My previous report relating to Nova Biosource Fuels, Inc (NBF) indicated doubts about 1.the renewal of the biodiesel tax credit and 2.management’s ability to bring the complex start up issues of their new plant to a successful conclusion.  Both matters have become more questionable since then. A report by AgWeb.com reads in part as follows: “Note: The farm bill will not include a one-year extension of the biodiesel tax incentive program, which is due to expire at the end of 2008. One …

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Nova Biosource Fuels, the one “venture capital” sort of holding in the EIS portfolio, today reported that its primary plant in Seneca, IL has successfully begun production with the first of the three 20 mg/y lines now operating.  That is a major milestone.  It’s not as good as having all three up and going, but it is certainly good news.

On the other hand, NBF suffered a setback when a pump broke and apparently caused major damage to the Scott Petroleum plant that NBF built and owns a 50% interest in.  …

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Bio-diesel may become a significant part of the transition from petroleum to electricity by easing the pain of insufficient oil production.  This article lays out the advantages from the perspective of India, including better performance in the engine and ecological benefits.  There is no reason that all oil importing countries may not reach similar conclusions as soon as the technologies are in place. Md Jamilur Rahman, 21 February 2008, Thursday Views:: 370    Comments: 3    …

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Below is some information originally posted on The Oil Drum on 1/28/08 about the new energy bill’s renewable fuel mandates, which include both ethanol and biodiesel.   Apparently there is some apparatus for enforcing the mandates through penalties.  But as this piece notes at the end, there is some confusion about that.  The piece discusses waivers and how they would be obtained, but presumably the same system that is established for waivers would relate to the original system established for penalties.   API is very …

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Nova is an odd duck. It’s nearly a start-up with no biodiesel sales revenue through most of 2007. But it could be selling nearly $200 million worth of biodiesel at some point in the third quarter of this year. Moreover, far from the condition of most start ups, it has a remarkably wide and deep management team - most with many years if not decades of experience with top petroleum and chemical companies. It produces a commodity product – biodiesel fuel – but not like others do. Instead …

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January 18, 2008   PetroSun, Inc. (PINK: PSUD) announced that its subsidiary, PetroSun BioFuels Refining, has entered into a joint venture to construct and operate a biodiesel refinery near Coolidge, Arizona. The feedstock for the refinery will be algal oil produced by PetroSun BioFuels at company owned and operated algae farms to be located in Arizona. The refinery will have an annual production capacity of thirty million gallons and will produce 100% renewable biodiesel. PetroSun BioFuels will process the residual algae biomass into …

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In South Africa food cost sensitivity causes the government to rule against maize as a feedstock for biofuel.   Here is a new report: Food security hobbles SA biofuel strategy Stephanie Nieuwoudt | Johannesburg, South Africa 30 December 2007 06:00 Worried that it may be seen as insensitive to the food needs of Africa, the South African government, which is facing a general election in 2009, has chosen food security in framing a …

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German biodiesel makers see the tax rug pulled out from under their business.  With a subsidy gone and a new tax imposed, German biodiesel makers are set to sell a lot less of it, adding to demand for petroleum.  The problem: pressure on grain prices. Here’s the full story from IPS News: ENERGY: German Biodiesel Forced to Compete By Julio Godoy* …

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  Industry’s Woes Endanger EU Goal For Using Fossil-Fuel Alternatives By JOHN W. MILLER December 27, 2007; Page A4 BORKEN, Germany — The European Union’s dream of using vegetable-based diesel fuel in cars to cut oil imports and the pollution that causes global warming is turning sour. The bloc made a big bet on biodiesel fuels in 2003, agreeing that its governments would phase in tax breaks and rules to encourage their production and use. The bet seemed …

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The bill mandates use of 500M gallons of biodiesel by 2009, rising to 1B gallons by 2011.  It’s not clear who will go to jail if these targets are not met.  JK

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by Todd Sullivan The United States Senate passed the Energy Bill 86-8 after $13 billion in oil company taxes were dropped from the bill. Voting on an earlier version of the bill with the tax package still included, the Senate came up one vote short (59-40) of ending a filibuster staged by Senate Republicans in support of the oil companies. The bill will now go to the House where it is expected to pass, and the President is expected to sign the legislation into law before the …

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Following up on the new ethanol “mandates” contained in recent federal legislation and also on my essay on ethanol and biodiessel , a discussion of ethanol in the Oil and Gas Journal of November 26, 2007 is of great interest. A quick review of some of its salient points follows.

The introductory paragraphs are a dramatic summary: “The rapid increase in ethanol consumption during 2002 – 06 will prove to have been a one-time event that captured two thirds of the ultimate near term market. Growth beyond the remaining third of ethanol’s …

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The substitution of alternative liquid fuels - ethanol and biodiesel - for petroleum-based gasoline and diesel fuel is a “fountain of youth” dream of clean, renewable resources replacing scarce, dirty ones. Is the dream practical? There are uncertainties because technology and the role of government subsidies and mandates will change. But there are clearly big differences between the two flavors, ethanol and biodiesel.

Ethanols

Corn ethanol is a tragic diversion from the important work of mitigating peak oil. It’s production does not yield much if any net energy gain; it is difficult …

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The feedstocks for biodiesel are oils and fats, which naturally occur in quantity only in animals or the seeds of plants. As such, the quantity of oil available is much smaller than the sugars, starches, and cellulose which occur not only in the seeds and fruits of plants, but also in the stems and leaves, and can be used to make ethanol. Because sugarcane contains the best ethanol feedstock, sugar in the stem (not just the fruit) of the plant, Brazilian ethanol can compete effectively with gasoline without subsidies. …

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Surveys indicate potential new car buyers are more realistic about the fuel savings and additional costs of hybrid cars.  At the same time they are learning more about the added fuel efficiency of the new clean diesel engines that are increasingly being offered and are increasing their desire for such cars.   read full post

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