GoodFuels

Bug Genes Hold Cellulosic Ethanol Promise

The ability of some creepy, pesky insects to digest leaves and wood may hold a key to advancing the production of cellulosic ethanol from biomass.

Researchers at the University of Florida have been studying termite guts to figure out what genetic sequencing allows those insects to churn wood into fuel. That ability involves a mixture of enzymes from symbiotic bacteria and other single-celled organisms living in termites’ guts, as well as enzymes from the termites themselves, which could ultimately improve the production of cellulosic ethanol. Once the genetic sequence that produces the enzymes can be isolated, it could be transferred into genetically modified fungi or bacteria, or possibly into other insects, such as caterpillars, to produce the enzymes on an industrial scale.

Meanwhile, scientists at the University of Wisconsin-Madison and the and Great Lakes Bioenergy Research Center (GLBRC) have been doing similar work with leaf cutter ants. In this case, they are looking at the spongy fungus gardens that the insects grow themselves. Some of these ant communities have a picky appetite and only eat certain types of plant leaves; others are omnivores and digest the cellulose in a wide variety of leaves. GLBRC is studying the fungi and bacteria from these communities to identify microbial enzymes that can help generate fuels from the cellulose, or non-edible, part of the leaf.

“Insects have played an important role in how this planet functions for millions of years,” says University of Flrodia entomologist Mike Scharf. “There are still many ways we can learn to benefit from Earth’s six-legged inhabitants.”

Whatever works.

CNN Covers Nebraska Ethanol Industry

CNN “State of the Union” host and chief national correspondent John King took a refreshingly in-depth and positive look at the state of the ethanol industry in Nebraska over the weekend.

According to CNN, King “goes outside the Beltway to report on issues affecting communities across the country” and his report about ethanol in the Cornhusker State took him from the combine on a farm in Fort Calhoun, to the Advanced BioEnergy ethanol plant in Fairmont, where he stood on a mound of dried distillers grains with ABE Plant Manager Grant Johanson.

The headline for the story was especially gratifying - “Ethanol keeps Nebraska running in tough financial times.” Here’s a nice quote from the article:

In Washington, ethanol is a source of controversy, with many lawmakers arguing it is an industry unfairly propped up by generous federal subsidies. To Nebraska, however, it is the direct source of roughly 1,000 jobs at ethanol production plants across the state, many of them located in small towns where those 40 to 50 plant jobs are the local gold standard.

Pretty positive piece overall for the corn ethanol industry. Read the whole article here.

Early Christmas for Ethanol Producers

The Wall Street Journal is calling it “Christmas in October for Ethanol” and the forecast does seem to indicate a cheery holiday season for the industry.

Ethanol producers have been seeing some pretty good profit margins lately, especially compared to last year at this time. Last week, ethanol processing margins nearly doubled to a dollar a bushel. Since early July, ethanol futures on the Chicago Board of Trade have increased more than 20%, while corn futures have only gone up about five percent.

Commodity analyst Joe Victor of Allendale, Inc says that profitability has returned to the ethanol industry. “We know that over the past three months that there is profit returning, above and beyond all costs. Ethanol companies are turning a profit over the past three months.”

Proof of that is more ethanol plants returning to production. Ethanol Producer Magazine reports that the number of plants idled has decreased from 36 in the spring to 24 this fall. The publication’s latest plant map shows total U.S. ethanol production capacity is nearly 12 billion gallons.

This is all great news, but what producers are really hoping for is a nice early Christmas present from the Environmental Protection Agency, which is due to rule on the industry request allowing gasoline blends to contain up to 15 percent ethanol by December 1. That would make for a very Merry Christmas in Ethanol Land.