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While 2010EU biodiesel production registered a 5.5% increase compared to the previous year, reaching a level of 9.57 million tonnes, the forecasts for 2011 show a reduction in European production compared to the same time last year. In addition, the 2010 increase remains low compared to growth rates registered in 2009 (17%) and 2008 (35%). The first quarter of 2011 shows a reduction of domestic... European production. In 2010 Spain confirmed its position as the third largest European biodiesel producer, ahead of Italy, which saw a slight decline in production compared to 2010.Germany and France remain by far the leading biodiesel producing nations. As of July 2011, European biodiesel production capacity was at 22 million tonnes. The number of existing biodiesel facilities stood at 254, slightly up from 2009 due to the start of a few new production units. This industrial base is the result of investments in biodiesel production planned before 2007 in order to meet ambitious objectives for biofuels consumption given by EU authorities. While EU biodiesel capacity utilisation stands at 44% for the first two quarters of 2011, and for the first time in registered history, the entire European production has slightly decreased year-on-year. [read more]

The US biodiesel industry has come a long way in a year. Domestic production has surged by at least 180% from 2010’s figures, maybe even more. The 2010 production rate tumbled to a four-year low, with output cut amid regulatory uncertainty and the loss of what turned out to be a critical tax credit. Now the industry is on track to meet this year’s federal demand mandate, which was far... from certain earlier in 2011, while also producing enough biodiesel to meet 2010’s mandate shortfall. Biodiesel producers in the US have been negatively impacted over recent years from a challenge by the US Environmental Protection Agency (EPA) on indirect land use changes that would make its key feedstock – soyabeans – noncompliant in meeting a federal demand mandate, to lawsuits from the oil industry and the loss of a tax credit in 2010. The EPA relented on indirect land use change (ILUC), the lawsuits were dismissed; and while the Biodiesel Mixture Excise Tax credit has been reinstated for this year as well as made retroactive for 2010, it might end on 31 December. [read more]

In the wake of the political defeats in the US of various measures to improve energy security and to reduce greenhouse gases (GHGs), the Renewable Fuel Standard (RFS) has emerged as the primary federal programmeme to accomplish both US policy goals. Originally established by the Energy Policy Act of 2005 (EPACT), the first stage of the RFS, typically referred to as RFS1, focused on ethanol usage.... With the passage of the Energy Independence and Security Act of 2007 (EISA), the greatly expanded programme became known as RFS2 and began to shift focus toward advanced biofuels that met GHG performance standards. While ethanol continues to fulfil the large majority of the RFS volume mandate, the value of the renewable identification numbers (RIN) credits under the RFS programme is shifting heavily toward advanced biofuels. With the programme likely to deliver more than $2 billion (€1.45 billion) in RIN value to the advanced biofuel market in 2012, market participants are increasingly recognising the value and importance of the RFS programme. [read more]

Two US politicians have introduced a farm bill which will reshape the Biomass Crop Assistance Program (BCAP) for biofuel producers. Senator Dick Lugar and congressman Marlin Stutzman introduced the Rural Economic Farm and Ranch Sustainability and Hunger Act (REFRESH) at the beginning of October, which aims to cut $16 billion (€11.4 billion) from farm programmes, including those relating to... BCAP.  ‘Farmers recognise the need to tackle our nation’scrippling $14.7 trillion debt. So, our bill saves taxpayers $40 billion,’ Lugar says. However, groups from the biofuels industry, such as the Renewable Fuels Association, Growth Energy and Biotechnology Industry Organization, are campaigning to make sure some subsidies and financial assistance they received in the last farm bill are kept. BCAP, which provides subsidies for next generationcrops such as switchgrass, is due to expire next year and in the face of mounting debt the US is trying to save money at every turn. Todd Atkinson, the chief of staff to the USDA Farm Service Agency Administrator, says although it is important to have measures in place to make sure biofuels crops get the funding they need, it is difficult to invest in crops that have not already been tried and tested for biofuels production. [read more]

Mission New Energyhas two refineries in Malaysia, producing a combined capacity of 350,000 tonnes of biodiesel a year. For now, the company has no plans to expand this – it is focussing instead on marketing its product to international markets. Its first success cameback in March, when Mission NewEnergy’s plant in Kuantanbecame the first biodiesel facility outside of Europe to gain... full ISCC certification. The company’s palm oil producer Felda’s mills and plantations were also certified. This certification demonstrates compliance with German and European greenhouse gas (GHG) saving targets. The Renewable Energy Directive requires a minimum of 35% saving in GHG emissions from the use of biofuels and bioliquids to qualify for the subsidies and other privileges. Using Felda’s crude palm oil to produce biofuel results in GHG savings of 47% and 41%, respectively. Since achieving this certification, Mission NewEnergy has begun selling to Rotterdam. The company has also secured a six month contract for supply commencing in January 2012 (set up for the 2012 European summer) with a global oil major. [read more]