There has been one positive piece of news this week for the cleantech sector – Solazyme is part of a $12 million grant to supply the U.S. Navy with 450,000 gal of biofuel. Solazyme’s algal oil will be used along with used cooking grease to power a fuel plant run by Dynamic Fuels, a joint venture between Tyson Foods and Syntroleum. They’ll be making both renewable jet fuel and marine fuel. Press releases about the deal emphasize that it is the single largest biofuel purchase in government history.
Thank goodness cleantech has the government as a customer. Private industry customers haven’t panned out so well lately for battery firms like A123 Systems and Ener1, as reported this week in the Wall Street Journal. Major investments in battery manufacturing – supported in large part from Recovery Act funds – have been met with disappointing demand from electric-car makers. A123 Systems has scaled back its scale-up plans because its big customer, Fisker Automotive, has slowed its own plants due to technical problems. Meanwhile Ener1′s customer Think Global has filed for bankruptcy protection.
When C&EN wrote about the battery scale-up, a major concern at the time was that there would be more battery capacity than cars to put them in, and that seems to be the case for now.
Back to biotech, according to a Reuters report from Pike Research analyst Mackinnon Lawrence, the biofuels industry is very concerned that budget cutting in Congress will pull the rug out from programs that are helping companies bootstrap their way to cost parity with petroleum. Part of the problem is that industry’s promises to have commercial-scale production on line by this year have not panned out. Cellulosic ethanol is the biggest disappointment, and so now attention is likely to switch to drop-in biofuels like renewable gasoline and renewable diesel. Or, even better, jet fuel.
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