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Permalink Reply by The_Baron on July 1, 2009 at 9:06

Full article:

Dow project may cut ethanol price
Plans made for a Texas biorefinery that uses algae to make fuel for as little as $1 a gallon
Jaclyn Trop / The Detroit News
Dow Chemical Co.'s latest venture could make a host of consumer products -- from bread bags to home siding -- cheaper and more environmentally friendly.

The company announced plans Monday to build and operate a biorefinery that will use algae to convert carbon dioxide into ethanol, producing the fuel for as little as $1 per gallon.

If successful, the Midland-based chemical giant will find other commercial uses for the ethanol to replace natural gas as an ingredient in plastic products, including sandwich bags and milk jugs.


Through a partnership with Algenol Biofuels -- a startup in Bonita Springs, Fla. -- Dow hopes to create a breakthrough process to produce ethanol, a building block for other chemicals. Ethanol is a key ingredient in polyethylene, the most widely used of all plastics, which is found in everyday products, from food packaging to pipes. The chemical also is used in runway deicers, polyester for textiles, and paints.

The move could have significant implications for Detroit's automakers, according to Algenol Chief Executive Paul Woods. Woods said he already has met with representatives from Ford Motor Co. to discuss manufacturing more vehicles that would use ethanol. The algae-generated ethanol is compatible with technology in use.

"Ultimately, if we can produce a gallon cheaper than any foreign producer, it's enough to eliminate OPEC producers," Woods said, referring to the Organization of Petroleum Exporting Countries. "We want a low, long-term, stable price that the consumer can rely on."

Using algae in the conversion process, instead of other commodities whose costs can wildly fluctuate, means that the ethanol's price will be relatively consistent, he said.

The National Renewable Energy Laboratory, the Georgia Institute of Technology (Georgia Tech) and Membrane Technology & Research Inc. also are participating in the pilot project, which is expected to cost $55 million over five years and is awaiting approval of a grant request from the U.S. Department of Energy.

The biorefinery will fill 24 acres on Dow's Freeport, Texas, facility, the company's largest integrated chemical manufacturing site. The project is a good example of "the new innovative ways to get to projects that we care about," said Steve Tuttle, Dow's head of bioscience business development. Dow reported $58 billion in sales in 2008 and has 46,000 employees worldwide.

jtrop@detnews.com (313) 222-2300

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Permalink Reply by The_Baron on July 2, 2009 at 8:15

I am suprised this has not recieved any attention, I consider Ethanol to be the biggest obstacle to converting over to cng. As long as Ethanol contiues to grow their lobby in Washington will prevent any major switchover.

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