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Carbon-Free NZ: Mass Biofuel Production

4:10 PM Wednesday Oct 2, 2013 EXPAND The Bioenergy Strategy indicates that 30% of our transport fuels could come from biomass by 2040; Scion research has shown that, long-term, we could theoretically do 100% New Zealand is in the enviable position of potentially becoming the Saudi Arabia of biofuels in the South Pacific, without the food Vs energy debate over biofuels that has plagued other nations. New Zealand has the capacity to produce all its transport fuels from indigenous natural resources. As petroleum becomes more expensive over the next decade we can transition to transport fuels from biomass (organic matter) and waste. Technically these are achievable now, but the economics are not quite there. Internationally there are a number of technologies available to convert biomass and organic matter into liquid biofuels. Some of these have been around for decades while others are emerging (including from pioneering New Zealand companies). Unlike many countries where the focus has been on the production of ethanol from sugar crops and biodiesel from vegetable oil, we can use our cropping land for more valuable products, such as food. The New Zealand focus for biofuel production is on using our biomass from wood and organic matter from municipal waste. As a result we will not have the food Vs energy problems. Instead, in New Zealand, it’s food plus energy. Transport fuel production from renewable sources is not new to us. Anchor Ethanol has been producing ethanol from whey for a number of years. The ethanol can be blended with petrol as Gull currently does. The production of biodiesel initially focused on using the feedstocks tallow, used cooking oil or canola oil, with conventional conversion technologies. For a short period biodiesel production was supported by financial assistance from Government which stimulated fleet owners to successfully trial biodiesel. Demand for biodiesel outstripped supply. However, because of the short term of the assistance, investors stayed clear of building new production capacity. Now only Green Fuels NZ, who purchased the biodiesel production business from Solid Energy, produce biodiesel commercially. The experience of biodiesel showed the significant international marketing benefits that are achievable for NZ Inc when we seriously use biofuels in vehicles. Many tourist businesses, such as in Queenstown where all tourist operators used biodiesel, gained significant market advantage from being able to promote themselves as ‘clean and green’. This carries over into our export businesses where sustainable production is becoming more important to customers. This initial biodiesel and ethanol production was always going to be limited, but its importance with regard to transitioning to greater volumes of production was in the experience vehicle owners gained in the use of biofuels. However, there would have been enough feedstock for conventional technologies to have provided adequate quantities of biofuel until the economics of advanced biofuels occurred. The emerging biofuel production of greatest relevance to New Zealand uses advanced technologies and feedstocks of biomass or waste organic matter. These are not the most attractive feedstocks as they are low in sugars and starches. We have a lot of biomass and we are good at growing it, and we have an endless supply of organic matter in municipal waste. In fact, municipal waste costs us money to dispose of. Commercial facilities producing these biofuels are currently starting in many countries. They generally require government subsidies – the level of which gives an indication of just how close the technologies are from operating in an unsubsidised market such as ours. Taking into account petroleum price projections. I estimate we are only 5-10 years off being fully commercial. We currently waste 10-15% of our forest production through harvesting and processing. This quantity of wood residue would be enough to get biofuel production started using advanced technologies. This would promote larger quantities of biomass from extended forest planting. The Bioenergy Strategy prepared by the Bioenergy Association indicated that 30% of our transport fuels could come from biomass by 2040. Scion research has shown that, long-term, we could theoretically do 100%. The economics of this sort of production is likely to be carried through by the value of the co-products that are also extracted during the process. Wood and other organic matter is rich in chemicals, only some of which can be used to make biofuels, and these chemicals will become more valuable as petroleum prices soar. The chemicals from wood can also be used to make bio-plastics which can substitute petroleum-based plastics. Consolidation of the current sector, based around the production of transport biofuels and their co-products, along with our ability to efficiently grow wood, could lead to our working with Asian countries such as Singapore, which does not have enough land to grow wood for production of liquid fuels and bio-based materials. The demand for liquid fuels for transport and other uses is unlikely to disappear, but the price will escalate. Now is the time to start partnering with Asian countries so that we use their money, and our ability to efficiently grow wood, to produce their liquid biofuels. New Zealand could become the Saudi Arabia of the region in the production of biofuels. For weekly Element news sign up for our newsletter here Brian Cox is the executive officer of the Bioenergy Association of New Zealand. He has over 30 years’ experience in identifying, investigating and developing commercial capital investment projects in the energy and infrastructure sectors. The Association represents all commercial, research and academic parties involved with wood fuel, biogas and liquid biofuels. Previously Cox led the development of the New Zealand Bioenergy Strategy (which he now works to implement) which has been recognised within the Government’s Energy Strategy. By Brian Cox Continue reading

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Cool Planet, Acritaz To Turn Palm Waste Into Biofuel In Malaysia

Details Category: Bioenergy 03 Oct 2013 Published on Thursday, 03 October 2013 Palm plantation waste will be made into biofuel and biochar Biorefinery developer Cool Planet Energy Systems and Acritaz Greentech will be building commercial facilities in Malaysia to transform palm plantation waste products – empty husks, wood, and bark waste – into biofuel and biochar Acritaz Greentech, a group of companies that bring biomass processing and bio-technology innovations to plantations, has signed an agreement with Cool Planet to explore the building of multiple commercial biomass processing facilities using Cool Planet technology in Malaysia. Cool Planet develops small-scale biorefineries that convert non-food biomass into biofuels and biochar, a soil enhancing substance. They recently announced an agreement with Concord Energy to establish a joint venture in the Asia Pacific Region to develop biofuel facilities (see related story ). “We are pleased to be working with Acritaz Greentech, a group that is known for their technology leadership in biomass processing and bio-technology in Malaysia, to deploy our biofuels and biochar technology,” said Cool Planet Chief Executive Officer Howard Janzen. Acritaz and Cool Planet will use biomass raw materials that are abundant in Malaysia – such as palm plantation waste – to create renewable cellulosic fuels for the Asian market. They will develop a plant design that satisfies the specific needs of Malaysia with the first such plant to begin construction in 2014. “Acritaz is excited to commercialize Cool Planet’s platform technology to bring drop-in fuels to the Malaysian fuel market,” said Looi Kem Loong, a director at Acritaz. “This is the kind of breakthrough technology that Acritaz wants to deploy.” Acritaz will work to commit $60 million for this first facility before the end of 2013. They plan to locate this facility in the Malaysian state of Johor. The two companies will then work to build multiple such facilities across Malaysia, with Acritaz purchasing proprietary equipment and consumables from Cool Planet. – EcoSeed Staff Continue reading

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Ontario Farmland Prices Growing

Holland Marsh prices second highest in country Holland Marsh prices second highest in country Rising cost of farmland Rick Vanderlinde The cost of farmland has doubled per acre in some parts of Ontario since 2010. Innisfil Journal BySusan PIgg So you think Toronto’s housing market is crazy? Be thankful you didn’t opt for life on the farm. Agricultural land prices have virtually doubled in some parts of Ontario just since 2010 and, so far this year, have continued to hit new records across much of Canada, according to a new report released Tuesday by ReMax. “All in all, it’s been a couple of very good years on the farm, and you don’t hear that very often,” says Elton Ash, the B.C.-based regional executive vice president of ReMax Western Canada. The main driver has been unusually strong commodity prices. But there are other factors that have pushed farmland prices to silo-high levels in areas like Woodstock, Kitchener-Waterloo and Leamington. And it turns out they aren’t all that much different from the pressures plaguing big-city housing markets like Toronto’s. The demand for prime land has so outstripped supply the last three years that it’s common to have multiple bidders — including Asian, European and other international investors — looking to snap up farms that come on the market. Few plan to sow seeds themselves. They don’t have to. Rents have also climbed dramatically the last few years. Owners can now get $250 to $300 an acre from experienced farmers in areas like Woodstock and Stratford where farmland has jumped in price from about $8,000 to $9,000 an acre in 2010 to $15,000 to $18,000 per acre this year, says Kevin Williams, a ReMax realtor who focuses just on agricultural real estate. “There’s really a land boom going on,” says Neil Currie, general manager of the Ontario Federation of Agriculture. “Investors are looking at farmland as a viable investment and at farming as a viable industry now, which is good news but it does provide a lot of competition for farmers.” British Columbia’s lush Fraser Valley area remains the farmland equivalent of the Four Seasons penthouse suite, with prices ranging from $40,000 to $60,000 per acre. Ontario’s Bradford and Holland Marsh areas take the second and third spots, respectively, at $25,000 and $20,000 per acre and up, says ReMax. But areas like Woodstock, Stratford, London, St. Thomas and Leamington have taken off, right along with commodity prices the last three years, the report shows. With those prices cooling, investor interest in farmland seems to be easing, realtors say. But the supply problem remains. Aging farmers aren’t planning to park their tractors anytime soon, just like baby boomers who are remaining in their homes longer than expected. Kevin Williams focuses just on agricultural real estate and has seen a surge in demand from veteran farm families, just like their big-city counterparts, looking to help their kids get a toehold in the business. It isn’t all about carrying on a treasured family tradition. Most coveted are tracts of land adjacent to the family farm, or close enough down the road that father and son — or daughter — can share costly equipment and benefit from economies of scale. TorStar News Network Innisfil Journal By Susan PIgg Continue reading

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