Scientists patent synthetic life - promise for 'endless' biofuels

Scientists at the J. Craig Venter Institute have applied for a U.S. patent on the techniques and biological building blocks needed to create the world's first synthetic life-form, a minimal bacterial genome. According to the patent application, this is "a minimal set of protein-coding genes which provides the information required for replication of a free-living organism in a rich bacterial culture medium."

Dr Craig Venter himself is not named in the patent, but he is the brain behind the synthetic form of life. The man who led the private sector effort to sequence the human genome, has been working in the field of synthetic biology for years to create a man-made organism. The J. Craig Venter Institute's U.S. patent application now claims exclusive ownership of a set of essential genes and a synthetic "free-living organism that can grow and replicate" made using those genes.

Interestingly, defending the patent application, Dr Venter immediately pointed out these artificial life forms could be designed to make 'endless' biofuels and absorb carbon dioxide to mitigate climate change. The effort could result in "designer microbes" that produce biofuels by converting biomass in a highly efficient way into ethanol, biogas and biohydrogen. They could also be engineered to remove carbon dioxide (CO2) and other greenhouse gases from the atmosphere.

'Microbesoft'
The publication of the patent application has angered some environmentalists. The Canada-based ETC group, which monitors developments in biotechnology, called on patent offices to reject applications on synthetic life forms. Its press release sounds alarmist, using terms like "Microbesoft," evoking Dolly the cloned sheep and naming the organism Synthia.

Jim Thomas, of ETC Group: "These monopoly claims signal the start of a high-stakes commercial race to synthesise and privatise synthetic life forms."

"For the first time, God has competition. Venter and his colleagues have breached a societal boundary, and the public hasn't even had a chance to debate the far-reaching social, ethical and environmental implications of synthetic life." - Pat Mooney of the ETC Group.

The J. Craig Venter Institute's has filed an international application at the World Intellectual Property Organization (WIPO) which names more than 100 countries where the institute may seek monopoly patents.

Second life, Synthetic life
Dr Venter's team intends to construct an organism with a "minimal genome" that can then be inserted into the shell of a bacterium. By removing genes, one by one, from a bacterium called Mycoplasma genitalium they identified the minimum number of genes required for this particular organism to replicate, or reproduce, in its controlled environment.

They have been able to remove 101 of its 482 genes without killing the bacterium, meaning that 381 were required for replication. But generating a man-made living organism from the bottom up requires much more than just its minimal genome. For example, in order to get the genes to do something, there have to be chemicals to translate the genes into messenger RNA and proteins:
bioenergy :: biofuels :: energy :: sustainability :: biogas :: biohydrogen :: ethanol :: artificial life :: genetics :: genome :: bacteria :: synthetic biology ::

Scientists around the world have been wrestling with the task of generating a so-called free-living synthetic organism for years.

In order to push the effort forward, Dr Craig Venter founded Synthetic Genomics, Inc., a company developing the new scientific processes to enable industry to design and test desired genetic modifications. The synthetically produced organisms with reduced or reoriented metabolic needs under development will enable new, powerful, and more direct methods of bio-engineered industrial production - so Venter thinks.

But designing an entirely new synthetic organism aimed at performing specific tasks is something else. When asked whether the world's first synthetic bug was thriving in a test tube, Dr Venter said: "We are getting close."

Earlier this year, scientists from Virginia Tech, Oak Ridge National Laboratory (ORNL), and the University of Georgia announced they had successfully used techniques from synthetic biology to create a combination of 13 enzymes never found together in nature and that can completely convert polysaccharides (C6H10O5) and water into biohydrogen when and where that form of energy is needed (earlier post).

Image: M. genitalium, one of the bacteria used in Venter's "minimal genome" project.


More information:
United States Patent Application: 20070122826, Glass; John I. et al., "Minimal bacterial genome", May 31, 2007.

For an interesting view on 'minimal genomes', see the Genome News Network: Another Minimal Genome: Microbe Needs Just 271 Genes - April 18, 2003.

Wired: Scientists Apply for First Patent on Synthetic Life Form, June 7, 2007.

BBC: Patent sought on 'synthetic life' - June 8, 2007.

ETC Group: Patenting Pandora's Bug - Goodbye, Dolly...Hello, Synthia! J. Craig Venter Institute Seeks Monopoly Patents on the World's First-Ever Human-Made Life Form - June 7, 2007.

The Age: Designer bug holds key to endless fuel - June 10, 2007.

Biopact: Boost to biohydrogen: high yield production from starch by synthetic enzymes - May 23, 2007

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Researchers: 'Food miles' too simplistic - 'green' needs 'red'

Earlier we reported about small farmers in the South who are getting confused about what they see as trendy but problematic concepts such as 'food miles', 'environmental footprints', and certified fair trade products. Consumers in the North need to take on a broader perspective on the world's food system. Buying local food may be beneficial from a local perspective, but new research indicates this may actually be bad for the planet's environment as a whole.

Organic not best for environment
Criticism on some of these ideas is increasingly coming from scientists in the wealthy countries themselves. First of all, organic fruit and vegetables may be healthier for the dinner table, but not necessarily for the environment, a new University of Alberta study shows.

The study, conducted by a team of student researchers in the Department of Rural Economy at the University of Alberta in Edmonton, Canada, showed that the greenhouse gas emitted when the produce is transported from great distances mitigates the environmental benefits of growing the food organically. “"f you’re buying ‘green’, you should consider the distance the food travels. If it’s travelling further, then some of the benefits of organic crops are cancelled out by extra environmental costs," said researcher Vicki Burtt.

Burtt and her fellow researchers compared the cost of ‘food miles’ between organic and conventionally grown produce, and found that there was little difference in the cost to the environment. This was already established by other scientists (earlier post).

Food miles simplistic
But the concept of 'food miles' itself is highly simplistic and should not be used alone to point consumers to green products. Food miles are defined as the distance that food travels from the field to the grocery store.

Consumers need more in-depth information about the environmental impact of food to make eco-friendly choices, according to researchers Dr Fairchild (University of Wales Institute in Cardiff) and colleague Andrea Collins at Cardiff University, who have carried out a detailed analysis of the ecological costs associated with food production. In their study published in the Journal of Environmental Policy and Planning, they argue that the focus on "food miles" is missing the bigger picture and may be counter-productive.

Some food stores in Europe have announced that they will label products that have been transported by air. But according to the researchers, only around 2% of the environmental impact of food comes from transporting it from farm to shop. The vast majority of its ecological footprint comes from food processing, storage, packaging and growing conditions. Food grown locally could have a considerably bigger footprint than food flown halfway around the world, according to the scientists. Consumers who make their choices on air miles alone may be doing more environmental harm, they think.

Putting the red in the green
"I'm a bit worried about the food miles [debate] because it is educating the consumer in the wrong way. It is such an insignificant point," says Ruth Fairchild at the University of Wales Institute in Cardiff.

A better system, she argues, would be one that considers all environmental impacts from farm to dinner plate. One option is ecological footprint analysis, which takes into account the amount of land needed to provide the resources to produce food, both directly on the farm and indirectly from the energy that goes into growing, harvesting, processing, packaging and transporting it. A food's impact is measured in "global hectares", the notional land area needed to produce it. But she thinks that consumers are not yet ready for ecological footprint labelling and the science behind it is not yet watertight.

But even the concept of ecological footprints is incomplete. The global food-system is an integrated system that links farmers from the South to those in the North. On a 'flat', globalised planet, trade distances are no longer important (transport literally constitutes only around 2% of the environmental footprint of food). What matters - for the environment too - is social equity:
bioenergy :: biofuels :: energy :: sustainability :: climate change :: greenhouse gas emissions :: agriculture :: food :: ecological footprint :: carbon balance :: trade :: social equity :: social sustainability ::

In case European and American consumers were to analyse the environmental impact of the food they buy, they should include the potential social effects of their refusal to buy food grown in the South. Consumer action based on first-order environmental criteria (such as the ecological footprint), may result in negative second-order social effects for the millions of small farmers in developing countries who export to wealthy markets.

These negative social impacts are in themselves an environmental issue, because the risk of farmers falling back into poverty because of 'green' consumer behavior in the West would have disastrous effects on the ecosystems of the South. There, poverty is by far the single biggest factor driving such problems as deforestation, biodiversity loss, soil depletion and pressures on wildlife. Export earnings - from food flown to Europe and the US - allow farmers in the South to invest in more environmentally friendly agriculture.

In short, the consumer in the wealthy West needs a far more complex, integrated and global perspective on the food system which must include social sustainability factors. It is imperative to ensure that small farmers in the South can maintain a reasonable level of prosperity, so that they are not forced to fall back to environmentally destructive farming practises such as low yield slash and burn agriculture.

Green needs to be accompanied by some 'red'. But the question is whether consumerist cultures are ready to deal with complexity.

More information:
Collins, A. and Fairchild, R. (forthcoming): "Sustainable food consumption at a sub-national level: an ecological footprint, nutritional and economic analysis", Journal of Environmental Policy and Planning, see Dr Andrea Collins' webpage at the Center for Business Relationships, Accountability, Sustainability and Society.

Eurekalert: Organic Food Miles take toll on environment - June 6, 2007.

The Guardian: The eco-diet ... and it's not just about food miles - June 4, 2007.

Biopact: Message to Euro-Americans: eat local food, buy global biofuels - February 22, 2007

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Thailand to mandate 2% palm oil biodiesel next year

Thailand will enforce the mandatory use of 2% palm oil based biodiesel for all diesel vehicles fuelling at 10,000 service stations nationwide next April 1, the minister of energy told reporters today. "Initially we will make B2 mandatory for the whole country by April 1, 2008," said Energy Minister Piyasvasti Amranand.

'Twenty in Five'
As part of Thailand's ambitious efforts to reduce oil imports and assist in cutting carbon emissions and global warming, the kingdom plans to replace not less than 20 per cent of its vehicle fuel consumption with renewable energy sources such as ethanol and palm oil within the next five years.

"Our target is to cut our consumption of gasoline and diesel by 20 per cent within five years, substituting them with ethanol and palm oil. That is better than the US target of 20 per cent replacement by renewable energies in ten years." - Energy Minister Piyasvasti Amranand

After making B2 mandatory in April next year, Thailand will thereafter push petrol pumps and vehicle owners to accept B5, or a 5 per cent palm oil biodiesel - 95 per cent diesel mix, soon thereafter.

Piyasvasti, who was on a tour of palm oil plantations and factories in Krabi, which accounts for 40 per cent of the country's palm oil supply, revealed that all major automobile dealers in Thailand had agreed last week to provide warranties on new cars despite the fact that all vehicles will be forced to use B2 biodiesel by April, 2008:
bioenergy :: biofuels :: energy :: sustainability :: gasohol :: ethanol :: biodiesel :: palm oil :: Thailand ::

A similar government effort to force petrol stations and auto users to switch to gasohol (an ethanol - gasoline blend) in January, this year, failed because the automotive industry refused to provide warranties on their autos if they were using gasohol in their tanks, said Piyasvasti. This has led to overproduction of the biofuel (earlier post)

But the situation is improving for gasohol too. The minister said that the fuel, a mix of 95 per cent petrol and 5 per cent ethanol, was becoming more popular among consumers since the government had reduced its price by 10 per cent at petrol stations last March.

Sufficient supplies
More than 60 per cent of Thailand's vehicles use diesel, because of the popularity of the one-ton pickup truck. By April 1, 2008, palm oil will account for 1 million liters of the 50 million liters of diesel now consumed by motorists.

The energy ministry is convinced that palm oil producers will be able to provide sufficient supplies to meet demand by the April deadline.

"Currently we have sufficient raw materials to produce 0.8 million liters of palm oil, but by the end of the year it will be up to 1.2 million," said Panich Pongpirodom, director-general of the department of alternative energy development and efficiency.

Thailand's palm oil industry has less of a bad reputation amongst conservationists than some other countries, because it is an established industry that is no longer linked to deforestation. Yield increases in the country are being obtained mainly by replanting old plantations with new, high yield trees. Thailand may thus become self-sufficient in sustainably produced palm oil to achieve its first biodiesel targets, but this will undoubtedly increase pressures on palm oil prices which are driven by global dynamics (because the product is a commodity). This in turn may lead to expansion of the sector in other countries, where environmental rules are less strict.

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Switch to ethanol can alleviate sugar crisis in India

The sugar sector in India, the world's second-biggest producer of the sweetener, is battling falling prices as output is likely to reach a record 28 million tonnes in the year to September 2007. India's annual need is pegged at 19 to 20 million tonnes.

To help alleviate this overproduction crisis, the Indian government plans to allow production of ethanol from sugarcane juice, which would help mills cut losses by reducing sugar inventories. The move would also make the production of biofuel more affordable, trade officials say. Some expect production costs for ethanol made from Indian sugarcane to be as low as 20 rupees (€0.36/US$0.49) per liter .

Farm Minister Sharad Pawar said the government plans to allow sugar mills to process ethanol from sugarcane juice. So far, the government was wary of allowing ethanol to be made directly from cane juice but had permitted the manufacture of the fuel from molasses, a thick syrup byproduct from sugar production.

"It is a positive move in the interest of sugar industry," said Prakash Naiknavare, managing director, Maharashtra Federation of Co-operative Sugar Factories. "The dire need is to reduce sugar output at least in the next crushing season. Diverting cane for ethanol production certainly achieves this goal", he added

With this flexibility, sugar mills can follow the method adopted in Brazil where sugar factories switch to ethanol or sugar depending on the price of commodities, traders said.

Pawar said on Thursday government was thinking of raising the level of ethanol in petrol to 10 percent from the current 5 percent. In order to achieve this ambitious goal, India will need 1.12 billion litres of ethanol annually to blend 10 percent of the alternative fuel with petrol:
bioenergy :: biofuels :: energy :: sustainability :: ethanol :: sugarcane :: sugar :: molasses :: India ::

In this respect, the sugar sector believes it would be economical to produce ethanol from cane juice rather than molasses, said Deepak Desai, chief consultant with EthanolIndia.

"From 100 tonnes of cane we get 10 tonnes sugar and 4 tonnes of molasses. From the molasses we can produce 1,080 litres ethanol. But, if we crush 100 tonnes sugarcane directly, we can get 7,500 litres of ethanol."

Besides, mills spend 500-700 rupees (€9.18 - 12.86 / US$12.28 - 17.19) to produce one tonne of sugar, while the cost to produce one litre of ethanol was just 20 rupees, he said.

India is likely to produce 322.93 million tonnes of sugarcane in 2006/07, up 15 percent from last year. Cane output is expected to rise further in 2007/08, industry officials say.

"There are no guaranteed buyers for sugar. The stocks may be remaining unsold for next two to three years," said Madan Bhosale, chairman of an co-operative sugar mill. "But for ethanol there are guaranteed buyers."

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Scientists study impacts of industrial logging in Central Africa

Though the dense humid forests of Central Africa have been regarded as among the most pristine on Earth, the expansion of industrial logging and the accompanying proliferation of road density are threatening the future of this important ecosystem. Moreover, once a rainforest zone is 'opened up' by loggers, agribusinesses and small farmers often move in to give it the final blow.

Woods Hole Research Center scientists are now reporting how they used satellite imagery taken from 1976 to 2003 to study the development of industrial logging and road density in Central Africa so that scientists, conservation agencies and other organizations can better understand the trends and implications of such expansion. The work is profiled in the current issue of Science.

According to Nadine Laporte, an associate scientist at the Woods Hole Research Center and lead author of the work, "It has never been timelier to monitor forest degradation in Central Africa because there is still an opportunity to make a significant difference in reducing the amount of deforestation. The Democratic Republic of Congo contains most of the remaining forest and is the last frontier for logging expansion in Africa."

The Central-African forests are the second largest expanse of rainforest on the planet, after the Amazon. Countries that host this vast ecosystem must be encouraged to preserve it in the name of biodiversity, but also to limit greenhouse gas emissions from deforestation. Mechanisms to help conservation efforts by compensating forest-rich nations ('compensated reduction') are being developed. Certainly in the context of biofuels such mechanisms must be implemented urgently. There is enough potential land in Central-Africa to produce biofuel feedstocks without cutting down trees (earlier post), but if the countries involved are not compensated for keeping their forests intact, the risk exists that vast swathes of rainforest are turned into lucrative biofuel plantations. Monitoring the impact of logging operations and screening deforestation rates is of prime importance for such mechanisms to succeed. The Woods Hole Research Center is actively contributing to the development of 'avoided deforestation' schemes.

The researchers mapped nearly 52,000 km of logging roads within the forested region, which includes Cameroon, Central African Republic, Equatorial Guinea, Gabon, Republic of Congo, and Democratic Republic of Congo (map, click to enlarge). Prior to this work, there were few reliable data sets available to monitor both legal and illegal logging:
energy :: sustainability :: climate change :: greenhouse gas emissions :: rainforest :: deforestation :: logging :: biodiversity :: Central-Africa ::

This study provides the first synoptic view of industrial logging in Central Africa, enabling conservation agencies, government agencies, scientists, industry officials, and others to better gauge how the expansion of logging is impacting the forest and its inhabitants, and how better planning might mitigate damage.

Jared Stabach, a research assistant at the Center and second author, comments, "Roads provide access, and this research provides clear evidence that the rainforests of Central Africa are not as remote as they once were - a bad thing for many of the species that call it home."

Monitoring the expansion of logging in last dense humid forest of Central Africa is not only important for biodiversity conservation but also for climatic change. Industrial logging in Central Africa is the most extensive land use with more than 30 percent of the forest under logging concession and the clearing of these forests could significantly increase carbon emissions.

Co-author Scott Goetz, a senior scientist at the Center, notes that the combination of increasing population, economic development and climatic change means that "Africa is poised for irreversible change, so it is important to help African countries with tools to monitor what is happening to their forests."

Dr. Laporte adds, "This work helps to provide key data to local scientists, allowing them the tools needed to work with policy makers to help manage their forests, and in the process reduce biodiversity loss and carbon emissions from deforestation."

Dr. Laporte is a biologist whose research centers on the applications of satellite imagery to tropical forest ecosystems, including vegetation mapping, land-use change, and deforestation causes and consequences. She has been involved in numerous environmental projects in Africa over the past 20 years, working with in-country scientists, foresters, and international conservation organizations to develop integrated forest monitoring systems and promote forest conservation. She received her doctorate in tropical biogeography from l'Université Paul Sabatier in Toulouse, France.

Mr. Stabach works in the Geographic Information Systems (GIS) and Remote Sensing Laboratory on the Center's Africa program, monitoring changes and threats to the rainforests and threatened species throughout the Central Africa region. His master's research focused on the use of remote sensing technologies to identify Matschie's tree kangaroo habitat in Papua New Guinea. He received his B.S. from Providence College and his M.S. from the University of Rhode Island.

Dr. Goetz works on the application of satellite imagery to analyses of environmental change, including monitoring and modeling links between land use change, forest productivity, biodiversity, climate, and human health. Before joining the Center, he was on the faculty at the University of Maryland for seven years, where he maintains an adjunct associate professor appointment, and was a research scientist at NASA's Goddard Space Flight Center. He received his Ph.D. from the University of Maryland.

Image: Logging concessions and road distribution in Central Africa: Cameroon (1), Central African Republic (2), Equatorial Guinea (3), Gabon (4), Republic of Congo (5), Democratic Republic of Congo (6). Courtesy: Woods Hole Research Center.

More information:
Nadine T. Laporte, Jared A. Stabach, Robert Grosch, Tiffany S. Lin, Scott J. Goetz, "Expansion of Industrial Logging in Central Africa" - Science, 8 June 2007: Vol. 316. no. 5830, p. 1451, DOI: 10.1126/science.1141057

Woods Hole Research Center: Woods Hole Research Center Partnering with The Goldman Sachs Center for Environmental Markets to Develop Project on the Valuation of Avoided Deforestation - Sept. 22, 2006.

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Researchers produce ethanol from syngas in carbon nanotubes

Carbon nanotubes (CNTs) are increasingly recognized as promising materials for catalysis, either as catalysts themselves, as catalyst additives or as catalyst supports. Researchers in China now have used CNTs loaded with rhodium (Rh) nanoparticles as reactors to convert a gas mixture of carbon monoxide and hydrogen into ethanol. The gas, commonly known as syngas, can be obtained from the gasification of biomass. When liquefied, 'synthetic biofuels' are the result. The most common technique used to convert syngas into liquids (GTL) is the Fischer-Tropsch process. But now CNTs may offer another pathway.

The Chinese breakthrough appears to be the first example where the activity and selectivity of a metal-catalyzed gas-phase reaction benefits significantly from proceeding inside a nanosized CNT reaction vessel. Dr. Xinhe Bao, professor at the State Key Laboratory of Catalysis at the Dalian Institute of Chemical Physics, Chinese Academy of Sciences, and head of the institute's Nano and Interfacial Catalysis Group, and Dr. Xiulian Pan, published their findings [abstrac] in Nature Materials.

CNTs distinguish themselves from other carbon materials, such as activated carbon and carbon nanofibers, in that they have well graphitized graphene with semiconducting or metallic characteristics and a tubular morphology with well defined dimensions. Earlier theoretical studies have shown that the electron density is shifted from the inside to the outside of CNT channels, and that inside gas molecules exhibit a binding energy different from those outside of the nanotubes:
biofuels :: energy :: sustainability :: ethanol :: syngas :: biomass-to-liquids :: gas-to-liquids :: Fischer-Tropsch :: carbon nanotubes ::

"We were curious about what would happen if we combined these graphene tubes with metal nanoparticles, which have interesting redox and catalytic properties by themselves" Dr. Xinhe Bao told NanoWerk. "We previously found that the redox properties of iron and iron oxide particles are tunable via encapsulation within CNTs."

Bao found that, for instance, iron oxide particles within 4-8 nm wide nanotubes are auto-reduced at 600 degrees Celsius while the particles located on the outer surface of the nanotubes need 800 degrees Celsius. Furthermore, the auto-reduction temperature of inside particles decreases with the nanotube diameter. On the other hand, the oxidation of metallic iron nanoparticles is retarded inside nanotubes compared to those particles located on the outer surface of nanotubes. Both experiments indicate the modification of the redox properties of these particles inside CNTs and the stabilization of metallic Fe inside nanotubes.

The researchers suspected that the modification of the redox properties of metal particles inside CNTs is a general characteristic and that this could be exploited in catalysis.

Therefore, they introduced a promoted RhMn catalyst for syngas conversion into carbon nanotube channels. Syngas is a 1:2 mixture of CO and H2. This reaction is known to be very sensitive to the redox states of Rh and Mn. Oxygenates containing two carbon atoms such as ethanol, acetyldehyde and acetic acid were produced, and surprisingly, the yield over the CNT-encapsulated catalyst was extraordinarily high, clearly exceeding that of the very good silica-supported catalyst. Furthermore, catalysts with metal particles confined inside CNTs were also significantly more active than those with the metal particles dispersed on the outer surface of the nanotubes, even though the latter are more easily accessible.

The results of the Chinese scientists suggest a host-guest interaction between the confined metal particles and CNTs, which is different from that on the outside of the nanotubes. Other effects may also play a role, like the stringent size restriction of metal particles inside CNTs and the high affinity of hydrogen to the inner surfaces of opened CNTs as exemplified in their extraordinary hydrogen adsorption capacity. Pan says that she believes that other conversions could benefit in a similar way from taking place inside CNTs, in particular if they involve hydrogen. "We also anticipate that the study of the host-guest interaction within CNTs will attract greater attention as a result."

Bao points out that experimental study of the redox properties and the electronic host-guest interaction in these systems is still a challenge and might require refined characterization techniques. "Other effects may also play a role in these catalysts" he says, "like the stronger size restriction of metal particles inside CNTs and the high affinity of hydrogen to the inner surfaces of opened CNTs. The understanding and distinction between these contributions needs to be advanced by further experimental and theoretical studies. Besides, we are currently looking at new experimental characterization techniques which provide deeper insight into the nature of these confined systems."

Pan notes that, apart from the still considerable challenge of cost efficient, large-scale production of CNTs with precise diameter and chirality control, a further challenge pertaining to catalysis is the homogeneous dispersion of metal nanoparticles within the CNT channels, since this can strongly influences the activity of these catalysts.

Apart from applications in catalysis, such CNT encapsulates might also be interesting for composite materials which require a modulation of the electronic state, such as magnetic sensor or storage materials.

Image: Carbon nanotubes for ethanol production. Schematic diagram showing ethanol production from syngas inside Rh-loaded carbon nanotubes.The black spheres denote carbon atoms, which form the graphene layers of the carbon nanotubes. The streams in light orange and green entering the nanotubes indicate the gas mixture of CO and H2, respectively. The three stacks of small spheres in rose, blue, green and red inside the tubes represent catalyst particles that may comprise more than one component. The streams in light cyan tailing behind the catalyst particles along the axis of the nanotubes represent ethanol. Courtesy: NanoWerk / Nature Publishing Group.

More information:
Xiulian Pan, Zhongli Fan, Wei Chen, Yunjie Ding, Hongyuan Luo & Xinhe Bao, "Enhanced ethanol production inside carbon-nanotube reactors containing catalytic particles", Nature Materials, published online: 21 May 2007, doi:10.1038/nmat1916.

Wei Chen, Xiulian Pan, and Xinhe Bao, "Tuning of Redox Properties of Iron and Iron Oxides via Encapsulation within Carbon Nanotubes", J. Am. Chem. Soc.; 2007; 129(23) pp 7421 - 7426; (Article) DOI: 10.1021/ja0713072

NanoWerk: Ethanol production inside carbon nanotubes - June 8, 2007.

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Punjab invests heavily in biomass to feed growing energy needs

Per capita energy consumption in the state of Punjab, India's bread basket and symbol of the Green Revolution (earlier post), is the highest on the sub-continent at 972kwh/year (nearly thrice the national average). Power shortages running as high as 20% with peak hour shortages at 26% are becoming a major concern.

To counter this, the state has set a target to add another 1,000MW of power through renewable energy resources by 2012, notably biomass. To achieve the goal, the sector has attracted investments worth 9 billion rupiah (€165/US$220 million) by private enterprises. Added to this is a loan by the Japan Bank of International Cooperation worth 8 billion rupiah (€148/US$196 million) which the state government will use for adding an extra 200MW of bioenergy. Punjab has a current installed capacity of 6,200MW.

M. P. S. Bajwa, chairman of the Punjab Energy Development Agency (PEDA), says the state has a huge potential for the production of renewable energy from biomass and agro-residues through co-generation. Even though Punjab forms less than 1.5% of India's territory, it provides the country with two thirds of all grain crops. The state's crops yield vast amounts of field-based and process-based biomass residues (agricultural production data can be found here, in combination with residue-to-product ratios for different crops, here). In order to tap this vast potential, farmer-to-farmer bioenergy cooperatives have been created, and the Punjabi state government now wants to introduce a biomass based energy project in each tehsil (county).

Biomass most competitive
According to PEDA, the biomass initiative ideally requires an investment of 30 to 50 million rupiah (€551,000 - 918,000 / US$ 736,000 - 1.22 million) per installed MW, should be multifuel and can be set up on 10-20 acres of land. Compared to this a hydroelectric project on average costs around 80 to 100 million rupiah (€1.47 - 1.83 / US$ 1.96 - 2.45 million) per MW, whereas a solar energy plant costs around 10 times as much as biomass cogeneration:
bioenergy :: biofuels :: energy :: sustainability :: agriculture :: residues :: biomass :: cogeneration :: Punjab :: India ::

The Punjab State Electricity Board has been requested to sign Power Purchase Agreements (PPAs) for renewable energy power projects with private developers within a month of submission of documents. The time for tariff approval would also be reduced. "The state government wants to harness the co-generation and biomass potential of 542 mw by 2012. Government is also providing financial incentives for promoting power projects in the state NRSE policy 2006," Bajwa added.

Diversification of energy supplies is key to Pujab's energy security. For this reason, PEDA has so far commissioned 8 mini hydel projects with a combined capacity of 10 MW, whereas another 55 hydel sites have already been allotted to the private developers for setting up hydro projects on Built Operated Owned (BOO) basis. Around 14 projects with a capacity of 13.65MW have been completed and commissioned through private sector participation worth around 1 billion rupiah (€18/24.6 million).

When it comes to biomass power, five projects with a total capacity of 30MW have so far been completed and commissioned through private sector, whereas 114MW of co-generation projects are under execution in the state. In addition, biomass projects on a BOO basis and with a combined capacity of 112MW have also been allocated to private developers. This puts the total amount of investments in the sector at 9 billion rupiah (€165/US$220 million).

More information:
Biopact: Farmer-to-farmer biomass power in Punjab - December 20, 2006

Biopact: Punjab's bioenergy potential from agricultural waste estimated at 1000MW; major investments being made - December 11, 2006

Biopact: Crop residues: how much biomass energy is out there? - July 14, 2006

The Financial Express: Punjab's renewable energy to get Rs 900 cr - June 6, 2007

Punjab Government: Punjab Agriculture Sector Statistics.

FAO, Auke Koopmans and Jaap Koppejan: "Agricultural and forest residues - generation, utilization and availability" [*.pdf], Paper presented at the Regional Consultation on Modern Applications of Biomass Energy, 6-10 January 1997, Kuala Lumpur, Malaysia, FAO, 1998, - see Annex II.

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Energy Trust of Oregon to invest US$5 million into biomass cogeneration

The Energy Trust of Oregon, a nonprofit organization dedicated to changing how Oregonians use energy by promoting energy efficiency and clean renewable energy, announced [*.pdf] it will invest up to US$5 million in a biomass cogeneration project that will generate enough electricity to serve over 12,000 homes with continuous renewable electricity.

The 15.8-megawatt project will be owned by the Confederated Tribes of Warm Springs and their financial partner. The project, which will cost US$46 million to build, will also provide steam for Warm Springs Forest Products Industries, the Tribes’ wood products enterprise. By using clean wood fuel from forest fuels reduction and forest restoration projects in Central Oregon, saw mill residuals and other clean materials, the project will result in healthier forests.

“This is one of the largest incentives yet paid by Energy Trust. Biomass is an extremely attractive renewable resource, locally and nationally. It’s a constant resource that provides energy with multiple environmental and economic benefits.” - Adam Serchuk, biomass program director for Energy Trust.

According to Serchuk, the project is one of the first Oregon projects to rely primarily on forest material gathered as part of forest stewardship activities. It will be a good test to see how clean energy generation and wildfire prevention can work together to benefit the state, he added.

Advantages of biomass
As a renewable fuel, biomass has some distinct properties. Unlike solar or wind resources, biomass can deliver power to the power grid 24 hours a day, 7 days a week. In addition, biomass and its related forest restoration activities support a healthy hydropower system by slowing snowmelt runoff and reducing sediments in runoff flows. Using forest fuels for biomass also means that they aren’t being burned off in an open fire or allowed to decompose in the forest, which improves air quality and reduces the amount of greenhouse gases released into the atmosphere.

The Warm Springs Reservation covers 650,000 acres, about half of which is forest. Catastrophic wild fires over the past several years have caused significant damage to these forestlands. An estimated 2,000 acres of tribal lands and 8,000 acres of adjoining federal and private lands will be used for biomass recovery each year. Woody biomass material from other forest fuels reduction projects will also be used at the site:
bioenergy :: biofuels :: energy :: sustainability :: biomass :: forestry :: wildfire prevention :: cogeneration :: Oregon ::

The developer and owner of the project is Warm Springs Biomass LLC, an organization formed with businesses owned by the Confederated Tribes of Warm Springs, plus a third-party investor. The project is expected to operating by December 31, 2008, under a 20-year agreement with Energy Trust. Aequitas Capital Management, Inc., financial advisor for the project, has assisted with all principal project agreements, including taking a critical role in the power sales agreement, construction agreement, and Energy Trust negotiations. Aequitas also had a lead role in arranging for funding to construct and operate the facility. The project is applying for an Oregon Business Energy Tax Credit equal to 35 percent of eligible project costs.

"The biomass power generation project is a sustainable business creating the benefits of employment, forest restoration and renewable energy. Business managers for the Confederated Tribes will continue to develop opportunities that contribute to the future prosperity of the Tribes and the environment,” said Jim Manion, Warm Springs Power and Water Enterprises.

The Confederated Tribes of Warm Springs expects the biomass project to create 60 to 70 living wage jobs and generate self-sustaining revenues that can be used to fund tribal government services. In addition, the facility provides a market-based solution to restore tribal forestlands and reduce wildfire risks.

“The Warm Springs project moving forward is the second biomass project announced this year,” said David Van’t Hof, sustainability advisor to Oregon Governor Ted Kulongoski. “It shows the great opportunity for economic growth and job creation presented by the governor’s aggressive renewable energy policies.”

“This project establishes a benchmark model for the development of new biomass facilities in Oregon and for tribal-owned renewable energy projects in general,” said Tom Sidley, senior managing director, Aequitas Capital. “We were honored to apply our energy practice experience to assist a very motivated and competent development team from the Confederated Tribes of Warm Springs.”

Image: biomass wood chips, courtesy of the Energy Trust of Oregon.

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G8 reaches compromise on climate change

The leading industrialised nations (G8) aim to at least halve global CO2 emissions by 2050. The Heads of State and Government agreed at Heiligendamm to achieve this goal together as part of a UN process. The big emerging economies are also to be incorporated in the process: "We commit to achieving these goals and invite the major emerging economies [in particular China and India] to join us in this endeavour," states the Summit Declaration [*.pdf] of 7 June 2007. The agreement is not legally binding.

Environmental NGOs and civil society organisations have dismissed the compromise as 'weak', whereas others were surprised to see a deal at all.

For her part, German Chancellor and G8 President Angela Merkel was convinced and visibly pleased that this was "the most important decision for the coming two years." Many participants had moved their positions quite considerably. The agreement that binding goals on reducing emissions were necessary was "an important signal", said Merkel.

The resolutions adopted by the EU, Japan and Canada form the basis of the agreement reached on climate protection at Heiligendamm. The approach suggested by the United States was added to this, namely of incorporating the biggest greenhouse gas emitters outside the United States, especially China and India.

The environment ministers of the United Nations Framework Convention on Climate Change can now negotiate details of how these goals regarding global reductions are to be achieved. A post-Kyoto Protocol regulation is to be agreed during the Global Climate Change Conference to be held there. The Kyoto Protocol expires in 2012. Up until now it was not clear what this was to be based on. Now the successor agreement is to be adopted by 2009 and to contribute to the agreed UN process:
biofuels :: energy :: sustainability :: global warming :: climate change :: Kyoto :: UNFCCC :: G8 ::

In parallel to the UN process, groups of countries have the possibility of reaching additional agreements on how the common goal is to be achieved. In future the G8 also want to use new financial tools to support climate protection projects in the developing countries, for example the proceeds from the auctioning off of emissions rights. This afternoon the Chancellor said she was pleased about the "coherent time-table".

Joint, but different responsibility
The G8 states it is clear that all countries bear joint responsibility for reducing greenhouse gases, but in different ways. The Chancellor highlighted the leading role the Group of 8 had to play. "The industrialised countries must take the first step", she emphasised.

Even though the agreement is not legally binding, Merkel was sure that "no-one can escape this declaration".

The Chancellor felt that it was a great success that all eight of the G8 countries now acknowledged the results of the UN's most recent climate report.

The so-called IPCC Report found that global warming is largely the result of human activity. Only by limiting CO2 emissions will it be possible to stop global warming. In order to avoid wide-ranging consequences, the international experts believe that it is absolutely essential that global warming be limited to 1.5 to 2.5°C.

The Group of 8 industrialised nations recognise the statements and goals in the IPPC Report. "Now we need to work together to get as many countries as possible across the world to undertake to do something," the German Chancellor said.

G8 and the emerging economies: Dialogue institutionalised
In the afternoon the G8 leaders had already agreed to offer the so-called emerging economies a new form of regular dialogue. The so-called outreach countries - Brazil, China, India, Mexico and South Africa - will be taking part in the G8 discussions on Friday.

This new co-operation ("Heiligendamm Process") is to send a clear signal for allowing mutual freedom of investment under comparable conditions. Just like the G8 process, this process is also to set the course for giving globalisation a social face.

The planned topics for the Heiligendamm Process are also to be "innovation" and "technology co-operations". The G8 countries are to share their know-how with the emerging economies especially when it comes to energy efficiency. At the same time, agreement is to be reached on more effective international property rights: protection against replicated machines, copied brand products and counterfeit medications.

The topics to be addressed in this dialogue show how closely the issues discussed at this summit are linked to the interests of people across the world: climate protection and energy efficiency on the one hand, and the technology required for that and effective property rights for that technology on the other. Globalisation is here to stay. Now it needs to be actively shaped at the political level. "The G8 is a valuable body in which to do that," German Chancellor Angela Merkel said two weeks ago in a policy statement. The first conference day proved her right.

Scepticism
Environmental NGOs immediately criticised the G8 summit-deal as being "weak" and "lacking substance and political will". Friends of the Earth deplores that the US and Russia did not make a non-binding pledge to cut the CO2 emission by at least half by 2050. "Collectively, the G8 nations, which represent just 13% of the world's population, are responsible for around 43% of the world's greenhouse-gas emissions," the NGO points out.

The World Future Council said that it would have liked to see "an immediate binding resolution" and accused the G8 countries of "simply passing the buck on to the next Conference on Climate Change in Bali later this year".

More information:
G8 Summit, Heilgendamm: Breakthrough on climate protection - June 7, 2007.

G8 Summit, Heiligendamm: Summit Declaration: Growth and responsibility in the world economy - [*.pdf], June 7, 2007.

Friends of the Earth International: Weak G-8 Climate ‘Deal’ Lacks Substance - June 7, 2007.

World Future Council: G8 Need to Act Immediately on Climate Change - Declaration on Climate Change too Weak: World Leaders Merely Pass the Buck to the Next Climate Conference - June 7, 2007.

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The bioeconomy at work: study shows potatoes make good bioplastics

A report by the University of Maine's Margaret Chase Smith Policy Center says the state's potato industry could benefit by becoming a producer of bioplastics, which are made from renewable and carbon-neutral plant starch rather than crude oil and petroleum products.

The research report titled Potatoes to Plastic [*.pdf] examined the resource and economic viability of Maine potatoes as a source for polylactic acid (PLA) to support InterfaceFABRIC’s manufacturing requirements for use in their bio-based fabrics for commercial interiors. As part of this study, the following data was reviewed:

• the amount of acres currently harvested for potato production and the average number of acres in use;
• the average harvest yield of potatoes;
• the average price paid to growers per hundredweight (cwt) of potatoes;
• the raw materials costs associated with collecting, transporting and pre-processing waste potatoes for production of starch in preparation for PLA production;
• the availability of potato starch to meet the needs of InterfaceFABRIC;
• the comparison of current cultivars of potato vs. one bred to use less fertilizer and fungicide (the Defender, a non-Genetically Modified Organism), both with approximately the same starch content.

The analysis of these data supports the conclusion that it is economically feasible for Maine potato growers to plant and harvest potatoes specifically for the purpose of providing a source of starch to manufacture PLA. It has also been determined that there would be little to no start-up costs to the potato growers themselves to provide potatoes for PLA using the potato cultivars (varieties) that are currently grown, in particular the Russet Burbank and/or Shepody potatoes (table, click to enlarge).

The planting, harvesting and pre-processing of these potatoes would be no different than what the growers are currently doing.

The analysis also shows that the cost of processing potatoes for PLA would be similar to that for a small capacity PLA facility that processes corn and the price which potato growers would receive for PLA potatoes would most likely be comparable to the average price paid to all growers for their potatoes. It also appears that the price of PLA from potatoes would be similar to that for PLA derived from corn.

Waste potatoes
The analysis further confirms that the amount of PLA needed by InterfaceFABRIC (13 million pounds per year) could, in principle, be supplied solely by waste potatoes, made up of those left in fields after harvesting, those not marketed or below grade, and potato waste from processing:
bioenergy :: biofuels :: energy :: sustainability :: potatoes :: bioplastics :: PLA :: biodegradable :: bioeconomy ::

However, the resources or economies to collect those wastes and waste potatoes and provide them to a PLA facility are not available at this time.

In conclusion, the research supports the concept of producing bio-based plastic feedstock from Maine potatoes. The potential to produce PLA from potato starch will not be limited by the ability of potato growers to provide a viable crop.

Furthermore, the cost to growers will not be prohibitive for such a project and the return will be similar to that for food stock potatoes.

Finally, no current table-ready or processing potatoes need to be taken out of the supply chain. An increase in the amount of acres planted and harvested can be implemented to provide the starch, and the potato varieties currently grown, in particular the Russet Burbank and/or Shepody potatoes, can be used as the source of starch for PLA manufacturing.

The next step is to conduct the research to determine the location and technical specifications for a PLA facility in Maine and examine the potential contribution of waste potatoes and processed starch to support a PLA facility and to examine the potential for new more cost effective and environmentally sustainable potato varieties which can be grown specifically for the PLA market.

European and Japanese manufacturers have already produced PLA-based bioplastics from potatoes.

The research was funded in part through Maine Technology Institute with contributions in kind by the Alliance for a Clean & Healthy Maine; Green Harvest Technologies; InterfaceFABRIC; Maine Potato Board; University of Maine; and University of Massachusetts, Lowell.

More information:
Margaret Chase Smith Policy Center: Potatoes to Plastic, [*.pdf / Executive summary here, *.pdf], June 2007.

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IEA Chief: biofuels not a threat to OPEC

Reacting to OPEC's recent statement on biofuels, Claude Mandil, the head of the International Energy Agency (IEA), told the Financial Times that, even in the worst-case scenario for the oil cartel, there would be a "dramatic" need for an increase in production by the Organisation of the Petroleum Exporting Countries. "OPEC has nothing to fear. Even in the most optimistic scenarios, the contribution from biofuels would be very small," Mr Mandil said.

The oil producers’ group has become increasingly concerned about efforts in the US and the European Union to cut oil imports. Recently, Abdalla el-Badri, secretary-general of the oil cartel warned that booming biofuels activities may threaten investments in oil production and cause petroleum prices to "go through the roof". Analysts have suspected some tactical move behind the statement. OPEC ministers were however genuinely appalled by the State of the Union address by President George W. Bush in January, in which he said he wanted to "dramatically reduce our dependence on foreign oil."

Mr Mandil now says that even in the worst case for OPEC, in which consuming countries implemented policies to curb oil consumption, the IEA forecast that global oil demand in 2015 would rise by close to 10 million barrels a day, to 94.8 million bpd.

Demand for OPEC oil would be 38.8 million bpd in 2015, up from about 31 million bpd today, while biofuels would provide just 3 million bpd. If the oil-consuming countries did not put in place those further policies to encourage biofuel production and fuel efficiency, OPEC oil demand would be 42 million bpd.

OPEC's historic mistake
In the late 1970s western powers urged OPEC to increase urgently its production capacity as oil prices soared. But the same countries invested in energy alternatives, including nuclear power and natural gas, and energy-saving measures. The result, according to Frédéric Lasserre, of Société Générale in Paris, was that "OPEC invested huge amounts of resources in new oil production capacity, just to realise that when it came on line, in the mid 1980s, the demand had evaporated." OPEC is worried now about repeating this historic mistake:
bioenergy :: biofuels :: energy :: sustainability :: ethanol :: biodiesel :: petroleum :: oil :: OPEC :: IEA ::

The cartel is committed to increase its oil production through more investment. But it has warned: "As the world needs a security of supply, we need a security of demand."

OPEC argues that it is misleading to think the world can wean itself off its need for oil. Abdalla el-Badri, Opec secretary-general, said: "We have no objection to changes in the energy mix but there is not a magic solution for oil."

OPEC’s initial investment of about US$120 billion (€89 billion, £60 billion) to 2012 is already on the way, but a second wave of about US$500 billion will depend on new demand trends. With consuming countries devoting more resources to nuclear power, biofuels, clean coal and energy efficiency, some observers say OPEC is right to be concerned.

"Climate warming will play a key role in the future discussion of western countries’ energy mix and, in there, oil is not well placed," said Mr Lasserre.

The potential of the current generation of biofuels is severely constrained by the competition with the food industry for feed stocks such as corn and wheat. "As the biofuel industry is set up today, there are pretty clear limits to it," said Andrew Shepherd-Barron, an alternative energy expert at KBC Peel Hunt.

"In about five years you have the possibility that we could make biofuels in a completely different way, from cellulosic ethanol or algae. But those technologies are unproven."

Even if there is a breakthrough to those 'second-generation' biofuels, Wood Mackenzie, the consultancy, estimates they might displace only up to 4 per cent of world oil demand in the next decade. But even a marginal change could have a powerful impact on the oil price.

On the other hand biofuels become competitive only when oil prices are very high. This also implies OPEC members are making unprecedented profits that become available for much needed investments.

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Food import bills reach a record high, biofuels partly to blame

Global food import bills are increasing, partly due to soaring demand for biofuels, according to FAO’s latest Food Outlook report. Global expenditures on imported foodstuffs look set to surpass US$400 billion in 2007, almost 5 percent above the record of the previous year.

The data once again immediately bring up the issue of global trade regimes and agricultural subsidies. Countries with a very large food production potential - like the DRCongo, Mozambique or Angola - are net food importers.

To the dismay of development economists and civil society organisations alike, farm subsidies in the EU and the US prevent investments in domestic food production in these countries. Their dependence on imported food means they are vulnerable to global price fluctuations that are beginning to be influenced by (subsidised) biofuels. For net exporters, the price increases are a blessing.

Over the long term, the FAO said earlier, biofuels can fundamentally boost food production and help alleviate poverty (earlier post).

The FAO's latest Food Outlook notes that rising prices of imported coarse grains and vegetable oils – the commodity groups that feature most heavily in biofuel production – account for the bulk of the increase. Import bills for these commodities are forecast to rise by as much as 13 percent from 2006, the report said.

Contrary to other reports, the report states that more expensive feed ingredients will lead to higher prices for meat and dairy products, raising expenditures on imports of those commodities. In several cases, such as for meat and rice, larger world purchases are likely to drive import bills up.

In the case of sugar, generally high and volatile prices could lead to smaller import volumes, which is likely to result in a drop in the cost of global sugar imports, the report said.

Record-high international freight rates have also affected the import value of all commodities, putting additional pressure on countries’ abilities to cover their food import bills:
biofuels :: energy :: sustainability :: ethanol :: biodiesel :: oilseeds :: grain :: meat :: sugar :: agriculture :: food :: subsidies :: FAO ::

Poor pay more
Developing countries as a whole are anticipated to face a 9 percent increase in overall food import expenditures in 2007. The more economically vulnerable countries are forecast to be most affected, with total expenditures by low-income food-deficit (LIFDC) and least developed countries (LDCs) expected to rise by 10 percent from last year.

“The food import basket for the least developed countries in 2007 is expected to cost roughly 90 percent more than it did in 2000,” said FAO economist Adam Prakash. “This is in stark contrast to the 22 percent growth in developed country import bills over the same period.”

Production up, but so is demand
World cereal production in 2007 is forecast to reach 2125 million tonnes, up 6 percent from the reduced level in 2006 and higher than FAO’s previous forecast in May.

"The prospect of a strong recovery in global cereal production in 2007 is a positive development, but total supplies will still be barely adequate to meet the expected rise in demand, not only from the traditional food and feed sectors but in particular from the fast-growing biofuels industry," said Abdolreza Abbassian, one of the authors of the report. "This means prices for most cereals are likely to remain high in the coming year."

FAO’s tentative forecast for rice production this year stands at around 633 million tonnes, matching last year’s record level, but with production still running short of consumption. Global rice reserves are forecast to shrink and higher price levels are anticipated.

Global cassava production in 2007 could surpass last year’s record level, due largely to measures to increase utilization of the crop in the larger producing countries, especially for industrial usage, including ethanol production.

Oilseeds
Oilseeds and meal prices have continued to rise, largely due to surging feed grain prices. Unusually high maize prices are dragging up soybean prices as the two commodities are competing in both the feed and energy markets. First forecasts for the 2007/08 marketing season suggest that the steady growth in global oilseed production could come to a halt, however, as maize cultivation is likely to expand at the expense of soybeans.

Meat and dairy
Increased consumer confidence, following a reduced incidence of animal disease outbreaks in the past year, should result in a recovery in meat demand in developing countries in 2007, the report said. Global meat exports are anticipated to increase by 3.8 percent as trade bans are gradually lifted and markets return to more normal patterns.

Poultry prices have recovered after declining by 18 percent in early 2006, mainly because of outbreaks of avian influenza. By March 2007, export prices in the United States and Brazil, which together supply 70 percent of global trade, increased by 20 percent and 14 percent, respectively, from their 2006 annual averages.

FAO’s meat price index has significantly recovered from a low in 2006 and, in March 2007, stood 7.6 percent higher than in March 2006. Moreover, rising feed prices are putting further upward pressure on meat prices, according to the report.

Prices of dairy products are currently at historically high levels. The FAO price index of traded dairy products has risen by 46 percent since November 2006. International prices for milk powders have increased most, as stocks in the European Union have disappeared.

The outlook for 2007 is for stronger growth in global milk supply, which may increase by 2.7 percent, sustained largely by expansion in those countries more responsive to international prices. Drought in Australia, suspension of milk powder exports by India, and Argentina’s export taxes are restraining export supply in the short term. However, EU dairy policy reform is changing the structure of international markets as its export market share declines, creating opportunities for emerging exporters, the report said.

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Case-study reveals template for successful biofuel production

A consortium of eleven companies involved in the biodiesel industry in the North-East of England have developed a template for successful future biofuels production. The Value Chain Analysis (VCA) project, which was undertaken as part of the Cereals Industry Forum (CIF), could prove very valuable in driving future developments in this relatively new sector.

The study titled Meeting the Renewable Transport Fuel Obligation - A Biofuels Case Study from Seed to Forecourt [*.pdf], identified areas as critical to the chain, including standardising farming practice, breeding specific varieties for biofuels, ensuring continuity of supply, and providing carbon reporting throughout the chain. The study looked at three biofuels for transport: biodiesel, bioethanol and biogas.

Value Chain Analysis brings together a team representing all aspects of a supply chain in order to ‘map’ the chain. By ‘walking through’ the chain together, the team is able to identify processes that add value and those that don’t (map, click to enlarge). It is also able to identify problems and areas, and, therefore, to suggest ways in which the chain might be improved. This activity is organised by the Cereals Industry Forum, and was facilitated by Cardiff Business School.

Because of the complexity of the supply chain in this case it was split into two groups – upstream and downstream. The detailed mapping of the upstream chain showed that the total lead-time from basic seed to crusher is about 920 days, out of which 365 days is in multiplication of basic seed, 365 growing on the farm and 180 days on average in central silo. The total mileage from fertiliser manufacturing plant through the distributive chain to the farm and then as crop to the crusher is about 250 miles.

For the downstream chain it showed that the total lead-time from the crusher to the vehicle tank is more than 60 days (excluding time in the tank-farm due to data not available). The total transport in the downstream is about 60 miles (excluding miles traveled in pipelines).

The critical factors for success identified by the team were:

• The need to standardise and transfer best farming practices more widely: it was shown that improved choice of varieties, reduced fertiliser loss, and reduced harvest loss could make a significant difference to improving the quality of output and the profitability for growers.
• Breeding specific varieties for biofuels: currently, there are no oilseed varieties specifically for biofuels production. High yield and oil content are key to the success of the whole sector and have a big impact on profitability of biofuels crop production as well as the whole supply chain.
• Continuity of supply into the crusher with crop storage adjacent to the crusher: key to sustainability of this chain is the continuity of supply of high quality locally-grown crops into the crusher. The crusher connects the upstream and downstream chains and efficiency of the upstream supply is crucial in terms of competitiveness of the whole industry.
• Carbon reporting from seed to tank: the carbon footprint and the environmental impact of the end-to-end supply chain (seed to tank) must be constantly monitored to ensure that the promised carbon reduction is met.

The upstream group involved fertiliser producer Terra; seed breeder Monsanto; agri-chemicals supplier Agrovista; buying group Farmway; grower John Hutchinson, grain trade