Biobased Energy and Biobased Products_1_

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					     The Application of
  Industrial Biotechnology:
Biobased Energy and Biobased
        A Presentation by Brent Erickson
Vice President, Industrial and Environmental Section
Technology Development Accelerating Rapidly


     Examples of Rapid Technology
     Development Time to Market

• 130 years – steam locomotive -- from first
  patent to widespread use
• 80 years – electric power -- 50 million
• 16 years – personal computer -- 50
  million customers
• 4 years – internet --50 million users
21st Century – The Biotech Century
     • Medical Applications
     • Food and Agricultural Applications
     • Industrial & Environmental Applications
     • Nanotechnology Applications
                Biotech Timeline
• 1750 B.C. -- Sumerians use yeast to brew beer
• 500 B.C. -- Chinese use mold as an antibiotic to
  treat boils
• 1863 -- Mendel discovers transmission of genetic
• 1906 -- First early study of genes;
  term “genetics” introduced
• 1919 -- term “biotechnology” first
  used by agricultural engineer
• 1928 -- Penicillin discovered
• 1953 -- Watson and Crick discover
  double-helix structure of DNA
Very Rapid Progress in Biotechnology Begins

  •   1960 – First synthetic antibiotic
  •   1965 – Mouse-human cells successfully fused
  •   1966 – Genetic code cracked
  •   1973 – Technique to cut and paste genes developed
  •   1981 – First transgenic animals
                Last Twenty Years
• 1983 -- First artificial chromosome
• 1985 -- Genetically engineered plants field tested
• 1986 -- Use of microbes to clean up oil spill
• 1988 -- First patent for genetically altered animal – a
  transgenic mouse
• 1995 -- First non-viral full gene sequence completed
• 1997 -- Dolly the cloned sheep unveiled
• 2002 -- Mapping of human genome virtually complete
         Industrial Biotechnology
• The application of life sciences to conventional
  manufacturing and synthesis processes -- uses
  genetically engineered bacteria, yeasts and plants
• Usually results in:
   – lower production costs , more profit - $
   – less pollution
   – resource conservation
  Environmental Biotechnology
• Using life sciences to clean up pollution
Bioremediation using:

  – microbes

  – enzymes
          Industrial Biotechnology
             Range of Activities
Biobased Products   Manufacturing   Nanotechnology
   Bioenergy        and Synthesis   Biotech Interface
Recent Breakthroughs in
 Medical Biotechnology
Brought about by advances in
        • Genomics
       • Proteomics
     • Bioinformatics
Industrial and Environmental
 Biotechnology Companies
              are using the
    same genomic and proteomic tools
            used in medical
       biotechnology to discover
           new ways to make
industrial raw materials, intermediates
         and consumer goods
Some Tools in the Genomic and
     Proteomic Toolbox
•   Gene Shuffling
•   High Throughput Screening
•   Directed Evolution
•   Molecular Breeding
•   Protein Engineering
•   Extremeophiles
•   Bioinformatics
               One Example:
• Diversa -- has “bioprospecting”
agreement with USPS -- samples
hot pools and geysers in
Yellowstone National Park

• Finds microbes--extremophiles
with unique genomes -- then uses
gene shuffling to discover new
enzymes for industrial applications
                 Example 2
• Spider silk is a very strong fiber
Dr. Randy Lewis -- University of Wyoming
helped insert spider silk genes into goat genes

• Nexia – Using transgenic
goats to produce spider silk
proteins in milk for industrial
    Example 3
• BP Amoco

• Research and development --
  modifying genes in microbes to
  produce new enzymes for
  underground injection to complete
  newly drilled oil wells
       Bioenergy and Biobased Products
      Old-line biomass processing uses harsh
    chemicals and conditions – not economical

          Biotechnology Revolution

Genomics and proteomics are transforming biomass
      conversion processes and conventional
   manufacturing processes = new processes and
   The Key to a Commercially Viable
    Biobased Energy and Products
     Development of technologies
                to make
          inexpensive sugars
          in large quantities

Sugars are the raw materials or the “crude oil”
      that will be used in biorefineries
Renewable Sugar Sources
• Current – conventional grain milling

• Near Term – microbial/enzymatic
  hydrolysis of cellulosic biomass
  (R&D -- enzymes being developed)

• Medium Term – genetically modified
  plants to produce more sugars or starch, larger
             Sugar Sources

• Grain milling operations – dextrose

• Sugar Cane and Sugar Beets

• Break down and convert cellulose from plants
  to sugars and lignin
         Cellulosic Biomass
• Plant matter – made of tightly bonded
  sugars and lignin
• Cellulose is made of sugar building blocks –
  but is a tough nut to crack
• Pre-treatment + enzyme (cellulase)
  treatment = technological breakthrough

            Cellulose after pre-treatment
Cellulase is the Enzyme Used to Convert Cellulose
                     to sugars
Improved cellulase is required to make enzyme conversion
       of cellulosic biomass economically viable

DOE/Contract with Genencor and Novozymes for R&D to
         greatly improve activity of cellulase
Abundant Cellulose Sources
•   Corn Stover
•   Wheat Straw
•   Barley Straw
•   Sugar Beet Tops
•   Alfalfa
•   Switch Grass
•   Saw Dust
  Products That Can Be Made
  From Cellulosic / Sugars
• Ethanol (transportation
• Polymers – PLA, PHA,
• Fine Chemicals
• Bulk Chemicals
• Commodity Chemicals
     Who Are Some of the
     Players in this Field?
•DuPont           •Monsanto
•Cargill-Dow      •Dow
•Iogen            •PureVision
•Genencor         •Shell Renewables
•Maxygen          •Diversa
•Nexia            •Novozymes
•Metabolix        •Biotechnical Resources
•Codexis          •DSM
   Universities and Laboratories
  With Emphasis on Bioprocessing
•Purdue University            •Dartmouth College

•Iowa University              •Iowa State University

•University of Wyoming        •University of Wisconsin

•Oak Ridge National Lab       •National Renewable Energy
(ORNL)                        Lab (NREL)
•Pacific Northwest National   •Argonne National Lab (ANL)
Lab (PNNL)
              Case Study
  Cargill – a grain processing company
developed process to make plastic from corn
Sugar   lactic acid    polylacticacid (PLA)
polymer      many plastic consumer products
      Cargill Spent $25 Million
     Developing PLA Technology
        But commercialization not completed

Department of Commerce – NIST – Advanced
Technology Program (ATP) provided an additional $5
million for R&D; Department of Energy also
provided R&D funding.

Result of gov’t assistance – technical barriers were
overcome facilitating commercialization activities
Cargill – Developed PLA Process But Did
  Not Know Plastic Market Very Well

So they formed strategic joint venture with Dow
As a Result of Government Assistance and
   Formation of Strategic Partnership
  Cargill-Dow Biorefinery
         Dedicated Spring 2002

            Blair, Nebraska
      Bioenergy - -It’s Not Just
           About Ethanol
• Old technology to ferment sugar to ethanol has
  been around for centuries
• NEW technology to convert cellulose to sugar
  economically is under development
• Next generation biorefineries will use enzyme
  technologies to make sugar from cellulose that
  will then be converted to multiple products –
  fine chemicals, bulk chemicals, polymers and
  ethanol will be produced
• Multiple products means better economics
 Next Generation Biorefineries
• Will be fully integrated facilities that can
  process grain or biomass crops into a full
               range of products
Companies and Countries are
 in a Bio-Technology Race
               • To develop the
                 best biomass

               • To design, fund
                 and build new
       Industry – Government
• Private sector is making great strides in
  developing new biotech processes
• Government polices matter – can help or hinder
• Government assistance is needed to help solve
  technical and financial problems
• U.S. Dept. of Energy, U.S. Dept.of Commerce
  (NIST), and USDA involved in
  funding biotech R&D activities

Congress passed the Lugar-Udall Biomass Research and
Development Act in 2000
   • It was a major initiative to spur the development of
     enzyme based biomass conversion technologies and
     provided over $52 million over 5 years for R&D.
   • It also created a private-sector technical advisory
     board to advise DOE/USDA on R&D spending
     priorities related to biomass conversion.
            Recent Legislative Activity

• Congress
   • Farm Bill -- $25 million in funding for biorefinery development
     and biobased purchasing requirement; passed and signed by
     President Bush in 2002.
   • Comprehensive Energy Legislation -- $300 million
     authorization for renewable energy technology development,
     including bioenergy, polymers and biobased chemicals
• Bush/Cheney -- Administration generally supportive of
  biobased energy and proposed tax credits for biomass energy
• Future program - ? ? ?
  Congress Considering
Comprehensive Energy Bill
$300 Million for biobased energy R&D

    Senate language – is not just about energy
  Biofuels. The goal of the biofuels program shall
    be to develop, in partnership with industry ….
        “(b) advanced biotechnology processes
    capable of making biofuels, biobased polymers,
    and chemicals, with particular emphasis on the
    development of biorefineries that use enzyme
    based processing systems.”
              Biobased Products
              & Biobased Energy
               Are Better for
              Our Environment
• They use renewable resources as feedstocks – help
  conserve fossil fuels
• They are carbon neutral – no contribution to global
• Products and byproducts are biodegradable
   Example of Environmental Benefits

When you are through wearing it--you can
         compost this T-shirt
  A Large-scale Biobased Products Industry Will
  Require Facility Construction in All Regions of
                 the U.S. and It …

• will be a significant economic engine
• will create jobs in rural America where they are needed
• will benefit the environment because it uses renewable
• will produce new consumer products that are
    Industrial Biotechnology Has
    Many Other Applications in the
       Manufacturing Sector
The Organization of Economic Cooperation
and Development (OECD) issued a report in
 2001 detailing 21 case studies of industrial
  biotech in use by companies around the
Order copies
on the OECD

Industrial And Environmental Biotechnology
                Is Key For--
 •   Developing new products
 •   Creating new jobs
 •   Conserving resources
 •   Finding new uses for ag crops
 •   Achieving industrial sustainability
 •   Bequeathing a cleaner environment to
     future generations

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