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Renewable energy: biofuels gaining momentum in the EU
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MARKETS AND BUSINESS Renewable energy: biofuels gaining momentum in the EU Biofuels are becoming more popular as alternative fuels for motor vehicles as the price of oil continues to rise sharply. In 2005, European Union production of biofuels amounted to 3.9 M tonnes, up 65.8% on 2004. A table gives details of production of biodiesel in 2004 and 2005 by individual member states of the EU, together with the difference and growth rate. The largest producer is Germany, increasing from 1,035,000 tonnes in 2004 to 1,669,000 tonnes in 2005, an rise of 61.3%. There was a 121.7% increase in the Czech Republic from 60,000 tonnes to 133,000 tonnes and production in the UK rose by 466.7% from 13,000 tonnes to 73,000 tonnes. Overall, there was a 64.7% rise in biodiesel production in the EU to 3,184,000 tonnes. Diester is the largest company producing biodiesel with a capacity of 543,500 tonne/y. By the end of 2007, it plans to raise its capacity with the startup of two new sites with capacities of 200,000 tonne/y and 250,000 tonne/y, respectively. There was an estimated 70.5% rise in EU production of bioethanol in 2005 to 720,927 tonnes and detailed production by member states in tabulated form for 2004 and 2005. Spain is the largest producer with an increase from 202,354 tonnes in 2004 to 240,000 tonnes in 2005. German production rose from 20,000 tonnes to 120,000 tonnes and that in Sweden was up from 56,259 tonnes to 130,160 tonnes. For the whole of the EU, bioethanol production increased from 422,754 tonnes to 720,927 tonnes. Spain’s leading producer is Abengoa with a capacity of around 345,800 tonne/y. In Germany, Sauter has a capacity of 245,000 tonne/y and Südzucker has 205,000 tonne/y. By 2010, the EU is aiming to have 5.75% of all fuels for transport being biofuels. However, it appears that many countries will fail to meet the Biofuels Directive. In 2010, production of biofuel is expected to reach 9.9 M tonnes oil
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equivalent (toe) with the European Commission setting a target of 18 M toe. EUROPOLITICS Environment, 23 Jun 2006, (704), 21 (Europe Information Service sa, Avenue AdolpheLacomble 66, B-1030, Brussels, Belgium. Tel: +32 (0)2 737 77 00. Fax: +32 (0)2 732 66 51. Website: http://www.europolitics.info)
are expected to drive biofuels demand. Observers note that companies need to tap and use processes that utilize various feedstocks to be able to meet the increase in biofuels demand, and to sustain growth. Chemical Week, 19 Jul 2006 (Website: http://www.chemweek.com)
Biofuels industry takes off New biofuels capacities and R&D investments will help the Spanish government successfully implement its €23 bn ($29.4 bn) national renewable energy programme, Plan de Energias Renovables. Repsol YPF and renewable energy firm Acciona are collaborating to build biodiesel plants. Together, the two companies intend to spend €300 M to construct plants in Spain that will have a total biodiesel capacity of over 1 M tonne/y. The project will minimize Spain’s carbon dioxide emissions by 3 M tonne/y, and help the government to reach almost 50% of its renewables target. The plants, which are set to begin production between 1H 2007 and 2H 2009, will produce biodiesel from vegetable oils. Spain’s farmers are expected to commit 200,000300,000 hectares of land for canola and sunflower cultivation for use in the biodiesel plants. Cepsa plans to collaborate with Chesterfield, MO, based bioethanol maker Abengoa Bioenergy in a €42 M programme to construct a 200,000 tonne/y biodiesel plant near Cepsa’s refinery in San Roque, Spain. The proposed plant will also use vegetable oil as raw materials. Cepsa also plans to team up with Bio-Oils Energy on a €40 M programme to construct a 200,000 tonne/y biodiesel unit in Cepsa’s refinery in Palos de la Frontera, Spain. The new plant is set to come online in late 2007. Chemical Week, 11 Jul 2006 (Website: http://www.chemweek.com)
Industrial biotechnology sales take off The share of chemicals derived from bio-based feedstocks in global chemicals sales is expected to climb to 10% or $125 bn by 2010, up from 7% or $77 bn in 2005. Biofuels, pharmaceutical ingredients, polymers, and enzymes are seen as the major growth areas. Government initiatives
Biochem sales to reach $159 bn According to McKinsey and Company, chemicals based on renewable feedstock or produced using fermentation or enzymatic processes will account for 10% of world chemicals sales valued at €125 bn by 2010. Analyst Jens Riese estimated renewable chemical sales at €77 bn in 2005 (7% of total). The products include biofuels, pharmaceutical ingredients, plant extracts, polymers, food and feed ingredients, enzymes, and oleochemicals. The fastest growing sector is biofuels. Capacity for biofuels is expected to double within 5-6 years. World ethanol demand was estimated at 10 bn gallons in 2005. This should grow to 24 bn gallons by 2012. Chemical Market Reporter, 17 Jul 2006 (Website: http://www.chemicalmarketreporter.com)
COMPANY NEWS Albemarle announces record 2Q 2006 results Albemarle Corp reported record 2Q ended Jun 2006 net income of $43.3 M (net income of $32.1 M for 2Q ended Jun 2005), due to strong performance in each of the company’s three business segments and its jvs. The company reported net sales in 2Q 2006 totalling $569 M. Net income for 1H ended Jun 2006 was $77.7 M (net income of $56.4 M for 1H ended Jun 2005) due to strong performance in each of the company’s three business segments. Net sales for 1H 2006 were $1.176 bn. During 2Q 2006: the Polymer Additives segment recorded net sales of $228.6 M and segment income amounted to $39.2 M; the Catalysts segment recorded net sales of $194 M and segment
SEPTEMBER 2006
MARKETS AND BUSINESS Renewable energy: biofuels gaining momentum in the EU Biofuels are becoming more popular as alternative fuels for motor vehicles as the price of oil continues to rise sharply. In 2005, European Union production of biofuels amounted to 3.9 M tonnes, up 65.8% on 2004. A table gives details of production of biodiesel in 2004 and 2005 by individual member states of the EU, together with the difference and growth rate. The largest producer is Germany, increasing from 1,035,000 tonnes in 2004 to 1,669,000 tonnes in 2005, an rise of 61.3%. There was a 121.7% increase in the Czech Republic from 60,000 tonnes to 133,000 tonnes and production in the UK rose by 466.7% from 13,000 tonnes to 73,000 tonnes. Overall, there was a 64.7% rise in biodiesel production in the EU to 3,184,000 tonnes. Diester is the largest company producing biodiesel with a capacity of 543,500 tonne/y. By the end of 2007, it plans to raise its capacity with the startup of two new sites with capacities of 200,000 tonne/y and 250,000 tonne/y, respectively. There was an estimated 70.5% rise in EU production of bioethanol in 2005 to 720,927 tonnes and detailed production by member states in tabulated form for 2004 and 2005. Spain is the largest producer with an increase from 202,354 tonnes in 2004 to 240,000 tonnes in 2005. German production rose from 20,000 tonnes to 120,000 tonnes and that in Sweden was up from 56,259 tonnes to 130,160 tonnes. For the whole of the EU, bioethanol production increased from 422,754 tonnes to 720,927 tonnes. Spain’s leading producer is Abengoa with a capacity of around 345,800 tonne/y. In Germany, Sauter has a capacity of 245,000 tonne/y and Südzucker has 205,000 tonne/y. By 2010, the EU is aiming to have 5.75% of all fuels for transport being biofuels. However, it appears that many countries will fail to meet the Biofuels Directive. In 2010, production of biofuel is expected to reach 9.9 M tonnes oil
2
ON
C ATA LY S T S
equivalent (toe) with the European Commission setting a target of 18 M toe. EUROPOLITICS Environment, 23 Jun 2006, (704), 21 (Europe Information Service sa, Avenue AdolpheLacomble 66, B-1030, Brussels, Belgium. Tel: +32 (0)2 737 77 00. Fax: +32 (0)2 732 66 51. Website: http://www.europolitics.info)
are expected to drive biofuels demand. Observers note that companies need to tap and use processes that utilize various feedstocks to be able to meet the increase in biofuels demand, and to sustain growth. Chemical Week, 19 Jul 2006 (Website: http://www.chemweek.com)
Biofuels industry takes off New biofuels capacities and R&D investments will help the Spanish government successfully implement its €23 bn ($29.4 bn) national renewable energy programme, Plan de Energias Renovables. Repsol YPF and renewable energy firm Acciona are collaborating to build biodiesel plants. Together, the two companies intend to spend €300 M to construct plants in Spain that will have a total biodiesel capacity of over 1 M tonne/y. The project will minimize Spain’s carbon dioxide emissions by 3 M tonne/y, and help the government to reach almost 50% of its renewables target. The plants, which are set to begin production between 1H 2007 and 2H 2009, will produce biodiesel from vegetable oils. Spain’s farmers are expected to commit 200,000300,000 hectares of land for canola and sunflower cultivation for use in the biodiesel plants. Cepsa plans to collaborate with Chesterfield, MO, based bioethanol maker Abengoa Bioenergy in a €42 M programme to construct a 200,000 tonne/y biodiesel plant near Cepsa’s refinery in San Roque, Spain. The proposed plant will also use vegetable oil as raw materials. Cepsa also plans to team up with Bio-Oils Energy on a €40 M programme to construct a 200,000 tonne/y biodiesel unit in Cepsa’s refinery in Palos de la Frontera, Spain. The new plant is set to come online in late 2007. Chemical Week, 11 Jul 2006 (Website: http://www.chemweek.com)
Industrial biotechnology sales take off The share of chemicals derived from bio-based feedstocks in global chemicals sales is expected to climb to 10% or $125 bn by 2010, up from 7% or $77 bn in 2005. Biofuels, pharmaceutical ingredients, polymers, and enzymes are seen as the major growth areas. Government initiatives
Biochem sales to reach $159 bn According to McKinsey and Company, chemicals based on renewable feedstock or produced using fermentation or enzymatic processes will account for 10% of world chemicals sales valued at €125 bn by 2010. Analyst Jens Riese estimated renewable chemical sales at €77 bn in 2005 (7% of total). The products include biofuels, pharmaceutical ingredients, plant extracts, polymers, food and feed ingredients, enzymes, and oleochemicals. The fastest growing sector is biofuels. Capacity for biofuels is expected to double within 5-6 years. World ethanol demand was estimated at 10 bn gallons in 2005. This should grow to 24 bn gallons by 2012. Chemical Market Reporter, 17 Jul 2006 (Website: http://www.chemicalmarketreporter.com)
COMPANY NEWS Albemarle announces record 2Q 2006 results Albemarle Corp reported record 2Q ended Jun 2006 net income of $43.3 M (net income of $32.1 M for 2Q ended Jun 2005), due to strong performance in each of the company’s three business segments and its jvs. The company reported net sales in 2Q 2006 totalling $569 M. Net income for 1H ended Jun 2006 was $77.7 M (net income of $56.4 M for 1H ended Jun 2005) due to strong performance in each of the company’s three business segments. Net sales for 1H 2006 were $1.176 bn. During 2Q 2006: the Polymer Additives segment recorded net sales of $228.6 M and segment income amounted to $39.2 M; the Catalysts segment recorded net sales of $194 M and segment
SEPTEMBER 2006