Green Biologics raises £1.58 million to develop biobutanol - supported by the Carbon Trust

Green Biologics (GBL), an Oxfordshire biotechnology company, has raised £1.58 (€2.3/US$3.2) million for the development of biobutanol. The funding round involved existing shareholders as well as new investors, Carbon Trust Investments and Oxford Capital Partners who led the investment round. The Carbon Trust is an independent company funded by the British government.

GBL is developing 'Butafuel', a liquid biofuel for transportation superior to and more sustainable than current first-generation ethanol (more here). Butafuel is based on an alcohol called butanol produced by a naturally occurring microbe in a sugar fermentation process that was first during the First World War but largely displaced by the 1960s with a cheaper petrochemical method. In addition to butanol, the fermentation process also produces acetone, an important solvent and chemical precursor for polymers and plastics.

GBL has developed new butanol producing microbial strains using genetic engineering and will integrate these strains into a novel production process (schematic, click to enlarge). This technology advance should result in a step change in the economic viability of the fermentation.

We believe that our Butafuel product will supersede 'first generation' biofuels within five to ten years as a fuel extender and it ultimately has the potential to completely replace fossil fuels for road and air transport. - Dr Edward Green, Founder and Chief Executive Officer, Green Biologics

GBL is ‘recommercialising’ the biobutanol fermentation process by applying its skills in microbiology, molecular biology and fermentation, and has developed novel microbes and advanced high temperature fermentation processes.

In addition, the company targets waste feedstocks for fermentation from agricultural and industrial processes, such as paper and pulp, sugar processing, biodiesel production and food waste. This reduces the need for expensive waste treatment and diverts waste away from landfill. Utilisation of waste feedstocks for fermentation is more sustainable and environmentally friendly than use of food crops such as sugar beet, maize and wheat, the current feedstocks for bio-ethanol.

We envisage our Butafuel production units being fitted alongside plant sources, such as paper mills and sugar production facilities, so that we are located right next to the suppliers of waste materials. Plants with existing ethanol units could also be retro-fitted for butanol production. Longer term, the company is committed towards the development of bio-refineries for the production of a range of biofuel and biochemicals from waste and a full range of cellulosic feedstocks. - Dr Edward Green

By optimising the fermentation process, and using cheaper waste feedstocks, GBL aims to achieve a two to three fold reduction in cost:
energy :: sustainability :: bioenergy :: biofuels :: biomass :: sugar :: cellulose :: fermentation :: biobutanol ::

Green Biologics will use part of the new funding for a scaled-up, pilot demonstration of its proprietary fermentation process for bio-butanol on a range of model waste feedstocks in its extended laboratory facilities.

'First generation' biofuels such as bio-ethanol and bio-diesel have their limitations when they are made from inefficient feedstocks. These biofuels do not fit neatly into the existing fuel infrastructure and there are some concerns over their sustainability and longer term environmental impact. However, they are a good start and pave the way for 'second generation' biofuels, such as butanol, which is a better fuel offering greater sustainability and environmental benefits.

Biofuels that are both cost effective and renewable will have a key role to play in creating a low carbon economy in the UK. The market is clearly interested in advanced biofuel technologies that can cost effectively process non crop feedstocks and in this case generate butanol with its associated benefits over ethanol. A key part of the Carbon Trust’s role is to provide investment in exciting companies like Green Biologics in order to bring low carbon businesses like this to market more quickly and we are delighted to come on board as a new investor. - Jonathan Bryers, Partner at Carbon Trust Investments

Biofuels are increasingly being adopted by key industry players in response to climate change proposals and the demands of environmentally aware consumers. In 2006 BP and Dupont announced plans to collaborate with British Sugar to manufacture butanol in the UK (earlier post). BP provides a route for butanol into the transport fuel market and aims to blend butanol with conventional fossil fuels.

In addition, in an attempt to curb C02 emissions, the European Commission has proposed that biofuels should make up 10% of total fuel sales by 2020 which represents a huge increase in the market for biofuels. Within the UK, the Renewable Transport Fuel Obligation (RTFO) will, from April 2008, require fuel suppliers to ensure that 2.5% of their total fuel sales are made up of biofuels, rising to 10% by 2020. The UK Government intends that butanol should count as a renewable transport fuel under the RTFO.

The Carbon Trust is an independent company funded by the British government. Its role is to help the UK move to a low carbon economy by helping business and the public sector reduce carbon emissions now and capture the commercial opportunities of low carbon technologies.

References:
AlphaGalileo: Green Biologics set to develop Next Generation Biofuel - supported by the Carbon Trust - October 18, 2007.

Biopact: ABF, BP and DuPont in joint venture to build $400 million bioethanol, biobutanol plants in the UK - June 26, 2007

Biopact: Fuel testing shows biobutanol performance similar to unleaded gasoline - April 20, 2007

Biopact: DuPont outlines commercialisation strategies for biobutanol, cellulosic ethanol - February 22, 2007