Bioenergy market
Worldwide, bioenergy – in particular, bioethanol, has been identified as the most likely successful replacement for fossil fuels. Ethanol is a higher octane fuel than gasoline and is a clean burning fuel. It could play a crucial role in slowing down the rate of global warming and has also been identified for its huge potential in reducing hunger and poverty in developing countries.
The world market for ethanol is about 25.6 million tonnes(1) – the non-beverage portion of which is worth about US$10bn at current prices. In the long term potential of bioethanol from plant and crop waste could be 1000 million tonnes per year.
However, much current debate focuses on the negative aspects of bioethanol production – namely, sharply increased food prices and erosion of biodiversity and large scale production costs. Bioethanol can only become a significant strategic environmental important fuel for large market penetration if it can be produced at a whole sale cost of about $1 per gallon.
Overcoming the barriers to acceptance
| Barrier: Recent studies have suggested that no second-generation biofuels (ie biomass to liquid fuel technologies, namely bioethanol) have the potential to become commercially available on a large scale within the next five to eight years – that is, in time to have a significant effect on global warming and the reduction of carbon emissions. | Solution: Biocaldol’s scientists have developed a system that will efficiently turn all sugars in food waste (in this case, waste from the cane sugar industry) into ethanol in commercial quantities. Its bioprocessing technology can convert biomass into ethanol, other valuable chemicals and additional bioproducts using genetically-engineered micro-organisms.. After further testing to industrialise the process, the system is expected to be fully commercially viable within 36 months, giving BCTL a competitive edge of at least two years. |
| Barrier: Research has questioned whether second-generation biofuels have the potential to significantly reduce large-scale carbon emissions. This criticism is based on the fact that large scale bioethanol production thus far has relied on mass planting of crops such as maize and other cereal crops, which may destroy ecosystems and actually accelerate global warming. | Solution: Biocaldol’s proprietary technology is the first to successfully identify a way of converting all sugars in plant waste into commercially-viable quantities of ethanol. Rather than relying on purpose-grown crops, it uses the waste from the agro-industry. The key benefit is that the production does not destroy ecosystems: it actually reduces carbon emissions. |
| Barrier: Critics have pointed out that major ‘biological barriers’ exist that need to be overcome if bioethanol is to become a viable option. Better understanding of plant physiology and the mechanisms that prevent waste biomass being broken down by fungi and microbes will be needed before scientists can make a major breakthrough. | Solution: Biocaldol’s scientists have made that breakthrough. Their proprietary process successfully utilises not just the readily-available C6 sugars in plant feedstocks, but also the C5 sugars which – until now – have been largely under-used. This means that plant waste can be used to viably produce ethanol for the first time by increasing the ethanol production by 30-40% and the bioproduct credit(eg animal feed) by 10%.The recent international patent search has demonstrated the novelty and uniqueness of Biocaldol’s intellectual property rights. |
1. F.O. Lichts, International Molasses and Alcohol Report, Vol. 37, No. 19, pp. 313-317; World Ethanol Output to Rise, OIL DAILY (16 October, 2000).