Issues in Contemporary Agriculture: Fuel

Beaker Fuel

Dartmouth college engineering professor Lee R. Lynd hit upon an unlikely source of transportation fuel three decades ago: bacteria from compost heaps. While working on a farm one summer, he became fascinated by how the bacteria could degrade all sorts of plant matter and produce heat. He envisioned creating designer bacteria that could digest fibrous plants and spit out barrels of fuel. But when he tried to convince venture capitalists in the early 1990s to form a company based on the idea, he got nowhere. Gas was cheap and renewable energy, a backwater. One government agency rejected his grant proposal five years in a row. "People said, 'You seem like a bright guy. Why are you in this dead field?'" says Lynd.

These days Lynd's basement lab is bustling with activity as grad students brew plant-eating bacteria in glass fermenters filled with brownish liquid. Another 70 researchers work down the road in Lebanon, N.H. at the biofuels company he founded, Mascoma. It has snagged $100 million in funding from investors including General Motors and Marathon Oil, plus millions more in government grants, and aims to produce ethanol from wood chips in 2009 using genetically engineered bacteria.

"This will be a transformative technology," boasts Lynd, 50. He foresees a vast network of biofuel farms and refineries spread across the country a few decades from now. Lynd is a practicing acolyte of the renewability religion: He drives a Prius, heats his house with wood he cuts himself and generates most of his home's electricity with photovoltaics.

The limitations of corn-derived ethanol have sent biotech researchers scrambling to devise new biofuels from agricultural waste, algae and other sources that are cheaper, more abundant and don't compete with the food supply. Ethanol producers used 23% of our corn crop last year to make 5% of our car fuel supply. Says gene hunter turned biofuel researcher Craig Venter: "We can't have fuels competing with food. It is already a semidisaster, and it is only going to get worse." People in the corn ethanol business disagree.

Scientists like Lynd are trying to convert any type of plant matter, not just sugar, into liquid fuels. With exotic gene-engineering techniques, they are breeding crops that could thrive on marginally arable land and are contemplating farms of bioengineered algae. Using all of a plant might produce four times as much fuel per acre as current biofuels. With better technology, "One percent of the surface of the Earth could produce all the transportation fuel that the world needs," says biochemist Chris R. Somerville, who heads BP's $35 million (annual budget) biofuels research center at UC, Berkeley. Adds University of Massachusetts microbiologist Susan Leschine: "Biomass is the only source of liquid fuels that can replace petroleum."

Venture capitalists poured $637 million into biofuels in 2007, up from almost nothing in 2004, says PricewaterhouseCoopers. Big companies like Chevron and Royal Dutch Shell are investing. Spurring them on is the government, with grants for construction of new biofuel plants, plus big per-gallon subsidies. "There are so many people that this almost feels like the oil land rush of the mid-1800s," says Joe R. Skurla, who is leading a $140 million joint venture between DuPont and Danisco to produce cellulosic ethanol. Predicts MIT chemical engineer Gregory Stephanopoulos: "This will be a $150 billion industry."

Living up to the hype will require some serious feats of industrial engineering. Making ethanol from sugar is a straightforward fermentation. Converting biomass to fuel is not. Cellulose, the fibrous stuff that holds plants together, resists breakdown into simple sugars. Methods for doing so using heat, acid and enzymes are complex and expensive. No U.S. company makes cellulosic fuel on a commercial scale today.

Robert Langreth, www.forbes.com/forbes/2008/1124/058.html, November 24, 2008