Biocatalysis

Producing fuel ethanol from corn has the problem that food crops are crowded out, putting upward pressure on food prices. Producing any biofuel from cellulose alleviates this problem, using, for example, corn cobs and stalks as the feedstock instead of corn. This is surely the future of biofuel production, but it is useful to put the cost and scale required to develop this technology into perspective.

Genera Energy has opened a 250,000 gallon per year demonstration cellulosic ethanol plant in Vonore, Tennessee that uses switchgrass as the raw material at a cost of $50 million. Now, 250,000 gallons may sound like a lot of ethanol until you consider that at a price of around $1.50 per gallon, it only equates to about $375,000 in sales at market prices. The scale of operation needs to be about 1000 times bigger for this technology to be competitive. Developing technology that operates at this scale is expensive.

Ethanol, and to a lesser extent biodiesel, have been the only biofuels products of note to be offered thus far. Why? For the simple reason that the technology already existed to make these products at a cost that allowed for commercialization without too large a subsidy. But, if one thinks about the ideal biofuel process, there is a much more attractive option being pursued at a number of early-stage biofuels developers.

Imagine a process that converts carbon dioxide–a greenhouse gas!–into a biofuel while growing in a pond or in sea water. This would be biofuels nirvana, and it may not be too far from becoming a reality.

Here are a few companies to watch.

Aurora Biofuels is using a genetically modified algae developed at the University of California at Berkeley to efficiently produce biodiesel using CO2 as the feedstock. The Aurora claims the technology can create biodiesel fuel competitive with $50 per barrel oil.

Synthetic Genomics approach does not use algae, but rather, specially created micro-organisms that are built by redesigning the genome almost form scratch. The ultimate goal is the conversion of carbon dioxide into fuels or commodity chemicals using energy from the sun to drive the process. Craig Venter, of genome-sequencing fame, leads this effort with up to $300 million in funding form Exxon Mobil. That kind of financial support gives Synthetic Genomics a good shot at success.

Solazyme was named the Biofuels Digest “Company of the Year,” ranking number one on their list of the 50 Hottest Biofuels Companies. Solazyme has also announced a near-term focus on launching food products produced by algae, with a food oil similar to olive oil as a lead product. This probably stands a better chance of  near-term commercialization since the prices are about 25 times higher than for a fuel. The hope appears to be that cash flow from a large-volume food product will help fund even larger-volume fuel production.

Sapphire Energy is developing a product the company calls Green Crude. The product is green because it is produced by algae from sunlight and carbon dioxide. If successful, Sapphire’s crude product will be refineable into the three most important fuels in use today: gasoline, diesel, and jet fuel. With more than 100 employees and blue chip venture capital support, Sapphire bears watching.

Compared to bio-ethanol companies, algae companies have been lurking in the shadows, but they may be about ready to pounce.

Biofuels Digest released its 50 Hottest Biofuels Companies for this year and Solazyme is number 1, now well-established as a leader in the use of algae to produce biofuels. Read our  profile of Solazyme from March 22, 2009 here.

Algae has garnered a lot of attention as a biofuels source, but a big economic hurdle is collecting the oil-rich algae from ponds in which they are grown so that they can be processed to extract the fuel. LiveFuels has a novel approach to that problem: have fish eat the algae and recover and process the fish. The tag-line: biomass concentration as nature intended it. One algae expert called this approach “not impossible.” I also find it not unlikely that no funding will not be found from investors who are not unbelieving this not impossible approach.

I love some of the promotional tag lines in the biofuels arena, and the newest one, courtesy of Joule Biotechnologies, is “fuel from thin air.” The Massachusetts-based firm has developed a genetically-engineered microbe that, according to the company, converts carbon dioxide, sunlight, and standard nutrients into ethanol. Joule estimates based on its lab data that the process can produce 25,000 gallons of ethanol for $50 per barrel. A pilot plant to prove this is planned for a yet-to-be-disclosed location in the American Southwest. Hold on to your horses!

Here’s an amusing news item. According to researchers at the Biotechnology Foundation Laboratories at Thomas Jefferson University, tobacco could be a superior biofuel crop. By genetic modification, the oil accumulation in tobacco leaves was increased to 6.8% of dry weight. With tobacco leaf productivity near 1.5 tons per acre, adding the oil in leaves to the oil in tobacco seeds ((approximately 0.24 tons/acre), the total oil yield could increase to as high as .34 tons, or 90 gallons, per acre — 60% higher than oil yields from soybeans.

Biofuels Digest has released its new rankings of biofuels companies. Here are the top 10, many of which have been profiled here in the past:

1 Solazyme,2 Poet, 3 Amyris, 4 BP Biofuels, 5 Sapphire Energy, 6 Coskata, 7 DuPont Danisco, 8 LS9, 9 Verenium, 10 Mascoma.

There were a few new names on the list: BP Biofuels was unranked last year and showed up at number 4 this year. Other newbies were further down the list.  Algae companies were strong this year, along with companies showing ability to scale up production for ethanol. We will take a closer look at some of these players in upcoming posts.

The cover story in the October 19, 2009 Wall Street Journal names 5 technologies that could, if successful, radically change the world energy picture, and next generation biofuels from algae is one of them. I would broaden the category to include designer microorganisms of the type being developed by Synthetic Genomics, but in general, I agree. Converting carbon dioxide into fuels using energy from the sun to drive the process would be a game-changer. Let’s hope it works out.

In a press release yesterday Massachusetts-based Qteros, developer of the Q-microbe “”superbug” (actually Clostridium phytoferrans, but “Q” is much easier to pronounce and type).

The processes uses a material the company calls Recyllose-sewage sludge solids that are high is cellulose. Turning sewage sludge into ethanol offers a big opportunity for Qteros, which is partnering with Israel-based Applied CleanTech to develop the technology. Recyllose is a particularly good type of cellulosic feedstock as it contains very low amounts of lignin, the plant cell wall component that is difficult to degrade. Qteros-ACT scientists claim 120-135 gallons of ethanol per ton of Recyllose, and titers of 9% ethanol currently.

Quoting from the press release: “Our customer is every municipality that has a wastewater treatment plant,” said Jeff Hausthor, Qteros co-founder and senior project manager. “It will provide a value-added product for municipal wastewater plants, thereby making treatment plants much less expensive to run and helping local governments throughout the world with their constrained budgets.”

Israel Biran, ACT’s CEO, added, “It also helps answer the question of what municipalities can do with their sewage sludge, a major challenge now facing every wastewater treatment plant operator.”

There has been a PR blitz over the past 24 hours, and it appears to be well-merited.

Any time an industry gets “hot” as has been the case for biofuels, spokespersons at the companies inevitably search for ways to differentiate their companies, products, and technologies. I’m not talking about hype or distortions, but rather the creative spin—names, words, and phrases—that are coined in an effort to make a company’s offerings stand out and be memorable.

I started thinking about this recently when I ran across a phrase on the web site of Joule Biotechnologies. According to the company’s web site, Joule is developing “SolarFuel^TM liquid energy.” I guess it just wouldn’t sound as impressive if they called it a fuel (and the company is assiduously eschewing the term biofuel). But if the so-called “ liquid energy” is not a fuel, what is it? And, just to be clear, the first “liquid energy” product Joule is aiming for is ethanol. This got me thinking that there must be other examples, and some I found are quite creative.

Below is a listing of some phrases from various biofuels companies, followed by my translation of what the phrase really means.

“Liquid Energy” (Joule Biotechnologies): biofuel such as ethanol

“99.7% pure ethanol” (Coskata): ethanol of similar purity to that made by every other bio-ethanol company, after refining

“Tightly protected Intellectual Property” (various): patents are pending

“Consolidated Bioprocessing Method” (Qteros): Their own particular sequence of bioprocessing steps to produce a biofuel

“The New Oil” (Range Fuels): biofuel (but really ethanol in this case)

“Green Crude” (Sapphire Energy): biofuel

“Pond to Pump” (Live Fuels): making biofuel from algae (I kind of like this one)

No Compromise^TM (Amyris): The trademarked name of Amyris’ new biodiesel product that is more like petroleum-based diesel (I like this one, too!)

If you have some other examples, please post in comments.