News > September

India to Lift Curbs on Ethanol Production, Double Ethanol Requirement
India’s government plans to double the requirement for ethanol-blend gasoline and lift a ban on direct production of the biofuel from sugarcane, measures intended to reduce the country's sugar stocks and address rising fuel demand. Agriculture Minister, Sharad Pawar, announced that the government will require oil companies to double the ethanol content in gasoline to 10 percent by October 2008. India’s government will also allow farmers and sugar mills to directly produce ethanol from sugarcane juice. Currently, Indian laws allow ethanol to be produced only from the molasses left after the juice is extracted for making sugar.
Source: India plans to double ethanol blend in gasoline, lift curbs on biofuel, The Canadian Press

Mexican President Vetoes Biofuel Law
Mexican president, Felipe Calderón, has vetoed a bio-energy law to establish biofuel production in the country, saying that it focuses too much on maize and sugarcane production. According to Calderón, the law focuses too much on producing ethanol biofuel from food crops, without considering other new technologies that could allow for seaweed, bacteria, enzyme, and cellulose biofuels. The law, initially approved by legislators in April 2007, addresses the 2.6 million liters of ethanol that the government plans to add daily to fuels produced by Mexico Oil, the state-owned oil company. Source: Mexican President vetoes biofuel law, Checkbiotech

Chrysler Announces New Electric/Hybrid Vehicle Division 
Chrysler has announced a new engineering division, called ENVI, that will focus on designing and building electric and hybrid vehicles, allowing the company to develop a new generation of environmentally-responsible Chrysler, Jeep and Dodge vehicles. Chrysler plans to roll out its first two hybrid vehicles, a Dodge Durango and a Chrysler Aspen, somewhere in 2009 — those models will use a transmission developed with GM and BMW. Chrysler began developing hybrid technology about a decade ago. It produced a diesel-electric version of the Dodge Ram pickup that was tested but never offered for sale to consumers. Chrysler also had an active fuel cell program and built several test vehicles, but stopped work in that arena in 2002.
Source: Chrysler announces a new electric and hybrid vehicle division called ENVI, Auto123.com

India to Test Hithane — Hydrogen-CNG Fuel Mix
India has launched a two-year project that will enable light commercial vehicles and cars to run on a blend of hydrogen and compressed natural gas (CNG). The project — a collaboration between the Ministry of New & Renewable Energy, the Society of Indian Automobile Manufacturers and Indian Oil Corp. —will develop an optimal mix of hydrogen and CNG (called hithane) by experimenting with up to 30 percent hydrogen mixed into CNG. At the end of the project, detailed recommendations will be made, enabling existing vehicle fleets to be suitably modified for hithane. Hithane not only reduces dependence on foreign oil but also cuts down on nitrous oxide emissions and helps achieve better fuel efficiency.
Source: Centre to test hithane vehicles, DNA India

US-Based Jatropha Biodiesel Plant Proposed to Department of Energy
A proposal for a $42 million, four-year jatropha biodiesel and synthetic diesel project has been presented to the US Department of Energy (DOE) by Denver-based Blue Sun Biodiesel. The proposal is in response to a $200 million DOE request for proposals to demonstrate the commercial viability of an integrated biofuels refinery utilizing non-food based cellulosic feedstocks. If funded, the project will utilize domestically produced jatropha feedstock grown in southern Texas. The fully integrated development will consist of the jatropha farm and a state-of-the-art bio-refinery with a thermo-chemical processing system. The refinery will produce 100 percent renewable biodiesel and synthetic diesel fuel (syndiesel).
Source: $42m Jatropha biodiesel plant touted to US Department of Energy, Biofuel Review

Study Shows Evidence that Diesel Exhaust Kills Throat Cells
Researchers at a university in Melbourne, Australia have found that diesel exhaust is far more damaging to our health than exhaust from plant-based biodiesel. A team of researchers who compared the effects of diesel exhaust and biodiesel exhaust on human airway cells found that diesel exhaust damaged and killed the cells, while biodiesel exhaust had little effect. “This study provides clear evidence that diesel exhaust is more harmful to our health than biodiesel exhaust," said Associate Professor Leigh Ackland of Deakin University, adding that the results of the study provide support for calls to move towards replacing Australia’s gasoline and diesel with cleaner biofuels.
Source: Diesel Exhaust Kills Throat Cells, Study Shows, Science Daily

Kroger Becomes First National Retailer to Offer VE85 for FlexFuel Vehicles
VeraSun Energy Corporation, one of the nation's largest ethanol producers, and The Kroger Co. have opened 20 VE85 fueling locations at Kroger convenience stores, making Kroger the first national retailer to offer VeraSun's branded E85 — a blend of 85 percent ethanol and 15 percent gasoline for Flexible Fuel Vehicles. With the addition of the 20 Kroger locations, VeraSun is now selling VE85 at more than 100 retail fueling stations nationwide. VeraSun has also partnered with Enterprise Rent-A-Car to designate selected Enterprise rental locations as VE85/FlexFuel branches, where a quarter of the rental fleet will be GM FlexFuel Vehicles.
Source: Kroger Becomes First National Retailer to Sell VeraSun's Branded E85, CNN Money

California’s First Commercial LNG Plant Will Serve Heavy-Duty Natural Gas Fleets
Clean Energy, the leading provider of natural gas for transportation in North America, has begun construction on California’s first, large-scale LNG (liquefied natural gas) production plant, with commercial shipments scheduled to begin in the second half of 2008. The plant will serve the growing demand from California’s heavy-duty natural gas vehicle fleets, including fleets that serve the Los Angeles Ports. Initial production capacity will be around 160,000 LNG gallons per day, which will be delivered for use by fleets throughout California and the Southwest. Production capacity can be expanded to 240,000 gallons per day.
Source: Clean Energy Begins Construction on LNG Plant in California, BusinessWire

Demand for Green Shippers Driving Biodiesel Use in Trucks
A federal initiative from the U.S. Environmental Protection Agency (EPA) and growing customer demand for “green” shippers could accelerate biodiesel use in the trucking industry. Through its new “Grow and Go” program, the EPA is educating the industry about biodiesel’s benefits, and matching product shippers with truckers that use the fuel.  As a result, companies, such as California-based State Logistics, are increasing their business by finding sustainable transportation for environmentally conscious customers. Most of State Logistics’ trucking contractors use a 5 or 20 percent blend, but the company has also run trucks on B99 (99 percent biodiesel).
Source: Demand for 'green shippers' driving biodiesel markets, Farm Week

Biofuel Crops Could Transform UK Landscape
The British government’s Rural Economy and Land Use program estimates that Britain may need to devote 15-20 percent of its agricultural land to biofuel crops to meet international obligations to reduce carbon emissions and improve energy security. The impact on agriculture and food production is a big concern, so energy crops that can be grown on poor-quality arable land without the use of fertilizers are the main candidates. Two feasible crops, willow coppice and miscanthus, a fast-growing Asian tall grass, could transform the look of the British countryside. Therefore the program is also taking the time to assess public acceptability of a landscape dominated by giant energy crops.
Source: Biofuel crops to transform UK landscape, Financial Times

Pakistan Becomes Nation with Highest Number of CNG Vehicles
Pakistan has become the nation with the highest number of natural gas vehicles in the world, according to statistics compiled by the CNG Owners Association of Pakistan. The association has calculated that the number of cars running on compressed natural gas (CNG) in Pakistan has exceeded 1.6 million. The number of CNG filling stations has also grown rapidly — the number of operational CNG pumps at filling stations has increased to 17,000. These figures place Pakistan ahead of Brazil (with 1.42 million CNG-run vehicles) and Argentina (with 1.35 million). The association will submit its figures to the International Association for Natural Gas Vehicles for official endorsement.
Source: Pakistan now has highest number of CNG-run vehicles, Daily Times

Boeing Searches for Ideal Aviation Biofuel
The world's largest airplane maker, Boeing, is working with fuel developers from around the world to find the holy grail of alternative fuels: one that will shrink jet flight's substantial environmental footprint without requiring an overhaul of the world's existing airplane fleet. This is, however, not an easy task—the ideal fuel would need to pack the same energy punch as fossil fuels, but also remain liquid at the low temperatures that surround an aircraft in flight. Boeing is testing biofuels from different origins, ranging from soybeans to algae. Next year, the company, in partnership with Virgin Atlantic and engine maker GE Aviation, plans to fly a biofuel-propelled 747.
Source: Boeing, partners in search of right biofuel, The Wichita Eagle

Global Majors Enter India’s Biofuel Market
Global energy majors such as British Petroleum and D1 Oils, a UK-based biofuel company, are showing interest in India’s jatropha-based biofuel sector. The British energy majors have formed a joint venture, D1-BP Fuel Crops, which has lined up $160 million for the expansion of jatropha plantations in India, South-East Asia and Southern Africa over the next five years. The jatropha feedstock would be used to meet biodiesel requirements of both local and export markets, such as Europe, where domestic feedstock is unlikely to meet the anticipated biodiesel demand of around 11 million tonnes a year from 2010. The joint venture is expected to become the world’s largest commercial producer of jatropha feedstock, producing up to 2 million tonnes of jatropha oil a year. 
Source: Global majors eye slice of biofuel market, Moneycontrol.com

Air Force Wants a Complete Alternative-Fuel Fleet by 2011
The Air Force plans to qualify all the aircraft engines in its inventory to run with alternative fuels by 2011 and calls for purchasing 50 percent of fuel from domestic sources by 2016, says a senior Air Force official. The service is taking a harder look at alternative fuels because oil prices are likely to continue to rise, further straining an already tight Air Force budget. The Air Force is the largest fuel consumer in the US, burning 2.6 billion gallons in 2006 and the service’s annual fuel bill spikes about $60 million for each $10 rise in the price of a barrel of oil. Earlier this year, the Air Force ground tested a 50-50 blend of crude oil-based fuel and a fuel derived from natural gas.
Source: A complete alternative-fuel fleet by 2011?, Air Force Times

Audi Develops A5 Concept with Natural Gas Turbo Engine
German auto manufacturer, Audi, has released details of an A5 concept vehicle with a compressed natural gas engine. The concept Audi A5 2.0 T-CNG has been based on the TFSI engine, a turbo engine with gasoline direct injection, and according to Audi, emits approximately 20 per cent fewer CO2 emissions than a comparable gasoline-fueled vehicle while only weighing 90 kilograms more. Audi is saying the production could commence as early as 2009.
Source: AUDI Develops A5 Concept Vehicle with Natural Gas Turbo Engine, NGV Global

Switch to CNG Helps Reduce Pollution in Mumbai, India
India’s National Environment Engineering Research Institute (NEERI) is reporting that air quality in the city of Mumbai — India’s most populous city — has improved significantly since 2000, due to a greener, cleaner fuel. All 55,000 of Mumbai’s taxis have switched over to compressed natural gas (CNG) since 2000, resulting in 55 fewer tons of carbon monoxide being emitted each year. In addition to the significant drop in carbon monoxide levels, particulate matter in taxi emissions has come down by 99 percent from pre-CNG levels. “We can say air quality has improved in proportion to the improvement in fuel quality, as most vehicles are compliant with Euro-II and Euro-III standards," said Rakesh Kumar of NEERI.
Source: CNG switch has reduced city pollution, Times of India

Largest U.S. Biodiesel Plant Breaks Ground in Indiana
Indiana Governor Mitch Daniels has helped break ground on what will be the largest biodiesel refinery in the United States and one of the largest in the world. The $150 million Louis Dreyfus Soybean Processing and Biodiesel Plant to be constructed in north-central Indiana will process nearly 50 million bushels of soybeans annually. It is expected to produce 80 million gallons of biodiesel for blending into motor fuel each year. The plant will begin processing in early 2008. This is the first entry into the biodiesel field for the French company that has been trading in grains internationally since 1851 and has been operating in the United States for 98 years.
Source: Largest U.S. Biodiesel Plant Breaks Ground in Indiana, Environment News Service

Ethanol Byproduct Offers Cost Savings to Some Farmers
The rising demand for corn to make renewable fuel might be hurting some dairy farmers and beef ranchers, but others are finding that staying close to ethanol plants offers them the opportunity to buy feed more economically. Converting corn into ethanol produces a byproduct called distillers grains, which can be used as high-protein livestock feed. Most are dried so they can be shipped across the country and overseas, but cattle ranchers within 50 miles or so from an ethanol plant can save money by buying wet distillers grains, thus avoiding the processing and transportation costs associated with the dried grains. Don Endres, chairman of VeraSun Energy Corp, has found that dairy farms and feedlots are building or expanding around VeraSun's ethanol plants.
Source: Ethanol Byproduct Aids Farmers, Ranchers, ABC News  

Researchers Investigate Turning Brewery Residue into Biofuel
University researchers in Scotland have been awarded a prestigious Carnegie Trust Research Grant to investigate turning byproducts from beer and whisky processes into biofuel. The project will look at new methods of turning spent grain into bioethanol. Professor Graeme Walker is heading up the project. He said: “Scientists all over the world are trying to find a simple and cost effective way to produce more biofuels from waste or low value products. Brazil and the USA have both been very successful in creating bioethanol from sugarcane and maize starch … however the methods used in these countries are open to criticism since they create an increased demand for land for growing energy crops. Our research will be looking at the far more complicated process of turning waste products from industry into bioethanol as an example of a second-generation biofuel.”
Source: Booze To Biofuels: Fuel For The Future?, Science Daily

Volvo Unveils Green Truck Engines
Sweden's Volvo, the world's second biggest truck maker, has unveiled a line of truck engines adapted to run on renewable fuels and called for more efforts to make such fuels commercially available. The engines are powered by seven types of fuel — ranging from synthetic diesel to a mix of hydrogen and biogas. Volvo unveiled the engines to address concerns raised by the fuel industry that even if renewable fuels are developed, the vehicles won't be ready for them. While none of the engines are currently being produced for the market, the company contends that manufacturing could begin within a few years if fuel sources were more widely available.
Source: Volvo unveils green engines for trucks, Reuter