Friday, December 10, 2010

Biofuels Leaders: Three Big Dawgs in Biofuels

The biofuels industry has received a lot of attention for the up and coming small companies, many of whom are developing novel technologies to produce bio-based alternatives to gasoline. But now as the industry prepares for the scale-up and commercial introduction of fuels at meaningful scale, it is the large industrial companies that are starting to dominate. These Big Dawgs tend to be well financed. They also have the necessary ingredients to be credible commercializers of biofuels. Typically, these are well-known multi-national companies that have prior experience in either the production and delivery of petroleum-derived fuels or in the development of bio-based processes at very large scale.

Who are these Big Dawgs? Here are the top three on my list.

1. Dupont: Known primarily as a major international chemical company, DuPont has already been successful in the development and commercialization of bio-based processes at large scale. The company launched a new monomer called trimethyleneglycol, or 1,3-propanediol, which is produced by an engineered microorganism by fermentation of sugar. Since this is exactly the type of process that is necessary to produce biofuels, the step into the biofuels arena is a natural one for this industry behemoth.

DuPont has formed a partnership with the major enzyme producer Danisco. Named appropriately DuPont Danisco Cellulosic Ethanol (DDCE), this company aims to be nothing less than the world's leading provider of technology for producing fuel-grade ethanol from cellulose. DDCE plans to license its patented technology to ethanol producers for deployment in the United States and elsewhere.

DuPont also has a joint venture with oil giant British Petroleum to produce butanol. The BP partnership is an interesting one since butanol is an advanced biofuel with better properties as a fuel than ethanol. IN the commercialization announcement, the product has a nice name: Butamax. By covering both the ethanol and advanced biofuel space, DuPont is positioning itself to earn revenues in both the short and intermediate time frames.

2. British Petroleum: Famous now for the oil spill in the Gulf of Mexico, BP has been preparing its future in biofuels for longer than most people know. In addition to the aforementioned joint venture with DuPont to produce butanol, BP recently bought out its venture with Verenium to enter the cellulosic ethanol market. The company is also funding about half a billion dollars in research over 10 years at the University of California at Berkeley and the University of Illinois at Urbana-Champaign. Funded under the EBI, or Energy Biosciences Institute, the research is geared toward the development of technologies to replace fossil fuels. The company is also investing in technology to produce diesel from sugar and in operations in Brazil near the sugar plantations there.

3. Shell: This oil industry giant owns a majority interest in cellulosic ethanol producer Iogen and is underwriting a large project to develop enzymes for breaking down cellulose to produce biofuels with Codexis. Shell recently signed a major agreement with Brazilian sugar producer Cosan, which gives it access to an inexpensive source of sugar as a raw material. The Brazilian venture alone is worth an estimated $12 billion. In addition, Shell is funding research through a variety of smaller venues, both at universities and small companies. Without a doubt, Shell is signaling that it intends to be a long-term player in biofuels.

These are three Big Dawgs to watch as biofuels go commercial.

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Article Source: http://EzineArticles.com/?expert=Steve_Stillwater

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