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April 25, 2008, 1:40 pm

Brazil to produce biodiesel from sugarcane

California startup Amyris engineers microbes to transform them into molecular oil refineries, digesting sugar to produce low-carbon equivalents of gasoline, diesel and jet fuel. Now in a bid to commercialize its technology, Amryis has struck a deal to create a joint venture with Brazilian ethanol giant Crystalev to produce biodiesel from sugarcane.

Some three-quarters of Brazil’s cars run on ethanol made from domestic sugarcane but the country imports diesel. “This is a game changer,” Amyris co-founder Jack Newman told Green Wombat this week at Fortune’s Brainstorm Green conference in Pasadena. “It gives us the ability to make a difference in terms of scale by tapping into existing agricultural land and Brazil’s ethanol infrastructure. It’s a great step forward for Amyris, and Brazil gets the option of producing ethanol or diesel from same resources.”

Most biodiesel today is made from soybeans or recycled vegetable oil and does not offer the same performance as petroleum-based diesel. The biodiesel produced by Amyris’ custom-designed microbes matches that performance and can be used in existing engines while cutting greenhouse-gas emissions by 80 percent, according to Newman, a microbiologist who is Amyris’ senior vice president of research.

If Amyris, an Emeryville-based company backed by marquee venture capitalists Khosla Ventures and Kleiner Perkins Caufield & Byers, can replicate its laboratory success in the field the environmental benefits could substantial.

For Brazil to become self-sufficient in diesel it would otherwise have to plant more soy, which means cutting down more of the Amazon rainforest that already is being destroyed to plant soy destined for North American dinner tables. Sugarcane grown on reclaimed pasture land and distilled with Amyris technology can produce ten times as much diesel per acre as soy. “You won’t have to displace crops into the rainforest area,” Newman says.

Production of the Brazilian biodiesel is expected to begin in 2010 if all goes according to plan and the necessary regulatory approvals are obtained.

“One of the reasons Brazil is so excited about the technology is that this gives them a biodiesel option with this great infrasture they already have,” Newman says. “It could provide them with 90 billion gallons a year without having to reclaim new land.”

I can only wish them success in the project and hope new options would open to other states as well

Posted By cupbeans : May 11, 2008 7:52 am

You know with all these billions pouring into biofuels and having witnessed the dot.com bubble burst and then the subprime bubble burst (yes, I am ancient) I have to ask don’t investors have a creative bone in their body? Are they all so stupid and mindless as cattle being led off a cliff?

Why isn’t creativity and intelligence a prime prerequisite in order that one become an investor? Surely you’re not going to tell me all this stupidity is being driven by rich people trading on e*Trade?

Posted By Dreamdeceiver, Silcone Valley : April 30, 2008 9:43 pm

With all the discussion about diverting corn to ethanol in the US I am surprised that the discussion of alternative sources instead of corn has not surfaced. I recently watched a show regarding alternative fuel sources and they mentioned switchgrass as a source that provides a much higher gallon per acre than corn. And you could even grow this stuff in unusual places (highway medians)which would reduce the amount of farmland that needs to be utilized in producing fuel foods. We’ve got a long way to go in this country and the business world needs to show the way.

Posted By Dave, Cleveland, Ohio : April 28, 2008 8:30 am

It’s my understanding from my daughter-in-law, who is Brazilian, that the country has used sugar cane for years in their cars. Also, I believe that the U.S. has a duty on sugar cane to prevent it from coming into the U.S. thereby protecting the farmers. This is Congress’ fault, not Bush. In addition we pass a law requiring the production of ethanol which does nothing to help polution, is no less expensive and increases the cost of food. It’s time the politicians function for the good of the public instead of their own re-elections.

Posted By Frank Lane, Ballwin, Missouri : April 27, 2008 8:32 pm

What is the price of gasoline and/or diesel in Hawaii ?
Please, explain to US why Hawaii has not and is not producing ethanol and now biodiesel from their sugarcane?

Posted By JGB, Olyberg, WA : April 26, 2008 11:48 pm

Hey, why does CNN keep deleting my comments?

This article is just an advertisement for a company that has yet to prove itself. Nothing in this article shows previous acheivements at all, only wishful thinking “if all goes as planned”. Good luck with this. Let me know how this works out for ya.

And stop deleting my posts. Don’t you like someone else’s opinions?

Posted By DL, Amherst NY : April 26, 2008 11:01 pm

It is a breath of fresh air to see common sense being pratciced instead of poor planning not thinking of the coincidences. President Bush has made such a big hooplaover the development of ethanol where over the next years the entire corn crop of the United States will be towards ethanol production. Once the corn is harvested; the product will have be converted into sugar then into ethanol. The oil companies will receive a 52 cent tax subsidy for each gallon produced. So the farmer who once grew corn for food now can be paid by the government towards ethanol. The result higher food prices and adding to the grain shortage we are seeing now. If the oil companies were smart instead of being greedy they would have their lobbyists push Congress to establish trade to import their bio-fuel where the need for oil from the Middle East wouldn’t hanging over our heads. My hat is off to Brazil for have the insight to help themselves. wsahington should take a look at this but as we know hind sight is not 20/20

Posted By Rick - tappahannock Va : April 26, 2008 6:23 pm

Hey Todd, you’re totally wrong about cutting down more of the Amazon rainforest that already is being destroyed! They are not destroying Amazon rainforest to plant, but to sell the valuable wood. It was proved the Amazon ground is not productive.

Posted By Ruben, Seattle, WA : April 26, 2008 3:26 pm

Glad to read this article, but this is nothing new for Brazil and Venezuela. What the article didn’t mention is that the “sugarcane” technology has been supporting these economies for the last 30 years. This proves to me that biofuels from sugarcane is sustainable. Will they ever not have to import oil? No, they are not slaves to OPEC, either. The US needs to realize that biofuels from corn is not sustainable and follow Brazils lead.

Posted By kd from Seattle, Washington : April 25, 2008 11:43 pm

This might actually work. I was concerned about yet another ethanol product taking land away from agriculture, but it doesn’t seem to be the case in this instance. It seem to be a choice between refined sugar and fuel. Seems like an easy choice to me.

Posted By Radfahrer, Chico CA : April 25, 2008 4:48 pm
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Todd WoodySilicon Valley these days is all about making the green by being green. A senior editor for Fortune in San Francisco and a veteran environmental and technology journalist, Todd Woody writes about green tech as climate change drives new business models, technologies and opportunities. Before joining Fortune, Todd was an editor at Business 2.0, and the business editor of the San Jose Mercury News. Previous posts included senior writer and senior editor at The Industry Standard magazine, freelance writer for Wired magazine in Australia and a senior writer and environmental reporter at The Recorder, a San Francisco legal daily. He's one of the few people on earth who have seen the rare northern hairy-nosed wombat in the wild.
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