The US biofuel industry is rapidly growing and leading the global biofuel industry due to government support, coming up of new projects and plants, and rising domestic demand.
US Biofuel Market Analysis, a new research report from RNCOS, anticipates the US biofuel industry, particularly ethanol production, to lead the world biofuel production during 2008-2017.
As per the report, the US has emerged as the world's largest biofuel industry, with its ethanol production soaring to 4.9 billion gallons in 2006, an increased of around 1 billion gallons from the production level in 2005, and contributed 36% of the total global ethanol production. While the growth in ethanol production was substantially high in 2006 from 2005, the industry still continues to enhance its production capacity.
Seeing this remarkable performance of the US biofuel industry, a senior research analyst at RNCOS comments that it will not be wrong to say that the global ethanol industry is centred around the US.
Moreover, the US is expected to lead the global ethanol production in future. The main reasons behind this projection, says the analyst, are the long-term government intervention (Renewable Fuels Standard policy) and setting up of more ethanol plants. Besides, continuous rise in domestic ethanol demand will encourage domestic producers to keep adding to the production volume in coming years.
The RNCOS research says that this radical rise in ethanol production in the US has virtually affected every aspect of field crops sector - from domestic demand and exports to prices, acreage allocation among crops, and even the livestock sector. Under such commodity market effects, government payments, farm income and food prices have changed significantly.
Waste cooking oil will be collected from households and restaurants to produce the biodiesel required to fuel the vehicles. The higher cost of biodiesel will also be absorbed by state-run Chinese Petroleum Corp., Taiwan (CPC) and the private sector's Formosa Petrochemical Corp.
The mandate is expected to cut Taiwan's diesel consumption by 38.5 million litres a year, equivalent to about 1 million barrels of imported crude oil.
The Taiwanese government decided to roll out an island-wide biodiesel programme after a successful biodiesel trial in several parts of the island. More than 500 buses have been running on 2-5% biodiesel fuel blend in Kaohsiung City and Chiayi County in southern Taiwan since January 2007.
The original capacity of the Zeitz location has been increased by a further 100,000 m³ to 360,000 m³
Germany-based bioethanol producer CropEnergies has completed the expansion of capacity at its bioethanol plant in Zeitz, Saxony-Anhalt.
After a construction period for the extension of 13 months, the original capacity of the Zeitz location of 260,000 m³ of bioethanol a year has been increased by a further 100,000 m³ to 360,000 m³. The increase was carried out in two stages.
The existing plant, which processes cereals and sugar syrups into bioethanol, was expanded by an additional 40,000 m³ of bioethanol a year. The newly-built plant with capacity of 60,000 m³ a year exclusively processes sugar syrups originating from the neighbouring sugar factory. With this expansion, the Zeitz factory is Europe's largest bioethanol plant.
At the Zeitz plant, a total of over €50 million has been invested in the expansion of the bioethanol production.
At the end of the year, a further plant with a capacity of up to 300,000 m³ of bioethanol a year will go on stream in Wanze, Belgium. At the end of financial year 2008/09, CropEnergies will then have a capacity of over 700,000 m³ of bioethanol available a year.
The provincial government of Ontario, Canada, has awarded $7.5 million (€4.77 million) for two biofuels projects.
Both projects intend to develop biofuels made agricultural byproducts, such as corn husks and manure, instead of from crops.
Approximately $5 million of the total funding is going to a research centre at the University of Western Ontario's experimental field station.
The second project will take place at a London, Ontario-area farm and focuses on generating green energy from manure and waste water.
Ontario produces close to 50 million tonnes of biomass a year, which has the potential to produce enough energy to power 7 million homes.
Since 2003, the Ontario government has invested more than $600 million in research devoted to green technologies and initiatives.
The Italian Biodiesel Association has stated that five new biodiesel plants are ready to come online and will increase national biodiesel capacity from 1.9 million tonnes and to 2.7 million tonnes.
The 12 existing plants produced only 469,707 tonnes due to high feedstock costs last year, down from more than 590,000 tonnes in 2006. The association is projecting that total production will reach 600,000 tonnes in 2008 and 800,000 tonnes in 2009.
Italian research has detailed the potential to use tobacco oil as a biodiesel feedstock. Researchers say that tobacco is a higher-yield crop than comparable biodiesel feedstocks.
The Chinese and Italian governments have initiated a feasibility study for jatropha biodiesel at Sichuan University. The project received $650,000 (€409,000) in support from Italy. The project is the third signed by Italy and China, promising cooperation in biofuels research since mid-April.
In April, Oxem Group began construction on a 60 million gallon a year canola-based biodiesel plant near Pavia, in Lombardy. Oxem will invest $100 million in the project that will use feedstock from France, Germany, Romania and Hungary. Last year, only 45,000 hectares of Italian crops produced feedstock for biodiesel.
In February, Mossi & Ghisolf announced that it will construct a 66 million gallon a year ethanol plant in Piedmont, and convert it to cellulosic feedstocks in the long run. Mossi & Ghisolf say the $148 million plant would be operational in 2009, and converted to cellulosic ethanol in a second, $177 million upgrade.