Tag Archives: green
The EU’s Misallocation Of Biomass
Monday, 09 September 2013 The EU’s Renewable Energy Directive (RED) is hindering the development of materials use and consequently the entire creation of a bio-based European economy, according to Michael Carus, managing director of Germany’s Nova Institute. As a consequence, companies like DSM and BASF are choosing to make investments in other countries such as the USA and Brazil, as well as Asia. “The EU’s bioenergy and biofuel policy, as embodied in the ambitious objectives fixed by RED, leads to the systematic allocation of biomass to energy to the disadvantage of material use,” Carus told Il Bioeconomista . “RED has triggered the development of national action plans and support systems for bioenergy and biofuels and this in turn has driven up biomass prices and agricultural leases, making it far more difficult for other sectors to get their hands on biomass and distorting prices. “The ‘misallocation of biomass’ is the right phrase here, since this is blocking higher value material uses like chemicals and plastics from coming to fruition. RED-linked developments on the ground will have a considerable impact on the future availability of biomass for the materials industry.” Bioenergy and biofuels are expected to make up roughly 60% of the overall EU’s RED quota and about 90% of the transport quota by 2020. “We urgently need a new political framework for the most efficient and sustainable utilisation of biomass,” Carus said. “This means especially a level playing field between material and energy use. Five years ago this was a worldwide problem – today it is mainly a problem for Europe. In America and Asia the political framework for bio-based chemicals and plastics is now much more favorable than in Europe. Accordingly, most of the new investments are going to the US, Canada, Brazil, Thailand, Malaysia and China.” Continue reading
Biochar Symposium Scheduled For Oct. 13-16
U.S. Biochar Initiative September 9, 2013 Biochar has the potential to increase crop yields and nutrient value, conserve water, combat climate change, and reduce our dependence on fossil fuels, according to the U.S. Biochar Initiative (USBI). The problem is that relatively few people have heard of biochar, a form of charcoal that can help restore soil carbon, filter stormwater runoff, and reduce greenhouse gasses. Farmers, foresters, researchers, biochar producers, entrepreneurs, and environmentalists will convene in Amherst, Mass. on October 13-16, 2013 to learn more about biochar and share the latest research and application techniques with their peers. The 2013 USBI North American Biochar Symposium, titled “Harvesting Hope: The Science and Synergies of Biochar,” will take place on the UMass Amherst campus and include farm tours and a “carbon negative” banquet of delicious foods grown with the help of biochar. The conference is sponsored by USBI. “The biochar industry is turning waste into ‘black gold’ for agriculture,” stated conference director, Karen Ribeiro. “Biothermal energy companies are extracting the biochar as a byproduct and selling it. Farmers are enriching their soil by adding biochar. The biochar-enriched soil is sequestering carbon, which can reverse the carbon build-up in the atmosphere,” she added. “The biochar movement is heating up,” Ribeiro said. “Biochar producers are reaching a point of profitability. Everyone wants biochar to scale up faster, from the gardener who’s creating their own biochar in a cookstove to companies like Cool Planet Energy Systems, which has attracted investors like BP, Google Ventures, and ConocoPhillips.” She added, “The symposium is a space where activists and investors can find common ground.” The conference will feature keynotes by Congressman James McGovern and renowned author Frances Moore Lappe, as well as a plenary with international biochar authority Johannes Lehmann of Cornell University. Activities will range from an introductory half-day workshop for farmers and gardeners on Sunday, Oct. 13, that is open to the public to presentations from scientists and researchers from around the globe. “Expanding the use of biochar can simultaneously help address food security, conserve water and reduce our dependence on fossil fuel,” said Ted Wysocki, chair of the Pioneer Valley Biochar Initiative, which is hosting the conference. “We need to get more people and companies involved. So in addition to the tracks on the science and benefits of biochar, policy and community engagement, and feedstocks and production, we’ve got an entire track focused on scale, sales and marketing,” Wysocki said. Attendees won’t just be talking about biochar, they’ll be chewing on information at a “carbon negative” banquet on Monday, Oct. 14, from 5-9 p.m. at UMass, which is also open to the public. “Our ‘Biochar Banquet’ will feature delicious local produce grown in biochar-conditioned soil, as well as a variety of local meat and ‘adult beverages’ enhanced by biochar,” Wysocki explained. The public is also invited to a free Video Lounge featuring Ted Talks, feature films, and select YouTube videos on Oct. 14 and 15, from 10 a.m.-10 p.m., and on Oct.r 16, from 10 a.m.-4 p.m. To view the conference schedule, visit http://scholarworks….u/biochar/2013/ . To register, go to http://symposium2013…ar.org/register . Continue reading
Old McDonald Had A … Good Investment
You’ve heard it a million times: invest in real estate because “they’re not making any more of it.” Often, that’s less than true. Manhattan hasn’t gotten any bigger, but its residential and office capacity has soared. It is more than true, however, for farmland: the number of arable acres per world population has been falling steadily since the 1960s. Many reasons for investing in farmland are screamingly obvious: it produces current yield with no interest rate risk; generates returns highly uncorrelated to the general financial markets; and protects holders from inflation. That’s why some folks like to call it “gold with a coupon.” But, are these reasons maybe too obvious? After all, larger institutions have been pouring money in to farmland for years, and per-acre prices have had a tremendous run over the past decade and more. Is too late for average investors to get in? I don’t think so. The reason is simple: the fundamentals still work. Properly acquired acreage still maps to a solid 4% yield, appreciation completely aside. That’s what you should expect from a cash lease on a quality property producing corn, wheat, and soybeans–irreplaceable elements of the worlds’ diet. (I’ll pass on handicapping almond and avocado farms). And 4% — without interest rate risk and with inflation protection — looks awfully good right now. Could land values fall and damage your total returns? Of course. But there are some awfully strong fundamental reasons that support even these recent higher prices. Most basic is the huge, rising, politically empowered middle class of the Middle East, Asia, and Latin America. One thing you can pretty much count on is that better diets will on the top of their agendas. And that means direct demand for grain staples, and also for animal protein, which depends on… those same staples. Indeed, one credible estimate says that if every person in China suddenly had two eggs a day, it would take the entire Canadian wheat output just to feed those overworked hens. But there’s another, pretty surprising, reason land values are unlikely to fall significantly, despite the recent run up. And it is: technology. Numerous innovations, from GPS-guided tractors to ever better seed stock to irrigation breakthroughs, are constantly increasing the yield a given acre can produce. To give just one cool example, some farms now plant seeds with gel packs that absorb and hold rainfall (that otherwise would run off or evaporate) until the plant needs it. So even if commodity prices do tumble, the land’s economic yield is protected by enhanced output over time, a spectacular natural hedge. And, of course, if do we continue to get the underlying appreciation that has fueled much of the +10% total returns of the past many years, so much the better. (A quick note on political and environmental risk: no, changes in the farm subsidy system– if any– are not likely to change the basic investment thesis here; and yes, crop insurance is a good safeguard against flood and drought). Now, the bad news. It’s not so easy to invest in farms. Do not think for a moment that investing in agricultural companies, or the ETFs that hold them, is a reasonable substitute. Those might be decent choices too, but they do not represent the same basic investment proposition as owning the land itself. And remember, we’re not “playing” a theme here looking for big gains- – we’re making a solid, yield-oriented, purchase-power-protecting allocation. So… where to look? There are numerous, high quality, mid-size investment partnerships out there with strong management teams and reasonable investment minimums. And some wealth management firms have excellent internal teams that will handle the property purchase and management for you through a separately managed account. In either case, you can expect to pay modest management fees, but the expertise is likely worth it. Or, you can go directly to one of many farm brokerages (easy to find online) and have at it… but make sure to watch a few episodes of Green Acres first. To learn more about this and other alternative investment topics, check out my new book, The Alternative Answer. And please follow me on Twitter @bobrice3. Continue reading
