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Giant Gobs of Algae Coming From Solazyme

Starting soon, oil-producing algae will be replicating at B-horror-movie quantities. Imagine a lab coat-wearing scientist running into the street shouting “300,000 metric tons!” while scores of screaming people run by, pursued by a giant wave of green slime.

But be not worried, the algae in question will be safely confined to fermentation tanks thanks their overlords at Solazyme. And many of those tanks will be in Brazil (so the people would be screaming in Portuguese, I guess.)

Earlier this week, Solazyme says that it has agreed with its sugar-producing partner Bunge to increase the production capacity for algal oils from an original 100,000 metric ton amount to 300,000 metric tons. It seems from the press release that Bunge will have a hand in marketing the tailored oils to the edible oil market in Brazil.

If you happen to live in the U.S. and have a craving for oil derived from algae, you’ll be pleased to learn that another large blob will be coming to Clinton, Iowa, starting in early 2014. Solazyme and its little green workers plan to ooze into the idle Archer Daniels Midland plant formerly occupied by Metabolix’s bioplastics operation. The plant will start out making 20,000 metric tons, but aims to grow to 100,000 metric tons.

 


Soon You’ll be Thankful for #foodchem Microbes

Cleantech Chemistry dives into the #foodchem carnival this week!

This is a good time to get your Thanksgiving menu planning started. This time of year I use a lot of spices. Have you ever noticed how expensive they are? I’ve paid $14 for two vanilla pods. The problem with vanilla is that it comes from the seed pod of a kind of orchid. Having tried to grow orchids, well, let’s just say I can imagine this is not an easy crop. Also, vanilla is commonly grown in Madagascar. Not exactly a locavore treat.

Natural vanilla. Credit: Shutterstock

I’ve had better luck with growing crocuses, but I’ve not grown my own saffron. Maybe I should, because saffron, which comes from the flower of the saffron crocus, sells for about $2,000 per kg.

Microbiologists and chemists are ready to come to the rescue of cooks (and food makers) who love spices but don’t want to break the bank. One start-up, based in Switzerland, is Evolva. Evolva plans to use biotechnology to make high value ingredients for health, wellness, and nutrition. Two of its first target products are vanilla and saffron.

So far, it’s been a rather quiet company, but its CEO, Neil Goldsmith, came over to Philadelphia this week to talk about the firm to attendees of the first gathering of SCD-iBIO. This group was formed to promote a strong value chain for biobased products in order to commercialize the output of industrial biotechnology.

In the context of the meeting, Goldsmith said the firm’s background in pharmaceuticals (the company started with ideas of supplying the drug market) means it is well positioned to deal in the regulated food industry. As a small company, Evolva has purposely targeted high-value, non-commodity products. Also a the meeting were Solazyme and Amyris. Both are larger and public biobased companies that are targeting the pricey wellness market (personal care and fragrances). Both firms had initially said they would target biofuels.

Evolva says flavor molecules like those in vanilla and saffron can be made much more cheaply by fermentation. Most vanilla-flavored foods are made with synthetic vanilla, a product called vanillin. But natural vanilla is a complex mixture of flavor molecules and Evolva says it can make more than just vanillin. In addition, using sugar as a feedstock helps in an industry looking to avoid synthetic ingredients derived from petroleum.

The stevia plant also contains a number of molecules that produce its characteristic sweetness. Stevia sweeteners, which are derived from the plant, are now a $300 million per year market. The sweeteners are commonly used in beverages, but are pricier than sugar, HFCS, and synthetic sweeteners.

Goldsmith pointed out that the best stevia molecules for use in sweetening beverages (without the characteristic bitter aftertaste of some stevia products) occur in very small amounts in the natural source (the plant). So Evolva plans to make those less-common molecules via fermentation. The implication is that this version of the biobased sweetener could also be made more cheaply than the plant-based version.

Read more:

About making flavors and fragrances with microbes: Sweet Smell of Microbes

About sweeteners made from stevia


What the Election Means for Climate, Energy & Cleantech

Update: Here’s a link to C&EN’s election story – including new House & Senate leaders in energy-related roles.

It’s been a quiet time in cleantech news lately, what with Sandy and the election happening in back-to-back weeks. But the election – and the superstorm – are likely to have meaningful long-term impacts on energy policy. I took a tour around the internets to see what analysts and cleantech-ers are saying in their reaction to the election results.

Though it was past my usual bedtime, President Obama’s victory speech caught my ear when he remarked “We want our children to live in an America . . . that isn’t threatened by the destructive power of a warming planet.”

With Congress still divided, most policy wonks suggest that any energy and environmental policy changes will have to be led by the White House. Things to watch include any movement to block the Keystone Pipeline or push forward with EPA regulations on smog that were delayed due to cost concerns.

Environmentalists have signaled that they will be putting pressure on the President to use national policy to address climate change. Look for Bill McKibben, activist, author and co-founder of climate change group 350.org to be very vocal. He was quoted in three articles I read.

Energy and cleantech activists are pressing for a national renewable portfolio standard that would require power generators to obtain 30% of electricity from renewables by 2030. Nearly 30 states and D.C. have such a standard, the most well-known and successful is California’s, which is headed to 33% by 2020. Wind energy backers will work to return the production tax credit.

The Washington Post points out that Obama recently spoke about upgrading energy efficiency standards for buildings – codes are currently set by state and local governments.

And renewables businesses will be looking for government action that might help them gain financing for facilities or adjust subsidies on competing oil and gas producers. On the other hand, Obama has been pursuing an “all of the above” energy strategy that is likely result in further development of domestic oil and gas (including hydrofracking) resources.

Perhaps most fascinating to me, though also the most far-fetched, is discussion about whether the fiscal cliff, tax reform, and the deficit will drive Congress to think about introducing a carbon tax. Hmmmm…

My favorite takes so far on the election and energy policy:

From the Washington Post: Obama to continue efforts to curb greenhouse gases, push energy efficiency

Politico: Obama’s green cred on the line in second term

Marc Gunther: For green business, blue skies ahead. For climate policy, who knows?

Huffington Post: Ron Pernick on Five Cleantech actions for President Obama

The Daily Climate: The “Flat Earth Five” – House Members and Climate Change

For an international take, check out Click Green, which compares the horizon for climate change action in the U.S. versus China. China will have new leadership in Xi Jinping

 


MPGs, HEVs, PHEVs Oh My!

It appears that recent efforts to raise miles per gallon on the nation’s auto fleet – spurred by government regulations – have hit an interesting tipping point. As this guest post by my colleague Jeff Johnson points out, both consumers and automakers have learned to love running lean.

Ford’s Ecoboost engine goes farther. Credit: Ford

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Despite the recent bankruptcy of Department of Energy supported vehicle battery maker A123, auto analyst Alan A. Baum stressed last week in a briefing and report that fuel efficient and electric vehicles are here to stay. Driven in large part by new federal fuel-efficiency standards, the average vehicle fuel efficiency for model year 2012 reached 23.6 miles-per-gallon, more than 1 mpg above 2011, Baum says, adding that this is the largest one year mileage jump in five years.In previous years, Baum says, when fuel efficiency increased, sales dropped, but for model year 2012, sales are on track to increase by 10% above 2011 levels to some 14 million units. Baum adds that electric-gas hybrids, coupled with plug-in electric vehicles, are on track to top half-a-million in sales in 2012.

Efficiency conscious consumers, he notes, also have more choices—the number of high efficiency model vehicles has grown from 28 in 2009 to 61 for 2013 model year. Also Baum predicts that automakers will increasingly promote vehicle efficiency to increase profits and sales. He singled out Ford’s Series F trucks that advertise an “Ecoboost” turbo-charging system that adds $1,000 to the cost of the truck but gets more horse power out of a smaller engine. – Jeffrey Johnson

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For those of you who know your way around a torque wrench and want to know how an Ecoboost engine works, I highly recommend Johnathan Gitlin’s guide over at Ars Technica.


Moving to Missoula: Rivertop’s new CEO

The cleantech industry is taking executives to some interesting places lately.

Earlier this month, renewable chemicals firm Rivertop Renewables, based in Missoula, Mont., named Michael J. Knauf as Chief Executive Officer. Mike Knauf is a 30-year veteran of the bioindustrial industry, having held executive level positions with Genencor and Codexis.

Rivertop makes chemical intermediates through oxidation of sugar feedstocks. Its first platform of products is based on glucaric acid. On Oct. 26, the company opened its new labs and semi-works facility in Missoula.

Cleantech Chemistry spoke with Knauf about his new job, and Rivertop’s future plans.

CC: What attracted you to Rivertop?

MJK: Rivertop is a startup with a promising future. Codexis had moved past start-up mode and was starting to form up as a company with products and services and a revenue line. This is a pre-revenue opportunity –  it builds on a solid breakthrough technology and was built by a great group of people. It couldn’t be a better opportunity for someone like me – a seasoned – in Montana they might say, grizzled, veteran. It’s really a great fit. I’m hoping my skill set will be what this company needs to propel it forward beyond startup phase.

My mantra is always listen to your customer. We’re are in the process of developing our market strategy – we’ve been talking to customers to really understand their needs. This company’s technology was originally applied to a market pull; a company was looking for a unique polymer and our founder identified glucaric acid polymers to meet their need.  Our  platform product is glucaric acid and other sugar acids generally broaden the range of applications for the company. The fact that Rivertop was founded on a market need is the key.

CC: What was it like to move to Missoula from San Francisco?

MJK: It’s funny – on a personal note I grew up in a town almost exactly the same size as Missoula. You’ve heard of it – Green Bay Wisconsin, but now Green Bay is maybe three times the size of Missoula today. My wife and I grew up in the same town.  We’re so excited to be part of this community. It has a great quality of life and lots of nature. The University of Montana is in Missoula and provides a tremendous amount of cultural richness you wouldn’t find in towns this size everywhere. It’s just plain beautiful. And no, we’re not worried about winter.

And the home we’ve purchased – well, there’s no stoplight between our home and the Rivertop offices and labs. When you’re from the Bay Area… that puts a big smile on my face.

CC: What are your plans for growth – production, product line, partners …?

MJK: So far, we’ve shipped product to a number of customers but we are not in full launch mode. We’ve been producing for customer testing. I’ve just started so I don’t have all the answers all right now. The plans are to continue with our product and market development. In some cases that will take us to partnerships and collaborations – with consumer product companies, chemical companies, and potential manufacturing partners too. We’re working on a detailed strategy that we will roll out when it’s formed up.

One aspect is different that I’m happy to talk about. When it comes to Rivertop versus other companies in the renewable chemicals space, our technology is based on chemistry rather than biology. The R&D timeline and manufacturing cost of capital is considerably less problematic. Biology takes time, chemistry is usually pretty quick. With biology you have to develop the microbe, along with all the aspects of fermentation and recovery of the product. Our chemical process development has been quick, and is well developed for a number of applications; it is a platform chemistry.

We’ll ultimately produce more than glucaric acid, though glucaric acid is a good example of an oxidized sugar with a number of promising applications. It was on the DOE’s original list of biomass derived chemical targets. It’s a platform chemical we can develop with our platform chemistry.

Our primary market opportunity for glucaric acid is the detergent market, which has many applications of interest to Rivertop. Glucaric acid-derived products have long been considered as potential builders for dish and laundry products. With product reformulations, such as to remove phosphates, the detergents can be made more sustainable and better performing – and that plays right into our strengths.

The other markets we are looking at begin with corrosion inhibition for deicing applications. That is an area the team found early on and is fairly far along, we are shipping product to transportation departments in the Mountain states, including Montana.

Right now this new guy says the sky’s the limit, but we have to focus on some particular opportunities.


A123 Systems Files Chapter 11, Johnson Controls to Buy Assets

It looks like it’s pretty much all over for A123 Systems. The advanced battery company announced today that it would file for Chapter 11 bankruptcy in order to reorganize its debts. Johnson Controls, which also makes large-format lithium ion batteries for the auto industry, will purchase facilities and other assets for $125 million. A123 was earlier mulling an offer to sell itself to Chinese auto part maker Wanxiang Group.

A123 Systems makes advanced lithium ion batteries. Credit: A123 Systems

A123 was one of a host of battery, battery materials, and electric drivetrain companies to receive government money as part of the Recovery Act. The goal was to set up a full manufacturing supply chain to for U.S.-made advanced batteries. Those batteries were intended to go into U.S.-made electric vehicles. A123 received $249 million in government grants. It also has shareholders, who will likely lose their investment in the re-org.

Overall, Recovery Act funding for the advanced battery industry totalled $2 billion. A123 Systems stood out – and was most vulnerable to market forces – because it was a tech-driven, pure-play battery company. Unlike Dow Kokam, or Johnson Controls, it has no deep pocketed parent or additional technologies and markets to sell into. (A123 will license back techology for batteries used for stationary storage).

And the market A123 sells into is the hyper-oversupplied market for electric car batteries. As we’ve mentioned recently in this blog, electric cars are selling very, very slowly. A recent article in MIT’s Technology Review says battery production capacity in 2013 will greatly outpace demand with 3,900 MW hours of capacity to serve 330 MW of demand, based on estimates from Menahem Anderman at the consulting firm Advanced Automotive Batteries. Needless to say, many production lines are sitting idle at the moment.

When A123 was still a young firm, it was selling batteries for power tools to Black & Decker. Indeed, when it went public its S1 filing was based on that partnership. The company certainly had its sights set on what was to be a huge automotive market.

But one has to wonder, what would have happened if A123 hadn’t received the “free” money? What if it hadn’t been swept into the government’s big plans to create a new advanced manufacturing industry from nothing?


LanzaTech: Now experimenting with CO2

It’s not too often that I get a press release with a New Zealand embargo time. Waste gas to fuels and chemicals firm LanzaTech got its start in New Zealand, but is currently headquartered in Illinois. Still, the company’s larger projects are all in Asia, and being on the opposite side of the world from Cleantech Chemistry blog HQ is not a problem for them.

Yesterday (which is today in New Zealand), LanzaTech CEO Jennifer Holmgren spoke to a conference of oil refiners in New Delhi. In her remarks, she announced that the firm has a new joint development agreement with Malaysia’s national oil company Petronas.

The two firms will work to produce chemicals from carbon dioxide – the first one being acetic acid. LanzaTech already has two facilities that make ethanol from CO. In all cases, the CO or CO2 comes from waste gases. LanzaTech’s proprietary microbes ferment the gas into various end products. The Petronas deal will get its CO2 from refinery off gases and natural gas wells.

Earlier this year, the venture arm of Petronas contributed to LanzaTech’s third round of venture funding. And it seems the two companies have been in cahoots ever since.

C&EN profiled LanzaTech this summer.

And there is another cleantech firm that aims to make acetic acid – Zeachem. Zeachem is building out its plant that will produce acetic acid – as well as ethanol – from hybrid poplar grown in Oregon.


Testing Green Fracking Fluids

Natural gas company Cheasapeake Energy is testing new formulations of fluids for hydraulic fracturing that contain environmentally-benign ingredients, according to Bloomberg. This news caught my eye as I’ve been researching this and related shale gas development topics for many weeks.

In hydraulic fracturing – or fracking – millions of gallons of water, mixed with proppants, usually grains of sand, and small amount of chemicals, are injected deep into a gas well. Forcing this mixture into the horizontal portions of a well and into the shale formation fractures the rock and allows the gas to flow to the surface.

For the most part, the fluid’s job is to imbed the grains of sand into the fractures. The added chemicals do other things – for one thing, they prevent scale from forming in the fractures. In addition, well operators also use biocides to limit the amount of bacteria, which can clog up the works. Acid-producing bacteria can even damage the well casing. Another important element is friction reducers, to help the liquid and proppants reach farther into the shale. These are normally simple polymers.

There has been much public concern about possible environmental or health impacts from fracking chemicals. Now, many providers of chemicals that are used in fracking are swapping earlier formulations for ones made up of food-safe or GRAS compounds.

If you have any questions or comments about hydraulic fracturing or fracking chemicals feel free to put them in the comments – I’ll do my best to find answers or point you to helpful resources. One website that gives details about fracking chemicals is http://fracfocus.org/


A Graphic Illustration of the Target on the Back of the Chemical Industry

Several days ago I received an e-mail from the press office (press person?) at the Energy Information Administration (EIA). At the time I looked at it, thought “hmm… interesting” and set it aside. Been thinking about it off and on since. The crux of the information was this graphic:

 

 

 

 

 

 

 

 

 

 

 

 

A few thoughts that came to mind immediately were 1) Wow, look what a monster recession did to our industrial energy consumption and 2) That brick-colored stripe is rather tall.

The other two categories of energy consumers aside from industry are residential (people at home), commercial (businesses) and transportation. In 2011, industry was responsible for over 30% of total energy consumption, according to the EIA. Transportation is approximately a similar amount, and residential and commercial users split the rest.

The more I thought about it, though, the more I reflected on basic chemicals’ place in the lifecycle of a finished good – maybe a shampoo, or a carpet or a car – and the chunk of energy use it represents. A branded goods manufacturer that does a lifecycle analysis – say to measure energy use or emissions – would no doubt zero in on chemical inputs as a large contributor to its overall footprint.

Of course, mining and agriculture have their own energy footprints, as shown in the graphic. Obtaining any raw material will bring energy baggage with it.

The graphic also reinforced a message that my C&EN colleague Alex Scott recently wrote about in the magazine. He attended an event in Brussels called the Global Chemical Industry Sustainability Summit. In his report, he writes that chemical industry representatives were chided for their “business-as-usual model” and told that other industries, including customers of the chemical industry, were beginning a trek toward zero targets for things like oil use and CO2 emissions. Should someone hold a similar event in the U.S., this illustration might appear in the presentation.

 


SoloPower, Gevo: Can a capital-light strategy save cleantech?

I wish I could be in Portland, Oregon today to watch SoloPower start up its first production line of thin film CIGS solar panels. The company says it can manufacture in a continuous process to make its solar material in strips as long as one mile.

The company asserts that its thin, flexible modules are a good fit for building-integrated solar, especially in locations where heavier, traditional glass panels cannot be installed such as on warehouse roofs. The modules are certified to an efficiency rate of 9.7 to 12.7%.

But it’s not so much the technology itself that is interesting, but rather SoloPower’s business model and whether it can succeed in selling what it admits is a premium-priced product while the traditional silicon modules continue to drop in price, taking down many efficient producers with them.

SoloPower is already having to bear up under scrutiny because it will be able to tap into almost $200 million in DOE loan guarantees, under the same program that was behind the Solyndra kerfuffle. NPR did a nice job this morning interrogating SoloPower CEO Tim Harris. Read or listen to the short piece here.

NPR rightly points out that Solyndra was backed by $1 billion in private funding and accessed half a billion dollars in its own DOE loan before going bankrupt. But SoloPower doesn’t have a billion bucks to lose, and perhaps that is a good thing.

Instead of comparing SoloPower to Solyndra I’d like to compare it to Gevo, a maker of biobased isobutyl alcohol (what it calls isobutanol). Both firms are pursuing a capital-light strategy.

SoloPower’s first production line will have a small eventual annual capacity of 100 MW. So far, it has spent only its own investors’ dollars. Gevo, a now public company, is spending somewhere around 25% to one-third the cost of a new fermentation plant by converting existing corn ethanol plants.

When a company that has a technology without a track record wants to build its first large plant, it faces financing risk on top of technology risk. Range Fuels built a shiny new plant in Georgia to make ethanol from wood chips. But since the technology did not work upon start-up, Range could not pay its monthly loan overhead, and the factory was repossessed by its financing bank and sold at auction (Range also had a DOE loan guarantee).

Early this week, Gevo told investors that it had stopped making isobutyl alcohol at its facility in Luverne, Minnesota. Instead, it turned the switch back to ethanol. Gevo’s plan to convert an ethanol plant in Redmond, South Dakota is on hold. The company said though it successfully made isobutyl alcohol in Luverne, to reach its target run rate would require more work. Meanwhile, both locations can still produce ethanol.

Though Gevo’s investors weren’t happy with this news, Gevo has given itself plenty of time to fix its problems, saying it would reach its target run rate in 2013 (it could take a year and still make this deadline).

Reducing a company’s financing risk doesn’t do much to reduce its technology risk – or in SoloPower’s case, its market risk – in either the short or long term. But it may help a company last beyond just the short term. Given the pitfalls of technology scale-up, that could make all the difference.



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