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Alliance Bio-Products comments on bioethanol market

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Hydrocarbon Engineering,

Alliance Bio-Products, Inc. (Bio-Products), a subsidiary of Alliance BioEnergy Plus, Inc., has commented on a recent study highlighting the emerging market opportunity within the bioethanol industry. Bio-Products has a commercialised, patented cellulose to sugar (CTS) technology for use as a high efficiency, low cost option for the production of cellulosic ethanol within the growing bioethanol production market.

A recent study states the global bioethanol market will rise to nearly US$9.6 billion by 2022 due to a number of factors including the rise in environmental concerns, mandates imposed by regulatory bodies, a need to lower greenhouse gases, and an increased demand from the Asia-Pacific region. The bioethanol market was valued at US$5.7 billion in 2015 and is expected to have a compound annual growth rate (CAGR) of 7.6% until 2022.

The key challenge for the production of cellulosic ethanol, as indicated within the report, is the high investment and production costs. Another highlighted challenge includes the current debate over the use of agricultural land for food versus fuel.

Alliance Bio-Products' patented CTS technology provides a less expensive solution for the production of cellulosic ethanol due to its extremely low construction costs and through its ability to convert any cellulose material including commercial, residential and agricultural waste into sugars for ethanol production, as well as other products such as bioplastics, fine chemicals and a variety of consumer and industrial goods. The use of waste material ensures the production of fuel does not interfere with food production or pull from the nation's food supply as it uses discarded materials including yard clippings, agricultural waste, paper and wood chips.

The dry mechanical process is completely environmentally friendly as it does not require the use of enzymes, liquid acids, applied heat, pressure or hazardous materials. The combined use of waste materials and elimination of additional processing materials brings the cost of production to less than US$1/gal., well below the US$3.50 plus cost per gallon of competing cellulosic technologies and significantly lower than traditional corn-based ethanol of US$1.35 to US$1.65/gal. depending on the price of corn.

"The bioethanol market shows significant potential due to its ability to address a number of growing concerns including environmental best practices and its ability to minimise greenhouse gasses while dealing with our nations rapidly growing waste issues," says Jim Brown, President of Alliance Bio-Products. "As the market grows, we expect to see a continual increase in the use of our patented CTS technology due to our capability to overcome challenges including cost and feedstock material. With CTS, price for production is lowered to under US$1/gal. and bioethanol producers can use residential and agricultural waste instead of interfering with food supplies or taking up valuable farming lands."

To further the commercialisation of its CTS technology, the company recently announced a funding opportunity through a 506(c) filing to raise US$10 million for the purchase of a closed biofuel facility in Florida.

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Downstream news North America downstream news Biofuel news