Sir Richard enters biofuels market

Last week British entrepreneur Richard Branson announced the launch of Virgin Fuels. The new company will invest up to $400 million dollars in renewable energy initiatives over the next three years.

Virgin Fuels’ first deal in the sector is an investment in Cilion (Goshen, California), a company that was formed in June 2006 to build and operate ethanol plants. These plants will be cheaper and greener than standard corn–to–ethanol plants because of their lower fossil fuel demand. Cilion plans to build seven plants by 2009 with a total of 440 million gallons per year capacity.

Sir Richard Branson said: “The new company will make a substantial contribution to meeting Governor Schwarzenegger’s goal calling for California to produce a minimum of 20% of its own biofuels by 2010. But we do not intend to limit ourselves to US biofuels. This is only the beginning of our investment program which will expand to the UK, mainland Europe and other parts of the world.”

UK MPs urge more ambition on bioenergy

The Parliamentary Environment, Food and Rural Affairs Committee in the UK is concerned about developments in bioenergy. In a recent report called ‘Climate change: the role of bioenergy’ the MPs state that biomass heat and fuels are lagging behind in the UK. The Committee is disappointed that the Government failed to properly address the issue of biomass heat in its recent Energy Review. It urges the Government to increase support for biomass, especially for heating purposes and the development of advanced “second generation” biofuels. MPs also highlight the potential for green fuels for aircraft – synthetic kerosene made from biomass.

The Committee concludes that much more effective co-operation between departments is needed if the Government is to achieve its targets. MP Michael Jack said: “The Government has got to show a much greater commitment, coherence and enthusiasm in the way it develops its bioenergy policies. For a nation that prides itself on its international leadership role on the climate change agenda, it’s not acceptable for Britain to lag behind so many other countries in the way that it is embracing bioenergy.”

At present the UK is evaluating its supporting system for renewable electricity. The chance that a new banding system for different renewable energy sources could be introduced already disquiets large bioenergy suppliers. In particular large power plants that are cofiring biomass with fossil fuel have expressed their worries to Reuters press agency. “I do hope the Department of Trade and Industry (DTI) doesn't kill that potential,” said Roy Westwood of EON UK's renewables division.

Huge potential solar power

Greenpeace and EPIA (the European Photovoltaic Industry Association) foresee that solar cells could provide 2 billion people with power. This potential would also create 2 million jobs and reduce CO2 emissions by 350 Mtonnes, at a cost of 113 billion Euros a year by 2025.

Global capacity of PV systems has already passed 5000 Megawatts, while global shipments of PV modules is growing by 40% a year, according to the third ‘Solargeneration’ report. “ In 2006 the solar industry will invest well over 1 billion Euros along the whole value chain”, EPIA president Dr. Winfried Hoffmann says. Investments of this kind are needed to reduce costs of solar power and promote the technology to mainstream energy supply. Both organisations are urging governments to secure these investments with support programmes.

Large prospects for wind energy

One third of the world’s electricity demand in 2050 could be supplied by wind. This is the main conclusion from the ‘Global Wind Energy Outlook 2006’ report, launched yesterday by the Global Wind Energy Council (GWEC) and Greenpeace International.

The report contains an industry blueprint of how to achieve a wind power share of 16.5% by 2020 and 34% by 2050. Wind power could reduce CO2 emissions in 2020 by 1.5 billion tonnes. In addition wind energy is beneficial for the security of energy supply and it has been shown to dampen the high volatility of power prices. The two organisations urge Governments ‘to support wind power development via power market reforms and by cutting down subsidies for fossil fuels and nuclear.’

Wind power has especially experienced major growth in the United States and Europe, with significant growth in developing countries such as China and India. The global market for wind power is expected to have an annual turnover in 2006 of more than €13 billion, and support some 150,000 employees.