Boundless Biofuel Breakthroughs?

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I’ve been very involved in the biofuels business for a number of years both from a policy and production perspective, and there were a couple of very profound announcements this week worthy of comment. However, before discussing them, perhaps it’s worth a quick step back. Most folks think of biofuels like ethanol as “new” energy sources, but nothing could be further from the truth. The original Model T Ford was built to run on ethanol nearly 100 years ago. So, in some sense, when more than a decade ago the legislative focus shifted to renewable fuels, it was a path of least resistance to ramp corn-based ethanol production because the technology was already commercially available.

So, back to the excitement. Lost in the political rhetoric concerning the merits of corn-based ethanol, most pundits overlooked one key issue; there was no viable commercial-scale alternative feedstock. And, the critical feedstock issue has been the cost of the enzymes necessary to break-down the non-corn inputs like switchgrass or other waste products. Yesterday, Novozyme announced a dramatic breakthrough in enzyme costs that can enable cost-comparable production of non-corn ethanol.

New Enzymes Turn Waste Into Fuel

Commercial scale production is set for 2011, and with companies like POET, Sinopec and Praj as investors, there are no shortage of global producers waiting to make good use of the enzymes.

So, while the Novozyme announcement is a conventional alternative to corn, I’ve always been intrigued by algae as a feedstock for renewable fuels. Yes, pond scum. And, the other major announcement was from DARPA concerning algae-based biofuel production. Wait, you don’t know who DARPA is? Personally, I love these guys. They are the top-secret Defense Department laboratory that invented silly things like the Internet (sorry Al Gore, DARPA did that one, not you), GPS and stealth technology. Now, they aren’t altruistically out to solve world problems, just those of the military ilk. So, if a gallon of diesel fuel costs you $431 per gallon in Afghanistan (total supply chain cost), and you need a lot of gallons to support a war, who do you turn to? DARPA of course!

Algae Solve Pentagon Fuel Problem

I’m really excited about this announcement because the commercialization opportunities are immense and the DARPA folks know how to take something from the lab to industry.

For the folks that read my blog, these two announcements hit my key themes of energy independence, free markets and strategic governmental investment; very exciting. In early March, I’ll be looking forward to exploring these initiatives and more at the Wall Street Journal ECO:nomics Conference.

There’s an all-star list of investment, business and governmental attendees who will be engaged in targeted working sessions concerning the green economy, so if there are certain topics you’d like me to pursue, send me a note. I may even brush the dust off my Twitter account while I’m there…

As always, feedback welcome!

Cheers, Matt

Written on Wednesday, 17 February 2010 10:12 by Administrator

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Tagged underbiofuels green fuel green technology alternative energy renewable fuel

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