CTI Technology Gives Biodiesel Industry New Life
Mandates, Economy Push Companies to Use Biofuels
Oct 28, 2009
It has entered into a long-term agreement with Dow Chemical Co. to develop projects in Argentina and Latin America.
CTI was established in 2006 to develop technologies for making fuels from vegetables. With a strong company like Dow behind it, CTI will push the biofuels industry forward. For Dow, the agreement is expected to move it into a new field. Branching into biofuels will bring the company additional revenues.
This agreement fulfills Dow’s sustainability goals. Its fourth goal is to address climate change by reducing emissions. Biofuels will do that. Even Dow Jones recognizes that Dow Chemical is working toward a greener environment. It ranked Dow Chemical on its Sustainability Index for the ninth time.
CTI wants to capitalize on Dow’s good fortune and dig into its deep financial pockets to help it achieve its own sustainable goals.
Biofuel Not Just for Chemical Companies
Biofuel still struggling to find a market on the ground is beginning to take off in the air. BioJet Corporation and E85 LLC have finalized agreements to sell 4 million barrels of aviation bio jet fuel. This is a first step in providing bio jet fuel to the aviation industry. The company’s goal is to provide 30 million barrels annually to airlines.
E85 is working to get the supply of fuel into the purchasers of the airlines. It wants to become a significant player in the industry. The way we see it is E85 could be ready to fly in the next few years if it can get some help.
Of course help will come from regulators. The European Union has mandated requirements for all industries to combat climate change. These mandates will apply to 4,000 aviators. EU member airports, including military, not complying with the new law will be banned.
Expect similar legislation to come from Congress. It might not be as severe, but it will have one effect. The companies on the forefront of biofuel manufacturing will capitalize. Airlines will scramble to meet the regulations and buy millions of barrels on new fuel.
Environmental Issues Will Drive Change
Environmental responsibility is becoming more and more important to today’s consumers. Many adults want companies like Chevron to do something different. Today’s children will expect companies to address environmental issues when they are adults because they have been hearing about the environment since birth.
A large segment of the population wants a green economy. Climate change and global warming is in the news and on people’s minds. Changes are coming whether the petroleum companies want it or not. Biofuels is the wave of the future, at least, to take a significant market share. Investing in these cutting edge companies makes sense. Dow knows it. Chevron knows it. BP knows it.
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