May 17, 2020

Types of Biofuels: Ethanol, Biodiesel, Biobutanol

Biofuel
biodiesel
biobutanol
isobutanol
Admin
4 min
Several companies are developing various types of biofuels.  We reveal the pros and cons of the top three: Ethanol, Biodiesel, and Biobutanol
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Types of Biofuels—Ethanol, Biodiesel, Biobutanol—and the Companies Making Them

 

Ethanol

Ethanol is essentially pure alcohol—the same stuff that gets you into trouble on Saturday nights—and is perhaps the most ubiquitous of the alternative biofuels making their way into people’s gas tanks.  It can be made from various sources, but the most common are corn and sugarcane.  The U.S. government in early 2011 approved ethanol blends of up to 15 percent for use in vehicle models newer than 2001, and blends of 10 percent have been used for years now with no need for engine modification.  But there has been controversy surrounding just how sustainable ethanol actually is. 

Pros

  • It’s renewable! Ethanol can be regenerated given sufficient crop yield.
  • Domestic production reduces dependence on foreign fossil fuels and boosts rural farming economies.
  • Ethanol is cleaner burning than gasoline, releasing roughly 15 percent less greenhouse gas emissions
  • Advances in cellulosic ethanol can make ethanol fuel from waste cellulose like scrap wood, food byproducts, and non-food plants such as switchgrass

Cons

  • Ethanol derived from corn, beets, and sugarcane competes directly with food supply, and drive up the cost of other foods and grain-fed meats
  • Farmed ethanol crops tend to erode soil and use toxic industrial agrochemicals that can contaminate water supplies.
  • Ethanol has less stored energy than gasoline, reducing fuel mileage from between 15 to 30 percent
  • It currently requires more energy to create large quantities of ethanol than it produces; however, cellulosic ethanol may be the “magic bullet” to solve this and the food competition dilemma.
  • High blends or pure ethanol can be corrosive to engines not designed to run on it, and cannot be transported via existing oil pipelines due to corrosion restraints.
  • Converting a standard gasoline engine to run on high blends or pure ethanol can be costly, ranging from several hundreds to thousands of dollars.

Top Ethanol Companies

  • Archer Daniels Midland
  • Growth Energy
  • Aventine
  • Cosan

 

Biodiesel

Gaining in popularity, biodiesel mimics petroleum-based diesel fuel and is derived from vegetable or animal oils.  In fact, several biodiesel companies simply collect used restaurant cooking oil and convert it into biodiesel.  What’s more exciting is the more recent promise of biodiesel-generating algae and bacteria strains.  Scientists are even genetically engineering these microorganisms to create biodiesel lipids with minimal or no feedstock necessary, just sunlight and CO2, much like plant photosynthesis!

Pros

  • It’s also renewable!  Sufficient plant, algae or bacteria crops can yield abundant biodiesel fuel.
  • It’s recycled!  Much of the biodiesel on the market is derived from used cooking vegetable oils.
  • Domestic production reduces dependence on foreign fossil fuels and boosts rural farming economies.
  • Reduces tailpipe emissions compared to petroleum-based diesel, is cleaner burning, and contains no sulfur, eliminating sulfur dioxide emissions.

Cons

  • Biodiesel is currently more expensive to commercially produce than petroleum diesel as production infrastructure is not yet on a mass-scale
  • Biodiesel is susceptible to cold weather, and can gel when the temperature drops, causing fuel injection problems (although this can be fixed with costly engine modifications). 
  • While several diesel vehicle engines can run on biodiesel with minimal or no modifications, biodiesel does not work in standard gasoline engines. 
  • Biodiesel production increases food costs, both in food crops used to generate biodiesel, as well as feedstocks for biodisel generating algae and bacteria.

 

Top Biodiesel Companies

  • Renewable Energy Group Inc.
  • DuPont
  • Australian Renewable Fuels Limited
  • Imperium Renewables Inc.
  • Cargill, Inc.

 

Biobutanol

While it’s the less well known of the three biofuels featured, biobutanol holds the most promise.  Biobutanol is simply isobutanol derived from bacteria or algae, much like biodiesel.  However, the beauty of biobutanol is that it can potentially be directly used in standard gasoline engines with no modification!

Pros

  • It’s also renewable!  Biobutanol is produced from algae or bacteria.
  • It can be used directly in gasoline engines with no modification.
  • It can use existing pipeline and supply chain infrastructure for distribution.
  • It has a high octane level, so there’s little if any loss in fuel mileage.
  • Non-corrosive to engines and pipelines
  • Domestic production reduces dependence on foreign fossil fuels

Cons

  • Feedstocks are required for production, although non-food feedstocks and genetically modified bacteria and algae strains may resolve this issue.
  • Production costs are relatively high, but the industry is in its infancy, and as it grows costs will come down.

Top BioButanol Companies

  • Butamax: a DuPont and BP joint venture
  • Cobalt Technologies
  • Bioenergy International

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May 17, 2021

USS pension fund buys 50% stake in Bruc Energy

Pensionfunds
Investment
Renewables
spain
Dominic Ellis
3 min
USS will invest €225M in return for a 50% stake in Bruc Energy and 4,000MW pipeline of solar PV farms

The Universities Superannuation Scheme (USS) private pension fund has taken a 50% stake in Bruc Energy, a Spain and Portugal renewables-focussed investment vehicle created by OPTrust and Spanish businessman, Juan Béjar. 

In the transaction arranged by USS Investment Management, the wholly-owned subsidiary and principal investment manager and advisor to the Scheme, USS has invested €225M (c.£200m) in return for the stake in a major pipeline of 4,000MW of PV farms. Bruc Energy has an ambitious growth plan that goes beyond this to invest in other green energies, such as wind power.

USS, which announced two weeks ago its aim to be net zero by 2050, already has a strong relationship with both OPTrust and Juan Bejar through Globalvia, a specialist infrastructure platform focussed on managing rail and highways assets around the world. 

Spain’s sun-drenched climate and national target to reach 100% renewable-based generation by 2050 make it an attractive place to invest in solar energy. In addition, the decades long lifespan of solar PV panels make them well-suited to USS in helping pay members’ pensions long into the future.

USS Investment Management CEO, Simon Pilcher, said: “We are delighted to be committing further finance to renewables and particularly to a major Spanish solar platform like this. We have already invested or committed around £1 billion to renewable energy and demand for this will only increase as more and more countries transition to lower carbon. We know that our members care very much about climate change and ESG and we are convinced that USS playing its part in supporting the transition to a low carbon economy makes good financial sense, too. This announcement closely follows on from our stated ambition to become Net Zero by 2050 so this transaction and others like it will be a key plank of our strategy going forward.”

Gavin Merchant, Co-Head of Direct Equity, said: “We have worked alongside OPTrust and Juan Béjar for many years and are delighted to be making this investment. The long-term nature of solar and the steady returns make renewables attractive to a pension scheme needing to pay pensions for years to come.” 

OPTrust’s Morgan McCormick, Managing Director, Private Markets Group UK said: “We are excited to have USS join Bruc Energy building on our strong existing relationship. Their investment will help Bruc become one of the leading renewable energy platforms in Spain. At OPTrust, we believe that investing in renewable energy helps transitions the world to a more sustainable economy. In doing so, we can continue to deliver on our mission of paying pensions today and preserving pensions for tomorrow.”

Béjar said the partnership is a key step to establishing Bruc as one of the more dynamic players in the renewables industry in Spain, because it ensures access to the funds to develop our current portfolio. "All three shareholders of Bruc Energy share a long-term vision, but also the ambition and the social responsibility to counter the effects of climate change in the short-term," he said.

Following the transaction, which remains subject to conditions, including regulatory approval, Bruc Energy will be owned 50% by USS and BROP, a vehicle owned by OPTrust and Béjar. The transaction was advised by Royal Bank of Canada (RBC), Greenhill and Nomura. Juan Béjar will be the president of Bruc Energy and Luis Venero the CEO.

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