WATCHING THE WORLD: Beyond petroleum

March 17, 2008
Beyond petroleum is the direction various companies are headed these days, as many of them turn to the production of biofuels, especially second-generation.

Beyond petroleum is the direction various companies are headed these days, as many of them turn to the production of biofuels, especially second-generation.

Brazil’s Petroleo Brasileiro SA (Petrobras) and biotechnology firm Kior Inc., Menlo Park, Calif., last week signed a cooperation agreement over the development of second-generation biofuels.

Petrobras wants to use plant waste materials to produce bio-oil using Kior’s biomass catalytic cracking technology. “Second-generation biofuels don’t compete with foodstuff plants,” Petrobras said, underlining a point of great significance these days.

Many governments and companies have had to temper their enthusiasm for biofuels after howls of protest were raised last year about their ill effects on the price and availability of food.

Cautious and circumspect

While some folks have actually denied any such ill effects on food, others—more cautious or circumspect—have taken heed. Instead of risking adverse publicity about adding to food scarcity or upward pricing, they are seeking nonfood sources of feedstock for biofuels.

That explains the relationship between Petrobras and Kior. One could almost say that the interest by Petrobras is focused on a single fact: Kior has been studying biofuel production from sugarcane bagasse since 2006.

Brazil is a leading producer of biofuels from sugarcane. In fact, it is the world’s second-largest producer of ethanol and its biggest exporter.

But other folks are getting in on the biofuels act, too, such as Chevron Corp. and Weyerhaeuser Co., which have launched Catchlight Energy LLC, a 50-50 joint venture to develop the next generation of renewable transportation fuels from nonfood sources (OGJ Online, Mar. 4, 2008).

In contrast to the Petrobras venture, which will use sugar as feedstock, the Catchlight JV will make use of timber, surely a plentiful nonfood commodity in the US Pacific Northwest that Weyerhaeuser calls home.

Catchlight catches on

Chevron and Weyerhaeuser will contribute resources, including funding, background technology, and employees, to Catchlight, which will research and develop technology for converting cellulose-based biomass into what they hope will be economical, low-carbon biofuels.

Catchlight’s formation is the first milestone of a biofuels alliance Chevron and Weyerhaeuser made last year, and it reflects the companies’ shared view that nonfood biofuels will play an important role in diversifying the nation’s energy supply.

“Catchlight Energy brings together two leaders in their industries and leverages their strengths—from feedstocks to fuel manufacturing to marketing—to create a sustainable, economic, nonfood biofuels business at commercial scale,” said Mike Wirth, Chevron executive vice-president, global downstream.

According to Miles Drake, Weyerhaeuser senior vice-president, research and development and chief technology officer, “Catchlight Energy represents an imaginative approach to releasing this potential as we work to develop a sustainable solution to the world’s energy needs.”

The idea is clearly growing.