Cobalt Signs Fluor to Design Biobutanol Plants

Cindy Zimmerman

Cobalt Technologies has signed an agreement with engineering firm Fluor Corporation to help design production plants to commercialize biobutanol.

Under the agreement, Fluor will provide engineering consulting services and a broad range of EPCM services for Cobalt’s demonstration and commercial-scale butanol production plants.

“We are very pleased to have Fluor as our strategic partner to help us design the most efficient, lowest cost system for producing our biobutanol,” said Rick Wilson, Ph.D., chief executive officer of Cobalt Technologies. “Fluor’s experience in designing and executing large projects, particularly refining projects, is unmatched in the world. We originally asked Fluor to provide an impartial analysis of our biobutanol production technology. Now, to have them sign a strategic agreement with us, truly validates our vision.”

Cobalt’s technology converts non-food feedstock, such as forest waste and mill residues, into biobutanol. Earlier this year, the company demonstrated the conversion of beetle-killed lodgepole pine into a low-carbon, sustainable biofuel and chemical, which is currently being tested in engines by Colorado State University’s Engines and Energy Conversion Laboratory. In January, Cobalt got the endorsement of California Governor Arnold Schwarzenegger at the launching of a pilot plant in that state. Schwarzenegger said biobutanol will meet California’s Low Carbon Fuels Standard (LCFS), as the company says its technology reduces lifecycle greenhouse gas emissions by up to 90% compared to gasoline.

biobutanol

Lallemand Embarks on New Yeast Project

Joanna Schroeder

Lallemand Ethanol Technology has announced an exclusive partnership with Xylogenics, a bioengineering company, to develop and commercialize genetically enhanced yeasts for first generation ethanol production. Lallemand is one of the leading yeast providers for the ethanol industry.

“Xylogenics is thrilled to be partnering with Lallemand, a global leader in fermentation technology and we are looking forward to bringing our exciting technology to the market,” said Mike Neibler, Xylogenics CEO. “We are confident that our combined strengths will allow us to move quickly to commercialization and make a positive impact on the fuel ethanol industry economics.”

The goal of the program is to use Xylogenics expertise in yeast genomics in cooperation with Lallemand, to engineer a new class of industrial ethanol yeast strains. These enhanced strains will increase fermentation yield, reduce fermentation costs and potentially increase ethanol plant fermentation capacity compared with current commercial strains. This program demonstrates that there is still room to develop technology to improve ethanol production while at the same time decreasing per gallon costs.

Lallemand will focus on process development, manufacturing and commercialization of the new yeast and Xylogenics will receive patent license fees and royalty payments.

Bill Nankervis, President of Lallemand Specialties, Inc. and General Manager of Lallemand Ethanol Technology said of the partnership, “We have been working with Xylogenics for some time and this agreement signals that we are confident that Xylogenics technology offers significant benefits for the fuel ethanol industry. Xylogenics and Lallemand are committed to delivering a yeast that will set a new fermentation performance standard and deliver improved profitability to our customers.”

Ethanol, Ethanol News

SunOpta Reports Strong Second Quarter Sales

Joanna Schroeder

SunOpta, a Canadian-based company that is developing a sugar substitute using ethanol, has reported strong revenues for second quarter. According to company financials, they brought in $235.9 million this quarter, as compared to $216.1 million in second quarter of 2009, a 9.2 percent increase. During this same time frame, SunOpta reported a significant increase in net income on a GAAP bases of $20.5 million or $0.31 per diluted common share versus $1.8 million or $0.03 per diluted common share for the second quarter 2009.

SunOpta BioProcess Inc. (SBI), a subsidiary of SunOpta, is working in the biofuels space to develop additional revenue generating co-products for the cellulosic ethanol industry. Unique to the industry SBI and its partners on working technology that will produce food grade xylitol, a healthy sugar substitute, as well as produce fuel-grade cellulosic ethanol.

Steve Bromley, President and Chief Executive Officer of SunOpta commented, “We are very pleased with our second quarter and year to date results which are indicative of numerous initiatives which have been implemented, centered on improving operating results within our core business segments while at the same time improving our return on assets employed. We continue to focus on these core operating processes and believe that the initiatives are having the expected positive effect on our results.”

Cellulosic, Ethanol

Denton, TX to Have E85 and Biodiesel

According to Pagusus News, the City of Denton Fleet Services Division in Denton, Texas has been awarded a $599,860 grant to install E85 and Biodiesel. The award is part of American Recovery and Reinvestment Act (ARRA) funds by the North Texas Council of Governments (NCTCOG).

The City of Denton will construct and operate a Fuel Island at 1251 South Mayhill Rd. and will carry E85, B20, unleaded, and diesel fuels to fuel 37 alternative fuel vehicles and 18 hybrid city fleet vehicles.

“Because many air quality issues are intricately linked to energy consumption, strategies for increasing energy efficiency often have the dual benefit of reducing operational costs while simultaneously improving air quality,” said Denton Mayor Mark Burroughs. “This Alternative Fuel Station is just the latest initiative taken by the City to continue to do what we can improve our air quality and sustain our environment.”

The new fueling island is slated to open in September 2010.

Biodiesel, E85, Ethanol, Ethanol News, News

Gevo Buys Ethanol Plant for Isobutanol

Cindy Zimmerman

gevoDenver-based chemical and biofuels company Gevo is buying a Minnesota ethanol plant to produce isobutanol.

The company will acquire Agri-Energy’s ethanol production facility in Luverne, Minnesota and will begin mechanical retrofitting of the plant upon closing. Isobutanol production is expected to begin by the first quarter of 2012, but in the meantime, the facility will continue to produce ethanol. Company officials say plant will provide 18 million gallons per year of production capacity for chemicals and fuels.

“This transaction is another important step in achieving our goal of bringing commercial volumes of renewable isobutanol to the market as soon as possible,” said Dr. Patrick Gruber, CEO of Gevo. “The Luverne plant is a very well run facility with a strong operating team. It is a great place to begin our commercialization effort. We expect the facility will be the first among many and want it to be a model project for the future.”

Gevo has developed a proprietary process designed to fit into current ethanol production facilities. The process also enables the production of isobutanol from numerous renewable feedstocks including corn, wheat, sorghum, barley, sugar cane and cellulosic feedstocks when biomass conversion becomes commercially available. Gevo’s integrated fermentation technology (GIFT™) platform consists of two components: a yeast biocatalyst and a separations technology unit that bolts into existing ethanol plants.

“Since its founding in 1998, Agri-Energy has been dedicated to advancing the technology and best practices of the ethanol industry,” said Agri-Energy founding member and Co-op Coordinator David Kolsrud. “We see biobutanol as the next logical step in the industry’s development. We believe isobutanol can be sold into many markets and has product attributes that make it a compelling product for current ethanol producers.”

Read more here.

biobutanol, Ethanol, Ethanol News

Green Fuel Biodiesel Finds Green Party Opposition

John Davis

A political party that claims to back environmentally friendly causes has inexplicably come out against biodiesel, even though the feedstock for the green fuel would actually remove waste from a landfill.

The SF Weekly blog says San Francisco’s Green Party has come out against a proposal to make biodfiesel in the city:

The Examiner reported this morning that a facility that renders bones and fat from slaughtered animals into oil is moving to upgrade its facilities to make biodiesel from animal parts, as well as from used cooking oil from local restaurants. The facility, owned by Darling International, is located in the city’s Backlands industrial area.

While the proposal has the backing of officials at the Port of San Francisco, which runs the Backlands, the San Francisco Green Party is loudly opposing the project. The proposed expansion was also targeted by a lawsuit last year filed by the Bayview Hunters Point Community Advocates.

Eric Brooks, chairman of the Green Party’s sustainability working group, told SF Weekly the idea that biodiesel is environmentally superior to traditional fuels is nonsense.

“Biofuel has got this good image, even with a lot of environmentalists,” Brooks said. “And biofuel is not good.”

I think we really get to the heart of his opposition when we look at his dietary habits:

Said Brooks, “I’m a vegan, and animal-rights person. The first thing that caught my attention was, ‘Wow, we’re going to make fuel out of animals. That can’t be good.'”

No, you’re wrong Mr. Brooks. It CAN be good. Using what would fill up the sewers and landfills as a feedstock for a renewable energy source that actually burns much cleaner than its fossil-fuel cousin is one of those win-win-win situations … unless you’re crazy or dumb … or maybe both.

Biodiesel

Kerry Proposes New Biodiesel Tax Break Renewal Route

John Davis

The renewal of the $1-a-gallon biodiesel tax credit seems to have been left in the doldrums as the U.S. Senate went to August recess without agreement on the number of amendments to the Small Business Bill, which contained a renewal of the incentive.

But Biodiesel Magazine reports that a whole new bill, “The Clean Energy Technology Leadership Act of 2010,” introduced by Sen. John Kerry of Massachusetts, could provide a new path for restoration of the biodiesel tax incentive:

Kerry’s bill will extend the excise tax credit for biodiesel and renewable diesel retroactively for 2010 and through 2012, according to a statement by Kerry’s office on the content of the bill. “While we continue to fight to bring comprehensive energy legislation to the floor of the United States Senate, it’s essential that we take action to start moving in the right direction,” said Kerry. “Providing incentives for clean energy production will drive our economy forward and take us one step closer to reducing our carbon emissions and ending our dependence on foreign oil.”

Also included in the bill are provisions to include algae-based fuels in the cellulosic biofuel tax credit, provide $3.5 billion more in clean renewable energy bonds, and a number of other energy efficiency-based incentives.

I don’t want to sound pessimistic, but we have heard this story before. Lets see if Senate leadership will allow this to go through.

Biodiesel, Government, Legislation

Ethanol Companies Post Strong 2nd Quarter Profits

Joanna Schroeder

Several companies that rely on ethanol as a part of their business have reported strong financial results for the 2nd Quarter. According to The Andersons earning reports, the company’s net income for the 2nd Quarter surpassed the $25 million mark, almost $10 million more than what was reported during the same quarter in 2009. The company attributes much of the gain to their grain and ethanol group which boasted a record $43 million of operating income for the first six months of this year.

“We are pleased with our second quarter performance,” CEO Mike Anderson stated. “The Grain & Ethanol Group led our results with record performance in both the grain and ethanol areas. Our Plant Nutrient Group also had a strong quarter. As I review these results, I am again reminded that our strategy of purposeful diversification allows us to remain a strong and profitable company even when one or more of our business units is under performing,” said Anderson.

Archer Daniels Midland (ADM) also reported strong financials for 2nd Quarter. According to their earnings statements, net earnings increased $388 million to $446 million, and segment operating profit increased $591 million to $799 million from the company’s totals for the same period one year earlier. The Andersons Corn Processing unit’s profit increased $151 million as a result of stronger bioproducts sales.

The company’s rising ethanol profit margins have been the catalyst for the company to increase its ethanol production. At the end of the month, ADM will bring its plant in Cedar Rapids, Iowa online. With the production from the new plant, ADM is expected to become the country’s largest ethanol producer, surpassing POET.

biofuels, Ethanol, Ethanol News

Verenium Reports Positive Second Quarter

Joanna Schroeder

Verenium Corporation announced its financial results for the second quarter of 2010 and the outlook is positive. On the enzyme side, the company reported increased total product revenue by 27 percent for the 2nd Quarter compared to the 2nd Quarter in 2009 and a 15 percent increase in revenue over 1st Quarter sales of this year. In the biofuels space, Verenium is best known for its development of enzymes to produce cellulosic ethanol.

“This has been a transformational quarter for Verenium. The transaction we announced with BP around the sale of our cellulosic biofuels business firmly positions us to focus our capital and human resources on the continued development of a leading industrial biotechnology and commercial enzymes business addressing lucrative, growing markets,” said Carlos A. Riva, President and Chief Executive Officer of Verenium. “I’m pleased with the progress we’ve seen across the business over the last quarter, notably, growing product revenues and continued successful efforts to aggressively manage expenses.”

The company has in fact had a good year. According the company’s financial report, total revenues for the second quarter and six months ended June 30, 2010 were $20.0 million and $33.0 million, respectively, compared to $16.3 million and $30.7 million for the same periods in 2009. Product revenues represented more than 60 percent of total revenues in both periods. They also finalized the sale of their cellulosic biofuels business to BP and their pilot facility located in Jennings, Louisiana, received $4.9 million from the Department of Energy.

Cellulosic, Ethanol, Ethanol News

Book Review – Power Grab

Joanna Schroeder

It’s been a year and a half since President Obama took office and there are definitely mixed emotions on how effective he has or hasn’t been. One area where many people have been critical is with regards to his green policies. One such critic is Christopher Horner, who has written a book with the central theme that Obama’s green polices are the worst thing that has happened to our country over the past two years. Power Grab, How Obama’s Green Policies Will Steal Your Freedom and Bankrupt America, has two major tenets: that climate change is a farce, and that the green policies and programs that are being developed to curb climate change will ruin our lives and our country.

The mood is set at the beginning of the book where Horner lays out what America will be like in 2015, when Obama’s policies begin to take affect. He lays out a country with energy shortages, food shortages and job shortages. He describes a world in which the rise of renewable energy and cap-and-trade sent our jobs oversees, and while America’s wealth is declining, the cost of living is rising.

Horner purports that any it would be one thing if the proposed green measures actually curbed global warming, but, he says, they don’t. He writes, “As I explained in Red, Hot, Lies, no proposal ever tabled would, according to anyone, detectably impact global temperature…” He goes on to say, “The real issue Americans should be concerned with is the outcome of these “green”schemes: the transfer of your liberties and wealth to the state, and the transfer of jobs to other countries.”Read More

book reviews, Environment, politics