Senate majority leader, Harry Reid of Nevada, scaled back plans for an energy bill. While many states have standards for embracing renewable energy, a national standard seems elusive to many or even off the table. Some Democrats are still pushing for it, though.

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US: Key politicians question Obama about raising ethanol mix

Leaders of a key House committee are raising concerns with the Obama administration about increasing the limit on the amount of ethanol that can be added to gasoline, according to The Des Moines Register.
Top Democrats and Republicans on the House Energy and Commerce Committee asked a series of questions about whether increased ethanol content would damage engines or increase air pollution, in a seven-page letter Thursday to the Environmental Protection Agency.
The current limit is 10%. Ethanol producers want the agency to raise that to 15%, producing a blend known as E15. The agency has said it is considering allowing E15 to be used only in newer vehicles but has put off making a decision until at least this fall while additional engine studies are completed. Approving E15 for use in some cars but not others could result in consumers damaging vehicles for which the fuel is not intended, the lawmakers wrote.
"Allowing the sale of renewable fuel in a way that damages equipment, shortens its life, or requires costly repairs will likely cause a backlash against renewable fuels," the lawmakers wrote. "It could also seriously undermine the agency's credibility in addressing fuel and engine issues in the future."
The letter was signed by the committee's chairman, Henry Waxman, D-Calif., and top Republican, Rep. Joe Barton of Texas, as well as Edward Markey, D-Mass., the chairman of the subcommittee on energy and environment, and Fred Upton, R-Mich., senior subcommittee Republican member.
The committee writes energy and environmental law. The panel often divides on energy issues between Democrats who favor tougher environmental regulation and Republicans who are allied with the oil and gas industries. Ethanol policy, however, is one issue that unites environmental groups and the oil industry.
Growth Energy, the ethanol trade group that petitioned the environmental agency to raise the ethanol limit, issued a statement: "We have confidence that all of the concerns can be addressed to moving to higher blends of ethanol." A rival group, the Renewable Fuels Association, is urging the agency to consider an interim step, E12. The group said E12 is essentially the same as the existing blend and shouldn't be limited to newer vehicles.
The lone Iowan on the committee, Rep. Bruce Braley, D-Ia., said that he disagreed with the letter and that there is already "sufficient information available to move forward" with E15.
The 10% limit has become an increasing concern to the industry as production has increased to keep up with federal usage mandates and companies seek financing for new ethanol projects.

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EU: Novozymes CEO says Europe lags other nations in biofuel focus

Europe is lagging the US, China and Brazil in developing biofuels for transportation because of a lack of political direction, Novozymes A/S Chief Executive Officer Steen Riisgaard said, according to Bloomberg.
Brazil aims to displace 10% of global gasoline use with ethanol by 2020; China is testing corn-based ethanol in nine provinces; and the US has set fuel standards requiring ethanol use, said Riisgaard, whose companies is the world’s biggest maker of enzymes used to refine biofuels.
“Brazil knows what it wants to do,” Riisgaard said in an interview at Bloomberg’s office in London. “In the United States, similarly, they have a renewable fuels standard -- they know what they want to do. You go to China: the government knows what it wants to do. They have a plan. You come to Europe and there’s not this kind of political direction. We don’t know what we want to do.”
Novozymes estimates ethanol from crops, agricultural waste and grasses can cut greenhouse gas emissions by 90% relative to gasoline. The Bagsvaerd, Denmark-based company draws 17% of its revenue from selling enzymes used to speed up the reactions in producing biofuels.
Novozymes is working with more than 30 companies around the world including Poet LLC, the largest US ethanol producer, Dedini S/A Indústrias de Base, a Brazilian maker of biofuels equipment, Cofco Ltd., China’s largest grain trader and China Petrochemical Corp., known as Sinopec, which is the nation’s second-largest oil producer.
The 27-nation European Union has set itself a target of deriving 10% of its transportation fuel from biofuels by 2020. The push for the fuels is clouded by a debate over whether biofuel production is competing with farmland used for food crops, “which is not relevant when you talk about residues from agriculture” that will be used to make the next generation of biofuels, Riisgaard said.
So-called second-generation biofuels, which come from grasses and crop waste rather than the crops themselves, can be competitive with current ethanol and gasoline within five years without government subsidy, Riisgaard said. With support, the new fuels will be competitive next year, he said.
Poet, based in Sioux Falls, South Dakota, plans to open a new plant next year using enzymes developed by Novozymes to make biofuels, he said.

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US: Ethanol-fueled irrigation system tested near Memphis

Nearly a year after a study revealed the potential for an US$8 billion local biofuel and bio-products production market in the mid-south, BioDimensions Inc.  is developing its own crop of agricultural-based feedstocks near Jackson, Tenn., and testing an ethanol-fueled irrigation system in West Memphis, according to the Memphis Business Journal.
The Memphis Bioworks Foundation-commissioned study, titled “The Regional Strategy for Bio-Based Products in the Mississippi Delta,” was completed by Battelle Technology Partnership Practice and estimated a bio-economy in the region could support 25,000 “green” jobs in the next 10 years, partially due to the prevalence of agricultural land and products in the region. It was the jumping-off point of the project that included planting 14 acres of sweet sorghum in Whiteville, Tenn., last fall to develop into ethanol, says Randall Powell, a specialist with BioDimensions.
“It’s a boutique product, but we’re trying to develop it as an energy product,” Powell says. “We were able to crush the juice out of it and make ethanol.”
While ethanol is currently mixed with gasoline, the market for the fuel alone is still in its infancy. After increasing the size of the crop to 160 acres this year, Powell says BioDimensions partnered with Kearney, Neb.-based AmeriFuels Energy Solutions to use an 8.1 liter, V-8 engine to power an irrigation system for the crop. Powell says the engine is being tested in West Memphis by a local farmer, and plans are to move it to Whiteville this fall in preparation for a 500- to 1,000-acre crop in 2011.

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Biofuel crops in Africa shouldn't damage food supply, report says

Planting biofuel crops in Africa need not damage capacity to grow food and could even enhance food security, according to a controversial review prepared for the Forum for Agricultural Research in Africa, according to AllAfrica.com.
The report, with case studies on six countries in East, West and southern Africa, concludes that bioenergy production can expand across the continent and provide income and energy to farmers without displacing food crops.
Potential conflicts between bioenergy and food needs can be addressed with the right approaches, said Rocio Diaz-Chavez, a researcher at Imperial College, London, and lead author of 'Mapping Food and Bioenergy in Africa', launched at the 5th African Agricultural Science Week in Burkina Faso last week (23 July).
"If approached with the proper policies and processes and with the inclusion of all the various stakeholders, bioenergy is not only compatible with food production but can greatly benefit agriculture in Africa," said Diaz-Chavez, citing the benefits of investment in land, infrastructure and human resources.
The report's conclusions were drawn from a review of existing research and case studies of biofuel production and policies in Kenya, Mali, Mozambique, Senegal, Tanzania and Zambia. It found there is enough land to allow a significant increase in the cultivation of sugar cane, sorghum and jatropha for biofuels without decreasing food production.
But the report has triggered mixed responses from farmer groups and research institutions. Monty Jones, executive director of FARA, cautioned that Africa should not trade food security for biofuel production.
"We need to keep the land for food rather than raise crops for energy," he told SciDev.Net. "We have the big task of increasing agricultural production by six per cent. Governments need to come up with appropriate policies on such issues."
Namanga Ngongi, president of the Alliance for a Green Revolution in Africa said the continent has a food deficit and should prioritise food ahead of biofuels. And Philip Kiriro, president of the Eastern Africa Farmers Federation, added that international investors in biofuels do not take local food security into account, which is likely to result in food shortages.
Meanwhile, some countries are already planting biofuel crops. Senegal, for example, plans to have 321,000 hectares of land under jatropha by 2012 to help meet the country's energy needs and increase the income of farmers.
"We are going for both," Macoumba Diouf, director general of the Senegalese Agriculture Research Institute, told SciDev.Net.
"We need low-cost energy to drive our agriculture and at the same time ensure that our farmers grow food and earn income from growing jatropha on a contract basis."
Ibrahim Togola, a professor at Mali's Rural Polytechnic Institute, said politicians need to understand that Africa's agricultural revolution depends on access to modern energy services.
During discussions of the report at the science week, participants called for a broader conversation on how to meet the energy needs of African farmers.

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KENYA: Chemelil to begin co-gen production in 2012

Chemelil Sugar Company is set to start co-generation of power in collaboration with KenGen Company in early 2012 as an alternative revenue stream, according to Kenya's Daily Nation newspaper.
Managing director Edward Musebe said the sugar miller is targeting to generate about 26MW of power. It will use some and sell the rest.
He, however, said the company will not start production of ethanol soon though this forms part of its future plans.
Musebe said the move is aimed at enabling them to stay relevant in the market ahead of 2012 when the COMESA safeguards come to and end.
The managing director said they are now paying its more than 5,000 farmers weekly for sugarcane deliveries.
Musebe said the company is currently producing about 200 tonnes of sugar per day though it has a 300 tonnes daily capacity.
He attributed low production to lack of maintenance of the factory machines in the past.
Musebe said that in November this year, the company will be closing down for maintenance which he said will be the second in five years.
"After the maintenance, we expect to start producing about 250 tonnes per day," he said at the Kisumu agricultural show.
The MD said that in two months, the firm will be clearing KES80 million (US$1 million) in arrears owed to farmers.
He said the company had introduced new seedling variety which matures in 14 months unlike the current type which takes between 18 months and 24 months.
Musebe said that the new variety has high sucrose content and will improve the income of farmers.
The managing director said the company was ready for privatisation.

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BRAZIL: July ethanol exports fall to 234.4 million litres

Brazil's ethanol exports dropped to 234.4 million litres in July from 487.3 million litres in the same month a year ago, according to Dow Jones.
The ministry said Brazil's ethanol export volume in June was 212 million litres.
Brazil's opportunities to export to markets such as the US have remained slim this year on price. Mills also have been producing more sugar from the ongoing 2010/11 harvest to meet sweetener contracts.
Moreover, most of the ethanol flowing from the mills is directed to Brazil's domestic market--with a growing fleet of flex-fuel cars that can switch from gasoline to ethanol.   

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INDIA: Refiners issue joint tenders for ethanol imports

Indian refiners have jointly issued tenders to import ethanol for loading in September through until October next year, as they seek to meet the country's mandatory ethanol blending requirements, according to Argus.
IOC, Bharat Petroleum and Hindustan Petroleum are each seeking a one-year term supply of ethanol from biomass-derived feedstock, including sugarcane, corn, cassava, bagasse and other agricultural waste. Offers are to be submitted before the tender closes on 18 August, with no specific volumes given.
India made the sale of ethanol-blended gasoline compulsory in 2007, aiming to help sugar mills cope with a slump in sugar prices caused by a record harvest. The Indian government in November last year increased demands on oil companies to blend ethanol into gasoline at a rate of 5pc, after they failed to produce levels needed to meet earlier targets.

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US: Everglades deal for US Sugar land cut back again

For the third and likely last time, Gov. Charlie's Crist's controversial Big Sugar deal is being dramatically downsized, according to the Miami Herald.
With their budget squeezed by a brutal economy and two major legal defeats, South Florida water managers have proposed yet another major whack at a land buy once so bold and bright that environmentalists touted it as the holy grail of Everglades restoration: Buy out the entire U.S. Sugar Corp. -- lock, stock and all 180,000-plus acres -- for US$1.75 billion and convert much of the massive swath of farms into water storage and cleanup projects.
The fragments now left on the table: US$197 million cash for 26,800 acres, most of it citrus groves, and ``options'' to buy the rest at US$7,400 an acre over the next three years or at market price over the next decade.
Eric Buermann, the district's chairman, said Crist understood the fiscal landscape had undergone an upheaval since June 2008, when the governor publicly unveiled the proposal.
``He would like to have done the whole deal as it was originally conceived, as we all wanted to do, but he is obviously a realist,'' Buermann said. ``If you don't have the money, you don't have the money.''
Environmentalists said the whittled-down deal would still salvage what most experts agree the Everglades restoration needs most: more land to catch and clean water.
The parcels -- 17,900 acres of citrus groves in Hendry County and 8,900 acres of sugar fields in the massive Everglades farming area -- would help two ``hot spots'' for water pollution, said Eric Draper, executive director of Audubon of Florida.
Unlike earlier -- and far more expensive -- versions, Draper believes this one has a solid shot at survival.
``The deal was hard for a lot of legislators and other political movers to swallow and when the economy tanked, it made it a harder sale,'' he said. ``Now, we've got something we can get across the finish line.''
A governing board vote scheduled for Aug. 12 may be the last, best shot at preserving a small part of a big deal that Crist had envisioned as his environmental legacy. With Crist leaving the governor's mansion after the November elections, and not much more land left to downsize, odds are it will be this deal or nothing.
Though embraced by most environmental groups and praised in international news coverage, the initial deal to buy out and shut down the state's largest and oldest sugar company quickly ran into trouble.
First, the reeling economy forced a downsizing to a land-only deal within five months. Four months later, it was chopped by two-thirds to US$536 million for 72,800 acres of citrus groves and sugar fields, with options on the remaining 107,500 more.
There was backlash from rural communities who contended the deal would devastate already struggling economies. Two politically powerful foes -- rival grower Florida Crystals and the Miccosukee Tribe -- mounted a fierce legal and lobbying assault that painted the deal as a sweetheart bailout for a major Crist campaign donor. They argued the deal would stick the state with poorly located land it wouldn't be able to build anything on for decades and actually delay Everglades restoration.
The district's plans to bankroll the deal with bonds were pinched by state lawmakers, a Palm Beach County judge and a tight lending market. And, to top it off, two federal judges -- Alan Gold and Federico Moreno -- delivered a double-barreled legal blast in the spring, ripping the state for ``glacial delay'' in cleaning up the Everglades.
Buermann said the deal was a great vision undermined by a ``triple witching hour'' of bad timing.
It was no secret the district was balking at the previous US$536 million price tag.
The agency's annual budget, which depends largely on property taxes in a South Florida market with one of the nation's worst housing markets, had declined by US$150 million in two years

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BRAZIL: Cosan gets US$350 million BNDES loan for logistics

Brazilian sugar and ethanol group Cosan SA Industria e Comercio said its transport unit Rumo Logistica SA was granted a loan of BRL614 million (US$349.26 million) by Brazil's state development bank, BNDES.
The funds will be invested in developing rail transport facilities operated by America Latina Logistica SA in Sao Paulo state, southeast Brazil, and port terminals at Santos, also in Sao Paulo state, Cosan said in a statement late Wednesday.
Rumo is investing a total of BRL1.2 billion in transport facilities, Cosan said.

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UK: Green-certified biofuels feedstock still lacking, exec says

There is still a gap between supply and demand of biofuels feedstock that is both sustainably verified and economically competitive, Patrick Lynch, biofuel sustainability manager for Greenergy told a conferenc audience, according to FarmersGuardian.com.
The company sold 8 billion litres of road fuel per year, including biofuels. The main feedstock used was Brazilian sugarcane for ethanol and soy for biodiesel. UK-grown sugar beet and European rapeseed made up a small proportion.
Currently the Renewable Transport Fuels Obligation (RTFO) required all suppliers of fossil fuels to ensure 3.6% of the road fuels they supply in the UK is made up of renewable fuels. This is set to increase to 5.3% in 2013.
As well as rules covering minimum greenhouse gas savings and traceability, the RFTO has sustainability standards, which lay out five environmental principals. They protect soil, air, water, biodiversity and carbon stocks of the country supplying feedstocks, while the two social principles protect workers’ rights, land rights and community relations.
Existing assurance schemes covered most crops, but Greenergy had to develop its own scheme for Brazilian sugarcane, he said.

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US: Firm to develop R&D center for jatropha biofuel near San Diego

SG Biofuels said this week it plans to develop a research and development center, including a 42,000 square-foot greenhouse, in its efforts to make jatropha, a bush from Mexico, into a viable source of biofuels, according to The San Diego Union-Tribune.
"We'll be able to continue identifying and developing traits and making crop improvements here, in coordination with our different locations around the world," said spokesman Brian Brokowski. The company has research hubs in Hawaii and Central America.
Jatropha is promising because it grows well in marginal soils. It is not edible and has not been domesticated. There are many varieties in the wild. So SB Biofuels is trying to find the ones with the best qualities.
"We realized that the breeding and crop improvements hadn't taken place," Brokowski said. "We started assembling a very diverse collection of plant material, went to the center of origin and created the world's largest collection of jatropha genetic material."
The company is drawn here to be close to molecular biologists at the University of California, San Diego, he said.
The work appears to be paying off, Brokowski said. Earlier this year, the company introduced a variety that produces twice as much oil as commercially available strains.
It says it can produce crude jatropha oil for US$1.40 a gallon, or US$58.80 a barrel. Crude oil has been trading above US$80 a barrel this week.

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INDIA: New industry policy ideas touted

Introduction of marketing executives, being market-savvy and amendment of by-laws governing the sugar industry are some measures suggested by the committee constituted by the state government to make the INR150 billion (US$3.2 billion) industry more competitive, according to the Times of India.

The changes are among the key recommendations of the report submitted by the committee chaired by Vickramsinh Ghatge, chairman of Shri Chhatrapati Shahu Co-operative Sugar Factory Ltd, Kagal in Kolhapur.

Ghatge's factory was judged the best sugar factory nationally last year. The report was submitted to the cooperation minister Harshawardhan Patil 10 days ago.

"Sugar, molasses, ethanol and power will be marketed or processed further as per the market demand in the domestic and global market. A marketing department will be formed in the sugar factories. Executives will give inputs on domestic market, its demand, changing trends and products that will generate higher revenue to the management," Patil said.

The committee has recommended MBAs with three to five years experience for the post, the minister added.

With the Centre mulling sugar decontrol, the sugar factories should also change to stay in competition which will be fierce in the open market. Hence, a professional approach was the needed. Some changes in the by-laws have been explored to enable factories to make dynamic and aggressive decisions in the market, Patil added.

There are some 175 sugar factories in the state. Fifty of these are not in operation for reasons including corruption, mismanagement and uncontrolled expenditure resulting in financial sickness.

"The government wants these factories to get going and perform like other private sector factories like Renuka Sugar and Bajaj. These factories can enter the futures market, National Spot Exchange, and National Multicommodity Exchange where the factory products will be traded," he said.

The exposure to a competitive market will transform the functioning of sugar factories and make them adopt professional ethics and work culture, Patil said.

The national sugar production is expected to touch 25 million metric tonnes during the 2010/11 crushing season. The country's annual consumption is 23 million tonnes. If such a situation prevails, sugar prices are likely to fall in the wholesale and retail markets and factories are likely to incur losses, said Patil.

"A marketing officer can anticipate the fluctuations and explore various markets for products to generate higher returns. If there is demand for raw sugar, the marketing executive can ask the factory to produce raw sugar instead of white sugar. It will give good returns to the factory and control the decline in prices due to excess production," the minister said.

Ethanol and power were also sought-after by-products, while the demand for molasses is increasing. All this can rake in the moolah for a factory if marketed well, he said.

Prakash Naiknavare, managing director of Maharashtra State Federation of Co-operative Sugar Factories Ltd (Sakhar Sangh) said, "The move to appoint a marketing officer at each sugar factory is good. The mills have been focusing on distribution rather than marketing for the last 60 years. Now they must venture into the open market, and hence need advice on competing in the market."

The officer will be the head of the marketing department and will have a few assistants. The committee has mentioned some changes in the staffing pattern, as the existing one, job profiles and functioning are outdated, he said.

"Sakhar Sangh will set up a marketing cell in its Pune office. It will provide information about smart marketing of products, demand in various markets for sugar, molasses, power and ethanol. The sugar factories will be advised to set up a new office with computers and Internet facility for speedy communication. All the sugar factories in the state will be connected to the cell and access necessary information," said Naiknavare.

The expenditure of the cell will be shared by Sakhar Sangh, Vasantdada Sugar Institute, Sakhar Sankul Trust and state cooperative banks. The service will be available for a nominal charge, he said.

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GREECE: ED&F Man teams up with Hellenic Sugar

The Hellenic Sugar Industry, majority-owned by ATEbank, said in a bourse filing that it will hook up with ED&F Man in a ‘strategic cooperation' as part of efforts to regain lost market share and penetrate markets in Southeast Europe, according to Greece's Kathimerini newspaper.

No further information was provided.

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INDONESIA: PTPN X to invest US$89 million in six mills

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US: Tribe teams up with local Tea Partiers against US Sugar deal

A historic effort to restore Florida's Everglades is set to go before water managers for a vote on whether to proceed with the deal, according to the Associated Press.
The South Florida Water Management District board was set to vote Thursday on whether to approve a state plan to buy 26,791 acres for about US$197.4 million from US Sugar. State officials say the land will be used to help restore the Everglades, suffering from years of dikes and diversions to make way for homes and farms.
Opponents claim the deal will only stall other key restoration projects. The Miccosukee Indians, who live in the Everglades, are asking a federal judge in Miami to stop the deal.
In an example of politics making strange bedfellows, local environmentalists and a right-wing tea party group have come out against a proposed land purchase from US Sugar Corp., according to the TC Palm newspaper in Florida.
The Rivers Coalition Defense Fund, a Treasure Coast environmentalist group, announced Wednesday it won't support the whittled-down Everglades land deal because they say it doesn't address stopping discharges of nutrient-rich fresh water from Lake Okeechobee into the brackish St. Lucie Estuary.
The Martin 912 Tea Party Committee says the plan costs too much.
In a prepared statement, the coalition's legal defense fund members called on the water district board to "drop the mini-plan and work at full speed toward a meaningful program to help the estuaries as well as the overall Everglades."
Cindy Lucas of Sewall's Point, coordinator of the Martin County tea party group, called spending any money during the current economic atmosphere "foolish. We're broke. (The district board) should be cutting costs instead of spending any money."
Lucas said the district should hang onto the money earmarked for the purchase "in case there's an emergency when we really need it, like a hurricane. ... I'm not against the environment. I like turtles and that kind of stuff, but I care more about people. People come first, and people are suffering."

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PHILIPPINES: Farmers seek help with ethanol and mechanisation

Some 100 sugarcane industry stakeholders asked the support of the Department of Agriculture during a recent dialogue in providing the necessary equipment in the mechanization of sugarcane production for both sugar and ethanol, according to the Manila Times newspaper. 
Sugarcane farmers, particularly members of sugar Mill District Development Committees (MDDCs), said that the government should help them acquire tractors, irrigation systems and trucks, citing that mechanization and ethanol production are keys to a more sustainable and globally competitive sugarcane industry.??
There are 30 MDDCs throughout the country, composed of farmers, millers and other stakeholders. ??
Other farmers also clamored for more farm-to-market roads in major sugar-producing provinces for faster and more efficient transport of cane to the mills.??
As source of fund to bankroll their equipment needs, the MDDCs proposed that the performance bond and service fees from sugar imports be turned over to the Sugar Regulatory Administration.
Currently, sugar imports are done by the National Food Authority.??
The MDDCs will submit their proposal to Agriculture Secretary Proceso Alcala for his consideration and endorsement to President Benigno Aquino 3rd for approval. ??
Meanwhile, they are optimistic on increasing the country's production of ethanol.??
Under the Biofuels Act of 2006, fuel companies are required to blend ethanol with gasoline, at 5% this year, and 10% next year. ??
Current ethanol demand is estimated at about 219 million litres versus domestic production of merely 80 million litres, derived from sugarcane and molasses.??
Next year, demand would more than double to 460 million litres of ethanol, the group noted.?
Members of the Ethanol Producers Association of the Philippines have complained that current tariff on imported ethanol is too low, at only 1%, hence pricing out locally produced ethanol.??
They propose that it should be increased to 20% to protect the local ethanol industry, and attract more investors to the country.
Also, ethanol producers are asking immediate issuance by the Department of Energy of a circular on new set of guidelines to import ethanol. ??
They said that the Energy department has conducted several consultations on the matter, but until now it has not issued the circular. ??
Importers had been using the old Energy department guidelines prior to the enactment of Biofuels Act of 2006.??Small farmers also requested more accessible and affordable credit to enable them to buy high-yielding sugarcane seeds, fertilizers, farm inputs and post-harvest equipment.
Alcala said that the Agriculture department will seriously consider the request.
He enjoined the small farmers to organize themselves into clusters or cooperatives so they could avail of needed financial assistance.
Alcala initiated the dialogue-a follow-up to an earlier meeting held in July-to address major concerns and map out industry directions to increase production of sugarcane and ethanol, achieve stable domestic supply and prices of sugar and increase farmers' incomes.??
He said that these goals are all geared toward making the country's sugar industry globally competitive, in the light of the implementation of the ASEAN (Association of Southeast Asian Nations) Free Trade Agreement.?

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BRAZIL: Cosan looking for new acquisitions

Brazilian sugar and ethanol major Cosan is looking to continue its expansion in the sector and might acquire new plants this year, according to BN Americas.
"Cosan's pipeline of projects is big, and we are always looking for the right opportunity. We want to acquire new assets, but we will do so when the price and time are right. We are looking for new plants, and we are assessing the market and opportunities ahead," company president Marcos Lutz told a webcast.

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SUDAN: India funds US$150 million for new sugar factory

Sudan has secured funding for a new 140,000 tonne sugar factory which will also produce 30 million litres of ethanol by November 2014, in the latest step to gear the African nation's sugar industry towards export, according to Reuters.
Executive Director of the Mashkour sugar company Mohamed Abdelatti Abdalla told Reuters the factory will be a model in the White Nile region to produce sugar, ethanol and electricity in the first phase, moving to add animal feed, dairy and meat in a second phase after five years.
"We've got a government-government credit line from EXIM Bank in India for about US$150 million," Abdalla said. "The total cost of the project is US$280 million and the balance of the money will be provided by the shareholders."
He said they would likely sign a contract to begin construction by the end of the month.
The shareholders in Mashkour are Sudan's largest sugar company Kenana and various governmental bodies.
"Because the sugar industry has a very long period for construction and it needs huge investment, the private sector is often afraid to invest -- they need to hit and run," he said.
"The government here will just provide guarantees to ensure the project is on track and then they will pull out when the project is more mature and the private sector will come in to buy the shares."
He said the factory would produce an initial crop of 70,000 tonnes of sugar and 15 million litres of ethanol in November 2013 before full production kicked in the following year.
Abdalla said the first phase will bring in estimated revenues of US$140 million a year and the second phase adding the animal feed, meat and dairy production would bring it to US$200 million with internal revenue return projected to be 28%.
The project is one of at least 10 planned to catapult Sudan into the world's top five sugar producers by 2020 hoping to target 10-14 million tonnes a year.

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SWAZILAND: Cane farmers get US$21.2 million EU programme

Sugarcane farmers in Swaziland stand to benefit from a project worth about EUR16.5 million (US$21.2 million), funded by the European Union, according to the Swazi Observer newspaper.

The ministry of economic planning and development with assistance from the European Union prepared and signed a Financing Agreement for the project to assist sugarcane farmers with the rehabilitation of canals and land preparation. The Aid Coordination and Management Section (ACMS) is responsible for the mobilisation and management of external assistance for the implementation of various programmes and projects within and outside government.

Alongside this achievement, the ACMS has also been able to coordinate funding from various development partners such as the Republic of China on Taiwan, various UN Agencies, etc.

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ZAMBIA: Zambia Sugar now self-sufficient in energy

Zambia Sugar, a unit of South Africa's Illovo Sugar, has started generating all of its own power needs, ending its reliance on shaky state grid supplies, according to Reuters.
Company secretary Lovemore Sievu said the firm was producing 40 megawatts (MW) of electricity from cane sugar residues, more than the 36 MW used by its factory and irrigation units.
"One of the things that was planned and has happened during this expansion has been power generation, and we are now certainly able to satisfy our requirements," Sievu said.
Zambia Sugar is still connected to state power utility Zesco but only to access 2 MW of power needed to stabilize the factory load and for initial power generation, he said.
"We now generate about 40 MW of electricity on our own. The factory uses 13 MW, and the balance of 23 MW is used for irrigation, while the rest we send to the national grid," he said.

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GUYANA: Workers on strike over post-fire dismissals

Following the dismissal of three employees and one senior employee along with the suspension or other punishment of seven others following the August 7 fire at the Skeldon Factory, factory workers began striking on Tuesday, reports Sugaronline.

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INDIA: Ethanol industry applauds price setting policy

Ethanol manufacturers and sugar mills have welcomed the cabinet's approval for 5% blending of petrol with ethanol and said they were prepared to meet the oil marketing companies' (OMCs') requirement of 1,044.5 million litres (of ethanol) between September 1 and August 31 next year, according to India's Business Standard newspaper.
Of the 1,044.5 million litres, Maharashtra would have to supply 139.2 million litres, Tamil Nadu 106.5 million litres, Uttar Pradesh 101.7 million litres, Kerala 75.4 million litres, Gujarat 69.6 million litres, Andhra Pradesh 69.4 million litres, Delhi 67.5 million litres, Karnataka 68.1 million litres, Haryana 58.2 million litres, West Bengal 56.5 million litres, Punjab 50.6 million litres, Rajasthan 45.7 million litres, Bihar 56.5 million litres, Madhya Pradesh 41.4 million litres, Orissa 24 million litres, Bihar 21.7 million litres, Jharkhand 16.5 million litres, Goa 8.17 million litres and Uttarakhand 7.84 million litres.
Vijaysinh Mohite-Patil, president of the All India Ethanol Manufactures Association, told Business Standard: "We do not see any problem in meeting the proposed ethanol requirement of OMCs. We strongly feel the decision will not only help reduce petrol prices by INR1.25 (US$0.025)-INR1.50 per litre but also save foreign currency incurred on crude (oil) imports."
He welcomed the Centre's decision whereby OMCs would bear the transportation charges from factory to depot at the same rate the OMCs transport their products. The actual transportation would be done by the sugar factories. The OMCs would also bear the cost of import and export fees, with taxes as applicable.
Prakash Naiknavare, managing director of the Federation of Cooperative Sugar Factories in Maharashtra, said the Centre's decision was timely, especially when sugar prices are going southwards (presently INR200 a quintal less than production cost).

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INDIA: Editorial applauds price-setting for ethanol

India's centre has done well to fix an ad hoc price for ethanol, so as to proceed with blending of petrol with ethanol. The price of INR27 per litre ex-factory is remunerative for the sugar industry and should induce stepped up production of the commodity, according to an editorial by staff at The Economic Times of India.
The chemical industry’s worry that it would face a shortage if the commodity is diverted to auto-fuel is misplaced, given the plentiful scope to increase cane cultivation, particularly in Bihar, agroclimatically best suited for this water-intensive, flood-resistant crop. Blending ethanol into petrol will lower dependence on imported hydrocarbons, reduce fuel costs (at present crude prices), enhance auto-fuel efficiency, make India more climate-friendly and offer cane farmers and the sugar industry added income.
A proactive ethanol policy is therefore in order. However, pricing ethanol for spiking petrol is a challenge, given the volatility of crude and, therefore, of petrol prices. If the price of petrol drops to a level lower than that of ethanol, to continue with blending would be to tax the consumer. Blending up to 10% does not call for any modification to the auto engine. So, it could be argued that, in the unlikely event of petrol prices falling below the price of ethanol, oil companies should simply stop spiking the fuel till prices rise again.
This would make sense for the oil companies in the short term, but leave cane farmers and the sugar industry in the lurch, as they cannot suddenly switch off supplies. And if they do cut back on production of ethanol, oil companies would find it hard to resume procurement once petrol prices rise. So it makes sense to give weightage to crude prices in a long-term price agreement on ethanol. The price of ethanol from non-automotive demand — potable alcohol and the chemical industry — would take up the remaining weightage.
Sugarcane acreage has remained virtually stagnant for over two decades. Ruinous subsidy has nurtured cane cultivation in the arid Deccan, while parts of the Indo-Gangetic plains eschew this crop ideally suited for the area. Use of ethanol as biofuel should also provide the occasion for rethinking the entire strategy on sugarcane.

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US: More tolerant yeast strain may mean better ethanol prod.

A genetically modified strain of yeast with a higher tolerance for alcohol could lead to more efficient and economical biofuel production, researchers say, according to UPI.
A University of Illinois professor of microbial genomics says the modified yeast could improve microbial fermentation of biomass crops, a process that yields the alcohol-based fuels ethanol and iso-butanol as it converts sugars from biomass into biofuels, a university release said Thursday.
"At a certain concentration, the biofuels that are being created become toxic to the yeast used in making them. Our goal was to find a gene or genes that reduce this toxic effect," said Yong-Su Jin, an assistant professor in the university's Department of Food Science said.
Jin worked with Saccharomyces cerevisiae, the microbe most often used in making ethanol, to identify four genes that improve tolerance to ethanol and iso-butanol.
"We expect these genes will serve as key components of a genetic toolbox for breeding yeast with high ethanol tolerance for efficient ethanol fermentation," he said. "Identification of these genes should enable us to produce transportation fuels from biomass more economically and efficiently. It's a first step in understanding the cellular reaction that currently limits the production process."

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SCOTLAND: Biofuel from whisky may be better than ethanol

Scientists in Scotland have unveiled a new biofuel made from whisky by-products that they say can power ordinary cars more efficiently than ethanol, according to Reuters.
A research team from Edinburgh's Napier University spent two years creating the biofuel butanol that can be used in gas tanks either as a stand-alone fuel or blended with petrol or diesel, they announced this week. It is derived from distillation by-products pot ale (liquid from copper stills) and draff (the spent grains).
The method is based on an old process that was developed to produce butanol and acetone by fermenting sugar. Is this the answer for critics of corn-based, energy-intensive ethanol?
"While some energy companies are growing crops specifically to generate biofuel, we are investigating excess materials such as whisky by-products to develop them," Professor Martin Tangey, director of Napier's Biofuel Research Centre told the Financial Times. "This is a more environmentally sustainable option and potentially offers new revenue on the back of one of Scotland's biggest industries."
Global exports of Scotch whisky rose to a record US$4.85 billion last year. Exports of Scotch have risen about 45% in the past 10 years.
The biofuel project cost about US$400,000 and was funded by the Scottish Enterprise Proof of Concept Programme. It is no joke, although the blogosphere is overflowing with the descriptions such as: "Whisky to go?" and "One for the road?"
The group has filed for a patent and plans to open a commercial venture to market the product.

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US: Mayor in NYC earns praise for new biodiesel legislation

METRO Terminals, a firm that is currently building one of the country’s largest biodiesel processing facilities adjacent to its biofuels and petroleum terminal in Greenpoint, New York City, praised Mayor Michael Bloomberg for signing new biodiesel oil legislation, according to a company press release.
The law requires that all grades of heating oil sold in the city contain at least 2% biodiesel starting in October 2012. METRO also supports another provision of the bill that requires a lower sulfur #4 oil.
“Introductory Number 194-A will significantly reduce pollution, promote the use of alternative fuels, create new ‘green’ jobs and vastly improve air quality throughout the city, “ said Bloomberg at the signing. “Promoting the use of cleaner burning heating fuels is one of 14 air quality initiatives from PlaNYC 2030 and I am pleased to say that the legislation before me today will do just that.”
Prior to signing the bill, Bloomberg visited METRO Terminals to announce the agreement with City Council leadership on the landmark environmental legislation. He was joined by Council Member James F. Gennaro, the bill’s sponsor and chair of the council’s Environmental Protection Committee, as well as Council Speaker Christine Quinn and representatives from the American Lung Association and the Environmental Defense Fund.
The bill was supported by a diverse coalition of heating oil and biodiesel industry groups and businesses, environmental and public health advocates and labor, many of whom were at METRO for the announcement.
“We applaud Mayor Bloomberg, as well as Councilman Gennaro and Speaker Quinn, for taking this bold step toward improving air quality in New York City, reducing our country’s dependence on fossil fuels, lowering our carbon footprint and supporting a local green economy,” said Gene V. Pullo, president of METRO Terminals. “METRO is looking forward to playing its part in locally processing biodiesel and helping New York become a greener place to live and work.”

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Cargill into some unique next-gen biofuel areas, see 10 here

Global agriculture and food gorilla Cargill made US$2.6 billion in profit in 2010. The over-a-century-old company, which is one of the largest private companies in the US, doesn’t necessarily need biofuels for its bottom line. However, Cargill is one of the larger producers of ethanol and biodiesel in the US and has corn ethanol production plants in Iowa, Nebraska and Missouri, as well as biofuel assets in Europe, Brazil, Argentina, among other places.
But Cargill has a longer-term strategy to move from the low-margin business of trading and processing commodities to the higher margin businesses of conducting research and development and creating new chemical and bio-based intellectual property. Cargill had revenues of US$107.9 billion in 2010 to get that US$2.6 billion profit. Next-gen biofuels is just one area that Cargill is looking to develop new IP, and it’s been partnering with promising startups to help deliver innovative biofuel technology.

Cargill is a dream-come-true partner for a small biofuel startup. It has a food and ag distribution chain that would make Wal-mart jealous; it sells a good chunk of the grain and food in the US, so it has feedstocks at its fingertips; and its traditional biofuel business is ripe for remaking. At the same time, Cargill gets a lot of flack for some of the environmental and food-safety mistakes it’s made, and it’s been accused of causing deforestation in South America, selling contaminated beef, and dumping chemicals from biofuel production.
Here are 10 next-gen biofuel bets that Cargill is making:

Virent Energy: Shell and Cargill announced back in June that they’d invested US$46.4 million into startup Virent Energy, a company that’s created a thermochemical process which catalyzes sugars into hydrocarbons, creating molecules similar to those produced in oil refineries.

Gevo: Isobutanol producer Gevo, which recently filed for an IPO, says it’s been working with Cargill to develop a future-generation yeast biocatalyst specifically designed to produce isobutanol from cellulosic feedstocks.

Elevance Renewable Sciences: Elevance Renewable Sciences is a biochemical venture created in 2004 to commercialize the work of Cargill and catalyst maker Materia. The company has been backed with US$40 million in funding from TPG Growth and TPG Biotechnology Partners, and focuses on using soy, canola and corn as feedstocks to produce a variety of chemicals and materials.

Argentinian Biodiesel: While not exactly “next-gen,” Cargill has some serious investments into biodiesel in Argentina made from soybeans. Earlier this week Cargill announced that would invest US$112 million into building both an 18 MW energy co-generation facility and a soybean biodiesel plant that can produce 240,000 tonnes per year. The plants will be built in Villa Gobernador Gálvez, which along with Cargill’s current assets in the region, will make up “Cargill’s largest soybean processing complex in the world.”

Brazilian Ethanol: Given Brazil’s world-leading sugar ethanol industry, it’s no surprise that Cargill has investments there. Also not necessarily next-gen, Cargill has an ethanol dehydration facility in El Salvador, and an ethanol terminal and two sugar cane mills in Santos, Brazil. Cargill has been criticized by environmentalists for adding to the deforestation in Brazil for biofuel production.

US Cellulosic Ethanol: Cargill has received DOE funding to work on cellulosic ethanol at its corn ethanol plants in the US.
Verenium Now BP: Back in 2005, when Verenium was still called Diversa, Cargill had an enzyme collaboration with the biofuel maker. Verenium’s cellulosic ethanol assets have since been sold to BP.

UK’s Greenergy Biofuels: In 2006 Cargill took a 25% stake in Greenenergy Biofuels, which turns rapeseed into oil for biodiesel production.
Cargill Ventures: Cargill’s original investment in Virent Energy was made through its VC arm Cargill Venture, but that fund has been folded into its investment firm Black River Asset Management.

Jet Fuel from Animal Waste: Last year, the US Air Force ordered bio jet fuel made from rendered animal fats from Cargill, which was converted using Honeywell’s UOP processing technology.

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AUSTRIA: Biomass-to-liquids demo plant now operating

A biomass-to-liquids demonstration plant operated by the Oxford Catalysts Group and the Portuguese incorporated holding company SGC Energia is now up and running at a biomass gasification facility in Güssing, Austria, according to RenewableEnergyFocus.com.
The biofuels demonstration plant is designed for small scale distributed production of biofuels via the Fischer-Tropsch reaction. The biofuels plant includes a Güssing gasifier, a gas conditioning unit supplied by SGCE and an FT microchannel reactor skid developed by the US-based member of the Oxford Catalysts Group, Velocys, Inc.
The biofuels FT microchannel reactor, comprised of over 900 full-length microchannels, is very efficient at controlling temperatures in highly exothermic (heat-generating) FT reaction and at maintaining isothermal conditions throughout the reactor, the Oxford Catalyst Group says.
The biofuels demonstration plant is already producing over 0.75 kg of synthetic FT liquids per litre of catalyst per hour – four to eight times greater productivity than conventional systems.

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US: Judge denies injunction in US Sugar Everglades deal

A federal judge has denied the request by the Miccosukee Indians to stop the state from purchasing agricultural land in the Everglades, according to the Associated Press.
Judge Federico Moreno ruled Monday that the tribe's emergency motion, filed earlier this month in Miami federal court, was not actually emergency since the land deal would not close until Oct. 11.
The South Florida Water Management District has agreed to purchase 26,791 acres for about US$197.4 million from US Sugar. The state says the land will be used to help restore the Everglades, but the tribe has argued that the deal would stall other key restoration projects.
The initial deal announced in 2008 was to pay US$1.75 billion to buy all of US Sugar's 180,000 acres, but it has been scaled back, in part, because of the economy.

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US: Western Sugar to pay fine for environmental damage

The Western Sugar Cooperative will pay a fine and invest at least US$350,000 in pollution control upgrades at its Nebraska Panhandle plant, according to the Associated Press.
The Environmental Protection Agency said Monday the Denver-based cooperative would pay nearly US$57,000 in fines and improve its Scottsbluff, Neb., plant.
The EPA says the plant discharged extremely high levels of fecal coliform bacteria into the North Platte River on at least 14 occasions between December 2007 and January 2010.
The high levels of bacteria suggest the wastewater was contaminated with either animal or human waste.
Western Sugar agreed to install a water condenser system that will reduce discharges of pollutants and reduce the plant's energy and water use.

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BRAZIL: 2010/11 centre-south crush seen at 579 million tonnes

Brazilian agricultural consultancy AgraFNP said Brazil's main center-south sugarcane region is likely to crush 579 million metric tonnes in 2010/11, according to Dow Jones.
"This is a slight fall from AgraFNP's first estimate of 583 million tonnes due to the recent dry weather," Bruno Bosz, an analyst at AgraFNP in Sao Paulo, told Dow Jones Newswires on Tuesday.
The crush, however, will remain 7% above last year's cane crush after rain hampered many mills from harvesting and crushing their cane in 2009.

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BRAZIL: Tech innovations moving cane ahead

New technology can be applied to every nook and cranny of Brazil's sugarcane industry over the next five to 10 years, improving yields, the end-price of products and issues of sustainability, according to speakers on Monday at the International Forum on the Future of Ethanol, reports Sugaronline.  
The Cane-variety Technology Center, known as CTC and based in Sao Paulo state, is developing systems to better map and define soil types throughout Brazil. Pinpointing soil types can help farmers boost production by 10%-20%, said Nilson Zaramella Boeta, CTC superintendent. He spoke on a technology panel Monday afternoon at the opening-day forum of the 18th annual Fenasucro & Agrocana expo in Sertaozinho, Brazil's largest industry trade fair.  
Regional cane varieties are being tailored to local climates, and insects and drought are studied by CTC to improve variety tolerance. Boeta said he thinks the first transgenic cane breed could be certified in three years, and on the market after five.  
Molecule markers are in development to tell farmers every pro and con they can expect from cane they'll plant tomorrow: whether it grows straight, how many leaves to expect, wind tolerance and more.    
On the cellulosic front, CTC is testing new ways to collect straw from the field in compact blocks, for easier transport to mills that would burn it for energy, or second-generation ethanol. A new, fully sustainable sugarcane mill is in the late stages of development by Dedini, and would produce ethanol, sugar, bioelectricity, cane-based diesel, clean water and cane-based fertilizer.  
Rapid growth of Brazil's cane industry technology will rely in part on Brazil's political relationships abroad, speakers said. Columbia has set a goal of an 85% mix of ethanol into gasoline by 2012, and Brazil could position itself as a major mill supplier to that country. And if the United States agreed to drop import tariffs against Brazilian ethanol, as many as 300 new mills would need to be built in Brazil to meet that American demand.  
"We should pressure politicians to find integrated solutions with companies (like ours)," said Tarcisio Angelo Mascarim, president of Sao Paulo's Union of Metallurgic Industries, or Simespi. Other political issues that would free up cane innovation if resolved include an improved system of emergency ethanol stock for seasonal demand, and the wildly unequal tax rates on ethanol that vary from state to state in Brazil.  
"Solving issues like these would remove the rush mentality that sometimes takes over our market," Mascarim said.  
Polypropylene is arguably the second most important chemical in the world, a US$66 billion global product used to make plastic bottles, washing machines and car bumpers, among countless other things. Today it's all made from oil, but innovations in ethanol-to-plastics are moving quickly, said Thomas Nagy, vice president of Novozymes, a global enzymes leader that's partnering in Brazil with mill-maker Dedini, plastics giant Braskem and the CTC.  

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INDIA: Ethanol producers reserving 50% of supplies for petrol

Ethanol manufacturers in Maharashtra, in a serious bid to supply ethanol for 5% blending with petrol, have decided to reserve half their alcohol stock exclusively for this, according to India's Business Standard newspaper.

This would ensure sugar mills and ethanol manufacturers do not divert the alcohol for inter-state export. The decision was taken at their meeting with Union Agriculture Minister Sharad Pawar.
Vijaysinh Mohite-Patil, president of the Ethanol Manufacturers Association, told Business Standard, "This is necessary, especially in view of past experience, wherein due to less crushing of sugarcane, ethanol prices remained stable, while prices of alcohol and molasses increased. This resulted in diversion of alcohol for exports. Keeping aside 50% for ethanol will help manufacturers meet their commitments to OMCs (oil marketing companies)."
He said ethanol manufacturers from the state had given their formal expression of interest to OMCs for the supply of 304.2 million litres for the five% blending with petrol.
Mohite-Patil said state excise minister Ganesh Naik, who was present at the meeting, had said his ministry would look into the norms on keeping a fixed alcohol stock for ethanol production.
OMCs are to procure ethanol at INR27 (US$0.57) per litre against the existing INR21.50 per litre till a committee chaired by Planning Commission member Saumitra Chaudhuri would determine the formula for deciding future pricing. Patil said 1.0445 billion litres of ethanol would have to be supplied to OMCs for the five% blending with petrol between September 1 and August 31 next year.
Pawar asked ethanol manufacturers to fully cooperate in the petrol-blending programme. He said sugar mills which do not have distillery and ethanol production units should immediately go in for such plants.
Mohite-Patil made a strong plea for uniform import and export fee on ethanol at the all-India level. "This is necessary as at present these rates are varied and it will increase ethanol price. For example, in Maharashtra, import and export fee is INR1.50 per litre. In Karnataka, import fee is INR1.50 per litre, while export fee is nil. In Gujarat, the import fee is INR5 per litre, while in Madhya Pradesh and Chhattisgarh, import fee is INR3.50 a litre," he noted.
Ethanol manufacturers also demanded the deposit fee sought by OMCs be reduced to 1% from 10% of the contract price.

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BRAZIL: Ethanol supply availability for all markets unlikely

Brazil's sugar and ethanol industries may have opportunities to feed demand of some of the world's largest countries in the next few years, but there's doubt over how rapidly Brazil producers could respond, reports Sugaronline.  
UNICA's chief representative in the US, Joel Velasco, is cautiously optimistic that the Americans' ethanol import tariff could be allowed to expire at year's end, or weakened dramatically between now and December by a Congress being bombarded more and more each day by calls to drop costly, protectionist tariffs, he said. Velasco joined speakers from China, India and the EU to wrap up the opening-day forum of the 18th annual Fenasucro & Agrocana expo in Sertaozinho, Brazil's largest cane industry trade fair.  
"We have to make clear to the American public that sugarcane ethanol improves the environment, it's a cleaner fuel (than maize ethanol), and it's actually cheaper for the US citizen," Velasco said. UNICA has ramped up its advertising and public relations campaigns in the US drastically over the last year, creating new informational Web sites for the US consumer that spell out cane ethanol's benefits more clearly than before, and aiding indirectly the publication of dozens of anti-tariff editorials in major US newspapers.  
The US Congress, now in recess, will return on September 14. Progress on the ethanol debate is doubtful between now and US elections on November 2, Velasco said. That leaves roughly eight weeks on the calendar before year's end for Congress to work up and pass a ethanol tariff renewal, or an entirely new format to tax and manage the ethanol supply.  
The ideal turnout would be for the US$0.54-per-gallon tariff on Brazilian ethanol to expire completely, Velasco said, but he questions whether Brazilian producers are truly ready to take advantage of a suddenly wide-open US market. Brazil's domestic demand is growing steadily each year, and foreign investment in new Brazilian mills hasn't fully recovered to levels before the world economic crisis.  
"Are we really prepared to have this product available as needed?" Velasco said. "Industry expansion here would have to be enormous, and immediate."  
A similar opportunity for Brazilian ethanol may be had in India, a market struggling to meet its own minimal need of a 5% ethanol mix, started this year. India is simply out of free farm land to expand sugarcane production for ethanol, and faces the unpopular choice of needing to cut other crops if it wants to grow more cane, said J. K. Tripathi, consul general of India's consulate in Sao Paulo.  
In addition, ethanol is costly to produce in India, 1.5% as costly to produce as it is in Brazil, Tripathi said. Indian producers will continue producing sugar first, while the ethanol program focuses on molasses as its main feedstock. How India will meet a 20% mix goal by the year 2020 if reliant on domestic production is hard to imagine.  

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CAMBODIA: Phnom Pen sugar displacing peasants

Cambodia's Prime Minister Hun Sen has weighed in on a controversial land row pitting more than 2,000 families in Kampong Speu province against a prominent ruling-party senator, according to the Phnom Pen Post. 
In a letter addressed to National Assembly President Heng Samrin, Hun Sen said land had been set aside to accommodate those threatened by a sugar plantation under development by one of the senator's companies.
After receiving copies of the letter Monday, residents accused the company of failing to comply with recommendations outlined by the premier.
The dispute pits 11 villages in Thpong district's Omlaing commune against the Phnom Penh Sugar Co, owned by Cambodian People's Party Senator Ly Yong Phat, which has been granted a 9,000-hectare sugar concession in the area. Tension erupted into violence in March when a mob of villagers torched a makeshift office owned by the sugar company.
Hun Sen's letter, issued in response to questions submitted by opposition parliamentarians in March, said the concession agreement with Phnom Penh Sugar was made with the understanding that no development would take place on 1,050 hectares of land "occupied by the people or forests important to the environment", leaving 8,343 hectares for development as a sugar plantation.
Of the 1,050-hectare area, it promised that 204 hectares would be set aside for landless farmers.
"The company, in cooperation with the Ministry of Agriculture and local authorities, has organised 204 hectares of land for people who lack land, and plans to build schools, medical centres, markets and a pagoda for people in this area," the letter said.
Villagers said they had not seen the letter, dated June 29, before Monday, and that none of the promises mentioned by Hun Sen had been kept.
"I think that the company received this letter before us, but they did not respect the government.... They regard the prime minister's words as having no meaning," said Phal Vannak, a village representative.
A group of 500 residents gathered outside the firm's office in Omlaing commune Monday morning in the hope of raising the letter directly with the company, but dispersed just after noon when they received no response.

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KENYA: Mumias gets US$20 million for ethanol plant

Mumias Sugar Co., Kenya's largest producer of the sweetener, secured a KES1.6 billion (US$20 million) loan for its ethanol plant to be commissioned next year, according to Bloomberg.
A group of banks led by Ecobank Transnational Inc. will provide credit to construct the plant, which is expected to produce about 22 million litres (5.8 million gallons) of ethanol annually when complete, the Nairobi-based Daily Nation said Tuesday, citing Peter Kebati, the sugar miller's chief finance officer. The project will cost KES3.6 billion and will be paid with equal amounts of debt and equity, according to the Nation.

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