The new website was welcomed by the Ag Energy Coalition (AEC). “USDA’s Energy portal demonstrates the positive impact the Farm Bill energy title and related programs are having on job creation, national security, and the environment,” said Coalition co-director Lloyd Ritter. “The Ag Energy Coalition believes Rural America will be a continuing force for change in the advancement of sustainable energy and renewable chemicals production in the years ahead. With the right policies in place, and requisite funding, the promise of a rural renaissance focused on clean energy solutions will become a reality.”

The Ag Energy Coalition includes a membership of organizations and companies representing a variety of clean, renewable energy and bioproducts stakeholders.

“The U.S. military and the nation as a whole face a significant national security threat from U.S. dependence on foreign sources of energy and ongoing price volatility. The military requires access to adequate fuel supplies in strategic locations, and biorefineries producing advanced biofuels from multiple feedstocks represent perhaps the best option for meeting this military need,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

Erickson noted that while individual advanced biofuel producers have achieved milestones toward commercial development of a diverse array of feedstock and technology combinations, full commercialization has been limited by the severely constrained market for private capital. “Coordination of efforts by the USDA, DOE and DOD to address the market challenges could significantly accelerate production of the volumes necessary to meet the energy security needs of the U.S. military,” Erickson said. “Some advanced biofuel companies already have worked with the Department of Defense (DOD) or with commercial airlines to test and certify advanced biofuel/petroleum blends, and more are poised to do so.”

Rep. Jay Inslee (D-Wash.), who introduced the bill at the end of the last Congress, once again put forth the bipartisan bill which will allow Civilian Agencies and Military Agencies to extend multi-year contracts from the current limit of 5 years to up to 15 years for the purchase of advanced biofuels.

“No one knows better than the Department of Defense that energy supplies are critical to combat troops and our national security,” Inslee said during the bill’s introduction on Wednesday. “To ultimately realize these goals, we must dramatically scale-up advanced biofuel production in the United States. With added Congressional authority to purchase longer-term contracts, our defense sector could adopt domestically produced sustainable fuels for the security of our troops.”

Brent Erickson with the Biotechnology Industry Organization (BIO) says the bill would help scale up advanced biofuel production in the United States. “Expanding the Defense Department’s ability to engage in long-term contracts would provide potential investors and advanced biofuel companies market stability when they commit capital to building new biorefineries,” said Erickson. “The Defense Department recognizes that domestically produced advanced biofuels are vital to our energy security, by for instance shielding the military from volatile energy supplies and prices.”

The program partners are in the process of developing a black liquor and lignin evaluation centre in Thunder Bay, Ontario. At the core is the lignin demonstration plant that ties directly into the black liquor stream of AbitibiBowater’s Thunder Bay kraft pulp mill. When fully operational, this one of its kind demonstration plant will produce up to 100 kg of lignin per day, which will be shipped to a network of R&D labs across Canada that are developing novel uses for wood products. Also located in this facility is a lignin characterization lab.

Lakehead University and its Biorefining Research Initiative will be closely linked to the ongoing research and will be training students and postdoctoral fellows at the facility.

“It is with cutting‐edge technologies and strong partnerships such as this one that FPInnovations is contributing to building the future of forestry in Canada,” said Pierre Lapointe, President and Chief Executive Officer for FPInnovations. “The strong ties to Lakehead University are key to keeping technology and knowledge in the North. This only strengthens Lakehead’s Biorefining Research Initiative and other related science programs by creating linkages with labs across Canada.”

The is a huge potential market for lignin‐based products. It can be used as a green alternative to many petroleum‐derived substances, such as fuels, resins, rubber additives, thermoplastic blends, nutra‐ and pharmaceuticals, and more.

Doug Murray, General Manager of AbitibiBowater’s Thunder Bay Operations, added, “The lignin evaluation plant provides us an opportunity to move wood‐based products beyond traditional markets. We are pleased to have this innovative lab at our mill site and look forward to continued progress. We feel very fortunate to be part of this initiative.”

View pictures from the 2011 BIO World Congress in my flickr photo album.

Succinic acid is a chemical building block used in the manufacture of polymers, resins, food and pharmaceuticals among other products. Bio-based succinic acid, a renewable and versatile chemical building block, is an alternative to petroleum-derived chemical building blocks such as adipic acid and 1.4-butanediol. DSM is able to produce the biochemical at a lower cost than the conventional fossil-fuel based chemical giving it an economic advantage in the marketplace.

Rob van Leen, Chief Innovation Officer of DSM, said, “The time is right to capitalize on the tremendous progress we have made together with Roquette in the last two years. Our proprietary yeast-based fermentation process not only allows cost effective production; it also eliminates salt waste and other by-products and thus improves the overall eco-footprint of end-products. This bio-based chemical building block is a substitute for various fossil feedstock derived monomers and proves that the bio-based economy is no longer a distant prospect.”

This announcement is the next in a series since the partnership began in 2008. In 2010 DSM and Roquette opened a demonstration plant in Lestrem (France), which has been running at full capacity. The two companies have also announced their intention to establish a joint venture, which will be carrying out business under the name Reverdia).

“We are very encouraged with the development efforts in several new applications and are receiving favorable feedback from customers who have sampled ton quantities from our demonstration plant in Lestrem. The new plant in Italy will allow customers in Europe, North America and Asia to make larger volume commitments to their customers,” added Jean-Bernard Leleu, Deputy CEO and RID Director of Roquette.

To view photos from the 2011 BIO World Congress visit my flickr photo album.

“We are thrilled to have these two industry leaders validate Verdezyne’s technology and its business strategy by taking a stake in the company,” said E. William Radany, Verdezyne’s CEO and president. “This new funding, along with the support from existing investors, will enable the company to execute on its goal of creating and deploying first-in-class engineered yeast strains that efficiently produce biobased fuels and platform chemicals.”

According to Verdezyne, they have significantly advanced its robust yeast production platform for their ethanol and adipic acid processes. The additional financing will allow the company to continue to build its yeast metabolic engineering capabilities to produce a pipeline of renewable transportation fuels and platform chemicals.

DSM VP of Biobased Chemicals and Fuels, James Lademarco, added, “Over the past year, we have been impressed with Verdezyne’s progress in its yeast platform for both fuels and biobased chemicals. We see this investment as strategic given the complementary activities to our own portfolio within Biobased Products and Services.”

You can view photos of the 2011 BIO World Congress in my flickr photo album.

Sijbesma believes that over the next 100 years, the world will be shifting away from the Fossil Age into the third Green Industrial Age, an age based on not taking from the land, from developing feed, fuel and fiber from the land in a sustainable manner.

“The so-called fossil-age will make a shift to the bio-based economy. In two or three centuries from now, people will look back on our civilization as a merely brief moment in history where we in a period of just about 250 years shifted our total economy to coal, oil and gas,” said Sijbesma during his acceptance speech. “To make the shift back to living with, and especially off, nature, we need to start this shift now. We are at a turning point towards a next green industrial revolution to secure our feed and fuel needs in the future.”

Listen to my interview with Feike Sijbesma here: The Next Green Industrial Revolution Begins with Biotech

Sijbesma believes biotechnology holds the key to our future and will provide solutions for energy and food.

“Today people are concerned about food first and then fuel and I understand that. If you use the sugar component from crops to make fuel I understand with all the starvation in the world why people are concerned,” said Sijbesma. “However, you have second generation biofuels already today where we can use the waste components or the cellulose components, which is more complicated. But we’ve shown today a breakthrough in C5 & C6 sugars where we can covert all the waste in the plant towards ethanol so second generation biofuels are a solution.”

“But I go further in the vision for the future. There are so many proteins in all kinds of side streams in crops which we are not using today. We use them for landfill and sometimes for animal feed, etc. but not for human consumption. And if we all want to eat more proteins, more meat proteins, which is not possible, then we need to find a different source of proteins,” said Sijbesma. “And I think with biotechnology, we can get those from the crops. And that means in the future, still 10 years to go, but if we develop the technology it can be food and fuel.”

Also honored today was Iowa State University (ISU) student Catherine E. Brewer who is working on her Ph.D. in chemistry. Brewer received a scholarship and one area that she is focused on is soil science. George Washington Carver, a graduate of ISU is considered one of the founding fathers of the chemurgy movement, a precursor to industrial biotechnology.

DSM also announced today that together with partner Roquette will build a new commercial scale plant in Italy to produce bio-based succinic acid sourced from local feedstocks. Also during the conference, DSM announced the result of a work with Abengoa to develop their C5/C6 advanced yeast technology for the conversion of second generation biofuels.

View pictures from the 2011 BIO World Congress in my flickr photo album.

“G2 BioChem’s technology is feedstock agnostic and optimizes next-generation ethanol yields using all available sugars,” began Barry Wortzman, President of G2 BioChem during the press conference. “Also, our process technology results in a low cost, per litre, which is essential to the viable commercialization of next generation ethanol.”

Listen to Barry Wortzman’s remarks during the press conference: Greenfield Ethanol Launches G2 BioChem

G2 BioChem’s research team has conducted thousands of trials and demonstrated success with various feedstocks including agricultural residues such as corn stover, corn cobs and bagasse as well as energy crops such as sorghum & miscanthus and woody biomass such as poplar.

“G2 BioChem’s advanced biofuels technology has the potential to fundamentally change the burgeoning renewable fuels and biochemical industries – while protecting our environment and boosting Ontario’s economy,” said Glen Murray, Minister, Ontario Research & Innovation. Ontario boosts the third largest biotech cluster in the world.

Listen to Glen Murray’s remarks during the press conference: Murray's Remarks during G2 BioChem Press Conference

The new collaboration was in part made possible from several industry partners including Novozymes. “As a collaborative partner, Novozymes’ goal is to enable and facilitate the realization of cellulosic ethanol production at commercial scale, as quickly as possible; and in our opinion, this technology is leading the way to accomplishing that objective,” said Cynthia Bryant, Global Business Development for Novozymes.

Listen to Cynthia Bryant’s remarks during the press conference: Bryant's Remarks during G2 BioChem Press Conference

Bertil Stromberg, VP, BioFuels for Andritz added, “Andritz is excited to be partnering on this initiative, and to contribute its expertise in process equipment technology for the commercial scale up of the process.”

Listen to Bertil Stromberg’s remarks during the press conference: Stromberg's Remarks during G2 BioChem Press Conference

Check back for audio from the announcement and click here to see photos from the 2011 BIO World Congress.

Erickson said that this conference is really dynamic on multiple levels. There are a series of plenary sessions as well as breakout sessions and workshops covering the gamut from advanced biofuels technology to algae and feedstock crops, as well as aviation fuels, renewable chemical platforms, and bi-based materials. Several events of special interest include the announcement of the George Washington Carver award and Greenfield Ethanol will be making an announcement about its cellulosic technology.

Listen to or download my interview with BIO’s Brent Erickson: BIO World Congress Preview

Two weeks ago, BIO released a white paper on policy and investments needed for the biotech industry. Erickson said these issues would be key during the World Congress. Government policy in the U.S. as well as Canada and globally will be entwined through many sessions. In addition, there will be a focus on the flow of venture capital and investment money into this space as Erickson said for many companies this is an important issue. He also said it is very heartening in this investment climate to see IPOs take place. The next IPO to take place is Solazyme.

I asked Erickson what companies or technologies he think will breakthrough over the next 6-18 months and he said what we’ll see are platforms breakthrough. He believes the biobutanol platform will take off as well as the succinic acid platform.

Be sure to follow conference conference right here beginning on Monday.

“The Renewable Fuel Standard, as it has been implemented by the Environmental Protection Agency, can provide the long-term, stable, market-based government policy mechanism that advanced biofuel producers and investors have been looking for. It provides both and assured market and a significant degree of price certainty for cellulosic and advanced biofuels, which can significantly mitigate the capital risk associated with commercialization of new technologies,” said Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section.

Erickson notes that the RFS is very effective for incentivizing biofuels innovation. He said that with this policy, companies have already made significant investments in research and development. He continued by highlighting the amount of good jobs and positive economic opportunities that the industry provides and then went on to stress that federal support must continue in order for the industry to realize commercial scale production levels. Today, many of these investments are seeing fruition in that several companies in the industry are beginning to make major commercialization announcements.

“Access to capital remains the biggest challenge for the industry, especially as high oil prices threaten to plunge the country into another recession. The RFS must work in coordination with other federal programs administered by the USDA and DOE to provide the industry, its investors and obligated parties needed stability and forward-looking guidance. This paper should reassure capital markets that advanced biofuels represent a sound opportunity. And coupled with the recent USDA loan guarantees and DOE grants the advanced biofuels sector should experience a surge in 2011 and beyond,” concluded Erickson.

You can view photos from the Advanced Biofuels Leadership Conference in my Flickr photo album.

As a result of the report, the biofuel and biotech industries came out in support of the president’s commitment to biofuels.

Biotechnology Industry Organization (BIO) President and CEO Jim Greenwood thanked President Obama and his administration for its leadership in supporting the commercial development of biorefineries.

“Continued reliance on foreign petroleum threatens not only our economy, but also our energy and national security,” said Greenwood. “Next generation biorefineries utilizing renewable biomass to produce advanced biofuels, biobased products and renewable chemicals offer the potential to help stabilize energy prices and revitalize U.S. rural and manufacturing communities. The policies announced today by President Obama will provide important support to path-breaking biotechnology companies seeking to build commercial-scale cellulosic and advanced biorefineries.”

BIO’s Executive Vice President, Brent Erickson, added that to continue the momentum in the commercialization of biofuels, Congress and the country’s energy policy must enable federal agencies to serve as leaders in creating an open marketplace for biofuels to compete.

Also responding to the report was Brooke Coleman, the executive director of the Advanced Ethanol Council. Coleman reiterated that the biofuels industry is ready and waiting to assist the country in meeting its domestic energy needs and also called upon the administration to work with the industry to create a “responsible transition and transformation of current biofuel tax policy and investments in ethanol vehicle technology and fueling infrastructure.”

Coleman concluded, “Challenging capital markets, economic uncertainty, and uncertain federal policy have worked to slow the commercialization of promising advanced ethanol technologies. By committing to policies that accelerate the commercial production of ethanol from a wide range feedstocks, the nation can gain more control over its energy future. Ethanol production from wood wastes, grasses, municipal solid waste, and other non-traditional feedstocks will go a long way to making America truly independent of a need to import oil.”

The report concludes that in the short term, “considering economics, technical readiness, greenhouse gas emissions, and general environmental concerns, FT fuels derived from a mixture of coal and biomass represent the most promising approach to producing amounts of alternative fuels that can meet military, as well as appreciable levels of civilian, needs by 2030.”

The report continues by saying, “It is highly uncertain whether appreciable amounts of hydrotreated renewable oils (biodiesel) can be affordably and cleanly produced within the United States or abroad.” The report questions whether renewable fuels can ramp up to commercial scale, be economically competitive and it questions their ability to reduce greenhouse gas emissions. All of these issues rule biodiesel and algae out, where too much money and resources are being spent, according to the report, as being a viable candidate to meet the military need’s over the next decade.

If these findings weren’t enough to stir up the hornet’s nest, the report also called for Congress to reconsider the military’s budget for alternative fuel-projects. This is a sure-fire way to invoke debate in Washington, especially as a Republican Congress searches for ways to cut the federal budget.

In a New York Times article, the report elicited quick criticism. “Unfortunately, we were not engaged by the authors of this report,” said Thomas W. Hicks, deputy assistant secretary of energy for the Navy. “We don’t believe they adequately engaged the market,” he said, adding, “This is not up to RAND’s standards.”

In an uncommon agreement, both biofuel groups and the environmental industry criticized the RAND report saying that it “underestimated the viability of algae and overestimated the availability and efficacy of carbon capture and storage technology.”

Paul Winters, a spokesman for the Biotechnology Industry Organization said in the article, “This would not be the first example of a military-driven research project where the civilian benefit far outweighs the military benefit. Witness the Internet.”

One area in which the report was very hung up was in the greenhouse gas reduction of the alternative fuels and cites that the Energy Independence and Security Act of 2007 requires that any alternative and synthetic fuels bought by federal agencies for “mobility-related use” must have the same or lower greenhouse gas emissions than those of conventional fuels using 2005 levels. The RAND report argues the GHG reductions are not significant enough to continue to pursue research.

A long-standing debate has been whether biofuels, both ethanol and biodiesel, offer lower GHG emissions as compared to other fuels such as conventional gasoline. The biofuels industry argues biofuels lower GHG emissions, even when factoring in unproven theories such as indirect land use, while biofuel opponents argue that biofuels actually increase GHG emissions.

Ultimately the RAND report concludes that the most promising fuels will be produced using the Fischer-Tropsch process, and more specifically, to turn a combination of coal and biomass into liquid fuel. However, to counter GHG emissions, there will have to be substantial carbon sequestration technology attached to the process, but the authors do not feel this is a deal-breaker, regardless of the fact that no proven, commercially available technology of the sort is currently available.

Executive Director Mary Rosenthal, in a statement on the Algal Biomass Organization’s website in response to the study, stated, “The positioning of the entire US algae industry as a “research topic” is patently false. We have more than 100 companies, academic institutions and national laboratories working to develop the algae-to-fuels industry. Algae-derived fuels have already been tested and/or used in motor vehicles and commercial aircraft, and last fall’s successful test of a Navy Riverine Command boat showed that algae fuels are ready for use. It is unclear to us whether or not any actual “green” CTL fuels have been produced or tested.”

Rosenthal continued, “We believe algae commercialization is far closer than RAND suggests. A 2010 report by Greentech Media Research projected annual US production of 6 billion gallons of algae fuel by 2022. On the contrary, the RAND report calls the potential for commercial production of CTL fuels over the next decade “very limited.”

She concluded, “We will continue to work on behalf of the US algae industry to inform policymakers of the true potential of algae-based fuels as a long term, viable source of renewable fuels for the military.”

Rep. Inslee stated, “This legislation creates a path forward to achieve energy independence and invigorate American industries. The legislation will help redirect the billions that we send overseas to pay for our addiction to foreign oil and instead invest those dollars into homegrown biofuels and America’s transportation sector.”

Brent Erickson, executive vice president of the Biotechnology Industry Organization’s (BIO) Industrial & Environmental Section, stated, “The United States needs to produce large volumes of advanced biofuels to reduce reliance on foreign oil, enhance both our energy and national security, and jump start economic growth. More than 65 planned and operating projects in 30 states are looking to build an advanced biofuels and biobased products industry. But, even with the rapid pace of technology development and the demonstrated commitment of Congress and the Obama administration, federal policies to date have fallen short in helping the industry to secure needed capital investment in biorefineries and infrastructure.”

Erickson stressed that federal policies can provide potential investors the type of certainty they need to make a long-term investments in new cellulosic and algae-based advanced biofuel facilities and asked for the enactment of an investment tax credit similar to those given to other nascent industries.

Rep. Jay Inslee (D-Wash.) introduced the bill which would authorize the Department of Defense to continue its leading role in helping to commercialize next generation biofuels by extending the multi-year contracting authority for advanced biofuels from 5 years to 15 years. In his speech introducing the legislation, Inslee quote Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff, who recently commented that the Defense Department uses 300,000 barrels of oil every day. “”The energy use per soldier creeps up every year. And our number-one import into Afghanistan is fossil fuel.” Admiral Mullen understands how critical an energy supply is to a combat troop; but how safe are our troops if this oil comes from overseas? Our defense sector should adopt more sustainable fuels, which can be produced here in the United States; for the security of our troops.”

Brent Erickson with the Biotechnology Industry Organization (BIO) says the bill would help scale up advanced biofuel production in the United States. “Expanding the military’s ability to engage in long-term contracts could provide leading companies and potential investors the certainty they look for before committing capital to large-scale biofuel production,” said Erickson. “The Department of Energy, for instance, has been asking for long-term off-take agreements as an eligibility requirement for its loan guarantee program.”

Erickson notes that the Department of the Navy recently established goals to cut petroleum use in the commercial fleet in half by 2015 and ensure 50 percent of its total energy consumption comes from alternative sources by 2020. “In order to reach the Navy’s goal, there needs to be a dramatic scaling up of advanced biofuel production in the United States. Investment in environmentally responsible technologies lessens dependence on imported fossil fuels,” he said.

The poll looked at “11 Hot Trends for 2011” and was launched during the recent Advanced Biofuels Markets 2010 conference in San Francisco:

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, said, “The biofuels industry is optimistic that the economy will recover this year, increasing opportunities for advanced biofuel producers to finance construction of new projects. Production of renewable chemicals and biobased products as additional value streams should make these projects attractive investments within the renewable sector. The industry also believes that Congress has a role to play, by crafting energy and tax policies that recognize production of advanced biofuels, renewable chemicals and biobased products as vital to the nation’s economic competitiveness as well as national and energy security.”

In this Biofuels Digest article, Brent Erickson, executive vice president for the Biotechnology Industry Organization’s (BIO) Industrial and Environmental Section, says he has been disappointed in President Obama’s and Democratic leadership in Congress’ lack of interest in helping support the green energy industry.

[Brent Erickson] We have had two years with Democrats in Congress and the White House, and they pretty much got their way. Obama took on health care and got it gone, and TARP and the stimulus and he’s shot his wad now.

BE: I have been a little bit disappointed in the Obama administration. When he was in the Senate he as very pro-biofuels. He had to choose his priorities, and that is understood, but this administration hasn’t done as much as expected.

Erickson goes on to say that biofuels, ethanol and biodiesel, have enjoyed bipartisan support, mostly from the likes of farm state Congressional members such as Sen. Chuck Grassley (R-Iowa). But he says it’s not a lock that Republican control will make a huge change:

BD: Looking ahead to divided government?

But biofuels have enjoyed pretty good bipartisan support, although the oil companies will have more of a voice if the Republicans take over. Not all oil companies have the same position – some are outright anti-biofuels, some are more pro than others. But the ag lobby is pretty powerful.

Erickson goes on to say that pay-go rules in Congress and a preference for investment tax credits as over production tax credits could change the game as well.

Biomass Magazine reports that Valerie Reed of the U.S. DOE’s Office of Energy Efficiency and Renewable Energy said at the Pacific Rim Summit on Industrial Biotechnology and Bioenergy held this week in Honolulu, Hawaii the her agency will develop advanced biofuels faster than cellulosic ethanol:

“We learned a lot over the past 20 years, and we believe we can apply that to a faster deployment phase,” Reed said, adding that biomass-based liquid transportation fuels are going to be the only adequate displacements for jet fuel. “This is now becoming a priority fuel we need to consider, and that’s why we’re moving into the advanced biofuels arena,” she said.

Reed highlighted the high productivity of algae and it’s massive presence in the ocean, pointing out that if each algal cell were lined end to end there would be enough algae to reach the moon and back 15 billion times. She also pointed out that a troublesome algal bloom near the Olympic Stadium in China yielded more than 3 million tons of biomass in a three-month period. “Their nightmare is our opportunity,” she said. “If we can harness that type of productivity, and do so in a sustainable fashion, we can look at this in a different scenario.”

The article goes on to say that a DOE study from a few years ago shows the U.S. has 1.3 billion tons of sustainably available biomass. And Reed believes about 60 billion tons of cellulosic ethanol could be produced from that … about one-third of what is anticipated that will be needed for transportation. She says that doesn’t even count for what algae could produce, possibly 100 percent of U.S. fuel needs.

Reed admits there are some barriers, but that’s where research would come in and help overcome those obstacles.

Brent Erickson, executive vice president of BIO’s Industrial and Environmental Section, said, “Algae is seen as a promising source of raw material for biofuels, but it also could become a workhorse for producing ethanol, chemical, protein and food ingredients. As companies work to achieve the full potential of algae for fuels and chemicals, they’ll face the same challenges and opportunities as other biotechnology companies. The Pacific Rim Summit provides an opportunity for startup companies to present the state of their research and development, share their experiences and network with one another and with other biotechnology companies.”

The summit is expected to bring together government officials, private companies and members of academia, including presentation from Valerie Reed with the US Department of Energy, Jonathan Wolfson of Solazyme, Bertrand Vick from Aurora Biofuels, David Bayless of Ohio University, and Jeff Muhs, Utah State University.

Arguing that biofuels are already regulated under the Renewable Fuels Standard, BIO has sent a letter to Sen. Barbara Boxer (D-Calif.), chair of the Senate Committee on Environment and Public Works, asking that recently drafted cap-and-trade legislation be amended to clearly state that biofuels, including the biofuel component of fuel blends, are not obligated under the emissions cap:

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “When it comes to climate change legislation, Congress has focused a great deal of attention on stationary emission sources, such as coal-fired power plants. We cannot, however, achieve a low-carbon future without biofuels, because biofuels can play a key role in reducing direct CO2 emissions from the transportation sector. While fossil fuels release carbon that has been stored deep underground for millions of years into the atmosphere, biofuels recycle atmospheric carbon. In some cases, biomass production can sequester more carbon in the soil than is released into the atmosphere through biofuel combustion. Biofuels should therefore not be treated in the same manner as fossil fuels under any climate change cap-and-trade legislation.

BIO goes on to point out that under the RFS, biofuels are already required to achieve substantial lifecycle greenhouse gas improvements compared to petroleum-based fuels.

BIO’s remarks come as a growing number of green fuels backers say the EPA has to acknowledge the full extent of the uncertainty in its estimation of biofuels’ lifecycle greenhouse gas emissions and ensure that biofuel technologies are not preemptively disqualified from the RFS2:

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, stated, “EPA’s proposed methodology yields highly uncertain estimates of biofuels affect on international land use change, due in part to starting assumptions about future crops productivity and land constraint, causality, and the role of other countries’ land use policies. EPA must acknowledge the limitations of the current state of the science of estimating international land use change and not preemptively disqualify biofuels from the program unless they are clearly demonstrated to exceed the greenhouse gas emission thresholds set in the law. Because of the high degree of uncertainty in the model and the embryonic state of the emerging science, EPA should expressly disclaim any intent to establish precedent in this rulemaking for how international land use change may be measured under a different regulatory program.

“Technology innovation is occurring at a rapid rate across the biofuels industry, even as petroleum exploration pursues more environmentally questionable sources of oil. EPA has already recognized the contributions biotechnology makes to a “best case scenario” for future conventional biofuel production. The agency should also recognize the contributions biotechnology can make in continuing to increase crop yields, decrease fertilizer inputs, increase drought tolerance and lower the overall carbon footprint of biofuel feedstocks.

Erickson goes on to say that the EPA is being too inflexible in its categorizing of biofuel production technologies and suggests the agency adopts an approach that allows biodiesel and ethanol producers to estimate their plants’ carbon footprints based on specific data plugged into a flexible, technology neutral analysis tool that can account for future improvement and innovation.

The comments come on the heels of the National Biodiesel Board’s and Renewable Fuels Association’s official comments on RFS2, which they have just submitted to the EPA.

During the recent 2009 World Congress on Industrial Biotechnology and Bioprocessing in Montreal, Quebec, Canada, the Biotechnology Industry Organization (BIO) hosted a webinar so that reporters and those who could not attend in person could still participate in a discussion on the feasibility of algae to fuel our vehicles, feed our bodies and even free our air of carbon emissions.

Folks like Steve Gluck, a scientist with Dow Chemical Company; Tom Burn of XL Renewables; CEO of Culturing Solutions Dean Tsoupeis ; and Chief Operating Officer of Algenol Biofuels Ed Legere; discussed different methods of algae production and the future for it in the fuel and chemical fields.

You can hear part of the conversation in this week’s Domestic Fuel Cast here: DFCast-7-24-09.mp3

The entire hour and a half webinar is also posted online here.

You can also subscribe to the DomesticFuel Cast here.

Four companies participated in the panel and each company is working on different technologies using different feedstocks. LS9 is creating “renewable petroleum” to produce a green diesel coined LS9 Renewable Petroleum. “I think diesel is where we need to be,” said CEO Bill Haywood. Their feedstocks include low-carbon, natural sources of sugar such as sugar cane and cellulosic biomass. Patent-pending UltraClean™ fuels are custom engineered to have higher energetic content than ethanol or butanol; to have fuel properties that are essentially indistinguishable from those of gasoline, diesel, and jet fuel; and to be distributed in existing pipeline infrastructure and run in any vehicle. In addition, their product is price competitive at $50 a barrel.

Amyris is also a company focused on converting sugar to biodiesel.  The company recently opened a full-scale demonstration plant in Brazil and is currently testing its product. At a 20 percent blend level (B20) the company’s biodiesel reduces NOX, particulate matter, carbon monoxide and hydrocarbons. “Our tests show that there is a 94 percent reduction in lifecycle greenhouse emissions when producing diesel from sugarcane,” said Neil Renninger, co-founder and CTO. The company is looking to purchase existing ethanol plants and mills and then retrofitting the plants with their technology.

Where LS9 is primarily focused on sugar, Solazyme is focused on using algae to produce fuel and claim to be the first company to do so. “Algae are the original oil producers,” said Jonathan Wolfson, CEO,” and making oil is two-step process: photosynthesis and converting chemicals to oil.” Although algae is the most efficient plant in the world to produce oil, it is not the most cost effective, explained Wolfson. “Cost is king. We need high volume low cost feedstocks.” Wolfson noted that all 12 algae strains they are working with outperform all current cellulosic feedstocks.

Let’s not forget biobutanol, a product that many in the industry consider to be the ethanol evil step child. Butanol is the fuel of choice for Gevo. Patrick Gruber, CEO notes that a key to success is using feedstocks that can be fermented inexpensively – an advantage of the feedstocks used in first generation ethanol production. With butanol, he says, you can create the butanol first and then turn it into other chemicals. It’s other advantage over ethanol is that it has a lower vapor pressure (ethanol increases vapor pressure), which, explains Gruber, “makes it cheaper than ethanol in the long run.” In addition, it won’t take years to begin producing butanol; it can be produced today. According to ICM, it will take only 6-7 months to retrofit a current ethanol biorefinery.

As the world moves into a new hydrocarbon economy, there are many ways to do this. In this case, competing technologies will not hurt the development of the next generation of biofuels but help it. The world will need all of these technologies to move away from its fossil fuel economy. To see more comments from the panel, visit BIO’s blog.

Chad Holliday with the GWCarver award and Mark Wright of Iowa State, the recipient of the Carver scholarship.

George Washington Carver is considered one of the founding fathers of modern industrial biotechnology and the award is given to companies who focus on continuing to develop products through sustainable agriculture. Carver’s work inspired leaders of the chemurgy movement, whose proponents looked for ways to replace petrochemicals with farm-derived products. Leaders of the chemurgy movement such as Charles Kettering and William Jay Hale proposed that anything made from a hydrocarbon could be made from a carbohydrate. Today, companies are using industrial biotechnology to manufacture plastics, chemicals, pharmaceuticals, and even food ingredients from renewable agricultural resources.

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, said of Holliday’s accomplishments, “During Holliday’s tenure as CEO, DuPont invested in biology-based businesses and infused them with its chemistry know-how. For instance, DuPont partnered with sugar processor Tate & Lyle to manufacture 1,3 propanediol, a polyester ingredient made by fermenting sugar. That venture led the company to think about applying its fermentation expertise to making renewable fuels and chemicals in a biorefinery. Under the aegis of the Department of Energy, the firm has worked with several research partners to further the concept and make it commercially viable.”

“Market-driven science discovery and new product innovation are at the very core of DuPont’s business, and industrial biotechnology is a key component of that, ” said Holliday. “Innovation is essential to business growth that provides safer and more secure lives for people everywhere while addressing global energy and environmental challenges. On behalf of all DuPont employees around the world, I am deeply honored to receive an award that recognizes and promotes work toward this goal, especially as it is given by a group of peers who share this vision.”

Accompanying the award is a George Washington Carver scholarship given in the name of Charles O. Holliday, Jr., to Iowa State University graduate student Mark Wright, currently pursuing a Ph.D. in Mechanical Engineering and Biorenewable Resources and Technology. The award is sponsored by DSM, the Iowa Biotechnology Association and the Iowa Department of Economic Development.

During a session today from the World Congress on Industrial Biotechnology and Bioprocessing,”Algae for Fuels and Chemicals,” several presenters predicted that commercial production of algal fuels was still 5-10 years away and that better collaboration was needed to bring the fuels to market faster. In addition, Steve Gluck, a scientist with Dow Chemical Company noted that more government funding is needed for algae research. You can read about the session’s key highlights by visiting the Biotechnology Industry Organization’s blog.

Algae can be used to produce many products including green diesel, green gasoline and green aviation fuels. Early tests from various companies such as Amyris and Solazyme have determined that blending algal fuels into current gasoline blends requires no additional infrastructure development and meets or exceeds EPA emission standards.

The FOA is available at FedConnect, and can be found by searching for Reference Number DE-FOA-0000123. You can also see details of additional funds from the Recovery and Reinvestment Act dedicated to biofuels by visiting the DOE’s website. To learn more about biomass and biofuels research and development, visit the DOE Biomass Program website.

The biggest point of contention is the EPA’s Indirect Land Use proposal that could end up making American biodiesel ineligible to be part of the Renewable Fuels Standard… endangering the biodiesel industry and the very standard designed to lower the amount of greenhouse gas emissions. And while ethanol is getting a pass for now, those from that industry are worried how the Indirect Land Use provisions, which estimates the deforestation of rain forests in places such as South America based on how much in row crops U.S farmers grow, could eventually affect them.

Those testifying at the EPA hearing included Renewable Fuels Association President and CEO Bob Dinneen; Steve Ruh, chair of the National Corn Growers Association’s Ethanol Committee; the National Biodiesel Board’s Manning Feraci; the American Soybean Association’s Vice President Ray Gaesser, a soybean producer from Corning, Iowa; POET Vice President for science and technology Dr. Mark Stowers; and Brent Erickson, executive vice president of the Biotechnology Industry Organization’s Industrial and Environmental Section. About 60 people testified at this hearing.

You can hear more about it here: DFCast-6-12-09.mp3

You can also subscribe to the DomesticFuel Cast here.

The print ad stresses important facts about corn and ethanol, such as the increase in yields over the last 20 years, the decrease in the amount of energy used to produce corn and the resulting greenhouse gas emissions, and that using ethanol helps cut GHG by up to 59 percent.

Collaborating with the National Corn Growers Association on the advertisement are Growth Energy, the Renewable Fuels Association, the American Coalition for Ethanol, and the Biotechnology Industry Organization.

See the ad here.

Recently, the Biotechnology Industry Organization (BIO)… a group that represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and more than 30 other nations… gave some of its ideas on how to loosen the credit crunch. BIO’s vice president of its Industrial and Environmental Section, Brent Erickson, said that will come through the federal government’s leadership to coordinate and fund biofuel-friendly programs and help the development of the new feedstocks, transportation and delivery of products, alternative fuel distribution networks and vehicles. Joining him in this call were several of the nation’s leading biofuels companies.

During a news conference, the companies, such as Verenium, Aurora Biofuels, Abengoa Bioenergy, and Gevo, Inc… just to name a few… gave an update on how they’re doing. There was some good news and some not-so-good news with the overall tone upbeat… although most of them agreed that the tough economic times will make it impossible for the cellulosic ethanol industry to meet the government’s goal of 100 million gallons next year. But after that, they remain optimistic. In addition, many on the conference call pointed out that with a finite amount of non-renewable petroleum out there, growing demand and a growing desire to eliminate the fuels that contribute to global warming, there’s really no other choice but to develop these clean, renewable energy sources.

It was a pretty interesting conversation, and you can either go to BIO’s Web site and look up the information so you can listen to the hour-plus of the conference call… OR you can listen to our own Domestic Fuel Cast (just about 7 1/2 minutes of your busy day) where we have condensed it down to its most important points here: DFCast-4-22-09.mp3

The choice is yours. Me… I’m a busy guy. I know which one I’d choose.

You can also subscribe to the DomesticFuel Cast here.

During a teleconference today hosted by the Biotechnology Industry Organization (BIO), representatives from cellulosic ethanol and other advanced biofuels companies gave updates on progress being made toward commercializing advanced biofuels and some of the challenges still to be overcome.

BIO Executive Vice President Brent Erickson says they are recommending the implementation of specific policies to provide funding in a number iof areas, including feedstock development, enzymes and fermentation organisms, algal oil production, alternative fuel distribution networks and vehicles, and biorefinery construction.

“We need a new systems approach to advance biofuels throughout the whole value chain,” said Erickson. “We’re actually talking about creating a new energy infrastructure, which this country hasn’t done for over 100 years.”

They are requesting an immediate injection of capitol for biorefinery construction, feedstock development and fuel delivery infrastructure, which can be accomplished through existing programs within the Departments of Energy and Agriculture. They are also recommending an increase in the availability of E85 fuel pumps and flex fuel vehicles, as well as the certification of higher ethanol blends and the extension of the cellulosic producer tax credit.

BIO is holding its annual legislative fly-in this week and members of the organization will be meeting with administration officials and members of Congress over the next two days to communicate their ideas.

The Biotechnology Industry Organization (BIO) has released the full schedule of breakout sessions and speakers, which includes topics such as, Synthetic Biology for Next Generation Biofuels; Progress Toward Commercialization of Lignocellulosic Ethanol Processes; and Algae for Fuels and Chemicals.

Registration information is available on-line here.

The Biotechnology Industry Organization (BIO) is now accepting nominations for the annual George Washington Carver Award and will present it at the 2009 World Congress on Industrial Biotechnology and Bioprocessing, to be held July 19-22, 2009 in
Montreal, Quebec, Canada:

Brent Erickson, executive vice president of BIO’s Industrial & Environmental Section, said, “We are honoring George Washington Carver because he was one of the founding fathers of modern industrial biotechnology. Today, his legacy lives on in industrial biotechnology companies that are developing new methods to use renewable agricultural resources to manufacture fuels, plastics, chemicals, pharmaceuticals and food ingredients, just as Carver did during the first half of the 20th century. Science has developed in ways that Carver may never have imagined, but the work remains true to his goal – a sustainable agricultural economy that includes production of useful everyday products.”

BIO is now accepting nominations for the George Washington Carver Award online at https://www.surveymonkey.coms.aspx?sm=zHj_2bEVxeMcJzE4A7hmZCqw_3d_3d. Nominees must be living individuals who have demonstrated significant and innovative accomplishments employing industrial biotechnology to advance a biobased economy and industrial sustainability. Written nominations should highlight the contributions the nominee has made in using biotechnology for sustainable production of biobased products, materials and energy. In addition, nominations should include examples of the pioneering and entrepreneurial spirit of the nominee. The deadline for nominations is May 10, 2009.

It only makes sense that an organization such as BIO would name its award after such a visionary as George Washington Carver along with a scholarship given in the name of the recipient. As you might already know, Carver and his students are known for their innovative uses for farm products, finding more than 300 industrial uses for peanuts, sweet potatoes, and other crops that could be grown in rotation with cotton and corn. Glues, plastics, paints, soap… you name it, Carver came up with a use for it… truly a pioneer in the sustainability field.

For more information on BIO’s Carver Award, click here and make plans to attend the Sixth Annual World Congress on Industrial Biotechnology & Bioprocessing, July 19-22, 2009 in Montreal, Canada.