M&G Paves the Way for Coke’s PlantBottle in China

Cleantech Chemistry thanks C&EN colleague Marc Reisch for contributing this news about biobased chemicals. M&G Chemicals, a unit of Italy’s Gruppo Mossi & Ghisolfi, plans to build a $500 million biorefinery in China to make ethanol and the polyester raw material mono-ethylene glycol from 1 million metric tons of biomass per year. The facility in Fuyang, Anhui Province, China, will be four times larger than M&G’s recently commissioned Crescentino, Italy-based biorefinery when it is open in 2015. To be built in a joint venture with minority partner Guozhen Group, a Chinese energy and real estate conglomerate, the Fuyang refinery will use Proesa technology from Beta Renewables, a joint venture partly owned by M&G which is also a polyethylene terephthalate maker. M&G’s CEO Marco Ghisolfi says the Fuyang refinery “is the first act of a green revolution that M&G Chemicals is bringing to the polyester chain to provide environmental sustainability.” The company’s entry into China will ultimately position it to supply PET to firms such as beverage maker Coca-Cola which have advanced the development of renewably-sourced bottles, among them Coke’s own “PlantBottle.” Coke currently buys ethanol-based ethylene glycol from India Glycols to make a PET bottle that is nearly 30% biomass derived. To increase feedstock availability, last year Coke formed a partnership with India’s JBF Industries to build a 500,000 metric-ton-per-year bio-ethylene glycol plant in Brazil, also set to open in 2015. While the JBF plant will use sugarcane and sugarcane-processing waste as feedstock, M&G’s China facility will be based on wheat straw and corn stover. So M&G’s plant has the added virtue of depending on a non-food feedstock source. But the ethics of using one feedstock crop versus another, or of using biomass versus petrochemical feedstocks, might not matter if consumers don’t care. At the BioPlastek Forum, a conference held in June, Coke, Ford Motor, and yogurt makers Danone and Stonyfield Farm told bioplastic makers that most consumers are unwilling to pay higher costs for bioplastics (C&EN, July 15, page 18). And while the large M&G and JBF plant may have the economies of scale to drive down bio-based PET costs, they’ll encounter headwinds from petrochemical-based ethylene glycol makers. Lux Research senior analyst Andrew Soare points to the spate of ethylene and derivatives plants planned in the U.S. based on low-cost natural gas. M&G itself, for instance, is building a 1 million metric-ton-per-year PET polymer plant in Corpus Christi, Texas. However, M&G will be challenged to make cost competitive ethylene glycol in China given the competition expected from U.S. petrochemical producers, Soare...

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Learning to Like Natural Gas
Aug15

Learning to Like Natural Gas

This week’s cover story – Seeking Biomass Feedstocks That Can Compete – discusses the competition that natural gas might bring to the young renewable fuels and chemicals industry. [You can also check out the YouTube video about Energy Cane] The story discusses one positive that the rise of natural gas brings to biobased chemical makers – at least those that produce C4 chemicals (i.e. butanediol, butadiene). As the chemical industry swaps petroleum feedstocks for natural gas, their processes will generate a much smaller ratio of C4 chemicals. Firms that rely on those intermediates will seek other sources of C4s. But there are a few other ways that the natural gas story intersects with the renewable industries – some obvious, and some not so obvious. One obvious way – cheaper energy from natural gas may help decrease operating costs at all chemical producers, including ones that use biomass feedstocks. Less obvious – there is a group of renewable companies that use syngas as a feedstock. You know what makes an excellent syngas? Why, that’d be natural gas. Sure, you could gasify plant matter, old tires, construction debris, municipal waste (anything carbon based). Any of those feedstocks will make a flow of carbon monoxide and hydrogen. With chemical or biological catalysts, that syngas can be made into chemicals and fuels. At least two firms that started out with plans to make syngas from biomass or waste sources now say they will ramp up on natural gas – Coskata, and Primus Green Energy. Coskata’s end product is ethanol, while Primus is targeting drop-in hydrocarbons. Presumably, with a working gasifier and catalysts, they could switch feedstocks whenever the cost basis dictates. Newlight Technologies wants to make polymers from waste gases like methane from water treatment plants. But methane from under the ground would work well, too. The company says it can also make polymers from CO2 (with a helping hand from a hydrogen generator). Which brings us to… BASF, which is not really a renewable company, but has got some irons in the fire. The chemical giant has a research project going to rip the hydrogen off of natural gas, and mix that with waste CO2 to make a custom-blended syngas. The firm says getting hydrogen this way is cheaper than other ways (tearing up water molecules, etc). Waste CO2 is something many industries – especially in Europe – would like to do something with. LanzaTech is also in the waste CO2 business. Not sure what its natural gas plans are. Lastly, two stalwarts of the biobased chemicals industry, Genomatica and OPX Bio are getting a handle on natural gas. Genomatica is working...

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Choppin’ Broccoli

In the quest for chemicals and fuels made from biomass, there are a few important black boxes that make it difficult to compare different companies’ business models and likelihood of success. One of them is the process by which a particular facility obtains sugars from its biomass feedstock. In many cases, the first step is expensive, but low-tech – chopping up the stuff. This is the part that reminds me of Choppin’ Broccoli, the Saturday Night Live song as performed by Dana Carvey. Since cellulosic ethanol is sort of an offshoot of corn ethanol, it’s helpful to imagine how different it is to process a corn cob or stalk or an entire sugar cane, compared to grinding up a starchy corn kernel. Getting sugar from cellulose is difficult enough, getting the cellulose away from the clutches of a plant’s lignin first requires heavy machinery to chop it into little pieces. So say you have tidy chipped up pieces of biomass. What do you do then? Like the SNL song, it ain’t pretty. Generally it requires some combination of thermochemical assaults to get the sugar out. Steam, alkali-acid washes, and pricey enzymes… In an otherwise green business, the pretreatment steps use energy and possibly chemicals that you wouldn’t want to spill. Since pretreatment of biomass has a lot to do with both costs and the yield of sugars from feedstock, it is a busy area of research. An article by Chris Hanson in the appropriately named Biomass Magazine delves into some intriguing ideas. To release the useful cellulose from lignin, researchers at University of Illinois at Urbana-Champaign and the U.S. DOE’s Joint BioEnergy Institute are investigating ionic liquids. Instead of using a traditional, two-stage alkali-acid pretreatment, a dose of butadiene sulfone got the job done in one step, according to U. of Illinois scientist Hao Feng. Another major benefit is that the butadiene sulfone can be recovered and recycled. In California, the JBEI has been experimenting with imidazolium chloride. It has succesfully obtained sugar yields of 95% from mixed feedstocks and recycled 95% of the ionic liquid. And a company called Leaf Energy has been studying a glycerol pretreatment method. Compared to acid pretreatments, the company says their method gets more sugars faster by dissolving lignin with a relatively inexpensive reagent with low temperature and standard pressure. The goal with improving pretreatment steps is to bring down the cost of sugar from cellulose so that it is not more expensive than sugar from corn or sugar cane. Maybe if major cellulosic ethanol producers take up these technologies, we’ll have a better window into how they get the sugar out....

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Biobased Chemicals: Some growing pains

Gevo, a maker of bio-based isobutanol, is now actually making isobutanol. It says something that a publicly-traded company has been not making its commercial product for some months. The problem was a bug in the production system – technically a microbe – a microbe other than the one (a yeast) that was supposed to be making isobutanol. I spoke with Gevo’s CEO Pat Gruber yesterday at the BIO show in Montreal. He was rather forthright about what happened. First, they were running the plant at full scale with their own yeast and had their separation process running. They were producing truckloads of isobutanol. The facility had previously been an ethanol fermentation plant. With the new operating conditions, a dormant microbe sprang to life, contaminating the process. The product was still being made but the company decided to shut down the plant and decontaminate it. “We had to identify the sources of the contaminant, change the pipes, sanitize the equipment, train the staff and modify the operating conditions to favor our yeast,” Gruber recounted. He emphasized that these plants are not sterile like a pharma plant would be. Instead, vectors of contamination are controlled so they stay at very low levels. When I wrote about biobased chemicals last summer, analysts held out Gevo as an example of a success story. It was shortly after the story ran that Gevo stopped its process at its Luverne, Minn. plant due to problems with contamination. The episode shows the kind of growing pains that the industry and its followers are learning to anticipate and accept. Other companies might face different kinds of growing pains – for Gevo there was what is called technical risk. Other firms are making chemicals such as biosuccinic acid. They also face a market risk because for most applications their product is not a drop in raw material, so downstream customers must adopt it. This year is the tenth anniversary of the World Congress for Industrial Technology. Historically, it seems to take about a decade for a new chemical concept to reach commercialization, and then some more time to penetrate new markets. This makes 2013 a very interesting year for the biobased chemical...

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Optimists at the BIO Show
Jun18

Optimists at the BIO Show

I’m in Montreal today for the World Congress on Industrial Biotechnology – put on by the Biotechnology Industry Association. The soaking rain that threatened to drown my arrival on Sunday has given way to warmer weather with just a few threatening clouds. Similarly, the mood at the show is one of patient optimism. This year is the show’s tenth anniversary and it is reported to be the largest one yet with 1200 attendees. There are actually seven tracks of breakout sessions which makes it rather difficult for this reporter to follow along. The major change that I’ve noticed compared to my first show four years ago is in the content of the presentations. It used to be all about the super microbe – speakers would show off elaborate slides with metabolic pathways – they all looked like very complicated subway maps. Since then the industry has learned that microbes can build a lot, but they can’t build your business for you. This year the subject matter is all about scale up and applications. The language is more MBA than MicroBio. Supply chains, value chains, financing, customers, joint ventures, IPOs. Of course by now any start-up with a microbe has learned by now if their business plan is worth money or not – and only those that answer yes are still here. I’ve been told to expect some major announcements this morning so follow along with my tweets @MelodyMV if you want the dish. Yesterday Myriant said it got its bio succinic acid plant up and running in Lake Providence, LA. It will be ramping up tp 30 million lbs per...

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Never Mind All That: Solar on the upswing
May22

Never Mind All That: Solar on the upswing

I’m going to have to start posting more frequently. My last post was about solar firms going bankrupt in China and now my cleantech news is about how solar is set to rebound. Seems like something should have happened in between that post and this one. Actually, a few biobased chemical deals were announced. Thanks BASF and Evonik! Anyway – back to solar. Earlier this week, Lux Research (a rather skeptical gang generally) put out a summary of a new research report titled “Solar’s Great Recovery: Photovoltaics Reach $155 Billion Market in 2018.” Actually, solar had a great 2012 – at last in the U.S. – but that was mainly due to installations of several large utility projects. The business of producing those solar modules had hit some major potholes. Around five years ago, solar demand was hindered by high prices – held up by shortages of key polysilicon raw material, but balanced by huge subsidies in Europe, especially in Spain and Germany. Then – in the nature of boom and bust cycles – the high prices prompted huge polysilicon capacity increases. Then prices fell, Europe cut subsides, the recession hit… and all that new capacity made solar prices tank and inventories piled up. Whew – what a tale. In a fun new twist, according to Lux analyst Ed Cahill, the solar crisis will become a boon as record low prices boost demand. (And after that what will happen? Stay tuned). The rise will take place as those cheaper installations (especially utility and commercial rooftop) become routine and spread into new markets. U.S., China, Japan, and India are expected to speed up installations. That will help to power (no pun intended) a compound annual growth rate in the industry of 10.5% over the next three years. A few other things might help – according to this New York Times article, the U.S. and Europe are both working to smooth over trade disputes with China. Regional pricing schemes may take the place of tariffs. China had been accused of exporting solar modules at prices less than the cost of production (a practice called “dumping”). China, in turn, accused polysilicon makers in the U.S. and Europe of doing the same thing. All of this fun news is not likely to help revive solar module manufacturing in the U.S. or in Germany. But new technology might. My colleague Alex Scott flagged a news item from the University of Stuttgart’s Institute for Photovoltaics. Researchers there have tested a crystalline silicon solar cell with a 22% sunlight conversion efficiency. It is difficult to say how much a module made of these cells would convert, but a traditional module is...

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