NYTimes, Reuters: Big moves by big money into biofuels from sugar cane
Wednesday, May 27th, 2009
With burning of coal still the biggest bad guy in the greenhouse – and barely anything being done about it worldwide – among the only bright spots in the energy sector for climate change worriers is growing hope for liquid biofuels. Two stories out today suggest that turning plants into fuel may not be entirely such a losing proposition after all. The more common word lately has been that, especially for corn ethanol, biofuel proudction only diverts cropland from food production and is so inefficient it barely makes sense in any case. but maybe, with new processes entering heavy duty industrial RD&D as described in these pieces, that downside won’t be quite so severe.
Reuters‘s Inae Riveras reports from Sao Paulo on major moves there to expand that nation’s enormous cane sugar to ethanol industry into production of biodiesel from the same source. One also learns that one of the companies involved, called Amyris Biotechnologies, already has pilot plants working in Brazil and in California. It uses advanced breeds of yeast and other microbes to create a genuine petroleum-like hydrocarbon, rather than alcohol, from plant sugars. No word in this story whether cellulose is an immediate target as feedstock. Hope so. The reporter should have answered it.
A broader perspective on such biofuels ran last week and also on the Reuters site, under a “GreenBiz.com” flag, in first person by a savvy-sounding reporter named Marc Gunther.
In the NYTimes Business Section today Clifford Krauss reports a complementary story on a partnership between oil giant BP and a little outfit called Verenium. Its goal is to similarly turn cane-derived sugars into liquids that can be stored, piped, and burnt in engines that same as gasoline and diesel. Again, one wants to know more on cellulose question. (the Verenium site, in Grist below, says yes cellulose is a top priority). Most interesting – and appropriate for a business story – Krauss describes the practical, cost-cutting benefits that accrue to small, green-energy startups when they ally themselves with huge, old-line corporations with engineers who know how to build giant, complicated refineries at a cost that leaves room for profit. PLus, one plot of cane for the project is in the US – Louisiana.
Grist for the Mill: Amyris Biotechnologies ; Verenium ;
-CP