My Clean Break column this week reports on a new study out of the Richard Ivey School of Business, which takes a look at the state of the bioproducts industry in Canada. The researchers behind the report analyzed Statistics Canada data between 2003 and 2009 and what they found was a disturbing negative trend — the industry is shrinking, not growing, at a time when bioproducts are desperately needed as part of a strategy to reduce our dependence on fossil fuels; also at a time when the United States and other regions are showing a strong commitment to bioproducts and are enjoying the associated growth.

What’s going on? Well, for one the bulk of bioproducts made in Canada are first-generation biofuels, such as corn ethanol, or other forms of bioenergy. We don’t give enough support to biochemistry research and product development, or higher value non-fuel markets such as alternative plastics, which in my view are much more exportable down the road. We are throwing money at corn ethanol and not doing enough to support and help commercialize next-generation biofuels produced from algae or cellulosic conversion technologies.

I’m pasting my column below, though before you read there are some caveats here. The data analyzed doesn’t cover the past two years, so there may be some positive signs not accounted for in this report. Also, Ontario appears to be doing much better than the rest of Canada, though this is not to suggest there’s enough being done in Ontario. Anyway, I think this report is an important wake-up call for Canada. Sure, we’re blessed with forestry and agricultural resources, but are we satisfied just growing and selling commodities? Are we going to continue down the path of selling our raw natural resources to other countries, only to purchase it all back in the form of higher-value products? Once again, Canada lacks a vision and has no real plan to lead the world on bioproduct development, even though it has the capacity to do so. Click below to read the full column: (more…)

There’s something about this company I just really like. Montreal-based Enerkem Inc. announced today that it will build, own and operate a waste-to-ethanol plant in Pontotoc, Mississippi, marking its first deal in the United States. The facility, called Enerkem Mississippi Biofuels, will involve an investment of $250 million. That will cover the cost of building the company’s cellulosic ethanol plant, which uses proprietary gasification, catalysis and gas conditioning processes. It will also cover the cost of an upstream solid waste recycling and pre-treatment facility.

The plan is for Enerkem to accept about 189,000 tons of unsorted waste per year from the nearby Three Rivers Solid Waste Management Authority of Mississippi. The two organizations are in the process of negotiating final financial and binding agreements. Enerkem figures that about 60 per cent of the incoming waste can be gasified at its ethanol plant to produce about 20 million gallons (about 75 million litres) of cellulosic biofuel annually. That would include crop and forest residues, urban “organic” waste, construction and demolition debris, including treated wood. The non-biomass portions that can’t be converted will be sorted and sent off for recycling.

This is a perfect example of green job creation. (more…)

Montreal-based Enerkem Inc. says it is entering the start-up phase for its first commercial-scale plant, which in this case is designed to convert old utility poles into five million litres of cellulosic ethanol every year. The plant, based in Westbury, Quebec, began construction in October 2007 and its core — the “conditioned synthesis gas island” — was completed in December. The plant is now in its advanced commissioning stage and production of conditioned syngas will soon begin. The gas will be used as a chemical feedstock initially to make methanol, which will be converted into ethanol using a separate module. “Once these gas-to-liquid modules are bolted to the syngas island, Enerkem will become the first producer of liquid fuels and green chemicals to commercially use renewable, non-food, negative-cost feedstock,” the company said. “The Enerkem thermo-chemical process uses one tonne of waste to produce 360 litres (95 gallons) of ethanol,” the company said. That’s enough fuel for a car to travel 2,500 kilometres.

Last June, you’ll recall that Enerkem, in partnership with Greenfield Ethanol, announced it is building a plant in Edmonton that will convert municipal solid waste into cellulosic ethanol. This is a company to watch.