Feature articles

Fuel flexibility: greater demand for renewable fuels

15/03/2008

Alternative Energy Africa

The global market for biofuels is expected to grow significantly in the coming decades. Most analysts are predicting particularly strong growth fostered by second-generation biofuels.

The global market for biofuels is expected to grow significantly in the coming decades. Most analysts are predicting particularly strong growth fostered by second-generation biofuels. For example, let’s consider the US transportation fuels market. The US Department of Energy recently committed itself to increasing the use of renewable and alternative fuels in the transportation sector by the equivalent of 135 billion litres of ethanol per year by 2017. And, in February 2007, EU energy ministers agreed to increase the share of biofuels used in road transport to 10% by 2020.

Recent investment decisions by Shell have revealed much about the company’s attitude on biofuel developments. “We take this issue very seriously,” says Lionel Clarke of Shell Global Solutions’ Biodomain Group. “And we’re committed to leading the way when it comes to the sustainable development of fuel technology. In fact, Shell has been distributing first-generation biofuels for more than 30 years. In 2006, Shell sold over 3.5 billion litres—primarily in the US and Brazil—enough to avoid over 3.5 million tonnes of carbon dioxide (CO2) production.”

“We’re committed to the continuing development of this side of the business. Shell is strongly focused on crucial emerging second-generation biofuels – those produced from non-food feedstocks such as residues from agriculture and forestry.”

It’s these second-generation biofuels that Shell believes will help overcome some traditional concerns associated with such technology. These concerns include:

- Uncompetitive compared to conventional gasoline
- Offer poor fuel efficiency
- Compete for the world’s food supplies.

By using non-food feedstocks, such as woodchips and straw, second-generation biofuels do not compete with food crops and they offer an efficient way to manage agricultural waste. They also offer greater CO2 reduction benefits. It is possible that well-to-wheels CO2 production can be reduced by 90% when using biofuels at 100% concentration. And if produced on a commercial scale, biofuels have the potential to reach price parity with conventional gasoline and diesel. Cost competitiveness and the energy density of biofuels have been the major stumbling blocks to large-scale take-up for biofuel use until now.

Significant commercial quantities of competitive biofuels are, however, still not expected to become available for the next five to 10 years. Recent moves by Shell Global Solutions suggest that the company fully intends to be at the forefront of new developments when biofuel manufacturing does move to commercial production level. In 2002, Shell invested in the Iogen Corporation, a world-leading cellulose ethanol technology company in Canada.

Shell’s investment enabled developing innovative process technology to create cellulose ethanol from straw by using enzymes. In 2004, Iogen commissioned a demonstration plant for the fuel, and it is hoped this cellulose-based ethanol will be commercially available in significant quantities within the next 10 years.

“It’s proved to be a great partnership, where both parties bring different skills and expertise,” says Mr. Clarke. “Shell Global Solutions has the world-leading expertise in fuel research, technology implementation, distribution and blending. Iogen has developed an innovative cellulose-ethanol technology, based on many years of experience with enzymes. Together, we (Shell and Iogen) can bring this ground-breaking product to market on a commercial scale.”

In February 2007, Iogen Biorefinery Partners LLC was shortlisted by the US Department of Energy for potential funding to build a biorefinery in Shelley, Idaho. It is hoped that the plant could produce 18 million gallons of ethanol annually. In addition, a joint study undertaken by Shell with Iogen and Volkswagen in 2006 concluded that cellulose ethanol has the potential to be cost-competitive with regular gasoline and to offer better CO2 performance than conventional ethanol.

Further investment by Shell in Choren Industries, a German company, will also deliver the world’s first demonstration scale biomass-to-liquids (BTL) plant later this year. The plant will convert feedstock such as woodchips into a gas that is then upgraded into a high-quality synthetic fuel using Shell’s middle distillates synthesis technology. The BTL fuel can be blended with diesel for use in diesel engines and offers the potential to cut well-to-wheels CO2 emissions by 90% as compared to conventional fuels.

“Shell is a world leader when it comes to the development of environmentally friendly fuels,” concludes Mr. Clarke. “We are constantly searching for ways to deliver the goal of large-scale availability of clean, renewable fuels. With the business moves we have made in recent years with Iogen and Choren, that goal is now closer to becoming a reality.”