<\/p>\n
The High Priests of the Advanced Bioeconomy look upon the advocates of methane roughly the same way that Pope Leo X looked upon Martin Luther. It\u2019s heresy, they say.<\/p>\n
With the exception of the happy but limited tonnes of biogas coming from digesters and landfill, it\u2019s not renewable, goeth the rap against methane. It\u2019s a handy substitute for coal, theorizes the Obama Administration, which has found that cheap and abundant methane is a perfectly good way to lower carbon intensity in the power sector.<\/p>\n
So as a society we\u2019re at sixes and sevens over the powerful promise of methane, like left-leaning Democrats who grudgingly line up for Hillary Clinton because she\u2019s better for them than Donald Trump, even though they might secretly long for Elizabeth Warren.<\/p>\n
The pivot to methane in the advanced bioeconomy has three points of origin:<\/p>\n
1. The stubborn difficulties that plague second-generation biofuels, from economics and logistics of new-fangled feedstock to the elongated shakedown cruises taken by technologies that are supposed to unlock the value therein.<\/p>\n
2. The persistent de-coupling of US natural gas prices from oil prices \u2014 which have remained out of sync even with the crash of oil.<\/p>\n
3. The arrival of new biotechnologies that have uncovered a means of using methane for applications more economically interesting than combustion for power.<\/p>\n
A little science is in order on the third item, there. Methane conversion is the runaway train of science \u2014 using many pathways of traditional chemistry, the activation energy of the first step is greater than the rest, so that, once you\u2019ve put enough energy into methane to get some kind of conversion going, the rest of the steps take place in blinding succession, as unstoppable as a collapsing set of dominoes until all that is left is carbon dioxide and a whole bunch of released energy. Hence, combustion.<\/p>\n
The big exception has been steam reformation of methane to produce syngas (a combination of carbon monoxide and hydrogen), and the water-gas shift reaction can be used to convert syngas, firstly to pure hydrogen and lastly to ammonia by reacting hydrogen with nitrogen-filled air. Another exception is to catalytically convert methane to methanol, but the process efficiencies are low and the energy inputs are high.<\/p>\n
So, what\u2019s to be done with methane except to burn it, or make ammonia?<\/p>\n
In recent years, scientists at Calysta and Intrexon have independently pioneered techniques for using methane as a pathway to single-celled protein or other chemicals (in the case of Calysta), or butanediol or isobutanol (in the case of Intrexon).<\/p>\n
Fascinating in both cases because Intrexon SVP Bob Walsh and Calysta CEO Alan Shaw both tip these as first applications, that they\u2019re building platforms not one-off technologies, and there\u2019s going to be much more to come.<\/p>\n
Now, fans of Alan Shaw and Bob Walsh will be the first to recognize a certain difference in personal style between the two. The former comes to the field with the baying intensity of horses, horns and hounds chasing a fox, while the latter is the quiet stalker high in the Highlands quietly cornering a 12 point buck.<\/p>\n
But they appear both to have come back from the hunt replete with trophies.<\/p>\n
More about Intrexon<\/p>\n
For now, think methane to isobutanol, via an enhance microbial activity that\u2019s been designed and plugged into bacteria. Feed the little critters and they send back isobutanol, at far cheaper rates than any other known method, says Intrexon.<\/p>\n
Why isobutanol, we asked Walsh. \u201cIt\u2019s a big market,\u201d he tells us. \u201cIt\u2019s well organized, we know isobutanol works as a fuel blendstock, and the economics are great. Why not do it?\u201d Publicly, Intrexon has revealed that it can achieve a 50% margin making isobutanol at scale using its process. And, worry about low oil prices? Well, the lower oil goes, the lower gas goes \u2014 so the main cost, the methane feedstock is synchronized with market prices.<\/p>\n
In the US, the economics of isobutanol get even better, when the impacts of low-carbon incentives are taken into account. Isobutanol benefits under the Renewable Fuel Standard, and also under the California Low Carbon Fuel Standard.<\/p>\n
Why isobutanol as a fuel molecule?<\/p>\n
And we\u2019ve pointed out that isobutanol can be blended at up to 16 percent rates, compared to 10 percent for ethanol, in cars made between 1995 and 2011. For more recent models, while ethanol can go up to 15 percent, isobutanol could go as high as 24 percent although the EPA has yet to issue a waiver for those model years. And, each isobutanol gallon counts as 1.3 gallons under the RFS because of its higher energy density. Put all that together? If you can distribute 14 billion gallons of ethanol before reaching E10 saturation, the number goes up to 29 billion (ethanol equivalent gallons) with Bu16.<\/p>\n
Intrexon\u2019s progress<\/p>\n
Three weeks ago,\u00a0 Intrexon announced the pilot plant for its proprietary gas-to-liquids bioconversion platform is operational<\/a>.\u00a0 The plant is located in South San Francisco.<\/p>\n Last August, Intrexon announced that Intrexon Energy Partners<\/a> (IEP), and Dominion Energy, a subsidiary of Dominion Resources, have entered into an agreement to explore the potential for commercial-scale biological conversion of natural gas to isobutanol, a drop-in fuel with numerous advantages over other clean burning gasoline blendstocks. Under the terms of the agreement, IEP will be required to meet specific development milestones prior to initiation of certain commercialization activities, which are subject to board approval by both parties. Dominion will be the exclusive partner to construct, own, operate, and maintain the production facilities in the Marcellus and Utica Shale Basins located in eastern North America via potential long-term services agreements with IEP.\u00a0 Within this geographic region, the collaboration plans to build natural gas bioconversion facilities leading to the creation of job opportunities and generation of local and state tax revenue.<\/p>\n Other applications?<\/p>\n Looking at higher-carbon compounds, there\u2019s farnesene, which Intrexon has developed a process for. Nothing yet for C3s, but clearly a set of C4 molecules with isobutanol and BDO.<\/p>\n And, there may be other partners announced for the Eagle Ford, Bakken and Niobrara formations \u2014 although the dry gas of the Marcellus (that is, mostly methane, not so much ethane or propane) is well-suited to Intrexon\u2019s bug.<\/p>\n How the deals work<\/p>\n Take Intrexon\u2019s December announcement regarding 1,4-butanediol (BDO).<\/p>\n At the end of the year, Intrexon formed Intrexon Energy Partners II (IEP II), a joint venture with a select group of unnamed \u201cexternal investors\u201d, to produce 1,4-butanediol (BDO), a key chemical intermediate with a global market value exceeding $5 billion that is used to manufacture spandex, polyurethane, plastics, as well as polyester.<\/p>\n Through an Exclusive Channel Collaboration (ECC) agreement, Intrexon will receive a technology access fee of $18 million.\u00a0 IEP II will be responsible for all costs related to the development, manufacture, approval and commercialization of the product.\u00a0 Intrexon owns a 50% interest in the new venture.<\/p>\n Next steps?<\/p>\n Molecules a-plenty, we suspect, for those who engage with Intrexon. As the company\u2019s 2014 Patent app, details:<\/p>\n [0033] In certain other embodiments, the invention is directed to a method for producing fatty alcohols from a methane substrate\u2026[0034] In certain other embodiments, the invention is directed to a method for producing a fatty alcohol\u2026[0035] In another embodiment, the invention is directed to a method for producing a fatty acid ester\u2026[0037] In certain other embodiments, the invention is directed to a method for producing 2,3-butanediol.<\/em><\/p>\n So, you get the idea. A rich array of targets under development at Intrexon.<\/p>\n Over at Calysta<\/p>\n The focus has been on the foundational market \u2014 single-cell protein.<\/p>\n Here\u2019s the problem Calysta aims to solve: We\u2019re running out of affordable conventional fishmeal, which is basically made for big fish by grinding up little fish. Our vast global human appetite for big fish, from our lofty position at the top of the food chain, is causing stress on the \u201clittle fish\u201d population. And, unless we all want to adopt a vegetarian lifestyle, with the human population heading for 9 billion, we better figure out a better way to bulk-up the bigger fish than simply industrializing the capture of little fish.<\/p>\n Leaving aside \u201cfeed the world\u201d imperatives, consider the cost implications. In recent years, while the soybean meal (fed to cattle) price has been relatively flat, the price of fishmeal has been skyrocketing, reaching $1500 per ton last year. More than twice the price of fuel, pound for pound.<\/p>\n As Cellana CEO Martin Sabarsky says, \u201cwe need to cut out the middle fish\u201d \u2014 in Cellana\u2019s case, by feeding algae directly to big fish by transforming algae into fish feed.<\/p>\n Last week, we reported that Calysta\u2019s FeedKind protein<\/a> \u201cnearly eliminates the need for water and agricultural land for production of fish feed for the aquaculture industry\u201d, according to a study from the Carbon Trust. The report provides a detailed analysis of FeedKind protein taking into account a variety of environmental sustainability criteria, and concludes that FeedKind protein offers significant advantages over current fish feed ingredients. FeedKind protein was shown to use 77\u00ad98% less water than alternative ingredients including soy and wheat proteins. It also requires almost no agricultural land to produce, freeing that land for other food crops. One commercial-scale FeedKind protein plant, if used to replace soy products for fish feed, would free up enough land to feed as many as 250,000 people.<\/p>\n But Calysta has a different path. They\u2019re using methane, which is abundant (check your local rig count for confirmation that we are struggling to find markets for all of it). Some methane is renewable, a lot of it is fossil-based \u2014 but activists are generally in less of a twist about extracting fossil fuels to make food than just about any other use case. And, studies have (so far) confirmed the nutritional value of the feed, based on criteria such as growth performance and animal health.<\/p>\n Now, it\u2019s not exactly a no-brainer. Actually, the effort to make SCP from methane is the technology that sunk the Soviet Union (which you can read more about here<\/a>), but Calysta has an impressive array of new IP around gas fermentation.<\/p>\n Scaling it up<\/p>\n Scale-up of something achievable in the lab into something at scale?\u00a0That\u2019s\u00a0a daunting enterprise \u2014 but a good idea to advance the effort in the northern UK in Teesside, which is home to an entire flock of advanced chemical and industrial talent and conveniently close to the Norwegian salmon industry. If someone needs to pop over to raise some capital amongst those who know the fishmeal crisis all too well.<\/p>\n As CEO Alan Shaw put it, \u201cgas fermentation is real,\u201d citing a conditional award of up to \u00a32.8 million Exceptional Regional Growth Fund (eRGF) grant subject to due diligence from the UK Government. This will contribute to a \u00a330 million first phase investment over ten years by Calysta to develop a Market Introduction Facility to undertake R&D critical to commercialize FeedKind and develop the technology for other applications. At the Centre for Process Innovation in the Teesside area, Calysta expects to develop its production process.<\/p>\n But wait, there\u2019s more from Calysta<\/p>\n Can they make propylene, one of the world\u2019s major platform chemicals. Yes they can, as this patent app reveals<\/a>.<\/p>\n What about plastics? Well, consider the activity with NatureWorks, detailed here. Last year, in support of NatureWorks and Calysta, the US DOE\u2019s Bioenergy Technologies Office announced a grant of up to $2.5 million in support of an ongoing program that aims to sequester and use methane, a potent greenhouse gas, as a feedstock for the NatureWorks\u2019 Ingeo biopolymers and intermediates.<\/p>\n The grant supports an ongoing multi-year joint development program between NatureWorks and Calysta, with the specific goal of transforming, via a fermentation process, renewable biomethane into lactic acid, the building block for Ingeo. Ingeo naturally advanced bioplastics and intermediates are used worldwide in a host of consumer and industrial products.<\/p>\n Isoprene? Try this patent app for size<\/a>.<\/p>\n Longer-chain fatty alcohols or propanol? Here\u2019s the skinny on that.<\/a><\/p>\n You asked about phospholipids, terpenes and PHA? That\u2019s here<\/a>.<\/p>\n Fatty acid derivatives? Try this one<\/a>.<\/p>\nCalysta\u2019s next steps<\/h4>\n