September 2011 Biorefining Magazine

INSIDE: BIOBASED MATERIALS STRENGTHEN US GREEN ECONOMY september 2011

Meet the Bio-Academic Entrepreneurs Business-Minded Researchers Foster Successful Biorefining Startups Page 30

Plus

Profiling Royal DSM’s Heavy Biorefining Interests

Page 22

And

Risks, Rewards of the U.S. DOE’s Advanced Research Projects Agency-Energy

Page 36

www.biorefiningmagazine.com

contents |

september issue 2011 VOL. 02 ISSUE 09

features

22

30

profile Royal DSM’s Partnerships, Market Penetration & Progress

industry The Bio-Academic Entrepreneurs

The 100-plus year-old company reinvents itself

BY BRYAN SIMS

Meet those who bring lab work to market

BY LUKE GEIVER

36

research High Risk, High Reward DOE’s ARPA-E takes chances that pay out

BY ERIN VOEGELE

Contents DEPARTMENTS 4

Editor’s Note

Spurious Claims

BY RON KOTRBA

9

Legal Perspectives

Foreign Corrupt Practices Act: The Essentials

BY richard weiner

6

Advanced Advocacy

Lights, Camera, Congress…

BY MICHAEL McADAMS

12 Business Briefs

7

Industry Events

Upcoming Conferences & Trade Shows

14 Startup

INSIDE: bIObAseD mAterIALs streNGtHeN Us GreeN eCONOmY september 2011

Meet the Bio-Academic Entrepreneurs Business-Minded Researchers Foster Successful Biorefining Startups Page 30

People, Partnerships & Deals

Biorefining News & Trends

Plus

Profiling Royal DSM’s Heavy Biorefining Interests

Page 22

AnD

Risks, Rewards of the U.S. DOE’s Advanced Research Projects Agency-Energy

Page 36

8

Talking Point

Biobased Materials: Strengthening

the US Green Economy

BY atul thakrar

46

Advertiser Index

www.biorefiningmagazine.com

ON THE COVER: Researchers like Aindrila Mukhopadhyay, left, and fellow scientists at the Joint BioEnergy Institute are not only focused on results in the lab, but also on how those can be applied to a growing commercial industry.

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editor’s note

Last weekend, my cousin’s husband stopped in at my place to look at a car that I want to sell. He popped the hood and we talked about the car for a while,

SPURIOUS CLAIMS Ron Kotrba, Editor rkotrba@bbiinternational.com

and then we caught up on family news over a couple of beers. It had been some time since we’d last talked, so he asked what I was doing these days. I told him I’m the editor of two monthly magazines centered on renewable fuels and chemicals. He sort of scoffed, and I knew we were going to get into “the discussion.” He led into our talk about biofuels with ethanol, citing the usual arguments: Why do we as citizens put up with mandatory use of ethanol, a fuel that costs more per gallon and decreases mileage, he asked. I knew right from the beginning this was going to be a tough sell. When I told him ethanol blending in most cases lowers the cost of gasoline per gallon, he asked if that were still the case without government subsidies. I knew then he was not going to be convinced easily, but his point of view, unfortunately, is not uncommon. The mainstream population has been fed this anti-biofuels propaganda for years by the oil and gas lobby and, more discouragingly, by those who do the lobby’s work without pay or benefit: the average rank-and-file Joe, who is misinformed about the merits of biofuels and spreads that misinformation as truth. I asked him if he knew about oil and gas subsidies he as a taxpayer is funding, to which he responded no. I asked him if, instead of sending untold billions, even trillions, of dollars to foreign governments whose agendas include collapsing western culture, would he support retaining at least some of that money within our own borders where it creates jobs, fuel, tax money and investment in the future; and his response was that we can produce enough of our own oil if the government would ease drilling restrictions. When I asked him if he realized oil was a finite material and when it’s gone, it’s gone, he shifted the argument to food crop displacement. My visitor had never heard of distillers grains and its role in the food vs. fuel debate, or how corn oil is being extracted from distillers grains to make biodiesel—our next topic. He said when his company’s trucks started running on biodiesel a few years ago, many of them had troubles. I asked how long ago this was, and mentioned some of the quality issues present early on and the achievements made in improving the quality standard. He did concede that the switch to ultra-low sulfur diesel has caused some technical issues in diesel and biodiesel blends, so all of his blame was not placed squarely on biodiesel.

Our discussion then advanced to next-generation biofuels and biobased chemicals. He hadn’t really heard anything about second-gen fuels, and all he said about biobased chemicals was “they need improvement.” I gave him a couple of issues of Biorefining Magazine and asked him to take them with when he left.

The point of my relaying this to readers is two-fold. One, we should always be prepared to discuss the merits of first- and second-generation biofuels and biobased chemicals with those who see them through a very narrow, tainted scope. And two, no matter what, the issues of cost, subsidization, performance, quality and availability, among others, will remain paramount as the next-generation of biofuels and biobased chemicals develop and are forced to endure the same old arguments as their predecessors. The advantage we have is 30-plus years of lessons learned.

for more news, information and perspective, visit biorefiningmagazine.com/BLOG/READ/BIOREFINING

ASSOCIATE EDITORS Bryan Sims profiles a sector leader and its biorefining-related activities in “Royal DSM’s Partnerships, Market Penetration & Progress” on page 22.

4 | Biorefining Magazine | september 2011

Luke Geiver talks to academic leaders who have success in taking research to industry in “The Bio-Academic Entrepreneurs” on page 30.

Erin Voegele delves into the U.S. energy department’s Advanced Research Projects AgencyEnergy in “High Risk, High Reward” on page 36.

EDITORIAL EDITOR Ron Kotrba rkotrba@bbiinternational.com ASSOCIATE EDITORS Erin Voegele evoegele@bbiinternational.com Luke Geiver lgeiver@bbiinternational.com Bryan Sims bsims@bbiinternational.com COPY EDITOR Jan Tellmann jtellmann@bbiinternational.com

ART ART DIRECTOR Jaci Satterlund jsatterlund@bbiinternational.com graphic designerS Erica Marquis emarquis@bbiinternational.com Lindsey Noble lnoble@bbiinternational.com

PUBLISHING CHAIRMAN Mike Bryan mbryan@bbiinternational.com CEO Joe Bryan jbryan@bbiinternational.com VICE PRESIDENT Tom Bryan tbryan@bbiinternational.com

SALES VICE PRESIDENT, SALES & MARKETING Matthew Spoor mspoor@bbiinternational.com EXECUTIVE ACCOUNT MANAGER Howard Brockhouse hbrockhouse@bbiinternational.com SENIOR ACCOUNT MANAGER Jeremy Hanson jhanson@bbiinternational.com ACCOUNT MANAGERS Chip Shereck cshereck@bbiinternational.com Marty Steen msteen@bbiinternational.com Bob Brown bbrown@bbiinternational.com Andrea Anderson aanderson@bbiinternational.com Dave Austin daustin@bbiinternational.com Nick Jensen njensen@bbiinternational.com CIRCULATION MANAGER Jessica Beaudry jbeaudry@bbiinternational.com ADVERTISING COORDINATOR Marla DeFoe mdefoe@bbiinternational.com Senior Marketing Manager John Nelson jnelson@bbiinternational.com

Customer Service Please call 1-866-746-8385 or email us at service@bbiinternational.com. Subscriptions to Biorefining Magazine are free of charge to everyone with the exception of a shipping and handling charge of $49.95 for any country outside the United States, Canada or Mexico. To subscribe, visit www.biorefiningmagazine.com or you can send your mailing address and payment (checks made out to BBI International) to: Biorefining Magazine Subscriptions, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203. You can also fax a subscription form to (701) 746-5367. Back Issues, Reprints and Permissions Select back issues are available for $3.95 each, plus shipping. Article reprints are also available for a fee. For more information, contact us at (701) 746-8385 or service@bbiinternational.com. Advertising Biorefining Magazine provides a specific topic delivered to a highly targeted audience. We are committed to editorial excellence and high-quality print production. To find out more about Biorefining Magazine advertising opportunities, please contact us at (701) 746-8385 or service@bbiinternational.com. Letters to the Editor We welcome letters to the editor. Send to Biorefining Magazine Letters to the Editor, 308 2nd Ave. N., Suite 304, Grand Forks, ND 58203 or e-mail to rkotrba@bbiinternational.com. Please include your name, address and phone number. Letters may be edited for clarity and/or space.

Please recycle this magazine and remove inserts or samples before recycling TM

COPYRIGHT Š 2011 by BBI International

september 2011 | Biorefining Magazine | 5

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advanced advocacy

Lights, Camera, Congress…

Can America afford to stick around for the second act?

BY Michael mcadams

W

ashington’s last minute maneuvering this summer got me thinking that the country-spun political wisdom of Will Rogers continues to hold true even in today’s instant access world where one vote or press conference on Capitol Hill can have immediate worldwide consequences. I’m reminded of the observation the Oklahoman once made that, “This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer.” Well that baby has certainly been busy and as Congress adjourned for its annual summer recess, Wall Street and other world markets are signaling the need for adult supervision in D.C. The procrastination of the inevitable on Capitol Hill was enough to make a high school senior smile with envy but left the rest of us scratching our heads while watching the value of our investments plummet. Washington’s jolting performance and the economic aftershocks have those of you on the verge of commercializing your replacement fuels questioning whether Congress and the White House can successfully provide the policy tools needed to ensure certainty in the markets for your next step.

Unfortunately, I don’t have encouraging news to share with you as I look at the renewable fuels landscape right now in Washington. Here’s a recap. For three months, we saw an effort to amend and redirect the funds associated with the ethanol tax credit. The Senate, for the first time since 1978, actually voted to repeal the long-standing credit that has supported the domestic ethanol industry. By a vote of 73 to 27, senators voted to repeal the credit effective July 1.

Following that vote, however, Sens. Thune, Klobachar and Feinstein attempted to negotiate a compromise to repeal the ethanol credit, 6 | Biorefining Magazine | september 2011

bank $1.4 billion in savings to the treasury and allocate around $800 million for infrastructure and extending the cellulosic production tax credit. That deal ran into a number of snags and officially terminated July 31. Unable to pass this deal through the entire Congress, as part of a debt ceiling deal that was clear of any tax provisions, meant that $800 million of anticipated savings were now gone as the credit continues to operate across July and August at a burn rate of $400 million per month.

Further complicating the current political and legislative environment was that agreement to raise the debt ceiling. Prior to adjournment, after months of vitriolic wrangling, lawmakers agreed to cut the budget by $917 billion over the next 10 years in return for raising the debt limit.

The deal essentially allows the president to raise the debt as long as Congress agrees to pass an equal amount of spending cuts or tax increases.

The agreement also creates a first-of-its-kind congressional super committee made up of an equal number of Republicans and Democrats from each respective chamber.

In order to raise the debt limit, which everyone agrees will be needed, Congress must pass a plan to reduce spending or raise revenue on the order of $1.5 trillion over 10 years by Dec. 23. This plan is to be finished by the new super committee by Nov. 23. Then an up or down vote will be taken on the proposal by both chambers of Congress. If it fails, an automatic sequestration of across-the-board spending cuts will go into place up to $1.2 trillion from both mandatory and discretionary programs.

What does all this mean to our domestic advanced biofuels industry? If Congress does not reach agreement, the military budget could see significant cuts in the order of $300 to $600 billion over 10 years. That would not be particularly helpful in the Pentagon’s efforts to work with renewable fuels moving forward.

Secondly, if the current polar opposite view continues on tax increases or tax changes, this would make it extremely difficult to extend many of the four current biofuels provisions that expire at the end of this year, the ones I outlined here last month. If you thought 2009 and 2010 were difficult, wait until you see this fall’s effort to extend any of these credits. In a future column, we can explore why letting a current credit expire is viewed by several conservative icons as raising taxes. But that is for another day.

The good news for America’s domestic advanced biofuels industry is our continued support from members, both Republican and Democrat, who recognize not only the need, but also the promise and desire to see advanced and cellulosic replacement fuels come to the market.

With that in mind, this is a critical time where all renewable energy elements need to work together.

As an industry, we will need to continue to work closely with Congress by identifying smarter investment opportunities for federal dollars that will help us successfully cross the so-called Valley of Death and commercialize our advanced technologies. So, before we’re knee-deep into next year’s presidential political wrangling, we need to do some serious rethinking about our expectations of Washington’s role and taxpayer support by presenting a solid return on investment across a range of national interests. If we do not make our case as a crucial element for funding, it may be another two years before we can create significant partnerships with the federal government.

Author: Michael McAdams President, Advanced Biofuels Association (202) 469-5140 Michael.McAdams@hklaw.com

events calendar |

International Biorefining Conference & Trade Show

September 14-16, 2011

Hilton Americas – Houston Houston, Texas The International Biorefining Conference & Trade Show brings together agricultural, forestry, waste, and petrochemical professionals to explore the value-added opportunities awaiting them and their organizations within the rapidly maturing biorefining industry.

(866)746-8385 www.biorefiningconference.com

Northeast Biomass Conference & Trade Show

October 11-13, 2011

Biomass Event Hotspot: San Francisco in January 1/16 If you go to one biomass event in the western U.S. next year, make it BBI International’s Pacific West Biomass Conference & Trade Show, produced jointly by Biomass Power & Thermal and Biorefining magazines.

The PacWest biomass show heads to the Bay area this year, which will be held Jan. 16-18 at the San Francisco Marriot Marquis.

The conference, one of three distinct regional offshoots of BBI’s International Biomass Conference & Expo, will feature more than 60 speakers in four tracks: • • • •

Biomass power and thermal Feedstock Biomass project development and finance Biorefining

The third annual Pacific West Biomass Conference & Trade Show will connect the area’s current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with: • • • • •

Waste generators Aggregators Growers Municipal leaders Utility executives

• • • •

Technology providers Equipment manufacturers Investors Policy makers

The PacWest biomass show is designed to help you, the biomass industry stakeholder, identify and evaluate solutions that fit your operation.

It’s time to improve your operational efficiencies and tap into the revenuegenerating potential of sustainable biomass resources in the region.

Register today at http://pacificwest.biomassconference.com.

Westin Place Hotel Pittsburgh, Pennsylvania With an exclusive focus on biomass utilization in the Northeast—from Maryland to Maine—the Northeast Biomass Conference & Trade Show will connect current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with waste generators, aggregators, growers, municipal leaders, utilities, technology providers, equipment manufacturers, investors and policymakers.

(866)746-8385 www.biomassconference.com/northeast

Algae Biomass Summit

October 24-27, 2011

Hyatt Regency Minneapolis Minneapolis, Minnesota Organized by the Algal Biomass Organization and coproduced by BBI International, this event brings current and future producers of biobased products and energy together with algae crop growers, municipal leaders, technology providers, equipment manufacturers, project developers, investors and policy makers. It’s a true one-stop shop—the world’s premier educational and networking junction for all algae industries. Register by Sept. 12 and save $200.

(866)746-8385 www.algaebiomasssummit.org

Southeast Biomass Conference & Trade Show

November 1-3, 2011

Hyatt Regency Atlanta Atlanta, Georgia With an exclusive focus on biomass utilization in the Southeast—from the Virginias to the Gulf Coast—the Southeast Biomass Conference & Trade Show will connect the area’s current and future producers of biomass-derived electricity, industrial heat and power, and advanced biofuels, with waste generators, aggregators, growers, municipal leaders, utility executives, technology providers, equipment manufacturers, investors and policy makers. Register by Sept. 20 and save $200.

(866)746-8385 www.biomassconference.com/southeast

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talking Point

Biobased Materials: Strengthening the US Green Economy The U.S. must establish itself now as a center of excellence in biomaterial supply before it’s too late By atul thakrar

W

inds of change in consumer preference and awareness are driving companies to use materials and ingredients inside their products that are less toxic, more biodegradable and made from renewable resources. The demand for these features is driving manufacturers in the building, automotive, medical devices, packaging and toy industries to reach back to the chemical ingredient suppliers to provide solutions that deliver on both performance and a sustainable environmental profile. We are on the cusp of an extraordinary opportunity for the U.S. chemical industry, and the U.S. manufacturing industry as a whole. As a nation, we need to put our commitment to green chemistry into action and develop the infrastructure to catalyze the biobased materials industry.

Segetis, as well as others such as Natureworks, Elevance, Gevo, and Metabolix, are utilizing alternate raw materials streams to spur innovation in sustainable chemistry. Companies such as these reduce our nation’s dependence on fossil fuels by leveraging the vast acreage across America that is used to grow corn, grass, wood and other agricultural feedstocks. The primary harvest or waste streams (husks, cobs, wood pulp liquor) can be converted into biobased products that deliver superior performance, are safer for our children,

8 | Biorefining Magazine | september 2011

better for our environment and benefit our economic viability as a nation. This infusion of new technologies is beginning to reenergize the U.S. chemical industry, which is home to some of the largest and best companies in the world, with some of the brightest and most qualified labor.

The U.S. trade commission reported that in 2007, the biobased product industry employed nearly 6,000. Growth has been significant since then with jobs in the sector now in the tens of thousands.

A 2009 USDA analysis predicts that with proper support, the industry could create or save tens of thousands more jobs in the future. This is a remarkable recovery from the 5.8 million jobs in the U.S. manufacturing industry and nearly 200,000 jobs in the U.S. chemical industry lost between 2000 and 2010.

The biomaterials era is an emerging industry. Starting something new and growing from a small base takes time and capital. The chemical industry in particular is capital intensive. Scale is enormous with many of the markets demanding billions of pounds. Building biomaterials volume fast and large enough is challenging. Financing this growth is the No. 1 challenge.

The biobased materials industry has seen that venture funds or private investment funds are available to spur innovation and build demonstration plants. However, fewer funding options exist to build the large-scale plants needed to put our industry on the map and realize the huge potential. Public markets are starting to become more active after the deep recession. Government funding

opportunities currently available only for biofuels must be opened up to the broader biobased materials industry.

Government funding serves a critical need to de-risk the first-of-its-kind capital investment. Manufacturing investment incentives would also deliver a huge boost to catalyze the bio industry. There are many other support mechanisms, but the point is that in order to realize this extraordinary opportunity, we need to do what it takes now to make sure we establish the U.S. as a center of excellence in biomaterial supply, before it’s too late.

This is our chance. We know that dependence on oil is unsustainable in the long-term and the resources of the world are unevenly distributed. If we invest today in our biorefineries and the products they produce, we bring a bounty of benefits: we secure our future feedstocks for fuel and valueadded chemicals; infuse growth needed in jobs and manufacturing output; make a commitment to environmental stewardship; and leave a legacy to our future generations.

So let’s take advantage of these winds of change and set our course to a winning solution that will strengthen the U.S. green economy.

Author: Atul Thakrar President and CEO, Segetis (763) 795-7200 info@segetis.com

LEGAL PERSPECTIVE |

Foreign Corrupt Practices Act: The Essentials What biofuel companies need to know about the FCPA

By Richard Weiner

W

ith more biofuel companies doing business overseas, understanding the risks and dangers of violating the U.S. Foreign Corrupt Practices Act is critical. The FCPA makes it a felony for a U.S. citizen (or a foreigner acting on his behalf) to offer or make a corrupt payment to a foreign official or political party for purposes of obtaining or retaining business.

The FCPA prohibits U.S. individuals or companies from paying, authorizing or promising payment of money or anything of value to any foreign official, political party or candidate for foreign political office, for the purpose of influencing any official act or decision, including omission to act, to induce such official to use his influence with a foreign government or instrumentality thereof to affect or influence any act or decision of such government or instrumentality to assist the U.S. individual or company in obtaining or retaining business for or with, or directing business to, any person. The prohibitions of the FCPA apply to all U.S. individuals and companies.

FCPA regulations also apply to foreign firms and persons who take any act in furtherance of such a corrupt payment on behalf of a U.S. individual or company.

“Corrupt behavior” is established when the payment made to a foreign official was intended to induce the recipient to misuse his or her official position or to influence someone else to do so. The payment must have been made voluntarily and intentionally, and with the purpose of accomplishing an unlawful end or result by some unlawful means. To establish corrupt behavior, the U.S. government must establish corrupt intent and knowledge that the action was corrupt. The U.S. government is required to establish that the individual making the payment satisfies the “knowing standard” where “such person is aware that such person is engaging in such conduct that such circumstances exists, or that such result is substantially certain to occur; or such person has a firm

belief that such circumstance exists or that such result is substantially certain to occur.” Congress intended this to apply to “a conscious disregard or deliberate ignorance of known circumstances that should reasonably alert one to the high probability of violations of the FCPA.” Simple negligence or mere foolishness is not a basis for liability.

While the FCPA prohibits direct payments to any foreign official, foreign party official or candidate for political office, it also forbids payments to “[a]ny person, while knowing that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to any foreign official to any foreign political party or official thereof, or to any candidate for foreign political office.” This covers the payment of money when the U.S. individual or company knows that the payment will ultimately be made to the foreign official to accomplish the intended act that is in violation of the FCPA. The U.S. government must establish that the payment was made directly or through a third party to a foreign official. A foreign official has been defined to include “any officer or employee of a foreign government or any department, agency, or instrumentality thereof, or any person acting in an official capacity for or on behalf of any such government or department, agency, or instrumentatlity.”

The FCPA prohibits payments made in order to assist the firm in obtaining or retaining business for or with or directing business to any person. The U.S. Department of Justice interprets “obtaining or retaining business” broadly, such that the term encompasses more than the mere award or renewal of a contract. It should be noted that the business to be obtained or retained does not need to be with a foreign government or foreign government instrumentality.

The FCPA includes an exception for payments made to a foreign official, political party or party official for the purpose of facilitating or expediting or securing the performance of a “routine governmental action” by the official or party. “Routine governmental action” is defined

as an action ordinarily and commonly performed by a foreign official in connection with obtaining permits, licenses, or other official documents to enable another person to do business in a foreign country; processing governmental papers such as visas and work orders; providing police protection, mail pick-up and delivery, or scheduling inspections associated with contract performance or inspections related to the transit of goods across country; providing phone service, power, and water supply, loading and unloading cargo, or protecting perishable products or commodities from deterioration; or actions of a similar nature.

A “routine governmental action” does not include any decision or action by an official involved in the decision-making process concerning whether, or on what terms, to award new business to, or to continue to do business with, a particular party.

Criminally, a U.S. company can be fined up to $2 million. Officers, directors or shareholders acting on behalf of the company who willfully violate the FCPA’s provisions can be fined not more than $100,000 and imprisoned for not more than five years or both. Any employee, agent or representative of the U.S. company who is a U.S. citizen, national or resident, or who is otherwise subject to the jurisdiction of the U.S. and who willfully violates the FCPA can be fined not more than $100,000 or imprisoned not more than five years or both. The penalties listed above cannot be paid by the U.S. company on behalf of the sanctioned individual. Civilly, a U.S. company that violates the FCPA can be subject to a civil penalty of not more than $10,000 in an action brought by the SEC or the U.S. Attorney General. Officers, directors, employees, agents or shareholders acting on behalf of the U.S. company who violate the FCPA’s provisions can be subject to a civil penalty of not more than $10,000 in an action brought by the SEC or the U.S. Attorney General.

Author: Richard Weiner Vice President, Fredrikson & Byron (612) 492-7009 rweiner@fredlaw.com

september 2011 | Biorefining Magazine | 9

business briefs People, Partnerships & Deals

Oil extraction technology company OriginOil Inc. developed a real-time control network that supervises continuous algae harvesting operations at large-scale algae production sites. The company recently filed for patent protection on the new control technology, which aims to simplify the complex task of computerizing an intelligent control system for commercial environments where all algae production and extraction processing systems are integrated. Codenamed Green Stick, the network will be installed at Australian algae producer MBD Energy’s power plant test site where it will interface with MBD’s own growth control system to integrate operations with OriginOil’s proprietary Single Step Extraction unit and downstream concentration and separation processes. Measuring and controlling the hundreds of interactions that are critical to automate and scale large production operations, including algae growth, dewatering, flocculation, cell lysing and oil recovery, have so far been accomplished in the industry with little automated process sophistication. The real-time control network system is managed by a Supervisory Control and Data Acquisition System that connects the biology and engineering with high throughput process control.

Netherlands-based lactic acid producer Purac, a subsidiary of global bakery ingredients supplier CSM, and BASF SE, the world’s leading chemical company, are leaning toward taking their two-year development agreement further with the possible 12 | Biorefining Magazine | september 2011

formation of a joint venture to produce biobased succinic acid. Both companies say the complementary strengths in fermentation and downstream processing led to the development of a sustainable and highly efficient manufacturing process based on a proprietary microorganism, Basfia succinicproducens, a natural producer of succinic acid that can process a range of cellulosic and hemicellulosic sugars contained in biomass. The demand for succinic acid is anticipated to see steady growth in the coming years. Main drivers are expected to be bioplastics, chemical intermediates, solvents, polyurethanes and plasticizers. During the existing cooperation, according to BASF, critical steps of the jointly developed production process have been validated in several successful production campaigns. The resulting volumes were used to evaluate the market. The newly developed process would combine high efficiency with the use of biobased feedstocks and the fixation of carbon dioxide during production. Purac currently has six lactic acid production units operating across the globe.

After nearly five years of research and development, the work of Pacific Renewable Fuels and Chemicals, and Red Lion Bio-Energy, has become SynTerra Energy Inc., a new biorefining company that combines pyrolysis and syngas technologies to produce synthetic diesel and renewable chemicals. In 2006, Red Lion Bio-Energy, a Toledo, Ohio-based company, began working with the Renewable Energy Institute International of Sacramento to test the pyrolysis process developed by Red Lion Bio-Energy. The process involves steam reformation with pyrolysis followed by a Fischer Tropsch process that converts the syngas with a catalyst designed by SynTerra into synthetic diesel. Known as the Syntrex process, it creates a syngas with a low volume of contaminants helping to lower the cost of downstream purification. The syn-

thetic diesel contains zero sulfur and has a 50 percent higher cetane level compared to conventional diesel fuel, all with a 50 percent greenhouse gas reduction.

Butamax Advanced Biofuels LLC announced the U.S. Patent and Trademark Office has granted it another patent addressing foundational methods for lowcost biobutanol production. The patent addresses the fermentative production of four carbon alcohols. “Specifically, butanol, preferably isobutanol is produced by the fermentative growth of a recombinant bacterium expressing an isobutanol biosynthetic pathway,” states the patent abstract. Butamax filed for the patent in January 2008.

On Aug. 9, Butamax also announced the filing of a second patent infringement case against Gevo, alleging Gevo has unlawfully used Butamax technology. The lawsuit was filed in U.S. District Court in the District of Delaware. The lawsuit addresses Gevo’s infringement of the patent granted the same day. In response, Gevo issued a statement asserting that the lawsuit is without merit, and that the new lawsuit will be consolidated into a single case with the lawsuit Butamax filed in January.

Emeryville, Calif.-based biotechnology firm Amyris Inc. has signed a collaboration agreement with Japan-based resin and polymer manufacturer Kuraray Co. Ltd. to develop innovative polymers made from Amyris’ biobased farnesene, Biofene, as a replacement for petroleum-based feedstocks such as butadiene and isoprene in the production of specified classes of highperformance polymers. Upon successful

business briefs |

completion of the technical development program for the first polymer, Amyris and Kuraray will enter into a supply agreement for Kuraray’s exclusive use of Biofene in the manufacturing and commercialization of the polymer products. Information as to when Amyris would begin supplying its Biofene to Kuraray, at what capacity it would be used and at what location it would be integrated couldn’t be verified.

California-based bioplastic producer Cereplast Inc. is hosting an online forum allowing members of the public to engage in the development of proposed usage guidelines for its new bioplastics symbol, which was selected this spring via the company’s “Make Your Mark” competition. According to Cereplast, the goal of the symbol is to help consumers identify products and packaging made from bioplastics.

The online comment period will be completed in two phases, with phase one closing mid-August, followed by Cereplast posting a new draft of the guidelines online and opening up a second comment period. The bioplastics symbol is expected be available for use by Nov. 15. One of the most important topics of feedback is defining what type of material will qualify as a bioplastic for the purpose of symbol licensing. Members of the public and representatives of industry are expected to provide feedback on the appropriate minimum biobased content level of plastic material that can be labeled with the symbol.

Germany-based international specialty chemicals company Süd-Chemie AG held groundbreaking July 26 for a 1,000 tonper-year demonstration-scale cellulosic ethanol plant in Straubing, located in the Lower Bavaria region. The plant, which is

expected to begin production by the end of the year, will convert wheat straw collected from area farmers to ethanol using SüdChemie’s trademarked sunliquid process.

The company said the demonstration plant will be the largest ag waste-to-ethanol plant in Germany when complete. The sunliquid process is a biotechnological process that utilizes specially developed enzymes to dissolve the cellulose and hemicelluloses into sugar monomers in high yields. The process then uses specialized yeasts developed by Süd-Chemie to simultaneously convert the C5 and C6 sugars to ethanol in a “one-pot reaction,” which increases ethanol yields by up to 50 percent. Lignin produced from the process will be used to provide power for the facility.

Houston-based Terrabon Inc. has been awarded a $9.6 million, 18-month contract by Logos Technologies Inc. to design a renewable and more economical jet fuel production solution for the Defense Advanced Research Projects Agency. Started in April, a customized production process for DARPA will be engineered, constructed and operated at Terrabon’s demonstration facility in Bryan, Texas, to produce 6,000 liters (1,585 gallons) of jet fuel using the company’s proprietary MixAlco biomass conversion technology. Developed at Texas A&M University, Terrabon’s MixAlco process converts low-cost, nonfood biomass into valuable chemicals such as acetic acid, ketones and alcohols that can be further

processed into renewable fuels, such as biojet fuel. The new contract with Logos represents the second phase of a partnership that originated more than a year ago to validate Terrabon’s MixAlco process to produce biojet fuel. In the first phase, Terrabon, along with other third-party collaborators, produced 100 liters of biojet fuel with Logos, DARPA’s main contractor assisting in the commercialization effort to bring biojet fuel technologies to market. Terrabon intends to use the 6,000 liters produced at the Bryan facility for fit-for-purpose, performance and OEM testing to begin qualification for the alcohol-to-jet pathway under the ASTM D7566 specification.

Dow Chemical Co. and Japan-based Mitsui & Co. Ltd. have announced the formation of a joint venture and execution of a memorandum of understanding to provide innovative and sustainable biopolymers for use in the high-performance flexible packaging, hygiene and medical markets. Mitsui will become a 50 percent equity interest partner in Dow’s sugarcane growing operation in Santa Vitória Minas Gerais, Brazil. According to Dow, the initial scope of the joint venture includes production of sugarcane ethanol, which will be used as a feedstock to produce biopolymers. The first phase includes construction of a new sugarcane-to-ethanol production facility in Santa Vitória to begin this fall and be complete in 24 months.

Share your industry briefs To be included in Business Briefs, send information (including photos and logos if available) to: Industry Briefs, Biorefining, 308 Second Ave. N., Suite 304, Grand Forks, ND 58203.

You may also fax information to (701) 746-8385, or e-mail it to rkotrba@bbiinternational.com. Please include your name and telephone number in all correspondence.

september 2011 | Biorefining Magazine | 13

PHOTO: U.S. NAVY

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Biorefining News & Trends

As You Were Secretary Mabus says advanced biofuels have to work the way existing fuels do. “We can’t go around changing engines,” he says.

Fighting for Biofuels The U.S. military still sees benefits in biofuels

U.S. Navy Secretary Ray Mabus appeared on the television show Platts Energy Week in July to talk about the Navy’s goals and ambitions for biobased fuels. During his appearance, Mabus stressed that the Navy has always been a leader in U.S. energy innovation. “The Navy has always led when we’ve changed energy sources,” he says. “Sail to coal; coal to oil; oil to nuclear; and now I think we’re on the verge of doing that again, to change to alternative fuels.”

The Navy and Marine Corps have set an ambitious goal of utilizing 8 million barrels (336 million gallons) of alternative fuels annually by 2020. Mabus says that goal is absolutely possible. “There are so many good ideas out there right now; so many people working on this and what we can do—what the Navy can do, what the military can do—is we can bring a market,” he adds. “We use a lot of fuel and we can help get some of these 14 | Biorefining Magazine | september 2011

smaller companies or some of these newer technologies over from being just a good idea to being commercially viable.”

Mabus, however, also notes that Fighting for the alternative fuels it Renewables Navy adopts must be useSecretary Ray Mabus able in existing ship, says it is “absolutely possible” for the Navy aircraft and transporto reach its goal of tation vehicle engines. utilizing 8 million barrels (336 million This is because the gallons) of alternative Navy is already operfuels annually by 2020. ating with the vast majority of the fleet it will be employing in 2020.

“We can’t go around changing engines,” he says. “We’re just changing the type of fuel that is used and it’s got to work exactly the way the fuel works today.”

During the interview, Mabus also outlined several actions the Navy is taking to support the development of advanced biofuels.

This includes meeting with venture capitalists and finance organizations to educate them on the market the military offers and the types of fuels it needs. “We tell them to bring us the companies that can do it,” Mabus says.

Mabus also notes he has testified before congressional committees to encourage the revision of military offtake agreements for fuels, which are currently limited to five years.

“I think people are recognizing the concern there,” he says. “It’s not just Navy; it’s government-wide. I hope there will be some progress there. You can only do five years for fuel; you can do up to 30 years for electricity, so it’s just sort of an order of semantics, but I hope we can get there.” —Erin Voegele

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Nothing to Waste in Frederica Danish city to test Dong Energy/Inbicon-inspired MSW-to-bioliquid process Dong Energy wishes there were more cities like Frederica. The Denmark town is participating in a waste refinery project that will convert municipal solid waste into a bioliquid suitable for biogas or, as Dong Energy hopes, second-generation biofuel.

The technology, developed in part between Dong Energy and subsidiary Inbicon, is based on a process that heats MSW in a reactor at low temperatures and atmospheric pressures, cools it, then treats the MSW mix with a cocktail of enzymes. The large plastic and glass pieces are removed and recycled, and everything else is converted into a bioliquid. The process requires no pretreatment or presorting of the MSW.

It’s called REnescience, and Jonny Trapp Steffensen, international sales manager for the process, says Dong Energy has two major stakes in the Frederica project that is putting the REnescience process to the test. The first is to further develop the gas-upgrading facility for injection into the natural gas grid based on biogas from Frederica’s municipal wastewater treatment plant. The second is to show “that the REnescience concept fits well with a municipal wastewater treatment plant,” he says. “The bioliquid has a strong biogas potential and can thus serve as a booster to existing biogas plants that run on animal manure or wastewater sludge,” he adds.

Early on in the project, the tests were conducted at an Inbicon facility. Now, any municipality with the right vision can put the process to use. Nanna Dreyer Norholm, senior innovation manager for the facility in Frederica, and the rest of her staff can help with design and support for the process. Or they can also provide a back-of-the-envelope type of feasibility assessment. Or, perhaps they can offer a test run to show that the process works on your waste too.

—Luke Geiver

Intermediate Innovation

As part of a major capital investment at its Ingeo lactide and biopolymer production facility in Blair, Neb., Minnetonka, Minn.based NatureWorks LLC will soon be the world’s first to offer in commercial volumes a high-purity, polymer-grade lactide rich in the stereoisomer meso-lactide.

Identified as Ingeo M700 lactide, the new material can be used as a chemical intermediate for a variety of applications such as for copolymers, amorphous oligomers and polymers, grafted substrates, resin additives/modifiers, adhesives, coatings, elastomers, surfactants, thermosets and solvents.

Samples of the new polymers and lactide intermediates will be available in 2012 with commercial sales expected of Ingeo M700 slated for 2013. NatureWorks began offering L-lactide intermediates in 2010.

According to Manuel Natal, global segment leader for lactide derivatives at Na-

tureWorks, until now several niche-focused producers have attempted to address the functionality requested by the market with what are described chemically as racemic lactides.

“Compared to these, the high-purity Ingeo M700 will be lower in cost, easier to process and an overall better alternative to high-priced racemic lactide, as well as L- and D-lactides, in a host of industrial applications,” Natal says.

A lower melting point, improved ester delivery, lower water content, less catalyst usage and lower reaction temperatures are several other significant advantages Ingeo M700 is expected to have over conventional racemic lactide.

NatureWorks’ family of Ingeo biopolymers are produced from starch such as dextrose with microorganisms that create lactic acid and then form long chain lactide mono-

PHOTO: NATUREWORKS LLC

NatureWorks to broaden biopolymer portfolio with new Ingeo lactide

Almost Ready Natureworks anticipates commercial sales of meso-lactide-rich Ingeo M700 in 2013.

mers. Through polymerization, the chains form polylactide polymers, which are then pelletized. —Bryan Sims september 2011 | Biorefining Magazine | 15

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Collaboration by Design

will spearhead the project, “Utilizing How MSW will be efficiently, economically Municipal Solid Waste as a Bioutilized in the Tar Heel State fuel Feedstock,” in collaboration Finding cost-effective means for dispos- with Maverick Biofuels, North Carolina State ing or diverting the millions of tons of MSW University and Waste Industries USA Inc. According to Bryan Staley, EREF presigenerated each year may be a dilemma faced by many counties and municipalities across dent and CEO, the thrust of the 16-monththe nation, but those in North Carolina are long project is to determine the potential for inching closer to finding a solution, thanks to using MSW as a feedstock for biofuel produca $93,119 grant from the North Carolina Bio- tion, such as biobutanol, by evaluating various fuels Center to help fund a project for cost- conversion technologies such as gasification, effectively utilizing MSW for conversion into pyrolysis and wet oxidation; and infrastructure needed to make the entire process viable biofuels and biochemicals.

The Environmental Research and Edu- at scale. Additionally, NCSU will conduct a cation Foundation received the funding and life-cycle analysis as part of the project to as-

sess which conversion technologies might be the most cost-effective, evaluate cost benefits and assess carbon intensity levels.

“We’re trying to develop some numbers that would bracket out the various MSW conversion technologies that are out there,” Staley says. “We’re hoping that the life-cycle analysis will be reflective of the inclusion and the exclusion of the various initial feedstock that would come in.”

Maverick Biofuels’ role will be to provide technical assistance in conversion technology, Waste Industries will provide the MSW feedstock and EREF will aggregate information on the variability of waste composition and waste generation points, as well as evaluate ideal site location, according to Staley.

—Bryan Sims

Setting the Record Straight Despite reports that Ineos New Planet BioEnergy’s Indian River BioEnergy Center cellulosic ethanol biorefinery project in Vero Beach, Fla., may be running behind schedule, CEO and Chairman Peter Williams says the project is, in fact, on schedule and expected to meet its commission date in April 2012.

“Things are progressing well and are on track at the Vero Beach site,” Williams says.

“As is the case with all major projects as complex as this, elements will change, but this does not change our expected start date.”

Specifically, reports appear to have focused on a change in the phasing of recruitment for the project and the necessary administrative steps taken in the grant funding with Indian River County that, according to Ineos Bio, had no bearing on the completion of the project.

“Ineos Bio has consistently stated in its announcements that the first bio-ethanol facility will be mechanically complete in April 2012 and will be commissioned in second quarter 2012; this has not changed,” said Ineos in a company statement.

The biorefinery, which officially broke ground in February, is slated to produce 8 MMgy of cellulosic ethanol and 6 megawatts (gross) of renewable power from local yard, 16 | Biorefining Magazine | september 2011

vegetative and household wastes when operational.

The renewable electricity is expected to power approximately 1,400 homes.

Located at a former citrus processing plant site, the BioEnergy Center will provide 380 direct and indirect jobs (including 175 construction jobs) over Since Then Ineos Bio insists its plan for completion of construction in the next year and 50 fullVero Beach, Fla., targeted for April 2012, is the same as it was when the groundbreaking occurred early this year. time jobs in Indian River County where current unemployment is around 13.6 percent, the sixth country. In late 2009, the project received a $50 million U.S. DOE grant as part of its Sechighest in the state.

In January, the Ineos Bio/New Planet tion 932 Integrated Biorefinery program.

The key to Ineos’ conversion technology Energy joint venture received a $75 million USDA loan guarantee as part of the USDA’s lies in its patented anaerobic fermentation 9003 Biorefinery Assistance Program to help step. During this process, naturally occurring cover the cost of building the plant. In addi- bacteria convert gases derived from the biotion to support from the state of Florida in mass into ethanol.

In August, USDA Secretary Tom Vilsack the form of a $2.5 million grant, the Indian River BioEnergy Center received significant paid a visit to Vero Beach to tour the facilsupport from the federal government as part ity. While there, Vilsack announced a series of of its ongoing effort to reduce U.S. depen- joint USDA and DOE grants to spur research dence on foreign oil, spur the creation of the into improving the efficiency and cost-effecdomestic biorefining industry and provide tiveness of growing biofuel and bioenergy new clean technology jobs throughout the crops. —Bryan Sims

PHOTO: INEOS BIO

Ineos Bio makes progress on nation’s first cellulosic biorefinery project

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An Uncertain Future The USDA announced four new Biomass Crop Assistance Program project areas spanning six states in late July, bringing the number of project areas named in the past few months to nine. Together, the nine project areas span an estimated 330,000 acres of energy crop production.

Two of the new BCAP project areas will target the growth of camelina in areas of California, Montana, Washington and Oregon.

The third will encourage the growth of hybrid poplar trees in Oregon, while the fourth is designed to support the growth of switchgrass in Kansas and Oklahoma.

Although the past year has been highly successful for BCAP, the future of the program remains uncertain. According to Todd Atkinson, chief of staff at the USDA’s Farm Service Agency, the funding for the current fiscal year, which ends Sept. 30, has already been allocated. This means no new project areas are expected to be announced before that date. Additional project areas could be named during the next fiscal year, as long as more funding is allocated to the program.

Existing project areas, however, will not be affected if Congress fails to fund the program in the next fiscal year. According to Atkinson, funding that has been obligated to existing project areas and has been allocated via contracts the FSA has entered into with projects is already in hand. “If funding [for BCAP] is terminated into the next fiscal year, it will not affect any of the contracts we enter into right now,” he says.

Regarding funding for the next fiscal year that begins Oct. 1, Atkinson notes that the U.S. House of Representatives has passed an agricultural appropriations bill, which proposes zeroing out funding for the BCAP program. However, the U.S. Senate has not acted on its version of the bill. Once the Senate acts, both versions of the bill will have to be reconciled in a conference committee. It remains to be seen what the final outcome will be for BCAP. Federal lawmakers may also be working on the 2012 Farm Bill soon.

It is impossible to project at this time whether that bill will reauthorize the BCAP Populus Hybrids Hybrid poplar trees are crosses between two or more species of Populus and are characterized by rapid growth and easy program. propagation.

The biorefining industry will clearly benefit if the program is re- three years before they are mature enough to authorized and allocated additional funding. harvest, so an investment needs to be conAtkinson stresses how important feedstock ducted in tandem with the development of the development is to the sector. “As resources facilities that propose to use these feedstocks. are invested in research and development… The [facilities] that are in precommercial stagcapital equipment, facilities and infrastructure, es or are under construction now that may be and all the financial risk mitigation tools to ready to go online in [the 2013-’14 timeframe] help start this industry, I like to say ‘forget not need sufficient quantities of feedstock. It all the feedstock,’” Atkinson says. “We need the rests on a strong base of available feedstocks feedstock in addition to the facilities. Many of that can be obtained economically.” these dedicated energy crops may take two or —Erin Voegele

Why Cloud Computing and Biofuels Make Sense

the work will help those scientists understand how microbes interact and live within their The Kbase will reveal relationships environments. As between microbes and environments Doreen Ware, a The best part about the Kbase (knowl- CSHL professor working on the Kbase projedgebase) that a team of scientists from Ar- ect says, the best part might instead be that the gonne, Oak Ridge and Lawrence Berkley team will “focus on a specific assortment of national labs, plus Cold Spring Harbor Labo- plants and microbes that the energy departratory and others are working on is not that ment hopes to exploit to produce biofuels.”

The scientists want to create a system that can be used by the entire scientific community as a tool to understand the microbes and environments those microbes live in. The Kbase will be made available via cloud computing. Michael Schatz, another scientist from CSHL working on the project, sited Google as an example to explain the project as something that will enable anyone with internet access to tap into the information the team of scientists has recorded. —Luke Geiver

september 2011 | Biorefining Magazine | 17

PHOTO: STEPHEN AUSMUS

USDA announces more BCAP project areas, but the program’s fate is unclear

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Software Every Bioenergy Firm Needs

A synthetic biologist engineers program to test DNA sequences in superbugs Howard Salis has proof that he was paying attention during his undergraduate and graduate days—and the biofuels industry should be thankful. Salis, now a synthetic biologist at Pennsylvania State University, has developed a DNA compiler program that can design and predict DNA sequences in microorganisms. Part of his chemical engineering background and time spent in the classroom, Salis says, gave him “this idea that we solve equations and we solve them on the computer during our undergraduate and graduate curriculum.” As Salis says, those classes came in handy, and for him it meant that he was able to construct a computer software program from scratch that can design new DNA sequences to improve the efficiency of the superbugs used in the biofuels industry today.

“The software makes specific predictions about which specific DNA sequences will give you a certain amount of protein, and then we measure that,” he says. “We compare the prediction with the experimental data.”

After testing a DNA sequence on the computer, the team then tests those predictions at Salis’ lab. A user can simply tell the program the amount of protein an organism should make, and the program will in return tell the user the DNA sequence that will produce the desired amount of protein. This function, Salis says, is crucial to the biofuels industry.

“There have been multiple companies that used the software,” he says. “In one example, a company had spent three years working on a product. They had a bottleneck. They From Scratch The new software program PSU professor Howard Salis developed can used the software control aspects biochemical applications such as protein production across a 100,000fold scale. to eliminate that bottleneck and it immediately increased production by 50 per- 100,000-fold scale. “This is a very large dycent.” namic range. It would be like if you had the He also points to other companies such volume on your stereo and the dial went from as LS9 and Amyris that he says could ben- one to 100,000.” efit from using the software. “If they want to The software will not only help compamake more biodiesel or octane, they need to nies that have already started on a project. go through a process of mutating their DNA Salis points out that companies starting from and then measure how much more product scratch can use the software to optimize a they are making. Of course,” he adds, “the pathway, and in the lab his team has already more complicated this system gets and the performed more than 150 tests to prove the more enzymes you have, the more muta- efficiency and accuracy of the software. The tions you could make.” Because of that, he software is available free online. Established explains, a process like this would typically companies that want to test it out may want require hundreds and thousands of iterations to try the version that can be licensed be(mutations), “and that is why it takes so long cause, as Salis says, “if a company were to to engineer microorganisms.” send a fancy enzyme to my Web server, I The software program can control as- can’t guarantee it.” —Luke Geiver pects such as protein production across a

to develop a proprietary processing and method, a new line of extrusion resulting in the first commercially viable finished flexible film products made from Mirel P5001 film grade resin.

“Our combined effort with the Telles technical team to develop a unique method of extrusion-blown film products has resulted in a process innovation,” says Boris Miksic, president and CEO of Cortec. “The

Finished Flexible Film Mirel bioplastic selected for film products Minnesota-based Cortec Corp. will use Mirel bioplastics to manufacture a new line of film products. The manufacturer of the material, Telles, a joint venture of Metabolix Inc. and Archer Daniels Midland Co., has been working with Cortec through a mutual development and commercialization effort 18 | Biorefining Magazine | september 2011

combination of Mirel film resin with the new extrusion and processing method delivers practical and diverse benefits for end-users, including multiple end-of-life options.”

Cortec will launch two new products based on Mirel P5001; EcoOcean, for marine biodegradable markets, and Eco Works for disposal in anaerobic digestion systems.

Mirel P5001 was tested and approved under ASTM D7081 and ASTM D5511 to ensure compliance with biodegradation in marine environments and anaerobic biodegradation.

—Erin Voegele

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Clean technology firms with strong energy practices Law students looking to enter the clean technology sector now have a list of the top clean technology law firms in the U.S. Ratings and rankings service Vault.com has released a top 10 list of the best clean technology and renewable energy law firms that, according to Brian Dalton, director of research and consulting at Vault.com, will allow current law students looking for employment “an instant overview of the firms ranked highest by clean tech practitioners.” To complete the rankings, Dalton says associates were able to vote for up to three firms in their own practice area, but were not permitted to vote for their own firm.

“Self-identified corporate associates were allowed to vote only in the corporate-related categories,” he says. “Litigators were allowed to vote in the litigation categories and so on.”

The benefit of the list, Dalton says, is linked to the job seeker’s understanding of not only what each law firm specializes in, but what it might take to get a job at each firm.

“The more an applicant knows about the inner workings of a law firm before he or she even applies there, the better they will do in the resume process and the following interview steps. It allows the candidates to narrow their search and then research the firms in that

Top 10 Clean Technology Law Firms: 1. Baker Botts 2. Latham & Watkins 3. Morrison & Foerster / Orrick (tie) 4. Milbank, Tweed, Hadley & McCloy 5. Stoel Rives 6. Fulbright & Jaworski 7. Cooley 8. Chadbourne & Parke 9. Alston & Bird 10. Finnegan List Topper Survey respondents called Baker Botts a firm with “smart lawyers” and an “extremely strong energy practice.”

SOURCE: VAULT.COM

Vault.com’s Top 10 Clean Energy Law Firms

practice area and discover what it takes to get hired there, find out more about the firm’s culture and compensation.” —Luke Geiver

SDSU researchers evaluate use of biochar as a soil amendment Logistics have proven to be a challenge for the biorefining industry. In many cases, bulky feedstocks can be difficult and prohibitively expensive to transport and store. One solution that’s been discussed for years is distributed collection and preprocessing locations modeled after the network of grain elevators that dot the landscape of rural America.

Rather than storing grain, however, locations that serve as drop-off points for biomass feedstocks would feature pyrolysis systems to process those feedstocks into bio-oil that could more easily be transported to biorefineries for conversion into biobased fuels and chemicals. Biochar produced as a byproduct of the pyrolysis process could then be used to help rehabilitate degraded soils.

A research project as South Dakota State University is focused on determining the specific impact that various types of biochar can have on degraded soils. The project, which was recently awarded a five-year $1 million grant through the USDA’s National Institute of Food and Agriculture’s Agriculture and Food Research Initiative, is being led by SDSU professor Tom Schumacher. Together with a team of colleagues, Schumacher will produce biochar and bio-oil via a microwave fast py-

rolysis process. The resulting biochar will be introduced to degraded soils in the university greenhouse for evaluation. The team will test biochar resulting from three different feedstocks: corn stover, switchgrass and woody biomass.

Improving Cropland SDSU professors Tom Shumacher (left) and Jim “The hypothesis for this Julson work to produce biochar for use as a soil amendment. project is the biochar will have different physical properties that will vary due According to Julson, concerns have been to the feedstock source,” says Jim Julson, a raised regarding the quality of biomass or professor in SDSU’s agriculture and biosys- crop residues that can safely be removed from tems engineering department. The process- cropland for use as biorefining feedstock ing parameters of the pyrolysis method are without impacting soil quality and production also expected to have an impact on the ability potential. Biochar soil amendments may play of the resulting biochar to function as a soil a role in mitigating these concerns. “In this amendment. case we are going to take biochar [and add it In addition to studying the effect biochar to lower producing soils] to try to maintain, if could have on degraded soils, the research will not enhance, the production potential of the also address emergent herbicide absorption, whole landscape.” Although the project will soil water-holding capacity, and nutrient cy- initially involve soil trials in an SDSU greencling. “These are all things that have an effect house, Julson says that the goal is to gather on the overall soil productivity, and we’ll look data that would allow the research to scale-up at what effect the biochar has on [those ele- to plot trials. That scale-up is likely to happen ments.]” The potential to sequester carbon once the initial five-year research project is dioxide and impact greenhouse gas emission completed. —Erin Voegele levels will also be studied by researchers. september 2011 | Biorefining Magazine | 19

PHOTO: SOUTH DAKOTA STATE UNIVERSITY

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Braintrust Royal DSM’s supervisory board, from left, consists of Claudio Sonder; Rob Routs, Chairman; Pauline F.M. van der Meer Mohr; Tom de Swaan; Ewald Kist, Deputy Chairman; and Pierre Hochuli.

PHOTO: ROYAL DSM

22 | Biorefining Magazine | september 2011

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Royal DSM’s Partnerships, Market Penetration & Progress Royal DSM is making significant inroads in the biorefining sector, and it shows no signs of slowing down

By Bryan Sims

The bold undertakings conducted today by Netherlands-based Royal DSM N.V. in the field of industrial biotechnology are in far contrast to its humble beginnings as a modest, state-owned coal mining company in 1902. The firm eventually transformed into a petrochemical company in the 1990s. In the past six years, however, DSM has evolved into an international life sciences and materials powerhouse that’s working feverishly to speed the

september 2011 | Biorefining Magazine | 23

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PHOTO: ROYAL DSM

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Lab Intensity Royal DSM’s pilot plant located in Delft, Netherlands, is where the Dutch biotechnology firm conducts much of its yeast strain development.

transition to a biobased economy, a global approach to manufacturing and living based on resources derived from biotechnology rather than relying on fossil sources.

Since 2005, DSM has relied upon industrial biotechnology platforms such as fermentation or biocatalytic techniques as springboards to bring its diverse products to market. DSM’s activity in industrial biotechnology is not only being applied to biofuel and biochemicals, but it also applies to all four of its focus markets, or “clusters:” nutrition, pharmaceuticals, performance materials and polymer intermediates. As a result, DSM’s established presence in Europe has spilled into the U.S. and China.

It wasn’t until the mid-1990s, however, during its wave of acquisitions of several biotechnology firms that DSM would realize the importance of catalysis as the basis for experiencing growth in the area of industrial biotechnology. In September 2003, DSM acquired Roche Fine Chemicals and Vitamins Division and subsequently renamed the unit DSM Nutritional Products, a decision that would position DSM as a leading industrial biotechnology and chemical company, according to Volkert Claassen, vice president of strategy and key part24 | Biorefining Magazine | september 2011

nerships for DSM’s biobased products and services division.

“From that moment on, we’ve steadily built processes and products based on biotechnology,” Key Player Claassen says.

Volkert Claassen, vice president of strategy Claassen, who and key partnerships left Genencor Interfor DSM’s biobased products and services national in 2006 to division, helped lead DSM’s industrial shape the company’s business strategy in the biotechnology efbiorefining sector. fort in his role as vice president of White Biotechnology, recognized the monumental challenges that lay before him. During his four years in that capacity, Claassen helped shape DSM’s emerging business area of industrial biotechnology—widely referred to as “white” biotechnology in Europe—into a launching platform for products and services in the areas of biofuels and biochemicals. Building on that success, Claassen is poised to take DSM’s enlarged industrial biotechnology segment to the next level.

“We have a different mentality now, we see that industrial biotechnology can really

work,” Claassen says. “It’s all about execution right now.”

When Claassen says DSM is executing, he means it. This is evidenced by the spate of investment, acquisition and joint development activities DSM has in several big-name biorefining companies; moves that are poised to accelerate the biorefining landscape and broaden the availability of biobased chemicals and consumer products.

Power of Partnering

Alliances or partnerships with large, reputable and resourceful global brands like DSM are considered by many small to midlevel biorefining firms a necessary business decision rather than an option for bringing their novel biobased products to market.

While DSM’s list of partnerships and collaborations might be lengthy, each has different elements that carry distinctly different objectives, Claassen says.

Currently, DSM’s involvement in the biorefining sector includes a strategic investment in Carlsbad, Calif.-based Verdezyne Inc. to advance the development of ethanol and biobased adipic acid, a precursor used in the manufacture of nylon 6,6, polyeure-

PHOTO: OPX BIOTECHNOLOGIES INC.

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Teamwork Biochemists work together to develop different strains for testing at OPXBio’s pilot facility in Boulder, Colo. The company is focused on developing a biobased alternative version of petroleum-derived acrylic acid, which has an $8 billion market.

thanes and engineered plastics; a strategic investment in Golden Valley, Minn.-based Segetis Inc. for the development of selective ketalization for identifying levulinic acid esters that can be used in cleaning solvents and other household products; a collaboration with France-based Roquette Freres to jointly commercialize biobased

succinic acid; a collaboration with Elevance Renewable Sciences Inc. to explore unique monomers for the production of specialty biobased thermoplastic materials using Elevance’s novel metathesis technology; an enzyme supply agreement with Codexis Inc.; acquisition of the Dutch C5 Yeast Co. for advanced biofuel development and produc-

tion; acquisition of Microbia Inc. for its ongoing development of natural carotenoids for use in nutrition, chemicals and specialty materials; acquisition of algae developer Martek Biosciences, which added a growth platform for its health and natural food ingredients area, including sugar-based biodiesel development as part of a collaboration

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Martek had with BP prior to being acquired by DSM. “All of these are examples of companies that are doing interesting things where we can add additional Affiliated OPXBio CEO and applications, leverage President Chas their technology by Eggert says partnering with a DSM or helping them to scale DuPont is critical to up and also broaden accelerating biorefining commercialization. their geographical reach, because we have market connections all over the world to make these things happen,” Claassen explains.

Like the benefits of DSM’s current investments, industry participants such as Colorado-based biobased acrylic acid developer OPX Biotechnologies Inc. (OPXBio) understand how fruitful partnerships with big name, reputable, global firms such

as DSM can be, and it shows through its joint development agreement with chemical giant Dow Chemical Co. “For OPXBio, and I think for the industry in general, it’s very important that these strategic partnerships get formed and they are productive and accelerate the progress to commercialization,” says Charles (Chas) Eggert, president and CEO of OPXBio. “There’s no question that our affiliation in our partnership with Dow Chemical adds credibility to OPXBio while increasing chances for additional partnerships, additional funding and for attracting talent that can help propel our strategy forward.”

For industry organizations that advocate industrial biotechnology’s rapid movement in the biobased economy, such as the Biotechnology Industry Organization, DSM’s early and active involvement is an indication of how the industry might be reaching a point of maturity, according to BIO Executive Vice President Brent Erickson.

“That’s being demonstrated by a couple of things,” he says. “The first one is the merger and acquisition activity. The second thing that I think is indicative of that maturity is the IPOs we’ve seen on Wall Street. I think we’re moving from laboratory or concept stage of technology development to actual commercialization, and I think DSM is at the forefront of that.”

Mark Bunger, research director at Lux Research based in the firm’s San Francisco office, agrees with Erickson’s theory. “I think it’s fair to say that DSM has been the most innovative, creative and Incremental Increase An uptick in bioplastic production is expected to occur as more biorefining firms concentrate their efforts in delivering alternatives. probably even the most Source: European Bioplastics / University of Applied Sciences and Arts Hanover aggressive with their ap26 | Biorefining Magazine | september 2011

proach to industrial biotechnology, and their acquisition activity tends to reflect that,” Bunger says.

“It’s become a part of the definition of who they are.”

Industry Observer Lux Research Director Not only are Mark Bunger says biorefining firms DSM has been the most innovative and benefitting from the aggressive with its myriad of services approach to industrial biotechnology. and skills DSM might offer, but the Dutch firm believes the feeling is mutual as it is learning aspects within the entire industrial biotechnology supply chain as well, such as the business of aggregating starch and cellulosic feedstocks for various biofuel or biochemical developments, according to Claassen.

“There was one important thing that DSM immediately realized when it considered its move into larger scale application of biotechnology,” he adds, “and that was it needed partners that had knowledge in agriculture, processing, crops and so forth because everything we did before in chemistry revolved around oil.”

Market Prioritization

According to McKinsey & Co., the total global market for biofuels is estimated to be approximately $40 billion and for biochemicals, it is estimated to be approximately $70 billion. The biochemical and biopolymers market, including oleochemicals, is estimated to be around $55 billion in 2010-‘11. As the world population increases, those numbers should increase, which is expected to present a lucrative proposition for DSM. The most attractive biorefining markets in which DSM expects rapid long-term growth, according to Claassen, include second-generation biofuel development, such as cellulosic ethanol. DSM is wellequipped and positioned to capitalize on the advanced biofuel market with its robust enzyme and yeast portfolio for pretreating and converting cellulosic sugars, Claassen says. The firm is actively working to make it happen, but commercial success largely

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depends on federal incentives, political influence and feedstock sourcing and supply considerations in different countries around the world.

“We have enzymes that do amazing things,” Claassen says. “I think the enzyme/ yeast system as we have it are more than capable to pretreat cellulosic feedstock and produce highly efficient ethanol, but it will be a few years away yet until DSM deepens its involvement in advanced biofuel development.”

In the short-term, Claassen says DSM aims to contribute its expertise and resources on its partnerships and investments engaged in biochemical development.

Claassen points out that biobased succinic acid is of immediate interest for the com- biobased succinic acid production facility. pany through its joint collaboration with While Claassen wouldn’t disclose if the Roquette Freres. Both companies intend to company is actively seeking potential acquibuild a 10,000-metric-ton-per-year facility sition or partnership targets outside of its near a Roquette starch manufacturing plant current portfolio of activity, he admits that in Cassano Spinola, Italy. The proposed fa- DSM has an uncanny ability for monitoring cility, scheduled to come online by second “new kids on the block” in the event that LWC629-RJS-0446 Biorefining Ad #3 1/11/11 PM Page 1 quarter 2012, would be Europe’s largest1:46such an opportunity rises.

When Claassen says DSM is executing, he means it. This is evidenced by the spate of investment, acquisition and joint development activities DSM has in several bigname biorefining companies.

“When I joined DSM, I felt that was really the strength of the company,” he says.

“We follow a number of companies closely.

There are always potential candidates for a potential target for a partnership, acquisition or investment, but we see clearly that we want to focus more on where we’re good at and we have to accelerate execution right now.” He adds, “That means we’ll explore different ways to cooperate externally to engage innovators and make sure we do that in a balanced approach in win-win scenarios. I think you’ll likely see these kinds of connections being made in the coming years.”

Author: Bryan Sims Associate Editor, Biorefining Magazine (701) 738-4974 bsims@bbiinternational.com

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The

Bio-Academic

Entrepreneurs

Intellect, experience and business sense make them the industry’s dream

By Luke Geiver

If you don’t know who Jay Keasling is and what he’s accomplished, you should.

Keasling helped create a synthetic microbial platform used in malaria-treating drugs, renewable chemicals, advanced biofuels, and he’s been interviewed by Comedy Central’s Stephen Colbert on the highly popular program, The Colbert Report. Keasling says his time on the show was “great fun” speaking about the role synthetic biology will play in

Research to Profit Jay Keasling, CEO of the Joint BioEnergy Institute, created a synthetic microbial platform that served as the basis for the startup of Amyris, the successful now-public advanced biofuel company.

PHOTO: ROY KALTSCHMIDT, LAWRENCE BERKELEY NATIONAL LABORATORY

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ple of why people such as Keasling matter to the industry. In addition to Amyris and LS9, Keasling says, “We are going to see more research from JBEI that both launches other companies” and is “licensed by existing companies and used in biofuels work,” he says. “I look at JBEI as developing some of the cornerstone technologies for this field, solving some of the really difficult scientific problems that companies would not necessarily look into.”

Fortunately, Keasling is not one of a kind. JBEI is filled with innovative researchers who have that killer combination of intellectual background and business savvy to take a synthetic microbe or a genetically modified catalyst and develop it in an economically feasible way. They may work in academia donning white coats and safety goggles, but they have the spirit of MBA students dreaming of the next big thing, or, sorry to say for Keasling, the companies

PHOTO: ROY KALTSCHMIDT, LAWRENCE BERKELEY NATIONAL LABORATORY

the future of fuels, and while the interview was entertaining, his work is a significant achievement holding major implications.

The synthetic microbial platform he helped create is the basis of Amyris, the headlining company he founded that has already issued a successful IPO and is teaming up with global partners too numerous to count.

Keasling may not have created the notion that utilizing renewable feedstocks to replace petroleum in products ranging from polymers to diesel is a good one, but he does epitomize the type of person to whom the entire biorefining industry can—and should—look for a better understanding of not only where the industry has been, but where it could be. And why? Because, in addition to his time spent founding successful companies and appearing on television, Keasling is also the CEO and director for the Joint Bioenergy Institute. JBEI, pronounced “Jay-Bay,” could be the best exam-

Research Pays JBEI researcher Aindrila Mukhopadhyay, left, and vice president of deconstruction at JBEI, Blake Simmons, are taking on projects today that could pay off commercially tomorrow.

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that will someday compete with Amyris.

These are the people in the industry with whom investors want to have lunch and private companies want to work.

Understanding Bright Prospects

When George Huber first started his career in research and development, he was a chemical engineering student at Brigham Young University. “I went to a researcher and talked to him about his research, and he told me about Fischer-Tropsch synthesis,” Huber says of his early days. “In my mind that was the coolest idea possible. I spent as much time as I could in the lab trying to learn about it.” Huber doesn’t work at JBEI, but he has achieved, on a much smaller scale, what Keasling has. After joining the University of Massachusetts-Amherst staff in November 2006, he helped develop a single-step process to make olefins and aromatics from biomass using a catalytic fast pyrolysis system. That process is the basis for Anellotech, the startup company for which Huber is now a consultant.

Huber still considers research his main focus and, for companies looking to work with people such as Huber, that’s not a bad thing. “The goal in the academic world is to do the fundamental research that will allow the biofuels industry to occur,” he says. But Huber asserts that researchers like him are more than aware of what their work could mean. “I think it is an exciting time to be in this industry,” he says. “I think there is a lot of room for growth and improving these processes.” There are big economic incentives, he explains, for the people who can stick with it and continue to develop their technology.

Aindrila Mukhopadhyay shares some of the same sentiments as Huber. She is a researcher at JBEI and, from her perspective, “No scientist does research strictly for the research.” Listening to Aindrila, it’s easy to understand why many of the researchers focused on biofuels and biobased products will be able to bridge the gap between their work in the lab and their work in the office—because they truly believe in it. She says scientists like her “have some ulterior motive” and “an inspiration in the back of their minds.” For most of her colleagues and peers, she says, there is a powerful incen-

PHOTO: ROY KALTSCHMIDT, LAWRENCE BERKELEY NATIONAL LABORATORY

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Touching the Future Keasling has already co-founded the most successful biorefining company to date: Amyris. Keasling’s goal is to help his colleagues do the same.

tive to do the work they do “to be able to explain to a layman, in a few sentences, why what you do is important.”

Every once in a while, she says, “You suddenly see the momentum building in your environment. You see politics changing to accommodate your research. You see the economy starting to track with your research.” And that, she says, “is very exciting to have in the background.” Aindrila agrees with both Huber and Keasling, who insist that research at places like JBEI helps the bioenergy landscape simply because “what they (private companies) cannot do is the wild stuff that we do”—the type of research that doesn’t come with a profit in the nearterm. But she says that same research has fallout that some researchers seek out: the lucrative appeal of starting a company.

“Some people are really geared towards starting their own company so that they can control their contributions in a much more focused way,” she says. And in a way that will allow for more direct compensation of their work. “There are so many of my colleagues who are so good at really whittling down a big body of science to the technology that will actually make a difference and

have a product at the end,” she adds. “In my time in this research group,” Aindrila says, “I have seen three or four companies being visualized and I have seen one of them go on to be the most successful companies in biofuels, and one that is on the brink. [JBEI] inspires a lot of people and attracts a lot of very talented people because that opportunity does exist.”

Chris Somerville, director of the Energy Bioscience Institute, a bioenergy lab run out of the University of California-Berkeley, also knows an opportunity when he sees one. In 2007, Somerville became the director of EBI, leaving behind the company he founded, LS9 Inc. Though no longer involved with LS9, he does have a direct link to BP, a company his research institution is working with directly. Somerville has a few thoughts on that link to BP, and like Keasling, he also has a few ideas on what it takes to build a startup out of a research lab, and what investors and private companies need to know if they want to join in on the party.

What the Founders Believe

Somerville has founded three companies. Based on that experience, he says he

has some ideas how to formulate valuable objectives, how to design goals and pace milestones regarding time and money, and how to organize and motivate teams that can execute on those goals. Unfortunately, an academic setting can at times make it tough to implement a startup culture. “However, some aspects of those practices from companies can be implemented, such as fostering teamwork and creating or importing service providers that enable researchers to focus on what they do well,” he says. And frequently, he adds, “just thinking through how a problem would be approached in a company with respect to cost-benefit and risk mitigation can be very helpful in designing academic collaborations to accomplish specific goals.”

The relationship between EBI and BP has also helped his research institution in ways others might envy. “Because of our relationship,” he says, “we have a very effective mechanism to learn from BP about issues affecting plans for cellulosic fuels production from their perspective, and advise them about how we see those issues from the academic perspective. Indeed, one of the major goals of EBI,” Somerville september 2011 | Biorefining Magazine | 33

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PHOTO: ROY KALTSCHMIDT, LAWRENCE BERKELEY NATIONAL LABORATORY

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PHOTO: ROY KALTSCHMIDT, LAWRENCE BERKELEY NATIONAL LABORATORY

Telling JBEI’s Story Along with tours showcasing their work, Keasling has appeared on national television programs like the Colbert Report.

Continuing On Founding a promising biorefining company has not stopped Chris Somerville, director of the Energy Bioscience Institute, from his work in the lab.

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Keasling says for those researchers out there hoping to have the term 'founder' behind their name one day, the key is to focus on work they find fun and interesting while keeping an eye on how it could be commercialized.

for companies looking for guidance, and partners, in bioenergy. And it would be hard to argue with either. As Aindrila points out, “Industry doesn’t have the luxury, especially startup companies,” of performing the kind of research that she and her colleagues get to do every day. That’s what makes people like Aindrila, Huber, Somerville and Keasling unique and so important to the industry. Not only are they on the cutting edge of the research that could be the next big thing, but they have the spirit and willingness to take off those white lab coats and

safety goggles for a business suit and talk products or markets for the technology and biologic breakthroughs they worked on that morning. Keasling offers a word of advice to investors. “Keep an eye out for interesting technology and smart people, and work with them to develop that technology even further.”

Author: Luke Geiver Associate Editor, Biorefining Magazine (701) 738-4944 lgeiver@bbiinternational.com

BIOFUELS CANADA

adds, “is to try and help BP gain a broad academic perspective on the field so that they have the information to make good decisions from a ‘whole system’ perspective.” He says his overall opinion on the relationship is that if BP implements change in the energy sector, the rest of the companies will follow.

Keasling has not yet worked with BP, but he has perspective on how to help his research lab succeed. “I think investors need to work with academics to develop a business plan or a plan for the company,” he says of getting an academic’s research efforts converted to a commercial reality. “It is hard sometimes for academics to identify products, to understand all the economics around those. Generally,” he adds, “those are things held pretty tightly by companies, so it is hard to get that information. It is easier for venture capitalists that are really well connected to get that information.”

Keasling says for those researchers out there hoping to have the term “founder” behind their name one day, the key is to focus on work they find fun and interesting while keeping an eye on how it could be commercialized. At JBEI, the staff is encouraged to work on their projects in a way that will allow them to file for patents. Somerville says one of his goals is to “foster startups.”

Keasling and Somerville both believe their institutions are at the top of the list

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Forging a Solution Algaeventure Systems is working to develop a technology that can be used to separate algae from water.

PHOTO: ALGAEVENTURE SYSTEMS

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High Risk, High

Reward

The U.S. DOE’s Advanced Research Projects Agency-Energy targets the “white space” of existing energy research By erin voegele

A unique development program housed under the U.S. Department of Defense has achieved a rich history of game-changing technological innovation since its inception in the 1950s. That program, now

known as the Defense Advanced Research Projects Agency, played a key role in the development of invaluable technologies, including the Internet, stealth technology and global positioning systems (GPS).

The agency was specifically designed to be small, flexible, flat and au-

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tonomous. In other words, the agency was able to work around many of the bureaucratic barriers and red tape that can plague less nimble research agencies, allowing it to quickly shift gears to support and expedite the development of technologies that face steep risks but overwhelmingly high rewards, if proven successful.

In recent years, federal lawmakers, spurred by a 2006 National Academies report titled “Rising above the Gathering Storm,” recognized the U.S. had a clear and vital need to channel the same type of innovation into energy research. As a result, the America Creating Opportunities to Meaningfully Promote Excellence in Technology (America COMPETES) Act was signed into law in 2007, authorizing the U.S. DOE’s Advanced Research Projects Agency-Energy (ARPA-E). ARPA-E, modeled after the highly successful DARPA program, received $400 million in initial funding through the Recovery Act in 2009.

The agency is ultimately focused on high risk transformational energy research that could reap dramatic national benefits.

“We try to identify area of particular need that is not currently being satisfied by other governmental or industry programs,” says Jonathan Burbaum, an ARPA-E program director who focuses on advanced biotechnology applications for biofuels and biochemicals. “We ask not ‘Will it work?’ but ‘Does it matter?’ In other words, if it does work, is it really going to make a difference in the energy landscape of the United States?”

According to Burbaum, ARPA-E

achieves its goals by recruiting bright, gifted people and staying distinct from other government energy research programs without, as he says, becoming an island. “You have to be connected in, but you have to look at where you can make the right kinds of connections and fill in the gaps for areas that [other programs] are maybe not looking at,” Burbaum says. He refers to those gaps as unexplored “white space.”

ARPA-E funds a wide variety of energy projects, from carbon capture to advanced battery technology and electrofuels.

Regarding biomass energy, the agency currently lists five feedstock development and biorefinery projects pursued by Agrivida, Ceres Inc., E.I du Pont de NemDriving Development ours and Co., RTI Jonathan Burbaum, International and Alan ARPA-E program director focused gaeventure Systems. on advanced “I think a lot of biotechnology applications for biofuels the technologies that and biochemicals, is we look at are what I working to expedite development of would call pre-pilot,” biobased technologies.

Burbaum says. Biomass projects generally fall in the space between basic research and pilot-scale deployment. “If a project is already to the point where the economic analysis is telling you this is going to be a fundable opportunity, we are not going to come in and replace what would otherwise be private sector funding,” Burbaum says. “At the same time, if at the end of an ARPA-E project the main conclusion is that more research

ARPA-E Program Director Jonathan Burbaum says that ARPA-E focuses on research and development projects that fall between three and six on its technology readiness scale. “Basically the scale starts with a one, which is a twinkle in your eye, and ends with 10, which would be commercial deployment,” he says.

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APRA-E targets

Targeting a TRL

is needed, then I’d say it’s been an unsuccessful project. We really want to take it to the point where somebody can look at it and say, ‘That project looks really promising.’ It’s going to change the economics of fuels, and we are going to go out and fund that pilot plant because it is just that much different. We are trying to fit into that gap.”

Goals, Benefits, Guidelines

The first funding opportunity offered

by ARPA-E was open to any innovative energy research project. Several thousand applications were eventually whittled down to roughly three dozen funded projects. Since that time, the agency has offered more targeted solicitations but Burbaum notes that program directors do look at unsolicited applications, and they are discussing whether they will enact rolling application deadlines in the future. “That’s something that is dependent on a number of things, including our budget,” he says.

One benefit of the broad initial funding opportunity is that the agency’s program directors saw firsthand what tremendous capabilities are out there. “You could really see the scope of what was possible,” Burbaum says. “We don’t currently have any immediate plans to go back to that, but I think there is a virtue in doing that.

I think it’s a reasonably good idea to try to go out for broad proposals on a rolling basis, but that’s not a decision that has been made yet.”

Burbaum notes that approximately 33 percent of the research projects ARPA-E currently supports are university spon-

1. Basic priciples observed and reported.

2. Technology concept and/or application formulated.

3. Analytical and experimental critical function and/or characteristic proof of concept.

4. Component and/or breadboard validation in laboratory environment.

5. Component and/or breadboard validation in relevant environment.

6. System/subsystem model or prototype demonstration in a relevant environment.

7. System prototype demonstration in a operational environment.

8. Actual system completed and qualified through test and demonstration.

9. Actual system proven through successful mission operations.

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turf that might end up being. If it’s a white space, you’ve usually got someone on the other side of that white space that is going to be tugging” for control of that area, he says. “We just go in there, plant the flag, and as the field becomes more mature,” someone will take ownership. “We really just focus on innovation.”

ARPA-E also provides a great many benefits to the projects it supports above and beyond financial support. “I think one of the hidden benefits of ARPA-E is we can provide introductions,” Burbaum says, adding that, in some cases, there are related programs where an active program director can see how different projects might complement one another. For example, one component of project A’s technology might be performing well while another component is struggling. For project B, the inverse might be true. The program director might realize the two projects could complement

one another and offer to make introductions that will lead to mutual benefit.

Burbaum adds that ARPA-E features a crack commercialization team that is available to help successful projects move forward and procure funding to scale up their technology. The team can help make introductions not only to other government agencies and programs, but also to venture capital firms or companies. “It’s a pretty well-networked group, and I think that’s the sort of thing that we try to get involved in,” he says.

Industry Feedback

RTI International is a large nonprofit research agency that has a long history of securing funding from the government entities, including the DOE. The agency currently has two projects that have been funded by ARPA-E, including a biomass project, titled “Catalytic Biocrude Pro-

PHOTO: RTI INTERNATIONAL

sored, and about 20 percent are projects under development by large businesses.

The remaining projects are spearheaded by small businesses and research labs.

According to Burbaum, the design of ARPA-E allows a lot of things to be driven by individual program directors, as they are able to put their expertise to use and follow their noses to find applicable white spaces in the research environment. “I think one of the advantages that we have is that program directors come [to ARPA-E in] threeyear terms,” Burbaum says. “I’m gone in two years. That means that I don’t particularly care about the turf or empire-building.

I just want to identify a white space, and see what comes of it. It’s a lot of fun to do that, particularly when I’m concerned about what we call ‘in-reach,’ basically making sure that other parts of DOE and the government know what we are up to. But I’m not particularly concerned with whose

Better Crude RTI International is working to develop a production technology for biocrude. september 2011 | Biorefining Magazine | 39

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Directing Progress David Dayton, RTI’s director of biofuels in the Center for Energy Technology, says his technology fits ARPAE’s high-risk, highreward requirements.

duction in a Novel, Short-Contact Time Reactor.”

According to David Dayton, RTI’s director of biofuels in the Center for Energy Technology, his agency pursued ARPA-E funding for its biocrude technology because the project fit nicely into the pro-

gram’s criteria of high-risk, high-reward research and development. “If we could find a catalyst that works very well and put it in a process that is highly efficient and successful,” Dayton says, “then we could make a fairly significant impact in a short amount of time because of the ability of utilizing existing infrastructure.”

Dayton notes that ARPA-E is different than many agencies in that it’s not focused on a specific technology type; rather, it has a focused mindset of supporting high-risk, game-changing technologies.

The expectations for ARPA-E projects are also different than those supported by other DOE and USDA funding opportunities. Specifically, timescale expectations are tight. Projects are expected to proceed rapidly and achieve results. “They help you get your technology to the point where other funding opportunities become available to move it along the technology pathway,” he says. “In that sense, it is very technology focused, making sure that your results meet the criteria that are set forth so that you have successful technology development at

Agrivida: Conditionally Activated Enzymes Expressed in Cellulosic Energy Crops Agricultural biotechnology company Agrivida is focused on creating traits and processes for cellulosic biomass to create cheap sugars, says Michael Raab, the company’s president and co-founder. The company is developing engineered biomass crops such as switchgrass and sorghum that contain dormant enzymes for triggering in process to break down cell walls. Raab says a new protein engineering technology is used to achieve production of these dormant enzymes.

The core of this technology is engineering these enzymes so they can be expressed at high levels in the cell walls of plants, and then controlling them to cost-effectively break down plant cell walls. “Part of the technology that we are developing uses protein elements called inteins, which are interesting because if you put them in a protein they can actually cut themselves out and then glue back their remaining pieces,” he says. “That’s how we control the enzyme activity. We put an intein in it and when the intein is there the enzyme is inactive.” When triggered, the intein cuts itself out and glues back the bordering pieces of the protein, which causes the protein or enzyme to become active again. Raab estimates the first crops featuring this technology will be launched commercially in 2015 or 2016.

Ceres Inc.: High-Yielding, Low-Input Energy Crops Ceres is developing new varieties of switchgrass, miscanthus and sorghum for use as biofuels feedstock. The varieties of these grasses under development aim to achieve

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greater yields with fewer agricultural inputs. According to information published by ARPA-E, the biomass varieties could increase yields by up to 40 percent.

E.I. du Pont de Nemours and Co.: MacroAlgae Butanol This division of DuPont is working to develop isobutanol from seaweed. According to information published by ARPA-E, the company and its subcontractor Bio ArchiDeveloping Solutions Agriculture Secretary Tom Vilsack visits Agrivida Inc.’s tecture Labs are workfacilities. ing to develop a robust industrial biocatalyst microorganism capable Univenture/Algaeventure Systems: of consuming sugars from macroalgae and Scaling and Commercialization of Algae converting them into to isobutanol in an ef- Harvesting Technologies ficient manner.

A technology under development by RTI International: Catalytic Biocrude Algaeventure Systems aims to dramatically Production in a Novel, Short-Contact Time reduce costs of separating microscopic solReactor ids, such as algae, from dilute liquids. “We are According to David Dayton, RTI di- working on everything from the membrane to rector of biofuels in the Center for Energy the pore sizes, to the types of materials, the Technology, the project focuses on develop- interaction of these materials, the wicking and ing a process that can leverage existing fuel the capillary belts that we use within our sysproduction and distribution infrastructure tem,” says Algaeventure Systems CEO Ross by converting biomass into a biobased crude Youngs. “The key thing is everything we do is for upgrading to transportation fuels. Dayton done at very little pressure differential. We are says recent work on the project has focused depending upon molecular adhesion to move on catalyst development to maximize energy liquids through a system and separate the solrecovery in the biocrude liquid intermediate, ids. We are closer to how nature does it.” and minimize oxygen content.

PHOTO: USDA

ARPA-E Biomass Energy Projects

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PHOTO: AGRIVIDA

Encouraging Connections

High Expression Agrivida’s ARPA-E project involves engineering enzymes so they can be expressed at high levels in the cell walls of plants, and then controlling them to cost-effectively break down plant cell walls.

this scale, and then have a better chance of success at the next scale.”

Alternatively, Agrivida has an ARPAE project that focuses on expressing conditionally activated enzymes in cellulosic energy crops. Essentially, the company is working to engineer biomass feedstocks that can be triggered to produce enzymes that break down the cell wall, releasing cellulosic sugars.

Michael Raab, Agrivida’s president and one of the company’s founders, notes that the ARPA-E research focuses exclusively on expressing those enzymes in switchgrass. According to Raab, ARPA-E’s support has allowed his company to expand its scale-up and research efforts. “They’ve also helped us a little bit in contacting commercial partners that might be interested in

funding this type of research,” he says. “In that regard, they don’t advocate in one way or another, but they are willing to make introductions to people.”

Raab adds that the agency has been able to provide important support throughout the project’s stages. “They are way more involved than most other grant agencies we’ve worked with in terms of project management, review and monitoring, and really helping solve various technical problems that occur during the project,” he says.

“They are very involved in that regard.”

“We’ve had a really great and positive experience with [ARPA-E],” Raab adds. “I think they really understand the challenges with developing new energy technologies and how those have to go to scale, and what a huge challenge it is to develop things that

ARPA-E is required by law to spend a minimum of 5 percent of its appropriated funds on activities related to outreach and technology transfer. To accomplish this, the agency accepts applications on a rolling basis for a funding opportunity titled “Conferences, Outreach, and Networking for New Energy Communities and Technologies” (CONNECT). Applications are reviewed on a quarterly basis.

According to the most recent funding opportunity announcement (FOA) published by ARPA-E for CONNECT, awards for the program vary between $5,000 and $25,000. For the most recent quarter, a total of approximately $100,000 was expected to be available. The funding opportunity is open to U.S. citizens, permanent residents, some unincorporated groups, educational institutions, nonprofits, government entities, and a variety of other organizations.

The goal of the funding program is, in part, to support the exchange of scientific information and data. According to the FOA, proposed events must include at least one of the following elements: •

• • •

•

The exchange or dissemination of data and information related to the development and demonstration of advanced energy technologies.

The transfer of advanced energy technologies to the private sector.

Educating targeted audiences about advanced energy technologies and their potential impacts.

The formation of new partnerships, collaborations, and networks of researchers, technologists, entrepreneurs, investors, etc.

The promotion of investment, follow-on funding, or business opportunities, such as meetings between those developing advanced energy technologies and potential investors or customers.

september 2011 | Biorefining Magazine | 41

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research

Burbaum notes that approximately 33 percent of the research projects ARPA-E currently supports are university sponsored, and about 20 percent are projects under development by large businesses. The remaining projects are spearheaded by small businesses and research labs. can compete with the infrastructure in place, in some cases for more than 100 years. They understand all the issues that are involved in trying to develop an innovative energy technology.”

Algaeventure Systems CEO Ross Youngs agrees that ARPA-E is filling a gap in energy research. Young’s company has an ARPA-E project that focuses on reducing the costs of separating microscopic solids, such as algae, out of dilute liquid.

Youngs says at first his company was worried about possible bureaucratic hurdles involved with working with a government agency, but has been pleasantly surprised.

“We have been blown away by the professionalism and the quality of individuals that are involved in ARPA-E,” Youngs says. “It was just not what we were expecting. We have become huge supporters of the ARPA-E methodology.”

Those involved in the agency seem to be acutely aware of what it takes to Algae Expert Algaeventure Systems efficiently navigate the “valley of death” CEO Ross Youngs often associated with the development of says ARPA-E is filling an important gap in first-of-their-kind technologies. “I think energy research. they are showing a real sense of understanding how to do that,” Youngs adds. “I think it’s a solid program, and I think it’s going to deliver very big benefits to the future and deliver more technologies. To us, it’s a terrific thing for the whole country to have.”

Author: Erin Voegele Associate Editor, Biorefining Magazine (701) 540-6986 evoegele@bbiinternational.com

42 | Biorefining Magazine | september 2011

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46 | Biorefining Magazine | september 2011