Biofuels International July/August 2017

July/August 2017 Issue 4 • Volume 11

international

All eyes on Africa

Uganda presses ahead with new biofuels law

Sunflower power Hawaii firm makes oils from crops

RegionalRegional focus: biofuels in southeasxxxxxralasia focus: biofuels in Africa

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international Issue 4

Volume 11

July/August 2017 Woodcote Media Limited Marshall House 124 Middleton Road, Morden, Surrey SM4 6RW, UK www.biofuels-news.com MANAGING DIRECTOR Peter Patterson Tel: +44 (0)208 648 7082 peter@woodcotemedia.com EDITOR Liz Gyekye Tel: +44 (0)208 687 4183 liz@woodcotemedia.com DEPUTY EDITOR Daryl Worthington Tel: +44 (0)208 687 4126 daryl@woodcotemedia.com INTERNATIONAL SALES MANAGER Matthew Clifton +44 (0)203 551 5751 matthew@biofuels-news.com US SALES MANAGER Matt Weidner +1 610 486 6525 mtw@weidcom.com PRODUCTION Alison Balmer Tel: +44 (0)1673 876143 alisonbalmer@btconnect.com SUBSCRIPTION RATES £160/$270/€225 for 6 issues per year Contact: Lisa Lee Tel: +44 (0)208 687 4160 Fax: +44 (0)208 687 4130 marketing@woodcotemedia.com

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ISSN 1754-2170

biofuels international

c ntents 3 News 12 Incident report 13 Plant update 14 Market analysis 16 Current price index 18 She shoots, she Skors

Big interview with Growth Energy’s Emily Skor 20 All eyes on Africa

Uganda moves closer to landmark biofuels law 22 Say ‘aloha’ to sunflower-based biofuels project

Pacific Biodiesel: Hawaii’s largest farm-to-fuel innovator

24 Transforming Colombia into a biofuels powerhouse

Colombia’s largest ethanol plant begins commercial production 26 Testing, testing, 1-2-3

Neutral Fuels’ Karl W. Feilder takes us through the commercial realities of biodiesel testing 28 Unifying the biofuels industry

A look at how standard bodies can assist with the quality control of biofuels 30 Pretreatment process

Analytical techniques to evaluate the efficiency of biomass pretreatment processes 32 Biojet crop set for European trials

Production of carinata, a rapeseed/mustard cross with strong aviation fuel credentials, is set to be trialled in Europe 34 Renewable2

In Italy, a plant is producing biobutanediol from renewable sources, and using the by-products in anaerobic digestion (AD) 36 Jatropha through the generations

Blending jatropha plant science and bio product technologies for a sustainable green business

international

July/August 2017 Issue 4 • Volume 11

38 Green gold in a shrub

Spotlight on jatropha 40 Opportunities in Mexico

A company in Mexico has achieved remarkable results from jatropha crops, showing the enormous benefits of R&D

All eyes on Africa

Uganda presses ahead with new biofuels law

Sunflower power Hawaii firm makes oils from crops

RegionalRegional focus: biofuels in southeasxxxxxralasia focus: biofuels in Africa

Front cover image: ©dk_photo Image from bigstockphoto.com FC_Biofuels_july-aug_2017.indd 1

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biofuels guest comment

E10 power

Claire Wenner, Head of Renewable Transport at the REA

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Y

ou could be forgiven for thinking that electric cars are a magic bullet for addressing everything from worsening air quality right through to climate change.

In June, the UK government announced that an Automated and Electric Vehicles Bill will be introduced to encourage the use of electric vehicles, with the aim that ‘almost every car and van will be zero-emission by 2050’. It follows a £100 million (€112m) scheme launched in London last year to encourage greater use of electric vehicles. So does this spell the end of the internal combustion engine?

And what does this all mean for the environment?

The reality is that, while demand for electric vehicles is steadily rising, albeit from a very low base, claims that they will represent the majority of transport vehicles in the next ten years are likely to be over-optimistic.

Latest figures from the Society of Motor Manufacturers and Traders (SMMT) revealed that just 4,444 electric vehicles were registered in June versus 129,169 petrol vehicles. In short, it doesn’t look like the majority of Brits will be giving up their petrolpowered vehicles anytime soon, particularly when you consider that the average life span of a car is 14 years.

And even if they did, the infrastructure doesn’t yet exist to support the wide-spread use of electric vehicles. There are also concerns that the power grid would currently struggle to support the mass scale use of electric vehicles.

There is no doubt that electric vehicles have a key role to play in decarbonising transport, and it’s important that the government, car manufacturers and

organisations such as the Renewable Energy Association and other stakeholders continue to fund and support what is a really important technology. However, we need to keep a sense of perspective here and we shouldn’t expect to see them become the mainstream vehicle of choice in the near future. It’ll take time.

Unfortunately however, time is something the government doesn’t have when it comes to cleaning up our air. 40 million people in the UK are living in areas with illegal levels of air pollution, and WHO figures released earlier this year revealed people in Britain are more likely to die from dirty air than those living in some other comparable countries.

Climate change According to the government’s own advisers, the Committee on Climate Change, at present the transport sector represents a quarter of the UK’s total greenhouse gas emissions, higher than any other sector. Clearly the government is right to focus on decarbonising transport.

But if electric vehicles aren’t the answer in the immediate to short term, what is?

Frustratingly, the answer is staring the government in the face and has been for some time.

With petrol registrations on the up and only expected to rise further in light of the current negative headlines connected to diesel, cleaning up petrol has to be a priority.

So it’s disappointing that the government appears to be hesitating on introducing E10, containing 5% less fossil fuel than current petrol.

Already available and popular across Europe, North America and Australasia, E10, which contains 10%

of the renewable transport fuel bioethanol, would be the emissions equivalent of removing 700,000 vehicles from UK roads. To put that in perspective, that volume of vehicles is equivalent to a traffic jam stretching from London to Moscow.

Furthermore, it requires no consumer behavioural change and, since 2016, it has been the optimal reference fuel for all new cars meaning any car made since then actually runs best with E10 in it. Indeed, by 2020, 99% of cars on the road will be warrantied to run on E10 according to the SMMT. There’s no doubt that E10 represents one of the quickest, easiest and most cost effective ways of decarbonising transport and tackling air pollution.

However, the government has failed to act for several years and is procrastinating on a number of important policies, including its Clean Growth Plan and amendments to the Renewable Transport Fuel Obligation, which will have major implications for carbon saving and air pollution. Such time wasting is unfathomable and the UK is now in real danger of missing legally binding targets relating to renewable transport fuels and air quality, which could prove costly.

The new Parliamentary Under-Secretary of State for the Department for Transport, Jesse Norman, has a real chance now to make an immediate difference to both combatting climate change and air pollution. The solutions are there. But is the political will to implement them?

Clare Wenner Head of Renewable Transport Fuels, Renewable Energy Association

2 july/august 2017 biofuels international

bioethanol news EPA proposes Renewable Energy Group’s RFS volumes CEO resigns abruptly for 2018 Advanced biofuels producer Oh said: “I am extremely proud of The US Enviornmental Protection Agency (EPA) has signed a proposed rule setting the minimum amount of renewable fuels that must be supplied to the market in calendar year 2018 under the Renewable Fuel Standard (RFS) programme.

This includes setting the renewable volume obligations (RVOs), along with the 2019 RVO for biomass-based diesel.

The 2018 requirement for total renewable fuel drops slightly from 19.28bn gallons to the proposed 19.24bn gallons, when compared to the final RVO for 2017. The cellulosic RVO has also been lowered, from 311 million gallons in 2017 to a proposed 238 million gallons in 2018, with the advanced biofuel requirement dropping from 4.28 billion gallons in 2017 to a proposed 4.24 billion gallons in 2018.

The agency said it would keep the 2018 target for conventional ethanol at 15 billion gallons, unchanged from 2017.

Elsewhere, the final RVO for biomass-based diesel in 2017 was set at 2bn gallons.

The biomass-based diesel standard for 2019 would be maintained at the 2018 levels of 2.1 billion gallons.

The EPA is beginning technical analysis that will inform a future rule to reset the statutory volumes for cellulosic, advanced, and total biofuels.

The law requires this reset when certain conditions are met.

“Increased fuel security is an important component of the path toward American energy dominance,” said EPA Administrator Scott Pruitt. l

biofuels international

Renewable Energy Group (REG) has announced that Daniel J. Oh has resigned as president and CEO and as a member of the company’s board of directors. The resignation was effective 3 July, 2017.

“The board appreciates Dan’s work in guiding REG to its position as the industry leader with sales of over $2 billion (€1.75bn) in 2016, as well as his willingness to assist on transitional matters over the next several months. We wish him the best in his future endeavours,” said Jeff Stroburg, chairman of the REG board of directors.

the REG team and the success we achieved over the past ten years.”

The group did not expand on why Oh had resigned so abruptly. The board of directors appointed long-time director Randolph (Randy) L. Howard as Interim president and CEO. Howard has served as a member of REG’s board of directors since February 2007, serving on both the company’s Audit Committee and Nominating and Governance Committee and as chair of the Board’s Risk Management Committee.

“We expect a seamless transition and firmly believe Randy Howard is an ideal choice to begin taking REG to the next level,” Stroburg said. l

Mexico approves 10% ethanol content for gasoline Mexico’s energy regulator, CRE, has approved an increase in the ethanol content in gasoline for domestic consumption to as high as 10% from the current 5.8%, according to Reuters.

The move has been made despite environmental groups warning that the action could cause more pollution. The change will mean gasoline imported and sold in

Mexico will be closer to that sold in the US. “Gas stations in Mexico can’t offer gasoline similar to that sold in the United States of America because norms prohibit such gasoline from being sold in Mexico,” CRE said in the official gazette.

“This situation, in addition to being a disadvantage for the already established gas stations in Mexico, represents a barrier for those who plan to import into Mexico gasoline used in the United States of America,” CRE added.

The new measure will only affect gasoline, not diesel. It took effect on 27 June, 2017. It will not apply to Mexico City and many of its surrounding municipalities, or Guadalajara, the capital of Jalisco state and Monterrey, the capital of Nuevo Leon, claims the Reuters article.

Environmental groups have warned that increasing ethanol levels in gasoline will worsen air pollution in Mexico. l

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Exhibition space is limited and cannot be added to, so make sure you don’t miss out. Book the best position now.

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bioethanol news Pacific Ethanol to acquire Illinois Corn Processing US biofuels producer Pacific Ethanol has entered into a definitive agreement to acquire Illinois Corn Processing (ICP), for $76 million (€66m), which includes $15 million in working capital.

ICP’s facility is adjacent to Pacific Ethanol’s Pekin plant and is located on the Illinois River. ICP produces fuel-grade ethanol, beverage and industrial-grade alcohol, dry distillers grain (DDG) and corn oil. The facility has direct access to end-markets via

barge, rail, and truck, and expands Pacific Ethanol’s domestic and international distribution channels.

Neil Koehler, Pacific Ethanol’s president and CEO, said: “The acquisition of ICP underscores our commitment to making strategic investments that expand and diversify our production platform, increase revenue, expand our marketing reach and improve our overall profitability. Two-thirds of ICP’s production is currently dedicated to producing high-quality, premiumpriced alcohol products for the beverage and industrial markets.” l

Raízen offers Tonon $248m for two ethanol mills Brazil’s sugar and ethanol company Raízen, a joint venture between Cosan Indústria e Comércio and Royal Dutch Shell, has offered 823 million reais ($248 million/€217 million) to buy two ethanol mills from Tonon Bioenergia .

In June, Cosan said in a securities filing that Tonon Bioenergia, which has been going through an in-court reorganisation, is expected to sell two ethanol mills, Santa Cândida and Paraíso, in an auction. l

ePURE ‘heartened’ by MEPs’ views on biofuels The renewable ethanol association ePURE has responded to Hans-Olaf Henkel and Marijana Petir, two MEPs in the European Parliament who recently stressed the importance of biofuels in the decarbonisation of the EU’s transport sector.

In a recent article in The Parliamentarian, Petir and Henkel discussed the future of the EU’s energy sector and the promotion of renewable resources. In that interview, Henkel described biofuels as “indispensable” for the transitional phase of the decarbonisation of the transport sector.

Petir meanwhile, addressed the European Commission’s proposed changes to the Renewable Energy Directive, dubbed RED II, which would see a gradual phase out of crop based biofuels such as ethanol from the fuel mix.

“I believe that the level of

production of conventional biofuels should remain at seven per cent of final gross energy consumption in the transport sector at European level without phasing down to 3.8% by 2030, as proposed by the Commission,” she told The Parliamentarian.

Emmanuel Desplechin, secretary general of ePURE, has responded positively

to the arguments made by the two MEPs. “It is heartening that so many Members of the European Parliament agree the EU needs to set higher ambitions when it comes to renewables – especially when the EU is trying to step up its global leadership role on the issue of climate change,” he told Biofuels

International. “Achieving the EU’s increasingly important Paris goals and reintroducing binding national targets will require contributions from all renewable energy sources with proven GHG savings and sustainability.

That includes renewable ethanol – whether from so-called ‘conventional’ or ‘advanced’ technologies.” l

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biodiesel news EBB: ‘Unfair’ Polish biodiesel exports damaging EU renewables market The European Biodiesel Board (EBB) has heavily criticised what it deems unfairly low priced biodiesel exports from Poland, claiming they are causing serious harm to the EU internal market for renewable fuels, and to fuel operators in many countries.

For more than a year Polish “fuel market players” have been deliberately exploiting a loophole in the country’s biofuels legislation, causing significant financial damage

to the biodiesel production chains of countries such as Romania, the Netherlands, Italy and France among others, according to a statement from EBB. “In Poland the accounting of a given biodiesel volume towards the national blending mandate is based on a simple invoice of purchase by the fuel distributor,” explained the EBB. “As Polish law does not explicitly require the biodiesel accounted towards the blending mandate to be consumed within its boundaries, some Polish operators have been

capitalising on the export of underpriced biodiesel that has already been declared as blended. As a consequence, a large part of biodiesel volumes are counted towards EU national blending mandates twice, a first time – falsely – in Poland and then – at an unfair dumped price – in any other EU country.”

“As a result an increasing number of EU stakeholders – from farmers through oilseed producers and crushers, to biodiesel producers – are experiencing economic loss and very negative impacts on their businesses,” the EBB continued. “The Polish

legislative loophole creates significant distortions by decreasing the overall profitability of local biodiesel producers, prompting job loss along the chain, curbing the progress in local energy and protein independence, and impacting the revenues of farmers and PMEs.” In the statement, EBB stated that this is a process that has to be stopped. The association of European biodiesel producers claims that both the EU and national authorities have failed to challenge the situation, despite a number of alerts from the industry. l

B10 fuelling Kuala Lumpur’s city fleet Kuala Lumpur City Hall (DBKL) is aiming to use B10 biofuel for all of its diesel-powered vehicles by the end of the year, according to a press release from the Malaysian Palm Oil Board.

DBKL’s Mechanical and Electrical Engineering Department engineer Muhammad Alif Muhammad Noor said that this goal was part

of the DBKL’s initiative to make Kuala Lumpur a ‘green city’.

“We have 2,040 vehicles. Half of them currently use diesel. We plan to migrate all of them by year end with the support of the Malaysian Palm Oil Board (MPOB),” he told the press during field testing of DBKL vehicles using B10 biodiesel.

Since 2014, all diesel sold in Malaysia has 7% palm oil content, meaning it is referred to as B7. The government plan is to increase this blend to 10%

(hence, B10) by the end of the year.

According to the MPOB press release, the vehicles involved in the field test showed significant reduction in carbon emissions. The tests were carried out by Malaysia’s Department of the Environment.

“Our Nissan UD LKA produces only 2.8% emissions while our pick-up truck, Navara, 2.7%. This is excellent, as the DoE cut line is 50%. This is far better than the normal diesel,” said Alif. l

New biorefinery planned for Queensland, Australia The government of Queensland has announced plans for a new biorefinery in the state. The new facility, which will be built and operated by US company Amyris, suggests the drive to attract biorefinery investors to Queensland is starting to pay off.

Queensland Premier Annastacia Palaszczuk, speaking in San Diego at the BIO2017 International Convention, said the planned biorefinery could create upwards of 70 jobs and boost Queensland’s reputation internationally as a leading biofutures location.

“Amyris is seeking to replicate its successful biorefinery in Brazil and sees Queensland as an ideal location due to the abundance of sugarcane and close proximity to Asia,” Palaszczuk said.

“The company’s proposed biorefinery would aim to produce 23,000 tonnes a year of a sugar cane-based ingredient called farnesene which is used in a range products including cosmetics, fragrances, nutraceuticals, polymers, and lubricants.”

Amyris president & CEO John Melo highlighted the benefits of setting up a biorefinery in Queensland.

“Our growing demand in China for Vitamins and the Asian demand for cosmetics and fragrances supports a new specialty farnesene fermentation factory in Queensland,” Melo said. l

8 july/august 2017 biofuels international

biodiesel news Neutral Fuels first to use crowdfunding for biofuels production Dubai-based Neutral Fuels is set to use crowdfunding platform Eureeca to expand production and meet the ever growing demand for clean, green biofuels. It is believed to be the first time a biofuels company has raised capital in this way.

The company, the first and one of the largest in the region, is looking to build on six years of profitable growth. Neutral Fuels co-founder and CEO Karl W. Feilder told Biofuels International: “We recently succeeded in commercialising the production of biodiesel using an enzyme

Oslo airport’s 16,000km long biofuel controversy Oslo airport is using renewable jet fuel made from waste cooking oil as part of its fuel mix, but the fact this fuel is being imported from California has led to question marks about its real environmental credentials, according to Reuters.

In 2016, Oslo became the first international airport to offer biofuels as part of the fuel mix it sells, with Los Angeles and Stockholm following soon after. This growing trend was part of an effort to lower the surging greenhouse gas emissions from the aviation industry.

“This is a tiny little drop (in fossil jet fuel use). But it is the first drop,” said Olav Mosvold Larsen of state-owned Avinor, which runs 45 airports in Norway. He pointed out to Reuters that jet biofuels were twice the cost of conventional fuels.

In the last few months, Avinor has started importing its waste cooking oil from AltAir, a Californian firm whose sources include fast food restaurants. This means Avinor’s jet fuel is having to be trucked and shipped over 10,000 miles (16,000km). Previously, Avinor’s jet fuel came from Spain. l

biofuels international

catalyst. We are now raising funding to establish the third production line in our factory, which will be flexible and able to run the enzyme based biodiesel production or traditional production.”

He went on to state that Neutral Fuels expects to double its sales revenue in 2017 compared with 2016, and see a continued increase in demand from its local market.

“We are very lucky, in that we sell every drop of fuel we can produce and we have a good supply of raw materials, so the precise dimensions of the new scalable production line will depend on the level of interest we receive in our crowd funding round.” Feilder added.

The company sees a range of benefits

to using the crowdfunding route: “There are a number of great advantages to crowdfunding - especially in the Eureeca model - as it allows a larger number of small and medium sized investors to acquire an actual shareholding in our company. This will expand our shareholder base internationally, and hopefully open the way to future opportunities beyond our Dubai home.”

Founded in 2013, Eureeca is a multi-regulated platform which has received licensing from the UK Financial Conduct Authority and the Securities Commission Malaysia in 2015, and recently the Netherlands Authority for the Financial Markets and Dubai Financial Services Authority (DFSA). l

Norway bans government buying palm oil-based biofuel The Norwegian parliament voted today to ban the public procurement and use of palm oil-based biofuel, according to media reports.

According to media reports in Mongabay, the move may make Norway the world’s first country to ban palm oil in its public procurement.

“The [Parliament] calls on the government to impose requirements through regulations to the Public Procurement Act that biofuel based on palm oil or by-products of palm oil shall not be used,” a

government resolution stated.

Public procurement is a procedure by which governments purchase goods or services from companies.

The resolution further stipulates that the “regulatory amendment shall enter into force as soon as possible.”

The news comes as a new report has been released by the Rainforest Foundation Norway (RFN) which claimed that palm oil-based biofuel is worse for the climate than fossil fuels.

The report, written by low-carbon fuels policy expert Chris Malins, blames land cover change like deforestation and the draining of peatlands for palm oil’s harmful impacts. l

july/august 2017 9

technology news New ‘bolt-on’ biodiesel kit launched Rayeman Elements is expanding its business to include a biofuels division, intended to deliver a ‘bolt-on’ technology for the production of biodiesel at existing ethanol plants.

It is hoped that this technology will allow ethanol facilities to diversify their product offerings, in turn increasing the value of their corn oil stream and expanding their advanced biofuels offerings.

Saola Energy will provide product engineering and design support on the new biofuels initiative, helping to develop the biodiesel technology.

As well as supplying the new ‘bolt-on biodiesel’ technology, Rayeman and Saola will focus on taking advantage of a proven enzymatic biodiesel process.

The new facilities the two companies are developing will include standard methanol recovery and distillation.

The standard plant size offered as part of the project will be a 2 million gallon per year production design. It will be possible to customise these designs based on customer requests, according to the press release from Rayeman.

“Saola Energy was the clear choice for design and engineering work regarding the biodiesel and co-location technology, due to their

Siouxland’s technology gets EPA green light Edeniq, a US-based cellulosic technology company, and Siouxland Energy have announced that the US Environmental Protection Agency has approved Siouxland Energy’s registration of its 60 million gallon per year (MGPY) corn ethanol plant for generation of D3 RINs from cellulosic ethanol.

Siouxland Energy is the fourth plant to receive a cellulosic ethanol registration from the EPA after deploying Edeniq’s Pathway Technology.

Edeniq’s registered customers now total 400 MGPY of nameplate ethanol capacity and are averaging 1% cellulosic ethanol. Over the next year, Edeniq expects to significantly increase average customer cellulosic ethanol production through ongoing technology enhancements that are being refined and introduced to customers as early as the third quarter of 2017.

“We are excited to be among the leaders in cellulosic ethanol production and expect a substantial boost to our profitability,” said Jeff Altena, Siouxland Energy’s operations director.

“Edeniq has continued to meet all of our expectations, beginning with the Cellunator installation we completed in the fourth quarter of last year and continuing through the EPA D3 RIN registration process.” l

extensive experience in the arena. We couldn’t be more pleased about our partnership with everyone at Saola and believe together, we will bring the change and solutions needed to the industry,” said Samantha Western president of Rayeman Elements.

Adam Belyamani, chief operating officer Saola Energy, said: “We were thrilled when we received the call from Rayeman Elements asking to provide the engineering design for their new technology. Saola Energy has worked with Rayeman Elements on projects in the past, and we are pleased to provide our biodiesel expertise in conjunction with their collocation technology.” l

Algae-fuel production pushes forward Scientists from ExxonMobil and Synthetic Genomics (SGI) have taken a huge step towards producing algae biofuels on an industrial scale, developing a strain of algae capable of converting carbon into a record amount of energy rich fat. This fat can then be turned into biofuels.

Using CO2 to generate fat from algae is not necessarily new, but the amount of fat produced by this new strain of algae is hugely significant.

As a statement from ExxonMobil’s Energy Factor publication states: “Fatty algae make the strain more fit to eventually produce biofuels at an industrial scale.”

Algae based fuel offers a number of significant benefits. It emits fewer greenhouse gases than most other energy sources, meaning it could potentially play a vital role in the transition to emission energy sources. Just as significantly, unlike other biofuel feedstocks such as corn or sugarcane, algae production on an industrial scale would not have a negative effect on food production. l

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biofuels incident report A summary of the recent explosions, fires and leaks in the biofuels industry Date

Location

Company

Incident information

5 July 2017 Cyprus

Vassiliko

Discarded biomass biofuel helped spread a fire near a Cypriot cement factory which used the fuel to power its operations. The fuel was found scattered around the area, with high temperatures likely causing the fire to begin, and then spread quickly due to the presence of the solid biofuel mass.

26 June 2017 Finland

Neste

A planned political protest by Neste employees, set to have started on 26 June, was cancelled.

Personnel groups at the Finnish sustainable fuels provider announced on 20 June that they planned to arrange a political protest against the ownership policy in Finland. Representatives of employee groups said they would discontinue Neste’s fuel distribution at the company’s Porvoo and Naantali terminals from 7am on 26 June until 7pm on 2 July.

Following discussion between Neste’s top management and representatives of the country’s employee groups on the morning of 20 June, the decision was taken to cancel the planned protest, averting significant disruption to the company’s distribution.

24 June 2017 North Dakota, Hankinson

US Renewable

Energy

Shortly after 9:30 pm on 24 June, emergency services responded to an explosion and fire at Hankinson Renewable Energy’s ethanol plant in North Dakota.

No injuries were reported, and the fire was extinguished within an hour. Hours later, production had resumed at the ethanol facility.

13 June 2017 India

Gujarat Oleo Chemical

Indian biodiesel producer Gujarat Oleo Chemical has filed for bankruptcy with the National Company Law Tribunal, owing to debts of $776.6 million (€682 million), according to the Business Standard.

The country’s first biodiesel producer, Gujarat Oleo uses castor biodiesel to produce Undecylenic Acid and Heptaldehyde through a continuous cracking process.

8 June 2017 Wisconsin,

US

Renewable Energy Group

A fire at the Renewable Energy Group’s biodiesel facility in DeForest, Wisconsin, caused $1 million worth of damage, according to fire department officials.

No one was injured in the fire.

31 May 2017 Wisconsin,

US

Didion Milling and Ethanol

An explosion at a corn milling plant in Cambria, Wisconsin killed five people and left twelve others seriously injured.

The explosion took place at Didion’s milling plant, adjacent to the company’s ethanol production plant, forcing the ethanol facility to go offline.

At time of going to press, the cause of the explosion remains unknown.

8 May 2017

Šilutė, Lithuania

MG Baltic Group

The owners of the S4 Turtas ethanol plant put their facility up for sale. Capable of producing around 55 million litres of bioethanol per year, production at the facility has stopped but can be restarted, the current owners stated. Fluctuations in the availability of raw materials is behind the decision to sell, a representative from the company told Biofuels International.

6 May 2017

Washington, US

TreOil Industries

The US Environmental Protection Agency has announced that it will resume the clean-up of the abandoned biofuels processing plant close to Ferndale, WA, in July.

In March, the EPA carried out an emergency clean-up on the site after regulators found hazardous substances leaking from containers. This initial clean-up is expected to cost $1 million (€800,000).

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plant update biofuels Green CMYK c76 m0 y100 k0 Pantone 362 c rgb r61 h164 b42

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Plant update:

AFRICA Eco Fuels Kenya

Location Kenya End product Biodiesel Feedstock Croton nuts Capacity 1,000 tonnes Construction / expansion / According to an interview with CNN, acquisition Eco Fuels Kenya have doubled production for the second year in a row, from 500 tonnes to 1,000 tonnes. The company now has plans to expand over the next few years, building five new factories in Kenya, as well as in neighbouring countries.

In addition, it was announced in December 2016 that it would be expanding production of croton nuts through the introduction of a new, 500 ha plantation

Selokong Sa Dimelana Location End product Feedstock Construction / expansion / acquisition

Investment

South Africa Limpopo, South Africa Castor seed oil In May 2017, Old Mutual Foundation and Red Bull announced Thabang Mabapa’s castor biofuel project as the winner of their “business pitch challenge”. The Limpopo-based Selokong Sa Dimelana project involves growing castor seed crops with the engagement of small-scale local farmers for the commercial production of castor seed oil as an alternative biofuel R100,000 (€6,575)

Lamo Fuel Location Limpopo, South Africa End product Biodiesel Feedstock Sunflower oil Capacity Five million litres per year Construction / expansion / Lamo fuel is developing the new acquisition facility that will use domestically produced sunflower oil as feedstock.

It aims to supply the mining industry in the Northern Cape and North West provinces Project start date April, 2017 Completion date Expected to come online in 2019

biofuels international

Kamtech Logistics Location Lira district, Uganda End product Ethanol Feedstock Cassava Capacity 4,000 litres of ethanol a day Construction / expansion / The ethanol plant in Uganda has acquisition increased prices for cassava threefold since coming online last year. Since beginning operations it has provided a new market for local cassava farmers, in turn supporting the local economy and boosting crop yields to 11 million tonnes a year compared to 6 million tonnes before the project started Completion date The plant has been operational since 2015

China New Energy Location Ghana End product Ethanol Feedstock Molasses and bagasse Capacity 45 million litres of ethanol per year Construction / expansion / China New Energy announced it acquisition has won a number of contracts with Supercare Group Limited of Ghana and CNBM General Machinery Co. in China to construct a new ethanol plant in Ghana. The ethanol will be used by the food industry Designer/builder China New Energy Project start date May 2017 Completion date Commissioning expected first quarter of 2018 Investment $12.5 million (€10.969 million)

Biofuels Nigeria Location Nigeria End product Biodiesel Feedstock Jatropha Capacity 100,000 litres per day Construction / expansion / Biofuels Nigeria has signed a acquisition memorandum of understanding with Kogi state for the take off of a proposed biodiesel plant in the region Investment $16.5 million (€14.5 million)

Tunisian Company of Petroleum Activities and Borj Cedria Technology Management Corporation Park (TBC) Location End product Feedstock Construction / expansion / acquisition

Project start date Completion date Investment

Tunisia Biodiesel Desalinated waters The Tunisian state owned oil company, along with TBC, have begun researching wastewater treatment and desalination from water used in oil production with an eye to produce biodiesel from the waste. The water will then be used for irrigation purposes December 2016 The research project is set to run for 13 months $110,000 (€96,559)

*This list is based on information made available to Biofuels International at the time of printing. If you would like to update the list with any additional plant information for future issues, please email liz@woodcotemedia.com

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biofuels market analysis

Oil’s price weakness slows US cash trade for biodiesel

by Brian Milne

Brian Milne

T

rade activity for the physical supply of biodiesel in US spot markets slowed sharply in the second quarter, as weakness in the oil market froze out buying interest, with the resulting narrowing producer margin partly explaining a year-on-year decline in available biomassbased diesel supply in April.

In contrast to the fourth quarter 2016 when the spread between ultra-low sulphur diesel fuel futures traded on the New York Mercantile Exchange and soybean oil futures traded on the Chicago Board of Trade inverted as soybean oil futures rallied to a nearly 2-1/2 year high on the spot continuous chart, a selloff in ULSD futures pressed the producer margin to breakeven in the second quarter.

NYMEX ULSD futures dropped to their lowest settlement value on the spot continuous chart in

2017 during June as an oversupplied global oil market dovetailed with a bearish short-term outlook to trigger long liquidation sales across the oil complex. The selloff came despite supportive data for distillate fuels, including healthy demand that ran 4.4% over year prior cumulatively in 2017 through early June.

US distillate fuel inventory fell below the comparable year-ago level in early March for the first time since November 2015, with days of forward supply tightening to a nearly two-year low of 34.5 days in mid-May. However, inventory again increased, edging above year prior in early June for the first time

by the American Trucking Associations dropped 2.5% in April while down 1.8% against the comparable year-ago period. The decline in April accelerated a slowdown in freight tonnage movement in March, which fell 1.8%.

However, the decline in the freight tonnage index in March was partly linked to late season snowstorms that snarled road travel.

Size matters “I have to admit that April’s contraction is a bit surprising, especially considering the anecdotal reports I’ve been hearing from fleets regarding freight levels,” said ATA chief

US distillate fuel inventory fell below the comparable year-ago level in early March for the first time since November 2015 since late February, while more than 20 million bbl above the five-year average.

After a relatively active first quarter in spot biodiesel trading, traders faced several headwinds in the broader distillate market in the second quarter, including a slowdown in freight tonnage moved by trucks. The For-Hire Truck Tonnage Index reported

economist Bob Costello.

“It’s not necessarily that tonnage levels fell in April that is surprising, but the size of the decrease. One explanation is that housing starts fell substantially in April as well, and residential construction generates heavier truck freight.”

The modest weakness appears transitory, with

the Institute of Supply Management reporting faster growth for the US manufacturing sector in May, with the growth trend now in its ninth month.

“Despite the fact that tonnage is down a total of 3.6% over the last three months, I still expect moderate growth going forward as key sectors of the economy continue to improve slowly,” said Costello.

Spot biodiesel prices in the US hovered on either side of $3.00 gallon from mid-May through mid-June.

Although RINs rallied, the oil futures market was captured by bearish sentiment in mid-June. The Commodity Futures Trading Commission in their weekly Commitment of Trader’s report showed noncommercial traders nearly erased a 14-month net-long position in NYMEX ULSD futures in midJune, with the speculator group holding a fractional 18-contract net-long stance.

Seasonally, oil demand strengthens globally in the third quarter compared with the second quarter, and production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and 10 non-OPEC oil producing countries are seen prompting drawdowns from global oil inventory. This should lend upside price support for ULSD futures in the coming months that translates into a greater

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demand pull for biodiesel.

The broader liquids fuel market could have limited upside for the remainder of 2017 and into 2018 if the market pessimism seen in June proved farsighted.

More likely, US oil futures will move higher as stronger

market share to natural gas.

All states in the US Northeast will also require ultra-low sulphur heating oil by 2018, which allows no more than 15ppm sulphur, down from 500ppm or higher. Currently the region is Balkanized, and a

ULSD/soybean oil spread Suggested producer margin (USD/gallon)

Heating oil has lost market share to natural gas seasonal demand begins to prompt large inventory drawdowns that not only improve the market’s fundamental disposition, but also its psychology. Faster US economic growth, which expanded year-on-year at a 1.2% annualised rate in the first quarter, would bolster the demand side of the ledger.

Winter months Biodiesel demand has also expanded during the winter months as an increasing number of heating oil distributors in the US Northeast, a region with the world’s largest concentration of residential and small business customers that use heating oil to satisfy their space heating demand requirements, blend biodiesel into heating oil. Bioheat experienced positive economics in the first quarter according to Barry Knox, executive director of the Northeast region for the Renewable Energy Group, Inc., adding customers want Bioheat.

After two consecutive mild winters in the US Northeast, odds for a third mild winter diminish, with a colder winter certainly boosting demand expectations for biodiesel.

Putting that aside, the trend for Bioheat to expand within heating oil is up as more distributors embrace biodiesel in the face of a shrinking market. Heating oil has lost

biofuels international

common fuel blend would provide increased fungibility throughout the region.

US biodiesel producers should also see margins improve as biodiesel imports from Argentina dry up amid an ongoing trade dispute between the United States and Argentina and Indonesia.

In late March, the National Biodiesel Board Fair Trade Coalition filed an antidumping and countervailing duty petition against the two countries for violating trade laws, with a preliminary determination from the US Department of Commerce expected in August.

In their filing, the National Biodiesel Board said the two countries dumped biodiesel into the US market at prices below their costs, and have stolen market share from US producers. The NBB said US biodiesel imports from these two countries surged from 2014 to 2016, taking 18.3% of the US market from domestic producers. l

EPA qualified biomass-based diesel supply volume

Market analysis spot prices

NYMEX ULSD futures spot continuous chart

For more information: This article was written by Brian Milne, who manages the refined fuel’s editorial content, spot price discovery activity and cask market analysis for DTN. Tel: +1-609-371-3328.

DTN is the leading digital provider of information services, supply chain connectivity solutions and decision-support tools to more than 80,000 customers in agriculture, oil and gas, trading and weathersensitive industries worldwide. DTN, based in Omaha, Nebraska and Minneapolis, and is owned by TBG, a private century old investment holding headquartered in Zurich.

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biofuels market analysis SCB Commodity Brokers global biofuels prices Prices quoted: 04/07/2017 Product

Mid Price

EU Biodiesel RED ($/mt) FOB ARA RME 926.75 FOB ARA SME 926.75 FOB ARA PME 916.75 FOB ARA FAME 0 926.75 FOB ARA FAME -10 926.75 EU Biodiesel Non RED ($/mt) FOB ARA RME 866.75 FOB ARA SME 866.75 FOB ARA PME 856.75 FOB ARA FAME 0 866.75 FOB ARA FAME -10 866.75 EU Ethanol (€/cbm) T2 FOB Rotterdam 573.00 CIF Duisburg 60% GHG 558.00 US Ethanol ($/cbm)

FOB US ANP 436.54 FOB Santos 513.00

URL: www.starcb.com Product

Mid Price

US Biodiesel B100 ($/gal) Houston SME Houston TME NY Harbour SME NY Harbour TME Mid West SME US Ethanol ($/gal) NY Harbour Barges Argo ITT Illinois FOB USGC Rule 11 TWS (Railcar) Rule 11 NWS (Railcar) RINs ($/RIN) 2017 Ethanol (D6) 2017 Biodiesel (D4) 2017 Advanced (D5) Emission Credits ($/mt) LCFS Credits

3.014 2.994 3.034 2.994 3.054 1.590 1.510 1.540 1.500 1.505 0.720 1.130 1.110 70.00

Current price index

E

uropean biodiesel consumers continue to either buy product on a spot basis or delay their purchases into the deferred periods as they look to capitalise on the backwardation in biodiesel markets and the contango in gasoil. The next few weeks will be pivotal for the European trade, as we approach the rapeseed harvest in Europe we will see some producers out of the market for maintenance and the traditional old crop versus new crop supply issues may make that backwardation even more volatile, currently the forecast is for an early harvest and despite the total planted area being down on last year yields look encouraging.

German demand has been a disappointment this year, percentage blends of biodiesel compared to last year is down as RME, PME and UCOME producers continue to increase their GHG savings, effectively reducing demand from oil companies. Methane capture palm oil has captured a large percentage of the German market this year and has managed to out-compete UCOME and other grades on a cost per GHG percentage basis.

Most of the high GHG methane capture palm based biodiesel has been European produced as the integrated producers in ARA, Spain and Germany have chosen to import the feedstock instead of the end product from Asia, as a result there have been limited opportunities for Asian producers to export into the EU. As a result of the PME flow into Germany (either as a blend into Fame

0c or on a mass-balance basis) and increasing UCOME imports from Asia and elsewhere UCOME producers have struggled in Europe. April and May were particularly difficult months for producers and negative margins, as gasoil, vegetable oils and biodiesel prices drifted lower UCO feedstocks prices remained resilient forcing some Europeans to mothball production or operate at negative margins, whilst the last few weeks have been better UCOME is still struggling to compete in Germany and the UK as quite often tickets are a cheaper option.

The regulatory environment remains as usual full of uncertainty and as we look at the fourth quarter of this year there are big questions markets yet to be answered with regards to imports of Argentinian and Indonesian product. Last year, the WTO ruled in favour of Argentinian and Indonesian producers stating that the current countervailing duties were unlawful, we are yet to understand if duties will be reduced, cancelled or if there are any plans to appeal these decisions but the market dynamics have now been complicated even further by the US now looking to introduce extra duties on Argentinian and Indonesian supplies, all this has done is increase uncertainty and further motivate traders to focus only on the spot months.

The EU ethanol market experienced increasing futures prices during Q2 2017, peaking on the 14th June with outrights ranging from €576/cbm for nearby months down to €476/cbm for more deferred

months with underlying liquidity out to Q4 2018. From a physical viewpoint, the market goes into July with a strong market on physical which has been well supported for the last couple of months. Fluctuations in physical spot prices for European ethanol – currently trading around the 570 range – have been relatively constant in recent months when comparing them with Q1 2017 which experienced prices varying from €545/cbm low to €667/cbm high.

Furthermore, the European Commission intends to preserve the Fuel Quality Directive (FQD) beyond 2020 owing to its environmental performance in the reduction of greenhouse gas emissions.

European ethanol provided an average greenhouse gas saving of over 66% compared to fossil fuel in 2016, up 2% YoY, stated in a press release by the European ethanol industry Association (ePURE) at the beginning of June. The European Commission’s Renewable Energy Directive (RED) recast proposal is now being considered by the European Parliament and the EU Member States.

Apart from the EU market, the Mexican government has recently increased fuel ethanol blending mandates across the country from 5.8% to 10% (excluding Monterrey, Guadalajara, and Mexico City) which might lead to new export opportunities for US ethanol. This would represent an additional export boost for US ethanol after the occurrence of higher sugar prices in Brazil as a result of increased global demand for sugar. l

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biofuels big interview An outlook of the US ethanol industry

She shoots, she Skors

L

By Liz Gyekye

ast year, Emily Skor started her role as CEO of Growth Energy – a trade body that represents US ethanol producers. Here, Liz Gyekye catches up with her.

How has your first year been in your role?

It’s gone by very quickly. What a year. We had a presidential election with the outcome that we had. You also had things like the point of obligation as a major topic of conversation.

You had great success on E15. It has been a dynamic year. We have a great team at Growth Energy and we are working hard, working probably longer hours than we want to. However, that’s OK. I’ve balanced my time in Washington and on the road to get to know the industry.

I have visited a lot of plants.

You always learn more about the industry when you visit them at their home base. I am going to learn a lot more when I am in Kansas or Nebraska, Wisconsin or Minnesota than if someone came to visit me in Washington.

How is the ethanol market? How bullish is the market shaping up for the future?

I think you have got a lot of good news coming out of the ethanol industry right now. Let’s start with this so-called ‘blend wall’. In the US, we are blending more than 10% of ethanol into the nation’s gasoline supply. Our adversaries and detractors were saying that we could not blend more than 10% of ethanol in the US. However, we are doing that now. This was due to the fact that we have saturated the regular gasoline market. 97% of US

year, China was our third biggest export market. This year we have not exported anything because of those protective tariffs. Brazil is contemplating something similar and Peru is talking about it. So, we need to really ensure that this administration understands the importance of global ethanol trade.

Emily Skor, CEO at Growth Energy

fuel is blended with 10% ethanol. We are seeing a lot of good momentum on the sale of E15 and E85.

If you look at the growth of ethanol consumption, 29 states are offering E15 and that’s nearly 900 gas stations.

That number is going to double by the end of next year.

These are the highest volume retailers that sell about three times the usual volume of gasoline (selling both E15 and E85).There’s wonderful growth in the domestic market.

On the global side, we didn’t have a great year last year. We exported more than a billion gallons. So far, since April, we exported almost 500 million gallons. There is

a lot of opportunity globally.

Recently, Mexico announced that they would allow 10% ethanol blending, with the exception of their three major metro areas.

So, we have more work to do in Mexico. However, for a market that was closed to ethanol for years, this is really great progress and is very promising.

In other parts of the country we have headwinds. Right now, US corn ethanol is so competitive that we are the cheapest octane source globally. As a result, you have countries like China that have put some protective tariffs in place. This started at the beginning of this year. Last

Do you think consumers are understanding more about E15?

We have a lot of work to do.

When the consumer has the ability to purchase E15 they will buy it. We are seeing that the ethanol sales volumes are going up in those gas stations. We are also seeing that consumers do not actually know what E15 is.

They are buying the gasoline because it’s an 88 octane that is 5-10 cents cheaper than 87 octane. So, price alone is getting consumers to buy this. However, when you talk to the retailers they say “if we market it and we price it right we will sell even more”.

Hence, the big step for us moving forward is to build some marketing and branding of E15 in a way that really resonates with the consumers.

If you do that, you will start to sell more E15 at every one of those gas stations and see some consumer demand for those options at the pump.

If I was to stand at a petrol pump station today, will I see consumers buying E15?

The stations are offering it and the consumers are buying it. We have some big challenges – Reid Vapor Pressure (RVP) is one of them.

The Environmental Protection Agency regulates the volatility of fuel emissions and that is a

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good thing, because you don’t want smog in the summer.

Nearly 30 years ago, when they passed the Clean Air Act in 1990, they gave a waiver to fuel with 10% of ethanol because they realised that the environmental credentials of ethanol were good. They didn’t grant a waiver to fuel that contained more than 10% ethanol because it did not exist at the time. They didn’t know that they could do that.

So, 27 years later, the regulations have not caught up with the fuel marketplace.

As a result, retailers can’t sell E15 in the summer driving months. From the start of June to September, they cannot sell E15 to regular vehicles that are not flex-fuelled.

There is a lot of summer driving where consumers cannot use E15 for their cars.

It’s confusing for consumers who buy E15 on 31 May and then in June the pump says flex-fuelled vehicles only.

There are major retailers who are very interested in wanting to offer E15 but because of this problem they are not doing it. If this problem was solved, this would create ethanol demand and give more of our product into the market place.

So, what are you trying to do to turn that around?

At the moment there is a bill going through Congress and all it does is add two words to the law. Where the waiver says we will grant a waiver to 10% ethanol, we want it to change to say 10 or more percent ethanol. You add those two words to the law and this problem goes away.

It is a simple fix. However, politically it’s going to take a lot of work to get it passed, but it is a straightforward fix.

The whole of the industry is behind this. This situation is really limiting our growth of E15. Retailers are on the sidelines and the ones that are selling E15 may not put them in all of their stores

biofuels international

because of this limitation.

It’s about updating a legislation that is nearly 30 years old.

What are the other challenges that you face?

Every day we wake up and we have to defend the renewable fuel standard (RFS) as an industry. It has served this industry so well.

The RFS created our fair and competitive marketplace. We have surpassed a 10% blend rate as a nation and we are now directly eating into the market share of the petroleum industry. It’s competition. They will throw every argument that they can to say that we should reform the RFS and let’s open it up and change it “because it isn’t working”.

However, it is working and

going to demonstrations and Congress. They are led, in part, by US business magnate Carl Ichan who happens to be a friend to the President.

He will use that and leverage that as much as he can.

However, on the other side, you have the vast majority of people involved in the fuel supply chain that are opposed to changing the point of obligation because they understand that you slow down the RFS by holding it back, you complicate it and you add red tape to the system. You are also disincentivising our E15 retailers. So, it has become quite contentious. It is still something that is talked about. We are not out of the woods yet. EPA is looking at it. Valero had petitioned the EPA to change it. The

Right now, US corn ethanol is so competitive that we are the cheapest octane source globally we need to continue to conserve it and protect it.

In relation to the point of obligation, you have a small group of refiners who want to change who the obligated parties are. They are bellyaching because the RINs (renewable identification numbers) are costing them money. Well, these are companies that had eleven years to figure out their business model. Shell, Exxon and Chevron are not complaining about the point of obligation. They want to get rid of the RFS, but they are not complaining about being an obligated party because they built their business around understanding “either I blend the ethanol and hand in a credit or a buy it on the RIN market”. You have a small group of refiners that are being so active in trying to get this changed. They are

comment period closed early this year in February.

Growth Energy provided comment to it and a lot of other people in the industry did. EPA is reading those comments and evaluating it. We have to see what they ultimately determine.

The previous administration proposed to deny this petition, which is what we want. We want it to stay how it is.

What positive things are happening?

You look at what we have done in expanding the retail marketplace for E15. That is a phenomenal success. I give a lot of credit to the members in this industry, who put their own funds forward. You had private funding complimenting government grants. You had government grants to the retailers, as well as private funding. This gave the retailers

the funds they needed to reconfigure their gas stations and put the blender pumps in.

It’s a tremendous success.

Is it growing fast enough? No, of course we want it to grow faster. We want every gas station to sell E15 tomorrow.

However, we have made really great progress and we are going to start turning over because of the pressure. The Twin Cities are really a good example. This is where you get a major retailer selling E15 and the competitor has no choice but to sell it as well just so they can compete.

That is the turning point that we are looking for.

What’s the next step of E15? How far can you go?

The next step is looking at the engine of the future, which is very fuel efficient. For the high compression engine, you will need a high-octane fuel and ethanol is the logical solution.

It also happens to be very good for the environment. It’s a win-win. It’s really getting the automakers to fight to have that fuel sold. I think it will be E15, E25 and then E30.

Do you think the current administration is going to help the sector out?

Well, that’s what they keep saying. So, we have a president who campaigned very aggressively in supporting ethanol and RFS. Our job is to hold him to his word. He hasn’t given us any indication that he has strayed from that commitment.

The challenge right now is that the administration is slow in filling many of the critical political positions that we need to work with every day. Generally, you have a cabinet secretary or the head of the EPA and you have career staff. Yet, in the middle you have a group of political staff that have not yet taken these positions.

We need to work with this team that connects the dots on what the administration wants and the career staff. l

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biofuels regional focus Uganda moves closer to landmark biofuels law

All eyes on Africa

by Diana Taremwa Karakire

U

ganda has joined the growing number of African countries moving to put in place legislations requiring the blending of biofuels into fossil fuels – a crucial stage in attaining sustainable development for the country’s nascent energy industry.

President Yoweri Museveni has tasked members of parliament to pass the bill on biofuels by the end of the year. In February, Museveni commissioned a $35 million (€31.6m) bioethanol power plant and distillery at Madhavani Group’s Kakira Sugar Works, in eastern Uganda. The plant has capacity to produce 32 million litres of ethanol fuel using 74,000 tonnes of molasses – a by-product from the sugar production process.

Speaking during the commissioning, Museveni

said the bill would be “expedited” to ensure that it’s in place within six months.

Should the legislation be passed as per the president’s set deadline, companies currently developing Uganda’s vast oil reserves will be compelled to mix their fuel products with at least 10% of the ethanol manufactured at Kakira Sugar.

The measure is expected to extend the life span of Uganda’s oil reserves, currently estimated at 6.5 billion barrels, in addition to lowering the pump price of fuel in the country.

According to Mayur Madhavani, joint managing director of Kakira Sugar, the ethanol distillery, which commenced operations in November last year, is already producing Kakira’s Extra Neutral Alcohol (ENA) for use in the beverages industry and

as a sanitiser in hospitals.

Uganda Breweries, a unit of UK brewer Diageo Group, is already using the ethanol to produce Uganda Waragi, a popular local gin, and a whole range of whiskies and spirits.

Previously, Ugandan brewers would import ENA from South Africa and Mauritius but have since taken on Kakira as their leading supplier. For a country plagued with an ever widening trade deficit, it’s a welcome relief, analysts say.

“If the bill comes into law and the nation adopts use of biofuels we are definitely going to see lots of benefits.

Farmers will have many more crops that they can plant as sources of money and more job opportunities,” says Mayur.

Following the law The bill which was tabled before Parliament by the

energy ministry in December 2016 has been slow to pass.

Under the parliamentary rules of procedure, once the minister has introduced the bill and it is considered read, as was the case in December, the bill is sent to the responsible committee to scrutinise it over a 45-day period before sending a final report back to Parliament for the second reading. At this point, the bill is meant to be presided over by the Minister of Energy. The 45 days have since elapsed without progress on the bill, prompting the president, who would nautically have the final say in the law to intervene.

Although Uganda already has policies in place, such as the Renewable Energy Policy 2007 and Energy Policy 2002 respectively, which provide for the blending of biofuels such as ethanol with fossil fuels like diesel and petrol in

Mayur Madhvani director Kakira Sugar takes President Museveni on a guided tour of part of the newly commissioned 60,000 litres per day ethanol and ENA distillery plant in Kakira

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regulated proportions, the oil companies have not shown strong enthusiasm to prepare for blending of the fuels when products are available.

Thus, the need to provide a legal framework to compel the petroleum and oil marketing firms to not only carry out blending, but also regulate such blending by spelling out the ratios that would be followed.

At 6.5 billion barrels Uganda’s oil reserves are the largest undeveloped reserves in the region and with blending, the lifespan can be extended by a further ten years, from the current estimate of 50 years, says Irene Muloni, Uganda’s energy and minerals minister.

“The oil we have in the ground is finite; we have to devise ways of prolonging its lifespan for the benefit of our people,” she says. “Blending is one of those smart ways.”

According to Frank Tumwebaze, Minister of Information and National Guidance, the biofuels law is also meant to enhance investment in the sector.

Lack of a legal framework impedes investments in the biofuels production sector.

He says: “Project developers in the field of biofuels require a secure market which has to be developed through legislation for them to invest in the sector. Legislation will enable the developers to access long term finance which is required in the biofuels industry, In

addition, legislation will create other incentives like tax rebates which will encourage investors to develop biofuels.”

Other than sugar cane, the avenues are enormous, including possible production from corn and other plants that are grown widely in the East African nation, which also grows more bananas than any other country in Africa.

It is also envisaged that the biofuels law once in place will enhance mass production of

and power generation.

In Uganda, only 10% of the population have access to clean energy and even less than 5% in rural areas, according to statistics from the energy ministry.

This has left many people cutting down trees for either charcoal or wood fuel.

It is estimated that Uganda annually loses about 100,000 hectares of forest cover to charcoal burners and firewood sellers. Figures from the

Figures from Bank of Uganda show that in 2016 Uganda spent $3.7 billion on the importation of fuel biofuels crops such as maize, soya bean and sugarcane, and also lead to value addition through agro-processing and marketing, which would in turn increase rural earnings and open up employment opportunities in rural areas.

Tackling climate change The government of Uganda is also committed to reducing greenhouse gas emissions and contributing to the global fight against climate change. Biofuels production and utilisation provides a cleaner and environmentallyfriendly fuel for industrial purposes, cooking, transport

2014 Uganda Population and Housing Census indicate that 340,000 households in the capital Kampala alone rely on either charcoal or firewood or both. The production and use of biofuels is meant to help reduce this number.

It is further envisaged that biofuels production will reduce Uganda’s dependence on petroleum products and also save Uganda valuable foreign exchange.

The country continues to spend colossal sums on importation of petroleum products. Figures from Bank of Uganda show that in 2016 Uganda spent $3.7 billion on the importation of fuel.

JOIN THE DISCUSSION…

Other than sugarcane, a number of other agro-fuel crops are being encouraged to ramp up production. These include maize, candlenut tree, croton, and jatropha.

But activists warn that the law will enhance massive production of biofuels which could replace food crops and bring about a hunger crisis in the country. Samuel Okulony, programme officer of renewable energy at Africa Institute for Energy Governance, a local NGO, says that curbing fuel shortages is good for Uganda’s development, but biofuels projects should not compete for land with food crops. He warns that this could threaten food security.

“There is need for an all-inclusive dialogue involving all stakeholders and then a well thought-out law is passed to guide the development of the nascent industry,” he says. “Otherwise, emphasising biofuels alone does not create a win-win situation for our farmers.

To be sure, in neighbouring Kenya, growing cultivation of a popular bio-crop, croton is already sending shockwaves in the hungerprone nation. Although the plant has been hailed as a game changer in the biofuel industry, some experts say it’s over cultivation poses grave danger to food production, in a country that hosts more hungry people than any other in East Africa. l

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biofuels oilseed extraction Photo credit: © Zane Mathias

Say ‘aloha’ to sunflowerbased biofuels project Pacific Biodiesel: Hawaii’s largest farm-to-fuel innovator Pacific Biodiesel Technologies (PBT) celebrated the fourmonth anniversary of its first Maui biofuel crop project in June. In February, PBT founders Bob and Kelly King were joined by invited guests, including US Senator Mazie Hirono, US Representative Tulsi Gabbard, state and county lawmakers, local farmers and other community stakeholders, for a traditional Hawaiian blessing of the company’s demonstration sunflower field that is to date Hawaii’s largest biofuel crop project. This newest farming project expands diversified agriculture by growing combine-harvested oilseed crops on land previously used

for sugarcane production.

Showcasing the company’s sustainable, communitybased model of agriculture

Crop Programme (HMBC).

The first phase of HMBC demonstrated the planting, growing and processing

‘We’re designing a sustainable, zero-waste and economically viable system to grow food, animal feed and fuel’ and renewable energy, PBT planted sunflowers as its first Maui biofuel crop, applying the knowledge learned from its past experience and partnership with the US military which funded the Hawaii Military Biofuels

of biodiesel feedstocks on Oahu and Hawaii Island.

“We’re designing a sustainable, zero-waste and economically viable system to grow food, animal feed and fuel,” says PBT president, Bob King. Crops that harvest in 100

days or less can be cultivated, crushed, and converted to biodiesel all in Hawaii.”

He adds that there will be different crops in various rotations, with all farm equipment running on 100% biodiesel.

Speaking about the company’s sustainable farming practices, King says: “We have carefully chosen our non-GMO crops to be mindful of the inputs. We’ are also actively researching and using alternatives to chemical fertiliser and pesticides.

So far, we haven’t used irrigation but have installed it as a back-up for the drier months. We have no plans to use chemical herbicides

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Based on past experience, the sunflower crop yield is expected to total 100-plus gallons of oil per acre per harvest, with a potential of up to three harvests per year. The first bloom of the February 14-acre planting engendered weeks of community attention and huge support island-wide, dominating local social media.

In April, PBT hosted an Earth Day 2017 community event, providing free access for the public to visit the farm to celebrate the inaugural bloom.

The event also commemorated the company’s one-year anniversary of becoming the world’s first biodiesel producer to be certified by the Sustainable Biodiesel Alliance

Bob and Kelly King, founders of Pacific Biodiesel, stand among acres of blooming sunflowers in their company’s biofuel crop located in Maui’s central valley. This initial crop project on 115 acres will expand diversified agriculture by growing combine-harvested oil crops on land previously used for sugar cane production. This is the largest biofuel crop project in the state of Hawaii and the only biofuel farming operation in the state running on 100% renewable fuel, showcasing the company’s sustainable, community-based model of agriculture and renewable energy Photo credit: © Zane Mathias

or pesticides, and we don’t plan to ever use them.”

Kelly King, VP and cofounder of PBT, refers to the sunflowers as “an eye-catching symbol of sustainability, and acres of energy storage and carbon sequestration.” Recently inaugurated as a new member of the Maui County Council, she notes that there are 36,000 acres of former sugarcane lands on Maui that ceased production last year.

She adds: “It’s important for the community and the state to keep this land in agriculture to benefit Maui’s economy and environment, to help increase our energy security, reduce fossil fuel imports and achieve the state’s 100% renewable energy mandate.”

The company is committed to continuing its collaboration with local farmers and landowners. “We are looking forward to collaborating even more with our agriculture community,” Kelly King adds.

“Our growth and success has always been rooted in partnerships and innovation.”

Photo credit: © Zane Mathias

for excellent production and distribution practices.

PBT purchased a combine from a family farm in Northern California that is now used to mechanically harvest the sunflowers and other oilseed crops. “With this equipment, we’ll be able to harvest a variety of food and fuel crops that we’re planning to grow in the future, including safflower, canola and maybe even chickpeas in addition to the sunflowers,” says Bob King. “The food component is important as our governor has declared a state goal of doubling local food production by the year 2020.”

Pacific Biodiesel has already received strong interest in its sunflower oil for cosmetic use and as a food-grade vegetable cooking oil for use by local restaurants. l For more information: This article was written by Kim Sloan, public relations associate at Pacific Biodiesel.

Visit: www.biodiesel.com

About Pacific Biodiesel Founded on Maui in 1995, Pacific Biodiesel is the nation’s longest operating and most experienced biodiesel producer, and established the first retail biodiesel pump in America. Today with nearly 80 employees statewide,

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the company is the only commercial biofuel producer in Hawaii. Throughout its history, Pacific Biodiesel’s mission has remained constant: to promote a clean, sustainable energy future through the community-based production of

renewable fuels. With a nameplate production capacity of 5.5 million gallons annually, Pacific Biodiesel’s Big Island refinery utilizes state-of-the art distillation technology to produce the nation’s highest quality biodiesel.

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biofuels South America focus Colombia’s largest ethanol plant begins commercial production

Transforming Colombia into a biofuels powerhouse

By Simon West

B

ioenergy, a unit of Colombian state-run oil major Ecopetrol, has begun commercial production at El Alcaravan, the Andean nation’s largest ethanol plant, raising the prospect of higher blends of the biofuel in gasoline by year-end.

An official at Bioenergy, who asked not to be named, confirmed that a supply contract had been signed with Colombian fuel distributor Terpel, while similar deals were being discussed with an undisclosed number of other wholesalers.

“The start of commercial production at Bioenergy immediately transforms Colombia into a biofuels powerhouse on the continent,” says Camilo Silva, founding partner of Bogota-based financial-advisory firm Valora Inversiones.

The $750 million (€670m) El Alcaravan, located 43 kilometres from the town of Puerto Lopez in Colombia’s central Meta department, began fuel ethanol production in March, with output topping 800,000 litres by 1 June, Bioenergy said in a filing.

The company had been officially certified as an ethanol producer by Colombian energy regulators on 31 January.

At full capacity, likely “within two years”, the plant will source sugarcane from some 20,000 hectares of nearby

land to produce 504,000 litres per day of ethanol, or 25% of Colombia’s total output. “The target is to hit 400,000 litres per day by the end of the year,” the official told Biofuels International.

Production has been earmarked for Colombia’s

significant impact on the environment if we take into account that blending this product with gasoline helps reduce emissions of carbon monoxide,” Bioenergy said.

As part of the Paris climate accord, Colombia to cut its greenhouse gas emissions

Colombia has since become the third largest biofuels producer in Latin America after Brazil and Argentina strategic central region, and is expected to account for more than 30% of total industrial output in Meta department.

“This proves how important, how significant this plant is for Colombia,” Silva says.

The facility also houses a 35MW bagasse-fired power plant that will provide local markets with 19MW of energy. The remainder has been earmarked for El Alcaravan’s operations. To date, the plant has generated 3,000MW, Bioenergy said.

A deal is in place to supply power to global building materials firm Cemex.

“The opportunity to produce 504,000 litres per day of ethanol will have a

by 20% by 2030, a figure that could rise to 30% with international support, the country’s environment and sustainable development minister, Luis Gilberto Murillo, said in June.

Indeed, the government has stated that tackling climate change and reducing environmental degradation to safeguard vulnerable communities is a key element of Colombia’s ongoing peace process to end over five decades of civil conflict.

An equally pressing issue for some is Colombia’s dwindling hydrocarbon reserves. The country’s Ministry of Mines and Energy revealed in May that proven oil reserves last

year fell by 17% compared with 2015 to 1.66 billion barrels, equivalent to just 5.1 years of crude output.

With global prices for crude oil hovering around the $50 per barrel mark, energy companies have little appetite to invest in exploration and production activities.

For Colombia, a thriving, competitive biofuels industry is paramount.

Biofuels production In 2001, the Colombian government passed Law 693 aimed at promoting non-conventional energy sources and regulating the production and marketing of fuel ethanol. Tax breaks, loans and access to land were offered to local producers.

Colombia has since become the third largest biofuels producer in Latin America after Brazil and Argentina, producing some 456 million litres of ethanol in 2015. According to the US Department of Agriculture (USDA), ethanol output would have reached 465 million litres in 2016, and would rise to 565 million litres this year.

Six plants now produce ethanol in Colombia – sugar giants Riopaila, Castilla Mayaguez, Manuelita, Providencia and Incauca all operate production facilities in western Valle del Cauca department, with Bioenergy’s

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El Alcaravan, the country’s first and only dedicated ethanol plant, located in central Meta.

Colombia also produced some 583 million litres of biodiesel in 2015, with the USDA predicting this figure to rise to 700 million litres this year as two new facilities are expected to come on line in the coming months.

Ecopetrol’s subsidiary Ecodiesel is one of ten biodiesel companies operating in Colombia.

The plant, located at the Barrancabermeja refinery complex, has a capacity to produce 120,000 tonnes/ year of biodiesel from refined palm oil feedstock.

Blending mandates Since Law 693 was ratified sixteen years ago, ethanol blending mandates in

gasoline, which are controlled by the Ministry of Mines and Energy, have been modified several times. As of June this year, mandates stood at 8% (E8) in central Antioquia department and 6% (E6) for the rest of the country.

La Guajira department, next to Venezuela, is exempt from mandates amid ongoing issues with cross-border smuggling.

Despite evidence from the USDA that Colombia has had to rely on imports to meet its mandate targets, in part due to the so-called April-July “interzafra” season when heavy rains disrupt sugarcane cultivation, Bioenergy believes that El Alcaravan’s start-up could allow the ethanol content in gasoline to be raised nationwide to 10% (E10) by the end of the year, a viewpoint

supported by Colombia’s biofuels federation, Fedebiocombustibles.

A senior official at the federation, who asked not to be named, told Biofuels International that this figure could be even higher if the government provided the industry with more stability.

“The ministry establishes the demand and prices of biofuels, but we need these rules to be stable in the long term. Right now we’re hearing a lot about changes in pricing formulas – this creates a high level of uncertainty.”

Officials at Asocana, Colombia’s sugarcane growers association, and at Asopartes, the country’s auto-parts industry association, have confirmed that automobiles in Colombia could run on E10 with no risk of fuel line ruptures, although Asopartes

has warned that higher ethanol content could result in price increases for motorists.

As for biodiesel, Fedebiocombustibles told Biofuels International that blending mandates could rise by “up to 20% by 2020” amid an increase in the cultivation of palm oil, the main feedstock for biodiesel in Colombia.

Existing mandates for biodiesel in diesel fuel stand at 10% (B10) in the northern, eastern and southern regions of the country, 9% (B9) in the central plains region, 2% (B2) in four eastern departments and 0% in La Guajira.

According to Colombia’s palm oil association, Fedepalma, the industry is seeking to boost palm oil production from 1.3 million tonnes per year to 2 million tonnes per year “within four or five” years. l

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Neutral Fuels’ Karl W. Feilder takes us through the commercial realities of biodiesel testing

Testing, testing, 1-2-3

I

once met a guy – nice guy, pony tail, dislike of socks, full beard, you know, a typical biodiesel consultant (we shall call him Bruce), who told me, “You know Karl, pretty much everyone in the biodiesel industry is a bit mad, some of them completely barking”.

I thought about my favourite pastimes: riding my Harley between the sand dunes at every opportunity, rocking my heart out in smoky bars with my band of fellow fathers (OK – so it’s a dad’s band strangely called Sandstörm), cooking in an old iron pot over our backyard firepit, driving with my daughters into the desert to gaze at the stars, and had to agree that I at least accept a broader definition of good times, but “mad” – really?

Luckily I had a fellow Brit in town (Dubai) who had been working with biodiesel for about a decade, in countries like the UK, China and Australia. He confirmed Bruce’s opinion, and then spent the next few hours recounting entertaining tales from around the world ending with up with a central American drug lord who thought biodiesel would be more profitable than cocaine, and would use its low carbon footprint to score him brownie points when he went to meet his maker.

That tale ended with tequila, table dancing and, well, you can imagine the rest.

My only brush with madness and biodiesel, at least the only one I intend to confess here, was deciding at our first Neutral Fuels Dubai Christmas party (yes, we have them in the Middle East) that everyone should show their commitment to the clean, green, biodream

we had created by doing shots… of biodiesel. Down in one. Don’t try it at home.

Being the boss, I was expected to go first. There we stood (for some reason shots always work better when standing) in the amazing black and white glitziness of the Stay restaurant at The One and Only hotel, Palm Jumeirah, Dubai.

it was finished product. Mad? Maybe. Stupid? Definitely.

But that does lead me nicely to a question to which I have never got a satisfactory answer. Why do we remove the methanol? “To raise the flashpoint!” I hear you cry.

Flashpoint. There, I’ve gone and said it. If most countries think that their fossil diesel, or diesel number 2 to its friends,

Everyone should show their commitment to the clean, green, biodream The golden liquid flickered in the candle light. A strange thought ran through my head – “Our biodiesel looks like great whisky” – and down the hatch it went. The team applauded. The waiter looked for a bucket. My production manager looked very nervous.

Recovery moment Later as I wrestled with stomach cramps, he told me he had rushed out of the factory with a bottle of biodiesel when he heard I wanted to show the whole team a sample, never thinking I was actually going to drink it. He couldn’t be sure if the sample was of finished product, or taken from the penultimate quality control stage before final methanol recovery.

As I can still see to write this story, I obviously haven’t lost my eyesight – which is one of the nasty side effects of ingesting methanol. Luckily

can have an acceptable flashpoint of about 55 degrees Celsius (depending on the country standards), why oh why should biodiesel have to have a higher flashpoint?

In my early years, what you might call my BB (before biodiesel) period, I assumed the world would welcome biodiesel with open arms and not put higher burdens on those of us trying to save the planet.

What a naïve fool I was.

Global standards The world, it now seems, has two main biodiesel standards.

And pretty much all of the other standards (India, Japan, Australia, etc) can trace their heritage back to one or the other (or occasionally, I suppose in the interests of world peace, both) of these lengthy rule books.

Of course, to live in any civil society there must be rules. However, there are a lot

of rules governing biodiesel.

It sometimes feels as if all the engine manufacturers and world governments don’t actually want us to produce a cleaner burning, lower carbon footprint fuel, but maybe that’s just a healthy sense of paranoia?

Oh yes, flashpoint. Warning: techie alert! Stay with me here.

“The flashpoint of a volatile substance is the lowest temperature at which the vapours of the material will ignite, given an ignition source. This may be confused with the auto ignition temperature, which is the temperature at which the vapours ignite spontaneously without an ignition source.”

“In a diesel engine, air is compressed and thereby heated until it reaches the auto ignition temperature of the fuel and is then injected as a high-pressure spray, keeping the fuel-air mix within flammable limits. In a diesel-fuelled engine, there is no ignition source (such as the spark plugs in a petrol engine). Consequently, diesel fuel must have a high flashpoint and a low auto ignition temperature.” At least that’s what my chemical engineering manager said.

Still with me? As most biodiesel is actually consumed as a blend with fossil diesel, what’s with the jiggery pokery of different flashpoints? But that’s not my real question.

My real question is tricky: “Why is the standard flashpoint of biodiesel 93°C in the USA, 101°C in Europe, and 120°C in Australia?”

I am sure that those reading this in their potting sheds at the end of a long, stripy lawn, will concoct some argument that it is to

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harmonise the flashpoints and autoignition points with the local standards of the fossil fuel according to the weather, prevalent wind direction, and atmospheric pressure.

Poppy. Cock.

That’s what I think. I think there is no real rhyme or reason, other than it’s a relatively easy thing to test – every standard’s writer tries to put his own little flourish into the standard, hoping no one will notice – a bit like those monks drawing flowery grapevines in the margins of mediaeval sacred texts.

But please tell me I am wrong. My long suffering chemists would love to hear me proved wrong.

And while I am on the subject of testing, why is the most critical value in the EN14214 biodiesel standard (and its children in India, Australia, New Zealand, and even Japan) – the famous 96.5% minimum of Fatty Acid Methyl Ester (FAME) – the most difficult value to get two laboratories to agree upon?

biofuels international

Think I’m joking? A few years ago we took one batch of B100 biodiesel and divided it into three samples.

We sent one each to wellknown, nationally accredited laboratories in three different countries. One of them told us our fuel was 94% FAME and thus failed the standard.

Another said it was 99% FAME and congratulated us on passing the standard.

The third reported 97.5%.

Come on! If the range of likely results is anywhere from 94% to 99% then how can anyone report half a percent?

Did I tell you I’m an engineer? Recovering engineer is perhaps a better description. Either way, imprecision drives me nuts.

And for more than $1,000 USD for each of these tests, I reckoned the least these guys could do was be accurate, or buy better equipment.

So imagine my wife’s surprise the next year when, on our annual family pilgrimage to the beautiful English Lake District, we

suddenly turned off the motorway and headed into the countryside. “Short cut?” she asked, “or have you been hitting the biodiesel shots again?” We crunched to a halt on the gravel outside the most picturesque chemical testing laboratory I have ever seen.

Hanging flower pots, wind chimes … you get the idea.

‘Kid in a candy store’ An hour later, having bribed my children with the promise of McDonald’s Happy Meals, I emerged from the lab with a big smile on my face. I finally understood. I knew why the labs vary so much. I was like a kid in a candy store.

You see, there is an art to testing biodiesel, just as there is an art to making great biodiesel. It’s not all chemistry and science, not all maths and calculations. There is a craft, a feeling, a genuine skill. And it takes lots and lots of practice.

Since that day in the grey rain just off the M6, we have couriered our biodiesel

samples by air to the prettiest testing laboratory in the world.

Not because they are pretty – no – but because we get accurate results. Results that allow us to tweak and modify our fuel to do amazing things.

Performance in sub-zero temperatures? No problem.

Make biofuel from butter?

Easy. Spend years getting the mould which grows on the skin of the soy bean to cooperate and convert fatty acid to methyl ester.

Been there, done that.

Maybe Bruce was right.

Maybe it’s the tricky standards and the trickier testing labs that make all biodiesel producers a bit mad. Maybe it’s too many shots? Who cares – we make a cleaner, greener fuel and our kids are proud of us. What more could anyone ask? l

For more information: This story was written by Karl W. Feilder, chairman and CEO of Neutral Fuels. Visit: www.neutral-fuels.com

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biofuels testing and analysis A look at how standards bodies can assist with the quality control of biofuels

Unifying the biofuels industry

B

iofuel is becoming increasingly popular as a valid alternative fuel similar to conventional or ‘fossil’ diesel.

Biofuel can be produced from straight vegetable oil, animal oil/fats, tallow and waste cooking oil. The largest possible source of suitable oil comes from oil crops such as rapeseed, palm or soybean.

All of these sources can vary significantly in their colours.

ASTM standards for biofuel analysis

However, biofuels are generally considered to be chemically less stable than mineral oils. Quality control is therefore vital. Prior to use as a commercial fuel, the finished biodiesel must be analysed using highlyspecified analytical equipment to ensure the fuel meets any required specifications.

The most important aspects of biodiesel production to ensure trouble-free operation in diesel engines are: • Complete reaction • Removal of glycerin • Removal of catalyst • Removal of alcohol • Absence of free fatty acids Much of the governance dictating the quality and specifications of biofuels is being driven by the ASTM (the American Society for Testing and Materials), a globally recognised leader in the development and delivery of voluntary consensus standards. A full list of the ASTM standards currently being implemented in this

industry can be found on their website at www.astm.org.

Colour measurement for quality control A manufacturer of colour measurement instruments, the Tintometer Group’s primary involvement with ASTM is around implementing the standards it defines such as ASTM D1500, ASTM D6045 and ASTM D7843. The ASTM D1500 colour scale is widely used for the grading of petroleum products such as lubricating oils, heating oils and traditional diesel fuel oils.

Other petroleum products that do not fall within the scope of ASTM D1500, such as undyed gasoline, white spirit, petroleum wax and kerosene, may be graded using the Saybolt test ASTM D156.

ASTM D6045 for colour testing of petroleum products by the automatic tristimulus method covers electronic methods of determining Saybolt Colour. The additional performance criteria quoted in the ASTM specifications such as accuracy; linearity and reproducibility are all met by select automatic colorimeters.

Much of the recent emphasis on biofuels is the result of the petroleum industry being notoriously volatile over recent years: having a see-saw effect on pricing and influencing the cost of living across the world. With every dollar counting, controlling price levels to minimise this seesaw effect is paramount.

Maximising efficiency within the refineries is vital.

Within this industry, the colour of petroleum is an important indication of the status of the refining process from its crude state to its deliverables. Pricing across the world is set, partly, against the colour of the product. An important part of the refining procedure is, therefore, colour measurement. Colour is also an indication of type and quality. In some applications it is used as a means of recognition as is the case with aviation fuel and ships diesel fuel.

Since ASTM is internationally recognised, it is used throughout the petroleum industry from Australia to Zambia, overcoming international and technical barriers. And this is nothing new. The tentative methods (D15523T) for colour standards for petroleum were submitted in

1923 with first colorimetric instruments appearing as early as that year.

Product quality in biofuels There are several factors that can affect the production of quality fuel from: feedstock quality; the production process; post production; analytical capability; and handling and storage.

Though oil straight from the agricultural industry would represent the greatest potential source it is not being produced commercially, simply because the raw oil is too expensive. After the additional cost of transesterification, it is simply too expensive to compete successfully with fossil diesel.

However, the industry is now looking to refocus on non-food feedstocks and

Biofuels are made up of a diverse range of colours

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alternative technologies that would allow the use of all potential feedstocks, including those available now and those available in the future.

We could now be looking at a straighter path forward to continue the replacement of petroleum diesel fuel with renewable, sustainable, domestically produced and biodegradable biodiesel fuel.

The challenge ahead Multi-feed ingredients can also result in multi-coloured biofuel. Whereas most of the differently coloured biodiesel fuels meet the ASTM D6751 specifications, not all differently coloured biodiesel fuels are accepted by blenders. In fact, many blenders already have internal colour specifications for their biofuel purchasing. This non-

acceptance by the blenders of differently coloured biofuels is perfectly in-line with the fact that, per above, petroleum diesel also has different colours depending on how far along it is in the refining process. By introducing similar colour standards to the biofuels industry, international clarification and acceptance could be achieved more rapidly. l

For more information: This article was written by Elizabeth Wilkinson, marketing manager at The Tintometer.

Visit: www.lovibondcolour.com

Much of the governance dictating the quality and specifications of biofuels is being driven by the ASTM

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biofuels testing and analysis

Analytical techniques to evaluate the efficiency of biomass pretreatment processes

Pretreatment process

T

here has been a considerable focus in recent years on the production of advanced biofuels, also known as cellulosic biofuels, and biomass-derived chemicals in biorefining processes.

These technologies use lignocellulosic biomass, which is mostly composed of the biopolymers of cellulose, hemicellulose and lignin.

Lignocellulosic biomass is highly abundant and is typically of a significantly lower cost than the biomass (such as wheat, sugar beet and rapeseed) used to produce conventional biofuels.

The key to exploiting the chemical value of lignocellulosics is to depolymerise the lignocellulosic matrix in order to obtain smaller molecules that can be utilised, or further converted to platform chemicals and biofuels. There

are two major pathways by which biorefineries undertake this conversion: through hydrolysis processes that aim to liberate sugars from the lignocellulosic polysaccharides (i.e. cellulose and hemicellulose), and through thermal processes (such as pyrolysis and gasification) that degrade more extensively the components of both polysaccharides and lignin.

Why pretreatment is necessary In the hydrolysis process cellulose and hemicellulose are hydrolysed (broken apart) in pure water through attack by the hydrogen atoms of the water molecule on these polysaccharides. This is a very slow reaction, particularly for cellulose due to its recalcitrance to hydrolysis, but it can be sped up using elevated temperatures and

pressures, and catalysed by acids (concentrated or dilute) and highly selective enzymes such as cellulases. However, the rates of hydrolysis of cellulose when processing virgin biomass are still very low due to the recalcitrance of the lignocellulosic matrix.

In particular, the complex inter-associations between hemicellulose and cellulose, the crystalline nature of much cellulose, and the existence of a physical barrier of lignin surrounding the cellulose fibres are said to be major hindrances.

Biomass is more than just cellulose, however, and the process is complicated by the relative ease with which hemicellulose can be hydrolysed, meaning that a severe means of hydrolysis targeted for the liberation of glucose from cellulose may result in the sugars liberated from hemicellulose

being degraded.

For these, and other reasons most hydrolysis technologies involve a pretreatment step prior to the hydrolysis of the cellulose. This typically targets the removal of hemicellulose and/or lignin, leaving a solid predominately cellulosic residue that is more amenable to conversion. The hemicellulose is typically present in the liquid output from the pretreatment and can be valorised in separate processes.

Type of pretreatments There are a large number of different pretreatment technologies that can be employed in biorefineries prior to the primary hydrolysis stage. One of the more common types is steam explosion which involves partially comminuted biomass being subjected to high

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pressure steam (at 210–290°C) for several minutes before this steam is rapidly vented, resulting in an explosive decompression and flash cooling of the biomass.

Liquid hot water is another pretreatment process and involves superheated water (180–230°C) that is kept in the liquid state through high pressures and put in contact with the biomass via various pathways (including cocurrent, counter-current, and flow-through processes). The process will hydrolyse most of the hemicellulose and up to two thirds of the lignin and one quarter of the cellulose, depending on conditions. The use of dilute-acids is a more well-established pretreatment, whilst other pretreatments involve the use of alkalis and other solvents (e.g. ethanol, acetone etc.). There has also been much research recently on the use of ionic liquids as green solvents for biomass.

Important considerations when designing a pretreatment Particularly when elevated temperatures and/or chemicals are employed in pretreatment it can be possible for the production of the monosaccharide (e.g. from the hydrolysis of hemicellulose) to not be the end-point of the process.

Some sugars may be further degraded to a variety of potential products. This is important since these products can often be inhibitory to fermentation or can otherwise complicate subsequent downstream processing methods.

However, a number of these sugar degradation products (such as levulinic acid, furfural, and hydroxymethylfurfural) can be valuable chemicals in their own right and some technologies target their production.

However, in other cases the pretreatments may only partially hydrolyse some of

biofuels international

the polysaccharides. This partial hydrolysis can result in a significant proportion of the hemicellulosic and/or cellulosic sugars being tied up in soluble oligosaccharides that are contained within the process liquor. It is important to know whether the soluble sugars are present in monosaccharide or oligomer forms as these will affect downstream processing and the effective valorisation of the liquid component.

Therefore, the compositions of the liquid and solid outputs of biomass pretreatment processes can form a wide spectrum of potential products that can exist in greatly varying concentrations which will depend on: the feedstock, the type of pretreatment, and the wide array of potential pretreatment conditions (e.g. solid loading, temperature, pressure, solvent etc.)

Recommended analytical methods to evaluate pretreatments There are three key items that should be analysed to determine the efficiency of a pretreatment process.

(1) The starting feedstock We recommend that a detailed lignocellulosic analysis of the starting feedstock is carried out, including removal of the extractives and determination of their composition. Removal of the extractives is important since we have found that, if not removed, they can lead to elevated values for the lignin content. Furthermore, some biomass can contain significant amounts of watersoluble carbohydrates and extractives removal and characterisation will help to provide clarity on the source of the sugars found when the biomass sample is hydrolysed to determine its lignocellulosic composition. These watersoluble carbohydrates are also likely to be present in the liquid output of many

pretreatment processes and, if their concentrations are not known, it may be incorrectly inferred that such sugars present in the liquid must come from lignocellulose.

Similarly, if you expect that there will be some starch in your sample then we also recommend that starch analysis of your starting feedstock be undertaken as this constituent may also be removed and hydrolysed in many pretreatment processes.

When determining the lignocellulosic composition of the sample it is important that each of the constituent sugars within the polysaccharides (e.g. glucose, xylose, arabinose, mannose, etc.) are measured separately so that their fate during the pretreatment process can be monitored.

Additionally, it may be useful to also determine the uronic acid composition of the sample.

(2) The liquid product from pretreatment We have found that much of the soluble carbohydrates in the liquid outputs of many pretreatment processes exist not as free sugars but as oligosaccharides that can contain as much as ten sugar units. For this reason, we would recommend that the liquid output is analysed for oligomeric sugars as well as for monosaccharides. We determine the oligomeric component by firstly analysing the original liquid for the free monosaccharides and disaccharides (e.g. cellobiose) in solution and then subjecting the liquid to a mild form of acid hydrolysis that will break apart any oligosaccharides into their constituent monosaccharide units. We then analyse the hydrolysate and the proportion of each sugar that is present in the original liquid in the oligomeric form can then be calculated by

subtracting the pre-hydrolysis concentration from the posthydrolysis concentration.

We would also advise that the liquid be analysed for the main organic acid and furanic sugar-degradation products.

(3) The solid residue from pretreatment As it is likely that most of the extractives will have been removed in the pretreatment, it may not be necessary to remove or characterise these.

Instead, we recommend that direct analytical hydrolysis of the sample is undertaken to see the remaining amounts and proportions of the different lignocellulosic sugars and lignin. This, coupled with the data from the previous analyses, will help to give a clear and detailed picture on the fate of cellulose, hemicellulose, and lignin during the pretreatment process. We would recommend that the ash content is also determined to see how much ash is solubilised by the pretreatment.

Further information Celignis Biomass Analysis Laboratory has a lot of experience in analysing many products (both liquid and solid) from biomass pretreatment processes.

These samples have covered a wide variety of starting feedstocks and pretreatment processes and conditions.

The laboratory is able to undertake all of the analytical techniques described above and can provide data that can provide a guide in engineering the most appropriate pretreatment conditions for feedstocks and processes. l

For more information: This story was written by Daniel Hayes, PhD, CEO of Celignis Biomass Analysis Laboratory.

Visit: http://www.celignis.com

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biofuels aviation Production of carinata, a rapeseed/mustard cross with strong aviation fuel credentials, is set to be trialled in Europe

Biojet crop set for European trials

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By Colin Ley

he production of carinata is being trialled as part of a global expansion programme being run by Agrisoma Biosciences, a Quebec-based company which is pioneering the crop’s development Already grown successfully in selected regions of the US and Canada, often on marginal land and under demanding weather conditions, carinata is to be tested under European conditions next, most probably in France.

“It’s a non-food, certified sustainable crop that delivers oil for biofuels and protein for animal nutrition,” says Steven Fabijanski, Agrisoma Biosciences’ president and CEO. “As a rapeseed/mustard cross it displays the attributes of mustard in its ability to withstand heat, drought and disease while also carrying key rapeseed positives in terms of oil and protein content.”

The company’s confidence in the crop is such that it recently completed a £12 million (€13.6million) fund-raising programme, specifically geared to finance the global expansion of carinata production.

“Not only is it a second cash crop for farmers whose land wouldn’t normally be able to support a second crop, it also has substantial environmental benefits as a biojet fuel, contributing positively to the air we all breathe,” says Fabijanski.

The company believes carinata oil, which was used

to fuel Canada’s first biojet flight, has the oil-based qualities to become a major player in supplying the biojet market, which is currently running an estimated 30 billion gallons (136 billion litres) below its target.

In addition to Europe, the crop’s planned global expansion is designed to extend production into Australia, New Zealand and South America, subject to successful test results being obtained in each new region.

While suitable for growing in areas or at times of the year where water and high temperature issues make food crop production impossible, carinata is claimed to perform well on marginal land in cool and wet climates with a

Carinata is an oilseed crop

zones where it becomes too dry or too hot for crops such as Canola or rapeseed.”

In this context, most production to date has centred on the southern

It’s a non-food, certified sustainable crop that delivers oil for biofuels and protein for animal nutrition relatively mild winter, such as Scotland and New Zealand.

The expansion plan will address such potential.

Growing in different climates “We operate two production schemes,” says Fabijanski.

“For the first, we focus on growing the crop on the edge of current arable production

parts of Saskatchewan and Alberta in Canada, plus Montana, North Dakota and South Dakota in the US. “It fits nicely into these regions,” he explains.

“Typically, for production scheme one, we work in areas which have a single growing season each year and a freezing winter and those where it’s too dry in the summer for the available land

to be sufficiently productive to justify growing soya or corn.

“In addition to such locations, currently in Canada and the US, we’re now doing some work in parts of Australia where moisture levels are also too demanding for rapeseed.”

The company’s so-called ‘other production scheme’ is designed to address how the crop performs on marginal land in areas which are not usually either too dry or too hot, such as Scotland or New Zealand.

“We’re already growing it with good results in the south east region of the US and certain parts of South America where the winters tend to be milder but where it’s also generally cool and wet during the winter months,” says Fabijanski.

“Carinata is now in its third year of production in locations across Florida, Georgia, Alabama and Mississippi, for example. The crop has done well in these areas as a cover crop over the winter, provided it is well established

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Carinata is now in its third year of production in locations across Florida, Georgia, Alabama and Mississippi

before it gets really cold. It then survives well during the cool period before delivering a strong growth response as soon as spring arrives.

“Production time, from planting through to harvest, takes 100 to 125 days, depending on the local climate.”

Matching carinata’s production traits to different global conditions is also part of the company’s £12m investment plan, with research nurseries already established in southern Saskatchewan, southern Florida and Chile.

“We have collected a wide diversity of carinata seeds,

enabling our breeding unit in Saskatchewan to evaluate 10,000 to 15,000 varieties a year,” says Fabijanski.

“The next step is to establish a nursery unit in France to explore the crop’s European potential. We aim to do that later this year.”

Agrisoma Biosciences works with farmers on a closed loop arrangement, not on the open market.

“This works well for the biofuels industry where everybody needs to have traceability throughout production to be able to show GHG (greenhouse gas) benefits and quality for available carbon credits,” says Fabijanski.

“We are obviously pretty excited about the crop. It has taken a long time for it to reach this stage, however, so it’s encouraging to now be ready to begin carinata’s global expansion.” l

Non-GM appeal Carinata is non-GM, a fact which increases its potential appeal to farmers in Europe, both as a nonGM crop which they can grow under EU legislation and as a new ingredient for use in the production of non-GM animal feed.

Biojet market growth Global biojet production is forecast to reach 60 billion gallons over the next five years, potentially replacing 6% of the fossilbased fuel used in air travel. In this context, the big claim for Carinata oil is that it behaves the same as petroleum, doesn’t require changes to be made to either fuel handling systems or jet engines but is a much cleaner fuel to burn.

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biofuels biochemicals In Italy, a plant is producing biobutanediol from renewable sources, and reducing greenhouse gas emissions

Renewable

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iomass for energy production ranges from various types of agricultural wastes to industrial residues; that is, paper production or a brewery’s waste and wastewater. Unique to this variety of biomass is waste resulting from the production of biobutanediol (1,4 BDO); a bio-based intermediate produced by the Italian company Mater Biotech (Novamont Group).

Mater Biotech is the first dedicated industrial plant in the world to produce 1-4 butanediol from renewable sources. Butanediol is usually derived from butane, a chemical intermediate obtained from fossil sources, and used as a solvent as well as to produce plastics, polyurethanes and elastic fibres. Mater-Biotech instead produces it through a fermentation process.

During the revamping of Mater Biotech, a plant located in the northeastern region of Italy, Novamont adapted and reutilised an existing plant for the wastewater treatment component of the factory. Production wastes are also considered a source of energy, and thus, based on their green economy standards and practices, Mater Biotech chose to take advantage of the waste by building an anaerobic digester to produce biogas.

Biogas is a mixture of methane and carbon dioxide obtained through the breakdown of organic matter by microorganisms in an anaerobic digester. If burned, biogas produces both heat and electricity.

Being a non-fossil renewable

Gasometric dome of the plant

energy source, the European Union identifies biogas as a sustainable way to reduce greenhouse gas (GHG) emissions and meet the Europe 2020 strategy.

The so-called “20-20-20 targets� aim to reduce GHG emissions by at least 20%

and move towards a 20% increase in energy efficiency.

To design and build the process chain, Novamont chose RWL Water Italia (the Italian branch of RWL Water). RWL Water Italia had experience in the biomass industry, having

Mater Biotech is the first dedicated industrial plant in the world to produce 1-4 Butanediol from renewable sources compared with the levels in the 1990s; increase the share of renewable energy in final energy consumption to 20%;

built a waste-to-energy plant for a pharmaceutical company in the past, but the innovative process of

Novamont products posed a new challenge because of its waste streams.

Circular economy RWL Water Italia supported Novamont and Mater Biotech to revamp the existing plant by initially building a primary water pre-treatment plant, then a wastewater treatment plant and lastly, an AD plant to produce biogas.

This structure fits into the Novamont bioeconomy model based on the promotion of a circular economy as well as on the regeneration of local areas (e.g. the Mater Biotech site in Adria, Italy).

The first step consisted of providing the factory with primary water for its internal processes. The most

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Nitrification-denitrification system

convenient way was to revamp the old existing potabilisation system. In addition to the revamping of the old system, RWL also added three sand filters. The primary water plant process was successfully tested for two months using an RWL Water pilot plant with the same configuration.

To comply with water discharge law requirements, the factory also needed treated wastewater. The designed and revamped wastewater treatment plant consisted of a double stage nitrification-denitrification system with final separation of the sludge through tubular membranes (MBR).

With this last adaptation, the wastewater is therefore treated and completely discharged within the surface discharge limits.

Finally, the retentates with high chemical oxygen demand (COD) posed a challenge to Mater Biotech, who decided to build a biodigestion plant to convert waste into energy. The vast experience with high chemical-oxygen-

biofuels international

demand wastewater from slaughterhouses allowed RWL Water to design an appropriate system to produce biogas. The system entails an anaerobic digester in mesophilic regime. The

result is the production of renewable energy in the form of biogas, burned in a boiler for heat production.

The production cycle exhibits a circular pathway: butanediol is produced

starting from biomasses; the by-products resulting from manufacturing are not treated as wastes, but instead enhanced through the production of renewable energy, biogas; the same biogas is a resource for the company because it is burned into a boiler and the heat is returned to the factory.

In today’s world, businesses in all industries are focused on sustainability, even as they seek ways to operate efficiently, adhere to regulations, and make a profit. The technologies chosen for this project reflect the customer’s reputation for innovation, while also addressing its desire to save money and become more sustainable.

This project is key example of a production cycle with a reduced carbon footprint and an increased output, both for the company and the environment. l For more information: This article was written by Fabio Poletto, VP sales & marketing Italy Operations and Laura Silvello, marketing coordinator, Italy Operations. RWL Water will soon become Fluence, following a merger.

Visit: www.rwlwater.com

View of the plant from the digester

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biofuels jatropha

Jatropha through the generations Blending jatropha plant science and bio product technologies for a sustainable green business

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atropha is here to stay, conquering all of the odds stacked against it. This is a welcome reality.

Crop and agronomic research on jatropha has progressed in a structured way, thanks to the efforts of companies like JOil. The efforts and capital invested in these endeavours have started yielding the desired

Generation 2 hybrid jatropha

outcomes. JOil’s pilot jatropha plantation project in Ghana, spread over 500 acres, seeks to capture the entire value chain propositions of jatropha, thus proving the commercial viability and sustainability of the business, even in the current situation where oil prices have loosened up.

It all started with Generation 0 jatropha varieties, which were the wild grown jatropha

types, the seeds of which were used for establishing the large-scale plantations that appeared subsequent to the hype about jatropha in the early 2000s. If there was one major reason for the catastrophic failure of these projects, it can certainly be attributed to the use of unproven wild types of jatropha for establishing commercial-scale projects.

This, combined with the lack of well-researched agronomy practices and understanding of farming systems, led jatropha, through no fault of the crop itself, to become a victim of misleading promotions and unjustified projections.

Understanding the basic realities and foreseeing the need for proven high yielding varieties, JOil commenced

Generation 3 short duration jatropha

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its scientific and structured jatropha breeding program in 2008, which resulted in the evolution of Generation 1 varieties of jatropha, JO S1 and JO S2. These elite varieties were evolved from a mix of promising accessions collected from across the globe, representing a wide range of agro climatic conditions. The yield potential of these varieties is in the range of 4 – 5 tonnes per ha. To further increase the yields, JOil strengthened its breeding programme.

The next generation Sustained efforts in research and breeding saw the evolution of high yielding hybrids representing Generation 2 in the jatropha business. The hybrids were characterised by their abundant and early flowering pattern, and higher levels of oil productivity, more than 20 – 30%, compared to the Generation 1 jatropha varieties.

Moving into Generation 3 jatropha varieties was interesting because of the evolution of varieties suitable for high density planting. The plants are small statured, amenable for growing as a short duration crop and can be adapted to be grown as a rain fed crop in a wide range of agro climatic geographies.

JOil’s Generation 4 varieties are the outcome of its highend genetic engineering and research programme.

JOil, in association with TLL, has developed a genetically modified (GM) jatropha with 75% Oleic acid, compared with the 45% Oleic acid content in other genotypes. The higher Oleic acid content gives a better balance between the cold flow property and oxidation stability in the fuel derived.

JOil’s GM jatropha with high oleic acid content in the oil has been approved for field trials, the first such approval in the world. Genetic research

biofuels international

is also being conducted on specific traits of jatropha curcas including virus resistance, higher seed oil content, drought tolerance, and a reduced presence of curcin and phorbol esters.

Complementing the crop

of biokerosene, bio-lubricants and natural waxes where the value realisation is higher.

Detoxified kernel seed cake has the potential to be used as a protein source catering to the animal feed industry and in the manufacture of

Jatropha is here to stay, conquering all of the odds stacked against it research was JOil’s foray into value addition technologies of jatropha by-products through its own efforts and strategic tie-ups. Producing biodiesel from oil seems to be the basic value proposition when compared to the production

bioglue, which is in demand in the plywood industry.

The fruit shells are ideal for producing briquettes with high calorific value and can also be used in the manufacture of activated carbon. The biowaste generated from the

plantation and processing has the potential to be converted into biogas. The process technologies have been evolved and optimised for commercial scale applications.

Developing plantations with high yielding varieties and choosing the appropriate product mix according to the existing demands promises to make jatropha a highly attractive business proposition and a sustainable green industry. l

For more information: This article was written by Sriram Srinivasan, chief operating officer, JOil Singapore Visit: www.joil.com.sg/Index

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biofuels jatropha Spotlight on jatropha

Green gold in a shrub

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unique international partnership has led to the 2017 breakthrough in valorising second generation drought resilient oleaginous crop: Jatropha Curcas Linnaeus. Jatropha, labelled as “The plant with a bad name”1 in 2011 as well as being referred to as “Green gold in a shrub”2 by 2015, has gone through a lot of ups and downs. Downs that have been overcome by Agroils Technologies, a young agritech company located in Florence, Italy, in collaboration with its Singapore-based strategic partner, JOil. Their combined strength is ensuring on the one hand, high value market applications derived from jatropha seeds, and on the other hand, reliable yields of jatropha seeds on a per hectare basis.

High value biointermediates for industrial applications In 2011, Agroils Technologies was founded by Giovanni Venturini Del Greco (CEO), a pioneer in the field of jatropha, and Roberto Crea (CSO), senior scientist in the field of bio-technology. Agroils’ existence is dedicated to, what then was and still is to date, exploring higher value valorisation routes of jatropha seeds benefitting the incentive to cultivate jatropha on an industrial scale.

“We believe that it is crucial to look beyond the topic regarding biofuels and thus not limit ourselves to solely valorising the jatropha lipid fraction. Only by valorising the jatropha seed as a whole we can unleash the full potential of jatropha on an international and industrial level,” says

Agroils’ jatropha protein based wood adhesive used to produce no-added formaldehyde plywood panels at Italian leading plywood producer Panguaneta SpA

Agroils CEO Giovanni Venturini.

Agroils Technologies refines jatropha seeds by means of its proprietary Agroils Bio-Refining (ABR) Platform, a technology that does not make use of any organic solvents nor flammable or dangerous substances.

“We are in the position to introduce a technology to the oilseed refining sector that is in desperate need for safer and healthier industrial processes,” says Agroils CSO Roberto Crea.

Through mechanical pretreatments, a proprietary mixing formulation, and firstclass separation technologies, Agroils has demonstrated to yield distinctive and relevant bio-intermediates for each jatropha seed constituent fraction. These constituent fractions, i.e. lipids, protein, lignin, and water soluble bioactives, are then valorised towards industrial applications such as biofuels and/or lubricants, resins, and organic fertilisers and bio-pesticides respectively. With the support of leading Italian Venture Capitals and a grant by the Tuscany Region, a demo plant has been set up in Sesto Fiorentino, Florence. The demo plant is currently undergoing its commercialisation phase

due to market uptake of Agroils bio-intermediates.

The bio-intermediate lipids, i.e.jatropha oil, is well positioned towards fuels such as biodiesel and bio-jet fuel, as well as towards biochemicals and bio-plastics thanks to its inherent physicochemical properties. These valorisation routes envision the penetration of jatropha oil into multi-billion markets which are ready and willing to be supplied with a sustainable feedstock. However, the lack of a large and high value market for jatropha inedible oil co-product has hindered the creation of commercially attractive supply chains.

Agroils’ latest breakthrough is about commercialising a protein enriched fraction of jatropha seeds towards formaldehyde-free resins.

Resins highly requested by the wood panels industry that is being affected by more stringent regulations concerning the emission of formaldehyde .

In 2004, formaldehyde was classified as “Carcinogen to humans” by World Health Organization. At EU level on the 1st January 2016, formaldehyde has been re-classified from “probable

carcinogenic to humans” to “carcinogenic category 1B and mutagen category 2” (see Reg. EC 1272/2008). Thus, new regulations (US CARB, 2007 & 2017; EU E1, 2016) entered in force to limit formaldehyde emissions in wood panels.

Turning jatropha, a nonedible crop, into an edible one has been the key focus point for more than a decade. By focusing on non-obvious valorisation routes, such as bio-resins, we have justified our jatropha processing business model,” Venturini says.

Substitution By means of Agroils’ proprietary processing protocols, non-obvious valorisation routes towards large and high value markets have been opened for oil coproducts, paving the way for a new and more technologicallysound start for jatropha. The use of jatropha protein to substitute the 30 million tonnes of carcinogenic formaldehyde based resins that are used every year by the wood panels sector represents a €15 billion market value. Furthermore, it also represents an opportunity to substitute a petro-derived chemical compound with a high performing bio-based product, further improving the jatropha carbon footprint.

Through Agroils’ business model justification another major issue is concurrently being addressed, namely, the newly revised European Renewable Energy Directive (RED). As highlighted in the Biofuels International article “Biofuels Industry slams European Commission’s revised Renewable Energy Directive” (1 Dec,2016) the European Commission has

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decided to cap first-generation biofuels and to stimulate the usage of second-generation biofuels. Although this might seem to be an incentive to cultivate second-generation oleaginous crops, viable derived biofuel business cases stay put without high value co-product valorisation routes. That said, it seems that Agroils Technologies might have a game changer within their hands, unleashing a higher value proposition for jatropha as a secondgeneration biofuel crop.

‘Stop working in silos’ Regarding the substitution of conventional fuels with that of bio-based alternatives, the biofuel sector has made recognisable progress.

However, with changing regulations dictating what BIO_V2.pdf

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generation of biofuels to use it is also questionable whether or not second-generation biofuels will be accepted and implemented on an industrial level. Therefore, the concerns of the biofuel sector, of being entangled in a permanent policy flux hindering the potential of biofuels and required investments, are legitimised.

Venturini says: “To free ourselves from being dictated what crop we can or cannot use for biofuels purposes we need to start exploiting the progress the biofuel sector has made regarding multi-feedstock processing technologies. We have diversified the feedstock we use and increased the flexibility of our production technology to obtain different high value products. Now it is time to translate this progress towards

the lands we benefit from.

“By combining the business cases of multiple biomass and multiple bio-products in one value proposition, we ought to overcome the constraints put upon us such as that of ILUC. Through unleashing the potential value of jatropha we have already taken an important step in the right direction to sustain the development of our society.”

use of curcin as analgesic compound as well as of phorbol esters as potential anti-cancer and anti-HIV agents show promising results. Through the collaboration with leading research centres, Agroils is well equipped to address such challenges. l

Future goals Agroils plans to address additional opportunities to increase the extractable value from jatropha and other inedible crops. In particular, the valorisation of different bioactive compounds for pharma applications fits well in the company’s plan for the future. Preliminary investigations related to the

For more information: This article was written by Giovanni Venturini Del Greco, CEO at Agroils Technologies and Arjen Van Veen, bio-based materials coordinator at Argroils Technologies.

Visit: www.agroils.com/jatropha References 1 Hardman & Co, Plant With A Bad NameI, (22nd of March - 2011) 2 N. Kumar, Curcin proteins of biodiesel crop (Jatropha curcas L.), (July - 2015)Products, (June – 2013)

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biofuels jatropha A company in Mexico has achieved remarkable results from jatropha crops, showing the enormous benefits of R&D

Opportunities in Mexico

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atropha curcas L. (JCL) was hailed as a “miracle crop” about ten years ago, but it wasn’t. It was sold as a biodiesel feedstock before enough scientific knowledge had been gathered about it. As a result, locally and globally, jatropha projects failed, mostly due to poor yields.

Jatronergy, a jatropha breeding and services company (Lodemo Corporation) located in Yucatán, México, was an exception. After planting 1500 ha of jatropha in Yucatán, it achieved 25 kg/ ha as maximum yield back in 2012. Other companies in the Peninsula of Yucatan achieved similar results, and together planted a total of about 5,000 ha in the region.

Jatronergy appreciated that it had to stop thinking about commercial aspects, to avoid “selling the meat before the hunt”, as the saying goes.

Instead, they started a serious and aggressive research and development (R&D) programme mainly concentrating on breeding to increase grain and oil. Jatronergy has focused on hybridisation by using homozygous and genetically distant inbreds, increasing yields from 25 kg/ha in 2012 up to 4,000 kg/ha of dry seed in multilocation evaluations in 2016.

Endogamy depression is not a limitation of the jatropha species from which Jatronergy has developed its products, and the company is currently patenting a double haploid (DH) technique to mass produce inbreds for hybrid production. Jatronergy is a leading company in Mexico for developing high yielding

hybrids, and this achievement is partly due to a rich genetic pool diversity in the company’s germplasm bank (including non-toxic varieties), a result of JLC’s centre of origin being in

contributing to reductions in GHG. There is still some room for improvement related to regulations, quality certification and false crop expectations, among others, so the global

After planting 1500 ha of jatropha in Yucatán, Jatronergy achieved 25 kg/ha as maximum yield Mexico and Central America, from where it has dispersed around the world. Other research areas are focused on how jatropha biodiesel reduces greenhouse gases (GHG) and how it can increase engine efficiency (km/L) in farm tractors and full trailers, which are important justifications for the continuation of investment into research and development (R&D) on JLC. Low oil prices Although the biofuel industry has been slammed by low oil prices, Jatronergy is committed to delivering high quality products (hybrids and agronomic technology) to their customers and investors, and

vision of business related to JCL should look to create and deliver tested products to potential customers. This would help solve JCL’s bad reputation as a crop and avoid a rethink over whether biodiesel should be a secondary product.

JCL is still considered a viable biofuel feedstock because it doesn’t compete with food crops like soybean, canola, sunflower, etc. this is especially true in countries like Mexico where about 80% of the oil is imported for human consumption and there is no room for food crops to be used for biofuel.

Jatronergy, a Lodemo company, receives integrated corporate support, and this allows it to do research into

the complete value chain, from agronomy, oil extraction, biodiesel conversion and biodiesel commercialisation up to test engine efficiency and GHG emission reductions.

Engine efficiency (km/L) is 20% better when using JCL biodiesel instead of fossil diesel in farm tractors. In full trailers, engine efficiency is improved by 2.5% while GHG emissions are reduced by about 26%. These results may change depending on quality of the oil, biodiesel conversion process, type, model of engine, etc.

After four years of R&D, Jatronergy is confident and looking for markets for its portfolio of products, such as high yielding hybrids and agronomic practices.

Although the company’s products have been developed and tested locally in the Peninsula of Yucatan, if they are to be used outside of that area, they must be tested first before commercially used, to avoid failure.

In Mexico, one potential market is jet fuel. Cancun Airport is the second largest airport in the country after Mexico City’s. The airport has seen 20 million passengers pass through it in the last two years and has about 400 domestic and international flights per day. Becoming the airport’s biojet fuel supplier is a potential opportunity. l For more information: This article was written by Carlos Góngora-Canul, manager of Traditional and Molecular Genetic Research and Development at Jatronergy, Erick Alberto Aguilera-Cauich, head of Molecular Genetic Improvement at Jatronergy, and Gregorio Martinez-Sebastian, head of Agricultural Technology at Jatronergy.

Visit: www.jatronergy.com

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