Wednesday, November 23, 2011

Malaysian biodiesel may be appearing in Europe, but as yet, it is still banned from the US

In March this year Mission NewEnergy’s plant in Kuantan became the first biodiesel facility outside of Europe to gain full by International Sustainability Carbon Certification (ISCC) certification.
This certification demonstrates compliance with German and European greenhouse gas (GHG) saving targets and means the Asian producer can export its biodiesel to Europe.
The Renewable Energy Directive requires a minimum of 35% saving in GHG emissions from the use of biofuels and bioliquids to qualify for the subsidies and other privileges. Using Felda’s crude palm oil to produce biofuel results in GHG savings of 47% and 41%, respectively.
Since achieving this certification, Mission NewEnergy has begun selling to Rotterdam. The company has also secured a six month contract for supply commencing in January 2012 (set up for the 2012 European summer) with a global oil major.
The same company has also just become the first jatropha producer to be ISSC certified.
This means the producer can now make the most of the multi-billion dollar opportunity the European market represents, something many other producers are also keen to have.
Vasu R. Vasuthewan, sales and marketing director at Mission NewEnergy and ISCC board member, will be speaking about these experiences at the upcoming Bioenergy International Asia expo & conference in Kuala Lumpur on 7-8 December 2011.
He joins other certification bodies including SGS and Bureau Veritas to give delegates an indepth understanding of what is required to meet European and US sustainability requirements.
As yet Mission NewEnergy has not been able to supply any of its biodiesel to the US. The company submitted an application for its g-Palm to be approved by the EPA on 15 September, and the product is currently under evaluation.
Other key speakers include Khoo Hock Aun, CEO of Cosmo Biofuels, TC Long Tian Ching, Managing Director, Vance Bioenergy, Rosediana Suharto, Indonesian Palm Oil Commission, Azman Bin Ahmad, CEO, Felda-Johore Bulkers and many more.
These industry experts will look at the production capacities and challenges in different Asian markets. For example, the Malaysian government officially launched the much awaited B5 palm oil biodiesel blending mandate on 1 June 2011. This is expected to go nationwide by 2013. With the introduction, Malaysia becomes the second country to implement the use of B5 - Indonesia has been using it since 2006 in selected cities and provinces. This follows Thailand, which introduced a B2 mandate in April 2008 and the Philippines introduced B1 in 2007.
Biofuel producers in Asia are facing mixed fortunes this year due to the impact of raw material costs on the competitiveness of different biofuels around the region. For everyone producing, trading, supplying, servicing or working in this sector, this event cannot be missed.
We hope to see many of you there!
Best wishes,
Rebecca

Tuesday, November 22, 2011

Biofuels, biomaterials growing at 3X the global GDP rate

Biofuels, biomaterials growing at 3X the global GDP rate
Jim Lane | October 19, 2011
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Survey says: Biofuels and biomaterials growing rapidly, seeking new friends, markets
In Florida, Biofuels Digest reports that 79 percent of bioenergy executives are more optimistic both about their organization’s prospects for growth and industry growth, than 12 months ago, and that 72 percent are more optimistic about the industry’s prospects than at this time in 2010.
The findings were among the highlights of the Q2 2011 Bioenergy Business Outlook Survey conducted by Biofuels Digest and co-presented by the Biotechnology Industry Organization (BIO).
Growing at 3X the global GDP growth rate, jobs up 5% in next 12 months
Overall, the survey painted a picture of an industry that is expecting to grow at nearly triple the growth rate of the world economy (8.9 percent for the industry, compared to 3.2 percent for the total economy), but expecting to find generally less external support in the form of tangible support from government, and less IPO activity.
In Q1 of this year, 39 percent said that favorable government mandates, tariffs or tax credits would be a strong growth driver, but only 31 percent said so in the Fall survey.
“The bottom line: the biomaterials industry is looking for new friends, new markets, new avenues to finance,” commented Jim Lane, editor and publisher of Biofuels Digest. “They understand now that, in order to fulfill their substantial promise, they not only have to pioneer novel technologies, but novel business models and pathways to commercialization.”
The nature of financing is changing. Merger activity is expected to increase. The industry sees the IPO window as substantially less open in the next 12 months than the past year, but report a generally higher success rate in obtaining new finance.
Geographies are changing in importance for them. They generally cite the US, EU and Brazil as the key markets for growth. Fast growing in importance: Australia/New Zealand and the Pacific, cited by 23 percent of respondents as a key growth geography (“outside of your home country”), up from 17 percent in the spring survey and 13 percent in Q1 of this year.
Respondents continue to chill out on the prospects for cellulosic ethanol. Though 50 percent of respondents expect that sector to reach 1 billion gallons in capacity, 67 percent indicated the same belief in Q1 of this year. Holding steady or increasing in importance, among the fuel types: aviation and algae-based fuels.
Revenue growth
Respondents said that they expect their firms to grow by a median 8.4 percent over the next 12 months, down from a median of 11.6 percent in the Q12 survey. Industry revenue is expected to grow 8.9 percent, up from 8.45 percent in the spring survey.
Respondents indicated that they have an average of $128 million in revenues per company.
Job growth
Those that are hiring, expect to hire big. The average job growth rate per company is expected to reach 50 percent in the next 12 months, but the median stands at 4.9 percent, meaning that 50 percent of companies expect to grow their employee base by less than 5 percent. 31 percent of respondents said that they did not expect to add new headcount in the next 12 months.
Respondents indicated that they have, on average, 102 employees per company.
IPO activity
58 percent of respondents said that they expect to see more completed IPOs in the next 12 months, compared to the past 12. That’s sharply down from the 74 percent who answered “yes” in the spring survey.
Mergers and consolidations
77 percent of respondents said that they expected to see more mergers and consolidations in the next 12 months, compared to the past year., That number has risen slowly but steadily throughout the year, up from 74 percent in the spring survey and 72 percent in the Q1 poll.
Financing
48 percent of respondents tried for new financing in the past 12 months, down from 56 percent, and 53 percent of those that tried were successful. 56 percent said that they were going for new financing in the next 12 months.
Growth drivers
Respondents pointed to the rising demand for fuels as the single biggest driver of growth, with 54 percent tipping this as a major factor. 15 percent cited the entry of new companies, a small number but sharply up from the 9 percent cited in the spring survey, while 21 percent said that increased production capacity was driving growth, up from 15 percent in the spring.
Policy
Despite clouds over government activity in the US, 64 percent described the government attitude as supportive, up from 62 percent in the Q2 survey.
Among preferred policies, executives pointed strongly towards a carbon price, with 36 percent of respondents indicating this would be a strong growth driver, and increased subsidies and incentives were cited by 43 percent, up from 37 in the previous survey. 30 percent pointed to fuel-neutral legislation, while only 16 percent indicated that new mandates would drive growth.
Fuels
Among fuels, 50 percent of executives said they expect cellulosic ethanol, to reach 1 billion gallons by 2020, down from 52 percent in the spring. Aviation was flat at 50 percent, biobutanol fell to 23 percent from 28 percent in Q2. Gaining momentum was renewable diesel at 52 percent, up from 50 percent in the Q2 survey, while military biofuels jumped sharply from 34 to 42 percent.
Geography
68 percent of survey respondents are headquartered in the North America, 12 percent in Europe, 8 percent in Asia, 5 percent in Latin America and 3 percent in Australia/New Zealand.
In terms of company operations, 74 percent said that they operated in the US, 30 percent in Canada, 33 percent in the EU, 20 percent in East Aisa, 19 percent in South Asia, and 18 percent in Australia/NewZealand and the Pacific Islands.
Looking at regions that are key to company growth, 44 percent cited the US, up from 37 percent in the spring survey; 35 percent cited Canada, up from 31 percent, and 22 percent cited Australia/New Zealand and the Pacific, up sharply from 17 percent in the spring
….vacancy
Description:
Key Leadership Opportunity - Queensland, Australia
New Phase plant investment - growth industry
Excellent salary package, full relocation and genuine career opportunity

United Petroleum is an independent and successful Australian owned oil company which has recently acquired Dalby Bio-Refinery Limited (DBRL). Leading a highly skilled team at an exciting time for the Ethanol business, DBRL is seeking an experienced General Manager for the management of Health, Safety, and Environment, the plant operations, plant management and capital expansion programmes.

The ideal candidate will be able to demonstrate:
Proven experience in managing chemical production plants or fuel refineries
A Degree qualification in chemical engineering or chemistry
Production, quality and cost budget achievements
Project management / direction in major capital expenditure
Experience in the development of plant maintenance programmes
Strong financial and commercial acumen
Experience working in a quick decisions based business culture
Previous experience in an Ethanol plant will be a distinct advantage

In return United will be able to offer an exciting opportunity within a growth sector, an excellent salary package and the ability to become instrumental in the business moving forward.

For a confidential discussion please call Peter Starling on +61 7 3405 3346 or +61 (0) 449 903 792. Please forward all applications to peter.starling@kellyexecutive.com.au

Friday, November 4, 2011

Jatropha-Australia recent.

In Australia, Mission NewEnergy reports they have materially completed their 2011 Jatropha tree planting season, adding 40,264 new acres and 14,331 new Jatropha contract farmers. The Company has reported strong progress on the expansion of its acreage profile and now has a total of 234,587 acres under contract representing a total of over 164 million trees, and 4.7 million barrels of jatropha oil when the trees mature.