Biodiesel and Ethanol Investing

Olsen family’s ethanol business face more woes

Mike — Thu, 22 Oct 2009 13:00:10 +0000

Appleton Post-Crescent reports that the legal issues surrounding the Olsen family’s ethanol and grain businesses in Wisconsin continue to pile up. The receiver appointed in January to manage the assets of Olsen’s Mill Inc.’s while a Green Lake County Circuit Court judge determined the best way to repay the company’s creditors has filed a civil suit seeking overdue payment for grain supplied to the Olsen family’s Utica Energy LLC. Receiver Michael Polsky filed a civil suit in Winnebago County Circuit Court seeking almost $3 million from Utica Energy for yellow corn it provided the ethanol producer earlier this year.

Plymouth Energy working to raise $10M

Mike — Thu, 22 Oct 2009 11:00:57 +0000

Sioux City Journal reports that Plymouth Energy, a local member-owned ethanol company with its plant in Merrill, Iowa, is asking its members to invest another $10 million. CFO Steve Meyer said they will use the money to: automate processes to make more ethanol per bushel of corn; to lock in advantageous margins in the commodities market; and possibly for a centrifuge to extract oil from the corn syrup to add another product to returns on investment.

Evolution Fuels dividents Southwest Resources shares

Mike — Thu, 22 Oct 2009 03:00:51 +0000

Reuters reports that Evolution Fuels, Inc. announced that it will dividend 1.5 million shares of the company’s ownership of common stock of Southwest Resources Inc. Evolution recently executed a settlement agreement with Southwest Resources, which owed a debt to Evolution related to a transaction during Q3 2006. The settlement involved the exchange of shares of common stock in Southwest Resources for forgiveness of the debt. Evolution decided to provide its shareholders with any potential upside in the equity ownership of its 1.5 million shares of Southwest Resources common stock through a dividend of the shares to its shareholders.

Energy firm to offer 8m shares of stock

Mike — Thu, 22 Oct 2009 01:00:05 +0000

Trading Markets reports that energy firm China Integrated Energy Inc. intends to offer 8m shares of the company’s common stock, subject to market and other conditions. Underwriters will also be granted an option to acquire up to 1,200,000 additional shares of the company’s common stock to cover over-allotments, if any. Net proceeds are expected to be used by the company for the expansion of its biodiesel production capacity.

Bulgaria mandates higher biofuels mix

Mike — Wed, 21 Oct 2009 23:00:46 +0000

Biofuels International reports that Bulgaria is boosting its biofuels mix by obliging petrol stations to add at least 2% biodiesel in the diesel fuel after 1 March 2010. All petrol stations will have a two-month period in which they must apply the new rules. This measure has been included in the amendments of the Law on Renewable and Alternative Energy Sources and Biofuels, which the Council of Ministers passed on October 14. After September 2010, the amount of biodiesel in the regular diesel must be at least 3%, and after 1 March 2011 at least 4%.

Auburn Biodiesel may get federal funding

Mike — Wed, 21 Oct 2009 21:00:50 +0000

Auburn Pub reports that $160 million worth of federal economic recovery funds may be in the mix for Auburn Biodiesel Corp. in Montezuma together with the Port of Oswego in New York. U.S. Senator Kirsten Gillibrand recently pushed for funds to add new biodiesel capabilities at both locations. The Auburn BioDiesel Corp. first presented its plan to produce biodiesel fuel from soybeans to the Cayuga County Industrial Development Agency in April 2008. While the corporation continues to look for private funding, stimulus money would jump start the project.

Manitoba biodiesel initiative stalls

Mike — Wed, 21 Oct 2009 19:00:27 +0000

The Red River Valley Echo reports that the Sunbelt Biofuels Initiative, a biodiesel project in Manitoba, Canada, has stalled. Sunbelt Biofuels chair John Falk said they have yet to find that one person or couple of people willing to invest at a high level. Beginning November 1, Manitoba will set a mandate that requires, on average, 2% biodiesel in all diesel fuel sold in a year. Manitoba will also consider a higher mandate once there is a Canadian fuel standard.

Financial crunch affecting African biofuel exports

Mike — Wed, 21 Oct 2009 17:00:46 +0000

Engineering News reports that the financial crisis is hindering African biofuels exports, said Hart Energy Consulting Global Biofuels Center (GBC) biofuels director Maelle Soares Pinto. GBC sees a overcapacity in the European Union (EU), the most likely market for biofuels exports from Africa. Pinto also said several African countries benefit from special tariffs in the case of ethanol exports to the EU. Hart’s GBC executive director Tammy Klein adds that, as yet, there is still not a demand driver in the African marketplace.

Super Beetle runs on biodiesel

Mike — Wed, 21 Oct 2009 15:00:46 +0000

Wired reports that University of Kansas students have built a 1974 Volkswagen Super Beetle–series hybrid that burns biodiesel and gets about 50 mpg. The vehicle had been rusting away on a used car lot until it was donated to a mechanical engineering class led by professor Chris Depcik. He turned it over to a group of environmentally-conscious engineering students who call themselves the EcoHawks. Over the course of a year, they installed a series of 10 lead-acid batteries and a biodiesel generator.

Cosan CEO steps down

Mike — Wed, 21 Oct 2009 13:00:06 +0000

Reuters reports that the chief executive of Cosan, one of Brazil’s largest sugar and ethanol groups, unexpectedly resigned. Rubens Ometto Silveira Mello will remain as chairman of the board and will “dedicate himself exclusively to the company’s strategic management,” said Cosan. Current chief commercial and logistics officer Marcos Marinho Lutz was appointed as the new executive officer.

New Milford mill planned for ethanol

Mike — Wed, 21 Oct 2009 11:00:47 +0000

The News-Times reports that Mayor Patricia Murphy of New Milford, Connecticut, informed town council members that she has not yet received a formal proposal from the company that said it wants to buy the former Century Brass mill for a cellulosic ethanol plant. After the council agreed to apply for a $200,000 federal grant to continue environmental cleanup at the mill, council member Mary Jane Lundgren asked about the sale, which she wants to be discussed at a meeting. The mill needs a new roof and a replacement or major refurbishing of the concrete floor, which is contaminated with pollutants. For tours in the building, people must wear helmets and boots.

EPA awards grant to SDSU students

Mike — Wed, 21 Oct 2009 03:00:11 +0000

EPA reports that the U.S. Environmental Protection Agency (EPA) has awarded South Dakota State University students with a $10,000 grant to help develop a recyclable catalyst for biodiesel production using waste grease, recycled oil and potentially algae. The grant is one of 43 awarded nationwide under the EPA’s People, Prosperity and the Planet program. The EPA said it has awarded grants to teams of college and university students who will design creative technologies to sustainability challenges.

Simply Green Biofuels expands in New Hampshire

Mike — Wed, 21 Oct 2009 01:00:18 +0000

Seacoast Online reports that Simply Green Biofuels will expand by opening a distribution center adjacent the Clean Power Development facility to be built in Berlin, New Hampshire. Clean Power will assist Simply Green to co-locate and will run parts of its plant operation on Simply Green’s biofuel products. Startup burners within the facility, on-site equipment and backup building heat are all applications for Simply Green’s Bioheat and biodiesel.

Canada’s biofuel production to rise

Mike — Tue, 20 Oct 2009 23:00:03 +0000

Biofuels International reports that Canadian biofuel production is expected to rise 76% in two years as government subsidies for production plants and renewable-fuel requirements take effect. Total biofuel production will reach 2.5 billion liters annually by 2011, including 2 billion liters of ethanol and 500 million liters of biodiesel, said Gordon Quaiattini, president of the Canadian Renewable Fuels Association. Canada will require 5% renewable-fuel content in petroleum by 2010 and 2% renewable content in diesel and heating oil by 2011. Canada currently produces 1.3 billion liters of ethanol annually and 120 million liters of biodiesel.

Miller resigns as Aventine CEO

Mike — Tue, 20 Oct 2009 21:00:04 +0000

Reuters reports that ethanol producer Aventine Renewable Energy Holdings announced that its president and CEO Ron Miller has resigned to “pursue new opportunities.” Miller’s resignation is effective on October 23. Aventine’s Board has appointed George Henning, Jr. as interim CEO and president of the Company. Henning has served as Aventine’s interim CFO since March 2009 and will retain that position.

Negros Occidental to get ethanol plant

Mike — Tue, 20 Oct 2009 19:00:41 +0000

The Visayan Daily Star reports that an ethanol plant will soon be built in Negros Occidental, a Philippine province, under a joint venture agreement between Biofuels International Phils. Inc. and a group of investors, BIPI president Roberto Montelibano said. The plant that will be bigger than the San Carlos Bionergy Inc. in San Carlos City, and will be built within a 45-hectare property to be developed into an industrial zone. Composed of a group of sugar farmers, businessmen and professionals, BIPI is now in the final stages of concluding the agreement. The plant will have a capacity of 200,000 liters of ethanol per day and with a cogen plant capable of producing 19 megawatts.

KL Energy, Fair Energy agrees on cellulosic ethanol

Mike — Tue, 20 Oct 2009 17:00:46 +0000

Hydrocarbon Online reports that KL Energy Corp. and Fair Energy have agreed to proceed with an off-take agreement for their second generation cellulosic ethanol both in the U.S. and Europe. KL Energy operates a commercial-size demonstration cellulosic ethanol plant in Upton, Wyoming. KL Energy’s cellulosic ethanol uses non-feedstock byproducts like wood-waste from the timber industry in their production process.

First Poland bio-ethanol plant to begin

Mike — Tue, 20 Oct 2009 15:00:45 +0000

Polish Market Online reports that work on the first bio-ethanol rectification plant in Poland is expected to start next year. The biofuel is to be produced from food processing industrial waste. The investor is the Finnish concern St1, which operates a chain of self-service gas stations in Poland. The biofuel will be produced from bakery waste, potato waste and waste from beverage production.

AgMRC biodiesel model shows profitability

Mike — Tue, 20 Oct 2009 13:00:00 +0000

Biodiesel Magazine reports that the model developed by the Agricultural Marketing Resource Center (AgMRC) for a hypothetical, single-feedstock biodiesel refinery using soybean oil finally showed profitability last September. Biodiesel revenue for the month showed $3.02 per gallon, the soybean oil cost was $2.35 per gallon, natural gas 3 cents per gallon and methanol cost 9 cents per gallon. AgMRC’s model plant showed a total break-even cost per gallon, including variable and fixed costs of $2.96 per gallon. The net return over variable costs was 32 cents per gallon, and the net return over all costs for September was 6 cents per gallon.

Sweden uses rabbits for biofuel

Mike — Tue, 20 Oct 2009 11:00:37 +0000

Geek.com reports that Sweden is using rabbits for heating their homes with biofuel. According to Der Spiegel, stray rabbits are being shot by the thousands in Stockholm. They are then frozen and shipped to a heating plant to be incinerated by Konvex, a subsidiary of Daka Biodiesel, which makes automotive and heating fuels from vegetable and animal oils and fats. Stockholm is also shipping dead cats, cows, deer and horses to the Kovex plant for processing.