It is true that Genera Energy is agnostic about refined products and related technologies and that our biomass supply chain strategy is one that goes to great lengths to meet varying customer needs for any bioproduct, chemical, fuel, power, or otherwise. However, we take great interest in the refined products and technologies and have a lot of experience in those fields to better assist customer choices.
Over the last several years, one biofuel has averaged close to 13 billion gallons consumed with nearly every fuel pump having 10% of it. That fuel is ethanol and it is largely fermented from corn substrate. It has had profitable years and not so profitable years. The reasons for the fluctuations are complicated, but at a minimum corn market price built on short term contracts and ethanol price, closely related to gasoline price, greatly affect the profit from ethanol.
Ethanol and other products can also be produced from cellulosic feedstock such as perennial grasses, crop residues and other woody biomass. There are several advantages to this. Cellulosic sources are not generally in competition with other commodity markets. Using Genera’s Supply ASSURE™ system will gain long term pricing stability through its contracts and assures continuous improvement and minimum quality variations. This makes for a consistent cost structure. A continued desire to be energy independent in U.S. policy also mandates and rewards cellulosic fuel production. Two interesting strategies to produce cellulosic ethanol can be an addition to or a conversion of existing corn ethanol facility. The conversion can also be to other fuels, like green gasoline or four carbon fuels, or value added bio products.
Cellulosic technologies can have many things in common with corn ethanol including enzymes, fermentation, water and energy recovery, utilities, distillation, material handling, marketing, and administration or other refining synergies. Depending on the technology chosen, significant capital equipment can be used for both technologies and in some cases be literally interchangeable.
Many of the technologies are largely driven on sugars or other carbon platforms. Cellulosic feedstock is converted to sugars after pretreatment using enzymes. These sugars can be fermented in much the same way as corn sugar and sometimes even combined. Distillation and downstream equipment can also be the same.
Genera Energy can provide a consistent biomass supply chain strategy and provide additional consultation to make these thoughts a reality for existing corn ethanol operators. Cellulosic products will have their prominent place in America and abroad. Is it time for you to look into this?
By Keith Brazzell, Chief Operating Officer