Wednesday, August 17, 2011

New Zealand, Philipines and Malaysia Biofuel fever gripping

In New Zealand, LanzaTech has signed an agreement with Pennsylvania-based Harsco to develop plans to present the LanzaTech biotechnology to Harsco's major steel mill customers and explore potential business relationships for installing and operating commercial facilities at selected sites throughout the world.



In the Philippines, the government is considering extending its push for using locally-produced coconut oil as a feedstock for biodiesel when it bumps its blending mandate to 10% in 2015. Coconut biodiesel is currently blended at 2% but a recent study shows that selling the coconut oil into the industry could earn farmers $23.5 million per year.



In Malaysia, Chevron's biodiesel blending facility in Pulau Indah has come online and already 29 service stations in Melaka and Negeri Sembilan offering B5 biodiesel with Techron D. The company expects 73 to come by November when the government has mandated B5 across the country's Central region.

US Government to invest $510M in advanced




A biofuel(biodiesel)pump in Germany.



US announces historic investment to jump-start “drop-in” biofuels at commercial scale.
Jet fuel, diesel in focus — USDA, DOE, USN to share tab, and leverage private investment
The US seeks to definitively break its addiction on imported oil.

In Washington, President Obama today announced that the U.S. Departments of Agriculture, Energy and Navy will invest up to $510 million during the next three years in partnership with the private sector to produce advanced drop-in aviation and marine biofuels to power military and commercial transportation.

The initiative responds to a directive from President Obama issued in March as part of his Blueprint for A Secure Energy Future, the Administration’s framework for reducing dependence on foreign oil.

$510 million US investment – with a minimum of $510M more from private industry
The joint plan calls for the three Departments to invest a total of up to $510 million, which will require substantial cost share from private industry – of at least a one to one match. USDA will take the lead on addressing feedstocks, the DOE will take the lead on technology, and the Navy will provide a market. Each department will share the $510M tab, equally.

The US government funds will be re-directed from already authorized funding, and no additional US spending will be required. The government plans to issue an RFP shortly to bring in private industry into the effort.

“To create and stabilize an industry”
“Our goal is to create and stabilize advanced biofuels industry,” commented Secretary of Agriculture Vilsack, in making the announcement. This is not a fly by night effort – it’s a commitment to real energy future. The president has asked us to make the US more competitive, and to give us real diversification in our energy choices.”

“The Defense Production Act has been on the books since the 1950s,” Navy Secretary Mabus added. “If industries are not existent, government can help industries get off the ground. I can think of no more important strategic issue than energy security.”

“We simply buy too much fuel from out of the country,” Mabus said. “The supply shocks, the price shocks, its simply unacceptable to the military. For every dollar increase in the cost of a barrel of oil, it costs the Navy $30 million.”

Partnering with the private sector
The biofuels initiative is being steered by the White House Biofuels Interagency Work Group and Rural Council, both of which are enabling greater cross-agency collaboration to strengthen rural America. Shortly, the group will issue an RFP to seek out private partners to leverage the government investment.

“Biofuels are an important part of reducing America’s dependence on foreign oil and creating jobs here at home,” said President Obama. “But supporting biofuels cannot be the role of government alone. That’s why we’re partnering with the private sector to speed development of next-generation biofuels that will help us continue to take steps towards energy independence and strengthen communities across our country.”

“This is the first time we have addressed feedstock, technology and market risk at one time,” said USDA Secretary Vilsack. “Previous efforts aimed at one or the other slowed down the process. This is a unique and historic response to the energy challenge.”

Cutting down on $300 billion spent on imported oil
The partnership aims to reduce U.S. reliance on foreign oil and create jobs while positioning American companies and farmers to be global leaders in advanced biofuels production. The United States spends more than $300 billion on imported crude oil per year. Producing a domestic source of energy provides a more secure alternative to imported oil and improves our energy and national security.

“By building a national biofuels industry, we are creating construction jobs, refinery jobs and economic opportunity in rural communities throughout the country,” said Agriculture Secretary Vilsack. “As importantly, every gallon of biofuel consumed near where it is produced cuts transportation costs and, for the military, improves energy security.”

“These pioneer plants will demonstrate advanced technologies to produce infrastructure-compatible, drop-in renewable fuels from America’s abundant biomass resources,” said Energy Secretary Chu. “It will support development of a new, rural-focused industry that will replace imported crude oil with secure, renewable fuels made here in the U.S.”

In June, President Obama signed an Executive Order establishing the first White House Rural Council to build on the Administration’s robust economic strategy for rural America and make sure that continued federal investments create maximum benefit for rural Americans. Administration officials have been working to coordinate programs across the government and encourage public-private partnerships to improve economic conditions and create jobs in rural communities.

Wednesday, August 3, 2011

History of biodiesel: Surpressed now emerges

Source: http://www.cyberlipid.org/glycer/biodiesel.htm


BIODIESEL




WHAT IS BIODIESEL ?

Biodiesel (or biofuel) is the name for a variety of ester-based fuels (fatty esters) generally defined as the monoalkyl esters made from vegetable oils, such as soybean oil, canola or hemp oil, or sometimes from animal fats through a simple transesterification process. This renewable source is as efficient as petroleum diesel in powering unmodified diesel engine.





HISTORY

Despite precise written sources, the concept of using vegetal oil as an engine fuel likely dates when Rudolf Diesel (1858-1913) developed the first engine to run on peanut oil, as he demonstrated at the World Exhibition in Paris in 1900. Unfortunately, R. Diesel died 1913 before his vision of a vegetable oil powered engine was fully realized.



Rudolf Diesel

Rudolf Diesel firmly believed the utilization of a biomass fuel to be the real future of his engine. He wanted to provide farmers the opportunity to produce their own fuel. In 1911, he said "The diesel engine can be fed with vegetable oils and would help considerably in the development of agriculture of the countries which use it".

"The use of vegetable oils for engine fuels may seem insignificant today. But such oils may become in the course of time as important as the petroleum and coal tar products of the present time"
Rudolf Diesel, 1912

After R. Diesel death the petroleum industry was rapidly developing and produced a cheap by-product "diesel fuel" powering a modified "diesel-engine". Thus, clean vegetable oil was forgotten as a renewable source of power.

Modern diesels are now designed to run on a less viscous fuel than vegetable oil but, in times of fuel shortages, cars and trucks were successfully run on preheated peanut oil and animal fat. It seems that the upper rate for inclusion of rapeseed oil with diesel fuel is about 25% but crude vegetal oil as a diesel fuel extender induces poorer cold-starting performance compared with diesel fuel or biodiesel made with fatty esters (McDonnel K et al. JAOCS 1999, 76, 539).
Today's diesel engines require a clean-burning, stable fuel operating under a variety of conditions. In the mid 1970s, fuel shortages spurred interest in diversifying fuel resources, and thus biodiesel as fatty esters was developed as an alternative to petroleum diesel. Later, in the 1990s, interest was rising due to the large pollution reduction benefits coming from the use of biodiesel. The use of biodiesel is affected by legislation and regulations in all countries (Knothe G, Inform 2002, 13, 900). On February 9, 2004, the Government of the Philippines directed all of its departments to incorporate one percent by volume coconut biodiesel in diesel fuel for use in government vehicles. The EU Council of Ministers adopted new pan-EU rules for the detaxation of biodiesel and biofuels on October 27, 2003. Large-volume production occurs mainly in Europe, with production there now exceeding 1.4 million tons per year. Western European biodiesel production capacity was estimated at about 2 million metric tons per year largely produced through the transesterification process, about one-half thereof in Germany (440,000 and 350,000 MT in France and Italy, respectively). In the United States, by 1995, 10 percent of all federal vehicles were to be using alternative fuels to set an example for the private automotive and fuel industries. Several studies are now funded to promote the use of blends of biodiesel and heating oil in USA. In USA soybean oil is the principal oil being utilized for biodiesel (about 80,000 tons in 2003). Details may be viewed on-line through the National Biodiesel Board web site.
Several reviews on sources, production, composition and properties of biodiesel may be consulted for further information:
- Ramadhas AS et al., Renewable Energy 2004, 29, 727-742
- Bajpai D et al., J Oleo Sci 2006, 55, 487
- Durrett TP et al., The Plant J 2008, 54, 593-607
- Jetter R et al., The Plant J 2008, 54, 670-683

As many algal species have been found to grow rapidly and produce substantial amounts of triacylglycerols (oleaginous algae), it has long been postulated that they could be employed to produce oils and other lipids for biofuels (see review in : Hu Q et al., The Plant J 2008, 54, 621-639). A very informative review of the prospects of using yeasts and microalgae as source of cheap oils that could be used for biodiesel may be consulted (Ratledge C et al., Lipid Technol 2008, 20, 155). Although publications of research on biodiesel production are numerous, a systematic review of this topic may be found in a paper devoted to the production of biodiesel from Jatropha curcas oil (Nazir N et al., Eur J Lipid Sci Technol 2009, 111, 1185). This paper provides comprehensive information on biodiesel production, including oil extraction technique and composition, the role of different catalysts in the transesterification process, the current state-of-the-art in biodiesel production, process control and future potential improvement of biodiesel production.
The promise of algae in the production of biodiesel has been evaluated in the end of 1998.
The comparison of the potentiality and sustainability of the use of height algal species belonging to different divisions (macro and microalgae and cyanobacterium) for biodiesel production has been made (Afify MR et al., Grasas y Aceites 2010, 61, 416). Two different extraction solvent systems were used and compared for each algal species in both systems.

As the major byproduct of biodiesel production is glycerol, uses for that byproduct have been investigated. Glycerol can be thermochemically converted into propylene glycol (Chiu CW et al., Ind Eng Chem Res 2006, 45, 791), 1,3-propanediol (Gonzalez-Pajuelo M et al., Metab Eng 2005, 7, 329), lipids (Narayan M et al., Int J Food Sci Nutr 2005, 56, 521) and several other chemicals. Among lipids, it was shown that glycerol can be used to produce docosahexaenoic acid (DHA) through fermentation of the alga Schizochytrium limacinum (Chi Z et al., Process Biochem 2007, 42, 1537; Pyle DJ et al., J Agric Food Chem 2008, 56, 3933).

A review of the use of vegetable oils as engine fuels may be consulted (Ramadhas AS et al. Renew Energy 2007, 29, 727).

The book of Nitske WR et al. may be consulted for the history of biodiesel (Nitske WR, Wilson CM, Rudolf Diesel: Pioneer of the age of power)






MAKING BIODIESEL

What is still widely unknown is that it is easy to make biodiesel for diesel engines using vegetable oil or animal fat. Biodiesel is sold commercially in Europe, America and Australia.
On a small scale, vegetable oil is relatively expensive, but used products from the cooking industry is abundant and can easily and cheaply be converted into a biodiesel fuel that will mix in any quantity with conventional diesel. During heating, the amount of polymers in the oil may increase up to 15 wt% and thus may have negative influence on fuel characteristics. Therefore, the amount of polymers in waste oil is a good indicator for biodiesel production (Mittelbach M et al. JAOCS 1999, 76, 545).
The transesterification process involves mixing at room temperature methanol (50% excess) with NaOH (100% excess), then mixing vigorously with vegetable oil and letting the glycerol settle (about 15% of the biodiesel mix). The supernatant is biodiesel and contains a mixture of methylated fatty acids and methanol, the catalyst remaining dissolved in the glycerol fraction. Industrially, the esters are sent to the clean-up or purification process which consists of water washing, vacuum drying, and filtration.
An in situ alkaline transesterification was shown to be efficient in preparing fatty acid esters, the simple and direct process eliminating the expense associated with solvent extraction and oil cleanup (Haas MJ et al., JAOCS 2004, 81, 83).
Transesterification may be processed using methanol, ethanol, isopropyl alcohol, or butanol, the catalyst being either sodium or potassium hydroxide. It was shown that the methanol/oil molar ratio influences largely the efficiency of the reaction and has important implications for the optimal size of methyl ester plants (Boocock DGB et al. JAOCS 1998, 75, 1167). Optimization of methanolysis of Brassica carinata oil has been examined considering the catalyst concentration as well as the reaction temperature (Vicente G et al., JAOCS 2005, 82, 899).
Various reaction parameters for the synthesis of biodiesel from safflower oil were studied to improve the fuel production which was within the recommended standards with 96.8% yield (Meka PK et al., J Oleo Sci 2007, 56, 9).
Free fatty acids and total glycerol (free and acylglycerols) can initiate engine corrosion and affect human or animal health by emission of hazardous acrolein into the environment. Accordingly, maximum allowable amounts of free fatty acids and acylglycerols are included in the biodiesel specification of most countries.
For glycerol, a maximum permissible concentration of 0.02 wt-% is set by the European norm as well as by the ASTM specification. Therefore, it is necessary to determine the amount of free glycerol in biodiesel. Among others, a simple and rapid method was described using HPLC with refractometric detection (Hajek M et al., Eur J Lipid Sci Technol 2006, 108, 666). A simple HPLC method using a light-diffusion detector was proposed to monitor acyglycerols and free fatty acids concentrations in biodiesel (Kittirattanapiboon K et al., Eur J Lipid Sci Technol 2008, 110, 422). Glycerol can also be estimated very accurately by UV–visible spectrophotometry after derivatization with 9,9-dimethoxyfluorene (Reddy SR et al., JAOCS 2010, 87, 747).
Information on the physical properties described by the standards and details on the standard reference methods may be found in the paper by Knothe G (JAOCS 2008, 83, 823).

It was experienced that 10 l of soybeans produced about 1.9 l of biodiesel. A liter of this fuel contains about 35,000 BTUs.
If fats or solidified oil are used, it will need to heat up to 50°C the mixture prior to mixing with methanol and catalyst.
If free fatty acids are present, as in used cooking oils (estimation with acid number), special pretreatment technologies may be required.

Among lipid-rich materials of low value is soapstock, a co-product of the refining of edible vegetal oils. This mixture is generated at a rate of about 6% of the treated unrefined oil (45 MT per year in USA). An efficient procedure involving acid-catalyzed esterification of soapstock has been described (Haas MJ et al., J Am Oil Chem Soc 2003, 80, 97).

The world biodiesel sources were in 2002 : rapeseed oil (84%), sunflower (13%), soybean oil (1%), palm oil (1%), and others (1%).

Information on making biodiesel may be found in specific websites :


http://www.biodiesel.org
http://www.greenfuels.org/biodiesel/index.htm
http://journeytoforever.org/biodiesel_make.html
http://tech.groups.yahoo.com/group/Biodiesel/
European Biofuel Technology Platform
Biodiesel Resource Page
Biodiesel handling and use guide
Make-biodiesel.org

Tuesday, July 26, 2011

Jatropha, Indonesia pushing on Biofuel

In Mozambique, Sun Biofuels exported its first shipment of biofuel produced from jatropha to be used by the German airline Lufthansa.

Thirty tons of jatropha oil produced in Mozambique’s central province of Manica were crushed by British company Sun Biofuels and sent to Germany. Luftansa is currently seeking 400 million liters of biofuels globally as part of the Company’s move toward mitigating high-cost petroleum and greenhouse gas emissions.

In Borneo, Mitsubishi and the Sarawak Biodiversity Centre will collaborate in exploring algal biodiversity as a possible source of renewable energy. SBC’s work has expanded over the last six years from long term pharmaceutical projects, to shorter term projects in areas such as biotechnology.

Furthermore,in Indonesia, Molindo Raya Industrial announced plans to construct a 55-million liter/year ethanol plant in 2012, following recent land acquisition for the project.

When completed in 2013, the $40-50 million plant will double the Company’s ethanol production capacity using molasses feedstock sourced from a nearby sugar mill.

The company currently owns another 55-million liter/year molasses-based ethanol plant in Lawang, East Java. Approximately 18% (10 million liters/year) of the plant’s ethanol production is anhydrous or fuel-grade ethanol, while the rest is hydrous ethanol used for industrial or pharmaceutical purposes.

Friday, July 22, 2011

How are we going to get from 6.6 million gallons in 2011 to 20 BILLION gallons in 2022?

Here’s how:

By bringing the industry together: At the Advanced Biofuels Markets congress you will hear from CEOs and Presidents who are driving the development of Advanced Biofuels and who will get us to the RFS target, speakers will include Advanced Biofuels Company Executives, Venture Capitalists & Investment Bankers, Corporate Strategic Investment and Alliance Executives, EPC firms and industry suppliers. If you are responsible for making decisions in this sector, you need to be here.

By not going it alone: To reach this goal the industry has to work in concert –networking to build new relationships, catching up with buddies, partnering and collaborating are the key to success. As Jim Lane (Biofuels Digest) always says ‘Go out there and network like crazy!’ For most of you networking is the most important reason to attend an event, so for 2011 we are actually having an entire day dedicated to structured networking: roundtables, one to one meetings and speed networking. No other biofuels event offers this comprehensive chance to have a conversation with literally every conference attendee (450 expected). That equates to 20 hours over 3 days

By knowing what technologies and services to use: To achieve the RFS targets, the industry needs to produce viable, commercial-scale advanced biofuels. What technologies are working? Which companies can help you achieve your goals? What support services are available out there? Our Exhibition Hall will be the hub for networking and business development, giving you a chance to network with exhibitors, hear about their products and understand your needs.

Meanwhile in India, Eco Green Fuels and World Health Energy has signed a LOI for a comprehensive joint venture to provide 1 million liters of algal oil to EFG by the last quarter of 2012.

World Health Energy Holdings, Inc. recently acquired GNE-India, an algae technology company with the distribution and licensing rights to a unique and innovative technology, the GNE GB 3000 system, to grow algae quickly and efficiently for the production of biodiesel and commercial fish food protein.


source:http://www2.greenpowerconferences.co.uk/EF/?sSubSystem=Prospectus&sEventCode=BN1111US&sSessionID=d449afda8908fbb317314c318b883027-3036717

Friday, July 15, 2011

PNG urgently needs replacement fuels

The need for replacement fuels.

The need for energy has grown drastically proportional to population growth, and 21st century energy demands have been very high based on global demands analysis. That growth will elevate even higher as world population doubles as near as 2050. Every day, hundreds of millions of tons of energy sources are burned to produce to sustain human activities. Should that activity be industries, transport or power generation such as coal for electricity, one way or the other, non renewable energy sources has been exploited at a faster rate. This trend is unhealthy for the future generation, environment and energy sustainability. Putting perspective into reality, non renewable energy such as fossil petroleum cannot sustain the world in the next hundred year period. The desperate need to sustain energy supply to meet demands resulted in energy companies putting over billion dollars in renewable energy production, some of the major energy players such as Exxonbil, Origin energy, BP has in the recent times invested heavily in biofuels. What is the big fear? Those lucky oil rich regions will play fuel war putting majority into social chaos. To be more clear, those lucky rich will have the upper hand to dictate our economics, politics and our development. Is that far-fetched or for real?
The powerless ICCC of PNG,is good at reporting fuel price from time to time in the daily papers, besides they can do nothing. The reality is as worse can one see from outside PNG. Fuel price constant warning is pushing goods and services prices higher each day coupled with government taxes, a certain good doubles in prices as it moves away from the town/cities. The manifestation in magnitude does not need a research scientist from National Research Institute (NRI) to reveal the trend, its already and and at its worse.
Petrol, diesel, kerosene, methane, propane and even aviation fuel prices has increased prices in the past six months. Public and private institutions have over these periods gone to tip-tuck trying to adjust and sustain operations and in many cases let loose this tsunamic economic stress to the masses causing huge economic struggles among PNG nationals at all levels. Many learning institutions, at least the secondary schools have been reported to be using firewood to fuel cooking three times a day. Kerosene and gas stoves are very expensive to utilize. Asaroka Lutheran Secondary in the Eastern Highlands province, I last attended in 1997 has been reported to resort to firewood according to Ezekiel Gene who is my brother who last attended in 2010. Unfortunately, school administration will pass increase tuition fee to parents to meet high energy price. Other learning institutions have no options, unless the government is smarter.
As a graduate Bioenergy, during my study years in China I have encountered Chinese biofuels energy self reliance, that is they have no foreign monopoly on their fuel supply. Most restaurants and household would use solid briquette or carbonized fuel and methane gas. These fuels are produced by local industries and supplied locally, kerosene, propane and fuel shortages have been drastically minimized to no market for them in most of China. What fuels do the 1.3 billion population cook for their feed? biofuels! These fuels are not new concept, researches revealed that in the past 60 years, more than 73% of the Chinese population have been using methane produced locally, and since then 80% or more are using methane in their homes. Home methane production is a norm and local government assist the populace to fully develop local energy concepts and that’s Biofuels.
The other is the solid fuel or the carbonized cellulosic fuel or pressed and glued called briquette. Most restaurants in China uses this fuel and is a huge industry, Kerosene, I have not encountered one and seems intelligent Chinese eradicated it or so I assume.
With hands-on, reality experience and encounters with chinese in China, the bioenergy processing and with studies and researches, I have no doubt that the solid energy industry would satisfy PNG. Papua New Guinea can drastically reduce kerosene and cooking gas dependency.
In this article, I would like to lower the veil to reveal what dynamic solid fuel opportunity is at our disposal, furthermore, will expound some brief processing details for potential developers in PNG.
Cellulose materials such as wood, leaves, barks, roots, shrubs, timber wastages such as from industries, agro wastes are the potential raw materials for solid fuel production. These cellulosic materials need to be converted to carbon. Just how can that be done? That is a good question for beginners, the carbonizations of these materials need burning, however, this burning is controlled to accommodate carbon formation. First you need a combustion chamber, this chamber is designed to permit limited oxygen , this limited oxygen burning will directly facilitate cellulosic materials to dark carbonous material formation. From this stage, the carbonized material or the solid fuel can be used directly or further processed to briquette.
Briquette processing is not a new technology; it has been developed and used, marketed worldwide and widely accepted as fuel equivalent to kerosene or gas. The carbonized material lacks gluing agent and is itself unable to give a compact solid feature for cooking. This material is first grounded so can be pressed and glued using specialized flammable glue. Briquette can be pressed into different sizes depending on the stove design, demand and operational ability/capacity.
The most important part to solid fuel development, marketing and utilization is its stove design and external hybrid system. The carbonized cellulose and briquette are compact energized solid fuel unlike liquid fuel. This means they need specialized design to easily burn off, the design and its burning system must make sure enough air is supplied. The stove can be designed to hold pots and pans either single or two with ranging sizes from 3 kg to 50kg cooking capacity, a metallic structure resembling a bowl so that the carbonized fuel or the briquette can be placed at the bottom. Further down the bottom of the bowl you have to accommodate the air ventilation. There are two mechanisms for air supply, first is the natural air current where as hot air moves out, cold air comes in blowing the furnace to facilitate burning. The most efficient would be the electrical-mechanical blowing by means of blower. The blower can vary depends on the size of the stove, use and kind of pan to facilitate cooking. The blower is placed at the bottom of the stocked solid fuels and motors the blowing into glowing flamed coal like matter. The heat content of the solid fuel is nearer than the methane and propane. The compacted solid fuel releases much heat per gram since being compacted, the gnawing oxygen rich air promotes efficient burning which furiously cooks food in less time.
My solid biofuels hybrid system is when the system is attached to a solar powered blower. The stove with solid fuel, solar powered blower is truly a design that is compactable to suit our current fuel need. Cities and towns need that system, a little power and a little solid fuel is just enough to serve three 3 or more pots of food.
My former high school, Asaroka Secondary, an institution vital for the development of this likewise other schools nationwide will go to firewood or other undeveloped alternative fuel source or simply pass higher tuition fees directly putting load on many poor parents. Unfortunately, PNG will have to put up with high fuel cost because government is not thinking. However, I am open to provide technical support and advice to any potential developers and investors for the good of the people and the nation as a whole.
The author was a freelance consultancies in solid, liquid and gas bioenergies for clients in Yemen, India and the USA. He specializes also in algae biofuels (biodiesel, ethanol, and methane), syn gas, methanol, and starch conversions, waste to energy, solid fuel development, digester designs, and stove and biofuels instrumentations.


Gene Drekeke Iyovo , Msc, Bsc
Occupation: Engineer, Bioenergy.

Tuesday, June 1, 2010

Latest Biofuel news around the world

Last week, BP committed $500 million in a ten-year year research program to study "the impact of the Deepwater Horizon incident, and its associated response, on the marine and shoreline environment of the Gulf of Mexico." It recalls the $500 million BP invested in 2007 in the Energy Bioscienes Institute. Deepwater indeed for the oil industry this year - but if there are deep troubles, there are deep pockets.

Pockets are a little smaller around the biofuels industry, where this past week in Washington, four of the companies which have received investment support from oil majors or have formed investment partnerships with them - Coskata (Total), HR Biopetroleum (Shell), Solazyme (Chevron), Algenol (Valero), visited with reporters to discuss "the industry's #1 ask" this political season: the need for sustained and diverse tax credits.

Their goal, to develop "parity with solar and wind" in a tax credit design that unleashed billions in investment for other renewables from private equity.

But - private equity, schmequity. The $500 million committed by BP this week to studying the impact of Deepwater Horizon would have funded virtually any first-in-kind advanced biofuels project currently stalled for lack of finance, many of them already receiving investment from the oil industry and seeking, through "#1 asks" like HR 5412, to deploy their technologies at scale.

In the wake of the massive Gulf of Mexico oil spill, it’s clear the U.S. needs to end its crude-oil addiction as much to protect its economy as the environment.

To move the future forward, America needs one company in particular to come through on behalf of all Americans. In a cruel twist of fate, that company is ExxonMobil (XOM), which is working on arguably the most important energy-research project in the world today. Namely, a project to replace crude with genetically-modified algae that can be cost-effectively refined using existing refinery equipment.

A year ago when Exxon announced its algae project with biotech pioneer J. Craig Venter, the company said that it would take at least 5-10 years to produce commercial quantities of algae-based fuels. “My suspicion, and it’s just a suspicion, is that they still see it as five to 10 years away,” says Addison Wiggin, editorial director of The Daily Reckoning, who has been looking into the Exxon-Venter project for a forthcoming documentary on entrepreneurs in the post-crisis financial world.

Too long. As video of the black death pouring out of that ruptured pipeline gushes onto every American TV and computer screen, it's time for President Obama to declare a new Manhattan Project, a new man-to-moon space race. The goal must be to take America off its crude addiction in less than five years with a literally home-grown industry that will create tens of thousands of agricultural and other jobs without jeopardizing the existing oil industry’s trillion-dollar infrastructure.

Exxon shares would surge the moment this plan became publicly known; however, the President can’t allow the investor payoff to be too bountiful. There will have to be safeguards against Exxon controlling the applicable patents in order to prevent the company from controlling America’s energy future.

Algae oil is no panacea, the President will further need to say. Accelerated development of plug-in electric and all-electric vehicles is needed in order for the U.S. to have, by 2020 or sooner, a nationally-secure, environmentally-sound transportation infrastructure.

In a second twist of fate, not only would Exxon shares likely surge in price, so too might the shares of utilities that generate a lot of electricity from coal. Companies such as Duke Energy (DUK), Southern (SO) and FirstEnergy (FE) might lose their pariah image if part of the President’s strategy were to capture coal plants’ carbon dioxide and use it to accelerate algae growth.

For risk-inclined investors who believe that all this may be on the way, a company that might be worth a closer look right now is tiny OriginOil. (OOIL.OB). The company has started signing up customers as it begins commercializing a technology for producing biofuel from algae using CO2 emissions captured from smokestacks.


International news:

In Canada, the Canadian Renewable Fuels Association released a report on the Total Economic Impact Assessment of Biofuels Plants in Canada, which found that the construction of 28 renewable fuels plants in Canada generated $2.949 billion in economic activity. The construction activity created 14,177 direct and indirect jobs during the respective construction periods.

In Australia, Mission NewEnergy Limited (ASX: MBT) announced that the commissioning of its second 75 Mgy Axens 2nd Generation biodiesel trans-esterification refinery has been completed. Mission expects to begin producing under its Valero contract once the U.S. Environmental Protection Agency has accepted palm oil as an approved pathway, and makes palm oil biodiesel eligible for Renewable Identification Number (RINS).

In Barbados, Amelot Holdings and Barbados National Oil Company have signed an MOU for the ownership and operation of a biodiesel production facility, using waste cooking oil as a feedstock. BNOCL also plans to develop B20 pumps for biodiesle distribution. The facility will use containerized modular equipment and proprietary feedstock technology.