USA

• The ethanol industry set an annual production record of 2.13 billion gallons in 2002 – more than 20% from 1.77 billion gallons in 2001.
• Big River Resources, LLC, a farmer-owned company, has begun construction of an ethanol plant in Iowa to produce 40 million gallons of ethanol.
• The Energy Bill is yet to be passed by Congress. This would add a level of certainty to the industry and the farmers would be more willing to initiate projects and bankers to invest in them.
• Studies are being carried out to improve the yields of ethanol per bushel of corn. The study involves finding, and then improving, the best corn to produce ethanol. This will also help increase crop prices for farmers and lower overall production costs.
• Ethanol may be a major source of hydrogen in fuel cells for the proposed $1.2 billion Freedom Fuel Program by President Bush for encouraging the use of hydrogen as fuel.

AUSTRALIA

• Neumann Petroleum, a Queensland-based independent distributor is selling ethanol-blended petrol at over 40 service stations in the state.
• The Dalby bio-refinery is planning to begin construction of Australia’s largest grain ethanol plant.

CANADA
Canada set a new target of achieving 1.3 billion liters of ethanol per year by the year 2010. With a CO2 reduction of 40% for grain alcohol, this amounts to replacing 532 million liters of gasoline or 1.33 megatons of CO2 - just over one-half of 1% of the 240 megatons of GHGs Canada is committed to reduce.

TAIWAN
Taiwan is set to replace MTBE with ethanol, which would create an annual ethanol market of 106 million gallons.

JAPAN
The Japanese Environmental Ministry has approved a policy to reduce GHGs by blending all gasoline with 10%-ethanol by 2008. Lower blends of 1-5% are already being tested and marketed.

EUROPEAN UNION
The European Council of Ministers has agreed to set nonbinding goals for biofuel use at 2% of gasoline and diesel in 2005 and 5.75% by 2010.

INDIA

• India has launched 5% ethanol-blended petrol from January 1, 2003 in some states.
• The Petroleum Ministry has sought restoration of 75 paise per liter excise duty concession on ethanol- blended gasoline to encourage this green fuel, as is being practised globally.
• There is hectic activity in the country to set up anhydrous alcohol plants. It has been estimated that 300 million liters per annum is under implementation. Six sugar mills in Tamil Nadu have been granted licenses by the Government, which would produce 55 million liters of ethanol a year.

HUNGARY
To boost the production of ethanol, the Hungarian Government has removed the excise tax on bioethanol.

POLAND
Bartimpex of Poland will invest $300 million over the next two years to develop biofuel manufacturing capacity.

FRANCE
France plans to reduce the tax exemption for both fuel alcohol (ETBE) by 30% and biodiesel by 6%.

BIODIESEL

USA

• Biodiesel Facility begins production in Ralston, Iowa. The 12 million gallon capacity plant is one of 18 dedicated biodiesel plants nationwide, with more than a dozen others planned by various private companies and farmer cooperatives.
• Arlington County has become a role model for other counties by reducing pollution after switching to cleaner burning biodiesel in its 500 diesel-powered vehicles. B20 is being used in vehicles ranging from school buses to fire trucks to garbage trucks.
• A study commissioned by the Illinois Soybean Association (ISA) finds that US demand for biodiesel will increase to more than 500 million gallons by 2012. The study states that the consumption of biodiesel in Illinois is expected to increase from less than two million gallons in 2003 to nearly 20 million gallons by 2012.
• The Environmental Protection Agency (EPA) has released a new comprehensive technical report of biodiesel emissions data that shows biodiesel use can reduce emissions of particulate matter by 47% when compared to petroleum diesel in unmodified diesel engines. The report also verified a 67% reduction in unburned hydrocarbons and a 48% reduction in carbon monoxide with pure biodiesel (B100).
• According to EPA, biodiesel can reduce targeted cancer-causing compounds by up to 90%.
• The University of South Florida is using biodiesel to run 22 campus shuttle buses, thereby producing less carbon monoxide, unburned hydrocarbons and particulate matter than regular diesel.
• The United Soybean Board (USB) plans to organize farmer meetings to boost the numbers of fuel distributors selling biodiesel and soybean farmers using biodiesel. The US market has grown from about 500,000 gallons in 1999 to over 20 million gallons in year 2002.

SOUTH AFRICA
TRADE and Investment KwaZulu-Natal are pursuing several investment opportunities, including a R2 billion biodiesel power plant project in Richards Bay.

INDIA
The Government is planning to bring out a National Policy on Biofuels. After announcing the 5% ethanol blending with petrol, it is considering implementing biodiesel in the country. It is contemplating setting up a National Biofuels Development Board.

UNITED KINGDOM

• Scotland plans to build the first biodiesel plant of the country to produce 50 million liters of fuel from used cooking oils and fats.
• After the duty reduction on biodiesel by 20 pence per litre, sales have reached about 400,000 liters per month and the number of filling stations has jumped to 80 in the UK.
• Sainsbury, a very reputed supermarket, has announced that it would be selling Global Diesel, a blend of 95% ultra low sulphur diesel and 5% rapeseed oil. It is estimated that this will lead to a 5% reduction in GHG emissions, a 20% cut in particulates and a 1% improvement in fuel efficiency.
• The National Farmers’ Union, based on a study conducted, has said that 20% (2.5 million acres) of arable land in UK could be devoted to growing biofuels by the end of the decade.
• Local bus operators using biodiesel would be eligible for a 100% rebate on fuel duty with immediate effect.

BRAZIL
Brazil is developing a National Biodiesel Strategy. Planting of momona (castor bean plant), a raw material for the production of biodiesel, is being promoted by the State of Rio.

AUSTRALIA
Australia has launched biodiesel from canola oil. The fuel gets 80% carbon dioxide reductions when it is mixed with LPG, which increases the power output of the engine.

Courtesy: Mr Arvind Reddy, Program Associate,
Jai Uppal, Advisor (Renewable Energy), WII

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