NNFCC Market Review        Feedstocks                                            Issue One, April 2012E      ach month we ...
Markets                                               forecast consumption levels. Distilling is one of                   ...
SITA UK win long-term contract to                   The fund, totalling £500,000 over the next 3supply recovered wood to F...
Farm woodland survey reveals size of                the first few days of the month. Since earlywoodfuel resource in the U...
Innovations                                             Aberystwyth scientists make biofuel                               ...
With the support of a $3.2 million grant from         The initiative, led by researchers at thethe US Department of Energy...
Events                                               markets. This provides an excellent                                  ...
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NNFCC market review feedstocks issue one april 2012


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Each month we review the latest announcements and news from across the global crops, wood and wastes industries that supply bio-based markets. This service is exclusively for our business members

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NNFCC market review feedstocks issue one april 2012

  1. 1. NNFCC Market Review Feedstocks Issue One, April 2012E ach month we review the latest projected to grow to 2.62 million tonnes announcements and news from in 2011/2012. This value is 80,000 tonnes across the global crops, wood higher than previous estimates becauseand wastes industries that supply bio- of lower forecasted domestic use. Thebased markets. This service is exclusively surplus is due in part to the shutdown offor our business members. the Ensus ethanol plant, which was meant to consume some 100,000Foreword tonnes of wheat a month, and whose loss had not been "fully offset" byWelcome to the launch issue of our higher-than-expected use of the grainnew market review. Last month we by drinks distillers. Ensus is not expectedheard that the UK‟s biggest biofuels to reopen until at least June.facility, Vivergo Fuels near Hull, willfinally open for business in the next “few Read on to find out more about the UKmonths” according to BP Biofuels Chief market for wheat, as well as other majorExecutive Phil New. Suppliers Frontier crops, wood and waste news.this month delivered the first wheat tothe site and full production is likely to be Highlightsreached in 2013. Page 2 Markets News Round-upThe plant – which is owned by BP andUS chemical giants DuPont – will Page 3 Resource Availability Newseventually turn more than a million Round-uptonnes of locally grown feed wheat into Page 5 Innovations News Round-up420 million litres of bioethanol and500,000 tonnes of animal feed per year. Page 6 Feedstock PricesThe announcement is welcome news as Page 7 Eventsthe UK‟s exportable wheat surplus is NNFCC Market Review, April 2012, Page 1 of 7
  2. 2. Markets forecast consumption levels. Distilling is one of the main growth areas this season, with this sector using more barley, wheat and maize. Wheat continues to be favoured over barley for use in animal feed rations but the mild winter is expected to have influenced total feed demand. Wheat surplus available for export and/or free stock is 2.62 million tonnes (mt). In the last three years, the estimated end-June free stock figure for wheat has ranged between 0.18 and 1.42mt. Barley surplus available for export and/or free stock is 0.79mt. In the last three years, the estimated end-June free stock figure for barley hasUS corn overtakes Brazilian sugarcane ranged between 0.17 and 0.75mt.as largest source of bioethanol in UK Click here for more information.The UK Government have released verifiedstatistics for year three of the Renewable PAS111 waste wood standardTransport Fuel Obligation, 2010/2011. launchedStatistics reveal that the largest proportion of Developed jointly between WRAP and thebiofuel came from used cooking oil (459m Wood Recyclers Association, PAS 111:2012litres, 30 per cent of total biofuel supplied). “Specification for the requirements and testThe most widely reported feedstock for a methods for processing waste wood” is thesingle country for biodiesel was soy from first specification of its kind for waste wood.Argentina (196m litres, 22 per cent of Those wood recyclers that adopt PAS 111 willbiodiesel supplied). The most widely reported be able to advertise that their products arefeedstock for a single country for bioethanol „PAS 111 compliant‟, meaning that potentialwas US corn (156m litres, 25 per cent of customers can be assured that they arebioethanol). This overtook sugarcane from purchasing material of consistent andBrazil (124m litres, 20 per cent of bioethanol verifiable quality.supplied). By increasing confidence amongst end users,The majority of feedstock has been imported; WRAP believe this will drive growth in existing22 per cent of the biofuel was reported as markets of recovered wood. There arecoming from UK feedstocks. 84 per cent of already strong markets for higher gradethe fuel reported as coming from UK recycled wood – in applications includingfeedstocks met environmental sustainability panel board, landscaping and animalstandards. bedding – and PAS 111 will help to expand these. In turn, this should help to divert moreClick here for more information. wood from landfill into recycled products or energy recovery. In 2010, the UK generatedUK grain crops supply and demand 4.1mt of waste wood, of which 2.44mt was recovered – but the remainder was sent tofinely balanced landfill.UK wheat and barley supply and demand Click here for more information.remain finely balanced despite slightly lower NNFCC Market Review, April 2012, Page 2 of 7
  3. 3. SITA UK win long-term contract to The fund, totalling £500,000 over the next 3supply recovered wood to Fife years, is managed by WRAP on behalf of the UK Department of Environment, Food andbiomass power plant Rural Affairs. It will give the private sector, local authorities and social enterprises theRWE npower renewables has awarded economic support for developingleading recycling and resource management demonstration projects to show goodcompany, SITA UK, a long- term deal to practice and encourage the furthersupply recovered wood to its £200 million development of food waste collectionbiomass combined heat and power (CHP) services from businesses in England. It willplant at Fife, Scotland. support greater recycling of food waste by anaerobic digestion and improved provisionThe contract will provide more than 50 per of recycling services to businesses, particularlycent of the feedstock requirements to the to SMEs.49.9 MW biomass CHP facility which iscurrently under construction. The plant is due Collection schemes eligible for the fund areto be commissioned later this year and be those servicing commercial businesses suchfully operational by mid 2013. as restaurants, hotels and catering firms, and public sector organisations including councilClick here for more information. offices and other public sector buildings. Click here for more information.Resource Availability US wood pellet exports on the rise Pellet exports from North America into Europe hit a new record in the fourth quarter of last year. Shipments rose to 0.6mt in the fourth quarter of 2011, which is a sharp increase from the 0.13mt shipped in the first quarter of 2008. Shipments have been on the rise steadily every quarter since then. Over all of last year, wood pellet shipments reach just over 2mt, an almost 300 per cent rise since 2008.Food waste collection infrastructure toget new half a million pound funding In terms of European imports, companies in the Netherlands, the UK and Belgium are theboost biggest consumers with the UK leading the way in regards to the biggest growth inA fund of half a million pounds has been imports.launched to support demonstration projectswhich encourage the collection of food Click here for more information.waste from businesses and public sectorbuildings. NNFCC Market Review, April 2012, Page 3 of 7
  4. 4. Farm woodland survey reveals size of the first few days of the month. Since earlywoodfuel resource in the UK March, settled conditions prevailed with clear warm days and clear cold, often frosty nights. The settled weather enabled farmers toHow much carbon and woodfuel do farm complete cultivations, drilling, spraying andwoodlands contain was the question behind fertiliser applications with few weathera recent Forest Research Survey. induced delays.The woodlands surveyed were variable but Over 80 per cent of spring barley is nowthe average woodland area per farm was 26 drilled, compared to typically 50 per cent athectares. The total woodland biomass per this stage. However, the dry spell has alsofarm averaged 3800 oven dry tonnes (odt) or reminded farmers of the difficulties of the dry90 odt per hectare. The biomass was mainly in spring in 2011 when nitrogen uptake by cropsstemwood (61 per cent), followed by was severely delayed so early applicationsbranchwood (23 per cent) and roundwood are common. Similarly, the mild conditions(16 per cent). The total woodland carbon per have encouraged early incidence of yellowfarm averaged 1833 tonnes, with an average rust in wheat and pollen beetle in oilseedof 45 tonnes of carbon per hectare. rape, which may require early treatment to avoid damage. The dry weather is notMost of the woodlands were mixed affecting crop growth at this stage, butbroadleaves with occasional mixed conifer regular rain will be required through theareas. About two-thirds of the woodlands season to maintain potential.were unthinned and almost all were plantedrather than naturally regenerated. Click here for more information.Click here for more information. US crop condition good and plantingWorld maize production could break progressing wellrecords in 2012/2013 USDA‟s first crop progress report for the 2012/13 season suggests that US planting isAccording to the International Grains Council progressing well and crop condition is good.the world maize crop in 2012/13 is forecast ata record 900mt, up from 864mt in 2011/12. Maize planting has started earlier in someWorld demand is also forecast to rise by 19mt States with, 10 out of 18 States surveyedin 2012/2013 up from 893mt in 2011/12. started compared to four by this point last year, and a five-year average of six States.World wheat crop production is forecast at681mt in 2012/13; down 15mt from 2011/12 Spring wheat planting is also further aheadbut demand is slightly higher in 2012/13 at than last year and the five year average, with683mt. all States surveyed starting to plant the crop. 8 per cent of the total spring wheat area hasClick here for more information. been planted compared to 1 per cent last year and a 2 per cent five-year average. The‘Exceptionally’ dry and warm weather US winter wheat crop condition is good. 58seen in March across UK not currently per cent of the crop is in good to excellentaffecting crop growth condition compared to 37 per cent at the same time last year.Average rainfall across England and Wales inMarch was just over 20mm, mostly falling in Click here for more information. NNFCC Market Review, April 2012, Page 4 of 7
  5. 5. Innovations Aberystwyth scientists make biofuel breakthrough by mapping Miscanthus genetics Scientists in Wales and the United States have joined forces to complete the first genetic map of Miscanthus. It is hoped the breakthrough will make it quicker to develop the crop in future. The collaboration was between the Institute of Biological, Environmental and Rural Sciences (IBERS) at Aberystwyth University and the Californian-based energy crop company, Source: Rothamsted Research Ceres. They hope their results provide a significant breakthrough towards advancingGenetically modified wheat that the production of bioenergy from Miscanthus.repels aphids grown by British Click here for more information.scientists Welsh BEACON biorefining centre toRothamsted Research have engineered acrop of wheat to give off chemicals which help businesses turn locally grownaphids naturally release to warn one another plant crops into commercial productsof imminent danger, with the aim of reducingcrop damage and preventing the spread of The BEACON biorefining centre atdisease. Aberystwyth University‟s Institute of Biological Environmental and Rural Sciences (IBERS), hasIt is believed to be the worlds first GM crop unveiled new research facilities as part of awhich repels insects instead of killing them, £20 million initiative.reducing the chances of the pestsdeveloping immunity to it, say researchers at The new facilities are already enablingRothamsted. businesses to develop new ways of converting crops such as rye grass, oats andAfter successful lab tests the first batches of Miscanthus into products including platformseeds were planted in fields at Rothamsted chemicals, fuels and cosmetics.Research in Harpenden, near St Albans, inMarch and will be allowed to grow Click here for more information.throughout the summer. US programme to make sugarcaneAlthough the crop is purely a proof of and sorghum into oil-producing cropsprinciple and not designed for commercialuse, if it proves effective the scientists running New research aims to convert sugar-richthe project hope to ultimately develop a new crops like sorghum and sugarcane into oil-richaphid-resistant strain of wheat that could be crops. Scientists will suppress flowering insold to farmers. sorghum (except in crops used to produce seeds for propagation) to divert more of itsClick here for more information. energy into oil-production. NNFCC Market Review, April 2012, Page 5 of 7
  6. 6. With the support of a $3.2 million grant from The initiative, led by researchers at thethe US Department of Energy, researchers will University of Illinois, will make use of recenttake the first steps toward engineering two advances in plant biotechnology andnew oil-rich crops. They aim to boost the computer modelling to produce high-natural, oil-producing capabilities of yielding, cold-tolerant, photosyntheticallysugarcane and sorghum, increase the crops efficient crops that can be used in thephotosynthetic power and – in the case of production of biodiesel and jet fuel.sugarcane – enhance the plants coldtolerance so that it can grow in more Click here for more information.northerly climes.Feedstock Prices LIFFE MATIF MATIF MATIF CBOT CBOT CBOT Wheat Wheat Rapeseed Malting Wheat Maize Soybean BarleyDate £/tonne €/tonne €/tonne €/tonne $/tonne $/tonne $/tonneMay 12 171.75 (-) 211.25 (-) 504.00 (-) 256.00 (-) 236.24 (-) 255.51 (-) 525.75 (-)Jul 12 173.25 (-) - - - 238.44 (-) 252.46 (-) 527.13 (-)Aug 12 - 216.75 (-) 486.75 (-) 249.00 (-) - - 523.91 (-)Sep 12 - - - - 243.86 (-) 223.82 (-) 514.73 (-)Nov 12 157.05 (-) 204.75 (-) 480.50 (-) 231.00 (-) - - 507.75 (-)Dec 12 - - - - 251.49 (-) 216.63 (-) -Jan 13 158.55 (-) 204.00 (-) 473.50 (-) 232.00 (-) - - 507.38 (-)Mar 13 161.85 (-) 204.00 (-) 467.50 (-) 234.00 (-) 257.49 (-) 220.18 (-) 501.32 (-)Nov 13 153.00 (-) - - - - - - For details on futures prices see www.hgca.com Arrows indicate rise (↑), unchanged (-) or fall (↓) from previous month. ENDEX Wood Pellets Date €/tonne May 12 130.69 (↓) Jun 12 130.65 (↓) Jul 12 130.28 (-) Q3 12 131.17 (↓) Q4 12 133.53 (↓) Q1 13 135.61 (↓) For details on European wood pellet futures prices see www.apxendex.com Arrows indicate rise (↑), unchanged (-) or fall (↓) from previous month. Wood Pellets (Delivered, Ex-Farm Wheat Straw Ex-Farm Barley Straw 5% VAT), UK (D1000), UK (D1000), UK Date £/tonne £/tonne £/tonne Apr 12 205.00-249.00 (-) 55.00-75.00 (-) 45.00-70.00 (-) For details on UK wood pellet spot prices contact enquiries@nnfcc.co.uk For details on straw spot prices see www.fwi.co.uk Arrows indicate rise (↑), unchanged (-) or fall (↓) from previous month.Other biomass feedstock prices are available upon request, simply contact enquiries@nnfcc.co.uk. NNFCC Market Review, April 2012, Page 6 of 7
  7. 7. Events markets. This provides an excellent opportunity to network and interact with leading industry experts.Life Cycle Assessment Workshops, 16-17 May 2012 in York, UK Sinal Exhibition, 24-25 April 2012 inwww.nnfcc.co.uk/events Chalons-en-Champagne, France www.sinal-exhibition.euTwo workshops have been developed toprovide a basic understanding of LCA and Supported by the "Industries and Agro-how to set about doing one. Resources" Cluster, SIÑAL EXHIBITION focuses on the use of bio resources and crops in non-The first workshop covers the principles of food applications.LCA, requirements, problems and issues. Thesecond provides a „hands on‟ opportunity tolearn to carry out an LCA. The workshops can Cereals, 13-14 June 2012 inbe taken together or separately. Lincolnshire, UK www.cerealsevent.co.ukArgus European Biomass TradingConference, 19-20 April 2012 in Cereals is the leading technical event for the UK arable industry with over 64 hectares ofLondon, UK stands and live demonstrations includingwww.argusmedia.com/events/argus- Crop Plots, Working Cultivations, Sprays andeuropean-biomass-trading-2012 Sprayers, Post-Harvest Technology, Business Area, Potatoes and Renewables.The conference is designed to providedelegates with updates on opportunities andthreats that currently exist within the biomass Credits and Disclaimer NNFCC Market Review is edited by Dr Matthew Aylott for NNFCC members. Feedback is welcome. The Review has been compiled in good faith and NNFCC does not accept responsibility for any inaccuracies or the products or services shown. NNFCC, Biocentre, Phone: +44 (0)1904 435182 York Science Park, Fax: +44 (0)1904 435345 Innovation Way, E: enquiries@nnfcc.co.uk Heslington, York, Web: www.nnfcc.co.uk YO10 5DG. NNFCC Market Review, April 2012, Page 7 of 7