7-01: Commercialization of second generation biofuels: An independent engineer's view

The renewable fuels industry, which experienced steady progress through first generation biofuels such as corn based ethanol and oil seed based biodiesel has slowed significantly in the commercialization of second generation technologies including cellulosic ethanol and algae based biodiesel.   While the base technologies are promising, there are structural issues that go beyond technology development which impede implementation.  The purpose of this presentation is to provide a detailed background on the way large scale renewable energy technology is financed and implemented, outlining a roadmap for stakeholders bringing these technologies to market.
A brief overview of the factors that allowed first generation biofuels to grow rapidly will be covered and contrasted with the factors that are limiting next generation technologies.  A review of the capital cost of emerging biofuel technologies will be provided, along with a summary of the engineering approach and construction contracting options, and how they can impact the ability to gain financing.  Common forms of equity and project financing will be reviewed.  Finally, the topics will be summarized with a roadmap of how large, commercial scale emerging biofuel projects can be moved forward.  This presentation comes from direct experience by the author in taking an emerging technology from pilot scale to a full size commercial facility.