First Cellulosic Ethanol Will Come From Yeast

Time to Market is Crucial
Nedalco’s choice to develop yeast based technology is maybe best explained by Mr. Bemer’s emphasis on the importance of short time-to-market when discussing the role of patents. “Patents are obviously very important in this industry, as you try to protect your unique position. That’s why we are very active in the R&D field. But owning several strong patents does not mean that much. Patents expire relatively quickly, which means that it is more important to reduce your time-to-market on the product as a whole. That is why we have been and still are actively seeking strategic partnerships with other parties, because most likely you only have one or two pieces in a jigsaw puzzle.” “Our patents are focussed on the fermentation process. But to produce second generation ethanol, you also need enzymes. That’s why we cooperate with enzyme manufacturers such as Dyadic. You also have to pre-treat your raw materials, with steam or in other ways. That’s why we cooperate with SunOpta, an American/Canadian company that has extensive knowledge on that part. You can never do these sort of things alone. Well chosen strategic partnerships are crucial, as they can help you capitalize your technology more quickly.” Nedalco recently joined forces on several areas with the American company Mascoma and has been cooperating in the Netherlands with the Technical University in Delft for several years. Nedalco and Delft University have developed the fermentation technology in a joint effort. “It is an important part of our R&D program, which we plan on formalizing in a joint venture”, Mr. Bemer commented.

Government Support and Delays in Construction
In Canada, Iogen Corporation is planning to build a large production plant, while Abengoa announced it plans to build a 30 million gallon per year plant in the United States (Kansas). Nedalco first announced that construction on it’s Sas van Gent plant would begin this year, but recently postponed to wait for the outcome of a long expected subsidy program for innovative biofuels. The slow development in supporting legislation in the Netherlands and sometimes the complete absence of such amazes Mr. Bemer. “Whether or not it is the right decision, the Dutch government has chosen not to support first generation biofuels in order to fully focus second generation. That decision has been made, so be it. But in my opinion, if you make such a clear choice, you should substantiate it with strong actions, incentives and support it with appropriate legislation. In stead, the Dutch government has allocated 60 million euros for the coming 5 years to support the domestic development of second generation biofuels. In an international context, this is of course a joke. I just heard that the Japanese government is planning on supporting a second generation initiative with 60 million dollar. Cananda has allocated 500 million dollar for next-generation biofuels. And in the United States, 6 companies have just received 33 to 80 million dollar each, for pilot plants and semi-industrial scale plants. I hope the Dutch government comes to realize that if they want to help develop this important industry, it will need to take more serious action.”