Wednesday, January 19, 2011

Green Biologics Makes Landmark Biobutanol Deal in China

Biobutanol fuel is billed as a sustainable alternative to gasoline alongside other alcohol fuels. Interestingly, it can be used in unmodified petrol engines (though this is not ideal, pure butanol fuel can damage petrol engines and modification is needed to optimize performance). Butanol is generally suitable for use in a 10% blend with gasoline and no modifications to the vehicle. Aside from its fuel applications, butanol is a valuable to the chemical industry as a chemical intermediate and solvent. Green Biologics (GBL) is a leader in biobutanol production technology in the UK, offering innovations throughout the technical process of biobutanol production. Its activities include metabolic engineering, biobutanol refineries, retrofitting ethanol plants to produce biobutanol and also microbial technology.

GBL has announced the completion of landmark agreements with the China - UK Low Carbon Enterprise Co Ltd and two of China’s major biochemical firms, Guangxi Jinyuan Biochemical Company Ltd and Lianyungang Union of Chemicals Company Ltd. GBL will collaborate with its Chinese partners to scale up its biobutanol production technology to enhance China’s efforts towards renewable energy. Under the agreements, GBL will provide fermentation technology to enable existing production facilities to produce biobutanol with low cost sustainable feedstock, such as agricultural by-products.

GBL’s chief executive, Sean Sutcliffe: 

“We are delighted to be collaborating with China’s leading low carbon energy organization and major biochemical firms. These agreements build on GBL’s successful business development program in China, where over the last three years our focus has been on introducing advanced technology to allow the profitable operation of existing biobutanol facilities for the chemical market. The relationship with leading Chinese biochemical companies and China - UK Low Carbon Enterprise Co Ltd will allow us to significantly accelerate this process. In addition, these companies can provide a platform for the introduction of the next generation of GBL technology, which will see the roll-out of biobutanol as a low cost advanced biofuel derived from sustainable feedstocks. The business approach in China complements our global strategy of offering technology for the retrofit of ethanol production plants so they can be turned into more profitable biobutanol facilities, and of offering advanced biobutanol plant designs and technology. This deal is a resounding endorsement of GBL’s leading position in the commercialization of biobutanol for the fast growing renewable chemicals and biofuels markets in China. “

The global n-butanol market is worth over $4 billion a year and the fastest growth is in China, while the global market for biofuels is around $50 billion and growing at 7.5% per annum. Biobutanol clearly sounds like a good market to be involved in. The chemical industry applications of biobutanol are solid, but how much penetration biobutanol will have in the biofuel arena remains to be seen. While butanol has higher energy density than ethanol meaning better mileage, it is also mildly toxic (six-fold more toxic than ethanol) so there are regulatory hurdles to overcome before high content or pure butanol fuel become commonplace. This could impair the growth of biobutanol fuel use in comparison with other biofuels such as bioethanol or biodiesel, but if this is overcome the improved performance of biobutanol may allow it to take the lead over bioethanol in fuel blends.     

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