We are not crazy: The image above is Greenpeace Argentina's way to protest against the country's efforts to produce soy-based biodiesel. The activist group took a Mercedes ML and a Porsche Cayenne and made them look like bulldozers to illustrate the idea that soy biodiesel destroys native forests and pollutes more than might be expected by most people. The two SUVs featured German flags, because not only these two cars belong to German brands, but because most of Argentina's soy product is exported to the Bundesrepublik.

[Source: Argentinaautoblog (Thanks to Carlos for the tip)]

Before you get too excited by the headline, I should clarify that by "America," I mean South America. And by "South America," I mean Argentina. An editorial in the International Railway Journal strikes an optimistic note on the surge of plans for high speed rail construction and expansion worldwide, focusing particular attention on projects in Argentina, Italy, and China. David Briginshaw, editor-in-chief of the trade publication, is confident that, "These events look set to have a profound impact on the future development of high-speed rail and give it a major boost". He also wisely notes that political considerations will be the biggest obstacle.

This issue of IRJ could easily have been announcing the opening of a high speed rail system in Florida but time and again, those potential projects were canceled . Still, don't cry for me Argentina. Studies continue to work their way through the political machinery in Canada and the United States. Who knows, maybe the February 2010 issue of the IRJ will have good train news for the U.S. One can only hope and contact one's local and federal government representatives.

[Source: International Railway Journal via Carectomy.com]

According to a recent article by El Enfiteuta, soy biodiesel is alive and well in Argentina thanks to artificial hype derived from treating biodiesel and pure soy oil different fiscally. This conclusion appears in a report by the University of Buenos Aires's CESPA (an academic center focused on studies of the country's economy), which focused on the potentials of biofuels in Argentina.

We have already reported on how several Latin American countries are betting hard on biofuels as means of reducing their oil imports, which would surely help their economies. While we all know the story of ethanol in Brazil, Argentina is focusing on biodiesel because it's one of the world's largest soy producers. Argentina is currently producing about 750,000 m³ of biodiesel per year and is expected to reach 2.25 million m³ in the near future. CESPA's report showed that biodiesel might not be such a good business for Argentina; the profit margin is very low and the internal demand is not strong enough to sustain such high production figures.

Therefore, the article postulates that this industry is created for export. And this is where the taxman plays his role. Export tariffs in Argentina vary widely. In the case of pure soy oil, the tariff is 32 percent, whereas it's only 2.5 percent for biodiesel. The CESPA concludes that soy-based biodiesel would not be such a good business if it weren't for these tax exemptions that artificially alter its final potential.

Related:

• Biodiesel furor in Argentina
• Brazil & Argentina at war over biodiesel exports
• ABG POLL: Biodiesel Feedstock

[Source: CESPA via Agroinformacion]

Oil spills are most definitely NOT green news. Unfortunately, they are exactly the opposite. Again, unfortunately, it seems that they are all too common off the coast of Argentina, which is causing problems for the local population of Magellanic penguins. Penguins need to be able to stay waterproof due to the fact that they enter and exit the water in frigid temperatures regularly. When the oil gets on the birds, they no longer have the protection that they need to survive the cold temperatures in which they live. Forty of the birds were rescued from the water and cleaned up. They should be back to their natural habitat "in about 15 days or so."

Hearing news like this, electric cars sound better and better all the time. Plus, if one were able to use solar or wind power, maybe the need to import and export so much oil would be decreased. The shipping and consequent occasional spilling of oil is another reason that locally grown petroleum substitutes like biodiesel are important. Just think of the penguins.

[Source: Live Science]

Argentina and Brazil both have large soy industries which have looked to biodiesel production in recent times to boost revenues and expand their markets. Argentina's government has enthusiastically embraced the market for soy oil based biodiesel by implementing tax and trade incentives that effectively undercut the production costs of Brazil's producers. Current estimates put Argentinean biodiesel production costs at $0.22 per litre compared to $0.50 to produce the same fuel in Brazil. The Brazilian Vegetable Oils Industry Association, are hitting back by sending a trade envoy to Argentina to convince the Argentineans to scale back their policies. Chances are the Brazilian contingent won't meet with much success though because Argentina has clearly made the decision to become a major net biodiesel exporter.

A national biofuel law comes into affect in February in Argentina to promote biofuel exports by imposing a low export tax of five percent on biofuels such as soy-based biodiesel compared to the much higher export tax of 24 percent on crude soy oil. Argentina has its eye on the large biodiesel export markets of Europe and the U.S. but domestic demand is also guaranteed to grow via the Argentinean Biofuels Act which mandates a minimum of five percent biofuels blended into the nation's petrol and diesel fuels by 2010. Brazil has similar legislation in place requiring a minimum of two percent biofuels in domestic diesel fuel by 2008.

Analysis: Biofuels exports are allowing nations with large agricultural sectors to gain a share of the global energy market and the stakes are huge. Expect Brazil to eventually match the Argentinean tax breaks to ensure their farmers share the same opportunity to export biofuels to Europe and the U.S.

Related:

• Remarks by President Bush and President Lula of Brazil on Biofuel Technology
• Bush ready to sign biofuels deal with Brazil, world's largest ethanol producer
• Africa to become the world's biodiesel supplier?

[Source: Cattle Network]