Case study: Turning straw into fuel
Transport biofuels are typically more expensive than petrol or diesel. However, they reduce dependence on oil and, because the plants absorb CO2 as they grow, they can also have lower overall carbon emissions, despite the extra energy required to harvest and process them.
The challenge now for biofuels is to make them cheaper, reduce the CO2 emitted during their production and use sources that do not compete for land with food production. That is why we have invested in Iogen Corporation, whose patented technology uses enzymes to produce ethanol from straw. The resulting ‘cellulose ethanol’ is a fuel with 90% lower GHG emissions than conventional petrol on a lifecycle basis and no need for extra arable land. Iogen’s demonstration plant has been producing fuel from straw since 2004. Iogen’s ethanol has the potential to be cheaper to produce than most of today’s biofuels. In 2006, Goldman Sachs – the investment bank – invested in Iogen. In early 2007, Iogen was one of six companies selected to receive funding under the USA Department of Energy’s $385 million cellulose ethanol programme – a further vote of confidence in the commercial potential of this exciting technology.
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