As promised, we got a chance to sit down with Wes Bolsen, the CMO and vice president at Coskata, during last week's Platts Cellulosic Ethanol Conference in Chicago. We wanted a little more information on the $1/gallon number for the Coskata process "cellulosic" ethanol (yes, Bolsen pointed out that it's really carbon ethanol, but he's OK with people using the cellulosic term, even though he prefers to call it "next generation" ethanol). About half of the cost is set aside for feedstocks, the rest is for things like utilities, maintenance, water, and nutrients. The Coskata process does not require buying enzymes, there's no pre-treateament, and there's no high-pressure chamber. Eliminating these items simplifies the process and, therefore, reduces the running cost to less than $1/gallon. I'm not sure if the fee for the microorganisms is included in this estimate or is part of the plant building fee (which is not part of the $1/gallon).

Because the Coskata process does not require sugars/cellulose, it can use input sources like trashed plastic bottles, tires, landfill gas, and steel mill gasses. Bolsen said that some estimates say 40 or 50 billion gallons of fuel could be created each year from these sources. Oh, and if you think ethanol will die out when we move away from liquid fuels, check out Bolsen's idea to use ethanol to produce hydrogen for fuel cellls. Want to hear more? Go ahead and listen in (13 min):



Our travel and lodging for this event was provided by GM.

Thursday at the Platts Cellulosic Ethanol Conference saw three of the cellulosic ethanol plant builders give updates on their strategy for converting biomass to fuel and where their companies are today. The speakers were Wes Bolsen, CMO and vp at Coskata, Christopher Veit, senior marketing manager, biomass, for Novozymes, Inc., and Murray Burke, president and CTO of SunOpta. The short version of each of their speeches: we're doing amazing things, you should really take another look at our technology. The longer versions are spelled out after the jump.

If you get into a room with a lot of people who make up part of the cellulosic ethanol industry, things can get a little technical. This is the situation here in Chicago for the Platts 3rd Annual Cellulosic Ethanol and Biofuels conference. A few hundred representatives from a lot of companies in the cellulosic ethanol "space" (I hear this term so often these days - the green tech space, the green car space, etc. Why?) are here and the rapid-fire presentations are truly talking to the choir, as it were. Sure, attendees disagree exactly how to best make cellulosic ethanol, but they all understand, well, the space.

So, join me as I share a bit about what was said and done at the conference. This post will cover the first few seminars, when some of the broader questions about cellulosic ethanol and the market were taken up. I'll have more posts later about other aspects of the discussion. Jump past the fold for more.

When Toyota invited reporters to Portland last month for the Sustainable Mobility Seminar, we were greeted at the baggage claim with tickets for the Portland public rail system. Here in Chicago for GM's biofuels conference, we were met at the airport by a driver in an Escalade (and not the hybrid one that's pictured above, either). I know that Portland's public transportation system is one of the best in the country, but still.

GM had specified that only GM vehicles be used in getting us to the hotel, the driver told me and when I asked if there was any ethanol in the tank, he said there's probably E10, because that's what the pump sticker says, but no go on E85. He admitted that his company doesn't even have any vehicles that run on E85. I appreciated the ride to the hotel, but couldn't pass up the chance to share this little tidbit. Some real coverage of the conference coming right up.

I wonder just how much money and time has been spent by national organizations promoting flexfuel vehicles - even though we all know that E85 fuel is pretty hard to find. Whatever the calculation, we need to add in the cost of a new F150 crew cab flexible-fuel vehicle (around $36,000) and a year's worth of E85 (around $6,000). This was a bonus prize awarded to the Dirk Devries family in Minnesota, which recently won ABC's Extreme Makeover: Home Edition. The local Dave Syverson Ford is providing the vehicle and the Ethanol Promotion and Information Council (EPIC), along with local POET biorefineries, is providing the biofuel. According to the local paper, the Devries family hasn't had it easy recently and a friend of the family submitted their story to the TV show for consideration. Along with a new home, a new truck might make things better for them. We'll see how they feel when they have to pay to fill it up next year.

[Source: Ethanol Promotion and Information Council]

Photo by Pixthree. Licensed under Creative Commons license 2.0.

While Hurricane Ike caused gas to shoot up to $5 a gallon in some areas, one problem in the direct path of the storm was a total lack of gasoline. But, for one University of Houston mechanical engineering student, the absence of gasoline didn't stop his evacuation: he just filled up with E85 and kept on moving. A story on Expo TV about senior Chris Reudelhuber's flexfuel dash to safety reads a bit too anti-hybrid to take seriously, but it does point out one aspect of flexfuel vehicles that certainly doesn't get much attention: the ability to fill up with whatever is available when supply gets tight. Thanks to Adam B. for the tip.

[Source: Expo TV]

One of the problems major automakers cite as a reason that more ethanol isn't used in their flex-fuel vehicles is that the people who own the cars just don't know that you can put E85 into the tank. But there is another problem: not having any E85 available in your area. If you want to find out if you can get E85 locally, there has long been an ethanol station search available at the website of the National Ethanol Vehicle Coalition. Douglas Cottrell over at Drive Flex Fuel thought that another E85 station locater was in order.

A quick check using my home Zip code turned up 80 E85 stations from NEVC and almost twice that (157) on Drive Flex Fuel within a 200 mile range. DFF allows you to limit your search to 10 miles (or 25 or other limits) of your home while the NEVC site only allows you to search for stations within 200 miles of your home (and how useful is that?). From the looks of it, it doesn't seem that DFF discriminates between public and industrial sites. Cottrell wrote to AutoblogGreen to say that he updates the station list every month and has all states and zip codes listed.

[Source: Drive Flex Fuel]

Not to be outdone by those Coors ethanol vehicles at the DNC, Republicans will get their own ethanol-dose during their national convention this week. On Tuesday night in the Twin Cities, the Minnesota Agri-Growth Council will host a "celebration" called AgNite (because you know that farmers are the first to ditch old school and correct spellings of words like night). The self-styled non-partisan AgNite will celibrate "America's food and agricultural industry with key policymakers, convention delegates, media, and top industry leaders" and will feature an ethanol angle thanks to the sponsorship of the Renewable Fuels Association.

Ethanol promoters have a lot of work to do to get Republican delegates on the same page. The National Review's Corner says that the GOP's party platform recently voted against strong ethanol mandates, following strong discussion.

[Source: AgNite via Domestic Fuel, National Review]

It's certainly true that most ethanol opponents can find plenty of fuel for their arguments. Some claim that food prices have been adversely affected by ethanol production. Others point to the fact that most cars get worse fuel mileage when running E85. Obviously, there have been many debates regarding the effects of running ethanol in our vehicles. While we primarily are concerned with automobile engines, there are many other internal combustion engines to be concerned with, including those in motorcycles, lawn mowers, trimmers and numerous other devices which have become necessary for modern life. Even if automakers are able to ensure that their engines are not harmed by ethanol-blends, small engine manufacturers may not be able to do the same. MSNBC has an polled a handful of small engine mechanics and each of them cite internal engine damage, which they claim can be attributed to the use of alcohol fuels. We've heard about this problem for at least two years, and expect that this is an issue which will get even more attention as the government mandates more ethanol to replace petroleum.

[Source: MSNBC]

You've heard about plug-in hybrid conversions to the Toyota Prius. Now, a new company offers another eco-upgrade - E85 conversions. A Dutch firm named GreenFuelSystems has created an E85 bio-ethanol conversion kit that is available for 549 Euros. While the English-language version of the company's site is lacking in substantive information, they are currently being hailed as the first group to bring an E85 conversion kit to the market.

What would be truly remarkable is to see a Prius with both types of conversions: a flex-fuel, plug-in hybrid. While there is much talk about the possibilities of converging both alternative fuel and electric charging capabilities, we have yet to see entrepreneurs and innovators bring such projects to the public. With the emergence of this E85 conversion kit (if it is functional and viable), we may possibly begin to see a new wave of green vehicle renovations. Note: In some respects it is harder to do a flex-fuel hybrid than a plug-in.

[Source: Autoblog.nl]

Because certain subsidies and incentives allow many gas stations to sell ethanol for less money than regular gasoline, the fuel is becoming a popular choice among motorists, even if their vehicles are not certified for flex-fuel use. All vehicles sold in the U.S. today are capable of accepting small doses of the alcohol fuel, as up to ten-percent of normal gasoline may be ethanol. Of course, the fuel is available in higher concentrations for vehicles which have been designed to use it, with E85 - eighty-five-percent ethanol, fifteen-percent gasoline - proving one of the most popular combinations.

Apparently, though, the lower price of the fuel has attracted the attention of those looking to save a few bucks on each fill-up. In fact, this article indicates that many users are mixing their own blends right in their tanks. This trend has prompted some gas stations to allow a choice of ethanol mixtures for drivers who want to use it, right from a single pump. Manufacturers warn that using alcohol fuels in vehicles not certified for them could cause permanent damage, so be sure you know what you're doing before breaking those rules.

[Source: AP via The Detroit News]

Here in the Northeast, you're more likely to spot the Loch Ness monster in your neighbor's kiddie pool than you are to find a fuel pump that dispenses E85 Ethanol, a situation that always makes me chuckle at the various "FLEXFUEL" badges I increasingly see on area vehicles. Well, as of this Thursday, June 26, people in Massachusetts will actually be able to fill their tanks with the biofuel at the first public E85 pump in the state. And for 85 minutes, they'll be able to do so for 85 cents a gallon after the grand opening ceremonies at the Burke Oil station in Chelsea, MA. General Motors, purveyors of flex-fuel vehicles that in most cases rarely see a drop of the stuff, is sponsoring (we assume that means "paying for") the 85-cent promotion, after which the price will go back up to its normal rate of $2.85/gallon. Nowadays, that doesn't sound so bad at all. All the specifics can be found in the press release after the jump.

[Source: National Ethanol Vehicle Coalition]

Oh, the poor ethanol industry figures. Maligned for their reliance on corn, blamed for rising food prices and having to resort to subsidized fuel sales to attract attention, ethanol is an easy target these days.. Ethanol can't even get any love from the chickens. Last week, ethanol promoters gathered in Nashville to lash out at OPEC and Big Oil, and to figure out how ethanol will fare in the coming years. Around 4,000 people attended the 2008 Fuel Ethanol Workshop and Expo, according to organizers BBI. There is a lengthy video of the opening session now available online here.

In the video, the president and CEO of the Renewable Fuels Association,Bob Dinneen, breaks into a bit of a tirade about the oil industry. Dinneen's message is that the oil companies are waging war against renewables through paid-for studies and newspaper editorials. The ethanol industry's solution? Mandate that all new vehicles in the U.S. be E85-capable (we assume they mean all current gasoline-powered vehicles). Author Robert Zubrin said this would drive gas prices down to $50 a barrel. I say if cellulosic ethanol companies can make good on their promises to sell ethanol for something like $2 a gallon, you won't need a mandate to get all cars to be E85-ready.

Photo by mrebert. Licensed under Creative Commons license 2.0.

Last month, Texas asked the Environmental Protection Agency (EPA) to halve the nationwide renewable fuels standard (RFS) because it believes "implementation of the RFS would severely harm the economy or environment" of Texas. Basically, Texas said, using so much corn to make ethanol (for 2008, the RFS is nine billion gallons) will hurt Texas' big leather pocketbook. As per the rules, the EPA then asked other groups for comment, and the National Chicken Council stepped up to support Texas' call (yes, this is the same National Chicken Council that was hatin' on corn ethanol a year ago).

Using language to get the EPA's attention, the NCC said in a statement (pasted in full after the jump) that U.S. policy to grow corn for ethanol "is imposing 'severe harm' on the broiler chicken industry and should be scaled back." The national ethanol policy leads to high corn prices, which hurts poultry companies, the NCC said. Of course, feeding chickens a lot of grain isn't the healthiest way to raise them, but that's a post for another blog. The NCC represents companies that make about 95 of the chicken sold in the U.S.

Here's an interesting way to phrase things. The Ethanol Promotion and Information Council (EPIC) is trying to reframe America's current high pump costs with this headline: "Gas Prices Force Americans to Push for Ethanol Fuel." O rly?

See, EPIC commissioned a survey (conducted by Luth Research's SurveySavvy online research at the end of April, with just over 1,000 respondents) that found that American motorists will be rethinking their driving habits. No one needed a survey to figure that out, but EPIC also asked about the role fossil fuels play in the mix. I found the announcement strangely worded (read it for yourself after the break), but it seems like EPIC found that Americans don't want to pay for fossil fuels if they cost more than $5-6 a gallon. Ergo, said Toni Nuernberg, executive director of EPIC in that statement, "Motorists are frustrated and angry about high gas prices. Everyone is feeling the pinch at the pump, which really underscores our need for biofuels." It really underscores our need for alternatives, that's for sure, but not just biofuels.