Biofuel News Digest - January 16

Apologies for the drop off in posts lately. I have been travelling. More on that in a future post. We have a lot of news to catch up on, so let's get to it.

EPA Lowers Fuel Economy Ratings
Apparently those big bold numbers indicating miles per gallon on the dealer invoice are wrong. The EPA will lower them to more realistic ratings when the 2008 cars hit showrooms. Hit particularly hard by this are hybrid vehicles.

Seattle Biodiesel Attracts Funding from Paul Allen
Investors are taking note of the biofuel phenomenon. This article mentions some venture funds including Microsoft co-founder Paul Allen throwing their hats into the biodiesel ring.

Individuals Also Invest in Biofuel Production
Got $25,000? You can own a stake in the fuels of the future. This Iowa plant is being funded by individual investors. The goal is to attract a total of $18 to $25 million in investment. Iowa's soybean farmers may only be acting out of self interest, but this is still an interesting model.

Biofuel Production Said to Compete With Food
This is a New York Times article (so it might be subsription only or not up for very long). Now that biofuels have grown so much, people are noticing the impact this is having on agricultural markets. Some worry that acres devoted to fuel are lost to food. Others argue that US agriculture has spare capacity and that there are substitutes for outputs such as animal feed and corn syrup.

Sugar Prices Feel the Impact of Ethanol
Sugar prices rise as Brazil devotes more of its crop to Ethanol production. Expect a similar trend with feedstocks for biodiesel such as soybeans.