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Researchers in Spain have demonstrated that they can transform fungus directly into commercial-grade biodiesel.Through a process we admittedly don't pretend to completely understand, the fungus mucor circinelloides is made into ASTM-D6751-spec biodiesel without first having its oils extracted, a process called direct transesterification. For all you home-brew folks, or for those familiar with the process of good, old-fashioned transesterification, this all sounds pretty cool.

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Yesterday, the Spanish Renewable Energies Producers Association (APPA) protested against biodiesel imports from the US into Spain. They claim this imported fuel is subsidized by the US government combined with Spain's policy of not taxing biofuels, locally produced biodiesel cannot compete against the American one.

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Portugal has announced a new tax exemption for national producers to help them being a strong player in the biofuel market. There are no Portuguese companies currently producing ethanol, most of it being imported from Brazil. In order to compete with cheaper sugarcane-produced ethanol, the Portuguese government has announced tax exemptions for corn producers to manufacture bioethanol. Galp, the biggest retailer of oil products in the country has announced that it can only sell Portuguese ethanol

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