Transitioning from the oil age to a more sustainable future

On a recent visit to Novozymes North America, United States President George W. Bush stated that it was time to transition from the oil age and invest in a more sustainable future. Sustainability has been a mantra for Novozymes from the start, and the company underscores this commitment by supplying more than half of the enzymes used to produce ethanol in the USA.

US President George W. Bush arriving at Novozymes North America in Franklinton, North Carolina.

Novozymes North America hosted President George W. Bush, members of the US government, invited dignitaries, other White House officials as well as the press corps and media on February 22, 2007 at Novozymes’ offices in Franklinton, North Carolina.

The presidential visit
President Bush toured the company’s production operations and research & development laboratories accompanied by Steen Riisgaard, CEO of Novozymes, and Thomas Nagy, President of Novozymes North America, with a specific focus on Novozymes’ innovative cellulosic ethanol conversion technologies and commercial­isation efforts.

Donning a white lab coat while visiting the laboratories, as per Novozymes’ safety procedures, President Bush was taken through the process of creating fuel from biomass.

“Some day you’re going to be using this in your cars. A lot of people are today, but more and more are going to be using it. Fuel from agricultural waste - it may be hard for you to believe, it may be hard for Americans to believe some day we’ll be taking piles of woodchips and using technology developed here to develop fuel for automobiles. And when that happens, that will make us less dependent on foreign oil and better stewards of the environment,” said President Bush, holding up a bottle of fuel ethanol.

A presidential visit always means exposure, and Novozymes and the work being done there have been receiving a lot of attention from the media and the government since President Bush’s visit.

“We’re getting more requests to speak directly with senators, congressmen and their staffs in Washington about our bio­fuels research, we’re participating in various state and government panels, we’re getting more credibility within the business community, and our work is being recognised,” says Garrett Screws, Senior Manager of Governmental Relations at Novozymes.

“It was a fantastic and slightly surreal experience to have so much press, secret service and the President of the United States at the place you work. We were excited and proud to be part of this. You don’t get to say things like ‘I have the White House on the phone’ in your average work day. I still have the number of Marine Corps One on my cell phone.”

Building a sustainable future
Bioethanol and biomass-to-ethanol industries are garnering attention from the United States government and are central elements in President Bush’s plans to reduce dependency on imported foreign oil.

“Henry Ford’s original Model T was designed to run on ethanol fuel. But subsequently the US built a motor fuel system based on the availability of cheap sources of petroleum. Now that we are again in transition from the oil age, it is time for us to invest in a more sustainable future,” said President Bush.

Novozymes, the world leader in industrial biotechnology, has been instrumental in revolutionising the production of transport­ation fuel through the application of its enzyme technology for ethanol, based on both corn starch and, in collaboration with the Department of Energy and the National Renewable Energy Laboratories, on agricultural residues such as corn stover.

“Novozymes supplies more than half of commercial enzymes used to produce the 5 billion gallons of ethanol in the USA. Today, biofuel still only makes up 3-4% of America’s gasoline consumption, but together we see much larger potential,” says Steen Riisgaard.

Strategically, Novozymes is mobilising its global resources to continue delivering crit­ical and integrated technologies to improve the efficiency and economic viability, and to accelerate growth of the bioethanol industry while remaining committed to its strong sustainability and environmental philo­sophies.

Hands-on experience
During his visit, the President hosted a panel discussion with Thomas Nagy and Dr Kevin Wenger, who leads the NC-based R&D team which, together with Novozymes’ Davis-based protein engineering facility, successfully reduced the enzyme cost of converting biomass (in this case corn stover) into fermentable sugars for fuel ethanol production. The round-table was attended by official guests and more than 200 Novozymes employees.

“On behalf of our Board of Directors and all of our 4,500 employees globally, we are both humbled and proud that President Bush accepted our invitation to visit Novozymes to experience first-hand the work being carried out by our researchers to accelerate and support the traditional and burgeoning cellulosic ethanol markets,” said Thomas Nagy.

Steen Riisgaard took this unique opportunity to share the Novozymes perspective on the use of alternative energy with the President and thanked him for his continuous cooperation and focus on developing sustainable solutions for the future.

“We discussed with President Bush the importance of enzymes as a critical tool in making ethanol a commercially viable alternative energy that can make the world less dependent on oil. Using enzymes in the production of renewable fuels is the most sustainable way to cut production costs, decrease investment needs and reduce pollution,” says Steen Riisgaard

The next generation of fuel ethanol

Good progress is being made towards converting biomass to ethanol in an economical way. But even though the cost of suitable processes and enzymes has been cut, there is still some way to go.

A major R&D effort is in progress at Novozymes to find enzymes to economically degrade lignocellulosic feedstocks such as straw into sugars.

Some obstacles still need to be overcome before a fully commercial process is developed, and so far biomass has only been converted into ethanol in a few pilot plants. However, this could be the humble beginnings of a huge new branch of industry that could grow to become even bigger than the existing first-generation fuel ethanol industry. ‘First-generation’ is used to refer to the conversion of sugar crops and cer­­eals that are rich in starch, for example corn (maize). ‘Second-generation’ refers to the conversion of lignocellulose, more commonly known as biomass - a very abundant substrate found all over the world.

The high cost of enzymes for converting lignocellulose into sugars was once considered one of the main obstacles to commercialisation, but costs have been reduced. In 2001, the US Department of Energy awarded a three-year research contract to Novozymes worth USD 14.8 million to reduce the cost of enzymes by tenfold. By the end of the government-sponsored research in 2004, the cost had been successfully reduced to the target level.

	Corn stover is a prime candidate for conversion into ethanol, but Emmanuel Petiot of Novozymes predicts that it will take another four to five years to develop and commercialise the enzymes for biomass conversion.

“Enzyme cost is no longer the dominating economic barrier to producing ethanol from biomass,” comments Joel Cherry, Director, Biotechnology/Bioenergy, who led the biomass research project at Novozymes’ research centre in Davis, California. The research work is continuing there under his leadership, and he predicts that even more efficient enzymes will be developed and process optimisation will take place at partners with whom Novozymes has allied.

Major opportunity
“The conversion of biomass to ethanol is not yet a commercial industrial process, but it is likely to be a very interesting opportunity for Novozymes in the future,” predicts Emmanuel Petiot, Global Business Development Manager for biomass applications at Novozymes. “This is an industry in the making. We believe it will take another four to five years to develop and commercialise the enzymes for this new field.”

Even if commercial sales of enzymes have not started, the conversion of biomass-to-ethanol is already receiving full attention at Novozymes, where efforts are being increased significantly within R&D, Marketing and other areas. In fact, the search for high-performance cellulases and hemicellulases represents a global mobil­isation of Novozymes’ research resources and expertise in this field. Novozymes also engages actively in key conferences on the subject and is seeking more government funding to speed up developments across the globe. Biomass research is being conducted at Novozymes’ laboratories worldwide, while biomass marketing is headquartered at Novozymes North America led by Emmanuel Petiot.

Pilot partnerships
Novozymes has a long history of mutually beneficial partnerships. The partnerships that Novozymes is entering into are visible signs of the research efforts. Implementing and fine-tuning Novozymes’ enzyme processes through collaborations with industrial partners that are bringing the technology to the pilot-scale testing phase is the current focus of biomass R&D.

For example, in June 2006 Novozymes signed a three-year research agreement with China Resources Alcohol Corporation (CRAC) on the development of biomass for biofuel in China. CRAC is a business area within China National Cereals Oils & Foodstuffs Corporation (COFCO) and has interesting technologies within the production of biofuel. CRAC has set up a pilot factory for the production of ethanol from corn stover in Zhaodong in Heilongjiang province.

In the long term, China is expected to become an important market for biofuel. The consumption of fuel has increased significantly in recent years in line with the increasing number of cars, and this has brought a focus on sustainable energy, especially biofuel.

It is commonly agreed that the production of first-generation ethanol based on food crops will not grow very much in China in the coming years because China largely imports corn and other cereals as foodstuffs. In contrast, China is expected to focus on the development of non-food crops such as cassava and sweet sorghum, and on second-generation biofuel from biomass.

In the USA, Novozymes has recently signed a partnership with Broin with the aim of taking the next steps needed to bring cost-effective ethanol derived from corn stover to market. The collaboration is an extension of the close partnership between the two companies; it is an opportunity for Novozymes to put its unique biotechnology platform to work and for Broin to aim for fast commercialisation.

These are just two examples of what is happening in the drive to bring biomass-based ethanol into the commercial arena.

Integrated approach
The production of ethanol from biomass can be broken down into the steps shown in the diagram. For a successful commercial process, all these steps need to be looked at in a holistic way because there is a complex interplay between them.

Lignocellulosic fibres are composed of three major fractions: cellulose, hemicellulose and lignin. Enzymes are able to attack the polymeric sugar chain in the cellulose and hemicellulose fractions, releasing monomeric sugars for fermentation. Pretreatment is needed to open up the fibres and make the lignocellulosic substrate accessible to enzyme action. Obviously the enzymes need to match the substrate. If a dilute acid pretreatment is used, most of the hemicellulose is degraded and a hemicellulase will not be needed. However, if an alkaline or neutral pretreatment is used, the hemicellulose still needs to be hydrolysed and hemicellulases will be needed. For researchers or companies that want to test enzymes in the laboratory, a Novozymes Biomass Kit is available with small samples of enzymes.

Another challenge is being faced at the fermentation stage because the 5-carbon (C5) sugars produced by the degradation of hemicellulose are not fermented by the yeast currently in use. Research is proceeding to develop organisms that can effectively utilise these sugars in order to increase ethanol yields and make the whole process more economical.

Collection of feedstock is a logistical challenge. Corn stover, which has been the subject of most research in the USA and China, is often not collected and is left in the fields to decompose. Systems of collection need to be established. That is why trials with biomass are often based on what are known as ‘captive streams’ - existing residues or by-products from first-generation ethanol plants. Corn fibre left over after the processing of corn starch and bagasse left over from sugar cane processing are examples of lignocellulosic raw materials that are readily available for conversion. Wood chips and wood trimmings could also be used.

Renewable fuel
Biomass provides a renewable feedstock for producing biofuel as an alternative to petrol (gasoline). With rising oil prices and strong government incentives, producing ethanol from biomass is becoming more viable step by step. With a growing awareness of global warming, biofuels could have a bright future. With political, economic and environmental factors favouring biofuels, there is now a strong will in certain countries to develop the conversion of biomass to ethanol.

Novozymes is engaged in an unprecedented research effort to find the cellulases and hemicellulases that the second-generation fuel ethanol industry will need in order to succeed.

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The Future of Ethanol

The Future of Ethanol

Centre’s cellulosic biofuels project is a first for Australia

By Ian Thomson

There is little doubt that the fuel v food debate will fall silent when the second generation of biofuels reaches the production stage.

Some of the best scientists in their field – including chemical engineers and plant biologists – are unlocking the secrets to the production of cellulosic ethanol, which uses the non-food components of plants as feedstock.

Depending on whom you talk to, cellulosic ethanol will be a commercial reality in anywhere from three to 12 years from now.

One of the organisations heavily involved in the race to develop second generation biofuel is the Molecular Plant Breeding Co-operative Research Centre (MPBCRC) in the northern Melbourne suburb of Bundoora.

The largest consortium of molecular plant breeders in Australasia was formed in 2003 under the Federal Government funded Co-operative Research Centres Program. MPBCRC technologies are being commercialised and delivered through the involvement of breeding and seed organisations in Australia and around the world.

CEO Dr Glenn Tong says existing approaches involving the fermentation of grains into ethanol places increased pressure on food production systems, leading to higher food and feed prices.

“Future demand for bioethanol is likely to far exceed supply if the industry is confined to using first generation, starch-based ethanol production,” he said. “The future is in second generation biofuels – ethanol produced from cellulosic biomass like wheat straw and sugar cane bagasse.

Taking sides – The biofuel debate

Some call it the only sustainable way to drive into the future, while others deem it harm­ful to world society and the environment – the debate about the benefits of biofuel or fuel ethanol is raging around the world. Novozymes develops bioinnovative solutions to help produce biofuel cost-effectively and efficiently – and clarifies its position in this debate.

Traditionally, Novozymes’ enzymes have been used in industries and applications where the benefits clearly outweigh any other concerns. In the biofuel industry, the production and use of biofuel presents both opportunities and risks, and is the subject of extensive debate and reports. Novozymes supports taking a critical look to ensure that biofuels are produced and used in a responsible, beneficial, and sustainable way. “Novozymes’ enzymes are used extensively in the making of fuel ethanol, but as clear as the benefits of using enzymes to produce fuel ethanol are, the benefits of biofuel itself are under discussion and it is important to establish the facts and take a stand,” says Karen Margrethe Oxenbøll, Head of Eco Efficiency Assessment at Novozymes. Food versus fuel The most prevalent debate is food versus fuel. It is difficult at times to justify putting good old corn in the gas tank while the UN is pleading for hunger relief in Sudan. Can tanking up a 4x4 with biofuel for a joyride be more important than feeding a starving child? But is this a fair question? “The issue of food scarcity is highly complex. Hunger is essentially a matter of income distribution; global food production is more than enough to feed the world population. Most of the world’s 800 million undernourished people live in rural areas, and are dependent on agriculture. The increased demand for agricultural products may allow them to sell their crops at a decent price. These people have been hurt by decades of declining agricultural prices; a trend which apparently has stopped now,” says Thomas Odgaard, Analyst at Novozymes. “There is no reason to believe that use of biofuels will lead to general food shortage.” Thomas Odgaard, Karen Margrethe Oxenbøll, and Peter Halling analyze the pros and cons of biofuel. Recent data (from July 2007) from the US Department of Agriculture show that farmers in the United States are on track to grow their biggest corn crop ever, nearly 12.8 billion bushels (approx. 325 million tons), which will limit the increase in corn prices. “The increasing price of food around the world has also been blamed on biofuel,” says Thomas Odgaard. “But increased use of biofuels is only part of the explanation. Increased demand for food, especially in India and China, and poor global harvests are other important factors. Further, it is important to remember that the costs of agricultural products only account for a small part of the commercial price of food; a 50% increase in agricultural price only results in a 5% increase in the cost of bread.” Food makes up a declining share of household budgets in Western countries because food is at its historically cheapest level and incomes have increased. Sixty years ago, an average British family spent one-third of their income on food; today the figure has dropped to one-tenth. The next-generation biofuel, known as cellulosic ethanol, will be made from what is deemed as waste matter, including corn stover, bagasse, other agricultural and industrial by-products, but also energy crops like switch grass, which binds more carbon and requires less fertilizer than traditional crops. The technology is still new and it will take some years to make it commercially viable. This second-generation biofuel will offer a more sustainable solution than biofuel made with feed starch like corn and wheat, making the food versus fuel debate moot. Nature versus the future The question is quite simple: Is Mother Nature smiling because biofuel-driven cars emit less greenhouse gases (GHG) or is she frowning because of the contamination of agricultural land with too much fertilizer? “The GHG savings from substituting gasoline with ethanol are undisputable, as long as it is based on sustainable production of biomass. The savings in CO2 emissions range from 20% for first-generation technology as commonly practiced to about 80% for second-generation technology,” says Peter Halling, Marketing Manager in Biomass at Novozymes. In addition, integration in energy production may provide CO2 emission savings of up to 70% for first-generation technology. The magnitude of fossil fuel savings ranges from about 25% for first-generation technology as commonly practiced to about 90% for second-generation technology. However, since biofuel is based on agricultural production, it is connected with environmental loads in terms of acidification and nutrient enrichment; to a large extent because of the application of high levels of fertilizers. “The impact of the nutrification is local and the general consensus is that this concern is outweighed by the greater positive contribution biofuel makes to climate change and resource depletion,” says Peter Halling. Implementation of second-generation technology may also cause additional risks in terms of soil erosion and reduced levels of soil organic carbon. However, with the use of the residual materials from corn and sugar production, such as corn stover and bagasse, less land is needed for biofuel production. Other perennial grass energy crops like switch grass need less fertilizer, pesticides, and water – and can enrich soil nutrients and provide ground cover to reduce erosion because it is mowed instead of plowed. “Hunger is essentially a matter of in­come distribution; global food production is more than enough to feed the world population. There is no reason to believe that use of biofuels will lead to general food shortage.” Thomas Odgaard, Analyst at Novozymes Show me the money Government subsidies put in place to support the fledgling biofuel industry in the EU and the US, are widely criticized. “Subsidies are vital in the early stage of market development. Demand is ensured through government mandates and standards, and governmental incentives are needed along the supply chain to provide supply,” says Thomas Odgaard. Once the industry is commercially viable without government support, the subsidies will be phased out, as is the case in Brazil. Biofuel subsidy critics believe that biofuel offers no energy savings as it takes more energy than in a gallon of ethanol to produce a gallon of ethanol. However, the US Department of Energy and the National Academy of Sciences have endorsed the claim that there is a positive modest energy gain when using biofuel instead of fossil fuel. It is also relevant to consider that the current use of biofuels can prepare us for the time when oil prices rise sky-high due to reduced supply. There is good reason to believe that the total costs of shifting energy resources will be lower the earlier and more controlled the shift is. It has also been argued that the increase in the use of biofuels is often partly justified by positive job creation effects and to some extent positive contributions to economic activity. “The use of biofuels only has a positive effect on the economy if the people hired in the industry were previously unemployed or earned lower salaries in their previous job,” says Thomas Odgaard. “Hence this is a weak argument for promoting biofuel in high-income regions with low unemployment, like we have in Denmark, compared to low-income regions with high permanent unemployment, like in developing countries and some rural areas.” Increased use of biofuel will mainly create jobs in rural areas. Biofuel will build local economies as most pretreatment and conversion will take place close to the feedstock production centers. Eat the corn, drive the cob Many forms of cellulosic biomass can contribute to the production of bioethanol, including agricultural waste, forestry waste, industrial waste and by-products, municipal urban waste, and energy crops. These cellulose-containing natural waste products are widely abundant and can be sustainably produced. But let’s face it – the biomass-to-fuel industry is in its infancy. While the industry holds a huge amount of potential there still exist many barriers to overcome before the high targets that are set by governments and forecasts in the media are met. “Biomass is a key focus area for Novozymes. We believe that biomass provides a viable option and realistic means to replace fossil fuels. We have substantial investments in the industry in close co-operation with large industrial players, and we will encourage governments to do more to help develop second-generation fuel ethanol and ensure that the biomass used as raw material is produced in a sustainable manner,” says Peter Halling.