Tag Archives: green
Palm Oil Declines as Drop in Crude Reduces Appeal of Biofuels
By Ranjeetha Pakiam May 30, 2013 Palm oil declined from a seven-week high as crude oil traded near the lowest price in four weeks, cutting the appeal of vegetable oils as biofuel feedstock. The contract for August delivery fell 1.1 percent to close at 2,372 ringgit ($772) a metric ton on the Bursa Malaysia Derivatives, the biggest decline for the most active futures since April 29. Futures ended at 2,399 ringgit yesterday, the highest level at close since April 8. West Texas Intermediate crude fell to $92.59 a barrel after an industry report showed U.S. stockpiles rose the most in a month. The contract closed at $93.13 yesterday, the lowest since May 1. A record 5.6 million tons of palm was used for fuel in 2012, according to Oil World, a Hamburg-based research company. “The drop in crude prices makes biodiesel less desirable and therefore there’ll be selling pressure on crude palm oil,” said Sim Han Qiang, an analyst at Phillip Futures Pte. Palm oil for physical delivery in June was at 2,350 ringgit today, according to data compiled by Bloomberg. Futures are up 3.8 percent in May, heading for the first monthly gain in four. The decline in soybean oil prices may also damp demand for palm, Sim said. Soybean oil’s premium over palm oil was $297.56 a ton today, compared with an average of $322.89 this year, according to data compiled by Bloomberg. The vegetable oils are substitutes in food and fuel. Soybean oil for July delivery lost 0.3 percent to 48.51 cents a pound on the Chicago Board of Trade, extending a 1.8 percent decline yesterday. Soybeans dropped 0.3 percent to $14.9775 a bushel. Refined palm oil for September delivery fell 0.9 percent to close at 6,144 yuan ($1,002) a ton on the Dalian Commodity Exchange, while soybean oil lost 0.7 percent to 7,484 yuan. To contact the reporter on this story: Ranjeetha Pakiam in Kuala Lumpur at rpakiam@bloomberg.net To contact the editor responsible for this story: Jake Lloyd-Smith at jlloydsmith@bloomberg.net Continue reading
America’s New Energy Export Is…Trees?
By ERICA PETERSON Enlarge image Credit Σ64 / Wikimedia Commons When we talk about exporting energy sources to other countries, the conversation tends to center on fossil fuels. Here in Kentucky, it’s all about coal, and even as the nation cuts back on coal burning, many mines are hoping that burgeoning economies in Asia will help fill in the economic gaps. But the BBC Newshour had an interesting story this morning about another fuel that America is exporting: wood. Trees that are grown in the Southeast are being sent to Europe to fuel biomass boilers, and there’s a debate about whether that process actually helps the European Union further its stated goals of reducing carbon dioxide emissions. The EU has a renewable energy standard, mandating that 20 percent of energy has to come from renewable sources. And biomass–and wood-burning–technically fits that definition. As the BBC reports , some of the trees being turned into wood pellets and exported to the United Kingdom come from tree plantations. These farms mainly raise trees for timber, but the twisted trees that don’t make good boards can be ground up and turned into pellets. But BBC Correspondent Roger Harrabin reports that if the market grows enough, it could attract wood from other places. I drove with environmentalists at dawn to a gorgeous swamp forest in North Carolina. The birdsong was entrancing, and a scarce prothonatory warbler – known as the swamp canary – danced before our TV lens. The wood fuel industry has not advertised that it also takes trees from natural forests like this to boil kettles in Britain – but that’s what happens. Most of the swamp forests in south-east US are in the hands of small private landowners and they face few restrictions on what they do with their assets. And environmentalists argue that the ultimate irony is that a renewable energy standard that was meant to help slow and reduce the effects of climate change could end up contributing to the problem. The British government will shortly announce its rules for the sustainability of “biomass” burning for power. It will set a standard for emissions created from the cutting, drying and shipping and timber but it will make a working assumption that burning the wood has nil CO2 emissions as new trees will suck up the CO2 emitted by wood burning. Critics say this is simplistic as it fails to recognise that it will take maybe 50 years for new trees to absorb the CO2, whilst politicians agree that emissions need to be cut immediately to prevent carbon over-heating the planet. It also fails to account for the fact that in the US the forest stock has been increasing and this process offsets the growth in carbon emissions from homes and industry. Burning American trees in the UK reduces America’s “carbon sink”. Foresters argue that this doesn’t matter much as long as the total biomass sent for export is no greater than the wood used in a single large pulp mill. But these numbers will grow fast. Plus, whenever anything is exported via ocean liner, there are carbon emissions associated with transportation. While Louisville is lacking the trees it needs (and this fact landed the city the #2 spot on Grist’s list of the top 10 American cities most “screwed by climate change”), Kentucky has a lot of forest land. Some groups like the Kentucky Sustainable Energy Alliance say biomass could be one way to help move the state away from coal (but it’s important to note that the term “biomass” could mean anything from mature trees to switchgrass ). Meanwhile, the Mountain Association for Community Economic Development has a program that incentivizes forest owners to maintain their forests by paying them for all of the carbon dioxide their trees sequester. Continue reading
Native Buyers Return To The European Market
News Posted On: 30 May 2013 After several years in which money from struggling Eurozone countries has been invested in ‘safe haven’ or relatively healthy economies’ property markets, native investors have made major purchases in Sweden and Germany. In Germany, the LEG group, which was floated on the stock market in January, bought 2,200 apartments in Germany namely in North Rhine-Westphalia from a group led by Luxembourg-based fund BGP. LEG said it seeks to add a further 8,000 units. The price details of the deal were not disclosed, but North Rhine-Westphalia ‘has the highest population density in Germany, and it’s a place where people rent their homes,’ according to LEG Chief Executive Officer Thomas Hegel. It’s also the German state with the highest GDP, according to German state data. Meanwhile, Swedish property developer Balder expects to buy three major mixed-use assets in Stockholm, valued at SEK815m, or €95m from Fabege, by buying the companies that own them. The purchase will include the 13,700m2 Skeppshandeln 1 hotel, office and retail project which is already fully let though construction is not thought likely to be completed until the second quarter of 2014. ‘The properties have a considerable focus on hotels, stores and housing units,’ said Fabege’s Director of Business Development Klaus Hansen Vikstrom. However, the story may not be as simple as it appears. When LEG was floated in late January this year, it’s possible that it served as a repository for safe haven investors buying company shares rather than directly investing in property and there was debate as to whether the company’s shares were overvalued compared to its peers or in the light of its portfolio. If this were the case to too great an extent, LEG could be showing the way to a new, pan-European property bubble wherein investors from Eurozone countries with struggling economies move their money to safer, more prosperous Euro members like Germany. This would be a reversal of the trend pre-2008 in which small-scale investors from prosperous Euro countries were induced to invest in property in less prosperous ones like Spain and Ireland. The realization that ‘the resourceful rich just move their money to banks in northern Europe and avoid paying,’ in the words of Professor Peter Bofinger, advisor to Angela Merkel, lies behind a drive in Germany to levy a tax against the rich citizens of Europe’s poorer countries, potentially having a restricing effect on the flow of ‘safe haven’ money. Along with Germany, Sweden is one of Europe’s more prosperous economies. The sale of major properties there may be less significant than the fact that the properties themselves are already let before completion. Compare the situation in Dubai, where major skyscraper projects had to be shelved recently because of a lack of lettings. The Swedish situation at least doesn’t seem to be caused by a reversal of the pre-2008 flow of money. Paradoxically though, Sweden tops the list of countries that may be headed for a property crash, according to German bank Commerzbank. ‘The property booms in Sweden and Finland appear to be nearing their end, and we should soon see a price correction,’ the bank said in a statement in April. Written by Les Calvert – overseas property reporter Continue reading




