Biofuels Digest, BIO Launch Spring 2011 Bioenergy Business Outlook Survey

Biofuels Digest and the Biotechnology Industry Organization (BIO) invite the industry to take part in the Spring 2011 Bioenergy Business Outlook Survey.

The survey examines growth expectations and opportunities from a company, national and organizational point of view. It also examines the role of research, government policy, finance, and research and market partners in creating opportunities or barriers to the growth of green jobs, energy security and reductions in greenhouse gas emissions.

The survey is open to organizations in all sectors of the industry – including producers, research and teaching organizations, associations, equipment suppliers, offtake partners and suppliers of services to the industry.

Respondents to the 21 question survey will receive a detailed summary of the survey’s findings and commentary on trends from the Biofuels Digest editorial team. Summarized results will be published in Biofuels Digest, but the customized, in-depth summary will be available only to respondents.

The Winter 2010 Bioenergy Business Outlook Survey conducted in December drew responses from companies representing an estimated 4,200 green jobs and more than $3 billion in annual sales. That survey showed that 80 percent of bioenergy executives were more optimistic both about their organization’s prospects for growth and industry growth, than 12 months prior. It also showed that confidence about industry growth prospects had jumped 11 percentage points in the final quarter of 2010.

Follow this link to go straight to the 2011 Spring Bioenergy Business Outlook Survey.

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Pacific Rim Summit Focuses on Drop In Fuels for Military

BIO’s Pacific Rim Summit came to a close on Tuesday, but not before giving attendees a preview of what the industry expects to be two of the hottest trends for 2011, as recorded in a recent BIO/Biofuels Digest poll.

Department of Defense interest in biofuels is expected to increase, due to the national security implications of reliance on oil. As Chris Tindal, director of Operational Energy for the U.S. Navy, explained to attendees of the Summit, “While the Department of the Navy is a significant consumer of fuel, neither DoN nor DoD can affect the price of oil. Therefore, both are at the mercy of the market – both the stability of supplies and fluctuations in price.”

Tindal noted that the DoD used 119 million barrels of petroleum in FY08. The Blue Navy used 29.4 million barrels (not including Marine Corps). And the airline industry and the Department of Defense collectively consume 1.5 million barrels of jet fuel per day. The Navy has set a goal of replacing 50 percent of petroleum in the commercial fleet by 2015.

Tindal also noted that the Defense Energy Support Center and the Air Transport Association of America signed an Alternative Fuels Pact on March 19, 2010. The pact sets shared goals of spurring the development and deployment of commercially viable and environmentally friendly alternative aviation fuels.

Commercialization of Bioproducts
Paul Bryan, Biomass Program manager at the Department of Energy, gave some detail behind the second expected trend for 2011, that attention will be given to bioproducts and renewable chemicals in addition to biofuels. Bryan emphasized that we need to “develop technologies and supply chains to replace the whole barrel and all products made from crude today.” Because so many products are made from each barrel of petroleum, and biofuels displace a portion of each barrel, oil refineries have no incentive to make a shift.

If we reduce total petroleum usage as a percentage of one market, we need to think about how that impacts other markets. The most obvious issue is that we have to replace diesel and jet in proportion to gasoline, since their combined volume is approximately three-quarters that of gasoline, and their markets are projected to grow significantly faster than that for gasoline. But other products are important, too. The largest chunk of the ‘other products’ in the barrel is the petrochemical industry, virtually all of which is based on crude oil and natural gas.

Odd Coalition Warns Capitol Hill About Synthetic Biology

Friends of the Earth joined forces today with the University of North Dakota’s Energy and Environmental Research Center, a well-known advocate of clean coal technology, to present a new report on Synthetic Biology to Congressional staffers. While the report specifically vilifies the Biotechnology Industry Organization (BIO), representatives of BIO, including myself, were physically barred from attending the presentation.
The report contains a great deal of factual information about progress in synthetic biology and algae research, along with an accurate depiction of many groups’ and countries’ shared vision for a bioeconomy. But unfortunately, the information is garbled within an anti-corporate, anti-science and anti-biotech agenda, coupled with a failure to distinguish between technologies that are in use today and merely theoretical discussions at university labs.

Final Notes from BIO’s World Congress

On June 29 at BIO’s World Congress, Steen Riisgaard, CEO of Novozymes, and Stephen Tanda, Board Member of Royal DSM N.V., released a report from the World Economic Forum on The Future of Industrial Biorefineries. The report says that a biorefinery value chain could create revenue for agricultural inputs ($15 billion US), for biomass production ($89 billion), for biomass trading ($30 billion), for biorefining inputs ($10 billion), for biorefining fuels ($80 billion), for bioplastics ($6 billion) and for biomass power and heat ($65 billion) by 2020.

You can download and listen to the press conference Release of report on The Future of Industrial Biorefineries.

The highlight of the final day of the World Congress was a debate between Princeton Visiting Scholar Tim Searchinger and MSU Professor Bruce Dale, moderated by Univ. of Minnesota’s John Sheehan. Sheehan sought to explore both the strongest and weakest parts of the arguments for and against including an indirect land use penalty in the carbon lifecycle of biofuels and bioenergy. For him, the central question in the debate is whether or not the world is running out of land to use — for all purposes, not just agriculture — meaning that any new use, such as biofuels, inevitably causes a shift of use somewhere else.

For Searchinger, the central point is that the traditional lifecycle of biofuels and biomass energy accounts a credit for using carbon stored in crops and trees. Bioenergy, he argues, should only get credit for new sources of carbon that it creates or for using carbon that would have decayed and entered the atmosphere anyway, but never for carbon that is already stored.

Dale took an optimistic view that a switch to bioenergy — and away from petroleum — would spur the creation of additional carbon stores. This could be accomplished through increased productivity and yield on the same amount of land, for instance, and through regrowing of crops and biomass sources so that the credit given to bioenergy is repaid quickly.

More from the World Congress in Washington

Day two of BIO’s World Congress on Industrial Biotech brought more announcements from Genomatica and BIO itself, and day three promises exciting news from Ceres — The Energy Crop Company, according to sources.

Genomatica successfully scaled its first commercial product — 1,4 butanediol (BDO), a product with a $3 billion market used to make spandex, automotive plastics, running shoes, etc. — to pilot scale, running multiple successful batches of 3,000 liters. Genomatica uses computer aided analysis, modeling and simulation to design highly engineered microbes and has a vision that microbial productivity will increase the way chip memory did for computers.

Ceres has developed a new plant trait that improves salt-tolerance for energy grasses, including sorghum, miscanthus and switchgrass. Researchers tested the effects of very high salt concentrations and seawater from the Pacific Ocean, which contains mixtures of salts in high-concentration, on improved energy grass varieties growing in greenhouses. “Soils containing salt and other growth-limiting substances restrict crop production in many locations in the world. This genetic breakthrough provides new opportunities to overcome the effects of salt,” said Flavell. In food crops, Ceres has confirmed the trait in rice to date and is preparing additional testing in others.

During the lunch plenary session on Tuesday, Raoul Oberman of McKinsey & Co. released the results of a survey of BIO member companies on the future of the industry. Notably, the results included responses to the question, “By the year 2025, what will be the dominant fossil fuel alternative?” The majority (60 percent) of industry respondents said “Bio-substitutes for gasoline,” while 19 percent cited biodiesel and 16 percent said electric vehicles. McKinsey’s analysis showed that on a land use efficiency analysis, electric vehicles powered by biomass achieved 37 miles per acre while biofuels achieved 30.

More than half (55 percent) of respondents said there is currently insufficient capital to support growth of the industry. Three quarters of respondents (76 percent) supported “Governments create long-term regulatory frameworks and offer incentives” as a solution, and two thirds also supported “Science offers clear evidence of biofuel efficiency and carbon impact” as a driver of investment.

You can view the presentation of the findings by Oberman at McKinsey Industry Survey on Biofuel Outlook 2010.

BIO also presented the 2010 George Washington Carver Award to MIT Professor Greg Stephanopoulos, a pioneer in metabolic engineering and commercialization of industrial biotech processes.

World Congress on Industrial Biotech Begins in Washington

On the opening day of BIO’s World Congress on Industrial Biotechnology and Bioprocessing in Washington, DC, new announcements came from the Department of Energy, ZeaChem, Elevance and DSM.

The DOE’s Assistant Secretary Cathy Zoi, head of the office of Energy Efficiency and Renewable Energy, announced funding of $24 million for three research groups addressing key hurdles in commercializaiton of algae. The money will be split among the Sustainable Algal Biofuels Consortium, the Consortium for Algal Biofuels Commercialization, and Cellana, LLC Consortium.

The DOE also released the National Algal Biofuels Technology Roadmap.

Elevance announced a joint venture with Wilmar International to build a commercial-scale manufacturing facility in Surabaya, Indonesia with an initial capacity of approximately 400 million pounds of its renewable waxes and oils. The facility will be located within Wilmar’s new integrated manufacturing complex now under construction and is expected to come online in 2011.

DSM announced formation of a joint venture with Roquette Freres — to be called Reverdia V.o.f. and to be headquartered in the Netherlands. The venture will combine Roquette’s sugars with DSM’s fermentation technology to produce succinic acid, which is a building block chemical for nylon and other plastics. This follows another French succinic acid plant, Bio Amber.

ZeaChem announced achievement of milestones in scaling up their biorefinery process.

A session at the World Congress focused on commercialization of algae biofuels, with DOW, UOP Honeywell, Raytheon, and HR BioPetroleum presenting updates on the partnerships they’ve formed. The discussion turned to jet fuels and chemicals as way to ensure any algal process is sustainable — it can ensure economic viability and reuse of all byproducts.

Algae-Based Biofuels

Last week the Triplepundit wrote a post called, Breaking the Cost Barrier on Algae-based Biofuels.  The piece noted that the technology was promising and then provided a summary of where things are today

And just where are things?  Today biofuel companies are currently seeking to scale the commercial production of algae and are pursuing several engineering approaches to the design of an economical system for growing algae. The industry is also investigating use of closed systems and open pond systems. In closed systems, engineers can precisely regulate algae growth conditions. Closed systems include both photobioreactors for photosynthetic algae strains and traditional bioreactors (enclosed tanks such as those used in other microbial growth) for those, such as cyanobacteria, that do not require sunlight. Open pond systems have been used in many settings, but can be sensitive to various environmental factors, such as contamination by other algae strains, or variations in nutrients, heat and light. Pond systems covered by thin plastic films and combination closed/open systems are being developed to control these factors.

The Defense Advanced Research Projects Agency is working with teams led by Science Applications International Corp. (SAIC) and General Atomics to produce cost-effective military jet fuel (JP-8) from algae. Testing is expected to begin in 2011. The Navy’s Defense Energy Support Center has also purchased and begun testing algae-derived diesel distillates from Solazyme. And Continental Airlines and Japan Airlines have successfully tested Jet A from Sapphire Energy and UOP Renewables in commercial jets, including Boeing 737 and 747 planes.