AgendaAgenda

Introduction to Biofuels

Biotechnology can help make Biofuels cheaper

The next generation of biofuels and the US economy

Israeli biotechnology is helping biofuels

Introduction to The World Of Biofuels

• Starch from grains is broken to sugars, sugars are fermented to produce ethanol

• Plant oils are broken to fatty acids to produce biodiesel

• Ethanol (up to 10%) is blended with gasoline to be used in available gasoline engines

• Biodiesel (up to 20%) is blended with diesel to be used in available diesel engines

Ethanol Biodiesel

Blend with Gasoline

Gasoline Engines

BioEthanolBioEthanolBioEthanolBioEthanol BioDieselBioDieselBioDieselBioDiesel

Blend with Diesel

Diesel Engines

FUEL

3* GEL – Gasoline equivalent liters

02468

101214

2001 2002 2003 2004 2005 2006 2010

Bio

die

sel c

on

sum

pti

on

(B

Li.)

Biodiesel consumption (B. Li)

Soybean and Canola

Corn

Ethanol (Gasoline)

-113579

1113151719

2001 2002 2003 2004 2005 2006 2010

Co

nsu

mp

tio

n (

B G

EL

)

Ethanol consumption (US – B. of GEL*)

Biodiesel (Diesel)

The world consumption of Biofuels is growing

EU Target – 5.75% of transport fuel in 2010EU Target – 5.75% of transport fuel in 2010US – 30 % of transport fuels in 2030 US – 30 % of transport fuels in 2030

EU Target – 5.75% of transport fuel in 2010EU Target – 5.75% of transport fuel in 2010US – 30 % of transport fuels in 2030 US – 30 % of transport fuels in 2030

US Ethanol Fuel Consumption is Growing

• In the US ethanol consumption is growing

US Ethanol ProductionUS Ethanol ProductionUS Ethanol ProductionUS Ethanol Production

Can be mixed with gasoline Higher octane than gasoline Non toxic

Pros:

Has 65% energy content of gasoline Mixes with water. Could not be transported

through conventional pipes Competes with food/feed on resources

Cons:

Ethanol refineries are located in the “corn belt”

US Government Decision - Go for More Biofuels

Develop a renewable and DOMESTIC source of biofuels The aim of US government- replacing 100 Billion Gallons (BG) of motor fuel (30% of

the 2004 demand) by 2030

2005: The 30:30 initiative by the Bush Administration2005: The 30:30 initiative by the Bush Administration

US transportation fuel demand is growing fast US transportation fuel demand is growing fast

How much corn ethanol can the US produce?How much corn ethanol can the US produce?How much corn ethanol can the US produce?How much corn ethanol can the US produce?

The conclusion – Corn ethanol is NOT the solution for the future needsThe conclusion – Corn ethanol is NOT the solution for the future needsThe conclusion – Corn ethanol is NOT the solution for the future needsThe conclusion – Corn ethanol is NOT the solution for the future needs

Percentage of Corn used for Ethanol

Corn Ethanol - Major Source For Biofuels?

Using 20% of corn production is replacing 4% of current use of gasoline for transportation

US corn production increase is slow (1% a year)

7

Ethanol an be made from any biomass!

Corn Starch

Cellulose

Ethanol FUEL

FFV- flex fuel cars can Use gasoline or ethanol

Sucrose

All plantsCellulose is the most abounded bio

material in the world!

1BT of biomass is needed to produce 20% of the US gasoline!

Need about 1BT of biomass in 2030

preannial crops36%

corn stover24%

wheat straw8%

grains6%

Fuelwood13%

wood residues+lo

gging residues

8%

pulping liqour5%

To meet the US government 2030 goal, a 1BT of biomass should be produced to make 71 BG of ethanol.

To make 1 BT of biomass, additional cellulose feedstock is needed

Cellulose feedstock could not compete with conventional crops on land and water

Wheat Straw

Forest Residues

Corn Stover

Cellulose

Perennial Crops

Price of Biomass Ethanol Production is Expected to Decline

Market size of $34B for cellulosic ethanol feedstock$156 for GEB

$83 GEB

$46 GEB

To become competitive, costs of cellulosic ethanol production must be sharply reduced

Cellulose Refineries Will Spread All Over The Country .

IOGEN18 MG/Y

switchgrass

Total production of 200M gallons in 2009 Locations are spread all over the US US government funded these refineries with a total of $385M Congress is likely to approve $750M loan guaranties for enlarging production

BlueFire Ethanol19 MG/YWaste wood,

Abengoa11.4 MG/Y

Corn Stover. Wheat Straw

Alico13.9 MG/Y

Waste wood

POET125 MG/Y

Corn stover

Range Fuels9 MG/Y

Waste wood

How can Biotechnology help?

Improved Plantwith .

Standard Plant

Improved Plant: Increased Yield ( )

25% higher yields under normal and stress conditions

Generic function in plants: Applicable to other crops 0

10

20

30

40

50

60

70

80

90

100

Control Candidate 1

Genes

Yie

ld (

mg

)

*

Candidate 1Control

12

Evogene’s Activity in Biodiesel Improving Existing Crops

Higher Yields Soybean - Agreement with Canola – Improved seeds being

developed

Increased oil for Biodiesel Model plant results underway

“Biodiesel Oriented” Crops

Evogene - Ormat 3 year project, $2M initially Develop non edible, non arable

commercial crops for Biodiesel Output: Pre-commercial variety field

trial

The next step : Breeding/GM Biomass Varieties for Marginal Land

Large areas left out from the growing cycle

Drought, a major limitation

Salt tolerance is important when using waste water