This document provides a summary of the April 2014 issue of the NNFCC Market Review, which summarizes the latest news from across the biofuels market. The document discusses recent policy developments in the EU regarding state aid for renewable energy projects. It also summarizes news about the bioethanol, biomethane, advanced biofuels, and events sections of the market review.

1. Welcome to the April 2014 issue of our biofuels market review! Each month we
review the latest news from across the biofuels market. This service is exclusively for
NNFCC members.
Contents
Policy ...............................................................3
Market.............................................................4
Bioethanol .....................................................5
Biomethane...................................................6
Advanced biofuels......................................6
Events ..............................................................7
Price Information ........................................9
Issue Twenty Five
April 2014
NNFCC Market Review | Biofuels

2. NNFCC Market Review, April 2014, Page 2 of 10
Foreword
The EU has been criticised recently for creating energy and climate
policies that cause political instability, insecurity to potential capital
investors and failing to set ambitious targets . It has been further
criticised for developing unrealistic strategies that do not cover the long
capital ROI’s that typically characterize innovative biofuels technologies.
Such an example is Vireol and Ineos Bio that despite their plan to build
fuel biorefineries in the UK finally moved their projects overseas to the
US.
The European Commission has been trying to re-anchor capital
investments in new energy technologies in an attempt to reach its 2020
energy and climate goals. Recently it released the new State Aid
regulations that will come into force in 1 July 2014 running to 2020. The
new guidelines extend the scope of the existing guidelines on aid for
Environmental protection, to the (bio)energy field, in particular to cover
state aid to energy infrastructure projects, generation adequacy measures
and energy intensive users. The new guidelines plan to support projects
in a cautious manner so as not to undermine the development of less
mature technologies and investment in innovation, like advanced
biofuels.
At the same time, the new IPCC report highlighted that estimated ILUC
emissions are “highly uncertain, unobservable, unverifiable, and
dependent on assumed policy, economic contexts, and inputs used in the
modelling (see paragraph 11.13.4). Also it concluded that EU policy-
makers must not ignore the benefits offered by sustainable biofuels, like
EU wheat to ethanol, because EU transport emissions have risen by 36%
since 1990 levels and are now responsible for 26% of Europe’s total GHG
emissions.
Read on for the latest market news.

3. NNFCC Market Review, April 2014, Page 3 of 10
Policy
State aid: Commission adopts new
rules on public support for
environmental protection and energy
The European Commission has adopted new rules
on public support for projects in the field of
environmental protection and energy. The
guidelines will support Member States in reaching
their 2020 climate targets, while addressing the
market distortions that may result from subsidies
granted to renewable energy sources. To this end,
the guidelines promote a gradual move to
market-based support for renewable energy. They
also provide criteria on how Member States can
relieve energy intensive companies that are
particularly exposed to international competition
from charges levied for the support of renewables.
Furthermore, the guidelines include new
provisions on aid to energy infrastructure and
generation capacity to strengthen the internal
energy market and ensure security of supply (see
also MEMO/14/276).
Commission Vice President in charge of
competition policy Joaquín Almunia said:
"It is time for renewables to join the market. The
new guidelines provide a framework for designing
more efficient public support measures that reflect
market conditions, in a gradual and pragmatic
way. Europe should meet its ambitious energy and
climate targets at the least possible cost for
taxpayers and without undue distortions of
competition in the Single Market. This will
contribute to making energy more affordable for
European citizens and companies."
Click here for more information.
Sustainable biofuels done right offer
innumerable benefits to society, says
UN IPCC report
The European Renewable Ethanol Association
(ePURE) welcomes the findings of a UN IPCC
report “Bioenergy and climate change mitigation:
an assessment which is has recently been
released as part of the IPCC 5
th
Assessment
Report. The report confirms that bioenergy
has a massively positive role to play in society
but more research is needed to realise its full
potential. The report concludes that existing
uncertainties about bioenergy should not
preclude society from pursuing beneficial
bioenergy options that are available.
The publication of the IPCC report comes as the
EU considers the future of the EU biofuels policy
within its future climate and energy policy
framework up to 2030. EU policy makers must
not ignore the benefits offered by sustainable
biofuels because transport has few, if any,
alternative routes to decarbonise.
EU transport emissions have risen by 36%
since 1990 levels and are now responsible for
26% of Europe’s total GHG emissions.
Sustainable biofuels are the only cost-effective
tool that is available in the short to medium
term to reduce these transport emissions.
Currently EU-produced ethanol reduces GHG
emissions up to 90% compared to fossil fuels,
and still saves significant GHG emissions
even when scientifically unreliable ILUC emissions
are accounted for.
The IPCC report finds that estimated ILUC
emissions are “highly uncertain, unobservable,
unverifiable, and dependent on assumed policy,
economic contexts, and inputs used in the
modelling”. The report confirms that measures to

4. NNFCC Market Review, April 2014, Page 4 of 10
address ILUC must incorporate the impacts of
ILUC prevention or mitigation strategies,
including the impact of forest protection
measures, policies and investments to improve
agricultural productivity, double cropping, and the
use of degraded and marginal lands. The report
also crucially recognizes that land use emissions
can be reduced through animal feed co-products
of biofuels that substitute the need for protein
crops imports for animal feed production. These
nuances are unfortunately missing from the
current debate about ILUC in Europe.
Click here for more information.
Market
Biofuels face sharp slowdown to 3.2%
annual growth as next-generation fuels
emerge
The 53.2 billion gallon a year (BGY) biofuel
industry is poised for a huge slowdown in capacity
growth, to a 3.2% annual rate from 2013 to 2017 –
reaching 60.4 billion gallons – down from the
19.6% growth seen from 2005 to 2013, according
to Lux Research.
The sharp decline is on account of a significant
industry transition to novel fuels and feedstocks,
to enable long-term growth in the face of
impediments like the food vs. fuel debate and the
blend limits for biodiesel and ethanol. Next-
generation biofuels – such as renewable diesel
and butanol – that can offer higher blends, in
contrast, are not quite mature.
“Next-generation feedstocks like waste oils and
cellulosic biomass are not tied up in the food
supply and could unlock significant economic
advantages, assuming novel conversions can
successfully commercialise,” said Andrew Soare,
Lux Research Senior Analyst and the lead author
of the report titled, “Emerging Feedstocks and
Fuels Spark Biofuel Capacity Expansion through
2017.”
“Meanwhile, next-generation fuels like renewable
diesel will break down current barriers and drive
long-term biofuel capacity expansion,” he added.
To quantify global capacity expansion of biofuels,
Lux Research analysts built a database of over
1,700 biofuel production facilities in 82 countries
with capacity data through 2017, besides
evaluating leading technology providers.
Click here for more information.
BP releases sustainability report
BP has released its 2013 sustainability report,
announcing that it has fulfilled its 2005
commitment to invest $8 billion in alternative
energy by 2015 a full two years early. According to
the report, BP has invested $8.3 million in
alternative energy routes since making that
commitment nearly a decade ago.
However, it’s not clear if BP will continue funding
alternative energy initiatives at recent levels. In a
statement featured in the report, Phil New, CEO of
BP Alternative Energy, said the company has not
made a public commitment on future alternative
energy spending, but said that the commitment
made in 2005 allowed the company to cast a wide
net in search of businesses that could be
financially self-sustaining and a good fit for BP.
Regarding biofuels, the report noted BP is
expanding its biofuels operations in Brazil, where
it produced 492 million liters (129.97 million
gallons) of sugarcane ethanol last year. By early
2015, BP expects to have doubled production

5. NNFCC Market Review, April 2014, Page 5 of 10
capacity at its largest mill, Tropical. The company
also noted that its U.K. based joint venture
Vivergo ramped up operations last year. The
facility in Humberside, which produces wheat-
based ethanol, has an annual capacity of 420
million litres per year.
Within the report, BP also notes it is working to
commercialise advanced biofuels, including
cellulosic fuels.
Click here for more information.
RSB launches simplified certification
process for Bonsucro certified entities
The Roundtable on Sustainable Biomaterials (RSB)
is pleased to announce that Bonsucro certified
operators will now be able to access RSB
certification through a simplified audit process to
demonstrate compliance, therefore saving costs
and time.
An RSB study released today concludes that RSB
and Bonsucro sustainability standards have
significant overlap on most of their requirements.
Supported by the ISEAL Alliance, the comparison
reveals that Bonsucro certified sugarcane could be
de facto considered compliant with most of the
RSB's twelve Principles and Criteria. RSB has
additional requirements for Rural and Social
Development and Food Security.
This collaboration between RSB and Bonsucro will
enhance the development of advanced
biomaterial pathways by increasing the supply of
sustainable sugar products and ethanol material
to biofuel and bioenergy producers.
Click here for more information.
Bioethanol
Vireol opens new US biofuel plant after
struggling for UK finance
Bioethanol producer Vireol has opened a new
plant in the US after mothballing a planned UK
site after investors raised concerns about the risks
posed by policy instability.
The new plant in Hopewell, Virginia, will be the
largest of its type on the east coast of America,
capable of turning corn and grain into 235 million
litres of bioethanol, which can then be blended
with petrol to produce a fuel with lower emissions.
Vireol had earmarked a UK site in Grimsby for the
plant, but found a more favourable economic and
policy environment across the Atlantic after
originally purchasing Hopewell for scrap.
Ged Russell, managing director of Vireol, said the
ongoing debate around changing EU fuel
legislation to incorporate emissions from indirect
land use change (ILUC), had unsettled investors.
After two years of negotiations ministers voted
down the proposal in December and a final
decision on ILUC is now not expected until next
year.
Click here for more information.

6. NNFCC Market Review, April 2014, Page 6 of 10
Biomethane
Gasification plant opens in Sweden to
produce biomethane
The Valmet Corp.-supplied gasification plant at GoBiGas
was inaugurated on March 12.
The Valmet Corporation gasification plant
‘GoBiGas’ (Gothenburg Biomass Gasification
Project) was recently inaugurated in Gothenburg,
Sweden. The plant was commissioned in late 2013
and will produce a highly energetic gas through
the gasification of forest residues and wood
pellets. The produced gas is similar to natural gas
and will primarily be used in the transport sector
with the goal to switch from liquid fossil fuels to
liquefied gaseous biofuels. The new plant is first of
its kind in the world.
Johanna Lindén, Valmet's director of Scandinavia,
energy, said:
"The indirect gasification generates high-energy
gas with high heating value that can be mixed
with natural gas. This makes it possible to replace
a lot of today's fossil transportation fuel by fossil-
free fuel in gas powered vehicles.”
Click here for more information.
Advanced
biofuels
MARAD releases results of renewable
diesel testing
The training ship State of Michigan is owned by MARAD
and operated by the Great Lakes Maritime Academy in
Traverse City, Michigan US; Source: BiomassMag
The U.S. Department of Transportation’s Maritime
Administration (MARAD) announced the results of
biofuel testing completed on board the training
ship State of Michigan. The tests compared
operational, vibration and emission differences
between regular ultralow sulfur diesel (ULSD) and
a 76/33 blend of ULSD and renewable diesel
produced by Amyris Inc.
The study determined that the renewable diesel
blend reduced air emissions without any
significant difference in engine performance, fuel
economy, air emissions, engine vibration,
underwater radiated noise, or material effects on
the engine itself. According to information
released in the MARAD study, testing also
determined that the blended fuel, following seven
months of storage, found there was no
appreciable change in fuel composition or
biological contamination.
Click here for more information.

7. NNFCC Market Review, April 2014, Page 7 of 10
Events
Seaweed for Biofuel on 21 May in
Oban, Scotland
Seaweed for Biofuel is organised by the Algal
Bioenergy Special Interest Group and Innovation
Norway and is aimed at enhancing collaboration
and addressing supply chain challenges around
developing a sustainable and robust algal biofuel
network.
Oleofuels 2014 on 11-12 Jun in
Dusseldorf, Germany
The change of name reflects the fact that the
event will now cover all fuels made from oils &
fats including biodiesel, HVO & bio jet.
The two-day conference will bring together the
leading executives and experts from across the
entire value chain for two days of informative
presentations, interactive discussion & excellent
networking opportunities.
European Biorefining Training School
2014 on 7-10 Jul in Budapest, Hungary
The 3rd Biorefining Training School will be
organized under the Climate-KIC’s European-wide
umbrella with the cooperation of
the founding institutes.
Having realized the importance of
the bioeconomy, the EU is focusing its efforts on
the development of a variety of enabling
technologies and the collection of the necessary
knowledge required to bring biorefineries into the
industrial arena.
16th European Congress on
Biotechnology on 13-16 Jul in
Edinburgh, UK
The European Congress on Biotechnology is the
leading conference for academic and industrial
biotechnologists in Europe organised by the
European Federation of Biotechnology.
Opportunities in Fuels and Chemicals
from Syngas and Methane
Fermentation on 16 Jul in London, UK
Organised by the SCI Science and Enterprise
group and Bio Base NWE, the main theme of the
conference will be gasification of biomass and
wastes to produce synthesis gas (syngas), and
conversion of syngas and methane from a variety
of sources into liquid fuels and chemicals. This
conference will explore the technologies being
developed and their commercial potential.

8. NNFCC Market Review, April 2014, Page 8 of 10
2nd International Conference on Algal
Biorefinery on 27-29 Aug in
Copenhagen, Denmark
This international conference aims to share
research experience on aquatic biomass resources,
both micro-, and macroalgae as a potential source
of food, feed, biochemical, biofuels and
biofertlizers.
The Bioenergy from Forest Conference
on 15-18 Sep in Helsinki, Finland
The Conference will focus on the factors affecting
the future of bioenergy and biobased modern
technologies and business solutions, including
logistic systems, management, total procurement
chains, the effects of the energy markets, the
influence of green marketing and other trends
affecting forestry, agriculture, industry and
climate.
Biofuels International Conference 2014
on 24-25 Sep in Ghent, Belgium
The 7th Biofuels International Conference will
focus on the latest developments in biofuels
policy, international biofuels trading, sustainability,
solutions for first generation producers, progress
in advanced biofuels and information on
feedstock pricing and trends.

9. NNFCC Market Review, April 2014, Page 9 of 10
Price Information
Prices achieved in the last three auctions for RTFCs. The price is given in pence.
Sep 13 Dec 13 Jan 14
Renewable Transport Fuel Obligation (RTFO) certificate 12.15 12.00 10.00
RTFC prices, source www.nfpas-auctions.co.uk
Histocial spot prices of liquid fossil fuels and biofuels. Price is given in $ per barrel.
Prices of Crude oil, diesel, and jet fuel is recorded from: www.indexmundi.com; Price of ethanol from www.neo.ne.gov;
Biodiesel spot prices from http://www.kingsman.com
0
20
40
60
80
100
120
140
160
180
Dec-08 Jul-09 Jan-10 Aug-10 Feb-11 Sep-11 Apr-12 Oct-12 May-13 Nov-13 Jun-14
Liquidfuelspotprice($/bl)
Date
Crude Oil (petroleum), simple average of three spot price; Source: IndexMundi
Diesel - New York Harbor Ultra-Low Sulfur No 2 Diesel Spot Price; Source: IndexMundi
Ethanol Average Rack Prices F.O.B. Omaha, Nebraska
Jet Fuel Spot Price FOB - U.S. Gulf Coast Kerosene ; Source: IndexMundi
FAME 0° FOB ARA; Source: Kingston

10. NNFCC Market Review, April 2014, Page 10 of 10
Credits and Disclaimer
NNFCC Market Review is edited by Dr Efthalia Arvaniti 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
The Bioeconomy Consultants
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
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