BIOFUELS AND RENEWABLES WEEKLY

COMPILED ON WEDNESDAY, 03 AUGUST

BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

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TABLE OF CONTENTS
BIOFUELS:
ITAU BBA SEES RISK LESS CANE THAN UNICA FORECAST BACKERS HOPE TO ADD ETHANOL 'FIX' TO US DEBT PLAN BRAZIL KEEPS 25 PCT ETHANOL CUT IN GASOLINE FOR NOW BRAZIL SEES MORE ETHANOL IMPORTS THIS SEASON US ETHANOL OUTPUT UP, FUTURES AT 5-YEAR HIGHS BRAZIL CANE CRUSH GAINS ON LAST SEASON, OUTLOOK DIM

RENEWABLES :
NESTE OIL SEES RENEWABLES LOSS DEEPENING IN Q3 EDP RENEWABLES H1 NET PROFIT MORE THAN DOUBLES BARCLAYS TO HELP FUND K ROAD'S SOLAR POWER PROJECTS FERRO SEES LOWER SOLAR INSTALLATIONS FOR 2011, SHARES SLUMP POLAND PLANS FREE CARBON PERMITS FOR 16 GW NEW POWER GT SOLAR WINS $55 MLN ORDER FROM ASIA CANADIAN SOLAR EXPANDS INTO INDIA; BAGS 33 MW MODULE SUPPLY DEAL CHINA UNVEILS UNIFIED SOLAR POWER PRICES; SOLAR SHARES UP SUNPOWER, CITI TO FINANCE SOLAR LEASE PROJECTS UK SOLAR PLANTS SOAR AHEAD OF GOVERNMENT TARIFF CUTS

Kingsman Biofuels Data and Summary reports on Reuters from 0#KINGSMAN In conjunction with Kingsman, a leading sugar and biofuels analyst, we are reporting daily sugar, ethanol and biodiesel prices together with regular summary reports on key factors impacting the markets. Access the reports on quote page KINGSMAN with info page on KINGSMAN/INFO and chain of chains on 0#KINGSMAN. The main page can also be accessed from the BIOFUELS speedguide. Product Ethanol Anhydrous 99.3-99.8% Biodiesel Fame 0C CFPP Fame -10C CFPP SME 0/-5C CFPP PME 10/15C CFPP RME -10/-12C CFPP Sugar *KDP RAW FOB *KDP RAW C&F *KDP WHITE FOB Cur/Unit EUR/M3 USD/mT USD/mT USD/mT USD/mT USD/mT USD/mT USD/mT USD/mT Current 627.50 1427.50 1413.00 1428.00 1375.00 1488.00 651.25 692.25 758.00 Previous 627.50 1460.50 1410.00 1436.00 1385.50 1501.00 693.25 734.25 800.25 Update 26Jul11 29Jul11 20May11 29Jul11 29Jul11 29Jul11 02Aug11 02Aug11 02Aug11 RIC <ANHYD-FOBARA> <FAME-FOBARA> <FAME10- FOBARA> <SME-CIFARA> <PME-CIFARA> <RME-FOBARA> <SUG-RFOB-KDP> <SUG-RCNF-KDP> <SUG-WFOB-KDP>

Kingsman issues Sugar Prices in the morning and the Biofuel Prices in the afternoon. For more information Please refer to <KINGSMAN/INFO>

BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

ITAU BBA SEES RISK LESS CANE THAN UNICA FORECAST
Aug 1 (Reuters) - Itau BBA said on Monday it saw risks that centre-south Brazilian sugarcane output, hit by a mix of weather factors and aging plants, could be below the latest forecast by industry group Unica of 533.5 million tonnes in 2011/12. "In the absence of a recovery in the agricultural and agro-industrial yields in the centre-south region, the 2011/12 sugarcane production might be even lower than Unica's estimate of 533.5 million tonnes," it said in a Brazil agribusiness report. It gave no figure. "The risk of a lower crop could trigger a reduction in the ethanol blend in gasoline from the current 25 percent (to 18 or 20 percent) beginning in August." Itau BBA, the wholesale banking arm of Itau Unibanco Banco Multiplo Group, said that even with a lower blend, ethanol imports to Brazil might be needed to rebuild intercrop inventories in the absence of a material reduction in ethanol exports. Analysts, including Unica, have lowered forecasts for centre-south Brazilian cane and sugar output, triggering upward pressure on ICE benchmark raw sugar futures prices to near 5-month highs. ICE October raw sugar futures were up 0.64 cent or 2.2 percent to 30.45 cents a lb on Monday. They hit a 5-month high of 31.68 cents a lb on July 25. "As long as the production downside remains a risk, we believe that sugar and ethanol prices will stay under upward pressure," Itau BBA said. --------------------------------------------------------------------------------Supplies of cane have struggled to keep up with fast-growing ethanol demand in Brazil where millions of flex-fuel cars burn hydrous ethanol in pure form or in any mix with gasoline. A runup in ethanol prices earlier this year raised concerns about inflation. Cane mills have cranked up production of the anhydrous variety of ethanol mixed with gasoline in efforts to persuade the government to maintain the mixture unchanged and avoid the possibility of lower sales. That rise in production has come at the expense of output of hydrous ethanol, making it so expensive in some places that many drivers of flex fuel cars have switched back to using gasoline only. State-controlled energy company Petrobras says it would have to increase imports of gasoline if its ethanol content was reduced, because its own refining capacity is now stretched to the limit until planned new units come online. ---------------------------------------------------------------------------------

INTERVIEW-BRAZIL SEES MORE ETHANOL IMPORTS THIS SEASON

By Roberto Samora SAO PAULO, July 27 (Reuters) - Brazil will expand ethanol imports this year and may also boost gasoline imports to meet booming fuel demand, industry officials said on Wednesday, in another sign of Brazil's growing importance in global fuel markets. Brazil is likely to import a further 250 million liters of anhydrous ethanol by the end of the 2011/12 sugar cane season, on top of 400 million liters brought in so far this season, Antonio de Padua Rodrigues, technical director of cane industry association Unica told Reuters. Cane mills have cranked up production of the biofuel to convince government leaders not to reduce a mandatory mix of 25 percent anhydrous ethanol in Brazil's gasoline in response to rising ethanol costs that fed inflation. Rodrigues said maintaining the one quarter ethanol content in gasoline would help minimize gasoline imports. "The best way to have less need to import gasoline is to substitute (it with ethanol ... The more anhydrous there is in gasoline, the easier it will make things," he said. Ethanol and gasoline graphic ( http://r.reuters.com/daf97r ) Flex-fuel auto sales ( http://link.reuters.com/maj33m )

BACKERS HOPE TO ADD ETHANOL 'FIX' TO US DEBT PLAN

WASHINGTON, July 28 (Reuters) - Backers of a plan to revamp U.S. ethanol subsidies are trying to add the plan to a debt ceiling deal, said Senator Amy Klobuchar, an ethanol supporter, on Thursday. "We're still working on it hard," Klobuchar told reporters. "There is room for change in negotiations." As of Thursday at midday, ethanol was not part of a debt bill offered by Senate Majority Leader Harry Reid and expected to be the Senate alternative to a House debt bill. An ethanol lobbyist also said efforts were under way to add the biofuel language to the debt ceiling package. It may be difficult to get ethanol into the debt bill and prospects for finding another legislative vehicle soon are daunting, said analyst Mark McMinimy of consultants MF Global. A major incentive for ethanol, a 45-cent a gallon excise tax credit, is due to expire on Dec. 31. Ethanol backers say they will accept an early end to the tax break, which would save the government $1.3 billion, in exchange for three years of incentives, estimated at $668 million, to install "blender" pumps and to make ethanol from grass and wood chips rather than food crops. The compromise plan was agreed in early July by Klobuchar, John Thune of South Dakota and Dianne Feinstein of California. Klobuchar and Thune are ethanol backers. Feinstein has tried to eliminate ethanol supports. ---------------------------------------------------------------------------------

Reducing the required mix would force state oil company Petrobras to boost imports of gasoline, the company's chief executive told reporters, a once-rare phenomenon that may become more frequent as demand grows. "If (gasoline) demand rises, whatever the reason, we are going to have to import, because we cannot produce more gasoline in Brazil," CEO Jose Sergio Gabrielli said following a company event in Sao Paulo. "Capacity to increase gasoline production has reached its limit." Government ministers will meet late on Wednesday in the capital Brasilia to discuss whether to reduce gasoline's ethanol content. Regulations allow the government to change the mixture to anywhere between 18 and 25 percent. A booming economy and an expanding fleet of "flex fuel" cars that can run on any mix of ethanol and gasoline have left Brazil struggling to meet its products needs. Expansion of cane crushing capacity has been slow and Petrobras is not slated to open a new refinery until 2013. Further raising gasoline demand this year is the high price of the hydrous variety of ethanol which flex fuel cars can burn in pure form. It is now more expensive than gasoline in some regions, causing many flex car drivers to switch back to the fossil fuel. Imports of ethanol so far this season have mainly been sourced from the United States where the biofuel is produced from corn, and also from Europe, boosting supplies of the fuel limited by a disappointing Brazilian sugar cane harvest.

BRAZIL KEEPS 25 PCT ETHANOL CUT IN GASOLINE FOR NOW

BRASILIA, July 28 (Reuters) - Brazil will maintain its 25 percent ethanol blend in gasoline for now, energy minister Edison Lobao said late on Wednesday, as supplies were seen adequate despite this year's disappointing sugar cane crop. Lobao met with officials on Wednesday night to discuss reducing gasoline's anhydrous ethanol content, to ration expected smaller biofuel supplies and avert a surge in prices in the interharvest period once the sugar cane crop, from which it is produced, ends. "We concluded that the market is supplied, there's no problem. We'll follow closely what happens over the next 30 days," Lobao told reporters after the meeting, adding that another meeting was set for Aug. 30 to evaluate the situation.

BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

Data from the U.S. Energy Information Administration website shows the U.S. exported 351 million liters or 2.22 million barrels of ethanol to Brazil from February to April this year. Brazil's cane season runs from April, when harvesting starts, to March of the following year. ---------------------------------------------------------------------------------

BRAZIL CANE CRUSH GAINS ON LAST SEASON, OUTLOOK DIM

By Peter Murphy BRASILIA, July 26 (Reuters) - Crushing of cane in Brazil and production of sugar and ethanol made from it are catching up with the 2010 season, data from cane industry association Unica showed on Tuesday, but the crop may soon run out of puff. The crush totaled 217.4 million tonnes from the start of the season through July 16. That was 15 percent less than by the same time last season but the gap had narrowed from a lag of 18 percent at the start of July. Sugar output totaled 11.9 million tonnes from the start of the season to July 16, down 15 percent from this time last season and total ethanol output, both hydrous and anhydrous, reached 8.7 billion liters, down 20 percent from a year ago. Earlier this month Unica cut its forecast for the 2011/12 cane crush by 6 percent, citing low yields from aging plants, and some analysts have since issued even lower estimates since then. There were few signs the outlook had changed in Unica's latest crop bulletin in which Unica's technical director, Antonio de Padua Rodrigues, said it was unlikely the sugar content in still-unharvested cane would rise any further, after climbing in July. The total recoverable sugars rose in the first half of July to 136 kg per tonne of cane, up from 133.5 kg in the second half of June, but Rodrigues said the effects of drought last year, recent frost in places and flowering were taking a toll. He said sugar production this year may not be able to close the current 2 million tonne gap with last year's production by the end of the harvest, if the cane's sugar content did not rise. Last year, the center-south produce 33.5 million tonnes of sugar by the end of the crush. Unica data showed a sharp 27 percent rise in anhydrous ethanol production in the first two weeks of July. Brazil's gasoline has a statutory 25 percent anhydrous ethanol content. The government is expected to reduce that percentage in the coming days or weeks possibly to 18 or 20 percent after the cost of the biofuel rose this year due to a cane crop too small to meet demand for both biofuel and sugar. Unica did not explain the jump, which coincided with a 25 percent drop in production of hydrous ethanol that fuels the country's huge fleet of flex-fuel cars, except to say it showed a "commitment" by the sector to serve the domestic anhydrous market. The industry is hostile to the government's plan to cut the anhydrous blend in gasoline and one ethanol trader said the industry had made a concerted effort to up output and persuade officials to leave the blend unchanged. "They're producing more to keep the mixture at 25 percent," the trader, who asked not to be named, said. Ethanol output since the start of the season totaled 8.7 billion liters, down 20 percent from the 10.9 billion liters produced by this time last year. In the first half of July, the center south produced 2.58 million tonnes of sugar, up 2.6 percent from the 2.51 million tonnes produced in the same period in 2010. That early start last year and frequent rain from February through mid-April this year means the sugar crush has been lagging last season's progress, but dry weather since May has helped this crop's harvesting to start to catch up. ---------------------------------------------------------------------------------

US ETHANOL OUTPUT UP, FUTURES AT 5-YEAR HIGHS

By Sam Nelson and Julie Ingwersen CHICAGO, July 27 (Reuters) - U.S. ethanol production rose modestly for a second straight week on improving margins with tight supplies of corn helping ethanol futures hover near a five-year high notched on Tuesday. Corn supplies are forecast by the U.S. Department of Agriculture to be the smallest in 15 years this summer and prices for the animal feed and ethanol feedstock has surged in cash markets, with the new-crop harvest still weeks away. Analysts said even as ethanol margins rebounded from losses last month, plants were unable to churn out more of the fuel additive due to scorching weather that slowed output. The Energy Information Administration said on Wednesday that U.S. ethanol production crept higher in the latest reporting week for a second straight week after slowing at mid-month. Ethanol output totaled 874,000 barrels per day (bpd) for the week ended July 22, up 1,000 bpd over the previous week, the EIA said in its weekly petroleum report. Graph of U.S. weekly ethanol production ( http://r.reuters.com/vuq52s ) "It was not surprising that production was up and it would have been up even more but they (ethanol makers) just weren't able to do it," said Jerrod Kitt, an analyst for The Linn Group. Flooding on the Missouri River has been hampering rail transport of ethanol and corn, a couple of plants ran out of corn and the hot weather slowed ethanol production. "Mechanical production of ethanol is one thing but believe it or not you have a biological factor. The hot weather slowed down the grind, to realize maximum output in a plant the temperature needs to be just right," Kitt said. Ethanol production has turned very profitable following a downturn in returns in June. "Margins are terrific, they've gone from a 5 cents per gallon loss in June to 20 to 30 cents profit now, closer to 30 cents," Kitt said. "Translated to corn prices they were losing 10 to 15 cents per bushel in June and they're making 75 to 80 cents per bushel now." U.S. ethanol stocks fell 273,000 barrels, to 18.87 million barrels. The amount of U.S. corn used for ethanol production was forecast to rise to 5.15 billion bushels in the 2011/12 marketing year, accounting for 38 percent of the projected 2011 U.S. corn harvest. Ethanol futures on the Chicago Board of Trade set back on Wednesday, declining 0.1 cents at $3.056 per gallon after surging to a five-year high on Tuesday at $3.07. "It's supply-side driven. Everyone is looking at the coming tight supply of corn in August and September so they're locking in corn and also locking in ethanol," Kitt said. Some support to ethanol prices also was due to Brazil's ethanol production in July being down about 12 percent from a year ago, Kitt said. There is strong competition for Brazil's cane production due to high sugar prices. Brazil is expected to import a further 250 million liters of anhydrous ethanol from now until the end of the 2011/12 cane season on top of 400 million liters imported so far this season, cane industry association Unica said on Wednesday. U.S. exports of ethanol to Brazil are likely to remain robust. "The U.S. is really the only ethanol supplier right now," Kitt said.

NESTE OIL SEES RENEWABLES LOSS DEEPENING IN Q3

By Terhi Kinnunen HELSINKI, July 28 (Reuters) - Finnish refiner Neste Oil reported a weakerthan-expected second-quarter profit, weighed down by losses at its renewables unit, which the firm forecast to deepen in the third quarter. Neste Oil's shares fell 8.3 pct to 9.28 euros in early trade. Analysts said the results were soft and that some of the firm's outlook comments were gloomy.

BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

"More worrying than the second-quarter results were comments on the renewables unit's third quarter performance and a diesel line four weeks shutdown," said Evli bank analyst Antti Koskivuori. The company repeated that its renewable fuels business is expected to report a operating loss this year and, and that the unit's loss would widen in the third quarter from the 55 million euros reported in the second quarter. It also said its diesel production line 4 at its Porvoo refinery will be shutdown for four weeks in October for maintenance. The Finnish refiner has invested 1.4 billion euros in its renewables business and has two renewable diesel lines in the Finnish town of Porvoo. Its Singapore renewables plant started operations last November and the company is due to start a new renewables plant in Rotterdam in the current quarter. But the firm said renewables sales were insufficient to compensate for higher production costs. Neste's April-June comparable operating profit, excluding inventory and capital gains or losses, rose to 32 million euros ($45.96 million) from 5 million a year ago when it was hurt by major maintenance. That was well below the average forecast of 49 million euros in a Reuters poll of analysts. Quarterly revenue grew 43 percent to 3.67 billion euros, also below the market's forecast of 3.74 billion. Neste Oil's total refining margin in April-June rose to $8.99/bbl from $7.35 a year ago. It said it expected the base oil market to remain strong throughout 2011 and to support its total refining margin. ---------------------------------------------------------------------------------

FERRO SEES LOWER SOLAR INSTALLATIONS FOR 2011, SHARES SLUMP

Aug 2 (Reuters) - Ferro Corp said it expects solar installations for the full year to be about 15 percent lower than in 2010, hurt by a demand slump in the second quarter, sending its shares down as much as 19 percent. "We expect solar power installations to improve, but don't expect this to impact demand until later in the year when customer inventory of solar power modules has been reduced," a company executive said on a conference call with analysts. The chemicals and coatings company said demand for its solar products was down sharply in the second quarter due to lower solar power installations and increased customer inventories. The solar market likely bottomed in the second quarter after pullbacks in subsidies in the No. 2 solar market, Italy, stalled development of projects there this spring, creating an oversupply of solar panels and sparking a more than 20 percent drop in prices. The company also said it expects a slower pace in growth of the U.S. economy and consumer spending to affect its non-solar electronics business. Its electronic materials division accounts for about 32 percent of turnover. On Monday, Cleveland, Ohio-based Ferro posted adjusted earnings of 27 cents a share, whereas analysts expected the company to earn 34 cents a share, according to Thomson Reuters I/B/E/S. "Despite our belief that many investors knew solar would be soft, Ferro will likely come under pressure in the short term given the magnitude of the miss," Credit Suisse analyst John McNulty said in a note to clients. Ferro shares were down 17 percent at $10.74 on Tuesday morning in heavy volume trade on the New York Stock Exchange. They touched a low of $10.42 earlier in a session. ---------------------------------------------------------------------------------

EDP RENEWABLES H1 NET PROFIT MORE THAN DOUBLES

LISBON, July 27 (Reuters) - Portugal's wind power generator EDP Renewables on Wednesday posted a 109 percent rise in first-half net profit, to beat market expectations, after an increase in output and smaller amortisations. EDPR, the world's fourth-largest wind power company and a unit of Energias de Portugal , said its net profit in January-June totaled 90 million euros ($130.3 million). Meanwhile, earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 19 percent to 409 million euros, EDPR said in a statement. Analysts in a Reuters poll had forecast, on average, a net profit of 60 million euros and EBITDA of 408 million euros. The company said it increased the average life span of its assets to 25 years after a techhnical study of wind turbines, which led to a positive impact of 21 million euros on the net profit in the second quarter thanks to lower amortisations. EDPR said earlier this month its power generation rose 27 percent in the first half, boosted by output growth in the United States. ---------------------------------------------------------------------------------

POLAND PLANS FREE CARBON PERMITS FOR 16 GW NEW POWER

By Gabriela Baczynska WARSAW, Aug 2 (Reuters) - Poland will hand free carbon emissions permits to gas and coal-fired power plants to be built through 2020 with a total capacity of 16,000 MW, a government adviser said on Tuesday. Krzysztof Zmijewski, an advisor to the Economy Ministry, added that Poland's renewable energy targets were unrealistically ambitious due to a shortage of capacity in the transmission system. Poland holds the EU's rotating, six-month presidency until the end of the year, and last month blocked an attempt by other member states to deepen the bloc's carbon dioxide (CO2) reduction targets. Under European Union rules power plants in western Europe will have to pay for every tonne of carbon dioxide emissions from 2013, but eastern countries including Poland get more time in a phased approach to help them grow their economies. Zmijewski said Poland's top utility PGE will receive most of the permits for its planned nine new blocs, or installations, while France's GDF will receive the most among foreign investors for its four. "This in total is 15,954 MW of power, including 11 gas blocs, 28 coal ones and one not yet decided on," Zmijewski told Reuters in an interview. "It's 26 plants in total with double blocs in Opole, Dolna Odra, Wloclawek and Pelplin." Warsaw will not hand out all EU allowances (EUAs) for free, expecting to earn 1 billion zlotys ($357 mln) next year from sales of EUAs brought forward from the next, 2013-2020 accounting period of the EU's scheme to fight global warming. A lack of capacity in the transmission system will hinder Poland as it seeks to boost its share of power from renewables to at least 15 percent by 2020 to meet EU goals, said Zmijewski.

BARCLAYS TO HELP FUND K ROAD'S SOLAR POWER PROJECTS

LOS ANGELES, Aug 2 (Reuters) - Solar developer K Road Power Holdings said on Tuesday it has reached a deal with a unit of Barclays Capital in which the investment bank will help fund its solar power plants in the U.S. Southwest. Terms of the deal were not disclosed. But the company said that Barclays Natural Resource Investments would "make a substantial commitment" to fund K Road's portfolio. K Road has 11 solar projects in development, including the 850 megawatt Calico project in California's San Bernardino county. In total, the company said it has nearly 2300 MW in development. In a statement, K Road Managing Partner Gerrit Nicholas said the investment by Barclays Natural Resource Investments "will enable K Road to best access efficient capital sources and accelerate our development plan." K Road is an independent power developer run by Sithe Energies and Goldman Sachs veterans. The company focuses exclusively on renewable energy projects and power infrastructure.

BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

"Polish renewables targets are unrealistic, mainly because the right to connect to the grid is such a rare good (...) as the grid won't take on new connections anyway," he said. Zmijewski added that Poland ought to invest 100 billion euros ($142 billion) to replace ageing plants, upgrade an outdated transmission grid and improve distribution by 2030. This will lead to higher electricity prices to fund the investments, he added. "Today electricity stands at some 50 euros per MWh, while in 2013, with CO2 price seen at 39 euros a tonne, it should stand at around 77 euros per MWh," he said. "The rise will continue beyond 2013, but not as sharply." Most of Poland's power plants are more than 30 years old and the biggest ex-communist EU member must also shut down some 6,500 MW in capacities by 2017 which fail to meet EU pollution regulations. Zmijewski said that amounted to one-fourth of Poland's peak power production -- highlighting the need for the country to add about 1,000 MW in new capacity each year. He added new spending would be on top of what Warsaw will spend to build its first nuclear plant, something officials hope to do over the next decade. Coming up with domestic solutions is important also because the country lacks sufficient capacity to import enough power from abroad, Zmijewski said. "At present we can import up to 100 MW versus 3,000 MW we should be able to," he said. "Unfortunately, there are no chances for cross-border lines by 2015, hence no additional supply from abroad." ---------------------------------------------------------------------------------

CHINA UNVEILS UNIFIED SOLAR POWER PRICES; SOLAR SHARES UP

By Jim Bai and Leonora Walet BEIJING/HONG KONG, Aug 1 (Reuters) - China has set unified benchmark grid feed-in power tariffs for solar projects for the first time ever, a move that will provide clearer guidance for solar power project developers when making investment decisions. The rates, at 1 yuan ($0.16) per kilowatt hour (kWh) for projects approved after July 1, was higher than many of those proposed and accepted by stateowned solar power developers in China's second official tender last year, suggesting they would be welcome news for industry participants. Shares of solar stocks in Hong Kong gained after the announcement, with Polysilicon and solar wafer maker GCL-Poly Energy Holdings gaining 5 percent in morning trade and wafer company Solargiga Energy Holdings rising 3.11 percent, outperforming the overall Hang Seng Index which was up 1.5 percent. The price solar power developers sell to grid operators for projects approved before July 1 and completed by the end of this year will be 1.15 yuan/kWh, the National Development and Reform Commission said in a document published on Monday. For projects which were approved before July 1 and that would not be completed by the year-end, the on-grid price was 1 yuan/kWh, the commission said. But projects in Tibet will continue to enjoy a price of 1.15 yuan/kWh for solar power, regardless of its approval or construction time. Analysts said the move would be positive for solar power developers given a fast falling trend in development costs. "Projects will be economical to develop with these rates given that PV (photovoltaic) prices have fallen significantly in the last many months and solar companies are continually looking for ways to bring down costs," said Keith Li, analyst with CIMB Research. The National Development and Reform Commission set the on-grid tariff for four utility-level solar power stations in Ningxia region at 1.15 yuan/kWh in April 2010, after giving 4 yuan/kWh for output from two pilot projects in 2008. The commission said it would adjust the tariff levels in a timely manner later in accordance with changes in investment costs and technology improvement. For solar projects approved through open tender, the on-grid power prices will be those proposed and accepted by bid winners, which, however, should not be higher than benchmark rates. China, the world's top energy user and carbon emitter, is eager to speed up development of clean energy and reduce its dependence on traditional fossil fuels, especially coal. China had 700 megawatts of solar power generating capacity at the end of 2010, the National Energy Administration said. The government has set a target to build more than 5 gigawatts of new solar power plants in the five years through 2015. ---------------------------------------------------------------------------------

GT SOLAR WINS $55 MLN ORDER FROM ASIA

Aug 2 (Reuters) - Solar and LED equipment maker GT Solar International Inc said it received an order worth $55.1 million from a new customer in Asia for polysilicon production equipment. The order is included in the company's backlog for the first quarter of 2012, which ended on July 2, 2011, the Merrimack, New Hampshire-based company said. GT Solar shares were trading up 2 percent before the bell on Tuesday. They have shed about 21 percent of their value after touching a life-high on July 5, when the company bagged an order worth $82 million. In June, GT Solar received its largest ever order -- worth $460.4 million -from a Chinese customer for its furnaces used in sapphire production. In May, the company had said it expected to book a majority of its new orders in the second quarter and upped its earnings, revenue and margin outlook for fiscal 2012. ---------------------------------------------------------------------------------

CANADIAN SOLAR EXPANDS INTO INDIA; BAGS 33 MW MODULE SUPPLY DEAL

Aug 1 (Reuters) - Solar panel maker Canadian Solar Inc said it signed a sales agreement with Indian company Cirus Solar Systems Pvt Ltd to deliver 33 MW (megawatt) of solar modules, marking its foray into India. Cirus, which is a Hyderabad-based company, provides turnkey solutions for solar power projects. The modules will be utilized in a government-sponsored solar park in Gujarat, which will be completed by December this year. Canadian Solar is expected to deliver 33 MW of solar modules in the third and fourth quarters, Canadian Solar, which operates mainly in China, said. Ontario, Canada Canadian Solar shares closed at $8.77 on Friday on Nasdaq.

SUNPOWER, CITI TO FINANCE SOLAR LEASE PROJECTS

July 28 (Reuters) - SunPower Corp and Citigroup have formed a new fund of $105 million to enable the solar panel maker extend its lease to customers in eight states, the companies said. A solar lease is a financing option that provides the use of a solar equipment in exchange for a monthly lease payment. Citi is contributing $80 million to the fund that will expand the lease option's reach in Massachusetts, Arizona, California, Colorado, Hawaii, New Jersey, New York and Pennsylvania. San Jose, California-based SunPower -majority owned by French energy company Total -- said earlier this week it was addressing a weakened Italian market by reallocating sales toward less profitable residential and commercial systems, where demand is greater.

BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

UK SOLAR PLANTS SOAR AHEAD OF GOVERNMENT TARIFF CUTS
LONDON, July 28 (Reuters) - British solar power capacity rose by more than 50 percent in the three months to June as developers scrambled to finish projects before lower government support tariffs kick in next month, energy ministry data showed on Thursday. Installed capacity for photovoltaic plants rose by 56 percent to 121.6 megawatts (MW) between March and June and grew more than eighteenfold in one year. The government went ahead last month with an early support tariff cut for solar installations bigger than 50 kilowatts (KW), saying too many large commercial plants would absorb government money destined for smaller household and community projects. Lower tariffs will apply from Aug. 1, leaving solar plant developers only a few days to complete large projects to still benefit from higher tariffs. Earlier this month, two of Britain's largest solar plants were connected to the power grid in Cornwall, the country's sunniest region. "While it's been disappointing the government has decided not to support the large-scale solar sector going forward, the solar farms developed this summer will play a critical role in the supply of green energy in the UK," said Conor McGuigan, head of planning at Lightsource Renewable Energy, which helped build a 1.4 MW solar plant near Truro. Installed capacity for anaerobic digestion (AD), a process whereby organic material is used to produce power, also jumped in the second quarter, nearly trebling to 177 KW, government data showed. Feed-in tariffs for AD will also change from Aug. 1, but subsidies will rise instead of fall by around 2 pence per kilowatt-hour for plants up to 250 KW, after the government noticed small uptake.
M/S Turanor Planet Solar, a solar-powered boat, is docked for a welcoming ceremony at the Philippine Navy headquarters in Manila July 27, 2011. The M/S Turanor Planet Solar is powered exclusively by 38,000 of SunPower's high-efficiency Maxeon solar cells. The multihulled catamaran is in Manila in its continuing voyage since September 27, 2010 from Monaco in an attempt to circumnavigate the world using only solar power, according to a Planet Solar official. REUTERS/Romeo Ranoco

KEY DATA CODES Main Biofuel speed guide EU Biodiesel Ref/Margins (EUR/mT) EU Biodiesel Ref/Margins (US$/mT) EU Biodiesel Crush/Margins WLD Methanol Prices

CODE <BIOFUELS> <BIOF/MARGIN> <BIOD/MARGIN> <CRUSH/MARGIN> <METHANOL/MTHX>

Source: Reuters Pictures

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BIOFUELS AND RENEWABLES WEEKLY Wednesday, 03 August 2011

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