The largest biorefinery in the European Union could be operational in the first half of 2009.
The refinery, which UK biofuels firm Ensus is building in northeast England, will make bioethanol and a protein rich animal feed co-product from about 1.2 to 1.3 million tonnes of UK wheat.
'We are well into construction now and we will be producing ethanol and animal feed in Q1or Q2 next year,' Ensus CEO Alwyn Hughes comments.
The plant will be the first major bioethanol plant in the UK, producing around 330,000 tonnes of the biofuel, far larger than the current leader, a British Sugar facility in eastern England with an annual capacity of around 55,000 tonnes.
The Ensus plant will also produce 350,000 tonnes of animal feed.
It will consume a substantial amount of the UK's exportable wheat surplus. The UK traditionally has an exportable wheat surplus of about 2.5 million tonnes.
Ensus, a start-up company which was acquired last year by two US private equity funds, the Carlyle Group and Riverstone, has a contract to sell all the bioethanol produced in Wilton to oil major Shell.
The plant is expected to supply one-third of UK demand for ethanol under the UK's Renewable Transport Fuels Obligation (RTFO) which mandates that 5% of motor fuel should come from renewable resources by 2010.
Tuesday, July 01, 2008
Cheap, green, food-friendly biofuel produced in India
The first commercial batch of biofuel from the stalks of a new sweet sorghum hybrid has been produced this month (13 June) at a distillery in the state of Andhra Pradesh in India.
Ethanol is produced from the sweet juice in the stalk of the sweet sorghum. The researchers responsible for the hybrid say by using sorghum, resource-poor farmers will still be able to use the sorghum grain and protect food security, while earning an additional income from selling the stalks.
This first batch marks a major success for the research consortium that developed the new hybrid, says Belum V. S. Reddy, principal sorghum breeder at the India-based International Crops Research Institute for Semi-Arid Tropics (ICRISAT).
Sweet sorghum is a cheap biofuel crop to grow, costing about a fifth of that of sugarcane. It also requires half the water needed to grow maize and about an eighth of that required for sugarcane.
It is also carbon neutral, according to the Latin American Thematic Network on Bioenergy — a project promoting the sustainable use of bioenergy. Sweet sorghum takes in the same of amount of carbon dioxide during its growth that it emits during growth and its later conversion to ethanol and the eventual ethanol combustion.
When sweet sorghum biofuel is blended with petrol it also emits less polluting sulphur and nitrous oxide compared to sugarcane biofuel, according to Reddy.
A major problem for ICRISAT was ensuring availability of sweet sorghum stalks throughout the year. "Different plant types produce different amounts of juice at different times of the year and it is important to have genetic stocks that can produce the same amount of juice throughout the year," says Reddy.
ICRISAT solved the problem by developing hybrids that can be planted at any time of the year.
The team intend to plant at least 4000 acres of the new crop during the next rainy season, according to G. Subba Rao, director of Aakrithi Agricultural Associates of India, a partner in the project.
Clusters of villages have been identified for the planting, and seeds distributed to the farmers. A method has also been designed to collect the stalks from the farmers, which will then be crushed at cluster centres and the syrup transported to the main distillery.
Ethanol is produced from the sweet juice in the stalk of the sweet sorghum. The researchers responsible for the hybrid say by using sorghum, resource-poor farmers will still be able to use the sorghum grain and protect food security, while earning an additional income from selling the stalks.
This first batch marks a major success for the research consortium that developed the new hybrid, says Belum V. S. Reddy, principal sorghum breeder at the India-based International Crops Research Institute for Semi-Arid Tropics (ICRISAT).
Sweet sorghum is a cheap biofuel crop to grow, costing about a fifth of that of sugarcane. It also requires half the water needed to grow maize and about an eighth of that required for sugarcane.
It is also carbon neutral, according to the Latin American Thematic Network on Bioenergy — a project promoting the sustainable use of bioenergy. Sweet sorghum takes in the same of amount of carbon dioxide during its growth that it emits during growth and its later conversion to ethanol and the eventual ethanol combustion.
When sweet sorghum biofuel is blended with petrol it also emits less polluting sulphur and nitrous oxide compared to sugarcane biofuel, according to Reddy.
A major problem for ICRISAT was ensuring availability of sweet sorghum stalks throughout the year. "Different plant types produce different amounts of juice at different times of the year and it is important to have genetic stocks that can produce the same amount of juice throughout the year," says Reddy.
ICRISAT solved the problem by developing hybrids that can be planted at any time of the year.
The team intend to plant at least 4000 acres of the new crop during the next rainy season, according to G. Subba Rao, director of Aakrithi Agricultural Associates of India, a partner in the project.
Clusters of villages have been identified for the planting, and seeds distributed to the farmers. A method has also been designed to collect the stalks from the farmers, which will then be crushed at cluster centres and the syrup transported to the main distillery.
CPI(M) says mulls govt withdrawal
India's main communist party said it would discuss the timing of withdrawal from the government over the civilian nuclear deal with the United States due to Prime Minister Manmohan Singh's trip to a G8 summit.
The Communist Party of India (Marxist) is one of the left parties that support the government. The parties say they will withdraw from the coalition if Singh moves ahead with a deal they believe will make India a pawn of Washington.
Singh is reported to want to proceed with the deal before the G8 summit on July 7 in Japan.
"He had said he would only go (to the summit) if he gets clearance to go ahead with the nuclear deal," Prakash Karat, the head of the CPI (M), told the Hindustan Times on Tuesday.
"His going to Japan is an indication that they (the government) are going ahead with the deal. We are therefore discussing the timing of the withdrawal."
The statement is the latest in the war of words between the two allies as speculation mounts that the communists will withdraw, plunging India into possible early elections this year and months of political uncertainty.
Asked specifically if the communist parties would withdraw their support if the prime minister went to Japan, Karat said: "That is not the case yet."
With time running out before President George W. Bush leaves office, there are increasing signs Singh wants to go ahead with the accord even if it leads to the collapse of his coalition.
On Monday, Indian shares fell 2.5 percent to post their biggest monthly loss in 16 years as political uncertainty and soaring oil prices took their toll on investor sentiment.
A flurry of meetings are scheduled this week by the government, its non-communist allies and leftist parties.
Singh wants to be allowed to move ahead getting clearances from the International Atomic Energy Agency and 45-nation Nuclear Suppliers Group, procedures that could take months.
The pact would then have to go to the U.S. Congress for final approval before the end of Bush's term.
The Communist Party of India (Marxist) is one of the left parties that support the government. The parties say they will withdraw from the coalition if Singh moves ahead with a deal they believe will make India a pawn of Washington.
Singh is reported to want to proceed with the deal before the G8 summit on July 7 in Japan.
"He had said he would only go (to the summit) if he gets clearance to go ahead with the nuclear deal," Prakash Karat, the head of the CPI (M), told the Hindustan Times on Tuesday.
"His going to Japan is an indication that they (the government) are going ahead with the deal. We are therefore discussing the timing of the withdrawal."
The statement is the latest in the war of words between the two allies as speculation mounts that the communists will withdraw, plunging India into possible early elections this year and months of political uncertainty.
Asked specifically if the communist parties would withdraw their support if the prime minister went to Japan, Karat said: "That is not the case yet."
With time running out before President George W. Bush leaves office, there are increasing signs Singh wants to go ahead with the accord even if it leads to the collapse of his coalition.
On Monday, Indian shares fell 2.5 percent to post their biggest monthly loss in 16 years as political uncertainty and soaring oil prices took their toll on investor sentiment.
A flurry of meetings are scheduled this week by the government, its non-communist allies and leftist parties.
Singh wants to be allowed to move ahead getting clearances from the International Atomic Energy Agency and 45-nation Nuclear Suppliers Group, procedures that could take months.
The pact would then have to go to the U.S. Congress for final approval before the end of Bush's term.
Bleak fiscal, c/a outlook in India for 08/09
India's current account deficit nearly doubled in value in the last fiscal year, as high global oil prices widened the trade gap, and analysts expected further deterioration with no let-up in sight from rising crude prices.
The federal fiscal deficit for the first two months of the current 2008/09 fiscal year also widened. Economists said it could outstrip the budget estimate due to oil subsidies, a farm loan waiver and an expected salary hike for government workers.
"Oil prices hold the key to the level of India's fiscal and current account deficits this year," said Sonal Varma, an economist at Lehman Brothers.
"With rising oil prices, we expect the current account and the fiscal deficit to worsen in 2008/09."
Oil touched a new record above $143 a barrel on Monday. India imports about 70 percent of its oil and crude is its largest import. Retail fuel prices are state-controlled and the government has issued special bonds to state-run oil companies to partially compensate them for selling fuel at below-market rates.
The widening current account deficit has put the rupee under pressure in recent weeks, along with the higher oil import bill and investment outflows from the weakening stock market.
The rupee has fallen 8.4 percent so far this year against the dollar and hit a one-month low on Monday of 43.1150 per dollar.
INVISIBLES VS TRADE
The current account shortfall for the financial year which ended in March widened to $17.4 billion, or 1.5 percent of gross domestic product, from $9.8 billion, or 1.1 percent of GDP, in 2006/07, the central bank said.
The deficit was $1.04 billion in the January-March quarter, compared with a surplus in the year ago period. The December quarter gap was a revised $5.12 billion.
Net invisible receipts, which include software service exports and money sent by overseas Indians, were $22.8 billion in the March quarter from $20 billion in the previous quarter.
"The current account deficit for January-March quarter suggests that the usual seasonal increase in invisibles has not kept pace with the rise in trade deficit this year, largely due to rising oil import bill," Varma said.
She expected the 2008/09 deficit to reach 3 percent of GDP.
Arvind Virmani, finance ministry chief economic adviser, said this month there was a very low probability the current account deficit would exceed 2.5 percent of GDP over the next four years.
For 2007/08, private transfers to India totalled $42.6 billion, compared with $29 billion in 2006/07.
The Reserve Bank of India said the balance of payments surplus in the March quarter fell to $24.99 billion from a surplus of $26.74 billion in the December quarter.
"India should still get sufficient capital inflows to cover the current account deficit, but the overall balance of payments surplus is likely to moderate to $18 billion in 2008/09 from $92.2 billion," Varma said.
The quarterly trade deficit, on a balance of payments basis, narrowed to $23.8 billion from $25.1 billion in October-December.
OFF-BUDGET
The government aims to keep the federal fiscal deficit at 1.33 trillion rupees ($31 billion), or 2.5 percent of GDP, for 2008/09, down from 2.8 percent in the previous year.
The federal fiscal deficit widened to 732.01 billion rupees in April-May, the first two months of the fiscal year, from 621.35 billion rupees in the same period a year ago.
The April-May deficit was 55 percent of the annual target, as the government stepped up spending. Sometimes the government frontloads annual expenditure but there is no set pattern.
Economists said a major portion of subsidy expenditure was not reflected in the official data.
"The quantum of the off-budget items are going to be higher than fiscal deficit itself," said Dharmakirti Joshi at CRISIL.
Joshi expected the actual 2008/09 fiscal deficit to widen to 6.2 percent of GDP, once off-budget items were included.
The federal fiscal deficit for the first two months of the current 2008/09 fiscal year also widened. Economists said it could outstrip the budget estimate due to oil subsidies, a farm loan waiver and an expected salary hike for government workers.
"Oil prices hold the key to the level of India's fiscal and current account deficits this year," said Sonal Varma, an economist at Lehman Brothers.
"With rising oil prices, we expect the current account and the fiscal deficit to worsen in 2008/09."
Oil touched a new record above $143 a barrel on Monday. India imports about 70 percent of its oil and crude is its largest import. Retail fuel prices are state-controlled and the government has issued special bonds to state-run oil companies to partially compensate them for selling fuel at below-market rates.
The widening current account deficit has put the rupee under pressure in recent weeks, along with the higher oil import bill and investment outflows from the weakening stock market.
The rupee has fallen 8.4 percent so far this year against the dollar and hit a one-month low on Monday of 43.1150 per dollar.
INVISIBLES VS TRADE
The current account shortfall for the financial year which ended in March widened to $17.4 billion, or 1.5 percent of gross domestic product, from $9.8 billion, or 1.1 percent of GDP, in 2006/07, the central bank said.
The deficit was $1.04 billion in the January-March quarter, compared with a surplus in the year ago period. The December quarter gap was a revised $5.12 billion.
Net invisible receipts, which include software service exports and money sent by overseas Indians, were $22.8 billion in the March quarter from $20 billion in the previous quarter.
"The current account deficit for January-March quarter suggests that the usual seasonal increase in invisibles has not kept pace with the rise in trade deficit this year, largely due to rising oil import bill," Varma said.
She expected the 2008/09 deficit to reach 3 percent of GDP.
Arvind Virmani, finance ministry chief economic adviser, said this month there was a very low probability the current account deficit would exceed 2.5 percent of GDP over the next four years.
For 2007/08, private transfers to India totalled $42.6 billion, compared with $29 billion in 2006/07.
The Reserve Bank of India said the balance of payments surplus
"India should still get sufficient capital inflows to cover the current account deficit, but the overall balance of payments surplus is likely to moderate to $18 billion in 2008/09 from $92.2 billion," Varma said.
The quarterly trade deficit, on a balance of payments basis, narrowed to $23.8 billion from $25.1 billion in October-December.
OFF-BUDGET
The government aims to keep the federal fiscal deficit at 1.33 trillion rupees ($31 billion), or 2.5 percent of GDP, for 2008/09, down from 2.8 percent in the previous year.
The federal fiscal deficit widened to 732.01 billion rupees in April-May, the first two months of the fiscal year, from 621.35 billion rupees in the same period a year ago.
The April-May deficit was 55 percent of the annual target, as the government stepped up spending. Sometimes the government frontloads annual expenditure but there is no set pattern.
Economists said a major portion of subsidy expenditure was not reflected in the official data.
"The quantum of the off-budget items are going to be higher than fiscal deficit itself," said Dharmakirti Joshi at CRISIL.
Joshi expected the actual 2008/09 fiscal deficit to widen to 6.2 percent of GDP, once off-budget items were included.
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