Tuesday, February 27, 2007
Palm Oil Biodiesel not as Profitable as Expected
According to an Asian biodiesel pioneer Long Tian Ching, Managing Director of Singapore's Vance Bioenergy, the palm oil biodiesel business may not be as lucrative as some people believed. His company is one of the largest companies involved in the manufacture of biodiesel from palm oil. He is bullish on the future prospects for biofuels and biodiesel but not as bullish when it comes to price and profit margins. According to him, escalating prices for raw materials have significantly eroded profit margins.
A year ago, things were different. Palm oil prices were relatively lower, while crude prices were soaring. Now it is the other way round, and not surprisingly, that is not good news for palm-based biodiesel producers.
In addition, Europe, one of the major consumers of diesel and biodiesel, has always viewed palm-based biodiesel with a bit of scepticism as the region is more familiar with fuel from rapeseed and soy. The other criticism for palm based biodiesel is something that many other energy crops are suffering from as well - widespread deforestation and disruption of wildlife
The above summary was based on an article in Dow Jones, Feb 27
A year ago, things were different. Palm oil prices were relatively lower, while crude prices were soaring. Now it is the other way round, and not surprisingly, that is not good news for palm-based biodiesel producers.
In addition, Europe, one of the major consumers of diesel and biodiesel, has always viewed palm-based biodiesel with a bit of scepticism as the region is more familiar with fuel from rapeseed and soy. The other criticism for palm based biodiesel is something that many other energy crops are suffering from as well - widespread deforestation and disruption of wildlife
The above summary was based on an article in Dow Jones, Feb 27
Labels: biofuels
PermaLink - Palm Oil Biodiesel not as Profitable as Expected posted by Ecacofonix : 8:43 PM
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Sunday, February 11, 2007
Water vs. Biofuel - Biofuels will Make India, China Thirstier
Water vs. Biofuel - Biofuels will Make India, China Thirstier
In an interesting article in Bloomberg, Andy Mukherjee points out how, in the craze about biofuel, the world is not thinking much about an equally important resource - water.
He says, "If water were a globally traded commodity, with unmet demand in China and India reflected in its price, the world might shed its newfound craze for buiofuels."
Per capita availability of water is expected to reach alarmingly low levels in India and China by 2030. In spite of this, China is growing to be one of the largest biofuels producer, pouring in the process millions of gallons of water into the effort. Similarly in India, in many areas a third of the aquifiers are over-exploited, meaning that the rate at which water is extracted is more than the rate of discharge...
According to the Minneapolis (US) based Institute for Agriculture & Trade Policy, for the US there will be a 254% increase in the volume of water used to produce ethanol from 1998 through 2008
The article goes on to say, "Just because there is no worldwide market in water, it doesn't mean the price of wasting this scarce resource in making fuel will not have to be paid."
Interesting perspective...
Original article is from Bloomberg...
In an interesting article in Bloomberg, Andy Mukherjee points out how, in the craze about biofuel, the world is not thinking much about an equally important resource - water.
He says, "If water were a globally traded commodity, with unmet demand in China and India reflected in its price, the world might shed its newfound craze for buiofuels."
Per capita availability of water is expected to reach alarmingly low levels in India and China by 2030. In spite of this, China is growing to be one of the largest biofuels producer, pouring in the process millions of gallons of water into the effort. Similarly in India, in many areas a third of the aquifiers are over-exploited, meaning that the rate at which water is extracted is more than the rate of discharge...
According to the Minneapolis (US) based Institute for Agriculture & Trade Policy, for the US there will be a 254% increase in the volume of water used to produce ethanol from 1998 through 2008
The article goes on to say, "Just because there is no worldwide market in water, it doesn't mean the price of wasting this scarce resource in making fuel will not have to be paid."
Interesting perspective...
Original article is from Bloomberg...
PermaLink - Water vs. Biofuel - Biofuels will Make India, China Thirstier posted by Ecacofonix : 1:12 AM
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