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February 1, 2002

Novozymes reaches first milestone in bioethanol project

The US Department of Energy (DOE) has approved the second year of funding for Novozymes’ three-year subcontract to develop more cost-efficient enzymes for ethanol production, based on the achievement of the first technical milestone.

In January 2001, the DOE granted funds of up to USD 14.8 million in a research subcontract with Novozymes Biotech, Inc., the US-based research subsidiary of Novozymes A/S.

The research project is aimed at reducing the cost of cellulase enzymes used in converting plant waste material (biomass) into fermentable sugars such as glucose which can then be converted to ethanol by fermentation.

The DOE subcontract, which is administered by the National Renewable Energy Laboratory, has a goal of reducing the cost of enzymes for bioethanol production 10-fold. In the first year, Novozymes has achieved a 2.3-fold reduction in enzyme cost compared to commercially available cellulase products and is thus on track in the research project.

One of the applications of bioethanol is replacement of the hazardous gasoline additive MTBE (methyl tertiary butyl ether). Several states in the USA either have phased out or are planning to phase out the use of MTBE as oxygenate in gasoline for the transportation sector.

Glenn E. Nedwin, Ph.D, president of Novozymes Biotech, Inc.: In a few years time, it may be possible that sawdust, wood chips, straw, corn stalks and other plant residues will be used to produce gasoline with a sustainable octane count, to the great benefit of the environment.

The DOE’s National Biofuels Program seeks to cost-effectively produce ethanol and other fuels from biomass resources such as agricultural and forestry residues, etc. This effort is made in close cooperation with industry and carried out primarily by the National Renewable Energy Laboratory in Golden, Colorado, USA, a national laboratory of the DOE.

ST. PAUL: Brewery won't get city help

BY MURALI BALAJI Pioneer Press

The St. Paul City Council will not hear a request to back a $2 million bank loan to help the Minnesota Brewing Co., a move that company officials say jeopardizes the future of the struggling West Seventh Street firm.
"Without the city's guarantee . . . the brewery will close" within months, company spokeswoman Jodi Ellwood said Wednesday. "This is an immediate need," she said, echoing statements made earlier by Bruce Hendry, chairman of the brewery's parent firm, MBC Holding Co., and Jack Lee, CEO of the brewery and the controversial ethanol plant that was built on the site to improve the brewery's financial condition.

Ellwood said the company still will try to persuade city officials to take up the issue next week. However, that seems unlikely, given the enormous public sentiment against the brewery and the ethanol plant, which, combined, employ more than 220 people.

Hendry has said that the Gopher State Ethanol plant -- which showed a profit of $4 million through November -- would remain open even if the brewery closes.

Council Member Chris Coleman, however, believes both the ethanol plant and brewery are inextricably linked and would find a way to consolidate operations to preserve Minnesota Brewing Co., which produces Pig's Eye and Grain Belt beer.

Coleman, who represents the West Seventh neighborhood, on Wednesday declined to introduce the loan resolution when the council meets next week, noting that officials have yet to comply with all the terms of a lawsuit settlement agreement reached last month among the city and the brewery, the ethanol plant and a jointly operated carbon dioxide facility.

He told the Pioneer Press he is committed to keeping open both the brewery and the ethanol plant, which has been the source of widespread citizen complaints since it opened in the spring of 2000. But, he said, the facilities first have to resolve long-standing odor and noise issues before any city assistance could be made.
 

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