Economics Improve for First Commercial Cellulosic Ethanol Plants - NYT

[JohnWxy]

http://www.nytimes.com/cwire/2010/02/16/16climatewire-economics-improve-for-first-commercial-cellu-93478.html

Many cellulosic fuel producers are working with enzymes to break down tough, inedible plant parts, such as corncobs or switch grass, into simpler sugars that can be fermented to ethanol. Now enzyme companies say they are near to breaking down another tough obstacle: the cost of enzymes that will make the next generation of low-carbon fuels.

The progress may help put cellulosic ethanol on course to compete commercially when the first large plants open next year.

Novozymes, the world's largest industrial enzyme producer, today launched a new line it says will yield ethanol from plant wastes at an enzyme price of about 50 cents a gallon. The latest product of a decade of research, this marks an 80 percent price drop from two years ago, according to Global Marketing Director Poul Ruben Andersen.

The advances, Andersen said, will help bring cellulosic ethanol production prices to under $2 a gallon by 2011, a cost on par with both corn-based ethanol and gasoline at current U.S. market prices.

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[thereismore]

1. $2 a gallon gas? Where? nt

[JohnWxy]

3. this article is from Feb 2010. At that time the wholesale price for gas would have been around $2

ethanol get's more competitive as gas prices climb. gas wholesale now is about $2.40 a gallon. Of course they are predicting considerably higher for spring in anticipation of Summer drive time.

[DCKit]

2. When our trash stops going to landfills and, instead, into our gas tanks...

we'll know they're really on to something.

[JohnWxy]

5. A company called Coskata and others are working on that.

[notesdev]

4. In other news...

Global Food Prices at Record High

http://www.theworld.org/2011/01/06/global-food-prices-at-record-high/


EPA approval of E15 hurts consumers (E15 damages car engines not specifically designed for it)

http://thehill.com/blogs/congress-blog/energy-a-environment/136053-epa-approval-of-e15-hurts-consumers

[JohnWxy]

6. World Bank admits they were wrong in attributing rise in food prices to ethanol

World Bank Concludes The Impact Of Biofuels On Food Prices Not As Large As Thought - Rather it was ENERGY prices that had the biggest impact

"Clearly US maize‐based ethanol production, and (to a lesser extent) EU
biodiesel production) affected the corresponding market balances and land use
in both US maize and EU oilseeds. Yet, worldwide, biofuels account for only
about 1.5 percent of the area under grains/oilseeds (Table 3). This raises serious
doubts about claims that biofuels account for a big shift in global demand. Even
though widespread perceptions about such a shift played a big role during the
recent commodity price boom, it is striking that maize prices hardly moved during
the first period of increase in US ethanol production, and oilseed prices
dropped when the EU increased impressively its use of biodiesel. "


http://www.blackseagrain.net/about-ukragroconsult/news-temp/world-bank-biofuel-impact-on-food-prices-not-so-large">World Bank Concludes The Impact Of Biofuels On Food Prices Not As Large As Thought - Rather it was ENERGY prices that had the biggest impact - article

The paper concludes that the effect of biofuels on food prices has been much less than initially thought. However, the use of commodities by financial investors (the so-called "financialization of commodities") and the subsequent commodity speculation "played a key role during the 2008 price spike."

Another major conclusion is that energy prices played a significant role in the price spikes that occurred. These conclusions come at a time when several similar studies have shown that biofuels are not to blame for massive food price increases.

The paper points out that biofuels account for such a small part of the overall production of grains and oilseeds that they are unlikely to have much of an impact on prices.


"Clearly U.S. maize-based ethanol production, and (to a lesser extent) E.U. biodiesel production affected the corresponding market balances and land use in both U.S. maize and E.U. oilseeds. Yet, worldwide, 1.5% of the area under grains/oilseeds is allocated towards biofuels production. This raises serious doubts about claims that biofuels account for a big shift in global demand," the paper said.
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Regarding the use of E15 in non Flex-Fuel vehicles a test of 15% ethanol used in automobiles of vintages 1996 through 2007 was performed by the Oak Ridge National Laboratory. They tested primarily to see what emissions were for these vehicles using E15 but drivability was observed also. Here's what they say in the report of the tests:

"no driveability issues associated with ethanol fueling were noted for the duration of testing by either the engineers or emissions test drivers"


http://growthenergy.org/images/reports/nrel_legacyvehicles_smallengines.pdf">Effects of Intermediate Ethanol Blends on Legacy Vehicles and Small Non-Road Engines, Report 1 – Updated - OAK Ridge National Laboratory