An examination of the birth of, and connection between, emerging technologies in Advanced Biofuels and Algae taking root in the Big Emerging Markets, starting with Brazil. From algae, alternative fuels, biofuels, and energy infrastructure intelligence firm Emerging Markets Online. For more info http://www.emerging-markets.com

1. heading biofuels
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A new wave of investment will transform sugars and cellulosic carbohydrates into
hydrocarbon fuels
Brazil: The Bossa
Nova of biofuels
S
hell, BP Bunge, LS9,
, standards, Brazil’s sugarcane ventures (Shell-Cosan JV at outputs, including renewable
Dow and Amyris are ethanol is environmentally, $12 billion, BP’s $8 billion diesel, aviation fuel, bio-
collectively investing economically, and politically through 2015) heralding this crude oil, biochemicals and
more than $20 billion achievable today. Paradoxically, new trend of emerging markets biopolymers with significant
(€16 billion) into advanced, using the same sustainability technology-feedstock ventures. GHG reductions and carbon
sustainable biofuels in Brazil. criteria, cellulosic biofuels in emissions compared to
This new relationship between the US and the EU are not US and the EU dance petrochemical hydrocarbons.
Brazilian, US and EU public yet economically achievable with Brazil
and private industries is kicking in substantial volumes. Integrated biorefineries
off a new era in international As the US and EU Another wave of next- in sight
biofuels investment. governments continue to generation renewable drop-in
debate sustainability criteria, fuel companies Amyris, LS9, The future benefits of
The next wave the Obama’s US EPA Solazyme and Dupont are also these integrated cellulosic
administration has already investing in and partnering biorefineries, especially
Bossa Nova – meaning the new scaled back 2010 cellulosic with Brazil’s sugarcane in Brazil, will demonstrate
wave, mixing oil traditions with biofuels targets during an fermentation biorefineries. leadership, proof of concept,
new trends – is an evolutionary art election year, as ethanol Why? Because their emerging and much-needed economic
form. In the case of the agri-fuels subsidies and tax credit technologies from cellulosic certainty that is challenged
business, Brazil’s new wave of benefits are challenged by the microbes (yeast, algae, fungus by US and EU cellulosic
advanced, sustainable biofuels imminent arrival of the E10 and bacteria) can use the biofuels economics, mandates
investments represents a heady blend wall in the US. This same ethanol fermentation and markets today. This will
mixture of sugars and cellulosic uncertain policy environment facilities in the US corn belt benefit the other big emerging
carbohydrates into ethanol and in the US and EU has private and in Brazil’s sugarcane belt markets of China and India
hydrocarbon fuels, renewable investors looking to greener to produce bio-crude, green as the dance progresses.
diesel, biochemicals, biobutanol, pastures, and entering into a diesel, petrol and biojet. Long before the Olympics
biopolymers, and advanced, low- new dance mixing emerging The simplicity is astounding. arrive in Rio in 2017, Brazil’s
carbon drop-in replacement fuels. technologies and sustainable Here’s the big idea. Take an leadership in sustainable
For more than 30 years, Brazil feedstocks with Brazil. existing, stranded ethanol biofuels, coupled with
has lead the world in sustainable factory or conglomerate. Buy it advanced technologies from
biofuels production. And at the Investment trends for a substantial discount. Start US and EU industry partners,
dawn of a new decade, Brazil with cheap sugar. Drop in a new will illuminate evolutionary
is emerging as a world leader in US/EU/UN sustainability Amyris, LS9, Solazyme, Gevo, pathways in achieving
advanced, sustainable biofuels criteria have ironically lead to Solazyme or Cobalt microbe/ successfully integrated,
investments, along with new positive investment outcomes bug in the same fermentation diversified, biorefineries. In
technologies from private sector in Brazil during a challenging vat and what do you get? An particular, India, the world’s
partners in the US and EU. In economic recession world- integrated biorefinery that can second largest sugar producer,
2010, Brazil’s progress in private wide. Sustainable sugars use cheap, sustainable sugars and the world’s most populated
sector biofuels investment is lead the charge. During this to produce renewable diesel, nation, is most likely to benefit
charging ahead, while EU and time, a consolidation among aviation fuel, and biobutanol from this progress along with
US government policies are Brazil’s sugarcane production – fuels that are compatible with China and other key emerging
effectively reducing ethanol facilities and conglomerates existing petroleum pipelines, market nations interested in
biofuels targets due to political lead to favourable terms storage, petrol stations, and attracting increased investment
uncertainty and slower growth for first generation sugar vehicle engines today. and emerging technologies
related to cellulosic biofuel cane ethanol acquisitions, In the near future, for sustainable growth. ●
feedstock production economics. and attractive conditions for these fermentation-based
next-generation, integrated biorefineries will be able to
For more information:
Sustainable policies cellulosic biorefineries. These convert multiple inputs from This article was written by Will Thurmond,
matter reasons explain the new wave cellulosic sugars- bagasse, CEO of market research firm Emerging
of investments in Brazil, where switchgrass, wood chips, Markets Online, and author of Algae 2020
(2009), and Advanced Biofuels 2020
Based on US, EU and UN Shell and BP have entered municipal solid waste, and (summer 2010) www.emerging-markets.
sustainability government policy into to multi-billion dollar glycerin – into a diverse set of com info@emerging-markets.com
biofuels international june 2010 47