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ALTERNATIVE ENERGY / BIOFUEL UPDATE


By Linda F. Jarrett

With rising fuel prices and the push for “green,” those involved in the fields of alternative fuels and bioenergy find themselves working on the cusp of new developments on a daily basis.

Commerce Magazine asked six companies committed to forwarding the green initiative what their latest projects were and how they were progressing.

United Association of Journeymen Apprentices

Local #562 United Association of Journeymen Apprentices has seen their work accelerate as more ethanol plants look to make their homes in the bi-state region.

Pat Kellett, business manager of Plumber and Pipefitters #562, says that they have been busy at the Center Ethanol Company in Sauget, Ill. for the past several months. ÒThe Corrigan Company is working on it right now. They fabricate skid work and piping here, then take it there to install.

"With clean-burning coal as one of the many goals of those involved in finding alternative energy sources, Kellett says they have been busy installing "scrubbers, boilermakers and things of that nature.

"We have a huge half a billion dollar job at the Ameren Plant at Portage Des Sioux," Kellett says. "One of our contractors, Haberberger Mechanical is working on that and it's all about scrubbers for clean burning."

Kellett says he thinks the push for clean burning coal is in its beginning stages as a result of the federal mandates. "Ameren UE is doing their part, and while they're looking at the mandates, they're also looking at design and they're on the forefront of the push for clean burning."

Gateway Terminals

With the opening of Gateway Terminals LLC in Sauget, Ill., at least 500,000 barrels of the product can be stored, then shipped to areas of the country not having the infrastructure to support such a facility.

"We were on schedule for a phased-in start up the first of May," says Chris Allen, vice-president of operations for Eagle Marine Industries, "and should be in full operation with all four tanks by August 1, with the rail infrastructure completed in July or August. We want to get this started properly and get it operating."

The facility which employs 14 people will move ethanol product by barge, rail, and truck from the Midwest facility to all points south, north, east and west.

"We're really a transportation facility," Allen says. "One of the short falls from an infrastructure standpoint in the industry today is that there are not many facilities like ours that is intermodal and that can access water, rail and truck."

Enterprise Rent-A-Car

Andy Taylor, chairman and CEO of Enterprise Rent-A-Car, took steps three years ago to make Enterprise ecologically friendly by gifting $25 million to create the Enterprise Rent-A-Car Institute for Renewable Fuels at the Donald Danforth Plant Science Center. They then devised a program to reduce the environmental impact of its fleet and boost development of alternative fuels.

Components of the program include: Planting 50 million trees in national forests, using FlexFuel cars and trucks that burn on the ethanol/gas mixture, E85; using the worldÕs largest fleet of fuel-efficient vehicles; working to offset carbon dioxide emissions generated by their car rentals.

"Research shows that 20 to 40 percent of American consumers will make a decision to do business with a company believed to be committed to the environment," says Pat Farrell, vice-president of corporate responsibility.

Enterprise also backs research for alternative fuels such as switch grass, corn stalks and other biomass materials by partnering with the Danforth Center to advance research into the next generation of fuels that could replace fossil fuels.

Washington University

Washington University in St. Louis has three groups that are working to forward the development of alternative energy, says Dr. Pratim Biswas, Stifel and Quinette Jens Professor of Environmental Engineering and chair, Department of Energy, Environmental & Chemical Engineering, School of Engineering.

These are I-Care (International center for Advanced Renewable Energy and Sustainability), MAGEEP (McDonnell Academy Global Energy and Environment Partnership), and EECE (The department of Energy Environmental and Chemical Engineering).

These three companies are working in three areas:

¥ Using nanotechnology in advanced coal systems. Biswas says that with two major coal companies headquartered in St. Louis, "and with much of our electricity being produced from coal, we have to insure that coal is used in an environmentally benign manner."

¥ Focusing on bioenergy by looking at carbon neutral technologies. "We are using plant-based sources, reused biofuels and algal systems which trap carbon dioxide and has also produced products of value such as biodiesel," he says.

¥ Developing systems to convert sunlight directly into electricity in a low cost manner, "and also to convert solar energy into chemicals such as hydrogen which will be used as a fuel," Biswas says.

"All of these three entities were formed in the last two years," Biswas says. "But they've been working on these plans individually for many years at Washington University.

Center for Evergreen Energy (CE2)

In 2006, the RCGA and the Danforth Center commissioned bioenergy expert Dr. Jim McLaren, president of StrathKirn Co. to recommend some processes for St. Louis getting on the biofuels map. As a result, the Center for Evergreen Energy became the first step in making St. Louis a regional hub for biofuels technology.

"I still think there's good potential for us to be the hub," McLaren says. "There's a great deal of change in terms of research and exploration of opportunities in biofuels. The actual biofuels production is increasing, but we still rely almost entirely on corn for the ethanol that's produced, and that's the only large-scale commercial biofuels we have."

Ethanol is cheaper than wholesale gasoline, he says. "So that's a stable platform that's growing and continuing to expand. On the edges of that, we continue to do research and development in areas like biomass, algae and in the use of coal for liquid fuels."

A "key opportunity for the center," he says, was to provide information on what is happening in each of these areas and provide data on how it could help the consumer.

"The fashion today seems to be anti-ethanol and anti-corn," he says. "And that's not right. We need to look at the data and properly inform people. The cost of gas has had more impact on the price of food than it has had on corn. It would be great to get that out to people."

Abengoa Bioenergy

This international firm is doubling the footprint of its office in Chesterfield Towne Center in order to expand its research and development capabilities.

"We have a huge commitment to research and development of new technology for cellulose," says Chris Standlee, executive vice president. "We've been very fortunate to have partnered with several major universities and other technology leaders.

Based upon that, we have received a couple of grants from the U.S. Department of Energy, one of which will help us fund the construction of one of the first commercial scale cellulose facilities in the United States.

Standlee says that the $76 million grant will be used to build a plant in Hugoton, Kan., slated for completion in 2010.

"This plant will produce 105 million gallons a year of ethanol, 15 million gallons from plant material like wheat straw or corn stover," he says. "This will be the first commercial production facility in the United States to produce renewable liquid fuel from earth's most abundant organic feedstock sourceÑplant fiber, or biomass as it is scientifically classified," he says.

"Corn ethanol has gotten a lot of undeserved negative press," Standlee says. "Ethanol is a very small component of the price of corn. The primary reason for the increase in food is that we have $112 per barrel oil, and it takes a lot of energy to package, market and deliver food." n

InvestMidwest Offers New Alternative Energy Track

By Christine Imbs

 

Alternative energy was the new buzz word at the ninth annual InvestMidwest Venture Capital Forum held in St. Louis this past winter.

Executive Director Chris Walsh says more and more investors are funding alternative energy companies. Providing these companies with their own track in the forum only seemed logical.

"With the increase in venture investing in this industry and the increase in establishing companies in energy related technology in the Midwest, we wanted to make certain we included alternative energy companies in the InvestMidwest program.

Walsh says adding any new track to the conference is a building process. Through research and networking, InvestMidwest established contacts in the alternative energy/cleantech industry and then engaged these contacts in seeking investors and presenting companies to participate in the conference.

"Although some do cross over, for new tracks we generally have to attract a new group of investors interested or willing to invest in this particular kind of company," Walsh adds. "So far in this case it's turned out well. The alternative energy presentation room was full all day and both the investors and presenters seemed very pleased."

Altogether 12 alternative energy companies from across the Midwest participated in the new track including four from the St. Louis area—Akermin Inc., a leading developer of stabilized enzyme solutions for producing power, food, fuels, and specialty chemical intermediates; Gridlogix, helping businesses use wired and wireless networks to securely monitor and manage remote assets and equipment in real-time, over the Internet; TeraVista Systems, offering consulting, technology solutions and managed services to organizations in the environmental, carbon and energy verticals; and Waste Remedies, a waste consulting firm helping clients reduce waste costs through aggregating their buying power, identifying and eliminating logistical inefficiencies and through diverting materials from the waste stream to recycling.

As with the companies in the other two tracks, the alternative energy companies were selected because they have the best chance of being funded based on their potential for high growth.

"The conference is designed to showcase high growth companies to the venture investors. Venture capital investors are looking for opportunities that may be high risk, but have the potential for high reward. "For example, one of the criteria for a company to be selected for the conference is that they project $20 million in revenue within five years. The companies go through a pretty stringent selection process."

Much like the companies it showcases, InvestMidwest has experienced high growth in a very short time. Developed by the St. Louis RCGA and Missouri Venture Forum, the first conference was held with seed money from the Danforth Foundation in St. Louis and the Ewing Marion Kauffman Foundation in Kansas City. Altogether 20 St. Louis and Kansas City companies participated. In contrast, the February 2008 conference showcased 42 high-growth companies from 14 states across the Midwest in life sciences, technology and alternative energy/clean technology. Now a major event, InvestMidwest has helped generate over $300 million in investments. And it looks like the alternative energy track will make a comeback.

In 2009, the Tenth Annual InvestMidwest will be held in Kansas City. "Based on our positive results at the 2008 event we will again showcase alternative energy companies at the conference next year," Walsh says. "The new alternative energy track has been a strong addition to InvestMidwest."

 

 

 


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