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 PLAYERS  IN  THE  ARGOFUEL  INDUSTRY


Palm  oil  is  increasingly  being  used  and  speculated  on  for  fabrication  of  biodiesel.  
Globally,  the  agrofuel  industry  is  a  corporate  alliance  of:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate   interests   groups   are   today   driving   agrofuel   policies   all   over   the   world.   However,   the  
agrofuel  industry  itself  is  the  result  of  an  artificial  market,  created  by  governments  through  biofuel  
targets  and  obligations.  Without  public  incentives  and  subsidies,  most  of  the  agrofuel  industry  would  
collapse  because  it  is  not  commercially  viable.  
 
Large  multinational  agrobusiness  companies    
The  agrobusiness  multinationals  involved  in  the  agrofuel  industry  are  :  
 
 
 
 
 
 
 
 
 
 
 
Biotech  research  companies    
Apart   from   biotech   research   linked   to   agrofuels   being   done  or  funded  by  several  of  the  agrofuel  and  
oil   companies   listed   above,   there   are   also   a   number   of   smaller   biotech   research   and   development  
companies  working  on  agrofuels:  
-­‐  Green  Biologics  Limited  (GBL)  (biobutanol  research);  
-­‐  TMO  Renewables  Ltd  (cellulosic  ethanol  research  involving  genetically  modified  micro-­‐organisms).  

 
 
 
Oil  companies  
 
 
 
 
 
 
 
 
 
 
 
About  NESTE  OIL:  
Neste  Oil  has  three  business  areas:  oil  products,  oil  retail  and  renewable  fuels.  It  produces,  refines  
and  markets  oil  products  and  shipping  and  engineering  services,  as  well  as  licensing  production  
technologies.  Neste  aims  to  be  the  “world's  leading  producer  of  second  generation  biodiesel  fuel.”  
 
From   last   summer   Neste   Oil   has   used   palm   oil   as   the   main   raw   material   of   its   new   biodiesel   fuel.  
Neste's   new   facility   in   Porvoo   on   Finland's   south   coast   produces   170,000   tons   of   biodiesel,   out   of  
200,000  tonnes  of  raw  material,  plant  and  animal  fats.  The  company  says  that  palm  oil  accounts  for  
80%  per  cent  of  the  raw  material.  
 
 “As  a  part  of  the  global  combat  against  climate  change,  the  European  Union  has  set  a  target  for  
biofuels  to  represent  10  percent  of  road  transport  fuel  consumption  by  2020,  a  target  supported  by  
Neste  Oil  and  respected  mainstream  environmental  bodies  including  the  WWF”  
(http://www.nesteoil.com/default.asp?path=1;41;540;1259;1260;7439;9204)  
 
But  palm  oil  biodiesel  is  not  a  solution  to  climate  change.  It  actually  makes  the  problem  worse  if  
rainforests  are  cut  down  to  grow  the  palm  oil  to  fuel  our  cars.  
 
Boosting  output  at  its  plants  in  Finland,  Singapore  and  the  Netherlands  could  make  the  Finnish  
company  the  single  largest  consumer  of  palm  oil  in  the  world,  using  up  1.5m  tons  of  palm  oil  a  year.  
 
Neste  Oil's  expansion  plans  are  a  major  climate  threat  increasing  the  pressure  for  deforestation  in  
Southeast  Asia  and  endangering  species  like  the  orang-­‐utan.  Indonesia  is  the  third  largest  
greenhouse  gas  emitter  in  the  world  with  the  clearing  and  burning  of  rainforests  and  peat  land  in  the  
country  to  build  palm  plantations,  and  Neste  oil  is  becoming  one  of  the  biggest  responsible  of  this  
matter.  
 
Groups  representing  large  landowners  and  plantation  companies    

Scientific  institutions  promoting,  researching  and  developing  agrofuels:  


Scientists  and  scientific  institutes  have  been  playing  a  major  role  in  the  development  and  promotion  
of  agrofuels,  and  second  generation  agrofuel  research  is  one  of  the  main  areas  for  biotech  research  
at  present.  
Many   of   the   companies   listed   above   either   lobby   directly   for   government   support   for   agrofuels,   or  
are   members   of   industry   association   that   do   so   on   their   behalf.   The   National   Farmers   Union  and   the  

 
National   Farmers   Union   of   Scotland   have   been   amongst   the   most   outspoken   lobby   groups   for  
agrofuel   expansion.   Both   are   members   of   the   European   association   of   farmers’   groups   COPA-­‐
COGECA  which  has  strongly  lobbied  for  EU  agrofuel  support.    
A   number   of   companies   involved   in   the   agrofuel   industry   are   also   members   of   European   trade  
association   and   lobby   groups   which   lobby   for   strong   EU   support   for   agrofuels.   Those   include   the  
EuropaBio,   a   European   biotech   lobby   group,   the   European   Biodiesel   Board,   the   European  
Bioethanol   Fuel   Assocation   e-­‐Bio,   the   European   Union   of   Ethanol   Producers   (UEPA),   Coceral,   the  
European   Biomass   Association   (AEBIOM),   of   which   the   UK’s   Renewable   Energy   Association   is   a  
member,  Fediol…  
 
 
New  dedicated  agrofuel  companies    

Apart  from  the  agrobusiness  and  oil  companies  listed  above,  the  following  companies  are  operating  
or  investing  in,  building  or  planning  large  biofuel  refineries:  
 
 
 
 
 
 
 
-­‐   ABENGOA   are   understood   to   be   amongst   the   top   ten   agrofuel   producers   worldwide.   They   are   a  
major  investor  in  second  generation  agrofuel  research  and  have  been  at  the  forefront  of  lobbying  for  
agrofuel  expansion  in  Europe.  
 
-­‐  ENSUS  GROUP  is  owned  by  private  equity  firms  Carlysle  Group  and  Riverstone  Holdings.  
 
-­‐   TESCO   is   currently   the   only   supermarket   which   directly   invests   in   agrofuel   refining,   through   their  
25%  shareholding  in  Greenergy  Fuels  Ltd.  
 
-­‐   GOES   ON   GREEN   a   company   which   is   receiving   most   of   the   funding   from   Al   Tayyar   (a   'clean   tech  
power  and  investment  company'  based  in  Abu  Dhabi)    
 
 
Car  manufacturers  and  airlines
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
DaimlerChrysler  and  Volkswagen,  are  investing  in  agrofuel  production  and/or  research  all  over  the  
world.  Car  manufacturers  which  have  been  actively  promoting  agrofuel  expansion,  through  lobbying  
and   through   promoting   cars   running   on   high   biofuel   blends,   include   Ford,   Peugeot-­‐Citroen,   Porsche,  
Renault,  Saab,  Vauxhall  and  Volvo.    
 
In  the  EU,  lobbying  by  13  car  manufacturers  including  BMW,  DaimlerChrysler,  Ford,  General  Motors  
and   Volkswagen   led   to   the   European   Commission   watering   down   plans   for   higher   fuel   efficiency  
standards  and  proposing  that  part  of  the  standard  could  be  met  through  biofuel  use.  
Virgin   Atlantics,   Boeing   and   Airbus   are   investing   in   research   and   development   of   agrofuels   for  
aviation.  
 
 
Corporate   funders   (including   venture   capitalists,   hedge   funds,   private   banks  
and  development  banks)    
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Banks   with   major   agrofuel   investment   include   the   Barclays   Bank   and   stockbrokers   HSBC,   Numis  
Corporation  and  the  Standard  Chartered  Bank.    
Other  banks  that  provide  significant  agrofuel  investment  include  the    
ABN  AMRO  Bank  (Netherlands),  AXA  (France),  Commerzbank  (Germany),    
Credit  Suisse  (Switzerland),  Deutsche  Bank,  (Germany),  
HSH  Nordbank  AG  (Germany),  Natixis  (France),    
Rabobank  (Netherlands),  Société  Générale  (France),  UBS  (Switzerland).  
Hedge  funds,  private  equity  groups  and  venture  capitalists  have  provided  significant  investment  into  
the  agrofuel  industry  worldwide.    

 
One  of  the  investment  banking  firms  that  assist  with  accessing  capital  for  agrofuel  investments  are  
Matrix  Biofuels  LLP,  a  subsidiary  of  the  Matrix  Group  which  manages  private  equity  and  hedge  funds.  
Other  companies  give  investment  advice  to  agrofuel  firms,  such  as  Alternative  Energy  Finance  and  
Deloitte.    
Unfortunately   at   present   very   little   information   about   the   investors   behind   the   agrofuel   industry   is  
available.