US biodiesel market
The US biodiesel industry will grow to support more than
74,000 jobs throughout the economy by 2015 while creating some
$4 billion in household income, more than doubling current
levels, according to an economic study released by the National
Biodiesel Board (NBB). The report also found that the industry
will grow to generate nearly $1.6 billion in local, state and
federal tax revenues in 2015.
The study, conducted by Cardno ENTRIX, an international
consulting firm that specializes in environment and natural resources
economics, documents the difficulties the industry faced when
the US Congress allowed a key tax incentive to expire in 2010.
It found that the expiration of the tax credit and the
accompanying 42% drop in production resulted in the loss of
nearly 8,900 jobs, a drop in household income of $485 million,
and a reduction in real GDP of $879 million.
But the industry is seeing a sharp turnaround in 2011 with
the tax credit reinstated and the supporting regulatory
framework of the EPAs 2010 Renewable Fuel Standard, which
designated biodiesel as an advanced biofuel. Production jumped 69% in
January and has been steadily climbing since. The study
predicts the industry will support more than 31,000 jobs in
2011, generate income of nearly $1.7 billion to be circulated
throughout the economy, and create more than $3 billion in
Under projected expansion by 2015, that economic
impact would grow even further to supporting more than 74,000
jobs, $4 billion in income, and some $7.3 billion in GDP.
However, the US Congress is still skeptical of the
industrys need for continued tax credits and subsidies.
In mid-June, the US Senate voted to end the ethanol blender credit and ethanol import tariff set to expire
at the end of the year. On the same day, the US House voted to
prevent future allocation of funds for ethanol blender pumps and storage facilities. It will be interesting
see how weakening government support for this industry will
affect its future growth.
A storage tank explosion at Chevrons Pembroke
refinery in southwest
Wales, UK, caused a fire, killing four contractors and
seriously injuring another on June 2. The refinery itself
remained fully operational following the blast, company
officials said. Police representatives said the explosion
occurred amid maintenance work at the refinery,
and that an investigation was underway.
We will take every step possible to determine the
series of events that led to this tragic incident and ensure
that any lessons learned from it will be integrated into the
business and shared with our industry partners, said Greg
Hanggi, the refinerys general manager.
Earlier this year, Chevron agreed to sell the 220,000-bpd
Pembroke refinery as well as other marketing and logistics
assets in the UK and Ireland to Valero for $1.73 billion.
Valero officials said the explosion will not halt the
companys acquisition of the refinery.
Dow Water & Process Solutions has opened its
Global Water Technology Development Center in
Tarragona, Spain. The center is designed to accelerate the
commercialization of Dows technologies that make possible
the production of clean water, officials said. The center was
funded through a $15 million Dow investment, along with grant
subsidies from Spains Ministry of Science and Innovation
for research programs in this area, which is in line with the
Spanish governments commitment to research and
development in the field of sustainable water supplies, the
company said. Dow said that initial research efforts will be
directed to areas such as improving the quality of desalinated
water, minimizing costs and reducing energy consumption.
LyondellBasell signed a deal to purchase
approximately 200 miles of pipeline near Houston from
BP. The pipelines and metering stations comprise a Houston-area
olefins distribution system transporting ethylene and propylene
from Channelview, Texas, to Equistars storage terminal at
Mont Belvieu, Texas, and facilities in Deer Park, La Porte
and the Bayport Industrial District in Pasadena, Texas. The
purchase also includes a natural gas liquids (NGL) feedstock supply line into
The US Department of Health and Human Services has
added eight substances to its report on carcinogens, a
document that identifies chemicals and biological agents that
may put people at increased risk for cancer. The industrial
chemical formaldehyde and a botanical known as aristolochic
acids are listed as known human carcinogens. Six other
substancescaptafol, cobalt-tungsten carbide (in powder or
hard-metal form), certain inhalable glass-wool fibers,
o-nitrotoluene, riddelliine and styreneare added as
substances that are reasonably anticipated to be human
carcinogens. With these additions, the carcinogens report now
includes 240 listings.
AkzoNobel has opened a 7 million
fire-protection laboratory at its Felling site in the
UK, part of a 10 million investment in research,
development and innovation (RD&I) that will create around
40 new jobs. The lab will be operated by the companys
Marine and Protective Coatings business, which supplies
fire-protection coatings used to protect steel structures such
as buildings and oil and gas installations. The global market
is growing rapidly due to increasingly stringent
fire-protection regulations worldwide, with forecasters
expecting demand to double by 2018.
The world pipe market is projected to expand 5.8% per year to
31.5 billion meters in 2015, a mild deceleration
relative to the 20052010 period. This slowdown can be
almost entirely attributed to China, the worlds largest
consumer of pipe. After increasing rapidly from 20002010,
Chinese pipe demand is expected to rise at about the average
worldwide rate through 2015. Advances in North America, Eastern
Europe and Western Europe are expected to accelerate
through 2015, as these regions recover from the global
financial crisis. HP