Biofuels Creates Investment Opportunities In Option Power

Barack Obamas ambitious American Recovery and Reinvestment Program will invest $150 billion in alternative energy more than the next ten years. However the biofuels industry could double in 3 years. If youre thinking ethanol, think once more

Jaws hit the floor CEOs of significant oil businesses stand, shaking their heads, praying the ambitious targets of our new president will not be met.

It could imply their jobs.

Exxon Mobils (XOM:NYSE) CEO, Rex Tillerson says it cant be accomplished. Yeah, he hopes Heres a list of what President Obama wants out from the power portion of his $700 billion recovery plan:

Putting 1 million plug-in-electric hybrid cars (PHEVs) on the road by 2015 vehicles that can get the equivalent of 150 miles per gallon. (Toyotas currently preparing on leap-frogging GM within this department.)
Making five million new green jobs by investing $150 billion more than ten years to stimulate clean-energy infrastructure and manufacturing for example wind turbine plants and solar panels carpeting the nations rooftops. (Old manufacturing plants inside the Midwest are currently getting refitted to create wind turbines.)
Cutting U.S. oil consumption, inside ten years, by the quantity at present imported in the Middle East and Venezuela combined.
Requiring 10% in the nations electrical energy to come from renewable energy sources, like wind, solar, geothermal and biomass by 2012. By 2025, raise that to 25%. (Obama desires to double our use within the subsequent 3 years.)
Establishing an economy-wide cap-and-trade system that cuts U.S. greenhouse gas emissions by charging for each ton of carbon dioxide that goes into the sky from coal- and natural gas-fired US energy plants. (You'll find currently some exchanges trading carbon credits in London and Chicago.)
But lets talk about a single option that will support attain four of those ambitious bullet points: alternative fuels.

No, Im not talking about ethanol That fated fuel thats been (unfairly?) accused of raising meals rates and bankrupting farmers. Lets get off the ethanol train. Even cellulosic ethanol, which has the possible to revolutionize the alternative fuels sector.

Initial a little of history.

President Bushs State on the Union speech on Jan. 23, 2007, dropped a bomb around the oil sector: it referred to as for an annual 35 billion gallons of alternative fuels to hit the market place by 2017.

This massive increase represented an annual development price of 70%. That meant 700% in 10 years. The only way this might be carried out is via enormous investments in cellulosic biomass as well as other option fuel technology like gasification.

But cellulosic biofuel is very high-priced, and organizations are still operating out the kinks. You can find some pilot plants demonstrating its production, even though mass production is still several years off inside the future.

No doubt cellulosic biofuel is going towards the Huge League and soon with an estimated prospective of one hundred billion gallons of production a year. A much more realistic estimate is actually a production of 40 billion gallons a year, but we wont see that appropriate off the bat.

But there is a technology thats currently in use that will:

Give an alternative fuel for cars
Supply an option fuel for power plants
Minimize demand for imported oil
Lessen waste
Lessen carbon emissions

There is one particular firm that will cheat the cellulosic biofuel cycle, and skip a massive element of the fees of generating biomass-based alternative fuels.

Heres the process It combines the renewable side of ethanol production by using a renewable feedstock together with the flexibility of coal-to-liquid technology by being in a position to create fuel to get a variety of various finish makes use of.

Exit Zeus, Enter Pyrolysis

Pyrolysis sounds like some Greek god of fire, but there genuinely isnt any burning involved a minimum of within the classic sense.

1 business, Dynamotive Power Systems Corp. (DYMTF:OTC BB) makes use of pyrolysis to create a biomass-based carbon that could then undergo the Fisher-Tropsch (coal-to-liquid) approach to produce synthetic fuel.

Within a nutshell, a feedstock goes into a boiler/reactor where it becomes quickly vaporized by the 450-500 degree Celsius fluid. The resulting vapor passes through a filter that collects char and feeds the gas into a condenser. When the gas enters the condenser, the synthetic fuel falls into storage, and any leftover gas is returned towards the boiler/reactor.

Nothing is wasted.

Why go through all this problems to create a synthetic fuel that needs to undergo yet yet another approach before it may be employed in cars?

Biomass energy demands extremely large quantities of biomass to create a considerable amount of fuel or power. The collection and transportation of all that biomass can be fairly costly and time consuming. Pyrolysis cuts these fees enormously. Its 1 less step the producer has to go through to create synthetic fuel.

Dynamic Dynamotive

So lets talk much more about Dynamotive. Its patented fast pyrolysis technologies could be the following step in generating enormous amounts of option fuels inside a cost-competitive way, which the Obama program requirements to be able to fulfill its ambitious objective of doubling use of option fuels within the next three years.

A bonus? Dynamotives pyrolysis is carbon neutral. Every product designed gets used or reused, without having any waste.

Dynamotives BioOil includes a number of makes use of without having to go through the Fischer-Tropsch approach. It can be utilized for heat and power generation or as a partial replacement for fuels in industrial settings like boilers and kilns.

The companys Intermediate BioOil (a mixture of BioOil and char) is more viscose and heavy, which can be more efficient for heating demands and more price successful with regards to transportation.

Char is yet another product Dynamotive harvests from its pyrolysis, and it's a great substitute for industrial fossil fuels in power generation. By way of example, burning char and coal within a conventional coal-fired energy plant reduces sulfur emissions.

Heres the thing All three merchandise may be utilised to make alternative fuels for cars.

The business says, Dynamotive views BioOil as a crucial intermediate inside the conversion of biomass to hydrogen or [synthetic gas] because the volume reduction linked together with the conversion of biomass to BioOil, Intermediate BioOil and Char results in enormous reduction in transportation and storage expenses. Syngas can be employed as a fuel all on its personal, or as a feedstock for
synthetic fuel production.

The Business

Expansion happened very rapidly for Dynamotive. The companys pilot BioOil plant is actually a 100-tonne-per-day plant in West Lorne, Ontario. It supplies Magellan Aerospace Limiteds two.5 MW gas turbine with BioOil for power generation.

Back inside the initial half of 2007, Dynamotive expanded this plant from 100 tonnes each day to 130 tonnes every day. This achievement led for the improvement of one more BioOil plant strategy.

The new 200-tonne-per-day plant was constructed in Guelph, Ontario, about 45 minutes outdoors of Toronto. It is going to produce 130,000 barrels of oil equivalent every year, at complete capacity. The Guelph Plant may also be modular, allowing for rapidly setup and straightforward expansion.

In reality, the Guelph Plant internet site has the capacity for four plants. Guelph might turn out to be Dynamotives new home for its state-of-the-art technical study and improvement function headquarters.

Let me show you what good option power news can do for this business. Dynamotive saw a robust enhance in both volume and price tag on Sept. 7, 2005. Costs went from $0.55 to $1.66 in seven months.

Something strike you about that date? Its significantly less than a month soon after our Power Policy Act of 2005 mandated 7.five billion gallons of ethanol be blended into our gasoline stocks, and provided $11.5 billion in funding for option power.

This current contact by President Obama for any doubling of alternative fuels inside the subsequent three years could have the same benefits. This company has been extraordinarily beat down more than the past year, even though the corner seems to possess occurred.

The organization bottomed out at $0.11 on Nov. 28, 2008. Because then, though, the firm had doubled its share price tag, and could be set to double once again inside the subsequent six months.

This company is a single you shouldnt sit on. Dec. 1, 2008, saw Dynamotive sign an agreement with China with regards to the improvement of a new plant in Henan province the first of Dynamotives plants to become built outdoors of Canada.

Could the U.S. be the subsequent place to determine a Dynamotive plant? Im confident Obama would want a couple

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