Poet prepares for second-gen biofuel push

It may still be about two years away from launching its first large-scale facility for producing fuel made from cellulosic material, but that has not stopped US biofuel giant Poet beginning the search for suitable supplies of the waste organic matter it will need to run the plant.

The company, which is currently the largest producer of ethanol in the world, announced yesterday that it has launched a new division dedicated to managing the development of the new feedstocks that will be required for so-called second-generation biofuels.

Chief executive Jeff Broin said the new Poet Biomass division would be tasked with developing the harvest and transportation logistics required to ensure second-generation biofuel plants – such as Poet's planned 25 million-gallon-a-year Project Liberty facility in Iowa – are supplied with corn cobs, waste wood, and other forms of cellulosic material.

The new division will have a critical role in the success of the plant, according to Scott Weishaar, head of the new biomass division.

"Poet's cellulosic ethanol goals depend on a steady supply of a reliable feedstock: corn cobs," he said. "Poet Biomass is here to make sure farmers have everything they need to play their important role in fueling our nation with both grain-based and cellulosic ethanol."

Supporters of second-generation biofuels based on waste materials argue that they are far more sustainable and deliver deeper cuts in carbon emissions than biofuels made from food crops, which have been accused of indirectly contributing to deforestation and food shortages.

Poet is one of a number of firms investing heavily in the development of second-generation biofuels, and following the successful launch of a 20,000-gallon-a-year pilot facility in South Dakota the company now aims to complete its commercial-scale Project Liberty plant by 2011.

The launch of the new division came on the same day that Poet announced it had successfully trialled anaerobic digestion technology at its South Dakota plant, which will use liquid waste from the ethanol production.

The company said the methane produced by the anaerobic digestor was being flared, but that it aimed to install the system at the Project Liberty plant, where the methane would be captured and used to generate energy for the facility.

"This technology will cut fossil fuels out of our cellulosic ethanol production process and further improve the benefits of grain-based ethanol," said Broin. "Over the long term, Poet would like to eliminate the use of fossil fuels at all our plants through a variety of alternative energy sources."

In related news, a report from the Organization for Economic Cooperation and Development and the United Nations Food and Agriculture Organization warned that while global food prices have largely stabilised as a result of the recession, long-term trends suggest price rises will continue throughout the next decade.

The report warned that the combination of increased demand from developing countries and the fast-expanding biofuels market mean that average crop prices will rise by between 10 and 20 per cent by 2018.