starch italics 11th edition

GIRACT

Starch Industry Overview

Starch Italics

www.giract.com

J une/J ul y 2011

Starch Italics Starch Industry Overview

June/July 2011 TABLE OF CONTENTS

Crops & Grains

p.1 Collaboration on cassava-based ethanol

Tapioca flour and exports growth areas

p.2 Humphrey Feeds weekly feed report

p.3 Tight corn stocks to fuel scrutiny of

ethanol use

p.4 Food: Deal Will Help Build a Better

Cassava

p.5 Corn used for ethanol increased, sorghum

decreased

Brazilian cane harvest improves, ethanol

production surges

Starch & Derivatives

p.6 Microfluidization for cassava starch

modification

Sugar, starch boost lifts Agrana to four-

year high

Company News

p.7 Roquette Announces the Completion of its

New Injectable Carbohydrate Plant

Schweppes, ZIA, ethanol plant, Hwange

Colliery Company

Bio-Fuels

p.8 Bowyer champions the increased use of

ethanol in gasoline

p.9 Iowa Ethanol Factory to Begin Converting

Corn Waste Into Motor Fuel

p.10 USDA to help fund planting crops for

biofuel

p.11 Genencor launches enzyme product to

advance biofuel production

p.12 ABF eases cloud over Europe's wheat

ethanol sector

p.13 Süd-Chemie breaks ground on German

wheat straw-to-ethanol plant

p.14 Petrobras Expands In Biofuel World

p.15 European Commission approves first

sustainability schemes for biofuels

Bio-Fuels (Contd)

p.16 Kansas gets another biofuels project

Extension of ethanol tax credits would

boost corn production

Feature: Growing up and across

p.17 Farmers, ethanol makers likely OK

without subsidy

p.19 Cellulosic ethanol and cold fusion

p.20 Ethanol, soy demand drive up food prices

Seaweed Could Be New Form of Biofuel

p.22 Ethanol Industry Torn Over Losing

Subsidy Billions

p.24 Valley plants plan to make corn-free

ethanol

p.25 BP Biofuels confirms 2012

groundbreaking for US cellulosic ethanol

project

p.26 AE Biofuels acquires Zymetis for

renewable fuels, chemicals

Biofuels firm wins verdict over Colwich

ethanol site

p.27 Corn ethanol subsidy to end

Bio-Plastics

P.28 Plastic by Any Other Name

p.29 Bio-plastic plant for JK grounded

Regional Language News

China

p.31 The current dynamic market conditions

Shandong corn

Gansu Dingxi report on the development

of the potato industry

p.33 corn prices of Hebei province on June 10,

2011

p.34 Starch, sugar prices to settle and sales in

general June 17, 2011

(Table of contents continued on next page)


June/July 2011 TABLE OF CONTENTS

GLOSSARY

bio ‗000 000 000

cpd cases per day

crore ‗0 000 000

JV Joint Venture

k ‗000

kt ‗000 tons

klpd kilo litres per

day

lakh ‗00 000

lpd litres per day

mio ‗000 000

M&A Merger

&Acquisition

pa per annum

t tons

tpa tons per annum

tpd tons per day

tph tons per hour

tpm tons per month

GIRACT Global Starch and Starch Derivatives study

Giract has just published new

multi-client research into global starch

supply, examining in particular the

impact of the recent economic

downturn on the industry. Details on

the following page.

Regional Language News (Contd)

Vietnam

p.37 Cassava exports increase as China prices

surge

Portugal

p.38 U.S.: Ethanol Gasoline Futures Plunge

the Hold Steady, Corn Advances

p,39 Ethanol corn leaves 17% more expensive

p.40 The development of bioethanol production

is possible only in case of cancellation of

excise duty USDA

Spanish

p.41 The U.S. Senate vote to end subsidies for

ethanol

Indonesia

p.42 EPA mandate to reduce its cellulosic

ethanol again for 2012

Belarus

p.42 Corn, Soybeans Fall on Speculation of

China to raise rates ; Wheat Advances

Brazil

p.44 Sale of ethanol in jobs fell 8.5% in 2010

https://twitter.com/#!/starchitalics

GIRACT

Starches and Derivatives Impact of the economic downturn Global Production and Supply 2009/10 – 2015

INTRODUCTION The starch industry is one of the world’s largest transformers of agricultural raw material, producing 73 million tons (expressed as primary starch with 12% moisture). For 30 years the starch industry has posted a remarkable average 4% annual growth and shown great flexibility to adapt to changes and opportunities, from raw material sources and changing trade regulations to new production technologies and end-use sector dynamics.

Since 2007, this dynamic has changed abruptly for several reasons:

High demand for agricultural raw materials by the fast growing Asian economies coincided with new competition from the bio-energy boom, especially in USA, leading to a record high in raw material cost

High ingredient costs forced the food industry to undertake a strong cost-cutting drive, and even though starch and their derivatives were earlier seen as ‘low-cost’ ingredients, they have now become a target for replacement in several end-uses

Starch production in Asia continued to expand, fuelled by strong local consumption especially in China, while European players were facing more blows from the ongoing CAP reform in the sugar and potato starch sectors

The economic recession affected starch demand as never before and in almost every end-use sector; e.g. the European paper industry saw a decline by 40% and with enough new mills in low wage countries, this demand in Europe may never be recovered.

Thus, the traditional patterns in starch production and demand have changed dramatically and so did the competitive landscape. The dominant position of Western players and markets is being eroded, both in terms of product portfolios and players and China has emerged as the largest country for supply and demand of starch. Cost-effectiveness and clean labelling have been driving changes in demand.

As these new patterns are emerging, it is the right time for every player and end-user in this field to take stock of new opportunities and threats before making any strategic decisions. This report provides the necessary comprehensive picture of actual global starch production and trade, by product and area, and explores which key factors are likely to influence the future to 2015.

Giract, the ingredients and technologies specialist and leader in market analysis of starches and their derivatives, published landmark studies in ’95, ’00, ’04 and ‘07 which pulled together starch supply by type of raw material and player across the world. These studies have been a reference for all players in the industry and for key end-users. The present update, published in autumn 2010, takes into account the various changes that have occurred across the world in the last few years, and thus acts as an important tool in your strategic planning.

OBJECTIVES • To identify starch and derivative production

- by key country/region - by type of raw material - by type of starch and starch derivative - by key producer • To evaluate trade patterns of different types of starches and derivatives • To estimate availability of starches and derivatives by key country/ region and of starch by type of raw material • To forecast global trends in starches and derivatives to the year 2015

PRODUCTS Primary starch from different raw materials, including maize, wheat, potato and tapioca. Finished products as starches (native and modified) and starch derivatives (glucose syrup, high fructose syrup, dextrose, other hydrolysates and polyols)

MARKETS Global

TIMESCALE 2009/10 and 2015

REPORT Published September 2010

SUBSCRIPTION Please contact us for subscription details

For more info, contact GIRACT V. Krishnakumar, Jo Goossens

24, Pré-Colomb Tel: + 41 22 779 0500

1290 Versoix/Geneva Fax: + 41 22 779 0505

Switzerland [email protected]

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June/July 2011 www.giract.com Page | 1


Crops & Grains

Collaboration on cassava-based ethanol

Thailand has teamed up with neighboring

countries to develop ethanol from fresh cassava,

aiming to turn the kingdom into a regional

technology and production centre for

cassava-based renewable fuel. Under a

programme called South-South Technology

Transfer --- ethanol production from cassava,

which is funded by the Global Environmental

Facility (GIF), Thailand will be a focal point in

forging cooperation with Vietnam, Laos, and

Burma. The four-year project, which will be

launched next year, includes two pilot ethanol

plants to be built in Thailand and Vietnam. The

facilities could be developed for commercial-scale

production in the next phase through a partnership

with interested investors and banks.

The Thai pilot project will be located at an

alcohol production plant of the Liquor Distillery

Organisation (LDO) in Bang Khla,

Chachoengsao, to produce ethanol from fresh

cassava between 2012 and 2013. Next month it

will test ethanol production from tapioca chips,

and it has produced molasses-based ethanol in the

past. "The main problem for ethanol production in

Thailand now is the relatively high cost of raw

materials, as the price of molasses is increasing,"

said LDO Director Ittithep Visessmit. Tapioca

chips are now priced at THB 7/kg, compared to

THB 3/kg for fresh cassava, which also generates

a higher yield for ethanol production.

"Once we can produce ethanol from fresh cassava,

we will contract with farmers to lower the cost of

raw materials," he added. The pilot plant in Hanoi

will be operated between 2013 and 2014 with

capacity of 50 litres a day of E100, less than the

200 litres at the Thai plant, said the

United Nations Industrial Development

Organisation, a partner in this project.

(Continued in next column)

Collaboration on cassava-based ethanol (Contd)

The National Science and Technology

Development Agency will receive THB 80 mio

from GIF to help with technology transfer to

neighboring countries, as Thailand is more

advanced in this area. Thailand is the world's

largest exporter of tapioca products, with annual

production of 25-30 mio t. (bangkokpost.com

23 June 2011)

Tapioca flour and exports growth areas

The Thai tapioca industry will focus on flour

exports and Asian markets as part of its growth

strategy over the next five years, when the exports

of tapioca products could reach THB 100 bio. The

Commerce Ministry projected that by 2016,

domestic demand for cassava roots in ethanol

production will surge to 13 mio t, while exports

could top 22.5 mio t, totalling 35.5 mio t, up 42%

from the current production levels. Speaking at

the World Tapioca Conference 2011,

Yanyong Phuangrach, the ministry's permanent

secretary, said Thailand should focus more on

exporting tapioca flour to substitute for a

reduction in the export of tapioca chips and

pellets. The proportion of flour exports is

expected to rise to 65% from 51% now, with

chips and pellets making up the rest.

Mr Yanyong said the country should build a good

image and accept the standards of its tapioca flour

and other products to create confidence among

importers, buyers and local consumers. Thai

exporters should also expand in promising

markets, especially in Asia countries such as

China, India and Indonesia, to ensure flour quality

and lower transport and insurance costs. Sharing

his view was Pramote Kongthong, President of

the North Eastern Tapioca Trade Association,

adding that tapioca flour has high potential to be

used in food, energy and other industries.

(Continued on next page)



Crops & Grains

Tapioca flour and exports growth areas (Contd) He is confident Thailand's exports of tapioca

products will exceed THB 100 bio over the next

five years. Currently, there is more investment in

tapioca flour factories to supply major customers

in China and India. Tapioca is a key economic

crop for the country, creating jobs and income for

more than 500 000 families, with plantation areas

of about 6.5 mio to 7 mio rai.

Casava Balance Sheet

Supply and Demand (mio t)

2009-10

2010-11

1st Survey

2010-11

2nd

Survey

Supply 31.7 24.9 21.9

Demand 28.8 23.7 21.0

Starch 15.8 13.5 12.3

Chips &

Pellets

11.3 8.5 7.0

Ethanol 1.7 1.7 1.7

Carry out 2.9 1.2 0.9

Thailand harvests approximately 20-25 mio t of

cassava roots each year, 75% of which are

processed for export. Last year, the country

shipped 7.27 mio t of all types of tapioca products

worth USD 2.15 bio (THB 68.3 bio).

Seree Denworalak, President of the Thai Tapioca

Traders Association, said tapioca exports this year

were projected at THB 73 bio, of which

THB 44 bio would be tapioca flour.

However, the figures may change after a survey

on cassava root production in September. (bangkokpost.com 29 June 2011)

Humphrey Feeds weekly feed report Ethanol reached a 3 year high yesterday on fears

of accelerating demand against a backdrop of

limited maize supplies worsened by enduring hot

weather in the cornbelt. Similarly wheat exports

were increased by 100mb. This USDA report

combined with a hot weather forecast stimulated

fund buying--- but this was tempered by events in

the EU. In the near term, the USDA‘s reputation

is suspect, so weather will be the biggest

influence on the markets. In the EU Strategie

Grains believe that rain boosted EU grain

production by 6.6t to 282t, with wheat put at 130t,

almost 3mt more than last year. November UK

wheat traded +/-GBP 5 around GBP 163 this

week.

Russia is a very cost-competitive wheat exporter

at approximately USD 30-100/t below anyone

else, and has recently sold 150kt to Jordan and

180kt to Egypt. The Russian wheat harvest

(June/July) is looking good and grain estimates

have increased to 87-92t after timely rain

(previously 82-86t, and only 61mt last year due to

drought), of which 55-58t is wheat. They are

expected to export 17mt.

The three key worries this year have been the

EU zone sovereign debt issue, a stuttering

US economic recovery, and a slowing Chinese

economy. ‘Contagion‘ was the financial

EU buzz word this week.




Crops & Grains

Humphrey Feeds weekly feed report (Contd)

The trade believes that China has already

imported 5t of maize this year; which is only

10 days consumption! China expects to harvest a

record 181t of maize this year, and has sold

almost 31t of maize from government stocks since

January 2010, so it is not inconceivable that it

may still need to buy 10-15t to replenish its stores.

Goldman Sachs believes in the short term US

maize prices will outperform soya due to the low

carry-out, but longer term believes soya has more

profit potential than cereals.

Spot GM soya is about GBP 290 delivered to the

mill, and GBP 32/t more for non-GM.

(farminguk.com 17 July 2011)

Tight corn stocks to fuel scrutiny of ethanol use

The tightness of corn supplies is likely to heighten

the backlash against the use of the grain by

ethanol plants, which are for the first time in

2011-12 set to consume more of the crop in the

US than livestock farmers.

Ethanol producers scored two political

concessions in the last six months, the first

financial, when they won the extension this year

of tax perks for blenders, and a tariff hurdle

against imports.


Tight corn stocks to fuel scrutiny of ethanol use (Contd) The second was an image enhancement, in

winning a change of wording to US Department

of Agriculture accounting of the industry, to note

in its publications the distillers' grains livestock

feed produced as a byproduct of ethanol

manufacture, besides just the biofuel itself.

"There has been no small amount of wailing,

name calling and political wrangling over the way

that the USDA accounts, or does not account, for

distillers' grains in the feed supply," a report from

livestock experts Steve Meyer and Len Steiner

said.

"Many of these politicians have accused those

who oppose government subsidised and mandated

ethanol of simply ignoring distillers' grains, which

have been touted as a wonderful 'contribution'

from the ethanol sector."

'Going to hot up' However, the industry may be forced to renew its

defence of itself after the USDA last week made

substantial cuts to its estimate for domestic, and

world, corn inventories, forecasting domestic

stocks would end 2011-12 at a historically weak

level for a second successive season.

"Never in history have we had such tightness in

supplies in back to back years," Don Roose,

President of US Commodities, told

Agrimoney.com.




Crops & Grains

Tight corn stocks to fuel scrutiny of ethanol use (Contd) "It looks like corn prices are going to stay high for

another year. The food versus fuel debate is going

to hot up." The comments came ahead of a vote in

the US Senate on ethanol subsidies in what could

be the first step on their elimination.

"The House of Representatives is not expected to

address the issue in the next couple of months,"

Brian Henry at Benson Quinn Commodities said.

Decline in oats

The Meyer and Steiner report said that while

distillers' grains had filled some of the gap

presented by diverting corn from feed use to

ethanol production, "the trade is still three pounds

of corn for one pound of distillers' grains".

The total of corn and distillers' grains has actually

been trending downward slightly.

Tom Elam of FarmEcon added that the picture on

feed supplies appeared even more distorted by

ethanol when considering a dash by farmers to

corn from the likes of barley, oats and sorghum.

"Corn acres have grown at the expense of the

other three feedgrains," Dr Elam said, with

production of the three grains more than halving

between 1990 and 2010.

The US oats harvest shrank by nearly

three quarters.


Tight corn stocks to fuel scrutiny of ethanol use (Contd)

Ethanol plants vs livestock farms

The USDA last week, in its latest Wasde report on

world crop supply and demand, pegged the

domestic corn harvest this year at 13.2 bio

bushels, 305m bushels lower than previously

expected.

Inventories will end 2011-12 at 695 mio bushels,

a downgrade of 205 mio bushels, with the cut in

production in part offset by a lower forecast for

feed use, to 5.0 bio bushels.

The revision left consumption of corn by ethanol

plants, at 5.05 bio bushels, set to exceed that of

use in livestock feed for the first time.

However, Mr Roose added that, longer term,

livestock farmers may regain their advantage, as

the bioethanol industry switches to the next

generation of feedstock, such as waste cellulose

matter, and with biofuel subsidies expected to be

withdrawn. (agrimoney.com 14 June 2011)

Food: Deal Will Help Build a Better Cassava

A roundabout deal for a tiny snippet of DNA that

will help build a better cassava was announced

recently by the Dow Chemical Company and the

Donald Danforth Plant Science Center in

St. Louis.

Cassava is an important food crop eaten by

800 mio people in Africa, Asia and Latin America

(it is also called manioc, tapioca and yuca). It is

prone to many diseases, but little research is done

on them because cassava is a poor people‘s crop.


http://www.danforthcenter.org/











Crops & Grains

Food: Deal Will Help Build a Better Cassava (Contd)

The promoter DNA doesn‘t assemble proteins,

but signals other genes to do so, he explained. The

Danforth Center is isolating genes that make

cassavas resistant to mosaic and brown streak

disease, and it needs this promoter to make them

work.

Dr. Fauquet‘s team originally found the 35 S

promoter in a cassava virus 15 years ago, when he

was at the Scripps Research Institute in

California. Scripps licensed it to Dow

AgroSciences in return for royalties, because it

works in many plants, including transgenic

soybeans and beets. Now that Danforth, a

nonprofit institute, has resistant cassavas ready for

production, Dow has granted a royalty-free

sublicense. (.nytimes.com 27 July 2011)

Corn used for ethanol increased, sorghum decreased

Projected corn use for ethanol is raised

100 mio bushels for 2011/12 and 50 mio for

2010/11. Continued expansion in the ethanol

sector as reported by Energy Department weekly

data for recent months, favorable margins for

refiners, and long-term trends in fuel consumption

resulted in the increase to 5 150 mio bushels in

2011/12 and 5 050 mio in 2010/11.


Corn used for ethanol increased, sorghum decreased (Contd) Sorghum food, seed, and industrial use is lowered

5 mio bushels for 2011/12, with this month‘s

25 mio bushel reduction in projected supplies and

likely sharp production declines in the Southern

Plains, due to the ongoing drought.

Projected food, seed, and industrial use of corn for

2011/12 advance 95 mio bushels, with increases

in corn for ethanol partly offset by lower expected

use for HFCS, reflecting slower shipments to

Mexico.

For 2010/11, food, seed and industrial use

increases 30 mio bushels as corn use for starch

and HFCS is reduced 20 mio bushels, partly

offsetting the higher projected corn use for

ethanol.

Corn export projections for 2011/12 are increased

to reflect increased demand from China.

Projections of sorghum exports are lowered 5 mio

bushels to reflect tighter supplies. For 2010/11,

corn exports are lowered 25 mio bushels to reflect

slower shipments in recent months.

(cattlenetwork.com 16 July 2011)

Brazilian cane harvest improves, ethanol production surges

In Brazil, UNICA reports that the volume of

sugarcane processed by mills in the South-Central

region of Brazil totaled 40.39 mio t in the first

half of July, an increase of 2.34% compared to the

same period a year ago.

Total crushing from the beginning of the harvest

to July 16 reached 217.40 mio t, down 14.81%

from 255.19 mio t processed over the same period

in the previous harvest.


http://www.scripps.edu/





http://www.nytimes.com/2011/07/26/health/26global.html?_r=1




http://biofuelsdigest.com/bdigest/2011/07/28/brazilian-cane-harvest-improves-ethanol-production-surges/















Crops & Grains

Starch & Derivatives

Brazilian cane harvest improves, ethanol production surges (Contd)

Despite a drop of almost 40 mio t in the amount

of crushed cane since the harvest began compared

to last year, anhydrous ethanol production by

July 16 checked in with an increase of 14.32%,

for a total of 3.16 bio liters against 2.77 bio liters

produced in last year‘s harvest over the same

period. (biofuelsdigest.com 28 July 2011)

Microfluidization for cassava starch modification

Researchers at National Nanotechnology Center

(NANOTEC) in Thailand have discovered that

using microfluidization has an effect on the

structure and thermal properties of cassava

starch-water suspension (20% w/w). "This is the

first time that anyone has ever used

microfluidization for cassava starch modification"

said Dr. Kittiwut Kasemwong, researcher at

NANOTEC Nano-Delivery Lab.

"After using the microfluidization treatment, we

noticed bigger starch granule was partially

gelatinized, and a gel like structure was formed on

a granular surface. Our investigation indicates that

high-pressure microfluidization process induce

the gelatinization process which is crucial for

granule swelling and water access".

Dr. Kittiwut Kasemwong says this discovery has

many application potentials in the food and drug

industry. According to the Thai Board of

Investment (BOI), the Thai food industry

generates about USD 15 bio dollars annually and

comprises about 30% of GDP.

As for the drug industry, it is estimated that by

2016, Thailand will have the seventh largest

pharmaceutical market in the Asia Pacific region.

Collaborators on this investigation included

researchers from Srinakharinwirot University and

Kasetsart University. (nanowerk.com 08 July

2011)

Sugar, starch boost lifts Agrana to four-year high

Shares in Agrana touched their highest for nearly

four years after "strong" starch and sugar markets

helped the group to better-than-expected profits,

and prompted it to raise hopes for future results.

The ethanol-to-ingredients company, the world's

top manufacturer of fruit preparations, said that

underlying operating profits soared 82% to E62m

in the March-to-May quarter.

Revenues had soared 13.3% to E613m, rising at

twice the pace that analysts had expected. Agrana

shares rose 3.2% to E82.50 in Vienna, their

highest since July 2007.

The Austria-based group said that its

"exceptionally positive earnings development" in

the latest quarter reflected growth in all three of

its divisions - fruit, starch and sugar. However, it

highlighted "favourable market conditions" in the

sugar and starch markets. High international sugar

prices have eliminated Europe's status as a

premium market for exporters, diverting supplies

elsewhere and prompting a shortage in the region.

The European Commission last month agreed

plans for 200kt of zero-duty sugar imports, in

addition to 300kt approved earlier in the year.

Starch prices have been supported by a

disappointing European harvest last year of

potatoes and a shortage of tapioca-based product

from Asia, while high grain prices have lifted the

cost of corn-based alternatives. (agrimoney.com

22 June 2011)

GIRACT 2

nd Starch Forum

Based on the success of our first Starch

Forum, one of its kind in India, we

propose to launch the 2nd Starch Forum

to be held on October 3, 2011 in

Mumbai. Details on the following page.














http://www.nanowerk.com/news/newsid=22039.php



FORUM, India(venue to be announced)

MUMBAI, OCTOBER 3, 201118h15 to 20h00

GIRACT CONSULTANCIES INDIA PRIVATE LIMITED Tel: 91 422 420 4270

1420, Trichy Road, Coimbatore 641018 [email protected]

Note: It may be necessary for reasons beyond the control of the organisers to alter the content and/or timing of the agenda

Transnational Business Research & Consultancy

GIRACT

AGENDA

18h15 Registration/ Refreshments

18h25 Welcome and opening remarks R. Badrinath, Project Manager

GIRACT Consultancies India Pvt Ltd

18h30 Introduction

V. Krishnakumar, Managing Director

GIRACT, Geneva, Switzerland

18h40 Sustainability in the supply of starch

Speaker from a leading Pharmaceutical/Paper company

19h05 Recent amendments in FSSAI on modified starch

Speaker from FSSAI

19h30 Global trend in modified starch Industry

Speaker from a leading European/Asian starch company

19h55 Summing up and Conclusion

20h00 Buffet dinner and Networking

Geneva, Switzerland

The starch industry has faced numerous challenges and opportunities from other commodities like

emulsifiers and fine chemicals. Based on the success of our first Starch Forum, one of its kind in India,

we aim to bring together a working group from the starch industry (end users, suppliers, distributors,

R&D institutions, Government organizations and analysts) with paper and pharma being one of the

frontiers for growth in India, in order to:

offer an interactive forum for identifying common opportunities and threats in paper and pharma

discuss recent industry developments and their future, with particular focus on the potential for starch

obtain relevant views from eminent speakers from India and other major starch stake holders.

GIRACT has more than 30 years experience in

conducting landmark studies for the global starch

and derivatives market and is recognized as a

leading reference in this sector.

Its nine Starch Conferences held successfully in

Geneva, Switzerland have brought together all the major companies in the industry.

2ND STARCH FORUMINDIAN STARCH & STARCH DERIVATIVES INDUSTRY

UNLEASHING THE POTENTIAL



Company News

Roquette Announces the Completion of its New Injectable Carbohydrate Plant The paradox for carbohydrate producers is that

these highly specialized and regulated ingredients

are small scale when compared to the wider

portfolio of products from the starch biorefinery

industry and organic growth is limited.

Carbohydrates for injectable use are highly

controlled pharmaceutical active ingredients that

are essential in the preparation of large volume

parenterals. These crucial lifesaving medicines are

taken for granted in all public health organisations

and institutions.

The large volume injectable solutions prepared

with these carbohydrates, mainly glucose

solutions, are the sort of mass medication that is

expected to be available everywhere and always

of the highest quality. Poor quality or supply

chain issues can lead to critical situations, which

might endanger lives. The paradox for

carbohydrate producers is that these highly

specialized and regulated ingredients are small

scale when compared to the wider portfolio of

products from the starch biorefinery industry and

organic growth is limited. This is further

compounded by health suppliers, hospitals and

clinics regarding them as commodities and as

such a preferred target for price reductions.

Roquette is pioneering pyrogen-free dextrose over

many decades. Such a niche market is a

challenging environment for investment. Roquette

however, decided to proceed with the investment

as part of its long term strategy to remain a

responsible supplier in this demanding field.


Roquette Announces the Completion of its New Injectable Carbohydrate Plant (Contd) In fact, Roquette has pioneered the development

of dextrose grades for the preparation of

injectable and dialysis solutions over many

decades and is the leader in the manufacturing of

such carbohydrates in Europe. This leadership

position comes with a sense of corporate

responsibility to ensure the continuity of these

vital products and this in turn has lead to

continuous investment and an identical facility in

the USA for international supply backup options.

The completion of the most recent investment

phase at Lestrem on its injectable carbohydrate

facility has just been announced. This major

capital investment which was approved in 2008

will support the increasingly sophisticated

demands of the injectable industry in terms of

quality. The facility will be of GMP standard, as

the previous one, so that the integration into

current production capacity will be seamless

though 2011.

Such a major investment is a showcase for

Roquette not only in terms of its manufacturing

and engineering expertise but also of its

understanding of the high quality required and

proactive knowledge of changing European

regulations to meet long term demand for these

life saving medicines.

Schweppes, ZIA, ethanol plant, Hwange Colliery Company Schweppes Zimbabwe Limited plans to

commission a USD12.5 mio juice production line

at its Harare plant by December this year, a move

that would boost its production capacity




Company News

Bio-Fuels

Schweppes, ZIA, ethanol plant, Hwange Colliery Company (Contd)

Speaking on the sidelines of the signing of the

Competition Compliance Programme and

Agreement with the Competition and Tariff

Commission, Schweppes Zimbabwe Limited

Managing Director Charles Msipa said the

production line would increase the company‘s

production lines from the current three to

four. ―We have ordered a new production line and

civil works have already started. The new line of

production is expected in the country in

September this year while operations will

commence in 2012,‖ said Msipa. Schweppes

becomes the first company in Zimbabwe to sign a

voluntary competition compliance agreement with

the CTC - The Herald.

Zimbabwe Investment Authority

The Zimbabwe Investment Authority has

approved 75 projects with a projected value of

USD 906 mio in the first 5 months of the year.

This compares with 72 projects with a value of

USD 104 mio in 2010, reflecting an 88.49%

increase in value terms. – NewsDay

Zimbabwean ethanol plant

The first phase of the USD 600 mio ethanol plant

in Chisumbanje is expected to be operational in

the next 60 days with a production capacity of

40 mio litres of fuel expected by December this

year. The project is a joint venture between

government through Agriculture Rural

Development Authority and a private company -

Green Fuel Private Limited. ARDA chairman

Basil Nyabadza, said the required equipment to

finish the plant had arrived in the country from

Brazil. – The Herald.

Hwange Colliery

Hwange Colliery Company has clinched a

USD 3.6 mio coking coal export deal with India

as part of the company‘s export drive.


Schweppes, ZIA, ethanol plant, Hwange Colliery Company (Contd) Under the deal the first consignment of about 20kt

of coking coal is expected to be dispatched from

Hwange to India before the end of the month.

HCC said this would be the first ever consignment

of coal to be moved by a Zimbabwean company

to the Asian country targeting its vast

steel-making industry. (zddt.org 15 June 2011)

Bowyer champions the increased use of ethanol in gasoline

NASCAR‘s Clint Bowyer feels your pain at the

gas pump, too. With gas prices nearing

USD 4 a gallon, it gets expensive even for Sprint

Cup drivers to fill their tanks, and Bowyer, hopes

to champion the use of ethanol-blended fuel

during the STP 400 at Kansas Speedway.

This year, for the first time, all three of

NASCAR‘s top three series — Sprint Cup,

Nationwide and Camping World Trucks — are

running Sunoco Green E-15 fuel, a cleaner and

green alternative fuel component.

Bowyer, of Emporia, will carry the black, silver

and green colors of American Ethanol, led by

NASCAR partner Growth Energy, on his No. 33

Chevrolet this weekend.

The wall at Kansas Speedway has been painted

green between turns two and three for the

weekend races to draw attention to the use of

ethanol, which is produced by corn farmers in the

Midwest. In fact, about 1 100 corn farmers will be

at Kansas Speedway to support Bowyer.

―I don‘t know if you‘ve seen the price of fuel

lately, but this whole country needs to be paying

attention to this ethanol thing, because it‘s a good

way to create independence from foreign oil,‖

Bowyer said.


http://www.zddt.org/zimbabwe-economy-0614.html





Bio-Fuels

Bowyer champions the increased use of ethanol in gasoline (Contd) Ethanol is the most commercially viable

alternative that America currently has to offset the

economic impact of foreign petroleum. Corn

ethanol reduces emissions by 59%, and cellulosic

ethanol is at least 86% cleaner. By strengthening

America‘s energy independence, ethanol helps

create American jobs. Studies have shown that for

every USD 1 sent overseas for oil, USD 1.55

leaves the U.S. economy.

―The ethanol is cutting emissions more than 50%

already in these cars,‖ Bowyer said, ―and if you

imagine if every car in America had that, not only

could we control fuel prices, but we can control

the emissions we‘re putting in the atmosphere.

―Born and raised in the Midwest that‘s right in

heart of where this corn is grown, so it‘s only

fitting we‘re doing this at Kansas Speedway.‖

E-15 is not available at the corner gas station, but

many pumps have up to 10% ethanol, said

Mike Lynch, Managing Director of green

innovation for NASCAR, and there‘s a movement

to increase that limit to 15% in your car.

―This is to raise awareness and provide a platform

for fact-based dialogue around American

Ethanol,‖ Lynch said of Bowyer‘s relationship

with the corn growers. Lynch said consumers who

want to try E-15 need to contact their

congressmen or senators and gas retailers.

―That would be big,‖ he said. ―We‘ve gotten

close, including that (second-place) to (Greg)

Biffle in 2007. We ran well the first couple races

there, but we‘ve struggled here as of late. It‘s an

important track for me and it would be a hell of a

party, I can promise you that.‖ (kansascity.com

02 June 2011)

Iowa Ethanol Factory to Begin Converting Corn Waste Into Motor Fuel

An Emmetsburg, Iowa, pilot plant is on track to

becoming America's first commercial-scale

facility to create ethanol motor fuel out of corn

waste. Currently the facility produces ethanol

from edible corn by processing one ton of plant

matter every day.

However, after its expansion is complete it will

produce ethanol out of non-edible corn

components (e.g., corncobs, leaves and husks) and

overcome technical challenges to process 700 t

every day.

In the future, company officials believe the

project will displace over 13.5 mio gallons of

gasoline each year. If producing ethanol from

corn waste proves to be a profitable endeavor, it

would decrease the use of edible corn to make this

motor fuel and increase supplies of edible corn.

―Our ultimate target is to be competitive with corn

ethanol and gasoline,‖ said Jeff Lautt, president of

Poet LLC, the company building the

ground breaking facility. Based in Souix Falls,

SD, Poet is the world's largest ethanol producer.

The project is funded by a USD 105 mio loan

guarantee from the U.S. Department of Energy.

(areadevelopment.com 12 July 2011)

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http://www.kansascity.com/2011/06/01/2920356/bowyer-champions-the-increased.html



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Bio-Fuels

USDA to help fund planting crops for biofuel

The U.S. Department of Agriculture announced

plans to help fund the planting of crops in six

states that will be used exclusively for biofuels

such as cellulosic ethanol. USDA Secretary

Tom Vilsack said the department will be

dispersing to help pay USD 45 mio for the crops

marks the second time it is using its Biomass

Crop Assistance Program, or BCAP, and it may

be the last because of budget cuts being

considered by Congress for fiscal year 2012.

The money in this second round of BCAP funding

will be going to companies like Beaver Biodiesel

LLC and AltAir Fuels LLC, which will be

planting and harvesting 51 000 acres of the

oilseed camelina in California, Montana,

Washington and Oregon. Camelina, Vilsack said,

has proven to be a good crop for making jet fuel.

Abengoa Biofuels will also get money from the

program to plant and grow 20 000 acres of

switchgrass in Kansas and Oklahoma.

Switchgrass, like camelina, can be grown

successfully on "marginally productive" land that

isn't suitable for traditional crops like corn or

soybeans.

All of the ethanol now produced on a commercial

scale in the U.S. is corn-based ethanol, and critics

say the fuel makes food production, especially

meat, more expensive by diverting more than a

third of all corn grown to the fuel. The ethanol

industry is now expected to consume 5.15 bio

bushels of corn produced in the 2011-12 crop

year, which begins September 1st. The

government's ethanol mandates, which began five

years ago and triggered a rapid expansion of the

ethanol industry, require gasoline retailers to use

12.6 bio gallons of corn-derived ethanol this year.

The mandate grows to 15 bio gallons in 2015 for

corn-derived ethanol.


USDA to help fund planting crops for biofuel (Contd)

Corn-based ethanol is expected to continue to

exceed those levels because it remains cheaper

than gasoline, but production of cellulose biofuel,

made from switchgrass, wood chips or other

feedstocks, has lagged.

Growth in cellulosic based ethanol, considered a

second-generation biofuel, hasn't been as swift as

the government would like. Some is being

produced in pilot programs, but there is no

production on a commercial scale.

The Environmental Protection Agency said it was

proposing to lower the requirement for

cellulose based biofuel production next year to

between 3.45 mio gallons and 12.9 mio gallons,

down from 500 mio gallons. The Department of

Energy, though, is trying to help jumpstart the

cellulosic ethanol industry by helping finance the

first-ever commercial scale production plant in

Emmetsburg, Iowa.

Earlier this month Energy Secretary Steven Chu

said the agency is offering a USD 105 mio loan

guarantee to help POET LLC, the largest U.S.

ethanol company, build a plant that makes fuel

from waste from corn farms--husks, leaves and

corncobs--instead of the corn itself.

"The Obama administration is committed to

providing financial opportunities to rural

communities, farmers and ranchers to produce

biomass, which will be converted to renewable

fuels and increase America's energy

independence," Vilsack said. "The selection of

these project areas is another step in the effort to

assist the nation's advanced biofuel industry

produce energy in commercial quantities from

sustainable rural resources. This effort will create

jobs and stimulate rural economies across the

nation." (cattlenetwork.com 27 July 2011)



Bio-Fuels

Genencor launches enzyme product to advance biofuel production

Genencor today announced a product

advancement, Accellerase® TRIO. This new

product will enable biofuel producers to more

cost-effectively manufacture cellulosic ethanol

from a wide range of renewable nonfood

feedstocks such as switchgrass, wheat straw and

corn stover as well as from municipal solid waste

"Second-generation biofuels offer important

energy security, as well as economic and

environmental benefits to countries such as the

United States, China, India and European nations

that import a majority of their oil," said Genencor

CEO Tjerk de Ruiter. "Accellerase TRIO can

accelerate the commercial production of cellulosic

biofuels in markets across the world, helping

many countries and companies find a more

sustainable alternative to petroleum."

Accellerase® TRIO allows for a low enzyme

dosage to produce ethanol, helping to improve the

economics of cellulosic biofuel production.

Genencor has improved the effectiveness of

converting biomass into sugars, a critical step in

the production of cellulosic ethanol. With

Accellerase® TRIO, Genencor provides a

combined "cocktail" of enzymes all in one

product to breakdown the glucan (C6) and xylan

(C5) in the biomass feedstock into fermentable

sugars, thus increasing the ethanol yield per unit

of feedstock.

Ethanol producers will discover other benefits.

Accellerase TRIO works with a wide variety of

renewable feedstocks, allowing producers to

select nonfood crops and municipal solid waste

that are abundant in their region to convert to

ethanol or biochemicals.


Genencor launches enzyme product to advance biofuel production (Contd)

In addition, Accellerase® TRIO can help boost

total production by lowering viscosity and

enabling producers to process more biomass.

Accellerase® TRIO is the latest advancement in

Genencor‘s award-winning Accellerase product

line that earned the "Frost & Sullivan 2009 New

Product Innovation Award" for enzymes for

biofuel production and also this year‘s

"Sustainable Technology Award" at the World

Biofuels Market conference in Rotterdam, the

Netherlands.

Genencor‘s mission is to have a significant impact

on the sustainability of every household globally

– and its development of biobased enzymes for

second-generation biofuels helps create a more

sustainable future.

According to the U.S.Department of Energy and

the Center for Transportation Research, cellulosic

biofuels have the potential to reduce greenhouse

gas emissions up to 86% over gasoline.

While still in the early stages of development,

cellulosic ethanol is expected to play a crucial role

in providing transportation fuel in many parts of

the world.

In the U.S., Congress has set a goal of 36 bio

gallons of renewable fuel to be produced by 2022,

with much of that amount coming from second-

generation ethanol.




Bio-Fuels

Genencor launches enzyme product to advance biofuel production (Contd)

Europe is requiring that 10% of all road

transportation fuels come from biofuels by 2020,

a mandate that focuses on next-generation

technologies. China‘s 12th Five-year Plan places

great emphasis on the investment and research of

the country‘s ethanol fuel and reducing

greenhouse gas emissions through cleaner fuels.

Genencor has a 25-year history in biofuels

research and development. In 2007, Genencor was

the first company to launch a commercial-scale

enzyme for cellulosic ethanol production,

Accellerase® 1 000, and later the company

introduced Accellerase 1 500 and Accellerase

DUET. (farminguk.com 22 June 2011)

ABF eases cloud over Europe's wheat ethanol sector

Associated British Foods eased the clouds over

Europe's wheat ethanol industry by saying that the

Vivergo plant will open next year, despite the

mothballing of a rival site because of high wheat

prices.

"Following delays caused by contractor

performance issues, construction activity has

recommenced at Vivergo," ABF said, adding that

the "project is expected to complete in spring

2012".

The data is in range of ABF's last estimate, in

April, of completion "early in 2012", and eases

fears among many observers that opening of the

plant, which will take 1.1 mio t of grain a year,

was to be pushed back until lower grain costs

improved the economics of making ethanol from

wheat.


ABF eases cloud over Europe's wheat ethanol sector (Contd)

The plant, which is also being backed by BP and

DuPont, is being built in the north of England,

close to the Ensus site which has been temporarily

shut because of strong grain prices and tough

competition from US exports. Ironically, US corn

ethanol plants are enjoying their strongest margins

since 2009, Morgan Stanley said last week.

'Strong' in agriculture ABF's statement came as it said it remained on

track to deliver flat earnings this financial year,

despite pressures from rising cotton prices at its

Primark clothes retailing operation. The group's

agriculture division, which includes the Frontier

grain merchant part-owned by Cargill, was

"having another strong year", with revenues up

17% so far this financial year.

"UK feed revenues were ahead in all sectors in the

quarter reflecting higher commodity prices for

grain."

Sweeter hopes

In sugar, while revenues had fallen by 6%, year

on year, in the latest four-month period, reflecting

the absence of UK exports following a cold-hurt

beet harvest, a better performance in Spain and

"sharply" higher revenues in China reassured

investors.




Bio-Fuels

ABF eases cloud over Europe's wheat ethanol sector (Contd)

Panmure Gordon termed ABF's remarks on sugar

"positive", raising its divisional forecast for the

division and raising its outlook on ABF shares to

"buy" from "hold", and its price target for the

stock to 1200p from 1155p. "With fiscal 2011

essentially done, our attention now turns to 2012,

and even allowing for our more cautious outlook

on grocery and ingredients divisions, we are

raising our earnings per share forecast by 2.5% on

a more positive view on sugar," the broker said.

Equity analysts at Standard & Poor's also raised

their price target for ABF shares, to 1160p from

1030p. (agrimoney.com 14 July 2011)

Süd-Chemie breaks ground on German wheat straw-to-ethanol plant

German-based international specialty chemicals

company Süd-Chemie AG held a groundbreaking

July 26 for a 1kt/year, demonstration scale

cellulosic ethanol plant in Straubing, located in

the Lower Bavaria region. The plant, which is

expected begin production by the end of the year,

will convert wheat straw collected from area

farmers to ethanol using Süd-Chemie‘s

trademarked sunliquid process. The company said

the demonstration plant will be the largest ag

waste-to-ethanol plant in Germany when

complete.

The sunliquid process is a biotechnological

process that utilizes specially developed enzymes

to dissolve the cellulose and hemicelluloses into

sugar monomers in high yields, said Yvonne

Söltl, strategic marketing and communications

manager for Süd-Chemie‘s corporate research and

development department. The process then uses

specialized yeasts developed by Süd-Chemie to

simultaneously convert the C5 and C6 sugars to

ethanol in a ―one-pot reaction,‖ which increases

ethanol yields by up to 50%.


Süd-Chemie breaks ground on German wheat straw-to-ethanol plant (Contd)

Lignin produced from the process will be used to

provide power for the facility. ―In addition, a new

and proprietary downstream processing

technology developed by Süd-Chemie saves up to

50% energy during ethanol separation compared

to standard distillation,‖ Söltl said. ―Hence, the

sunliquid process is almost energy neutral,

resulting in cellulosic ethanol with CO2 emission

savings of 95%.‖

The sunliquid process has been tested at the

company‘s pilot plant for two years. The

demonstration project will further prove the

efficiency improvement capabilities and

cost effectiveness of the process, the company

stated. About GBP 16 mio (USD 22 mio) has

been invested in the project, with an additional

GBP 12 mio invested in accompanying research.

Government financial support has been minimal.

The Bavarian state government and the German

Federal Ministry of Education and Research have

each provided approximately GBP 5 mio for

research efforts, according to Süd-Chemie. The

company declined to specifically peg its

production cost per gallon of cellulosic ethanol.

Söltl said the company plans to begin operating its

first 50kt/year commercial-scale ethanol plant by

2014. As with other first-of-a-kind cellulosic

ethanol plants, the cost to build the first facility

will be substantial and Söltl said political support

will be vital to creating a secure environment for

investors. At the ground-breaking ceremony,

German Federal Minister of Education and

Research, Annette Schavan, indicated that the

German government is committed to assisting in

the build-out of cellulosic ethanol production

capacity. ―Stepping up the replacement of scarce

crude oil stocks with renewable raw materials is a

stated aim of the national research strategy

Bioeconomy 2030,‖ she said. (Continued on next

page)



Bio-Fuels

Süd-Chemie breaks ground on German wheat straw-to-ethanol plant (Contd)

―This is why we are funding the development of

biorefineries that can produce valuable chemical

raw materials or biofuel from agricultural waste

products and by-products such as straw.‖

Schavan said GBP 2.4 bio will be available over

the next six years for bioeconomy research

strategy projects, which could include the

sustainable production and conversion of biomass

to food, health, fiber and industrial products and

energy.

―Stepping up the replacement of scarce crude oil

stocks with renewable raw materials is a stated

aim of the national research strategy Bioeconomy

2030,‖ she said. ―This is why we are funding the

development of biorefineries that can produce

valuable chemical raw materials or biofuel from

agricultural waste products and by-products such

as straw.‖

Schavan said GBP 2.4 bio will be available over

the next six years for bioeconomy research

strategy projects, which could include the

sustainable production and conversion of biomass

to food, health, fiber and industrial products and

energy. (ethanolproducer.com 27 July 2011)

Petrobras Expands In Biofuel World

Brazilian state-run energy firm Petroleo Brasileiro

S.A. or Petrobras (NYSE:PBR) acquired a 50%

stake in a local biodiesel company BSBIOS

Industria e Comercio de Biodiesel Sul Brasil S.A.

for 200 mio Brazilian reals or USD 128.4 mio.

Petrobras executed the deal through its subsidiary

Petrobras Biocombustível S.A.

Located at Passo Fundo, the acquired company

owns a biodiesel facility which is integrated with

a vegetable oil extraction unit and has an annual

production capacity of 42 mio gallons of fuel.


Petrobras Expands In Biofuel World (Contd)

The unit is well connected by railroad terminals

and a distribution base for smooth delivery and

marketing of biodiesel.

This acquisition strengthens Petrobras‘ position in

the domestic biofuels market and takes it a step

closer to its target of doubling biofuels output by

2014. The company intends to spend USD 3.5 bio

through 2014 to boost biofuels production to

750 000 cu m in 2014, up from 500 000 cu m at

the end of 2010.

Headquartered in Rio de Janeiro, Petrobras is

involved in exploration, exploitation and

production of oil from reservoir wells, shale and

other rocks, in refining, processing, trade and

transport of oil and oil products, natural gas and

other fluid hydrocarbons, in addition to other

energy-related activities.

We believe that consistent demand growth in

Brazil, along with the new investments and

acquisitions, will fuel Petrobras‘ medium-term

earnings outlook.

Additionally, we expect the company to benefit

from its proficiency in alternative energy

resources application, recent major discoveries

and the growing domestic refined products

market.


http://www.ethanolproducer.com/articles/8020/sud-chemie-breaks-ground-on-german-wheat-straw-to-ethanol-plant




Starch Italics Starch Industry overview

Bio-Fuels

Petrobras Expands In Biofuel World (Contd)

However, we maintain a long-term Neutral rating,

considering the volatile macro backdrop, project

cost overruns and operational hindrances.

Petrobras faces strong competition from its peers

such as ExxonMobil Corporation and Royal

Dutch Shell plc (dailymarkets.com 06 July 2011)

European Commission approves first sustainability schemes for biofuels The European Commission approved new

sustainability schemes that will ensure biofuels

production and supply for its member states.

The European Commission recognized seven

voluntary schemes, which are the International

Sustainability and Carbon Certification, Bonsucro

E.U., Round Table on Responsible Soy E.U.

RED, Roundtable of Sustainable Biofuels E.U.

RED, Biomass Biofuels voluntary scheme,

Abengoa RED Bioenergy Sustainability

Assurance, and the Greenergy Brazilian

Bioethanol verification programme

The recognition of the schemes will be applied to

the E.U.‘s 27 member states. The I.S.C.C. is a

scheme funded by the German government which

covers all types of biofuels. The Bonsucro E.U. is

Brazil‘s roundtable initiative for sugarcane-based

biofuels.

The R.T.R.S. E.U. RED is a scheme focusing on

Argentina and Brazil and is a roundtable initiative

for soy-based biofuels. The R.S.B. E.U. RED is a

roundtable initiative covering all types of

biofuels.

The 2BSvs is a scheme that covers all types of

biofuels in the French industry.


European Commission approves first sustainability schemes for biofuels (Contd)

The R.S.B.A. is an industry scheme for Abengoa

covering their supply chain of biofuel. Lastly,

Greenergy is the industry scheme covering sugar

cane ethanol from Brazil.

The different schemes have been thoroughly

checked by the commission and each gained

recognition for five years. The schemes will

verify where and how the biofuels are produced.

If the produced biofuel met the criteria of the

scheme, the latter will issue a certificate for the

product.

Commissioner for Energy Günther Oettinger said

that, "we need to make sure that the entire

biofuels' production and supply chain is

sustainable. This is why we have set the highest

sustainability standards in the world.‖

―The schemes recognized on the E.U. level are a

good example of a transparent and reliable system

which ensures that these high standards are met,‖

Mr. Oettinger added. Under the sustainability

schemes, biofuels used in the European Union,

whether these are locally produced or imported

from other nations, will have to comply with

certain standards or criteria. The criteria aim to

prevent conversion of areas of high biodiversity

and high carbon stock for the production of raw

materials for biofuels

First, biofuels produced from crops that have been

grown on land that used to be rainforest or natural

grassland cannot be considered as sustainable, as

the biofuel is not capable of being maintained at a

steady level without exhausting natural resources

or causing severe ecological damage to the

forests.

Second, biofuel production processes need to

contain 35% less emissions than that of fossil fuel

production. (Continued on next page)

http://www.dailymarkets.com/stock/2011/07/05/petrobras-expands-in-biofuel-world/



http://www.ecoseed.org/news-briefs/article/42-news-briefs/10438-u-n-head-reiterates-the-need-for-greater-attention-for-sustainable-development



http://www.ecoseed.org/component/resource/article/26-other-industries/10459-policy-technology-keys-for-green-economy-%E2%80%93-chinese-experts



http://www.ecoseed.org/politics/laws-and-regulations/items/34-laws-regulations






http://www.ecoseed.org/news-briefs/article/42-news-briefs/10370-ban-ki-moon-to-push-goals-of-sustainable-development-in-finland-talks








Bio-Fuels

European Commission approves first sustainability schemes for biofuels (Contd)

By 2017, emissions should be less than 50%, and

by 2018, less than 60%.

The sustainability schemes will help the European

Union‘s goal to achieve a minimum share of 10%

renewable energy in transportation by 2020.

Biofuels are used to achieve the target. Bioenergy

companies can choose whether to demonstrate

compliance with these sustainability requirements

through national systems or by joining a voluntary

scheme which is recognized by the commission.

(ecoseed.org 21 July 2011)

Kansas gets another biofuels project

A project to grow switchgrass in Kansas and

Oklahoma is among four announced by the

Agriculture Department.

The project under the Biomass Crop Assistance

Program is sponsored by Abengoa Biofuels,

which has been designated to grow up to

20 000 acres of switch grass. The project area will

surround an Abengoa biomass conversion plant in

Hugoton, Kan.

Agriculture Secretary Tom Vilsack also

announced projects in California, Montana,

Oregon and Washington for the production of

renewable energy crops to make ethanol or other

liquid biofuels

A release from the Agriculture Department

estimated that the projects would create more than

3400 jobs in agriculture, biofuels and related

sectors and provide the crops to produce more

than 2 mio gallons of biofuels annually when full

production was achieved.


Kansas gets another biofuels project (Contd)

―The Obama Administration is committed to

providing financial opportunities to rural

communities, farmers and ranchers to produce

biomass which will be converted to renewable

fuels and increase America‘s energy

independence,‖ Vilsack in the release. ―The

selection of these project areas is another step in

the effort to assist the nation‘s advanced biofuel

industry produce energy in commercial quantities

from sustainable rural resources. This effort will

create jobs stimulate rural economies across the

nation.‖ (kansascity.com 26 July 2011)

Extension of ethanol tax credits would boost corn production

Extending federal ethanol tax credits would help

significantly boost corn production, a new study

from the University of Missouri finds. According

to a report released by MU's Food and

Agricultural Policy Research Institute,

indefinitely extending the 45-cent tax credit for

biofuel blenders and the associate 54-cent tariff

on ethanol imports would increase the domestic

production of ethanol from corn starch by

1.2 bio gallons/year. The increased fuel

production would use an additional 440 mio

bushels of corn.

Based on these findings, FAPRI predicts growing

area for corn would be expanded

by 1.7 mio acres, while soybean area would fall

by 800 000 acres. The ethanol tax credit and tariff

are set to expire at the end of the year


http://www.ecoseed.org/bioenergy-blog/article/9-bioenergy/10474-european-commission-approves-first-sustainability-schemes-for-biofuels



http://www.kansascity.com/2011/07/26/3037855/kansas-gets-another-biofuels-project.html





Bio-Fuels

Extension of ethanol tax credits would boost corn production (Contd)

Earlier this month, Missouri Senators

Claire McCaskill and Roy Blunt both voted

against a bill in the U.S. Senate that would have

brought an abrupt end to the ethanol tax credit.

Both senators said the system for subsidizing

biofuel blenders should be adjusted, but not

simply eliminated. (semissourian.com 28 June

2011)

Feature: Growing up and across

Ethanol is now a standard energy source in Brazil

and should be treated as such, meaning it must be

available 24 hours a day, 365 days a year.

It is also necessary to take the seasonal nature of

the feedstock (raw material) into account. This

demands both investments and control

mechanisms to ensure regular supplies

year-round.

The ethanol agenda has been discussed by

governments and business sectors with a focus on

expanding production and increasing supply to

meet Brazil‘s growing demand.

This growth is associated with years of work and

development on agricultural and industrial

technology beginning in 1975 when the Brazilian

government created its National Ethanol Program

(Proálcool).

Brazilian energy company Petrobras played a key

role in this process, providing a logistics and

marketing structure for ethanol and, more

recently, participating in production through the

2008 incorporation of a subsidiary dedicated

solely to biofuels, Petrobras Biocombustível.


Feature: Growing up and across (Contd)

The company is associated with sugar and ethanol

production groups such as Guarani (state of São

Paulo), Nova Fronteira Bioenergia (State of

Goiás), and Total Agroindústria Canavieira (state

of Minas Gerais) and currently holds stakes in

10 ethanol production plants, ranking third in the

industry in Brazil.

The combined 2010 capacity of Petrobras

Biocombustível and its associated companies was

24.5 mio t of sugarcane crushing capacity,

942 mio litres of ethanol production capacity, and

517 GWh of electricity generated from sugarcane

bagasse. (biofuels-news.com 29 June 2011) Farmers, ethanol makers likely OK without subsidy

If a USD 5 bio/year federal subsidy that helped

build the ethanol industry comes to an end, it will

likely mean two things, experts who have

followed its development say. First, it doesn‘t

guarantee an end to the high prices that corn

farmers have enjoyed and livestock producers and

other food manufacturers have endured.

That‘s because of the second point: the ethanol

industry likely would be fine without the subsidy

and keep using just about as much corn as it has

the past few years.

As the experts point out, the 45cent/gallon tax

credit set to expire at the end of the year doesn‘t

even go directly to ethanol producers, but instead

has been an incentive for oil companies like BP,

Valero Energy Corporation., and ExxonMobil

Corporation — known in the ethanol industry as

blenders — to buy ethanol and blend it with

gasoline. And the tax credit isn‘t even the primary

driver of ethanol demand. That, economists note,

has been the federal requirement that the country

produce an increasing amount of renewable fuels

like ethanol. (Continued on next page)

http://www.semissourian.com/story/1739761.html?response=no



http://www.biofuels-news.com/content_item_details.php?item_id=455







Bio-Fuels

Farmers, ethanol makers likely OK without subsidy (Contd) ―Bruce Babcock, an economist at Iowa State

University says ―The U.S. ethanol industry is very

competitive; they don‘t need the subsidy.‘‘

The U.S. Senate voted last week to end the tax

credit and an accompanying tariff on ethanol

imports in July, half a year ahead of schedule. The

move was mostly symbolic — Republicans

blocked the jobs bill it was part of — but it

showed that lawmakers may be ready to let the

subsidy die in December rather than renew it as

they did last year.

Ethanol producers and corn farmers had hoped to

preserve the tax credit, but now seem willing to

compromise.

Many in the ethanol industry now are pushing for

a smaller credit designed to encourage sales when

economic conditions dictate that ethanol

producers really need it, and money to pay for the

installation of gas pumps that would let drivers fill

up with fuel containing up to 85% ethanol--

Republican Sen, John Thune of South Dakota and

Democratic Sen.

Amy Klobuchar of Minnesota are sponsoring such

a compromise bill the industry favors. Both

senators are from states with thriving ethanol

industries.

―We think cooler heads will prevail and we‘ll get

something rational‘‘ from Congress, said Vincent

Kwasniewski, vice president of GTL Resources.

The company owns the Illinois River Energy

ethanol plant in Rochelle, Ill. ―We think we‘re in

a strong position to prosper under that kind of

legislative situation.‘‘


Farmers, ethanol makers likely OK without subsidy (Contd)

The tax credit, known as Volumetric Ethanol

Excise Tax Credit, or VEETC, was created in

2004 to help encourage the use of ethanol, most of

which in the United States is made of corn.

It gave oil companies financial incentive to buy

ethanol and blend it with their gasoline — using

more of the alternative fuel — at a time when

there was little financial incentive to do so. The

credit and the renewable fuels mandate — a

requirement that refiners use 12 bio gallons of

renewable fuels in 2011, 15 bio by 2015 and

36 bio by 2022 — have worked together to drive

up ethanol production. The U.S. produced

13.2 bio gallons of ethanol in 2010, up from

3.4 bio in 2004, according to the

Washington-based Renewable Fuels Association.

Last year, it took about one-third of the U.S. corn

crop to meet the ethanol demand. When coupled

with increased orders from livestock producers,

who rely on corn for feed, and growing exports to

China and elsewhere, the demand for corn has

soared and caused prices to reach historic highs.

Given that, corn farmers aren‘t sure what to think

about the latest development. If demand remains

strong, prices should remain high, but they‘re

uneasy about a dramatic change in federal policy.

―I guess I was hoping there would be a more

orderly reduction. Maybe a phase-down,‘‘ said

Greg Bartz, who grows corn and soybeans near

the southern Minnesota community of Sleepy

Eye. Leon Sheets, who raises 1 200 hogs in

northeast Iowa, was among those who have had to

buy a lot of high-priced corn the past few years.

The president of the Iowa Pork Producers

Association has watched in disbelief as corn

prices rose, past USD 4 a bushel and on through

five and six.




Bio-Fuels

Farmers, ethanol makers likely OK without subsidy (Contd)

―All the sudden, geez, we jumped over seven and

crowded 8,‘‘ he said. ―It didn‘t necessarily mean

that I was losing (money), but my opportunity to

show a profit on the operation has been extremely

challenged.‘‘

Scott Irwin, the Chairman of Agricultural

Marketing at the University of Illinois, sees the

loss of the tax credit as ―moderately bad news‘‘

for farmers but a change that likely wouldn‘t

change prices much. Although Irwin said the

ethanol producers could manage without the tax

credit, he speculated that it would cut down on the

industry‘s growth potential. Without some sort of

subsidy or oil prices pushing USD 150 a barrel or

more, there‘s not much incentive right now for

anyone to use more ethanol than the mandate

requires.

That, some in the industry believe, is where the

new gas pumps come in. Chris Thorne,

spokesman for the trade group Growth Energy,

said that there are roughly 8 mio flex-fuel vehicles

on U.S roads now, but relatively few gas pumps

that sell gasoline blended with the higher levels of

ethanol they can burn. New Jersey, he said, has

about 186 000 flex fuel vehicles, but no flex-fuel

pumps.

―The (subsidy) did a great thing in building up

demand and encouraging production of ethanol,‘‘

Thorne said. ―Well, we don‘t have a production

problem anymore, we have a market access

problem.‘‘ (pantagraph.com 25 June 2011)

Cellulosic ethanol and cold fusion There was much scientific research and several

claims that it had been accomplished. The claims

were refuted and scientists moved on to other

areas that showed more promise or at least more

funding. (Continued in next column)

Cellulosic ethanol and cold fusion (Contd)

We are at a point where the claims that MOG

(material other than grain) can be made into fuel

grade ethanol must become reality or it will be

discarded like the miracle energy sources of the

past

Conversion of corn to fuel grade ethanol is about

2.8 gallons/bushel. It is a straightforward

mechanical and distillation process that has been

subsidized for more than a decade. In that time

period, the growth of the industry has been

astonishing. The dream of producing 10% of the

nation's fuel supply was eclipsed last year and the

subsidy and tariff will drop away at the end of this

month.

Congress will keep in place a subsidy for

cellulosic ethanol because it has yet to be able to

stand on its own. Claims that it can be made are

quickly followed by estimates that it costs four

times as much to produce. In fact, there are no

commercial scale production facilities that are

producing ethanol from cellulose. However, two

are in the final planning stages in Iowa.

One is in owned by Poet, the nation's largest

ethanol maker, and the other is owned by DuPont

and its subsidiary, Danisco, an enzyme maker

recently purchased by the industrial giant. Poet is

using grants and loans from the state and federal

government to build its 25 mio gallon plant and

DuPont is using its stockholder's money to

construct one of similar size.

Here is how far behind the cellulosic technology

is compared to corn-based ethanol: Conversion of

starch (corn) to ethanol rose from less than a bio

gallons in 2001 to 13 bio gallons in 2010.

Cellulosic ethanol was projected in 2007 to be at a

half bio gallons today. The EPA projection for

this year will only be 12 mio gallons. That is

either failure or a very slow start depending on

your point of view. (Continued on next page)

http://www.pantagraph.com/business/article_893495ba-9c5f-11e0-8897-001cc4c002e0.html





Bio-Fuels


A researcher at Iowa State University says the

technology to turn corn into ethanol has been

known for a thousand years but the cellulosic

process is very recent.

I feel like they know that they can't make good on

their earlier claims but need more money to figure

out what they are going to do when they finally

admit it.

Poet is a company that is making corn-based

ethanol at a profit. Adding cellulosic seems to be

a source of pride or a required extension just in

case someone else gets the process flowing and

makes starch-based production obsolete.

DuPont is an innovative company with a long

track record of technology development.

It seems that they will use this plant to develop

and patent products and technologies that they can

sell to others and that they may be able to

coordinate in their seed division, Pioneer Hi-Bred

International, to breed and adapt crops for

biofuels production that also goes to their bottom

line.

Neither of these companies has to make this

technology work. They have their base of

operations and proving that it won't work may be

almost as positive as proving that it does.

It is unfortunate that a small, and somewhat

desperate, entrepreneur can't come into this field

and crack the code to make cheap ethanol from

low value cellulose.

One other area to watch as these two plants gear

up to produce (somewhere around 2013) is the

truck traffic.



Hauling corn for a 100 mio gallon starch based

plant takes a lot of tonnage but hauling cellulose

for a facility just one quarter that size will take

many more loads along with storage and grinding

on a scale that far exceeds anything the industry

has attempted. Both of these plants will depend on

corn stover and will require cooperation from area

farmers who will have to decide whether to retain

material that traditionally goes back into the soil

to add nutrients and organic matter for the next

crop or to haul it to the processor for additional

cash. (hpj.com 15 July 2011)

Ethanol, soy demand drive up food prices

Supply strains caused by rising demand for

soybeans from China and corn for ethanol are

fueling the rapid rise in world food prices,

according to a study by Purdue University

economists. Greater biofuels consumption and

China‘s demand for oilseeds required 46.5 mio

acres of U.S. farmland in 2010, almost triple the

amount in 2005, the researchers said in a study

released in Washington, D.C. A weaker dollar

that‘s made U.S. exports more attractive, weather

disruptions and demand that has become less

responsive to supply disruptions have added to

price pressures, according to the report.

―The current tight-stocks period and relative high

prices are expected to continue for the next one to

two years,‖ the authors said in the study.

―Ultimately, the question is whether world

supplies can not only catch up with recent demand

increases, but keep pace with demand growth over

time.‖

Global food prices have soared 39% in the past

year, reaching a record in February, according to

U.N. data.


http://www.hpj.com/archives/2011/jul11/jul18/0711RootZoneMRsr.cfm





Bio-Fuels

Ethanol, soy demand drive up food prices (Contd)

The increased costs have contributed to the unrest

in northern Africa and the Middle East that

resulted in the overthrow of leaders in Tunisia and

Egypt. U.S. food expenses rose 3.7% in the 12

months through June, government data show.

During that period, rice, wheat, corn, soybean and

milk futures touched the highest levels since at

least 2008.

The report was released at a forum in Washington

sponsored by the Farm Foundation, the

Oak Brook, Ill.-based non-profit organization

dedicated to agricultural issues that commissioned

the study. The Purdue study, produced by Wallace

Tyner, Philip Abbott and Christopher Hurt, did

not assign proportions to how much each factor

was driving food prices. (journalgazette.net

24 July 2011)

Seaweed Could Be New Form of Biofuel

The slimy ocean strands that tangle onto your

body while swimming may have a new purpose.

Researchers are turning towards kelp and seaweed

as a viable fuel option in replacing biofuel made

from crops. The new form of biofuel would

provide a solution to alleviate over-farming and

protect freshwater sources. (Continued in next

column)

Seaweed Could Be New Form of Biofuel (Contd) Crops for biofuel have long been controversial

and opinions are siding more frequently with the

practice being a bad idea. Farming as a fuel

option puts stress on the land as scarcity of an

area competes for farming purposes. But, the

practice also raises already high commodity

prices, putting more of a strain on lower income

communities. According to a release by the

Association of American Physicians and Surgeons

(AAPS), ―U.S. and European policy to increase

the production of biofuel could lead to almost

200 000 deaths in poorer countries.‖ A staggering

statistic that proves a need for change goes

beyond the land.

Researches see great potential for kelp and

seaweed as a means for biofuel. The marine plant

grows in abundance, is not generally a food

source, doesn‘t need freshwater to grow and

doesn‘t take up land space, making it a

worthwhile solution to research. Just like crops,

the carbohydrates in seaweed tissue can be

converted into fuel. There are three ways

conversion can be accomplished: pyrolysis, which

is a process of burning to create oil, fermentation

with bacteria to create ethanol and through

anaerobic digestion which produces methane.

However, unlike crops, seaweed relies on water‘s

buoyancy, allowing the plant to skip lignin

production.

A woody compound that allows land plants to

stand up against gravity‘s pull, lignin resists

degradation, ―a key obstacle in bringing terrestrial

biofuels to the market.‖ Since seaweed doesn‘t

produce lignin, the plant can be more easily

converted to fuel. Teams working on the project

acknowledge that there are a few obstacles that

must be addressed. One such opposition is

cultivation over harvesting wild seaweed.

Harvesting from the wild would compromise

sustainability of the practice.


http://www.journalgazette.net/article/20110724/BIZ/307249984/1031/BIZ





Bio-Fuels

Seaweed Could Be New Form of Biofuel (Contd)

Michele Stanley of the Scottish Association of

Marine Sciences, said cultivation of the sea plants

would be supported. Another factor is cost. At

this time, seaweed farming is not considered

economical. According to the Technical Research

Center on Seaweed in Pleubian, France, oil prices

would need to rise to at least USD 300 a barrel

before the practice could be considered feasible.

Timing could also produce some shortages.

Statistics found harvesting at different times of

the year effects carbohydrate levels. Kelp and

seaweed would need to be harvested in July, when

carbohydrate levels are at their highest, in order to

―ensure optimal sugar release for biofuel

production.‖

Despite problems that must be addressed,

researchers are already planning for the future of

biofuel. The current proposal is to grow kelp and

seaweed forests anchored by flexible material,

allowing the plants to naturally move with the

waves.

Norwegian company, Seaweed Energy Solutions

AS, has already developed a device for growing

kelp and seaweed on the ocean floor. The design

allows a single kelp sheet to be anchored in one

area, eliminating rope tangles other designs are

prone to. Founder of the company, Pal Bakken,

said the design allows for a simpler and cheaper

way of harvesting seaweed, and could make deep

water cultivation possible. (greenanswers.com

15 July 2011)

Ethanol Industry Torn Over Losing Subsidy Billions The federal government pays oil companies about

USD 6 bio a year to blend ethanol into your

gasoline; it's been subsidizing ethanol for 33 years

now. (Continued in next column)

Ethanol Industry Torn Over Losing Subsidy Billions (Contd)

But any agreement in Washington, D.C., to raise

the debt ceiling will most likely include a plan to

cut off that subsidy. And after all these years,

many in the ethanol industry say they don't really

care. The end of the subsidy — and the mixed

reaction to that idea — reveals how the world of

corn ethanol has changed dramatically.

Blending Ethanol With Gas

The fuel that's in your car or truck right now

didn't get to the gas station straight from the

refinery. It very likely stopped at a place like the

Magellan fuel terminal in Kansas City, Kan.,

where gasoline from a pipeline is blended with

ethanol.

"The ethanol all comes in here by truck," says Jeff

Myers, who runs the sprawling complex of

enormous white fuel tanks.

Pointing at a line of trucks nearby, he says,

"They're full of ethanol. So, they're waiting to pull

in under this bay, where they will unload the

ethanol. The other trucks in line, over here, they're

waiting to load fuel."

Myers says ethanol and gas are mixed in the

trucks' cargo tanks, earning whoever owns the

fuel a "blending credit" worth 45 cents for every

gallon of ethanol.

A New Position On Losing Subsidy

Until recently, the ethanol industry said it would

wither without this subsidy. Bob Dinneen,

President of the Renewable Fuels Association,

made this argument in an interview with the

Domestic Fuel podcast less than a year and a half

ago.

"If you do not extend the tax incentive, we're

going to lose 112000 jobs across all sectors of the

economy," he said back then.


http://greenanswers.com/news/250491/seaweed-could-be-new-form-biofuel



http://www.ethanolrfa.org/





http://domesticfuel.com/





Bio-Fuels


When asked if the industry needs that same tax

credit now, Dinneen said, "No, you don't. In

today's environment, no, you don't need it."

But people like Tom Buis, with Growth Energy,

the other main ethanol group, say the tax credit

has been vital to helping ethanol get off the

ground.

"The industry wouldn't have happened without it,"

Buis says, "but we're in a different position

today."

There are at least three reasons behind the change.

The first is regulatory: The government forces oil

companies to use ethanol. And that mandate is

growing. Next year, it will call for more ethanol

than the industry produced this year.

That government mandate renders the tax credit

irrelevant, says Bruce Babcock of Iowa State

University.

"You can see that that growing mandate really is

the thing that's going to drive ethanol demand," he

says, "and the USD 6 bio that we are spending

really isn't going to accomplish anything."

High oil prices are another reason ethanol

producers are sanguine about the tax credit

ending. Corn ethanol is currently cheaper to

produce than gasoline. It's also quite a bit cheaper

than imported ethanol, most of it made from sugar

cane. The third reason Babcock cites is something

some folks might call sour grapes.

"They've never been so politically vulnerable as

they are right now," he says. "They're used to

winning these battles for subsidy. And they put a

great deal of political weight and effort into

maintaining this tax credit, and they lost."



Momentum To Cut Subsidy

In June, the Senate voted overwhelmingly to end

the USD 6 bio ethanol subsidy. The move was

"definitely long overdue," says Sheila Karpf of

the Environmental Working Group.

"We think of it as a college kid that needs to move

out of their parents' basement, or even a

50-year-old that needs to move out of their

parents' basement," she says.

A tariff on imported ethanol will die with the

subsidy. But that's not likely to stop ethanol

production from using about 40% of all the corn

grown in the United States. And the next

battleground, Karpf says, will be over cutting the

mandate to use ethanol. "There are talks right now

about trying to reduce the corn ethanol mandate,"

she says, "since it is pushing up the price of feed

and food."

But the ethanol mandate has a lot more friends

than the subsidy did — and it's not likely to

change anytime soon.

The ethanol industry's more immediate problem is

finding some way to sell all of the fuel it can

produce. That would mean going above the 10%

now found in most gasoline.

Gas stations, like one in Lee's Summit, Mo., could

be part of the solution. Here, customers can buy a

range of fuel blends — 85t ethanol is a popular

one. Thanks largely to the tax credit, it's much

cheaper than normal gas. But patrons also say

they appreciate that it helps farmers and is not

made with imported oil.

Michael Riely pulls up in a Japanese sports car

with a big hood scoop and starts filling up at the

pump.


http://www.growthenergy.org/



http://www.ewg.org/

http://www.ewg.org/

http://www.ewg.org/

http://www.ewg.org/

http://www.ewg.org/



Bio-Fuels


"For me, it's either this gas, or I have to run race

fuel. And race fuel runs at least 8 bucks a gallon,"

Riely says. "So, I'm paying USD 2.99 for this,

versus the same quality fuel, I have to pay USD 8

if I want regular gasoline for this car."

So, 33 years of federal subsidies have helped to

build a large U.S. corn ethanol industry. And

mandates aside, most people who run it say it's

ready to stand on its own. (npr.org 21 July 2011)

Valley plants plan to make corn-free ethanol

With corn prices up and demand rising, work is

under way in the Valley to develop two

biorefineries to make ethanol without using the

golden grain.

In Visalia, fast-growing grasses and cornstalks

could be the fuel of the future. EdeniQ, a local

biofuel technology company, and Virginia-based

Logos Technologies are building a plant to

demonstrate the commercial promise of fibrous

and woody materials.

On the Valley's west side, it's all about sugar

beets. Engineers are drawing up plans for a plant

near Mendota to distill ethanol from sugar beets,

and to make methane and electricity from farm

waste. Both efforts are attracting attention -- and

money - from federal and state agencies eager to

boost alternative fuel production.

In late 2009, the U.S. Department of Agriculture

and the Department of Energy jointly awarded

EdeniQ and Logos a grant for more than

USD 20.4 mio to help pay for the Visalia project.

It was one of 19 plants across the country to

receive more than USD 600 mio from the

Biorefinery Assistance Program.


Valley plants plan to make corn-free ethanol (Contd)

The Mendota Advanced Bioenergy Beet

Cooperative received a USD 1.5 mio grant from

the California Energy Commission last year to

test the viability of using sugar beets, as well as

farm waste such as almond-orchard prunings, to

produce fuel and energy. It was one of six grants

awarded at that time to promote biofuel

production.

Old fuel, new sources

Ethanol is typically made by grinding up grains

such as corn or sorghum; the starches and sugars

locked inside the grain are then fermented with

yeast to produce alcohol, which can be used as a

fuel additive.

Ethanol production isn't new to the Valley. Pacific

Ethanol has plants that use corn in Madera and

Stockton. Altra Biofuels has such a plant in

Goshen, near Visalia.

But the government is now encouraging

companies to find and improve ways of making

"cellulosic ethanol" from tough, inedible grasses

and the woody or pulpy waste from fields and

orchards.

"We need all the energy we can get our hands on

in this country," said Brian Thome, EdeniQ's

president and CEO. "And while there will be a

little more growth in corn ethanol ... the next big

jump will be from other sources, other materials,

and that's where cellulosic comes in."

EdeniQ has operated a small-batch pilot plant for

several years in Visalia to use switchgrass, corn

stalks and cobs, and other types of vegetation. The

company is trying to show that its proprietary

technology and processes can be profitable on an

industrial scale.




Bio-Fuels


The company broke ground on its USD 25 mio

demonstration plant last month and expects to

finish construction by the end of this year. After it

is operational in early 2012, the facility will chew

up about two tons per day of tough grasses, wood

prunings and field waste, and spit out between

40 000 and 50 000 gallons of ethanol a year.

Cranking out ethanol isn't all that difficult.

"People have been making alcohol for thousands

of years," said Thome. "That's all we're doing. It's

a big distillery."

But compared to corn, it's much tougher to coax

sugars and starches out of high-cellulose

vegetation such as grass and wood.

Thome said the technology also could allow

existing corn ethanol plants to increase production

using less corn, or to become more versatile by

adding cellulose to the materials used to run the

plant.

Thome said that could help producers level out

the swings in corn prices and transportation prices

-- spikes that dented the profitability of ethanol

producers in recent years

As for the Mendota project, the state grant means

progress for basic design and engineering work of

the sugar beet biorefinery, said John Diener,

President of the Mendota Advanced Bioenergy

Beet Cooperative.



The cooperative proposes to grind 840kt of sugar

beets and 80kt of almond prunings and other

plentiful farm waste. In addition to distilling about

33.5 mio gallons of ethanol, a bio-mass line

would burn wood waste to generate

6.3 megawatts of electricity, and waste pulp from

the beets and other material would be processed to

produce 1.6 mio cubic feet of biomethane to make

compressed natural gas.

The project could fuel a renaissance for sugar

beets as a cash crop in western Fresno County,

said Diener. Sugar beets were once a thriving

commodity in the area, but acreages shrank

throughout the 1990s as farmers shifted to more

profitable crops. That eventually prompted the

Spreckles Sugar Co. to close its beet processing

plant in Mendota in 2008.

But development is moving more slowly than

backers had hoped. When the energy commission

awarded the grant in December, construction was

expected to begin in late 2011 with operations

commencing in late 2012. (fresnobee.com 19 June

2011)

BP Biofuels confirms 2012 groundbreaking for US cellulosic ethanol project

In Louisiana, BP Biofuels Americas President

Sue Ellerbusch said that the company‘s 36 mio

gallon Highlands County (Florida) cellulosic

ethanol project will break ground ―early next

year‖ and will open in 2013. ―Total investment in

the facility and agricultural feedstock operation

will be in excess of USD 400 mio,‖ she noted,

adding that the project will be based on a

20 000 acre feedstock farm, and that ―experience

has shown us that future cellulosic biofuels

facilities will take four to five years from land

acquisition to production of first ethanol.‖


http://www.fresnobee.com/2011/06/18/2432725/2-valley-plants-refine-ethanol.html



http://biofuelsdigest.com/bdigest/2011/06/24/bp-biofuels-confirms-2012-groundbreaking-for-us-cellulosic-ethanol-project/

















http://www.facebook.com/notes/bp-america/speech-from-sue-ellerbusch-president-bp-biofuels-north-america-louisiana-energy-/10150290238058413
















Bio-Fuels

BP Biofuels confirms 2012 groundbreaking for US cellulosic ethanol project (Contd)

Ellerbusch outlined BP‘s four criteria for

advantaged biofuels:

―First, biofuels must be low-cost. Our benchmark

for success is USD 1 a gallon, so that the biofuels

we make can compete with oil without any

subsidy by 2022. Second, biofuels must be

low carbon. We anticipate producing biofuels in

the U.S. that meet the national goals of reducing

the GHG levels in transport fuels by over 60%

from current levels. Third, biofuels must be

scalable. There is no point in making boutique

biofuels. Only mass production and mass

distribution can turn the dial. Lastly, biofuels

must be sustainable. Sustainable from an

environmental, social and economic perspective.‖

(biofuelsdigest.com 24 June 2011)

AE Biofuels acquires Zymetis for renewable fuels, chemicals

AE Biofuels Inc. said it completed an acquisition

of Zymetis Inc., an industrial biotechnology firm

developing products for the renewable chemicals

and advanced fuels sectors.

The Cupertino-based advanced biofuels company

(OTC:AEBF) issued 667 3555 common shares to

Zymetis shareholders under the transaction, with

766 000 of the shares vesting over three years.

The nearly 100-employee company operates a

55 mio gallon ethanol plant in California and

received a USD 1.8 mio grant from the California

Energy Commission grant in April to accelerate

commercial implementation of its enzyme-based,

cellulosic ethanol production technology.


AE Biofuels acquires Zymetis for renewable fuels, chemicals (Contd)

Maryland-based Zymetis is expected to operate as

a subsidiary of AE Biofuels.

Zymetis has patents and patents pending on the

Z microbe — a marine organism that consumes

plant cellulose.

The microbe naturally generates enzymes that

convert sugar, starch, and cellulose into useable

chemicals and fuels.

―Zymetis‘ technology has already demonstrated

the production of high-value chemicals to supply

multi-billion-dollar global markets, but we lacked

a commercialization platform,‖ said Zymetis

founder Dr. Steve Hutcheson in a prepared

statement. Hutcheson is expected to join

AE Biofuels‘ board of directors.

―The combination of AE Biofuels and Zymetis

enables the launch of new specialty chemical and

renewable fuels products at an accelerated rate

compared to the normal product development and

construction cycle of three years or more,‖ said

AE Biofuels CEO Eric McAfee, in the statement.

(bizjournals.com 06 July 2011)

Biofuels firm wins verdict over Colwich ethanol site

Abengoa Bioenergy is still eyeing a new ethanol

plant next to its existing one in Colwich as it

works through a series of stiff legal and economic

challenges.

Last week, a jury in St. Louis County, Mo.,

awarded Abengoa USD 48.4 mio for what it

decided was a 2006 mistake by Chicago Title

Insurance Co. that caused Abengoa to build in

Illinois rather than Kansas.



















http://www.bizjournals.com/sanjose/news/2011/04/20/ae-biofuels-gets-19m-federal-grant.html







http://www.bizjournals.com/sanjose/news/2011/07/06/ae-biofuels-acquires-zymetis.html





Bio-Fuels

Bio-Plastics

Biofuels firm wins verdict over Colwich ethanol site (Contd) Abengoa was seeking a rezoning for a plant site in

Colwich. The company hired Chicago Title to

research all the property owners legally required

to be notified for a rezoning by the city of

Colwich.

But Abengoa said in the suit that Chicago Title

left seven property owners off the list. Some of

the property owners used the mistake to challenge

the rezoning. That case was settled in favor of the

city in April, said Abengoa attorney Grant Davis,

when the Kansas Supreme Court elected not to

hear the case and let stand an earlier decision by

the Kansas Court of Appeals.

Because of the lengthy court case over the

rezoning, Abengoa built the plant in Granite City,

Ill., rather than Colwich. The decision cost

Abengoa USD 48.4 mio, Davis said, because a

plant in Colwich would have opened sooner and

been less expensive to operate. Chris Standlee,

executive vice president for Abengoa Bioenergy

U.S. Holding Co., said the company still likes the

Colwich site.

The company had planned to build a plant that

would produce up to 100 mio gallons of ethanol a

year and employ 78 people. But, Standlee said,

the company has no immediate plans to build. The

financial and ethanol markets have changed

dramatically since 2006 when demand for ethanol

was growing and financing was easy.( kansas.com

19 July 2011)

Corn ethanol subsidy to end

Last week, a bi-partisan coalition of senators

stunned ethanol producers with a 73-27 vote to

halt the 45 cents/gallon tax credit — billions of

dollars per year that have gone to producers of

blended ethanol.


Corn ethanol subsidy to end (Contd)

That vote won't affect the two ethanol plants

planning to locate in Highlands County, BP's

Vercipia plant near Brighton, and Highlands

EnviroFuels, south of Lake Placid.

In Louisiana, BP Biofuels Americas president Sue

Ellerbusch said that the company's 36-mio-gallon

cellulosic ethanol project will break ground "early

next year" and will open in 2013.

"Any vote by Congress to eliminate the

Volumetric Ethanol Excise Tax Credit," the

ethanol blender's credit, "will not affect our

proposed ethanol plant in Highlands County," said

Bradley Krohn, president of U.S. EnviroFuels.

"Our business model is stand-alone and does not

require any government subsidies, tax credits, or

funding."

BP spokesman Tom Mueller agreed: "Congress

has not shown any indication that it is interested

in eliminating the production tax credit for

cellulosic biofuels." (highlandstoday.com

27 June 2011)

Plastic by Any Other Name

But despite all the buzz, Coca-Cola and PepsiCo's

plant-based bottles are still very much plastic. The

companies have merely replaced the fossil fuels

(petroleum and natural gas) traditionally used to

make their plastic bottles with ethanol from

renewable sources (plant waste in Pepsi's case and

Brazilian sugar cane in Coke's). (Continued on

next page)

http://www.kansas.com/2011/07/19/1937870/abengoa-wins-484-million-verdict.html





Bio-Plastics

Plastic by Any Other Name (Contd)

Though these initial inputs come from renewable,

lower-carbon sources, the resulting plastics are

chemically identical to the polyethylene

terepthalate, or PET, and high-density

polyethylene, or HDPE, that regular plastic bottles

are made of—a fact the companies acknowledge.

And once the inputs become plastic, they carry all

the same environmental impacts as plastic made

from fossil fuels: They don't biodegrade, they

pollute the world's oceans and soils, and still leach

potentially harmful chemicals into our food.

"They're just using plants to make the same

polymers you find in other plastics. It has zero

effect on plastic pollution," says Marcus Eriksen,

a marine expert who co-founded the nonprofit

5 Gyres a few years ago to study ocean

plasticization in areas like the Great Pacific

Garbage Patch.

Eriksen and his crew just finished exploring the

world's five major oceanic gyres (slow-moving

currents that create massive whirlpools where

plastic can accumulate). They've found "plastic

soup"—water thick with tiny bits of plastic—in

all five.



Eriksen's team and other researchers have also

found larger chunks of plastic on the various

islands scattered throughout the gyres, and in the

bellies of dead birds, fish, and animals who fill

themselves up with plastic bits that they mistake

for fish and eventually die because they can't

digest the stuff.

Likewise, plastic—plant-based or otherwise—

harms human health

The dangers of chemical additives commonly

used in plastic, such as BHT,* as well as chemical

compounds released by plastics, such as

acetaldehyde have been widely publicized for

their apparent link to various types of cancer.

"Some bioplastics formulations use the same

types of additives as petroleum or natural

gas-based plastics," acknowledges Melissa

Hockstad, a vice president at SPI, a trade

association for the industry. In other words, plant

plastics are not necessarily free of harmful

chemicals.

There's no way to know whether a particular

plant-based plastic bottle includes these

chemicals, since all plastic "recipes" are protected

as trade secrets. But since traditional PET and

HDPE manufacturers tend to use them to produce

the right level of pliability and clarity, there's a

very good chance that plant-based versions of

PET and HDPE contain them, too.

Hockstad says "some companies have been

working on the development of bio-based"

alternatives. But the key phrase is "working on the

development of," as in, those additives don't exist

yet and may never. That said, there's a kernel of

real progress amid the plant-plastic hype. The new

bottles reduce the use of fossil fuels and improve

recyclability. But there's a big difference between

"recyclable" and "recycled."


http://myplasticfreelife.com/2011/04/the-truth-about-pepsis-new-plant-based-pet-plastic-bottle/









http://5gyres.org/

http://5gyres.org/

http://en.wikipedia.org/wiki/Great_Pacific_Garbage_Patch







http://www.chrisjordan.com/gallery/midway/#CF000313%2018x24



http://www.plasticfreetimes.com/gyres-and-marine-life

















http://www.slate.com/id/2296858/#Correct

http://www.ncbi.nlm.nih.gov/pubmed/16470261



http://ecologycenter.org/factsheets/plastichealtheffects.html







http://www.plasticsindustry.org/



Bio-Plastics


While all bioplastics are technically "recyclable,"

current recycling systems are not set up to recycle

those that don't mimic existing plastics. The most

common bioplastics include polylactic acid,

which is made from corn starch, tapioca, or sugar

cane. When these bioplastics arrive at a recycling

center, they are separated out as waste.

In this sense, Coke and Pepsi opting to create

plant-based HDPE and PET instead of other

bioplastics is applaudable. Unfortunately, people

still recycle only a small fraction of the plastic

bottles they use, regardless of how those bottles

are made.

(Manufacturers typically put the recycling rate for

PET at 27%, while recycling advocates suggest

it's more like 21%.) Most plant-based bottles,

sadly, will end up in landfills or along the side of

the road.

As such, it's crucial not to misread plant-based as

biodegradable. "As a recycler, I'm much happier

with the bioresins that we're able to recycle, but I

don't want it to turn into something where people

think because they're buying a plant bottle, they

can be wasteful," says Gerry Fishbeck, Vice

President of the United Resource Recovery

Corporation, a large recycling company that has a

partnership with Coca-Cola. Pepsi and Coke could do a greater environmental

good by focusing on recycling instead of on

making plant-based bottles. They could, for

instance, finally throw their support behind bottle

bills, state legislation that creates a deposit system

for beverage containers. In the 10 states where

they're enacted, bottle recycling rates range from

60% to 80%, dramatically higher than the national

average.



But so far Coca-Cola and Pepsihave balked at

bottle bills, claiming they create an unreasonable

business cost. (Under the bills, manufacturers are

required to set up the deposit systems as well as

arrange for the collection and processing of their

empty containers.)

They should also commit to using recycled

material in their packaging. In 2001, Coca-Cola

pledged to use 10% recycled plastic in their PET

bottles by 2005. It achieved that goal, promptly

dropped its commitment to using recycled

content, and now evades precise accounting with

statements like, "We are working to advance

technologies that allow us to use greater amounts

of recycled materials in our packaging."

The bottles currently produced by major bottling

companies use about 4% recycled content,

according to Susan Collins, executive director of

the Container Recycling Institute.

There's no question that setting up collection

facilities and integrating recycled material into the

production stream is expensive. But several

companies are already doing it, Collins says.

Naked Juice, Naya Water, Eldorado Water, and

Rainbow Light Nutritional Systems, for example,

are all using 100% recycled plastic in their

bottles. Meanwhile, Coke and Pepsi are spending

mio on a plant-based version of the same old

packaging and touting it as an environmental leap

forward. Don't be fooled: It's a sidestep at best.

(slate.com 14 June 2011)

Bio-plastic plant for JK grounded

Despite passing of two years, the Jammu and

Kashmir Government has failed to start work on

an ambitious project to manufacture bio-plastic

from organic material as an alternative for

polythene.


http://www.urrc.net/new/pages/







http://www.bottlebill.org/news/articles/2011/4-29-SuppliersSayCokeMandates.html









http://www.container-recycling.org/





http://www.slate.com/id/2296858/





Bio-Plastics

Bio-plastic plant for JK grounded (Contd)

The JK Agro Industries Corporation Ltd had

signed a Memorandum of Understanding (MOU)

with an Italian Company Earthsoul Pvt. Ltd., on

August 4, 2009 to construct state-of-the-art plant

in Jammu for manufacturing the bio-plastic.

By virtue of the MoU, the mega plant estimated at

a cost of INR 5 crore, was to be set up at

Bari Brahmana. Having 60% share in the project,

the plant was to be developed, operated and

maintained by the Italian firm.

The plant had the capacity to produce 70 t of

bio-plastic from the Maize, Corn and Potato

starch, to replace the plastic based products.

Officials said all the technical assistance and

imported machinery was to be installed by the

Italian Company. However, despite passing of

two years, the project is yet to take off. Sources

said that the plant has been ―sabotaged‖ by a

lobby working at the instance of some politicians

and industrialists nexus who control the plastic

manufacturing sector in the State.

―The project has been derailed before its take off

as it harmed the interests of the big industrialists

dealing with polythene‖, said a senior bureaucrat

wishing anonymity. A senior official of the State

Agro Industries Corporation Ltd, however blamed

the Italian company for the delay.

―The company has not yet started the work on the

project without assigning any reasons,‖ he said.

However, highly places sources said that the

Government has deliberately put the project on

backburner. ―Manufacture of bio-plastics would

have drastically affected the plastic industry and

the people associated with it as their crores of

rupees are at stake‖ they said.


Bio-plastic plant for JK grounded (Contd)

Pertinently, the High Court had banned the use of

polythene in Jammu and Kashmir a few years

ago. According to estimates 70% of the garbage

consists of plastic bags which choke the drains.

Experts said the bio-plastic can check further

deterioration of State‘s fragile eco-system.

―The bio-plastic products degrade in six months.

They gradually dissolve in soil and water without

leaving any toxic effect‖ they said.

Sources said that State Government had received

advance orders for bio-plastics from various

departments, NGOs and other agencies,

When contacted the Officiating Managing

Director JK Agro Industries Farooq Ahmad,

acknowledged delay in execution of the project.

―There has not been any substantial progress in

the project. I will soon identify reasons for the

delay so that work on the project starts,‖ he said.

(greaterkashmir.com 03 July 2011)

http://www.greaterkashmir.com/news/2011/Jul/3/bio-plastic-plant-for-jk-grounded-39.asp






These are the news derived from regional

publications, translated using online tools,

hence the medium quality of translation.

China

The current dynamic market conditions Shandong corn

Dynamics of Corn market in Shangdong province

On June 20, the purchasing price of

Zhucheng,Xinmao, a corn deep processing

enterprise in Zhucheng of Shangdong province, is

RMB380/t up by RMB 10/t.

The purchasing price of corn of 14% moisture

content of Zhucheng Runsheng is RMB 2380/t.

On June 20, the purchasing price of

Shengtaiyaoye, a corn deep processing enterprise

in Lechang area of Shandong province, is

RMB 2 400/t, up by RMB 16/t, the purchasing

price of Yingxuan brewery with tax is

RMB 2 420, On June 20, the purchasing price of

Hengren, one corn deep processing enterprise in

Tengzhou area of Shangdong province, is

RMB 2 340, discount is 1.

On June 20, the purchasing price of Jinyumi, one

corn deep processing enterprise in Shouguang

area of Shangdong province, is RMB 2388/t,

down by RMB 10/t, the purchasing price of

Xinfengdianfen of corn of 14% moisture content

is RMB 2 384, down by RMB 8/t.

On June 20, the corn purchasing price is

RMB 2330/t in Zouping area of Shangdong

province. On June 20, the purchasing price of

medium quality of corn, produced from Dongbei

area, is RMB 2300t, in Qingdao area of

Shangdong province. (zglyfzw.com 24 June 2011)

Gansu Dingxi report on the development of the potato industry The development of market mechanism and the

implementation of brand strategy have been paid

off. Citywide, we have put in place four potato

wholesale markets in Lintao Kangjiaya, Longxi

Wenfeng, Anding Lujiagou, Minxian Meichuan,

of which, Lintao kangjiaya is identified as a major

national potato market by the Ministry of

Agriculture.

As a result, we have established a farm produce

wholesale and purchasing network, with the top

four markets at the core, supported by small and

medium-sized markets and open fairs, relied on

purchasing and transport units, and based on

purchasing stations.

In 2004, 1.1 mio t of potato in our city were

exported, among which, railway system exported

6006 railway carriages, or 360kt and organized 6

special trains/15 600 t of potato.

Thanks to the active market regulation by the

government, last year, the price of exported potato

witnessed a net increase of RMB 80t on average,

the purchasing price of processing enterprises in

the city was raised by RMB 30/t, effectively

adding to farmers‘ income.





Gansu Dingxi report on the development of the potato industry (Contd) By now, we have developed, reviewed and

released 5 Gansu standards concerning

pollution free potato and registered 10 potato

brands. ―Weiyuan Potato‖ has obtained the

registration of geo indication of country of origin

by the General Administration of Quality

Supervision, Inspection and Quarantine.

―Lintao Potato‖ has won national Grade-A Green

Food Certificate and Anding Chaoxing Refined

Starch is applying for National Grade-A Green

Food Certificate. Lintao Tengsheng, Xingda,

Gansu Jindadi, Minxian Jindadi and Longxi

Qingji Companies are accredited as major

industry leaders in agriculture industrialization in

Gansu Province, of which, Lintao Tengsheng

Company is listed as a national level major

industry leader in agriculture industrialization.

Anding and Weiyuan are named as ―Hometown

of Chinese Potato‖ and ―Hometown of Chinese

Potato Fine Breed‖ by the Organizing Committee

of Hometown of Chinese Specialties respectively.

We have witnessed certain progress in the

development of the potato industry this year, but

due to many subjective and objective factors, we

are still faced with many difficulties and

challenges as follows:

To begin with, the replication and application rate

of fine special purpose strains is relatively low

and the production of detoxification potato seed is

struggling with capital shortage. Terminal market

research we carried out last year and the

production practice of refined starch in recent

years demonstrate that the replication and

popularization rate of fine strains suitable for

export is low, such as Xindaping,


Gansu Dingxi report on the development of the potato industry (Contd)

D-1533, Feiwu Ruita; the application range of

imported strains which are suitable for processing

chips and whole powder is rather limited, such as

the Atlantic Ocean and Sheopody; Longshu No. 3

fit for fine starch production is in low

industrialization scale; at the same time, these

main planting strains, Longshu No. 3 and

Xindaping in particular, are in the grip of capital

scarcity in the expansion and multiplication links,

which leads to lower application rate of

detoxification potato seed and severe

degeneration of field strains.

Secondly, the production bases are from being

standardized, customized and scientific with small

fine varieties and large orders. Specifically, due to

the mixed varieties used for processing and

export, the quality of raw materials is unstable

and the quality of exported products is low, which

means small room for price increase.

Meanwhile, the scientific content of the bases is

rather low and with low level of input, the unit

yield level leaves room for further improvement;

the demand rate of most raw material orders is

poor; due to the constraint of capital in

mechanized production technology, the machine

availability is insufficient and the promotion scale

is limited.

Thirdly, the working capability and actual

production form a stark contrast and moreover,

the output and quality are far from being stable,

fine and further processing needs to be further

elevated. Last year, 22 fine starch enterprises

developed 250kt processing capacity, but they

only produced 100kt, largely as a result of short

processing time and insufficient stock and supply

of raw materials; in the meantime, mixed varieties

of raw materials and unstable quality triggered

diverse and poor quality of fine starch.





Gansu Dingxi report on the development of the potato industry (Contd) II. Next steps and priorities

The municipal agricultural bureau, as the leading

unit, will pay attention to the following works in

the coming six months while centering around the

targets and priorities for potato industrial

development defined by the municipal

government earlier this year:

To do a good job in field management to prevent

and treat the late blight of potato. We are expected

to host a prevention and treatment spot meeting

recently, provide technical training, organize and

ship pesticides and equipment and enhance

technical guidance. Meanwhile, we need to focus

on intertillage earth up, weeding and topdressing

as a way to contribute to high yield of potato.

To work to make orders possible. We will

mobilize leading enterprises to improve order

contracts and increase the contract fulfillment

rate. Meanwhile, we work to replicate the order

stock mode of Anding Chaoxing by combining

the development of depot system.

To make every endeavor to increase processing

quantity and product quality. Firstly, we will

encourage processing enterprises to speed up

technical transformation and expansion, overhaul

equipment in advance, and improve technologies

and techniques as well as expand processing and

improve quality. Second, we work to accelerate

the schedule of newly-added processing projects

to make them up and running as soon as possible.

Third, we will coordinate financial departments to

help processing companies apply for loans as a

way to ensure the availability of purchasing

capital. Fourth, we will stimulate processing

enterprises to promote order stocks.


Gansu Dingxi report on the development of the potato industry (Contd) Fifth, we will invite potato processing experts

from the Netherlands to hold a seminar in

September to provide training for staffs working

at potato processing enterprises.

To do more to market potato. The total potato

output in our city this year is expected to amount

to more than 5.5 mio t. Apart from processing and

stock, more than 1 mio t will be exported. In this

connection, the export work is faced with new and

severe challenges.

For that end, we will, firstly, open green passage

in the city to ensure smooth traffic flow from

July 1 to late December according to the

requirement of the provincial department; second,

we will contact the railway department at an early

stage to compete for railway carriages.

We will continue to replicate the method of

railway and land transport and forming joint

transport office we used last year to dispatch and

allocate railway capacity. Our goal is to use

10 000 railway carriages and 10 large and special

trains for potato export; third, we will coordinate

with financial departments to make working

capital accessible to leading transport units and

associations; fourth, we will suggest provincial

agricultural department to make the potato fair to

be held in Dingxi this year a provincial meeting

which will be organized by the provincial and

municipal departments.bn (jastkj.com 02 June

2011)

Corn prices of Hebei province on June 10, 2011

On June 10, the price of corn increase slightly in

Xingtai area of Hebei province.





Corn prices of Hebei province on June 10, 2011 (Contd)

News form Hebei Xingtai area The purchasing

price of corn of trader in Xingtai area is

RMB 2180/t, ex-works price is RMB 2 200/t, is

higher than prior period. As of stock is limited,

the market is defined by appropriate price yet no

transactions, but majority of deep processing

enterprises have signed the contacts with local

granaries.

On June 10, the corn purchasing price of 14%

moisture content of Renqiu Granary of Cangzhou

city in Hebei province is RMB 2 200/t but the

corn have not been processed On June 10, the

purchasing price of corn of 14% moisture content

of vendors in Handan cixian of Hebei province is

RMB 2 160/t, the corn has been processed. The

purchasing price of corn of 13% moisture content

of Handan guantaoxian in Hebei province is

RMB 2 220t, at present the corn price remain

stable.

On June 10, the purchasing price of corn of

Xiwangsiliao of luquan city of Hebei province is

RMB 2 180/t, the corn has been processed,

moisture content is 14%. The corn purchasing

price of 14% moisture content of Deruidianfen of

Xinji city in Hebei province is RMB 2 220/t. The

purchasing price for bulk buying in Shijiazhuang

city of Hebei province is RMB 2 200/t, the corn

has been processed and the moisture content is

14%.

On June 20, the corn purchasing price increased

slightly. And the latest news from one trader of

Hebei langfang that the purchasing price of corn

is RMB 2 200/t, is a little increase than previous.

Because the stock is limited, the purchasing price

is slightly higher. (aptc.cn 10 June 2011)

Starch Sugar prices to settle and general sales in June 17 2011

The upstream raw material:

This week intervals to discuss a little corn starch

market moving up, traders appear intent of getting

goods cheap, but the overall trading volume is

limited, with most still get-go based. As of Friday

(6.17), the mainstream range of uplift in the range

of around RMB 20-75/t range. Reference range in

the RMB 3150-3250/t East China, high-end

market continued to hold up to RMB 3 300/t in

the vicinity, and more to the downstream. South

China Resources in 3200-3250/t, slightly higher

RMB 50/t, part of the implementation of large

customer orders. Other North area or different,

reference to RMB 50-75/t; Northeast slight

RMB 20-30/t lift, but there is still the high initial

price of the manufacturers to maintain the original

price, watching the market.

The sugar areas: This week sales areas outside the spot price of

sugar by the strong support, showing a steady

firmer trend, the current stock market trend has

dominated this week, more rain because the

Yangtze River region, Shandong Province has

now entered the wheat harvest, the market

Guangxi Sugar reluctant to sell the more serious,

the amount of sugar in Yunnan began to slowly

decrease in overall sales volume is not ideal,

inventory is very weak, most of the downstream

sugar companies are now taken with, the market

outlook stay on the sidelines, despite spending a

few days ago has entered the peak season, The

reservoir will gradually throw sugar

normalization, but the dominance of spot prices

are still determined by the large domestic sugar

mills, sugar prices will remain strong in the case

of Fortune is expected to post price or the spot

will show a steady trend firmer.





Starch, sugar prices to settle and sales in general June 17, 2011 (Contd) The price list:

Region Product Price (RMB

/ton)

Zouping region Crystalline

glucose

4100

Maltodextrin 3950

Texas Dingli Jujube

Industry

Crystalline

glucose

4150

Luzhou Bio-Chem

Technology

Crystalline

glucose

4200

75% maltose 2950

Fructose syrup

F42

3300

Fructose syrup

F55

4000

Zhucheng

Dongxiao

Crystalline

glucose

4300

75% maltose 2950

Maltodextrin 4400

Qingyuan Group 75% maltose 2920

Maltodextrin 4000

Qingzhou Huakang Crystalline

glucose

4100

Weifang Shengtai Crystalline

glucose

4300

Shandong Dezhou

in the Valley

Liquid glucose 3050

Into force the earth 75% maltose 2850

Tianli

Pharmaceutical

Sorbitol

pharmaceutical

grade

4300


Starch, sugar prices to settle and sales in general June 17, 2011 (Contd)

Region Product Price

(RMB

/ton)

Sorbitol 3900

Hebei Jianmin

starch sugar

Crystalline glucose 4150

Qinhuangdao

Hua Li


Henan dragon Crystalline glucose 4150

Henan

Mengzhou

King Corn

Maltodextrin 3900

Hubei De

Sugar House

75% maltose 3000

80% maltose 3200

Fructose syrup F42 3100

Jingzhou Han

Bioscience


Hubei Wuhan

Bao

Liquid glucose 3050

Hubei

Nanyang

biological


Shanxi Xin

Hong

75% maltose 2800

80% maltose 3050

Shanxi

Changzhi

Kanazawa


Shaanxi

Luzhou

Branch

75% maltose 3200

80% maltose 3400






Region Product Price

(RMB

/ton)

Sichuan Lili 80% maltose 3400

Sichuan Quanta 75% maltose 3250

80% maltose 3400

Four

Chuanluqing

state biological


75% maltose 3250

80% maltose 3500

Chongqing

Department of

Biology East

80% maltose 3500


Anhui Jintai Fructose syrup F42 2950

Anhui Youyong 75% maltose 2950

Xi'an next shop 75% maltose 3200

80% maltose 3400

Guangdong

Shantou

83% maltose 3650


Changchun

Dorsett

75% maltose 3000


Maltodextrin 4050

Zhangzhou,

Fujian



75% maltose 3800


Starch, sugar prices to settle and sales in general June 17, 2011 (Contd) The market brief: This week "plasticizer" storm did not stop, the

mainland is very strict food safety inspections,

including Jiangsu, Henan, Anhui, Chongqing and

other provinces, check the larger effort, affected,

most small and medium enterprises in Henan has

been discontinued wait, the downstream decrease

in the amount of food processing enterprises, the

majority of the downstream sugar business

outlook on the sidelines.

Crystalline glucose by food safety inspection, this

week prices were steady weakening trend,

Shandong offer crystalline glucose maintained at

RMB 4 100-4 200/t, Hebei crystalline glucose

mainstream in RMB 4 100/t, Henan offer

mainstream crystalline glucose.

In RMB 4 150/t; some small manufacturers by

RMB 50/t, the situation is still not optimistic

about the shipment, market sentiment remained in

the doldrums, demand is relatively weak on the

other hand, is at wheat harvest this week, part of

the factory shutdowns, workers leave busy,

creating a market decline in capacity utilization,

factory inventory level is incomplete, and the

downstream impact of food businesses subject to

inspection, with the use of mining, the market

outlook to wait and see attitude, the overall

turnover of the main light.

Maltose syrup, the weak market demand, food

safety inspection by the rising costs of raw

materials and factors, some manufacturer‘s cut-off

to be sold. Most cookies, cakes sell for companies

today to adopt the way, wait and see attitude on

the market outlook, the overall turnover of the

main light;






Fructose syrup prices steady run, downstream

juices, cold drinks, beer business needs has been

launched, the market is relatively active turnover

of enthusiasm to be heating up, the whole

shipment was acceptable;

Maltodextrin, the various regions of the country

offer slightly lower this week, market sentiment is

more deserted, lower procurement requirements in

general, there is no market in the whole state.

Anticipation of Market

Later, with the shopping season starts, summer

beer, cold drinks, carbonated drinks, juice drinks,

milk drinks needs to gradually increase. In

addition, the spot price of sugar by sugar prices

strong outside support, is now in the state steadily,

sugar from sugar and starch analysis of

substitutability, Zhuo record that the business

outlook bullish for more post-market or remained

stable firmer trend.(aptc.cn 19 June 2011)

Vietnamese

Cassava exports increase as China prices surge

Viet Nam exported USD 638 mio of cassava in

the first five months of the year, nearly equal to

110t of the entire export revenue of last year,

according to the Ministry of Agriculture and

Rural Development. Although the domestic price

has risen to VND 5 800/kg, cassava is still

exported to China in large quantities because it

can fetch higher prices.

In recent years, exports to China accounted for

about 5 mio t annually.


Cassava exports increase as China prices surge (Contd)

In recent years, exports to China accounted for

about 5 mio t annually. Viet Nam has about

510 000ha of cassava planted, with an annual

output of nearly 9 mio t.

The ministry estimates the country's domestic

demand for cassava this year will be 8.12 mio t.

Of that figure, 1.89 mio t are used for producing

ethanol, and the remaining volume for animal

feed and confectionary products.

Pham Duc Binh, deputy chairman of the Vietnam

Animal Feed Association, said cassava accounted

for 30-40% of input materials in animal feed

production. However, cassava is also exported so

domestic animal feed plants have not been able to

buy enough for production, Binh told Viet Nam

Economic Times.

Le Khac Triet, director of the Vietnam Cassava

and Cassava Starch Club, said since 2009 cassava

had become an agricultural plant with high

economic value. The price of cassava has

increased to VND 5 700-6 000/kg, compared to

just VND 200-500/kg in 2007-08 and

VND 4 000/kg in 2010.

Farmers in central provinces have expanded the

area under cassava cultivation, raising concerns

among local authorities about forest protection

and transferring to cassava cultivation. In Quang

Ngai Province's Son Ha District, for instance,

farmers have cleared protective forests upstream

of the Thach Nham River to grow cassava.

Ta Tien, acting head of the Son Tra District Forest

Protection Bureau, said this situation had

happened over the past few months.





Cassava exports increase as China prices surge (Contd)

In 2006-10, Quang Ngai had planned for

13 500ha of cassava in 2010, but the area had

increased to 21 000ha in 2010, and is continuing

to rise. In Ha Tinh Province, hundreds of

households in Ky Anh District had also destroyed

protective forests to grow cassava. Triet warned

that cassava had become a hot product and when

output exceeds demand, the price could drop as it

did in 2007-08. At that time, it would be difficult

for farmers to switch to other crops because the

fertility of the soil would be eroded after three to

four years of growing cassava, he said.

To resolve the cassava material shortage, the

cultivation area should not be increased, but

measures should be taken to increase productivity,

Triet said. Farmers in some countries have

harvested cassava output of 40 t/ha a year while in

Viet Nam output is only 17.2t/ha. Measures to

increase cassava productivity include applying

advanced farming techniques and finding

high yield cassava strains, he said. He added that

his club had found new cassava strains with a

high yield of 40 t/ha a year.

(vietnamnews.vnagency.com.vn 20 June 2011)

Portuguese

U.S.: Ethanol Gasoline Futures Plunge the Hold Steady, Corn Advances Ethanol futures in Chicago unchanged were

declined on the gasoline demand and concerns on

corn gained that inclement weather slowed

planting. The biofuel was to steady crude oil and

gasoline plunged after ADP Employer Services

said employment rose by 38 000 in May, the

smallest gain since September and below an

estimate in a Bloomberg News survey of 175 000.

The Government report Showed about 86% of the

corn crop was planted as of May 29, behind the

five-year average of 95%.

"Basically Ethanol was caught in the middle,"

said Matt Janney, a trader at Citigroup Global

Markets Inc. in Chicago. Denatured ethanol for

June delivery settled unchanged at USD

2 642/gallon on the Chicago Board of Trade.

Prices have increased 11% this year. In cash

market trading ethanol in New York dipped 1

cent, or 0.4%, to USD 2 725/gallon and in the

U.S. Gulf the additive lost 2 cents, or 0.7%, to

USD 2 765, According to data compiled by

Bloomberg.

Ethanol in Chicago Declined 2 cents, or 0.8 %, to

USD 2 635/gallon and on the West Coast the

biofuel slid 3.5 cents, or 2.1%, to USD 2.78. Corn

futures for July delivery rose 11 cents, or 5.1%, to

USD 7 585 a bushel in Chicago. The grain has

more than doubled in the past year. Crude oil for

July delivery declined USD 2.41, or 3.2%, to

settle at USD 100.29 a barrel on the New York

Mercantile Exchange. Gasoline for July delivery

fell 7.3 cents, or 3.2%, to settle at USD 2.9773 a

gallon in New York. Futures Declined 9.1% last

month. (udop.com 04 June 2011)

http://udop.com.br/index.php?item=noticias&cod=1075696






Ethanol corn leaves 17% more expensive The U.S. Government subsidies to ethanol may

have already inflated by up to 17%, so artificial,

corn prices in 2011. The estimate appears in a

study that the International Centre for Trade and

Sustainable Development (ICTSD, its acronym in

English) released this week, days after the

U.S. Senate approved an amendment that would

extinguish the incentive of USD 5 bio to the

sector. Currently, producers who use the blend of

ethanol receives a tax credit of USD 0.45/gallon.

The ICTSD, a "think tank" based in Geneva,

estimates that the high gas prices stimulated

consumption of ethanol, creating a backdrop of

tight domestic supply of corn. "Under these

conditions, the incentives for mixers have a

significant impact on prices of grain," says

Bruce Babcock, a Professor at Iowa State

University and author of the study, said in a

statement. For him, the U.S. policy for the sector

could be more flexible in times of shortage of raw

material.

The use of corn for ethanol production more than

tripled since 2004 from 36 mio to nearly

130 mio t - the amount corresponds to almost all

Brazilian production of soybeans and corn

expected this year. The supply has not kept pace

with demand, and participation in the allocation of

biofuel crop nearly quadrupled during this period.

From each collected 10 sacks on American soil,

some distillers will supply 3.8, according to the

Department of Agriculture (USDA). As a result,

Americans now use corn to make ethanol than the

fuel feed to meat production.

If U.S. production of ethanol levels had been

maintained in 2004, the study suggests ICTSD,

corn prices in 2009 would be approximately 21%

lower than those recorded.


Ethanol corn leaves 17% more expensive (Contd)

During the period, commodity prices more than

tripled amid not only the growth of biofuels, but

the demand for food in developing countries. The

weakening dollar and rising flows of hot money

into the commodities futures markets also

contributed to the shift in prices.

Although they have fallen nearly 12% last week,

corn futures prices traded on the Chicago Board

of Trade soared nearly 85% in the last 12 months.

On day 9, reached a history of highs after the

USDA lowered its forecast by 22% for local

stocks passing the 2011/12 harvest. The expected

volume is the lowest in 15 years.

The adjustment reflects the impact of severe

rainfall on crop yields, especially in Ohio. World

stocks were also reduced by 13% to its lowest

level in five years - largely a result of increased

consumption in China. In Brazil, harvesting of the

winter harvest is delayed, due to the delay in

planting. According to report released yesterday

by the consulting Céleres, only 2.5% of the crops

were harvested until last Friday, up 9.7% over the

same period of 2010.

The concern with the level and volatility of

agricultural prices should dominate the agenda of

the agriculture ministers of the G-20, who meet in

Paris (22 June 2011)

Agreement in the U.S. can benefit Brazilian ethanol

U.S. Senate leaders reached an agreement to end

the import tariff on Brazilian ethanol in the United

States and reduce subsidies to American

producers. The agreement aims to reduce by the

end of the month subsidies for ethanol production

in the U.S., where it is made from corn.


http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF8&prev=_t&rurl=translate.google.com&sl=pt&tl=en&twu=1&u=http://ictsd.org/i/publications/108947/&usg=ALkJrhgJ0k-_M18xy27x8YXfy2eq44AO4A




Agreement in the U.S. can benefit Brazilian ethanol (Contd) It is a shorter period than previously thought

possible until a few weeks ago and a sign of how

tax policy can change quickly in the face of a debt

of USD 14.29 trillion.

Senator Dianne Feinstein, a Democrat, of

situation, said in a statement that it had reached an

agreement with other senators of the party under

which a tax of USD 0.45/gallon (3.7854 liters) of

ethanol in the mix gasoline expire on July 31. But

the tax of USD 0.54/gallon of imported ethanol

also expire at the end of the month.

The deal should benefit especially the Brazilian

ethanol industry, which has struggled to gain

access to a large scale in the U.S. market because

of the rate of USD 0.54/ gallon.

If it goes ahead, the deal could generate about

USD 1.33 bio in savings to reduce the U.S. debt.

And one-third of these savings would be used to

extend tax credits, including tax credits for the

distribution infrastructure for alternative fuels

such as ethanol pipelines that ethanol producers

hope to build.

The agreement is important because the senators

involved are defenders of U.S. ethanol producers

who were trying to keep the federal government

support to the sector. (wsj.com 08 July 2011)

The development of bioethanol production is possible only in case of cancellation of excise duty USDA

At the moment in Russia there is no official

statistics on production, consumption and trade of

biodiesel fuel and bioetanolovym. According to

various sources, the share of biofuels in total

energy production in the country is about 1.3%.


The development of bioethanol production is possible only in case of cancellation of excise duty USDA (Contd) According to experts of the USDA, ethanol

production in Russia will become profitable only

in the event of cancellation of excise duty. High

excise taxes on alcohol have a negative impact on

the production of fuel.

Russian law does not distinguish ethanol from

alcohol for the production of alcoholic beverages.

In many other countries, such a distinction exists,

and excise duties on fuel ethanol is absent, which

promotes the development of the biofuel industry.

The development of biofuels is not provided by

the National Project "Development of

agriculture", and without appropriate government

support attempts to create a self-defeating. The

reasons for low-interest government to industry

are the high cost of biodiesel, a mixed-existent

policies on bio-fuel producers, low domestic

demand and the unsuitability of vehicles to use

biofuels. Negative impact on the profitability of

its production has increased prices for wheat and

oilseeds.

Recently, the head of the state corporation

"Russian Technologies" Sergey Chekmezov

announced the start of construction of the first

large-scale plant to produce biofuels, which will

be built in the Irkutsk region, Tulun. The main

raw materials are used waste wood.

(proagro.com.ua 18 July 2011)

http://www.proagro.com.ua/art/4059118.html








Spanish The U.S. Senate vote to end subsidies for ethanol A majority consisting of U.S. senators from both

parties voted to end more than three decades of

subsidies for ethanol, pointing out that other

programs are often viewed as untouchable could

be cut at a time when Democrats and Republicans

are negotiating a broad agreement deficit

reduction.

These exemptions, which currently costs

USD 6 000 mio/year is often viewed as

untouchable because of the power of voters in

farm states and their legislators.

Presidential candidates often make their

pilgrimage to Iowa every four years, to promise to

keep the exemptions, tariffs and other support to

maintain the production of fuel ethanol from

corn.This year, however, some Republican

candidates have refused to support these tax

breaks.

Vote is not the end of federal support for ethanol

industry. It is believed that the House of

Representatives rejected the bill arguing that

changes to the tax code, according to the

U.S. Constitution, must originate there and the

White House has said that rejecting the law would

be too abrupt. But the vote of 73 27 indicates that

in times of fiscal pressure as the current programs

that eventually were impregnable now could be

vulnerable.


The U.S. Senate vote to end subsidies for ethanol (Contd) The vote was prompted by a coalition of

lawmakers from the left and right who want to

end subsidies for wealthy interest groups rather

than reducing social assistance programs. The

opposition consisted of a block of legislators from

farm states seeking to halt the project.

The Senate measure would also open the door to

attacks on other tax breaks, such as those that

benefit the oil companies, in the interest of

reducing the deficit. Republicans have been

reluctant to do so, but 33 Republicans joined

40 Democrats and independents to support the

bill, which has the effect of raising taxes on oil

refineries.

However, Republican leaders have so far not

shown signs that they are open to other tax

increases and have insisted that these are not

negotiable in the budget discussions.

The political climate has changed rapidly. Just in

December, Congress voted to extend the ethanol

subsidy for another year. But ethanol is under

increasing pressure from various groups,

including the food industry concerned about the

rising cost of corn and environmentalists who had

concluded that corn ethanol was an effective way

to reduce emissions of greenhouse gases.

Currently, much of the gasoline sold at service

stations in the country contains up to 10%

ethanol, in part because federal rules require. The

government of President Barack Obama has

proposed that the mixture is limited to 15%,

despite the objections of automakers worried that

higher levels of ethanol will damage engine

components in cars.





The U.S. Senate vote to end subsidies for ethanol (Contd) Automakers design cars many so-called "flexible

fuel" to operate on ethanol blends up to 85%.

But few stations outside the central U.S. offer

such fuels. The ethanol industry and its

supporters have been preparing for the end of the

tax exemption, criticized the vote. "We need an

easy path, not a cliff, so the only alternative to

oil," said Sen. Amy Klobuchar (D-Minnesota).

"We're talking to stagger to an industry that

provides 10% of the country's fuel supply."

Supporters of repeal said the subsidy of

USD 6 000 mio a year represents a waste to

support a fuel whose promises of cost savings,

less pollution and energy efficiency have not

materialized. "This industry has been receiving

corporate benefits for too long," said Sen. John

McCain (Republican, Arizona), who has been

fighting for years against subsidies.

(online.wsj.com 29 June 2011)

Indonesia

EPA mandate to reduce its cellulosic ethanol again for 2012 Remember five years ago, when cellulosic ethanol

will fill our tanks without eating into food crops?

Environmental Protection Agency did not,

because it must continue to roll back the

minimum renewable fuel standards put in place

by the part of the 2005 Energy Policy Act (SDM.

6). 2012 will be no different from the last two

years, when the EPA backed cellulosic ethanol

target of 100 mio gallons in the tank for 2010 and

250 mio gallons in 2011, to reduce those numbers

only 6.5 mio gallons for the second year . EPA

has proposed a regulation in 2012 the

requirements in 12.9 mio gallons .


EPA mandate to reduce its cellulosic ethanol again for 2012 (Contd) Part of the problem, the EPA says, is that the

supplier does not create biorefineries and thus not

produced the projected production volume in

2005 as HR. 6 signed by then president George

W.Semak. "What bear?" asked the representatives

of Lee Terry of Nebraska. "I would expect mass

production now" he commented at the hearing in

May. In March, President Obama shows

willingness to get four new cellulosic ethanol

refinery up and running by 2013.

Under the original plan contained in HR. 6, the

United States must use one bio gallons of

cellulosic ethanol in 2013, the numbers are also

likely to be rolled back due to lack of fuel

available in the market, although the EPA said it

will continue to evaluate the market and remain

optimistic that celluloic ethanol will play a bigger

role in the mix fuel the nation .

EPA reduces the cellulosic ethanol mandate that

again for 2012. (7x69.com 28 June 2011)

Belarussian

Corn, Soybeans Fall on Speculation of China to raise rates ; Wheat Advances

Corn and soybeans dropped on speculation that

China may tighten monetary policy to contain

inflation , decline in demand for commodities .

Corn for March delivery lost as much as 0.9% to

USD 5.6925 a bushel on Board of Trade

adsotkavo and WAS at USD 5.72. Soybeans for

January delivery fell as much as 0.8% to

USD 12.8525 a bushel and last traded at USD

12.8875. (Continued on next page)

http://online.wsj.com/article/SB10001424052702304186404576390214092594704.html





http://green.7x69.com/tag/cellulosic+ethanol/



http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h6enr.txt.pdf










http://www.7x69.com/id/2011/06/26/epa-reduces-its-cellulosic-ethanol-mandate-again-for-2012/


















http://www.7x69.com/id/2011/06/epa-reduces-its-cellulosic-ethanol-mandate-again-for-2012/







Corn, Soybeans Fall on Speculation of China to raise rates ; Wheat Advances (Contd) China Bureau of Statistics has put forward the

release in November of economic data, including

inflation and retail sales in December 11,

increasing speculation the central bank will raise

interest rates this weekend. Consumer prices were

4.4% in October, fastest pace in two

years, because of higher food prices. The country

is the largest importer of soybeans in the world.

"Corn and soybeans have been under downward

pressure from speculation about interest rate

increase of China, "Toshimitsu Kawanabe, an

analyst at Tokyo-based commodity broker central

to Sit , said today. Overall trading was thin before

the U.S. . Department of the global supply and

demand report tomorrow Agriculture he said.

In China, some soybean crushers to stop

production for profit plunge in the price-control

measures of the government have stalled sales of

soybean oil and meal, the China National Grain &

Oils Information Center said in an e-mailed

statement.

Delay Delivery

Chinese buyers also delayed soybean supplies

some shipments originally scheduled for arrival in

February-April, as slowing sales of soybean meal

caused them to cut production, says researcher

Grain.gov.cn .The demand for protein food falls

as the country's cattle inventory is reduced

researcher wrote in an e - mail a daily report.

Higher profits in the last two months have

prompted farmers to sell animals earlier than

usual , he said.

China's soybean arrivals may begin to fall in

February, after an average of 5 mio t in November

and January, the researchers say. Commercial

soybean inventory China is about 6.5 mio to

7 mio t at the present time, he said.


Corn, Soybeans Fall on Speculation of China to raise rates ; Wheat Advances (Contd)

U.S. Department of Agriculture tomorrow may

forecast that world maize stocks would be

128.7 mio t in September . 30, less than

129.1 mio t estimated last month , according to a

study Bloomberg News, with 17 analysts. Global

stocks of soybean can be 60.5 mio t in September

. 30, compared with 61.4 mio in November .

World wheat stocks will be 171.3 mio t in

May 31, less than 172.5 mio t projected U.S.

Department of Agriculture last month , according

to the survey .

Wheat Revenue

Wheat for March delivery rose 0.7% USD 7895 a

bushel in Chicago and last traded at USD 7 885.

Cost touched USD 8:11 for December 7, its

highest level since August . Sixth

United States, the largest shipper of wheat in the

world, may not have the material and technical

capacity to meet rising global demand , after rains

to reduce the quality of the harvest in Canada and

Australia , the United Nations said .

How many 8 mio t of wheat crop in Australia may

be reduced due to excessive rains and the release

of Canada has suffered from wet weather,

pressing importers to seek alternative suppliers

,said Abdolreza Abbassian , economist at the UN

Food & Agricultural Organization , in an

interview, citing estimates government .

Dry weather in Russia can keep the country from

the export market for another year, and he can

count on Kazakhstan and the Ukraine to meet

domestic shortages of grain, he said.

"If that is the case, we can see the grain prices to

soar again , "Ker Chung Yang , an analyst at

Phillip Futures Pte., said in an e-mail today.





Corn, Soybeans Fall on Speculation of China to raise rates ; Wheat Advances (Contd) Futures rose to their highest in nearly two years in

August, after a severe drought in at least half of

the century in Russia led the third-largest

producer of wheat last year to ban the export of

grain. (news.isc.vn 27 July 2011)

Brazil

Sale of ethanol in jobs fell 8.5% in 2010

The ethanol sales in Brazil fell 8.5% last year

compared to 2009. It was the first decrease in

demand recorded in the last seven years. In 2010,

there were sales for resale 15.1 mio cu m of fuel,

compared to 16.5 mio cu m in 2009.

The information contained in the "Annual Report

of Retail Fuel - 2011", released, 26 days, by the

National Federation of Trade Fuels and

Lubricants (Fecombustíveis). "Considering the

country's economic momentum, the result is bad,"

says the document, which holds that "2010 will

definitely not go down in history as a good year

for the ethanol market."

The technical director of the Union of Sugarcane

Industries (UNICA), Antonio de Padua

Rodrigues, said in a speech during the ceremony

to launch the publication, which has no fault

alcohol because sugarcane to produce ethanol.

Rodriguez showed pessimism about the prospects

for this year, since the estimate is a production

similar to that of 2010, around 25.5 bio liters of

ethanol.

That's because there will be an entry in the

country of 3 mio vehicles - added.


Sale of ethanol in jobs fell 8.5% in 2010 (Contd) In 2010, the fuel sector as a whole grew 8.4%

over 2009. The growth exceeded the 7.5%

expansion of the Brazilian economy in the period.

With the growth of industry, retail grossed over

12% compared to 2009, then computed the

marketing of gasoline, diesel, ethanol and LPG.

Revenue last year was RUSD 223.1 bio against

RUSD 199.3 bio in 2009. The value of revenues

in 2010 is 5.4% of GNP. With this, the

government raised taxes on a total of

USD 64.2 bio in 2009 while revenues reached

RUSD 57.5 bio.

The Fecombustíveis expect a less vigorous growth

in fuel consumption in Brazil this year. The most

pessimistic forecast is credited to the federal

government's decision to put public finances in

order and ward off the threat of runaway inflation,

with a cut of USD 51 bio in federal budget this

year.

"They must have a direct impact on economic

activity and sales of cars that are going to grow,

but at a slower rate than found in 2010," predicts

the annual report.

Cartel

Fecombustíveis's president, Paul Miranda Smith

denied that the industry is cartelized. There is no

villain to rising prices. It is the structure of the

country. You need to rationalize the tax. The tax

burden is high - said Smith

At times, according to Borg, the dealer gives up

his profit margin to sell the fuel in amounts

similar to the nearby competitor. And this

neighbor does not always pay taxes - Smith noted.

According to the executive, the Fecombustíveis

not encourage, participate and do not agree with

the combination of prices. Each one puts the price

you want, he said.

(canalrural.com.br 03 June 2011)

http://news.isc.vn/en/be/markets/corn-soybeans-drop-on-speculation-china-to-raise-rates-wheat-advances.html





starch italics 11th edition

Documents

ethanol industry

ethanol plant

corn ethanol subsidy

ethanol corn leaves

cornfree ethanol

increased use of ethanol

ethanol gasoline futures

colwich ethanol site