Japan Approves New Renewable Energy Feed-In Tariffs

On June 18, Japan's Ministry of Industry approved the implementation of renewable energy feed-in tariffs.  These tariffs, set to last for at least 20 years, are among the highest in the world (see chart below) and they become effective from July onwards. Bloomberg New Energy Finance estimates that Japan's photovoltaic (PV) market alone could be worth at least 10 billion USD, with Japan poised to overtake Italy as the world's second largest solar energy market.

The new Japanese green tariffs require utility companies to purchase electricity from renewable sources, such as wind, solar, biomass, geothermal and different forms of biomass.  Japan's government views this requirement as a positive step towards reducing its historic reliance on nuclear power and thereby mitigate against a potential future "nature+nuclear" national catastrophe a la Fukushima.

Japan only generates about 1% of its energy from renewable sources at present, but analysts predict that the country should unlock at least 30 billion USD in fresh renewable energy investment by means of these new tariffs. It will be interesting to watch how feed-in tariff policies evolve in the USA and other major economies -- much work still needs to be done in order to reduce our global dependence on greenhouse gas emitting fossil fuels.

Cheers -- Jon

ECOSMART-2012 2nd International Forum of Clean Technologies in Kiev Ukraine

From the ECOSMART website (www.ecosmart-ua.com):

"In continuation of the success of the ECOSMART-2011 forum, which Ukrainian Event Awards titled as the best international event in Ukraine for the previous year, ECOSMART-2012 gathers top management of environmentally responsible companies and organizations, as well as owners and managers of “green” business, to create a powerful impetus for sustainable economic development and stimulation the development of new niches in the leading industries of Ukraine, development of high-grade segment of clean technologies in Eastern Europe."

This promises to be another great event this year, so if you haven't already RSVPd and you will be in Kiev during this time period, you should go for it!

Cheers
Jon

Green Energy Firm Raises $12 Million For Renewable Gasoline Venture

Primus Green Energy Inc. (www.primusge.com), a firm that has developed a special process to produce gasoline from biomass and natural gas, recently announced it has finalized a $12 million investment funding by IC Green Energy Ltd. This recent funding adds to $28 million raised by the company since 2007. The company has a Norh Carolina test facility in operation and seeks to commence construction of a commercial production plant in 2013.

The company's proprietary technology takes synthetic gas (or "Syngas") derived from either biomass or natural gas gasification processes, and converts it to gasoline and other usable fuels. Its end products have been independently lab tested to generate the equivalent of 93 octane gasoline.  Primus estimates that its fuel will sell at similar market prices as commercial gasoline once commercial production has begun.

Historically, syngas conversion has been challenging to bring into commercial production due to low efficiency conversion rates. But according to company sources, in the case of Primus's proprietary technology, the conversion  rate can approach 33% which would make commercial production profitable and scalable.

Could this the the future of fuel at the pump? Time will tell! If things keep going on track, the company could consider conducting an IPO by 2014 if market conditions are favorable, according to sources.

Kind regards from Kiev,
Jon