News on Alternative Energy Crops, Biofuel & Forestry

10th December 2009

Saudi Arabia, which controls a quarter of the world’s oil reserves, is looking into renewable energy, according to chairman of the UK Atomic Energy Authority Lady Barbara Judge.

Lady Judge, returning from a visit to Saudi Arabia where she chaired a working group on energy with the Saudi Arabian General Investment Authority organised by UK Trade & Investment body said, ‘Notwithstanding that the Kingdom of Saudi Arabia has the lowest cost for fossil fuels in the world, it is seriously looking into alternative energy.’

Lady Judge was among a large business delegation that accompanied Lord Davies, Minister for Trade, Investment and Small Business to the King Abdullah Economic City near Jeddah. Among the areas that Saudi Arabia is exploring are solar and wind power. Jeddah, a city on the Red Sea, is one of a number of new cities that are being built to house and provide work for the rapidly-growing population in Saudi Arabia, planned to be the size of Hong Kong. The authorities are seeking to make all the new cities sustainable, energy efficient and environmentally friendly, according to government organisation UK Trade & Investment.

‘The new economic cities are a real opportunity for British business,’ Lady Judge said. ‘Rarely does a company have the chance to write on a clean slate. In this case, the Saudis are building these cities from scratch.’ She added that the UK should have a big role to play due to skills in consulting engineering, infrastructure and energy-related projects, as well as the services and legal system. Among the firms in the delegation was RPS Energy. And illustrating the legal opportunities in Saudi Arabia was Cameron McKenna. After an introduction effected by UKTI, this firm went on to write Saudi Arabia’s electricity law.

8th December 2009

Latin America offers an attractive environment for investing in clean energy and carbon according to cleantech focused private equity firm Plane Tree Capital.

The firm predicts that US climate legislation will lead to a large and growing export market for Latin American clean energy and offsets, readier access to financing, and broader exit options.

According to Plane Tree, Mexico will probably be the first to benefit from the creation of a US or North American cap and trade scheme. Other trade partners such as Chile and Peru, or countries with significant deforestation and degradation (REDD) potential such as
Brazil, Central American and Andean countries are also well positioned to profit from the significant potential offset demand from the US.

Brazil, Mexico, Argentina, Chile and Peru have all set clean energy targets supported by a mix of dedicated renewable energy tenders, feed in tariffs, and binding targets for power producers.

The creation of a US cap and trade scheme could double the size of existing carbon markets from an estimated turnover of $122bn in 2009, predicts Plane Tree. A US cap and trade scheme is likely to restrict the provenance of international offsets to countries that are more closely aligned with America’s political stance on climate policy. The group predicts that the US is likely to favour offset partners with which it already has free trade agreements such as Mexico, Chile, Peru and Costa Rica. The major economies of Latin America are well positioned in this respect, having indicated their willingness to take on emissions targets in stark contrast to China and India.

According to Ellis Juan, Mexico representative at the Inter American Development Bank, ‘A well designed US emissions trading scheme will drive demand for international offsets far above the market’s capacity to generate credits from emerging countries.’

Francisco Fernandez-Asin, executive director at Endesa Carbono, expects the US to favour bilateral engagement in securing international offsets first from NAFTA countries and then from other Latin American countries, followed by Africa and South East Asia.

Latin America’s untapped emission reduction potential may present an opportunity for US companies to procure comparatively low cost offsets on their doorstep, according to the group. Mexico on the other hand has strong potential for clean energy projects given its high grid emission factor. Brazil, which has for several years supplied high quality offsets to international carbon markets also offers the highest potential for reducing emissions from deforestation and degradation (REDD) projects. The firm says that Latin America may become a prime source of REDD credits, eligible under both the American Clean Energy and Security Act and the Kerry-Boxer bill, under which American emitters will be able to use between 0.5 and 1.25 billion of offsets per year.

The US and Mexico announced a Bilateral Framework on Clean Energy and Climate Change in April 2009.

15th December 2009

A group of European biomass, biogas and forestry trade associations have come out in support of non-binding criteria on sustainability for solid and gaseous biomass for heat and electricity.

The Consortium of European Biomass Associations, which features the European Biomass Association (AEBIOM) and the European Biomass Industry Association (EUBIA); European forestry associations, European State Forest Association (EUSTAFOR), Confederation of European Forest Owners (CEPF) and Bureau of Nordic Family Forestry (NSF); and the European Biogas Association (EBA),  have said that the current non-binding measures on the table at the European Commission w would provide adequate guarantees for the sustainability of biomass.

According to the directive for the promotion of energy from renewable sources (RES Directive), the European Commission has until December 2009 to publish a report evaluating the sustainability criteria of solid biomass.

Jean-Marc Jossart, secretary general of AEBIOM, said, ‘It seems that the European Commission intends to provide an accurate analysis of the biomass use for heating, cooling and electricity and propose sensible measures such as the non-binding recommendations to the Member States on how to ensure the sustainability of biomass.’

At present, 24 per cent of biomass comes from dedicated biomass from agriculture and forestry, with the rest from agricultural and forestry by-products and residues. The European forest area is increasing by 500,000 hectares a year - double the size of Luxembourg. According to the associations, Europe only uses 60 per cent of annual forest growth, giving the option of increased sustainable biomass use.

EUSTAFOR has recommended making recommendations to Euro zone member states based on existing criteria as the best way to secure trade for sustainable biomass.

Morten Thoroe, secretary general, CEPF, said, ‘The risks of using unsustainable biomass are low. The EU biomass production is covered already by the existing framework for agriculture, forestry and environment. These include the cross-compliance rules, environmental legislation, sustainable forest management practice and voluntary forest certification scheme.’ The associations also support the exclusion of small scale producers of under 1MW thermal or electrical capacity, claiming that monitoring these operators would be costly and ineffective, and urged the promotion of efficiency measures.

4th December 2009

In the run-up to the crucial climate change talks in Copenhagen, the European Wind Energy Association (EWEA) has published a league table showing which EU countries are best at utilising wind energy.

Top of the table is Denmark, with the highest amount of wind energy capacity per square kilometre of national territory. Germany comes a close second and the Netherlands third. Spain, in fourth place, has half the wind power density of Germany, whereas Portugal and Ireland are above the EU average wind power density.

Italy is not far below average, while France and the UK each have less than half of the EU’s average density of wind power capacity. Romania, Slovenia, Malta and Cyprus are floundering at the bottom of the league with next to zero wind power generation per square kilometre.

‘The future of wind power in Europe lies in offshore as well as onshore wind power,’ said Christian Kjaer, chief executive of EWEA.

The density of wind power per km2 is the best means of measuring and comparing the extent to which different countries exploit their wind power potential. According to a survey carried out by an independent market research institute in August, 91 per cent of Danes support the further development of wind power in their country.

If the eight geographically largest member states had the same density of wind power capacity per km2 as Denmark, they would produce enough wind power to meet 19 per cent of total EU electricity demand.

‘Denmark, Germany and the Netherlands are European leaders in fighting climate change with wind-powered electricity,’ said Kjaer. ‘The figures released today also reveal the huge potential for wind power growth in most countries. Laggards in wind energy - including France, the UK, Sweden, Finland and Eastern European countries - can easily play catch-up,’ he added. The wind industry calculates that it can meet up to 16.6 per cent of EU electricity demand by 2020.

1st December 2009

EcoEnergy Scandinavia has signed a memorandum of understanding with Changzhou Xinbei District Government and Jiangsu Guoyu Electric Co regarding to build local waste-to-energy facilities in the Changzhou Xinbei district.

Changzhou Xinbei Government express support for EcoEnergy to invest and build a waste-to-energy facility. Also, Guoyu state they are willing to team up with Ecoenergy and set up a joint venture waste-to-energy facility in Changzhou Xinbei District, and to assist EcoEnergy to communicate and facilitate in China. Following a succesful on-site feasibility study for the project, all parties will start work on finalising commercial terms for the project as soon as possible, a statement said.

EcoEnergy recently established a development project with the Ukraine Government and the acquisition of KMW Energi.

Lars Guldstrand, chairman of EcoEnergy, said, ‘For EcoEnergy, this is an important milestone in building a strong player within waste-to-energy. Recently, we have started to build our first waste-to-energy facility in Ukraine and we have acquired Swedish KMW Energi with presence on the important US market. With the Changzhou Xinbei and Jiangsu Guoyu Electric agreement, we are about to enter the fastest growing energy market in the world.’

EcoEnergy Scandinavia develops waste-to-energy plants and biofuel-based combined heat and power (CHP) plants. The company provides facilities to a global market. The company develops, designs, finances, constructs, owns and operates plants, and is based in Stockholm, Sweden.

29th September 2009

The Sub-Saharan African biofuels market should experience rapid growth in the next five years, according to a report by growth partnership service Frost & Sullivan.

The report states that the European Union and US have set high targets for the inclusion of biofuels in their fuel supply, which is a driver for biofuels projects in the region.

Frost & Sullivan biofuels analyst Kholofelo Maele said, ‘Legislating mandatory blending into a country’s fuel supply will create a secure market for biofuels.’ He added, ‘However, the present uncertainty around policy has made investors hesitant about investing in this industry, which is still in its infancy.’

Despite this, the report explains that since a large proportion of the African population relies on agriculture for its livelihood, energy crops could provide an income for subsistence and farmers to support rural development initiatives. It adds that foreign organisations and local commercial farmers have invested in land and made agreements with out-growers for growing energy crops and setting up pilot production facilities. Maele added, ‘For manufacturers targeting the export market, taking sustainability criteria into consideration will be critical to securing market access. African governments will need to take a proactive stance towards ensuring that the industry’s development is regulated to prevent the potential negative impact on food security and the environment.’

16th September 2009

Biofuels are increasingly being seen as a viable alternative to conventional jet fuel in the US, according to Continental Airlines’ managing director for Global Environmental Affairs, Leah Raney. The Houston-based carrier has also been implementing its green initiatives across its ground services fleet in its major hubs in Houston, Newark and California by switching to electric vehicles and related infrastructure and using biodiesel in cold weather locations.

This is in contrast to the lack of government support seen in Europe to encourage development and usage of biofuels as highlighted by German carrier, Lufthansa recently.

The US carrier which has been trying to boost its green credentials since as early as 1998, was the first airline in the US to successfully carry out a flight test in one of its twin-engined Boeing 737 aircraft using biofuels made from algae and jatropha, in January this year.

‘Continental has been very proactive in green initiatives. The biggest thing that we have been doing is investing heavily in new fuel-efficient and clean aircraft. Over the last ten years we have invested $12bn in this area and we have been able to reduce our greenhouse gas emissions by 36 per cent,’ said Raney.

Raney spoke of the close cooperation and alliance formed amongst airlines and the Federal Aviation Administration to combat climate change.‘We are working with the FAA in trying to get departure and approach procedures approved that use less fuel such as continuous descent approach into airports. Using the new technology that we have on our new planes we can fly more efficiently at more fuel-efficient elevation.‘Along with other US carriers we are involved in the Commercial Aviation Alternative Fuels Initiative, a forum to bring airlines and fuel suppliers together to action these new initiatives. We are trying to do what we can to stimulate these projects and get more alternative fuels certified for use, and we are hoping to start using alternative fuels by 2012.’

In August of this year, Continental and a number of the other airlines agreed to purchase alternative fuels for ground service in Los Angeles made from grass clippings, with alternative energy company Rentech. The company will build a new alternative fuel plant in Los Angeles, which the airline will be able to use in 2012.