BBDS – IEA Report Supports the Reality that Animal Fat Could be the ONLY Cost Effective Biodiesel
BBDS.OB Better Biodiesel Stock GuruProfile
BBDS – Better Biodiesel: Bottom Line – Animal Fat Could be the ONLY Cost Effective Biodiesel. Biodiesel is a wonderful concept and everyone realizes that. Congressional backing, including financial backing, is crucial. But in the end biodiesel is a commodity and cost to produce matters – a lot.
The cost of crops may price non-animal fat biodiesel out of the running eventually and the IEA has made this official.
The International Energy Agency today forecast global biofuel output will double from 2006 levels to 1.75 million barrels a day in 2012. The big problems that the IEA notes is the cost of crop material!
Better Biodiesel uses animal fat NOT crop material. That is, very simply, why they are B-E-T-T-E-R!
In its medium-term oil market report through to 2012, the agency, the energy security watchdog for the Organization for Economic Cooperation and Development, included its second annual report on biofuels.
IEA also raised its 2006 biofuel supply baseline by 79,000 barrels a day to 863,000 barrels a day due to stronger-than-expected growth and more detailed capture of projects.
Still the agency warned while the forecasts showed a “considerable rate of growth” for global biofuel production they were significantly below capacity planned for 2012.
IEA said it maintained a cautious biofuels stance because high crop prices raised doubts over economic viability.
“Many projects…will not see the light of day,” said IEA, adding current economics mostly favors use of crops such as corn, sugar, soybeans, wheat and palm oil for food over fuel.
Technology for significant production of biofuels from other feedstocks isn’t expected by the IEA to come into play by the end of the 2012 outlook period. Thus the agency looks for actual 2012 output of 1.75 million barrels a day to fall short of potential capacity of 2.92 million barrels a day.
IEA forecasts 50% global biofuel supply growth between 2007 and 2009, mostly in the U.S. IEA projects daily U.S. biofuel production to grow from 330,000 barrels in 2006 to 533,000 barrels in 2009, but to then remain steady to 2012.
The agency said U.S. ethanol profit margins should further retreat over the next two years with the high price of corn.
“Recent news reports have indicated that the U.S. is already experiencing a surplus of ethanol,” the report said.
However due to Brazil’s competitive advantage in production costs, agriculture and infrastructure, IEA expects supply growth to continue beyond 2009. Brazil’s daily biofuel output is forecast to rise from 293,000 barrels in 2006 to 421,000 barrels in 2009 and 528,000 barrels in 2012.
The agency expects Europe to maintain its share of half the world’s biodiesel production through 2012, approximately doubling biodiesel output from 2006 to 213,000 barrels a day from 2009. But starting in 2008, IEA looks for strong output growth in Europe’s ethanol output.
IEA forecasts Europe’s overall daily biofuel output at 377,000 barrels by 2009, up from 150,000 barrels in 2006. However daily European output is seen steady from 2009-2012.
The agency said it has the greatest doubts for proposed projects being realized in the Asia-Pacific region. IEA projects only a third of 2012 proposed daily output capacity of 604,000 barrels will be produced.
And about a third of this unrealized production will be in China, as enthusiasm for biofuels is tempered by awareness of growing food and water needs, IEA said.
IEA said while biofuels will still only account for 2% of global oil supplies by 2012, they will account for 13% of volume growth in gasoline and oil/diesel demand near-term.
“This is causing investors to reevaluate the need for incremental refinery capacity,” said IEA.
As biodiesel becomes a mainstream fuels alternative and a commodity, the bottom line will be cost. Better Biodiesel has the competitive edge by using lower priced animal fat and a waterless system.
Source: Better Biodiesel and Dow Jones
Better Biodiesel, Inc.
355 South 1550 West
Spanish Fork, UT 84660
Phone: (801) 798-7576
Email: info@betterbiodiesel.com
Website: www.betterbiodiesel.com
Investor Relations:
Capital Group Communications, Inc.
Anthony Evans / Mark Bernhard
betterbiodiesel@capitalgc.com
(415) 332-7200
About Better Biodiesel: Better Biodiesel has developed proprietary waterless technology that significantly reduces the costs of biodiesel production and environmental impact. A key environmental distinction in Better Biodiesel’s production method is the absence of any caustic chemicals in the catalytic reaction process, which eliminates the washing and evaporation steps necessary under customary biodiesel production processes. This proprietary technology speeds up the production timeline, increases the volume of fuel that can be made within a given time period, and reduces the amount of land needed for the production plant. Better Biodiesel’s initial pilot plant is producing approximately three million gallons per year and has a total footprint of less than 160 square feet. By contrast, several acres are required for a conventional biodiesel facility of the same production capacity. Initial Company estimates indicate that Better Biodiesel can expect to achieve a 20 percent reduction in the cost of producing biodiesel fuel, and a 40 percent reduction in the cost of building its biodiesel plants as compared with conventional production methods and facilities. Better Biodiesel’s objective is to become one of the world’s largest producers of biodiesel. (www.betterbiodiesel.com)
Forward-Looking Statements: This release includes forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey to the public the Company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) BBDS’ ability to manage the future acquisitions and the expansion of operations; (2) BBDS’ ability to obtain contracts with suppliers of raw materials (for our production of biodiesel fuel) and with distributors of our biodiesel fuel product; (3) the risks inherent in the mutual performance such supplier and distributor contracts (including our production performance); and (4) BBDS’ ability to raise necessary financing to execute the Company’s business plans. Disclosure: Pentony Enterprises LLC has not been compensated for profile coverage. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable.
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