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Hydrogen, ethanol and even compressed air all have the shrink-wrapped sheen of the bright, green future. But gasoline? At $1 per gallon?

Researchers at UMass Amherst recently published a new method of refining hydrocarbons from cellulose, paving the way to turn wood scraps into gasoline, diesel fuel, Tupperware—anything, essentially, that’s normally refined from petroleum. Many scientists have been working on ways to turn everything from corn stalks to tires into ethanol, sidestepping some of the problems inherent to making fuel from corn and other food products. But ethanol has a number of liabilities, regardless of the source. For instance, it requires automotive engines to be modified and contains less energy than gasoline, driving down fuel economy.

Turning cellulose into gasoline is tricky. Unlike raw crude, which is made up mostly of hydrocarbons to begin with, plant material contains a great deal of oxygen woven into its molecular structure. “Crude oil looks more similar to gasoline than biomass does,” says George Huber, lead author of the new study. “So the challenge is how do you efficiently remove the oxygen and make these compounds that look like gasoline or diesel fuel? And how do you do it in the fewest number of steps and in the most economical way?”

Using a catalyst commonly employed in the petroleum industry, Huber and his colleagues heated small amounts of cellulose very quickly for a matter of seconds before cooling it, producing a high-octane liquid similar to gasoline. “The temperature window is very critical,” Huber says. If you heat too slowly, you produce mainly coke—elemental carbon residue. If you heat too fast, you make mainly vapors. The sweet spot, about 1000 degrees per second, transfers roughly half the cellulose’s energy into hydrocarbons. “If we can get 100 percent yield, we estimate the cost to be about a dollar per gallon,” Huber says. “Right now we’re at 50 percent. Can we get 100 percent? I don’t know. Hopefully we’ll bump those numbers up.”

Huber and his colleagues aren’t the first to derive hydrocarbons from renewable sources. Virent Energy Systems, for example, just signed a deal with Shell to produce gasoline from plant sugars and expects to open a pilot facility in the next two years. UOP is working on a project to produce jet fuel for U.S. and NATO fighters from algal and vegetable oils. But Huber’s work stands out as likely the first direct conversion from cellulose, opening up as potential fuel sources virtually anything that grows. Commercialization of the technology may take another five to 10 years, the researchers predict.

Developments in so-called “green hydrocarbons” arrive as ethanol continues to come under attack as expensive, inefficient and a contributor to rising food prices around the world. (More than a billion bushels of corn are diverted to ethanol production each year.) “There’s certainly a lot of historical inertia for ethanol. It’s gotten us off to a great start, but I can’t see the country transitioning to flex-fuel,” says John Regalbuto, director of the Catalysis and Biocatalysis Program at the National Science Foundation. “I almost think, long term, that we will go to plug-in hybrids. But we’re still going to need diesel and jet fuel—you can’t run trains or fly planes with ethanol or hydrogen.”

“We already have the infrastructure in place to distribute liquid fuels,” Huber says. “We’re using them to power transportation vehicles today, and I think that’s what we’ll be using in 10 years and in 50 years. And if you want a sustainable liquid transportation fuel, biomass is the only way to go.”

The world produces abundant waste biomass which humans could be using as fuel, instead of coal, oil, and gas. Forward-thinking engineers and entrepreneurs are beginning to act on this promise, without waiting for corrupt bureaucrats and politicians to give them the go-ahead.

Renegy Holdings, Inc. (Renegy) (Nasdaq:RNGY) announced today that it has successfully synchronized its 24 megawatt (MW) biomass power plant located in Snowflake, Arizona, to the electric utility grid. As of April 24, Renegy has been generating electricity from its Snowflake facility and is currently selling test power in advance of commencing full commercial operations. from Al Fin Energy Blog

BioCoal™ Fuel
Made from biomass, in pellet form, that has all the
positive qualities required to finally help solve our
energy and pollution problems. BioCoal™ Fuel is
a clean burning product that was once wood, but
processed in a unique way that removes virtually
all the water and polluting volatile organic
compounds before combustion. The wood is
processed in a proprietary manner that changes
the chemistry and structure of the wood into a
friable material that has a high carbon content
that can be used with coal or to replace coal.
Every ton of carbon in BioCoal™ Fuel used will
keep 3.6 tons of carbon dioxide from fossil fuel
out of our air. BioCoal™ Fuel is resistant to water
absorption and can be stored indefinitely without
decay.

A small, economically viable pellet mill produces 25,000 – 35,000 tons per year. If the local market expanded from 1 percent to 7 percent (8,400 households), the small mill capacity would be matched. Market expansion will take place as the cost of conventional energy increases, but will be slow in the near term without a strategy. If steps are not initiated now to encourage and capture a growing market, it will be filled by a pellet plant from outside the region.

Here are some safe bets:

Non-renewable fuel prices will remain volatile with increasing spikes due to political and natural disruptions.

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Renewable fuel sources like wood, solar, geothermal will grow in use and affordability.

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There will be a market shake-out in the pellet industry over the next three years due to a lag between production

• capacity and market.Given current and projected demographics within the Four Corners region there is room for one pellet mill of moderate size (25,000 to 35,000 tons annually). We recommend a phased strategy beginning in 2008 with strategic commercial and residential market development. Construction of the plant will be triggered by capture of at least 5 percent of the residential market. The estimated investment for all phases is between $7 million and $10 million. Investment in this proposal will place the Ute Mountain Ute Tribe in a position to capitalize on the mill opportunity and other related business ventures as well as benefit the residents of Indian Country.

Strategic Steps:

Build bag and bulk pellet delivery routes in up to 300 mile loops linking together towns in a 100 mile radius

• thus servicing homes, hospitals, schools, offices and other buildings in Indian Country and high elevation communities.Make all public buildings “Native Wood Ready” in the design phase and invest in pellet boiler retrofits for those

• in the “green zones” on the map.Initiate a subsidized pellet stove installation program for eligible families within the “green zone.” The program

• can be modeled after the EPA’s Great American Woodstove Changeout program. See this site for information on EPA’s program http://epa.gov/woodstoves/how-to-guide.html Decent stoves installed cost approximately $2500. The program could offer a $1000 subsidy and $1500 zero interest loan. The program achieves immediate benefits regarding heating bills, air quality, and market build-up. Utilize Forest Energy Corp as the bag and bulk pellet supplier while markets are stabilizing. Either buy, store,

• and disperse pellets from a centralized location on tribal land or arrange for delivery by Forest Energy Corp. Propane carriers can adapt to carry pellets as well. If silos are added to the installation program, delivery costs can be cut in half and thus consumer prices.

Forest Energy Wood Pellets are made from 100% recycled wood and biomass residue. In our manufacturing process, the wood residue (raw material) is screened, dried to a specific moisture level, and ground to a uniform size. Then, a finely balanced blend of sawdust is conveyed into the pellet mills where it is compressed and formed into a very dense and consistent wood pellet. The ending result is a highly efficient source of thermal energy for consumers.

Energex Pellet Fuel, Inc. operates the largest wood pellet plant in North America with an annual capacity of over 120,000 tons. Using a state-of-the-art process control system, automatic packaging facility, and environmental controls, the Energex plant has the capacity to bag 500 tons per day and hold thousands of tons in inventory to service peak demand periods.

Energex people are dedicated to getting product out on time with an offer of next day delivery to most destinations.

In 1993, Energex Pellet Fuel, Inc. acquired the Lac-Mégantic plant which started in 1982 to produce industrial wood pellets. After purchase of the plant, Energex added a packaging facility to bag premium grade wood pellet fuel and completed a total renovation, rehabilitation, and modernization of the plant facility.

In 2000, Energex merged a West Virginia pellet plant with another in Mifflintown, PA.  Energex American, Inc. now has a production capacity of over 50,000 tons per year.

1. Home or Business Delivery of Pellets in Bulk
Much like oil, gas, or propane
Convenient – you don’t need to be there

2. Sufficient Storage
1 – 3 deliveries a year
Attractive and/or unobtrusive

3. Fully Automated Central Heating System
Boilers and furnaces support existing distribution system
Automated feed system
Self-ignition and self-cleaning
Safety that is superior to propane or gas

4. Easy Installation/Service
Simple venting
Simple, once-a-year maintenance includes ash removal

National Pellet Sales