AIDS, a threat to rural Africa

On the occasion of the 20th World Aids Day, it may be interesting to pause and think of some of the less well known consequences of the pandemic. According to the UN's Food & Agriculture Organisation (FAO), the disease is becoming a greater threat in rural areas than in cities of the developing world, contrary to conventional wisdom. Growing links between rural and urban areas through trade, migration and improved transportation networks have made HIV prevalence rates rise faster in rural areas.

A 65-year-old Malawian woman takes care
of her nine grandchildren, whose parents have died of AIDS.

Major findings about this devastating trend, using data for sub-Saharan Africa, home to the most-affected countries, can be summarized as follows.

AIDS is mostly a rural issue

• More than two thirds of the population of the 25 most-affected African countries live in rural areas.
• Information and health services are less available in rural areas than in cities. Rural people are therefore less likely to know how to protect themselves from HIV and, if they fall ill, less likely to get care.
• Costs of HIV/AIDS are largely borne by rural communities as HIV-infected urban dwellers of rural origin often return to their communities when they fall ill.
• HIV/AIDS disproportionately affects economic sectors such as agriculture, transportation and mining that have large numbers of mobile or migratory workers.

AIDS undermines agriculture because of its toll on the labour force

• AIDS has killed around 7 million agricultural workers since 1985 in the 25 hardest-hit countries in Africa. It could kill 16 million more before 2020.
• More than a third of the gross national product of the most-affected countries comes from agriculture.
• In contrast to other diseases, AIDS mostly devastates the productive age group -- people between 15 and 50 years.
• Up to 25 percent of the agricultural labour force could be lost in countries of sub-Saharan Africa by 2020 (map, click to enlarge).
• AIDS reduces productivity as people become ill and die and others spend time caring for the sick, mourning and attending funerals. The result is severe labour shortages for both farm and domestic work.
• Labour-intensive farming systems with a low level of mechanization and agricultural input are particularly vulnerable to AIDS.

AIDS undermines the sustainability of development

• People are dying before they can pass on knowledge and expertise to the next generation. A study in Kenya showed that only 7 percent of agricultural households headed by orphans had adequate knowledge of agricultural production.
• In Kenya's Ministry of Agriculture, 58 percent of all staff deaths are caused by AIDS, and in Malawi's Ministry of Agriculture and Irrigation at least 16 percent of the staff are living with the disease. One study found that up to 50 percent of agricultural extension staff time was lost through HIV/AIDS in sub-Saharan Africa.
• In the first ten months of 1998, Zambia lost 1 300 teachers to AIDS -- the equivalent of around two thirds of all new teachers trained annually.
• The sale of productive resources to care for the sick and pay for funerals diverts funds away from long-term development.

energy :: sustainability :: bioenergy :: biofuels :: food :: agriculture :: gender :: rural :: AIDS :: HIV :: Africa ::

AIDS threatens food security

• The loss of productive members of society is severely affecting household capacity to produce and buy food.
• Fostering AIDS orphans or hosting and caring for sick relatives reduces the amount of food available for each household member.
• Evidence from Namibia shows widespread sale and slaughter of livestock to support the sick and provide food for mourners at funerals. This jeopardizes the livestock industry and longer-term food security and survival options.

AIDS affects rural women disproportionately

• Women whose husbands are migrant workers are especially vulnerable to AIDS, as their spouses may have other sexual partners. The women themselves may engage in commercial sex in periods of economic stress.
• Some of the traditional mechanisms to ensure widows' access to land contribute to the spread of AIDS -- for example, levirate, the custom that obliges a man to marry his brother's widow. Unfortunately, initiatives to stop these practices may leave widows without access to land and food.
• Biological and social factors make women more vulnerable to AIDS, especially in adolescence and youth. In many places HIV infection has been found to be three to five times higher in young women than in young men.
• In several countries, studies have found that rural women whose husbands had died of AIDS were forced to engage in commercial sex to survive because they had no legal rights to their husband's property.

All illustrations credit of the FAO.

References:
FAO: HIV/AIDS: a rural issue.

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REEEP and Austrian government launch CDM project in Uganda to reduce emissions from charcoal

If you do not have access to electricity, it makes sense to turn to the wood that surrounds you for energy. In many parts of Africa, it is not unusual to see villagers strolling into the woods, chopping down trees or branches, covering them up and lighting them. After a patient wait lasting a few days they will find that the pile of wood has become charcoal - a traditional type of biofuel.

It is an easy solution. Used throughout the continent, charcoal is a versatile source of fuel for cooking. But fumes are a serious health risk and release large amounts of greenhouse gases. Few governments in Africa, though, have taken the trouble to help people manage charcoal production and burning practices more effectively. A new capacity building project in Uganda funded by the Austrian government in the context of the Austrian Joint Implementation/Clean Development Mechanism-Programme now aims not only to do just that, but to use the experience to help earn carbon credits while also helping break through the barriers holding back more African CDM projects of different kinds.

As is well known, compared to India, China and Latin America, the continent has not attracted many CDM projects, a mechanism under the Kyoto Protocol which lets rich nations fund clean energy projects in developing countries, then claim credits back home for delivering greenhouse gas cuts. African governments themselves have called for more assistance to attract CDM investments (previous post) and the Austrian initiative could prove to be the much needed catalyst.

Gertraud Wollansky, an executive at the Austrian Environment Ministry, which is drawing on the resources of multilateral clean energy organisation the Renewable Energy and Energy Efficiency Partnership (REEEP) for the project says most of Sub-Saharan Africa is basically blank on the map as far as CDM is concerned (take this quite literally, see the interactive CDM projects map here, or click to enlarge). The ministry wants to help develop an energy efficient method for producing charcoal and avoiding methane emissions, but is also interested in hydropower, biodiesel and biogas:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: greenhouse gas emissions :: charcoal :: Clean Development Mechanism :: Uganda :: Austria :: Africa ::

The Nile experience
There are good reasons starting in Uganda, which is already pioneering one of the few African CDM projects that are not based in Tunisia or South Africa. Engineers working on the West Nile Electrification Project (WNEP) have constructed a 3.5 MW hydropower plant on the banks of the White Nile (a tributary of the main river Nile) which flows out from Lake Victoria in the heart of the continent. That project has received funding from the World Bank and other international organisations and will cut demand for diesel and thermal power as well as kerosene and paraffin. It will also avoid transport emissions from fuel trucks.

It is one of the building blocks used by Wollansky and her colleagues, giving them more knowledge, and enabling them to create another project. That in turn will provide the team with new insights, eventually perhaps creating a domino effect.

“The project that is finally selected will be a pilot in the sense that we hope that if we can demonstrate a project really works, other projects will be able to follow this example and can use the experience we’ve gained,” she explains. Three other countries, in which the Ministry is also working in conjunction with REEEP, are equally suitable candidates for similar groundbreaking projects: Ethopia, Ghana and Tanzania. In Ghana, they are interested in introducing more methane capture and biogeneration as well as helping fuel switching from oil to gas.

Dam busting
None of these countries are secure places to operate in, regardless of whether the project in question relates to clean energy or other industries. Control Risks, a consultancy that estimates the risk of investing in different countries all over the world, says Uganda and Ethiopia present a high security risk (alongside Zimbabwe, Israel and Russia) while Ghana and Tanzania present a medium security risk. The estimates are based on the effectiveness of the rule of law, government stability, likely damage to infrastructure and other considerations.

“Very few African countries have the kind of credit ratings which will allow loans to get through,” says Wollansky, pointing out one of the main financial barriers affecting clean energy development. Hence, they need support, which the Austrian government will provide by following the project right through to its final stages.

A WNEP executive elaborates further on Uganda: “the lack of a capital market available to Independent Power Producers (IPPs), the utility company’s inability to provide the required financing, the consumers’ low ability to pay, and the high upfront investment would preclude the WNEP from coming to fruition,” he explains, referring also to particularly risky energy and infrastructure sectors in Uganda as well as inflation and currency risks.

Moody’s and other agencies have not even rated Uganda, because of political and socio-economic instability. Security is an important issue considering the history of political instability in the Great Lakes Region over the last decades. But the four countries in question have been selected because they – unlike some other African countries - have a well functioning Designated National Authority (DNA) set up to deal with CDM project applications, despite their fragile financial climate.

This means that REEEP and the Austrian team will not be building from scratch and this in turn will enable them to reach their targets in the two years that are available; there are more synergies with these countries than with others in the region. Fast developing nations like China and India have set up DNAs some years ago and their institutions are better acquainted with the CDM. They also have a store of the required skills available on the spot and a less bumpy investment climate. These are core reasons why they constantly leapfrog other developing nations.

African countries need to have enough resources to prepare the project and overcome several bureaucratic constraints. Even if they have the skills available, the connection to CDM-related knowledge is not often there. - Gertraud Wollansky, Austrian Environment Ministry

The consortium will be aiming to fill in these gaps in order to help lay the foundations for greater skills, administrative and intellectual capacity for more clean energy.

Missing links
According to Wollansky, the relations with the Ugandan DNA are “well advanced”. One of the tasks is to build links between different elements of the project – for instance between the capacity building activities (relating to administration and skills) and the actual project construction itself, or between different pools of expertise.

REEEP’s work in Africa will provide a useful source of information and act as a communication tool. “We’ll be using the network REEEP has in Africa to establish contacts to distribute the knowledge. We want to start pilots that can be multiplied on the ground, and REEEP can play a big role in the multiplication effect,” she comments.

As the WNEP executive notes, there is plenty more potential for hydropower in the West Nile region which in the first instance could help develop agricultural businesses; these pay high energy bills and experience regular power cuts at peak periods because of a lack of capacity. In the longer term, Wollansky visualises several small-scale power projects (below 15MW) as well as efficient charcoal production, though the transaction costs for these are often nearly as high as for the larger-scale projects. However, the CDM procedures for smaller projects are simpler.

“We are not exclusively focussing on small scale projects in our African initiative, we would welcome large scale as well. As it is, there are simply more small scale than large scale project opportunities offered in Africa,” says Wollansky. Small or large, by improving the disjointed work often carried out by different elements in a project’s development, it is expected that some of the transaction costs will eventually be cut.

Hat tip to Eva!

References:
REEEP: Traude Wollansky discusses CDM in Africa - s.d. [November 2007].

UNFCCC - Clean Development Mechanism: CDM projects location.

Biopact: Africa needs help to win clean energy investments - November 06, 2006

Biopact: WHO: indoor air pollution takes heavy toll on health in the developing world - May 01, 2007

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Austria opens most modern biomass district heating plant in Hohe Tauern National Park

Austrian energy and infrastructure company Salzburg AG and the community of Pingzau have opened one of the country's most modern biomass district heating plants, located in the Hohe Tauern National Park, central Europe's largest protected nature reserve. The high peaks and glaciers of this magnificent Alpine region feel the impact of climate change more than any other place, which is why the community demanded a climate friendly energy solution. A highly efficient combined heat and power (CHP) plant was therefor selected to deliver electricity and heat to local residents, industry and institutions. It will utilize forestry residues from the region. Given that the Oberpingzau region is also tourism hotspot, the community decided to adopt an eco-friendly energy source that does not impact the landscape.

By drawing on renewable biomass, the plant reduces the region's carbon footprint. It also offers considerable cost-savings, given the high price of heating oil.

The district heating net, which will be expanded gradually, has the following characteristics:

• investment: €1.89 (US$2.76) million
• beginning of construction: 11 June 2007; end of construction: October 2007
• raw materials: 4600 cubic meters of forestry residues per year
• first district heating pipeline network: 2 kilometers long
  
• direct clients: 60 institutions, businesses and residents for the first network
• environmental impact: CO2 savings of 850 tonnes per annum

Local residents welcome the new network, which pumps hot water to them on demand, because heating their homes now becomes considerably less costly than doing it with heating oil. They no longer require the installation of personal heating systems, or have to go through the process of ordering, selecting and storing energy, but can take the service from the net with the touch of a button. The biomass plant reduces Pingzau's heating oil consumption by around 300,000 liters per year.

We are a tourism municipality at the heart of the Hohe Tauern National Park. To us, climate friendly and pollution free power production is a special request. With pride we can say now to have the most advanced and modern biomass plant in the Federal Republic. - Balthasar Rainer, Pingzau Mayor

The local school, the tourism center, a new Spa resort and most small businesses inPingzau are connected to the net:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: combined heat and power :: district heating :: forestry :: Alps :: climate change :: Austria ::

The CHP plant was designed to fit into the existing energy infrastructure, managed by Salzburg AG, which until now derived most of its energy from hydro-electricity. Combined, both renewable resources make the region almost entirely fossil free. According to Salzburg AG this project demonstrates that hydro and biomass power projects can contribute to strengthen energy security and autonomy in Austria, and that it does so in a competitive way.

Salzburg AG is an innovative and active player in the bioenergy sector. Recently it opened Austria's first biomethane gas stations, offering purified biogas made from grass (previous post).

The company is the biggest provider of energy and infrastructure throughout the federal state of Salzburg. With sales of €825,4 million in 2006 and about 2.000 employees, Salzburg AG is one of the leading and innovative energy suppliers in Austria. Key to success is its multiutility service: Energy, public transport and telecommunication are supplied by one source.

References:
Salzburg AG: Biomasse-Heizwerk Wald: Vorzeigeprojekt geht in Betrieb - November 27, 2007.

Salzburg AG opens biomethane gas stations in Austria: driving on pure grass - November 24, 2007

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Canada announces $740,000 for Nova Scotia biofuels and ecological projects

Canada's Nova Scotia farmers will benefit from $740,000 in funding for six important projects studying biofuels and environmental farm practices. The announcement was made at the Nova Scotia Federation of Agriculture's Annual General Meeting by Guy Lauzon, Parliamentary Secretary to the Minister of Agriculture and Agri-Food and for the Federal Economic Development Initiative for Northern Ontario, on behalf of the Honourable Gerry Ritz, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board.

Five Nova Scotia projects totalling $228,093 are being funded under the Biofuels Opportunities for Producers Initiative (BOPI), which is administered by Agri-Futures Nova Scotia. These projects aim to boost alternative fuel production and open up market opportunities for farmers. The feasibility studies will help determine the potential of alternative fuel production in Nova Scotia.

The BOPI is a two-year $20 million commitment by the Government of Canada designed to provide farmers and rural communities with opportunities to participate in, and benefit from, increased Canadian biofuel production (earlier post).

BOPI is part of the government's strategy to reach a target of increasing the average renewable content in all Canadian transportation fuel to five per cent by 2010 and intent to regulate a two per cent requirement for renewable content in diesel fuel and heating oil by 2012.

The following five projects will contribute to a healthier environment in the province while creating new market opportunities for farmers:

1. $78,000 to ACA Cooperative to produce biodiesel from poultry litter and poultry processing waste;
2. $56,000 to Fundy Biofuels Inc. for an ethanol marketing study;
3. $45,000 to West Nova Agro-Commodities Ltd. for an assessment and business plan on revenue streams for waste generated by biofuels production in the use of a variety of waste in the Annapolis Valley;
4. $43,750 to L and M Farm Holdings to study the feasibility of a 200,000 litre/year ethanol plant using carrot and potato waste, oat, barley and corn grains;
5. $5,343 to SF Rendering to determine the capital costs to process Atlantic-produced canola into bio-diesel.

All five BOPI projects are delivered by Agri-Futures Nova Scotia.

The Nova Scotia Federation of Agriculture will receive more than $511,000 for an Ecological Goods and Services (EG&S) pilot project. The Federation will establish a value for agri-environmental activities, such as the development of wetlands, which will benefit both farmers and the community. The project will also determine a potential payment to farmers who undertake these activities to help offset costs and encourage more environmental action:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: landscape :: wetlands :: conservation :: biodiversity :: ecoservices :: Nova Scotia :: Canada ::

Nova Scotia's agriculture industry has invested in and has become the leader in environmental farm planning initiatives in Canada. This project will further demonstrate the benefits of that investment and will expand the adoption of best management practices. - Karen Casey, Member of the Legislative Assembly

The 'Nova Scotia Ecological Goods and Services Pilot Project' is based on 'Ecological Goods and Services' (EG&S) which are the positive environmental benefits that Canadians derive from healthy ecosystems, including clean water and air, and enhanced biodiversity. Agriculture is both a beneficiary and a provider of EG&S. For example, the viability of farming depends on ecosystem processes like soil renewal, climate regulation, and precipitation. At the same time, well-managed agricultural lands can provide benefits to broader society such as the protection of fish and wildlife habitat, preservation of scenic views, and purification of air and water through natural processes.

In Nova Scotia, the new funds will go to the Nova Scotia Federation of Agriculture to determine a value for environmental activities and assign a potential payment for farmers undertaking these activities. It is one of the eight EG&S pilot projects being carried out across the country that will assist in measuring the feasibility of various approaches to environmental stewardship.

Specifically, this project will:

• Survey Nova Scotia's farming community to assess costs and benefits and determine potential impact on farmers;
• Enhance the St. Andrews River watershed through delivery of EG&S by all farms within the watershed; and
• Assess the benefits of liming agricultural lands adjacent to watershed waterways.

Agriculture and Agri-Food Canada (AAFC) is working with provincial and territorial governments to develop a framework for policies that are good for agriculture and that provide environmental benefits for all Canadians. Key elements of this work include research and pilot projects supported through the Advancing Canadian Agriculture and Agri-Food (ACAAF) program. These pilot projects will help AAFC and its provincial and territorial partners build a common understanding necessary in order to develop effective policies.

Last spring the Prime Minister announced a $225 million investment in a national campaign to acquire and preserve ecologically sensitive land. Recognized conservation groups will be identified to work towards this common goal. In addition, tax exemptions announced during Budget 2006 for donations of ecologically sensitive lands provide further incentives for Canadians to help preserve our environment.

The pilot project is receiving in-kind support from the Nova Scotia Departments of Agriculture and the Environment, the Nova Scotia Agricultural College, the Atlantic Salmon Federation, the Town of Stewiacke and the St. Andrews Watershed Advisory Committee.

According to Frazer Hunter, president of the Nova Scotia Federation of Agriculture, it is widely recognized that certain public objectives such as enhancement and protection of biodiversity, environmental protection, leisure and even the aesthetics of the landscape can and do profit from the agricultural industry.

This government is standing up for farmers in Nova Scotia and across Canada by making sure they can get in on the ground floor of the emerging biofuels industry. We also recognize farmers as important stewards of our environment. - Parliamentary Secretary Lauzon.

Jean Ward, Chair of Agri-Futures Nova Scotia, says the goal is to help these five local firms study new and interesting ways to produce biofuels in their 'own back yards'. There are a lot of clever ideas out there just waiting to be harnessed, he added.

References:
Agriculture and Agrifood Canada: Government of Canada announces $740,000 for Nova Scotia biofuels and ecological projects - November 30, 2007.

Biofuels Opportunities for Producers Initiative (BOPI).

Biopact: Canada's government invests $1 million in 12 biofuel projects in Quebec - August 22, 2007

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EU makes available €1.75 billion for new research under 7th Framework Programme - emphasis on bioenergy and biofuels

The European Commission is today issuing calls for proposals in 32 research areas, making available about €1.75 billion from the 7th Research Framework Programme (FP7). Areas for support range from environmental science to sustainable transport, from biotechnology to nanotechnology. In the field of renewable energy the calls are mainly focused on bioenergy and biofuels. Other renewables retained for funding include hydropower and photovoltaics. No research calls were made for wind, geothermal, concentrated solar power or ocean power.

The FP7 calls for renewables seek to promote:

1. new methods for the analysis of supply chains and the production of the full range of clean and carbon-efficient biofuels - gaseous, liquid and solid
2. research into next-generation fuels from biomass such as lignocellulosic ethanol, syngas gas based fuels, pyrolysis-oil based biofuels and others
   
3. improved systems to generate electricity from biomass, currently the most cost-effective form of renewable energy
4. under the Collaborative Projects there are funds for joint research with Russia on biomass energy, and with Latin America on next-generation liquid biofuels

Further funds will be made available for the Marie Curie International Staff Exchange scheme, which will strengthen the relationships of European research organisations with their international counterparts, and there are specific calls for proposals working with researchers in India on materials and Russia on energy.

There is no time to lose in research. The EU's research framework programme has seen a smooth start in 2007, mobilising researchers from across Europe and beyond to compete with their best ideas and to cooperate in tackling many challenges. Today, we are continuing this effort and we call on all researchers to participate. - Janez Potocnik, European Science and Research Commissioner

There is a strong emphasis on international scientific collaboration in FP7, with all areas of research being open to partnerships including countries from outside the European Research Area. In addition there are some specific activities identified, such as joint research with India on materials science and with Russia on power generation from biomass and tools for large power systems. The sustainable production and analysis of supply chains of solid, liquid and gaseous fuels from biomass, especially next-generation fuels, is also a key research area to be funded.

Electricity from biomass
In the field of energy research there is the call for the development of improved biomass electricity generation systems (FP7-ENERGY-2008-1). Current costs of electricity from biomass are in the range of €0.05 – €0.08 /kWh. Development should aim at extending applications to a wider range of biomass materials by (1) solving specific problems hindering the use of biomass in direct co-firing and (2) addressing technical challenges for advanced biomass gasification systems for efficient power production.

Demonstrations should aim at medium to large scale bio-electricity systems, covering the whole process chain from sustainable feedstock supply over energy conversion to the recovery of by-products. Preference will be given to the ambitious use of biofuels with still high exploitation potentials such as forest residues, energy crops, agricultural residues including straw, refuse derived fuels etc. Medium-to-large scale power generation from organic waste also comprises mass burning of solid municipal waste as well as the separate use of pretreated and pre-separated municipal waste fractions.

Emphasis is put on innovations with high penetration potential throughout Europe while also paying due attention to overall sustainability aspects. Stakeholders relevant for the commercialisation of the innovation are expected to participate.

Proposals with bioenergy plants operating (at least partially) in combined heat and power (CHP) or combined heat, cooling and power (CCHP) will be preferred in case of similar performances in all other criteria.

The overall expected impact can be summarized thus: increased electricity production from biomass through the development and demonstration of improved biomass power generation and CHP plants which allow power generation costs below EUR 0.04 /kWh in 2020 whilst operating on a variety of sustainably produced biomass feedstocks.

Collaboration with Russia
A call for collaboration with Russia on research and technology development in the field of power generation from biomass is included as well. This collaborative research activity should be based on an assessment of ongoing research, the identification of best practices, gaps in knowledge, and barriers to implementation in both the EU and Russia. Expected impacts are an effective cooperation between key researchers and industries in the field of power generation from biomass, so as to foster the development and uptake of innovative methods and technologies to expand the use of biomass in power generation:
energy :: sustainability :: biobutanol :: biomass :: bioenergy :: biofuels :: biogas :: gasification :: co-firing :: cogeneration :: CCS :: smart energy networks :: R&D :: FP7 :: European Union ::

The typical consortium should be a partnership between EU and Russian teams. In order to ensure a balance between EU and Russian participants a minimum number of two participants established in Russia is requested. This is an eligibility criterion. The funding of all participants will follow the rules established for the Energy EU-Russia Call. Participants being established in the EU or in an associated country may jointly receive up to EUR 2 million from the European Commission and the Russian partners may jointly receive up to EUR 2 million from the Federal Agency for Science and Innovation. The project duration is normally 3 years.

Cooperation is encouraged between academic and industrial organisations from the EU and Russia which are actively involved in research and development on power generation from biomass.

Biofuel production and supply chains
Research into, development and demonstration of improved biofuel production systems and conversion technologies for the sustainable production and supply chains of solid, liquid and gaseous fuels from biomass (incl. biodegradable fraction of waste) receives funding. Emphasis should be on new types of biofuels in particular for transport and electricity as well as on new production, storage and distribution routes for existing biofuels, including the integrated production of energy and other added-value products through biorefineries.

Aiming to deliver ‘source to user’ carbon benefits, research will focus on improving energy efficiency, enhancing technology integration and use of feedstock. Issues such as feedstock logistics, pre-normative research and standardisation for safe and reliable use in transport and stationary applications will be included. To exploit the potential for renewable hydrogen production, biomass, renewable electricity and solar energy driven processes will be supported.

The structure and content of this Activity takes into consideration the Strategic Research Agenda (SRA) of the Biofuels Technology Platform.

This research activity would facilitate the actual implementation of the Directive on the promotion of the use of biofuels or other renewable fuels for transport (2003/30/EC, O.J. L125, 17.05.2003).

Second generation biofuels from biomass
Second generation biofuels comprise a range of alternatives such as lignocellulosic ethanol, syngas gas based fuels, pyrolysis-oil based biofuels and others. Activities will cover process development and system integration focusing on the conversion process, with a view to improve cost-competitiveness of biofuels while minimising the environmental impact of biofuel production.

Results are expected to expand the biomass feedstock available for biofuel production, assisting the take-off of a large biofuel industry while helping to avoid food/fuel competition for the land use.

Technology developments should bring about substantial cost reduction to pave the way for large scale production of second generation biofuels by 2020, while improving the energy balance and environmental impact of biofuel production.

Enhancing international cooperation between the EU and Latin America in the field of biofuels
Proposals could address the characterisation of feedstock and pre-treatment technology, optimisation of the production processes for 1st and 2nd generation biofuels, sustainability issues and coproduction of biofuels and bioproducts (Open in call: FP7-ENERGY-2008-1)

This Collaborative Project with a predominant research component has the following expected impacts: the significant enhancement of the cooperation between key researchers and industries from the EU and Latin America in the field of biofuels.

This is a Specific International Cooperation Action. At least four legal entities must participate, two from EU Member States or Associated Countries, and two from Latin America. The consortium should include in a balanced way both Latin American and European partners with solid experience and competence in the field and strong project management skills. Key players in the consortium should have a proven track record of EU-LA collaboration. The partnership should demonstrate the added value of EU-LA collaboration in the proposed action. Expertise in the international context and knowledge of Latin America for European partners and vice-versa is important. Preference will be given to actions involving countries having a S&T bilateral agreement with the EU and/or specific arrangements.

CCS, smart energy networks
The new FP7 calls also focus on research into carbon capture and storage (CCS), and the wide range of issues that form part of this field: CO2 capture, CO2 transport and storage infrastructure development, public acceptance, the development of a suitable methodology for the qualification of deep saline aquifers for CO2 storage,

Further funds are available for research into smart energy networks, the development of interactive distribution energy networks, pan-European energy networks and infrastructures (gas), as well as into energy saving and efficiency in both the domestic as well as the industrial sector.


Under the grant scheme, the European Research Council will also be unveiling its new funding initiative, the Advanced Grant Scheme, opening the ERC for the first time to established researchers. Other areas covered are: research infrastructures; regions of knowledge; the role of science in society; and support to small and medium-sized companies.

A network of national contact points is availableto help researchers identify areas of interest and to help create the partnerships that are generally required for accessing European funding.

References:
European Commission, CORDIS: Seventh Research Framework Programme - Calls.

European Commission: Work Programme 2008, Cooperation Theme 5: Energy [*.pdf, manual download]- European Commission C(2007)5765 of 29 November 2007

AlphaGallileo: €1.75 billion of new research money available for European projects - November 30, 2007.

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Wealthy Commonwealth countries urged to help improve vital infrastructure facilities in poorer member countries

According to development economists and energy experts, bioenergy and biofuels offer major chances for rural development in the poor countries of the world. The new market may lift the bulk of the world's food insecure out of poverty, boost incomes, strengthen access to energy and reduce the impact of climate change. A large number of developing nations has an enormous potential for agricultural expansion - with huge countries like Congo, Zambia, Tanzania, Angola or Mozambique utilizing less than 10 per cent of their potentially arable land -, but currently this is not being exploited. The reasons for this lack of investment are diverse, but one of the most obvious is the absence of the critical infrastructures needed to get food and biofuels to market: roads, railroads, waterways, ports.

A new report by the University of Nottingham now points at this core issue and urges wealthy Commonwealth nations such as the UK, Australia and Canada to help poorer member states improve these vital infrastructure facilities - it is, the researchers say, one of thes single best ways to lift them out of poverty and to turn them from a status of food and fuel importers into one of food and fuel exporters.

The report, Trading on Commonwealth Ties [*.pdf], produced by the Globalisation and Economic Policy Centre (GEP), which is based at the University of Nottingham, argues that investment in ports, rail and road facilities would make a substantial impact on exports and the strength of the economy in poorer countries: the economic model shows that in a country like Uganda, a 10 per cent improvement in trade-related infrastructure would raise the volume of exports to other Commonwealth countries by about 62 per cent. These are very large effects.

Arguably improving infrastructure is the most significant thing the Commonwealth can do to increase exports and imports between the partner nations. If you look at the roads and rail networks in many African countries you can see where the real barriers to trade lie. - professor Chris Milner, lead author, Globalisation and Economic Policy Centre

It is a true scandal that developing countries with a vast agricultural potential are food importers or rely on food aid, while in fact they should be major food and bioenergy exporters. The factors explaining this scandal, besides decrepit infrastructures, are multiple: unfair trade regimes with regions like the EU and the US subsidizing and protecting their farm sector, bad governance on the part of developing country governments (more here), the existence of a food aid industry and NGOs who thrive on it, lack of science and technology (S&T) capacity (previous post on the UNCTAD's call), and a general climate of political, financial and economic instability, to name but a few.

Researchers have found that if investments were made into modern agriculture and land in a single Commonwealth country like Zambia, all of Africa's food needs could be met. Projections about the sustainable biofuels and bioenergy potential have to be seen in this context: with basic investments in key infrastructures, agricultural science and modern inputs, Africa alone can produce more than 300 Exajoules worth of sustainable bioenergy for exports by 2050, after meeting all the food, feed, and fuel needs of its own growing populations (previous post and especially here). The entire world currently consumes around 200 Exajoules of oil.

In short, the problem of underdevelopment, food and energy insecurity or lack of agricultural expansion has no ground in a lack of carrying capacity, but is a purely man-made, economic and infrastructural problem. This also means we can change the situation. Biopact thinks that Africa's comparative advantages (land, climate, labor) and its vast scope for agricultural growth will make it the continent of the future. It will take time to develop the region's potential, but those not afraid to venture into this 'problematic' region - like China - are exactly undertaking one of the critical issues needed to unlock it: investing in infrastructures. The EU too has seen the need and recently proposed the creation of a €5 billion infrastructure fund for Africa.

The GEP report now urges highly Commonwealth countries to do the same. It was commissioned by the Commonwealth Secretariat's Economic Affairs Division to suggest ways to boost trade between Commonwealth nations. The 53 countries that make up the Commonwealth represent nearly one-third of the world's population, a quarter of the world's governments and one-fifth of all global trade. A quick list of selected African member states and their potential arable land, shows what the future may hold in store for food and bioenergy production if it can be exploited through upgraded infrastructures (graph, click to enlarge):
energy :: sustainability :: biomass :: bioenergy :: biofuels :: agriculture :: infrastructure :: trade :: Africa :: Commonwealth ::

The GEP report values current annual intra-Commonwealth exports of goods at more than $US225 billion. It estimates that the UK exports $31.7bn (£15.5bn) of goods a year to Commonwealth countries.

Professor Milner, who is also the Head of the School of Economics at the University of Nottingham said the volume of trade taking place between Commonwealth nations shows that its value extends far beyond friendships and the Commonwealth Games. This trade is substantial. For a significant number of low-income and island economies, the Commonwealth is of considerable economic importance — for some countries, like Botswana, Namibia, Papua New Guinea and Samoa, around three-quarters of their international trade is with fellow Commonwealth nations.

The report further recommends that individual Commonwealth countries should negotiate favourable bi-lateral tariff deals between themselves, but warns against introducing a Commonwealth-wide free trade agreement in the near future.

Ransford Smith, the Commonwealth Deputy Secretary-General thinks this is a timely and significant study. While the Commonwealth comprises some of the major global trading partners from both developed and developing countries, a large number of countries from Africa, Caribbean and Pacific regions have lagged behind in trade growth and haven't benefited as might have been expected from the robust trends of recent years. The situation, he said, calls for measures to address this challenge. This study provides important information and perceptive analyses as well as practical recommendations, such as the call to invest massively in infrastructures.

The Globalisation and Economic Policy Centre – is the major centre in Europe studying the impacts of globalisation and economic policy. One of the biggest of its kind in the world, the centre has an impressive international reputation, with its academics advising the Treasury, the OECD, the World Bank and the WTO. GEP is based at the University of Nottingham, and is substantially funded by grants from the Leverhulme Trust. In 2008 a branch of GEP will open at the University of Nottingham's Malaysia campus.

References:
Globalisation and Economic Policy Centre: Trading on Commonwealth ties: Review of the structure of Commonwealth trade and the scope for developing linkages and trade in the Commonwealth [*.pdf] - media release, November 2007.

University of Nottingham: Wealthy Commonwealth countries urged to help improve vital infrastructure facilities in poorer member countries — November 22 2007

Biopact: UNCTAD: poorest countries need investments in science and technology - July 19, 2007

Biopact: EU proposes €uro 5 billion aid for African infrastructure - July 16, 2006

Biopact: Opinion: the leading cause of hunger? Bad regimes - October 25, 2007

Biopact: IEA report: bioenergy can meet 20 to 50% of world's future energy demand - September 12, 2007

Biopact: A look at Africa's biofuels potential - July 30, 2006

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Neste Oil to build a €550 million NExBTL renewable diesel plant in Singapore: palm oil feedstock

Neste Oil announces it plans to invest approximately €550 million ($808 million) in building a plant in Singapore to produce NExBTL renewable diesel. The plant will have a design capacity of 800,000 tonnes per annum, making it the largest facility producing diesel fuel from renewable feedstocks anywhere on the planet. The investment forms part of Neste Oil’s strategic goal of becoming the world’s leading renewable diesel producer. The use of biofuels such as NExBTL is predicted to increase rapidly in developed economies over the next few years.

The fact that Neste chooses Singapore and palm oil from the region as its feedstock, demonstrates what Biopact has been saying: tropical countries will show their comparative advantages and become the new hubs for the biofuels of the future.

The plant will be based on Neste Oil’s proprietary NExBTL technology which is based on hydroprocessing fatty acids to yield a second generation, ultra-clean biofuel.
NExBTL technology is the first commercial new-generation renewable diesel production process, and can use any vegetable oil or animal fat as its input. The end-product is a premium-quality fuel that outperforms conventional fossil diesel fuel and can be used as such in existing vehicles and be distributed in existing logistics systems. (more here). The first NExBTL facility was commissioned in Finland at Neste Oil’s Porvoo refinery in summer 2007 (photo), and a second is due to come on stream there in 2009.

NExBTL renewable diesel is also a good performer in environmental terms. When produced from sustainably sourced raw materials, its total lifecycle greenhouse gas emissions are 40-60% less than those of conventional diesel fuel. In addition, NExBTL has lower tailpipe emissions, contributing to better air quality.

The main raw material planned for the Singapore plant will be palm oil. Neste Oil has committed itself to only using palm oil certified by the Roundtable on Sustainable Palm Oil as soon as sufficient quantities are available. Palm oil complying with the RSPO certification system, which was approved in November 2007, will probably be available from the early part of 2008 onwards.

Singapore is the world’s third-largest center of oil refining, and occupies a central location in terms of product and feedstock flows and logistics. This also gives Singapore excellent potential to develop into a center for Asian biofuel production. Singapore is a signatory to the Kyoto Protocol and has committed itself to reducing greenhouse gas emissions:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: renewable diesel :: palm oil :: hydrogenation :: Singapore ::

The government of Singapore has played an important role in promoting Neste Oil’s investment, and the Singapore Economic Development Board (EDB) has assisted Neste Oil at every stage of the preparations for the project. The EDB will also support the investment through e.g. R&D support and assistance with recruiting and training personnel.

Construction of the Singapore plant will begin in the first half of 2008, and the facility is due to be completed by the end of 2010. The plant will be built in the Tuas industrial zone in the southwest of the island, around 30 minutes from the centre of Singapore. The plant will be integrated into the area’s existing industrial infrastructure, and will make use of local site utilities and port and storage services. When operational, the plant will employ around 100 people.

Images: the NExBTL plant in Porvoo and palm oil fruits, feedstock for the new facility in Singapore. Credit: Neste Oil.

References:
Neste Oil: Neste Oil to build a NExBTL Renewable Diesel plant in Singapore - November 30, 2007.

Neste Oil: pictures of the Porvoo plant and palm oil plantations.

Biopact: Neste Oil to build a NExBTL Renewable Diesel plant in Singapore - November 30, 2007.

Biopact: Finland starts trials of Neste Oil's second-generation NExBTL biodiesel in buses - September 28, 2007

Biopact: Finnish oil major is considering jatropha oil for next-generation biodiesel - April 19, 2007

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Scientists find ocean fertilization won't work - final blow to controversial geoengineering option

Scientists have revealed an important discovery that raises serious doubts concerning the viability of plans to fertilize the ocean to solve global warming, a projected $100 billion 'geoengineering' venture that has attracted a lot of criticism from environmentalists, climate scientists, civil society and oceanographers who think the scheme may destroy marine environments. The concept was recently deemed 'not scientifically justified' by the International Maritime Organisation (IMO) (earlier post). The bioenergy community for its part is opposed to the idea, because it distracts attention from a much safer solution to global warming, namely the production of negative emissions from bioenergy. But now scientists deal the final blow to the controversial concept, saying it simply won't work.

Ocean fertilization, the process of adding iron or other nutrients to the ocean to cause large algal blooms, has been proposed as a possible 'geoengineering' solution to global warming because the growing algae absorb carbon dioxide as they grow. But research performed at Stanford University, the Carnegie Institution of Washington and Oregon State University, published in the Journal of Geophysical Research, now concludes that ocean fertilization is not an effective method of reducing CO2 in the atmosphere because of the seasonal dynamics of the way in which algae sink to the bottom of the ocean.

This technique of ocean fertilization, which is analogous to adding fertilizer to a lawn to help the grass grow, only reduces carbon dioxide in the atmosphere if the carbon incorporated into the algae sinks to deeper waters. This process, which scientists call the 'Biological Pump' (image, click to enlarge), has been thought to be dependent on the abundance of algae in the top layers of the ocean. The more algae in a bloom, the more carbon is transported, or 'pumped', from the atmosphere to the deep ocean.

To test this theory, researchers compared the abundance of algae in the surface waters of the world's oceans with the amount of carbon actually sinking to deep water. They found clear seasonal patterns in both algal abundance and carbon sinking rates. However, the relationship between the two was surprising: less carbon was transported to deep water during a summertime bloom than during the rest of the year. This analysis has never been done before and required designing specialized mathematical algorithms. By jumping a mathematical hurdle the scientists found a new globally synchronous signal.

This discovery is very surprising. If, during natural plankton blooms, less carbon actually sinks to deep water than during the rest of the year, then it suggests that the Biological Pump leaks. More material is recycled in shallow water and less sinks to depth, which makes sense if you consider how this ecosystem has evolved in a way to minimize loss. Ocean fertilization schemes, which resemble an artificial summer, may not remove as much carbon dioxide from the atmosphere as has been suggested because they ignore the natural processes revealed by this research. - Dr. Michael Lutz, lead author, University of Miami's Rosenstiel School of Marine and Atmospheric Science

The global study of Dr. Lutz and colleagues suggests that greatly enhanced carbon sequestration should not be expected no matter the location or duration of proposed large-scale ocean fertilization experiments.

According to the researchers, the limited duration of previous ocean fertilization experiments may not be why carbon sequestration wasn't found during those artificial blooms. This apparent puzzle could actually reflect how marine ecosystems naturally handle blooms and agrees with our findings. A bloom is like ringing the marine ecosystem dinner bell. The microbial and food web dinner guests appear and consume most of the fresh algal food:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: climate change :: ocean fertilisation :: carbon dioxide :: algae :: bioenergy with carbon storage :: negative emissions :: geoengineering ::

The study highlights the need to understand natural ecosystem processes, especially in a world where change is occurring so rapidly, concluded Dr. Lutz.

This study closely follows a September Ocean Iron Fertilization symposium at the Woods Hole Oceanographic Institution (WHOI) attended by leading scientists, international lawyers, policy makers, and concerned representatives from government, business, academia and environmental organizations.

Topics discussed included potential environmental dangers, economic implications, and the uncertain effectiveness of ocean fertilization. To date none of the major ocean fertilization experiments have verified that a significant amount of deep ocean carbon sequestration occurs:

Some scientists have suggested that verification may require more massive and more permanent experiments. Together with commercial operators they plan to go ahead with large-scale and more permanent ocean fertilization experiments and note that potential negative environmental consequences must be balanced against the harm expected due to ignoring climate change.

During the Ocean Iron Fertilization meeting Dr. Hauke Kite-Powell, of the Marine Policy Center at WHOI, estimated the possible future value of ocean fertilization at $100 billion of the emerging international carbon trading market, which has the goal of mitigating global warming. However, according to Professor Rosemary Rayfuse, an expert in International Law and the Law of the Sea at the University of New South Wales, Australia, who also attended the Woods Hole meeting, ocean fertilization projects are not currently approved under any carbon credit regulatory scheme and the sale of offsets or credits from ocean fertilization on the unregulated voluntary markets is basically nothing short of fraudulent.

There are too many scientific uncertainties relating both to the efficacy of ocean fertilization and its possible environmental side effects that need to be resolved before even larger experiments should be considered, let alone the process commercialized. All States have an obligation to protect and preserve the marine environment and to ensure that all activities carried out under their jurisdiction and control, including marine scientific research and commercial ocean fertilization activities do not cause pollution. Ocean fertilization is 'dumping' which is essentially prohibited under the law of the sea. There is no point trying to ameliorate the effects of climate change by destroying the oceans - the very cradle of life on earth. Simply doing more and bigger of that which has already been demonstrated to be ineffective and potentially more harmful than good is counter-intuitive at best. - Professor Rosemary Rayfuse, University of New South Wales

The findings of Dr. Lutz and colleagues coincide with and affirm this month's decision of the London Convention (the International Maritime Organization body that oversees the dumping of wastes and other matter at sea) to regulate controversial commercial ocean fertilization schemes. This gathering of international maritime parties advised that such schemes are currently not scientifically justified.

Strategies to sequester atmospheric carbon dioxide, including the enhancement of biological sinks through processes such as ocean fertilization, will be considered by international governmental representatives during the thirteenth United Nations Framework Convention on Climate Change conference in Bali next month.

Virtually all of the radical geoengineering options proposed so far have been rejected for being too risky. These include emulating volcanoes' cooling effects by pumping sulphur into the atmosphere (debunked as outright dangerous to the planet - earlier post), creating a giant space mirror (which would be prohibitively costly), or generating highly reflective clouds (more here). Most of these proposals have been simulated and some have been shown to be full of uncertainties and hence generate a high number of risks (previous post). Other, safer proposals have been found to be too costly (a recent example).


One of the only geoengineering proposals seen as economically viable, environmentally safe and efficient, is the production of carbon-negative bioenergy. By planting biomass (trees, energy crops), and utilising them as feedstocks for energy production to replace fossil fuels, a 'carbon-neutral' form of energy is obtained. But when the CO2 that is released into the atmosphere during this process is captured and locked up - either in geological formations or in soils - then carbon-negative energy and fuels can be generated. Scientists have found that, when implemented on a planetary scale (hence 'geoengineering'), such negative emissions energy systems can take us back to pre-industrial atmospheric CO2 levels by mid century (previous post, here and here).

These 'bio-energy with carbon storage' (BECS) systems are currently becoming the object of more attention in the energy and climate change community. With these systems it becomes possible to take historic CO2 emissions back out of the atmosphere. Other renewables, like wind or solar energy, are 'carbon neutral' at best (schematic, click to enlarge). That is, they do not add new emissions to the atmosphere. But BECS systems go much further: they actually take carbon dioxide emissions from the past out of the carbon cycle, thus radically tackling the main cause of climate change. Now that we are facing the potential doom scenario of 'abrupt climate change', negative emissions bioenergy will have to be promoted.

References:
Michael J. Lutz, Ken Caldeira, Robert B. Dunbar, Michael J. Behrenfeld, "Seasonal rhythms of net primary production and particulate organic carbon flux to depth describe the efficiency of biological pump in the global ocean", Journal of Geophysical Research, Vol. 112, 2007, C10011, doi:10.1029/2006JC003706.

Eurekalert: New research discredits $100B global warming 'fix' - November 29, 2007.

Biopact: International maritime body rejects risky ocean geoengineering - November 09, 2007

Biopact: The end of a utopian idea: iron-seeding the oceans to capture carbon won't work - April 26, 2007

Biopact: WWF condemns Planktos Inc. iron-seeding plan in the Galapagos - June 27, 2007

Bioapct: Scientists propose new geoengineering option: increasing ocean's alkalinity to soak up more carbon dioxide - November 19, 2007

Biopact: IPCC to warn of 'abrupt' climate change: emergency case for carbon-negative biofuels kicks in - November 16, 2007

Biopact: Scientists propose artificial trees to scrub CO2 out of the atmosphere - but the real thing could be smarter - October 04, 2007

Biopact: A quick look at 'fourth generation' biofuels - October 08, 2007

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Africa-centered biofuel and oil company Energem lists on the AIM

Canada's Energem Resources Inc announced that it has been listed on the London Stock Exchange's Alternative Investment Market (AIM) and is trading under the symbol ENM. Energem is an energy and biofuels company primarily engaged in the African energy sector, with several concrete biofuel projects being implemented. Energem produces ethanol from molasses in Kenya, while the energy crop of choice for a large biodiesel project in Mozambique is jatropha curcas, the hardy shrub that yields inedible oil. Energem disposed of certain non-core mining and up-stream oil and gas assets, to focus increasingly on renewable fuels.

The company now identifies the following as its core markets:

• Mid-Stream Oil - refined oil product distribution and sales, storage and infrastructure development: operations in Nigeria and Malawi and a methanol blended fuel manufacturing and sales project in Beijing, China.
• Biofuels - production, sale and distribution of crude and refined biofuels, including: ethanol production in Kenya and a jatropha-based biodiesel development project in Mozambique (previous post)
• Trading and Logistics - procurement, supply and logistics management to industry in sub-Saharan Africa.

Energem believes that demand and growth potential in its target markets is strong and that the group is well placed in terms of its African expertise and experience to become a significant player in these markets.

Oil prices are expected to remain high whilst, at the same time, the pressure to reduce dependency on carbon-based and non-renewable sources of energy is likely to increase. This pressure is expected to develop the biofuels market in which the group is now focussed, with African countries acting as both consumers (Kenya) and exporters (Mozambique).

Mozambique
Energem has initiated its first jatropha curcas farming project in the Bilene District of the Gaza province in Mozambique. The project operations are conducted through the ventures wholly owned Mozambican subsidiary, Energem Renewable Energy.

The initial land allocated to the project (1000 ha) will be scaled up dramatically over the life of the project and it is anticipated that by the time this project reaches maturity the land size of the farming operations will be anything from 60,000 hectares to 200,000 hectares:
energy :: sustainability :: ethanol :: biodiesel ::biomass :: bioenergy :: biofuels :: jatropha :: sugarcane :: Mozambique :: Kenya :: Africa ::

The project enjoys the full support at all government and provincial levels and employs anything from 200 – 300 people, with this figure is set to increase.

It is intended that the commercial crop of jatropha seed harvested from the farming operations will be processed to produce a crude biodiesel which will be exported to the projects target market, in the European Union. Initial testing of research crops and oils produced therefrom fall within the EU specification for biodiesel.

Jatropha curcas has been specifically chosen as the projects principal feedstock crop. Jatropha is a hardy, inedible plant, whose seed produces a relatively high yield of oil when pressed. The cost of producing crude biodiesel from Jatropha is low when compared to current palm oil and rapeseed feedstock. The land on which the project is farming does not compete with ordinary feed crop land.

Kenya
Energem is the controlling shareholder in the Spectre International Ltd, which manages the Kisumu ethanol plant in Kenya. The molasses-based plant was initiated in the late 1970’s as a state-owned project that was subsequently mothballed in the eighties. It was acquired by Spectre in 2003, who immediately commenced with a rehabilitation project that resulted in the commissioning of the plant in 2004. The yeast plant was completed in 2006.

Energem is the controlling shareholder in Spectre with a 55% share. A local partner, with manufacturing and distribution experience in the region owns 40% while a development trust holds 5% for the benefit of the local community.

Independent valuation and an engineering report completed in March 2004 placed plant pre-commissioning value at US$24 million. The plant replacement value estimated at approx US$100 million, with Energem’s 55% interest included at the book value of US$24 million.

Currently a daily output of 60,000 litres has been achieved whilst Energem focuses on increasing the yeast production and maximizing the usage of natural by products. Production output of up to 120,000 litres per day can be achieved with a marginal investment.

Current products include industrial ethanol for blending with liquid (bio-fuels), potable alcohol for beverages and chemical industries, and yeast.

Besides having access to the water supplied by Lake Victoria the plant is located in the center of a sugar cane growing region where it’s most important raw material, molasses, is readily available.

The plant is well positioned to supply ethanol as a fuel additive to Kenya, Uganda and other nearby countries and this strategy is in line with local governmental aspiration and also complimentary to mid-stream oil activities of the Energem Group.

Through the introduction to the AIM the directors are seeking access to London's capital markets and a broader investor base: no new money is being raised at this stage and no existing shares are being sold by the current shareholders. Major shareholders include the Board, who in aggregate own approximately 28% of the shares in issue, RAB Special Situations (Master) Fund Limited, which holds approximately 17% of the shares in issue and RAB Energy Fund Limited, which holds approximately 8% the shares in issue. Canaccord Adams Limited is acting as Nominated Adviser (NOMAD) and broker to Energem.

References:
Energem: Energem Resources Inc - Announces listing on the London Stock Exchange - Alternative Investment Market (AIM) [*.pdf] - November 26, 2007.

Biopact: Energem acquires jatropha biodiesel project in Mozambique - August 02, 2007

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Russia's Tambov region to export ethanol to the EU - Putin reiterates Russia's biofuel potential

A large project to produce bioethanol from sugar beet processing waste is currently under review by the Tambov region's administration, in South-West Russia. The plan is to establish a production unit with an annual capacity of 250,000 tons per annum (317.5 million liters/83.9 million gallons). The output will be entirely destined for export to Europe, because high Russian taxes on alcohol and alcohol-containing liquids make the use of the fuel in a domestic context not cost-effective.

The Tambov oblast government is studying an initial investment of €200 million for the project, to be located in the capital city Tambov, around 450km South-East of Moscow. Residues from sugar beet processing will be the feedstock. Sugar beet pulp is an abundant waste stream, usually used as low value animal feed or disposed of at additional cost. In 2007, gross production of sugar beet in the Tambov region totaled 2.7 million tons.

On November 27, Russian president Vladimir Putin and Minister of Agriculture Alexey Gordeev told media that, even though Russia is an oil and gas giant, it will actively pursue opportunities to participate in the growing global bioenergy market. The Russian President has requested Gordeev to look into enhancing the business climate for expansion in bioethanol production in the country. Putin said Russia, being the world's largest country with enormous forest resources, has a very important, currently untapped potential for both solid and liquid biofuels.

He cited the Tambov project as a first example of the emergence of an export oriented bio-industry. Gordeev added that Russia has already launched a bioethanol plant in Omsk oblast, with another rapeseed crushing facility in Tatarstan now under construction. Gordeev referred to the fact the EU will need to cultivate biomass on one third of its farm land to meet the region's biofuel targets. Russia could help meet these by exporting fuels to the Union.

Putin reiterated his statement of last month, when he said he sees no objections to Russians "who work in the countryside to take some of the market share of our petroleum and gas producers", effectively encouraging those with plans in the bioenergy sector to go forward:
energy :: sustainability :: biomass :: bioenergy :: biofuels :: ethanol :: sugar beet :: waste :: forestry :: Russia ::

Recent projections by researchers working for the IEA's Bioenergy Task 40 show the Commonwealth of Independent States (former Soviet Union) together with the Baltics have a combined sustainable bioenergy capacity of maximum 199 Exajoules by 2050 (earlier post), or roughly 32.6 billion barrels of oil equivalent energy per year. This comes down to 89 million barrels per day, or roughly the same amount as the world's total current oil consumption.

Earlier this year, Russia's agriculture minister Alexej Gordejev estimated the country has 20 million hectares of low value land available immediately for bioenergy. A short term goal would be to produce a whopping 1 billion tons of biomass for exports, roughly the equivalent of 15 Ej of energy, or 2.4 billion barrels of oil equivalent per year (earlier post). That is around 6.7 million barrels of oil per day; Russia currently produces some 9.1 million bpd of fossil oil.

Russia has also been cooperating with Germany to study future biomass and bioenergy