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The European Commission planned to publish its legislative proposal on indirectland use change (ILUC) effects of biofuels by July 2011 based on an impact assessment that examines four different options of how to best address ILUC. ILUC is a phenomenon that cannot be directly observed or measured so its effects need to be estimated through modelling. Therefore, much of the debate focuses on the... ‘right’ scientific basis for the ILUC policy. While the ILUC modelling evolves, the Commission asked the International Food Policy Research Institute (IFPRI) in Washington, US, to look into the issue. IFPRI’s earlier study published in 2010 has now been refined throughout the year and serves as the basis for the impact assessment the Commission is about to complete. IFPRI used, as they call it themselves, a ‘slightly updated version’ ofthe MIRAGE model and a new scenario based on what member states indicated the volume of biofuels to be used would be in the near future. [read more]

The US Environmental Protection Agency’s (EPA’s) latest proposal for biodiesel production in the coming years reflects growing confidence that the US biodiesel industry will meet or exceed its volume targets.  The EPA last month unveiled its Renewable Fuels Standard (RFS2) proposal detailing the volume of renewable fuels to be used in the US. It calls for 1 billion gallons of... biomass-based diesel production in 2012 and 1.28 billion gallons in 2013. That represents a modest increase from this year’s target of 800 million gallons, which the industry is well on its way toward meeting. After a difficult 2010, US companies have ramped up activity in recent months. Overall, US output has been averaging about 75 million gallons per month recently, with a record of 82 million gallons in May. [read more]

An increasing number of captive fleets areusing high blends of UCO-based biodiesel to reduce their carbon footprint, led by organisations such as the Environment Agency, McDonalds, 3663, Biffa/Verdant, Stagecoach, Wincanton and many more. Despite its success, the duty differential has been an issue of contention for a number of years and was only saved from abolition in 2009 after lobbying by the... UK Sustainable Biodiesel Alliance (UKSBA) of Labour ministers convinced them to postpone its removal until 2012. However, the government’s green credentials are being called into question from a number of angles – most recently from the House of Commons’ Environmental Audit Committee in its report on the Budget 2011 and the government’s decision making on environmental taxation policy. According to this influential group of cross-party MPs, the government is not striding towards the title of ‘the greenest ever’ but is instead taking ‘retrograde steps’ by eliminating measures that currently incentivise the use of low carbon fuels, such as sustainable biodiesel. [read more]

Singapore does not have a very good record when it comes to biodiesel production. High operating costs, coupled with tepid demand, have shuttered several biodiesel plants in the region over the last few years. One high profile case was that of Australia’s Natural Fuel, which shut its facility on Jurong Island in 2009 after margins were decimated by high oil prices. In contrast,... Finland-based Neste Oil opened its 800,000 tonnes a year Singapore-based biodiesel plant in November last year. The plant cost around €550 million to build. Although most of the renewable diesel will be sold to Europe and the US, where legislation is in place to prompt demand for the fuel, Matti Lehmus, executive vice president of oil products and renewables says Singapore was the obvious choice for the plant’s location. Singapore is the world’s third largest centre for oil refining and a central location in terms of product and feedstock flows, as well as logistics. [read more]