A Biofuel can be loosely defined as solid, liquid, or gas fuel consisting of biomass. The biomass material can be anything from normal crops such as corn or biofuels from algae, which is currently being researched. Most biofuels are currently being developed for use in the transportation industry, with next generation biofuels looking to tackle the airline industry. This report focuses on first generation biofuels, ethanol and biodiesel. While these biofuels are by no mean the end-all solution they do provide an insight to future generations of fuels that will eventually revolutionize the energy industry. Technologies like Algae based fuel and cellulosic are aiming to buttress the already burgeoning industry and advance biofuels deeper into the varying industries that seek alternative energy.
This report’s main aim is to educate the investor in the background of the industry and the current investment climate. OTCPicks.com will continue to follow up in our blog, MarketReport, on the current news and politics affecting the industry as a whole. Stay tuned to OTCPicks as we work to provide the small cap investor with latest news so you can make the most informed investment decisions.
Investor Outlook
The rush to invest in technologies such as biofuels has been spurred on by global warming concerns, record oil prices, and increasing government support. Total capital investment in renewable energy (note this includes solar, wind, biofuels together) exceeded $100 billion in 2006. Biofuels saw one of the biggest percentages of investments due to its immediate viability in the transportation industry. Biodiesel and Ethanol based gasoline can be used immediately, whereas other energy such as wind and solar are not quite cost effective yet. Investment highlights in the renewable energy sector include:
Investment in sustainable energy is still mostly in OECD countries, with the US and EU together accounting for more than 70% in 2006. However, investment in developing countries is growing quickly: 21% of the global total in 2006 occurred in developing countries, compared with 15% in 2004;
A healthy 9% of global investment occurred in China, helped by significant asset financing activity in wind and biomass as well as the waste sectors. Investments in China came from across the spectrum, from venture capital through to public markets, "reflecting the country's increasingly prominent position in renewable energy";
India lagged a little behind China but was the largest buyer of companies abroad in 2006, most of them in the more established European markets;
Latin America took 5% of global investment, most of which financed Brazilian bio-ethanol plants;
Sub-Saharan Africa notably lagged behind other regions;
Global government and corporate research and development spending rose 25% to $16.3 billion;
Investments in small-scale projects rose 33% from an estimated $7 billion in 2005 to $9.3 billion in 2006.
Renewable energy investment is almost evenly split geographically between United States and Europe. U.S. companies receive more technology and private investment (with high profile investment interest shown in biofuels during 2006 by entrepreneurs such as Bill Gates and Richard Branson). Europe's publicly quoted companies attracted the most public stock market investment dollars: $5.7 billion compared to $3.5 billion in the U.S. The pattern reflects the earlier arrival of enthusiasm for renewable energy in Europe and its ratification of the Kyoto Protocol, unlike the US and Australia. As well, government support is particularly strong in some European countries.
What is Biodiesel
Biodiesel is a diesel-equivalent, processed fuel derived from biological sources such as vegetable oils, corn, and soybeans. This end product has the capability to be used in unmodified diesel engines, thereby eliminating a costly transition in engines. Currently numerous car and truck manufacturers are warming to the use of biodiesel fuels in the respective company’s line of vehicles. One of the chief benefits to biodiesel is that is causes less wear on engine components. Biodiesel acts as a better solvent than petroleum based diesel, which effectively cleans the engine. A drawback, however minor, to this is the fact is when starting a vehicle on biodiesel it will clog the fuel filter at first, which then would have to be replaced. Most manufacturers release lists of the cars which will run on 100% biodiesel.
Biodiesel can and is currently being distributed using today's infrastructure, and its use and production are increasing rapidly. Fuel stations are beginning to make biodiesel available to consumers, and a growing number of transport fleets use it as an additive in their fuel. Biodiesel is generally more expensive to purchase than petroleum diesel but this differential is likely to diminish due to economies of scale, the rising cost of petroleum and government tax subsidies. Oil prices are returning to the $60+ a barrel range, and war with Iran is looking more likely, along with a destabilization of the Middle East due to other regional proxy conflicts such as Lebanon.
Applications
Biodiesel can be used in pure form (B100) or may be blended with petroleum diesel at any concentration in most modern diesel engines. Biodiesel will degrade natural rubber gaskets and hoses in vehicles (mostly found in vehicles manufactured before 1992), although these tend to wear out naturally and most likely will have already been replaced with FKM, which is nonreactive to biodiesel.
Biodiesel's higher lubricity index compared to petrodiesel is an advantage and can contribute to longer fuel injector life. However, biodiesel is a better solvent than petrodiesel, and has been known to break down deposits of residue in the fuel lines of vehicles that have previously been run on petrodiesel. As a result, fuel filters and injectors may become clogged with particulates if a quick transition to pure biodiesel is made, as biodiesel “cleans” the engine in the process. It is, therefore, recommended to change the fuel filter within 600-800 miles after first switching to a biodiesel blend.
Pure, non-blended biodiesel can be poured straight into the tank of any diesel vehicle. As with normal diesel, low-temperature biodiesel is sold during winter months to prevent viscosity problems. Some older diesel engines still have natural rubber parts which will be affected by biodiesel, but in practice these rubber parts should have been replaced long ago. Biodiesel is used by millions of car owners in Europe, and is currently making headway into the U.S. trucking market.
Ethanol
Ethanol is a clean burning, high octane fuel that can be used in automobiles. Essentially ethanol is a grain alcohol made from crops such as corn or sugar cane. Anhydrous ethanol (ethanol with less than 1% water) can be blended with gasoline in varying quantities up to pure ethanol (E100), and most engines will operate well with mixtures of 10% ethanol (E10). The use of 10% ethanol gasoline is mandated in large population centers where harmful levels of auto emissions are possible or are currently occuring.
Bio-ethanol is obtained from the conversion of carbon based feedstock. Agricultural feedstocks are considered renewable because they get energy from the sun using photosynthesis, provided that all minerals required for growth (such as nitrogen and phosphorus) are returned to the land. Ethanol can be produced from a variety of feedstocks such as sugar cane, bagasse, miscanthus, sugar beet, sorghum, grain sorghum, switchgrass, barley, hemp, kenaf, potatoes, sweet potatoes, cassava, sunflower, fruit, molasses, corn, stover, grain, wheat, straw, cotton, other biomass, as well as many types of cellulose waste and harvestings, whichever has the best well-to-wheel assessment.
Current, first generation processes for the production of ethanol from corn use only a small part of the corn plant: the corn kernels are taken from the corn plant and only the starch, which represents about 50% of the dry kernel mass, is transformed into ethanol. Two types of second generation processes are under development. The first type uses enzymes to convert the plant cellulose into ethanol while the second type uses pyrolysis to convert the whole plant to either a liquid bio-oil or a syngas. Second generation processes can also be used with plants such as grasses, wood or agricultural waste material such as straw.
Numerous criticisms surround the production and use of ethanol. One of the most poignant criticisms is the willingness of agriculture-based nations to forego the growing crops for food and focusing on crops that can be made into ethanol. One third of the recent corn crop in the United States was used for the production of ethanol. Breaking it down, to fill up one SUV with a tank of ethanol based one time uses enough corn to feed one person for an entire year. Statistics like these are alarming for the general population and has led to numerous ethanol companies to begin work on cellulosic ethanol.
Cellulosic ethanol is a relatively new approach which can be produced from a diverse array of feedstocks and other crops such as switchgrass. Recent State of the Union speeches have seen President Bush urging companies to begin to focus on cellulosic forms of ethanol instead of food crops. Instead of just taking the grain from wheat and grinding that down to get starch and gluten, then taking the starch, cellulosic ethanol production involves the use of the whole crop. This new approach will work to double yields and also have a smaller carbon footprint because the amount of energy-intensive fertilizers and fungicides will remain the same, for a higher output of usable material. Many regions can be a producer of this fuel. Production of cellulosic ethanol is therefore viewed as a resource that can improve national energy security in countries without significant fossil fuel reserves.
Industry
The Biofuels industry in 2006 was valued at $20.5B, and by 2016 it is expected to nearly quadruple to $80.9B. The rate of investment within the industry is growing daily as investors realize the full potential of this industry as a possible replacement of fossil fuels. As prices fall for biodiesel and oil prices continue to rise, more investors can be expected to jump into the industry. The biofuel industry also has the added marketing aspect of being en vogue with current political trends. Fresh off a double Oscar win, the movie “The Inconvenient Truth” has put global warming and its effects into the minds of every American. This coupled with a UN report which puts the rapid pace of global warming responsibility squarely at humanity’s feet, has galvanized the populace of the world to begin seeking solutions. Biodiesel and its counterparts in the biofuel industry begin to help ease the challenges of global warming, and it helps offset the fact that most major oil producers are located in highly volatile areas such as Latin American, former Soviet-bloc countries, West Africa, and the Middle East.
Investment as a whole for the biofuel sector was up 262% in 2006 over 2005. The industry garnered over 2.4 billion dollars in new investment, with the lion’s share of the investment going to the biofuel sector, which gained $813 million in new investment. This was due in large part to spike in oil prices throughout 2006. In 2008, investment is expected to grow even further as possible geopolitical events take shape in oil rich nations such as Iran, Iraq, Saudi Arabia, and Venezuela. China’s unending demand for energy is also expected to play a factor within the oil markets as it looks for additional sources of oil to fuel its expanding economy.
President Bush’s recent State of the Union speeches have called for an increase of biofuels so that by 2017, biofuels such as biodiesel will make up 15% of all gas consumption. While this number was highly criticized as not enough, expectations are that this number will be exceeded by the next administration. In 2008 the Presidential election is likely to focus on clean energy, specifically biofuels.
A recent problem with the production of biofuels has been the reliance on fossil fuels to power the manufacturing process of biodiesel or other biofuels. This is being solved by a variety of companies who are in turn using renewable energy sources to power their manufacturing plants. One biofuel manufacturer has begun the process of using cow manure to completely power their manufacturing plants. Another company has discovered a method of using the byproduct of ethanol production to create biodiesel, effectively creating a 2 for 1 energy production plant.
Increase Corn Production for Ethanol helps create a Gulf of Mexico "Dead Zone"
American farmers use a lot of fertilizer on their crops and much of that fertilizer ends up running off the fields before it's absorbed by the plants. When that happens it ends up in streams and rivers. In the central part of the United States where a lot American agriculture happens, most of those rivers end up eventually flowing into the Mississippi River. That means that anything that goes into those rivers ends up down the Mississippi and ultimately into the Gulf of Mexico.
Unfortunately decades of intensive nitrogen-rich fertilizer use has created a zone at the mouth of the Mississippi that is starved of oxygen. This "dead zone," which now measures over 7,900 square miles, was first discovered in 1985 and it now appears to be growing much larger. The increase in corn cultivation as a result of ethanol demand may be partly to blame. The business of growing corn means that more nitrogen runs off from corn fields and into the watersheds. Previous EPA estimates had about 210 million pounds of nitrogen fertilizer going into the Gulf annually, with 2007 figures not yet available. The increase in corn growing and the size of the algae bloom visible from satellite photos points to a big increase. One solution to minimize the “dead zone” effect is to migrate more toward Cellulosic ethanol and the use of bio-fuel sources that require much less nitrogen-rich fertilizer to grow into efficient ethanol producing bio resources.
It is obvious that bio-diesel and ethanol are not the ultimate end-all, be-all answer for all of our future alternative energy needs, but they are definitely destined to play an expanding role in moving away from our future dependence exclusively on fossil fuel sources. Other alternative energy sources include hydrogen, wind power, sea-power, hydro-electric power, sun power, geo-thermal and nuclear energy. All have their own carbon and environmental footprints and ultimately economics and politics are likely to be the drivers for expanded research and development of other alternative energy sources.
BIOFUEL STOCKS TO
WATCH
Biofuel Energy Corp. (Nasdaq: BIOF)
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BioFuel Energy is a development stage company currently engaged in constructing two 115 million gallons per year ethanol plants in the Midwestern corn belt. The Company's goal is to become a leading ethanol producer in the United States by acquiring, developing, owning and operating ethanol production facilities.
Jan 17 - BioFuel Reports Construction Delay
BIOFUEL ENERGY CORP. (Nasdaq: BIOF) recently announced that start-up of its first two ethanol plants had been delayed by roughly 90 days. Based on discussions with senior management of The Industrial Company ('TIC'), the general contractor building the plants, commercial production at the plants is now expected before the end of the second quarter. Until recently, it had appeared that the numerous challenges which had arisen in engineering, procurement and skilled labor could be overcome with little change to the schedule. However, TIC has indicated that despite every effort it is now clear that the original schedule cannot be maintained without compromising on quality.
The aspects of construction which the Company is directly responsible for, including rail connections, water supply and wastewater treatment, natural gas lines, electricity and grain storage upgrades, currently remain on schedule. These projects should all be complete before the end of the first quarter. However, completion of the core production facilities and the instrumentation required to run it efficiently, which TIC is building under turnkey contract, have fallen roughly three months behind schedule. Obviously, much remains to be done before the plants are commissioned. Consequently, a variety of unforeseen challenges could cause further delay. Despite the delay, the Company does not anticipate any material change in its previously estimated total plant construction costs of $1.35 to $1.40 per gallon.
During the 4th quarter, the Company expended approximately $32 million at Wood River and Fairmont. Through December 31st, a cumulative total of $258 million had been spent on construction. Based on remaining amounts due under the TIC turnkey contracts and estimated costs to complete work classified as the Company's responsibility, it is estimated that a further $55 million to $65 million will be expended through completion. These amounts exclude corporate overhead and financing charges.
Commenting, Scott H. Pearce, the Company's President and CEO said, 'We are obviously disappointed by this delay. Unfortunately, despite an admirable degree of high level management attention at TIC, construction at both Wood River and Fairmont have experienced and continue to face challenges. These have largely been due to the still very strong industrial construction market and the resulting competition for personnel and material. Until recently, it was believed that most or all of the time slippage in particular aspects of the job could be made up. However, delays in the delivery of large vessels, pipe and steel, virtually all of which are now finally on site, and continued difficulty in obtaining and keeping skilled construction labor, has forced TIC to revise their schedule. We remain confident in the expertise and dedication that TIC and Delta-T continue to apply to the project and are impressed with the depth of their commitment to delivering top-of-the-line facilities.'
The Company remains focused on finishing construction of its initial facilities and finalizing plans for their commercial operation, while remaining open to acquisition opportunities. The Company's main facilities in Wood River, Nebraska and Fairmont, Minnesota will each have a nameplate capacity of 115 million gallons a year of fuel grade ethanol. Cargill, Incorporated, which holds an equity interest in BioFuel, will supply the corn required by the plants and market their output of ethanol and distillers grain. The Company expects to report its fourth quarter and year end results in the last week of February.
BlueFire Ethanol Fuels (OTC: BFRE)
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BlueFire Ethanol Fuels, Inc. is established to deploy the commercially ready, patented, and proven Concentrated Acid Hydrolysis Process for the profitable conversion of cellulosic ("Green Waste") waste materials to ethanol, a viable alternative to gasoline. BlueFire's use of the Process Technology positions it as the only cellulose-to-ethanol company worldwide with demonstrated production of ethanol from urban trash (post-sorted MSW), rice and wheat straws, wood waste and other agricultural residues. BlueFire’s goal is to develop and operate high-value carbohydrate-based transportation fuel production facilities worldwide. These "biorefineries" will convert widely available, inexpensive, organic materials such as agricultural residues, high-content biomass crops, wood residues, and cellulose from MSW into ethanol. BlueFire intends to build a multinational company that leads the world in producing biobased transportation fuels. Its business will encompass development activities leading to the construction and long-term operation of production facilities while maintaining technological advantage and ownership of the process technology and all its improvements. Ethanol will be produced from biorefinery facilities opportunistically constructed on or near landfills, waste collection and waste separation sites. Each facility will deploy BlueFire’s proprietary technology, which uses all cellulosic waste materials traditionally disposed of in landfills as feedstock. www.BlueFireEthanol.com.
Feb 5 - BlueFire and B&P Process Equipment Complete Decrystalyzer Testing With Better than Expected Results
BlueFire Ethanol Fuels, Inc. (OTC: BFRE) this week completed a crucial step in the construction of its first cellulosic ethanol plant in the U.S. by completing vendor testing of the key pieces of equipment to convert a variety of biomass materials -- from wood chips to municipal waste -- into the simple sugars used in BlueFire Ethanol’s production process.
The vendor testing of the decrystalyzer, hydrolyzer and filtration operations was completed at the headquarters and R&D center of B&P Process Equipment in Saginaw, Michigan and provided superior results than were achieved at the Izumi plant. This effort is part of an integrated investigation being done for the final engineering of BlueFire Ethanol’s full scale waste-to-ethanol plants.
“These key components break down the cellulosic material and reduce it to simple sugars for ethanol production as well as provide lignin to supply the plant’s energy needs on a continuous basis,” stated John E. Cuzens, BlueFire’s Chief Technology Officer and co-author of the various technology patents used by BlueFire. Mr. Cuzens further stated, “The testing campaign provides key equipment vendors with first-hand experience on BlueFire’s process, process conditions and process fluids. It allowed for input from industry experts, yielding results that are better than expected based on the previous Izumi, Japan experience.
B&P Process is a world class company focused on engineering high-precision, high-reliability machines with cradle-to-grave customer support while adding a new dimension in responsiveness. Abbey Martin, Process Engineer for B&P Process Equipment stated, “We were pleased with the ability of our equipment to perform the decrystalyzation more effectively than the data from different equipment operated in the Japanese pilot plant would have predicted. We believe that we can now design a commercial unit that will perform better and cost less than a design based solely on the pilot data. Testing actual process conditions in our scalable test equipment almost always improves the design and cost of commercial units. Furthermore, this type of testing is applicable not just to their first plant but also to future plants using similar feedstock and the same process.” B&P was also able to produce enough filtered hydrolysate to allow successive testing of additional process equipment such as the chromatographic separator.
“We are thrilled at the results of this testing and look forward to incorporating the decrystalyzer and hydrolyzer from B&P Process Equipment in our ethanol production facilities in California and elsewhere,” said Arnold Klann, President and Chief Executive Officer of BlueFire Ethanol. “With this final piece of the puzzle in place, BlueFire Ethanol’s planned California facilities are poised to serve as a catalyst for cellulosic fuel production throughout our nation.”
BlueFire Ethanol is one of six ethanol companies awarded funding from the U.S. Department of Energy for its planned ethanol production facility using cellulosic wastes diverted from landfills in Southern California. The facility will produce approximately 17 million gallons of cellulosic ethanol per year from green waste, wood waste and other cellulosic urban wastes.
In addition, BlueFire is currently in the process of obtaining all necessary permits to commence construction of a smaller facility near Lancaster, California. The Lancaster plant will produce 3.1 million gallons of cellulosic ethanol per year from the cellulosic fraction of post-sorted municipal solid waste. By locating biorefineries directly in the markets with the highest demand for ethanol, BlueFire Ethanol can utilize its technology to help cities manage landfill waste while increasing biofuels supplies.
China Clean Energy Inc (OTCBB: CCGY)
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China Clean Energy, through its wholly-owned subsidiary, Fujian Zhongde Technology Co., Ltd., is engaged in the development, manufacturing, and distribution of biodiesel fuel and specialty chemical products made from renewable resources. Since its inception, the Company has been engaged in the manufacture of high-quality specialty chemical products from renewable resources. Through its research and development efforts, the Company developed a proprietary process for refining biodiesel fuel from waste grease and certain vegetable oils. Using this proprietary process, China Clean Energy began producing biodiesel in 2005 and commenced selling biodiesel commercially starting in December 2005.
Feb 6 - China Clean Energy to Present at The Roth Capital 20th OC Conference in Dana Point, California
China Clean Energy Inc. (OTC Bulletin Board: CCGY) ('China Clean Energy', 'the Company'), a leading producer of biodiesel fuel and environment friendly specialty chemical products made from renewable resources in The People's Republic of China ('PRC'), recently announced that the Company's Chairman and Chief Executive Officer, Mr. Taiming Ou, and Director and Chief Financial Officer, Mr. Gary Zhao, are scheduled to present at The Roth Capital 20th OC Conference in Dana Point, California on Thursday, February 21st 2008 at 12:30 PM PST (3:30 PM EST).
The presentation will be available to all interested parties at the Investor Relation's section of China Clean Energy' website: http://www.chinacleanenergyinc.com. For those unable to participate during the live broadcast, a replay will be available shortly after the presentation on the China Clean Energy website for 30 days.
Over 300 leading public companies will be presenting at The Roth Capital Partners 20th OC Conference at the Ritz-Carlton, Laguna Niguel in Dana Point, California. Analysts and portfolio managers who wish to attend the presentation should contact Isabel Mattson-Pain at
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to request additional information.
Green Plains Renewable Energy (Nasdaq: GPRE)
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Ethanol, which Green Plains produces from corn, is a high-octane fuel that is blended with gasoline to provide superior engine performance as well as help to reduce harmful tailpipe and greenhouse gas emissions that contribute to global warming. Ethanol has also become a prime source of value-added income for American farmers.
Green Plains has an operating 50 million gallon ethanol plant in Shenandoah, Iowa and is currently building a second 50 million gallon ethanol facility in Superior, Iowa. The Superior plant is anticipated to begin production in spring 2008. Green Plains has entered into an agreement and plan of merger with Great Lakes Cooperative, with a closing that is subject to various conditions and contingencies.
Feb 4 - Affirmative Merger Vote Supports Vertical Integration Strategy
Recently, Green Plains Renewable Energy Inc. (NASDAQ: GPRE) (AMEX: GPRE) received an affirmative vote from the voting members of the Great Lakes Cooperative on the previously-announced merger proposal. The merger is expected to close sometime in March, subject to certain additional conditions and contingencies. Upon completion, Great Lakes will become a wholly-owned subsidiary of Green Plains.
Great Lakes is a full service agricultural cooperative with seven sites and facilities located in close proximity to Green Plains' ethanol plant in Superior, Iowa, which is scheduled to begin operations this spring.
"With this merger, Green Plains will integrate Great Lakes' agronomy, grain, seed, feed, chemical and petroleum business units into our overall operations," said Wayne Hoovestol, Chief Executive Officer. "This is a significant development in our strategy to become the market's vertically-integrated, low cost producer of ethanol."
"Great Lakes' operations will provide Green Plains with a new stream of revenue and a steady supply of feedstock," continued Hoovestol. "Green Plains looks forward to working with Great Lakes' producers. Strong producer relationships are critical in commodity procurement and risk management. Green Plains hopes to strengthen producer relationships and develop innovative strategies for creating opportunity in the ethanol value chain."
Pursuant to the merger proposal, Great Lakes members will receive $12.5 million in cash and 551,065 shares of Green Plains' common stock. Great Lakes' investments in regional cooperatives are excluded from the merger. Great Lakes' business units and assets will be incorporated into Green Plains' vertically-integrated operations.
"The Great Lakes Board of Directors enthusiastically endorsed the merger proposal," said Kevin Adolf, Great Lakes' President. "The merger is in the best interests of coop members. Green Plains will get access to a network of thousands of high-yield corn producers. In the long-term, we will all be better off because of this merger."
International Fuel Technology (OTCBB: IFUE)
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International Fuel Technology is a fuel performance enhancement company focused on providing its technology to large, industrial consumers of diesel fuel and bio-diesel fuel blends in the rail, stationary power generation and road transport industries.
Feb 5 - IFT Completes Research and Development Efforts for DiesoLIFT(TM) 10 in Rail Engine Applications
International Fuel Technology, Inc. (IFT) (OTCBB: IFUE) today announced that it had completed research and development efforts on DiesoLIFT10 in rail engine applications. DiesoLIFT10 is IFT’s proprietary fuel additive formulation for use with diesel fuel and bio-diesel fuel blends.
Extensive testing, in association with government authorities and rail operators, at independent test facilities worldwide have demonstrated that use of DiesoLIFT10 significantly increased fuel economy and reduced CO2 and particulate matter emissions. For example, IFT completed three phases of rail engine testing at MI Technology Group, a U.K. based independent test laboratory. The tests were organized by the rail governing authorities in the U.K. and were supervised by Interfleet, a world-renowned rail consultant. Test results demonstrated that use of DiesoLIFT10 increased fuel economy by 6% (at 90% load factor) in a Cummins locomotive with 35,000 miles of operational use. Test results also demonstrated that use of DiesoLIFTTM 10 increased the power performance of the engine and significantly reduced particulate emissions.
The benefits of DiesoLIFT10 have been demonstrated in use with numerous rail engines (Cummins, Perkins and General Motors) and diesel fuel types (No.2 diesel, European EN590 diesel and ultra low sulfur diesel and bio-diesel B-20).
As a result of the successful research and development efforts with DiesoLIFT10, IFT has commitments from numerous rail operators to commence field validation trials in the first half of 2008. In addition, the successful research and development efforts have convinced a number of prominent fuel additive distribution companies to partner with IFT to market and distribute DiesoLIFTTM 10 to the rail and other industries.
“Three years ago we set out to unequivocally demonstrate to the rail industry that we had a fuel additive technology that could provide substantial cost savings through fuel economy improvement, lower maintenance costs and reduced greenhouse gas and particulate emissions,” said Sergio Trindade, IFT’s Chief of Science and Technology. “The process has been deliberate but we have now succeeded in demonstrating our claims. We are highly confident that upcoming field validation trials will lead to the introduction of DiesoLIFT10 into the railroad fuel stream.”
“The rail industry consumes a significant amount of diesel fuel annually,” said Gary Kirk, IFT’s Director of Sales and Marketing. “The U.S. rail industry alone consumes approximately 6 billion gallons annually. At a 5% improvement in fuel economy, use of DiesoLIFT10 could reduce the annual consumption of diesel fuel by U.S. rail operators by an aggregate of 300 million gallons.”
“We expect IFT to realize revenues from the sale of DiesoLIFT10 to the rail industry in 2008,” said Jonathan Burst, IFT’s CEO. “The rail application has been our primary focus since inception, so completing extensive R&D work and advancing to the field validation trial stage is a significant milestone for IFT. The value proposition we offer to the rail industry is irrefutable and will also contribute to improving our planet for generations to come.”
Pure Biofuels Corp (OTCBB: PBOF)
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Pure Biofuels is committed to becoming a leader in Latin America's rapidly emerging biofuels industry. Pure Biofuels' flagship project, the Callao Port biodiesel refinery near Lima, Peru, is scheduled to complete construction of its plant in the first quarter of 2008 and to commence full production capabilities by mid-2008. The Callao Port refinery will process biodiesel from crude palm oil feedstock. Pure Biofuels has secured memorandums of understanding with local fuel distributors for all of Callao Port's annual biodiesel production. The Company believes Peru's economic growth and expansion, illustrated by recent exponential growth in foreign direct investment, and GDP growth over the last five years, adds to Peru's promise as an attractive geography for alternative fuel production and development. In addition, rating agency DBRS has recently assigned investment-grade credit ratings to Peru's long-term foreign and local currency debt. For more information about Pure Biofuels, please visit: http://www.purebiofuels.com/home.html
Jan 15 - Pure Biofuels Signs Agreement to Acquire Additional 14,000 Hectares for Palm Oil Cultivation
Pure Biofuels (OTCBB: PBOF) today announced the signing of an agreement to acquire 14,000 hectares of land near the city of Pucallpa in central Peru for the cultivation of African Palm to produce palm oil to provide feedstock for its biodiesel production facilities on the coast near Lima. This is in addition to the 60,000 hectares of land in the same region secured by Pure and announced in March 2007.
The new 14,000 hectares will be acquired under a share purchase agreement. The terms of the agreement include the acquisition of 100% of the shares of Inmobiliaria Alpha SAC, a company that owns 15,000 hectares of land and include the transfer back to the seller of 1,000 hectares after the acquisition is completed. Pure expects the acquisition to close by the end of March.
The 14,000 hectares to be acquired by Pure is currently empty and deforested and has already undergone improvements including roads, infrastructure and electricity. Closing of the land acquisition is subject to customary closing conditions.
“This is another important step for our company, and we’re very pleased to be acquiring land that is so well prepared for immediate cultivation,” stated Pure Biofuels’ Founder and CEO, Luis Goyzueta. “The recommendations resulting from our recently completed feasibility studies confirm that African Palm is the lowest cost feedstock source for our production of biodiesel, and we plan to move ahead swiftly with the preparation and planting necessary to see this plantation producing oil as soon as possible. We expect to be ordering seeds and setting up nurseries within the next 90 days and hope to have our first yields within 24-36 months.”
The company previously reported that the African Palm will find a healthy environment in the central Peruvian forests. It is a hearty plant that thrives in the tropical environment. The company’s strategy to self-supply feedstock is a primary differentiator – with many competitors planning to purchase feedstock oil from plantation owners or from the global commodity market.
Pure has plans for an interim supply of the necessary feedstock oils to begin production as soon as the company’s Interpacific Oil expansion and the construction of the company’s primary Callao Port facility are complete. Those facilities’ combined output is more than 62 million gallons of biodiesel per year. The company expects the new 14,000 hectare plantation will provide up to 40% of the necessary feedstock to reach full capacity for those facilities, and the company has additional plans for more land acquisitions to satisfy its remaining – and future growth – needs.
US BioEnergy Corp (Nasdaq: USBE)
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US BioEnergy Corporation (NASDAQ: USBE), based in St. Paul, Minn., is a producer and marketer of ethanol and distillers grains. Founded in 2004, the company currently owns and operates four ethanol plants in Albert City, Iowa, Ord and Platte Valley, Neb., and Woodbury, Mich. Four additional ethanol plants are currently under construction in Marion, S.D., Hankinson, N.D., Dyersville, Iowa, and Janesville, Minn. Upon completion of these initiatives, the company will own and operate eight plants with combined expected ethanol production capacity of 750 million gallons.
Feb 6 - VeraSun Energy to Relocate Corporate Offices to Sioux Falls, South Dakota
VeraSun Energy Corp. (NYSE: VSE) and US BioEnergy Corp. (Nasdaq: USBE) recently announced that the corporate offices of the combined company will relocate to Sioux Falls, S.D. The announcement came following a thorough analysis by the senior leadership of both companies.
'We recognize the vital role that the Brookings, South Dakota community has provided in supporting the early stage development of these two leading biofuels companies. As we grow and plan for future success, we've evaluated the needs and various scenarios concerning corporate office location,' said Don Endres, VeraSun Chairman and CEO. 'The primary objectives in determining a final location included the ability to retain and recruit an expanded workforce, the overall cost of doing business, proximity to our growing fleet of ethanol production facilities, access to travel and quality of life for our employees. When we evaluated all of the criteria, Sioux Falls emerged as the best location to meet our business objectives.'
Currently VeraSun's corporate offices are located in Brookings, S.D., while US BioEnergy has its corporate headquarters in St. Paul, Minn. The two companies announced plans to merge on Nov. 29, 2007, giving the combined company a potential production capacity of more than 1.6 billion gallons by the end of 2008.
'Selection of the corporate headquarters location constitutes a milestone in the progress of closing the merger,' said Endres. 'This allows us to begin integrating the two companies and moves us closer to realizing the synergies and economies of scale we anticipate.'
The merger is expected to close, as previously announced, by the end of the first quarter of 2008, with the completion of the transition to the new headquarters targeted for the end of the summer.
'We will continue to make the greatest impact by revitalizing the rural communities of the heartland through our large-scale ethanol production facilities,' said Gordon Ommen, US BioEnergy President and CEO and future VeraSun Chairman. 'Our biorefineries in Minnesota and South Dakota will employ hundreds of people and contribute significantly to agricultural markets and local and regional businesses and industries.'
Environmental Power Corp. (Nasdaq: EPG)
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Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from animal wastes for its use to generate energy. For more information visit the Company's web site at http://www.environmentalpower.com.
Jan 22 - Environmental Power Announces Achievement of Full Capacity & Commercial Operation at Huckabay Ridge Facility
Environmental Power Corporation (Nasdaq: EPG), a leader in the renewable bioenergy industry, recently announced that its Huckabay Ridge facility in Stephenville, Texas, has achieved full-capacity production levels of pipeline-quality renewable natural gas (RNG(R)) and has now moved into full-scale commercial operation. The facility generates methane-rich biogas from manure and other agricultural waste, conditions the biogas to natural gas standards and distributes RNG(R) via a commercial pipeline. Huckabay Ridge is expected to produce approximately 635,000 MMBtus of RNG(R) per year -- the equivalent of over 4.6 million gallons of heating oil.
'Reaching targeted output-levels and commercial operation is an important milestone for the project and the Company,' said Rich Kessel, President and Chief Executive Officer of Environmental Power. 'Not only have we validated our technology, we have developed many innovative best practices and have gained valuable operating experience. We are applying this enhanced operating knowledge to the other large-scale biogas and RNG(R) projects we have under development. We are highly confident that this knowledge and experience will dramatically reduce the lead-time between completion of construction and reaching commercial-operation levels on future projects.'
The Company has announced RNG(R) and biogas projects in permitting or late stage development with anticipated annual production of approximately 4.9 million MMBtus, in addition to Huckabay production.
Pacific Ethanol (Nasdaq: PEIX)
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Pacific Ethanol is the largest West Coast-based marketer and producer of ethanol. Pacific Ethanol has ethanol plants in Madera, California, and in Boardman, Oregon, and has two additional plants under construction in Burley, Idaho, and in Stockton, California. Pacific Ethanol also owns a 42% interest in Front Range Energy, LLC which owns an ethanol plant in Windsor, Colorado. Central to Pacific Ethanol's growth strategy is its destination business model, whereby each respective ethanol plant achieves lower process and transportation costs by servicing local markets for both fuel and feed. Pacific Ethanol's goal is to achieve 220 million gallons per year of ethanol production capacity in 2008 and to increase total production capacity to 420 million gallons per year in 2010. In addition, Pacific Ethanol is working to identify and develop other renewable fuel technologies, such as cellulose- based ethanol production and bio-diesel.
Jan 29 - Pacific Ethanol Among Four Companies Selected by US Department of Energy to Research Commercial Cellulose Technology
Pacific Ethanol, Inc. (Nasdaq: PEIX), the largest West Coast-based marketer and producer of ethanol, today announced the U.S. Department of Energy has included Pacific Ethanol in a matching award totaling $24.32 million to build the first cellulosic ethanol demonstration plant in the Northwest United States. The plant will employ a technology to produce ethanol from wheat straw, wood chips and corn stover and will be co-located at the site of Pacific Ethanol's existing corn-based ethanol facility in Boardman, Oregon. Pacific Ethanol's partners in winning this competitive process are, BioGasol ApS and the Joint BioEnergy Institute (Lawrence Berkley National Laboratory and Sandia National Laboratory). BioGasol ApS has developed the proprietary technology and the Joint BioEnergy Institute will be providing support and specific research and development on enzyme technology.
The pilot plant, which will be designed to produce 2.7 million gallons of ethanol annually, will demonstrate the potential of a technology developed by BioGasol ApS to produce ethanol from a diverse mixture of biomass that is readily available in the area of the Boardman plant. Current plans call for the plant's completion in 4th quarter 2009 and matching criteria will include in-kind contributions that will be finalized with further negotiations with the Department of Energy.
'We are pleased to be working with the DOE, BioGasol and the Joint Bioenergy Institute on commercially demonstrating cellulose to ethanol production technology,' said Neil Koehler, CEO of Pacific Ethanol. 'Pacific Ethanol is committed to being a leader in developing new methods to convert a variety of biomass resources into ethanol. Success in this industry-wide effort to commercialize cellulose to ethanol technology will allow our country to replace a significant proportion of imported oil with US produced renewable resources and reduce CO2 emissions by millions of tons annually, delivering long term value to the economy, the environment and our shareholders.'
'Our strategy of destination plants has always been to exploit the vast amounts of biomass that are available for use in the regions where we operate. Our objective is to utilize a successful cellulosic demonstration plant to scale up the technology throughout our network of production facilities,' Koehler added.
Birgitte Ahring, CEO of BioGasol added, 'The sustainability and flexibility of our process technology could set the standard for second generation biofuels production. The cost effectiveness of our proprietary process concept has already been validated in pilot plant scale and we believe that the future production cost can be competitive with other transportation fuels when the technologies are fully matured. The DOE grant gives us an excellent opportunity to bring our process concept one step closer to commercial viability and we look forward to working with Pacific Ethanol and DOE's Joint BioEnergy Institute to realize the full potential of this project.'
Nuclear Solutions Inc (OTCBB: NSOL)
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Nuclear Solutions, Inc. (OTC Bulletin Board: NSOL) and its subsidiaries report operations and financial results on a consolidated basis within Nuclear Solutions, Inc.'s public filings. Visit http://www.nuclearsolutions.com for additional information. For further information on Nuclear Solutions, Inc. please contact an authorized representative of the company. The only authorized representatives of the company are: Patrick Herda, Ken Faith and Fred Frisco and the only authorized investor relations telephone number is (202) 580-8330. The company is not responsible for information transmitted by an unauthorized third party or through calls made to or from an unauthorized telephone number. Please feel free to contact the CEO, Patrick Herda directly with any questions at (202) 470-2664.
Jan 30 - Fuel Frontiers, Inc. Launches Coal-To-Liquid Engineering Program With Shaw, Stone, and Webster
Today, Fuel Frontiers, Inc. (FFI), a wholly owned subsidiary of Nuclear Solutions, Inc. (OTC Bulletin Board
: NSOL), announced that it has transferred funds to Shaw Stone & Webster (Shaw), a division of The Shaw Group Inc., to launch the engineering program that will provide a technical basis for a 400 Tonne per day Coal-To-Liquid (CTL) Ultra-Clean Diesel fuel production facility in Muhlenberg County, Kentucky.
'I believe that The Shaw Group can supply everything we need to support our efforts to develop CTL clean fuel projects. With the launch of this engineering program, we have established our commitment to work with Shaw in Muhlenberg County, Kentucky,' said Patrick Herda, President and CEO of FFI parent company Nuclear Solutions, Inc.
FFI is planning to employ a commercially proven plasma gasification system designed by Westinghouse Plasma Corporation (WPC) coupled to commercially available Fischer-Tropsch (FT) gas-to-liquids (GTL) diesel fuel production systems, to be designed and constructed by Shaw Stone & Webster (SS&W) for its coal to ultra-clean diesel production facilities.
The Shaw Group Inc. is a leading global provider of technology, engineering, procurement, construction, manufacturing, consulting, and facilities management services for government and private sector clients in the energy, chemical, environmental, infrastructure. A Fortune 500 company with nearly $5 billion in annual revenues, Shaw is headquartered in Baton Rouge, Louisiana and employs approximately 21,000 people (of which some 800 are based in the UK) at its offices and operations in North America, South America, Europe, the Middle East and the Asia-Pacific region.
Shaw Group companies in the UK comprise Stone & Webster Limited, a full-service engineering company established in 1938 and active in both the power and process sectors; Stone & Webster Consultants, providing technical consultancy and financial services to energy clients worldwide. For further information, please visit Shaw's website at http://www.shawgrp.com.
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