November 13, 2006
Volume: XVIII
Issue: 47

Also This Week

The impact of ethanol: With MTBE gone, isooctane and isooctene production may rise in U.S.

U.S. refiners have had some decisions to make, due to the expiration of the oxygenate requirement. Coupled with the implementation of the Renewable Fuel Standard in the Energy Policy Act of 2005, MTBE has been virtually eliminated from the U.S. gasoline pool, with MTBE plants now more likely to convert to isooctane or isooctene production.

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India looks into income potential of biodiesel byproduct

India's Council for Scientific and Industrial Research (CSIR) has begun a three-year research project in a biodiesel byproduct which it hopes will help boost the fuel's value to the country's rural agricultural industry.

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Australian firm constructing world’s largest biodiesel plant

An Australian company broke ground last week on a biodiesel plant in Singapore that is poised to become the world's largest such facility.

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Green Star inks reactor production deal with De Beers Fuel

Chula Vista, Calif.-based Green Star Products has signed an agreement with De Beers Fuel of South Africa to build 90 of its advanced biodiesel reactors, each of which are capable of producing 10 million gallons a year.

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Worldwide Fuels Charter references ethanol permeability

Engine and automakers continue to update the gasoline and diesel specifications contained in the Worldwide Fuels Charter (WWFC). The latest version of the charter was released last month, and it includes results from recent studies on ethanol permeation along with discussions of corrosive sulfur, just to name two of the top issues that impact vehicle operations and emissions.

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Renewables could account for 25% of U.S. energy by 2025

A new Rand study released today says the U.S. could get a quarter of its energy from renewable sources by 2025 at little or no additional cost if oil prices stay high and renewable energy prices continue to fall.

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Features

Democrats’ control of Congress seen as boost for biofuels

Shares of the largest U.S. ethanol producers soared last week on speculation that Democratic control of Congress will mean increased measures to promote adoption of biofuels. Archer Daniels Midland surged $1.93, or 5.8%, in the week to close at $35.46, while VeraSun rose 94¢, or 5%, to close Friday at $20.23. The day after the election, VeraSun jumped 12%, the biggest increase since the shares became publicly traded in June. The Ethanol & Biodiesel News Ethanol Index, which tracks Wall Street's perception of the long-term health of the industry, registered a value of 116.95 on Friday, the highest so far for the index this month.
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Survey: A third of U.S.-made biodiesel could cause engine failure

A just-unveiled fuel-sampling survey by U.S. National Biodiesel Board and National Renewable Energy Laboratory found that one-third of biodiesel samples pulled between November 2005 and July 2006 were out of spec for incomplete processing.Coming from a group that once erroneously claimed that diesel fuel injection equipment makers were singing the praises of biodiesel, it’s a remarkable admission.The incomplete-processing problem is the same issue that caused some filter clogging problems in Minnesota last year, which shut down trucks and forced postponement of Minnesota’s 2% biodiesel-blend mandate scheme.Although fuel quality is always important, cold weather can amplify problems caused by out-of-spec fuel, NBB warned in a Nov. 8 bulletin about a possible new wave of fuel-system clogging problems this winter.
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Ethanol spot prices surge on higher corn costs, anxiety over supply

Spot prices for ethanol are on the rise, exacerbated by the seasonality of import barges, market sources say. Brazil, which had helped put a ceiling the market back in the summer, is currently in its inter-harvest period for most foodstuffs, including sugarcane. Blenders who had been content to snap up small quantities to cover uncontracted needs were anxious last week that national prices - which soared briefly at the beginning of the month after a large consignment derailed in Pennsylvania - would continue heading higher into the winter.
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Malaysia looking to capture double its share of European biodiesel market

Malaysia can more than double its biodiesel output by the end of next year, the country's Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui told reporters on Monday.Speaking at the opening of a biodiesel symposium in Kuching, Sarawak, Chin said that Malaysia's anticipated 140,000 tons of biodiesel production this year is on track to be outdone by 300,000 tons of capacity coming online by next December. Malaysia is attempting to market its bounteous crude palm oil production capabilities to Europe and Germany in particular. The symposium, organized by the Malaysian-German Chamber of Commerce and Industry, is being hosted by Germany's Energy Agency.
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Prices & Markets

Report Blend Values

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Report Spreads

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Report Margins

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Report Equities

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Retail E-85

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Spot Grains

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Rack Ethanol

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Spot Biodiesel

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Spot Oxygenates

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Spot Butanes

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Spot Gasoline

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Spot Co-Products

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Futures Corn

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Futures Ethanol

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Futures Soybeans

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