Malaysian Researchers Looking at New Biofuel Technology

Malaysia University of Science and Technology (MUST) is developing new ways of using oil palm-related products to produce renewable fuels, in what is seen as a response to European Union concerns in food and environment-related carbon balance. 

The MUST university is collaborating with a German research organization, Fraunhofer to work on directly processing oil palm biomass into biodiesel, instead of bidiesel being produced from crude palm oil. However, the MUST-Fraunhofer research is focusing on making the fuel from non-CPO biomass. This is to alleviate the mass requirement for oil palm plantations where only 10% of the biomass comprises CPO (Crude Palm Oil) and the rest includes fibers, empty fruit bunches, shells, fronds and tree trunks. 

Much of the reasearch will be to turn non-CPO biomass into gas and liquefied gas for usage as gasoline and biodiesel which will see bigger commerical gassification plant in Malaysia from palm oil. MUST is in the hope that the technology to be developed for commercial use in 2-3 years.

Malaysian Biodiesel Sold Out

Mission New-Energy, an Australian firm  which has a stake of 100 kmta of biodiesel plant at Malaysian port of Kuantan told the press that all of the potential production is already sold out in 2009. Mission is now on its way for a second palnt which will be able to produce an extra of 250 kmta of biodiesel.

The second plant project has been delayed in construction for many months due to technology switching. Despite the global economic turmoil, Mission Energy has able to sell all of 2009 contractual production to a major global oil and biofuels player for a cost-plus-margin basis protecting it from the volatility in commodities markets.

The recent huge price drop in biodiesel last year had pushed many biodiesel producers to the brink of collapse.

India Building It's First Biodiesel Plant

Mission Biofuels, a Mumbai-based biodiesel company is planning to build the India's first biodiesel plant in the eastern Indian state of Orissa with a capacity of 100,000 mt/year plant. The construction cost for the biodiesel plant is expected to be around $USD 75million which does not include the company's already access to 350,000 acres of jatropa farms across the country.

The construction will take two years to coincide with the maturity of its jatropha crops which are 40% planted in Orissa. Jathropa crops have made its way as a sustainable source for biodiesel fuels in the debate of carbon balance.

German Biodiesel Power Plant Facing Economic Threat

Germany’s environment ministry in the wake of economic turmoil must act quickly to ensure Germany's power stations running on palm and soy oil-based fuels and biodiesel do not go bankrupt.

This is after a legal change to restrict palm and soy-based fuels to no longer be counted into biofuels quotas. The resulting consequence is that the plants will no longer receive a bonus for using renewable energy from 1 January 2008 impacting most of power plants margin.

Malaysia to Raise Biodiesel Export

One of the largest biodiesel producer from palm oil, Malaysia has raised its 2008 biodiesel export forecast to 200,000 tonnes a twofold increment from its previous year.

High spread between the selling price of palm methyl ester and the feedstock crude palm oil (CPO) is seen as the main reason behind the huge jump. Malaysia currently has 1.6 million tonnes capability to produce CPO per year mainly for production of methyl ester. Malaysian's biodiesel export mostly goes to the European countries.

India Developing Bioethanol Technology

India's Praj Industries has set up a bioethanol R&D (research and development) centre looking at nullifying the impact of energy feedstock on food and animal feed which has lead the R&D centre to achieve a breakthrough in technology for production of bioethanol from lignocellulosic feedstock. Praj Industries is currently in the midst of commercialising its patented technology of producing ethanol from sweet sorghum with interested oil companies.

New Biodiesel and Glycerine Process by Nippon Shokubai

Japanese chemical producer, Nippon Shokubai has developed a new mainstream catalytic process to produce biodiesel and glycerine that generates much lesser waste than current technology.

Nippon Shokubai's new method process technology also reduces the cost to build and maintain the plant by as much as 10%, and also improved the ratio of converting vegetable oils into fatty acid ester, a biodiesel fuel, by 3% and on top of that, the byproduct glycerine produced by this method is very high in purity (over 98wt%). At 98% wt purity, the glycerin could be used as a feedstock for other chemicals without any refining.

First Jatropha Plant By Wartsila Finland

Finland company, Wartsila has won a $11 million contract to build a 9 megawatt combined heat and power (CHP) plant in Belgium that will run on vegetable oil from the jatropha plant and to produce both electricity and heat.

This will be the first Jatropa facility in the world using carbon dioxide neutral fuels that do not compete with food crops since Jatropha oil was a liquid biofuel with great potential as it could be harvested outside the world’s rainforest areas, even near deserts.

Commissioning of the plant is expected to begin in February 2009 operated by Greenpower NV, a joint venture of Thenergo and four local agricultural companies and a private investor.

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Lawsuits Await Oil Majors for Ethanol-Gasoline Damages

In what could be a hard slap for the environment, ExxonMobil, Chevron, BP, Shell, Valero, ConocoPhillips and several other oil majors are facing a lawsuit for the manufacture and sale of ethanol-blended gasoline due to the allegedly blended biofuels damaging marine fuel tanks and engines including polluting the marine environment.

The lawsuits is costing thousands of dollars in repairs of hard items alone. It was understood that the ethanol in gasoline fuel has corrosive properties and dissolved the fibreglass resins used in the fibreglass tanks as well as engines.

Since the banning of methyl tertiary butyl ether (MTBE) in 2004, Ethanol has been added to regular gasoline to boost octane levels, reduce engine knocking and improve vehicle performance.

So far, Chevron, BP, Shell, Valero and ConocoPhillips are the oil majors facing with the lawsuits with other names like PetroDiamond, Tower Energy and Big West currently on the list as well.

Texas Building Renewable Fuels Complex by Orion

Orion Ethanol is planning to build a renewable fuel complex from corn fructose in Texas. Orion has already secured an idle wet mill in Dimmitt, Texas, which will be integrated into the company's 2million gal/year renewable fuels complex.

The wet mill will be able to produce 60m gal/year ethanol 10m gal/year edible oil for the first stage of the project. Later, Orion Ethanol plans for additional 10m gal/year cellulose-to-ethanol process, a 12m gal/year biodiesel plant, a 25,000 tonne/year yeast plant and a 60-75 megawatt (MW) wind and biomethane power plant.

Shell & Virent Develop New Biogasoline Fuel Technology

Shell and in collaboration with US biofuels company Virent is developing a new biogasoline fuel and blend components directly from plant sugars without the need for fermenting sugars into ethanol. Virent’s catalytic process will be used which is a proven biomass-derived feedstocks to biogasoline production. Researchers claimed that the new biogasoline molecules will have a better fuel efficiency than ethanol. Furthermore, the new biogas can eliminate the need for new engine designs.

Brazil Uses More Ethanol than Gasoline

Brazil, the world's largest ethanol producer from sugarcane consumes more ethanol than gasoline at the start of the South American winter as predicted by analysts. Ethanol demand in Brazil is especially high and it exceeded gasoline was in February 2008.

Brazillian ethanol consumption mainly goes to sales of flexible-fuel vehicles, which can burn either ethanol or gasoline which is the normal spec for somewhat 2.75 million automobiles in 2007 alone.

Thailand Selling E20 Gasohol

Thailand has started selling its E20 Gasohol, a 20% ethanol - gasoling blending, replacing MTBE. E20 is cheaper than regular gasoline in Thailand and large gasoline blenders like Shell and PTT are both offering E20 grades at some of their pump stations. E20 Gasohol (Gasoline-Ethanol) is cheaper than regular methyl tertiary butyl ether (MTBE) blended gasoline due to Thailand's government subsidy.

Many newer Japanese and European cars should be able to tolerate E20 which is a 20% blending of ethanol as opposed to earlier version of E10, using 10% blending of ethanol. Thailand has a strong policy towards biofuels and widespread use of ethanol blended gasoline has been seen in the starting with B2, a 2% biodiesel blend in petroleum diesel.

Wilmar and Sasol Building China Fatty Alcohols

A joint-venture between Wilmar International and South Africa's Sasol has been forged and in talks with Chinese oleochemicals producer Liaoyang Hua Xing for building a fatty alcohols chemical plant in China.

The collaboration will see Liaoyang, a manufacturer of fatty alcohols to have 40% share in the joint JV and Wilmar and Sasol will jointly hold a 60% stake. Plant capacity is still confidential at the moment.

Wilmar which is the world’s largest palm oil trader, with HQ in Singapore has also acquired Malaysian Kuok group’s palm plantation and edible oils business. Fatty alcohol is an ingredient commonly used in soaps, detergents and other consumer and personal care products such as cosmetics.

E85 Cadillac in the Market 2009 by General Motors

General Motors (GM) plans to sell its biofuel E-85 Cadillacs in 2009. E-85 is a blend of 85% ethanol and 15% gasoline. GM is estimating that half of its annual vehicle production will be E-85 or biodiesel capable by 2012. General Motors is actively in research for biofuels and renewable source for cars which has also plans in hybrid and hydrogen technology.

Singapore Biodiesel Gloomy in 2008

Wilmar International, an integrated biodiesel producer is badly affected by high crude palm oil (CPO), feedstock for its its biodiesel plants in Indonesia and Malaysia. The biodiesel plants are running at 20% capacity for the first three months of 2008.

Despite the gloomy biofuels sector, Wilmar International, posted on the Singapore-listed firm reported a four-fold surge in fourth-quarter operating profits to $394.2m from $98.8m. Wilmar is also expanding its joint ventures with local companies in Africa, China and Europe.

Colombia Building 100 ktpa Biodiesel Plant

Colombia biofuels supplier, Ecodiesel is planning to build a massive 100,000 tonne/year capacity biodiesel plant in Barrancabermeja, Colombia with cost of investment to be in the range of $23m to start construction in February 2009.

The plant will use palm oil feedstock using Brazilian engineering technology Dedini A Industrias de Base. Upon completion, Colombia will be Latin America’s second largest biofuels producer after Brazil.

50% stake in Ecodiesel is partly owned by Colombian palm and vegetable oil manufacturers namely Extractora Central, Palmas Oleaginosas Bucarelia, Extractora Monterrey, Oleaginosas Las Brisas, Palmeras de Puerto Wilches and Palmas del Cesar y Agroince.

Cellulosic Ethanol for Biorefineries Hitting US

US is investing $114m for cellulosic ethanol projects to explore cellulosic ethanol feedstock options and production processes for biorefineries. The investment is for four years development of funding of four pilot plants before contribution from private sector. The government funding is seen as part of US goal of making cellulosic ethanol cost-competitive with gasoline by 2012 under the President Bush administration.

The pilot plant will be able to produce about 2.5m gal/year of cellulosic ethanol in a plant to build a commercial ethanol plant with annual output capacity of around 25m gallons or 75,000 tonnes.

There are as yet no commercial-scale cellulosic ethanol production units in the US. Current technologies explored under study for cellulosic ethanol production includes conventional cellulosic conversion technologies, biogenetic and microbiotic conversion of cellulosic feedstock into cost-effective fuels.

Cellulosic Ethanol Production Route from Biomass

Incentives to go with ethanol is pressured under the Energy Independence and Security Act of 2007 which requires the US to produce at 100m gal/year of cellulosic ethanol by 2010 and 500m gal/year by 2012 in the route to achieve 36bn gal/year of renewable fuels in 2022.

Peru to have $100 million Investment for Biofuels

Peru is expected to have more than $100 million for biofuels sector coming from the private investment especially in the ethanol and biodiesel projects. The renewable fuels would come mostly from the country's sugar cane. palm oil and jathropa in which companies have had talks with the local governments for land acquisition and collaboration with the agricultural caompanies.

The demand is fueled by Peru's law which requires diesel supply to have a blend of 2% biodiesel by the first of 2009 an the amount is to be increased to 5% by 2011. The biofuels demand is not only for the growing internal market but also following free trade agreement between US and Peru which has seen a new chapter in the development of Peru's energy and technological resources.

The Romero group is expected to complete a biofuels plant based on palm oil next month. Bioterra, is in the process of acquiring land to start up its own biofuels operation while Maple Energy is investing $157m to build an ethanol plant, export terminal and power plant in northern Peru.

Glycerol Technology by Rohm and Haas, Novasep

Rohm and Haas, a US specialty chemical company has struck a deal with Novasep to market and sell a new biotechnology that will purify crude glycerol, a by-product from biodiesel processing. The technology purifies crude glycerol through a separation processes developed by Novasep and Ambersep BD50, a resin produced by Rohm and Haas. The technology would be able to reduce the production cost significantly unlike the conventional purification process through distillation.

Currently, there is an abundance of crude glycerol available at disposal due to the rapid growth of biodiesel production. Rohm & Haas and Novasep most likely will license the glycerol purification technology in late 2008 or 2009.