Breakthrough in Genetically Modified Plants for Renewable Energy

Scientists at The Samuel Roberts Noble Foundation in Ardmore, Oklahoma, have uncovered a gene that could revolutionize the biofuels industry in the United States. The gene is responsible for controlling the density of plant material. By removing the gene, farmers can grow denser plants that produce more biomass from the same acreage. In short, more energy from the same amount of land and less conflict with land needed to grow food.

Huanzhong Wang, Ph.D., a postdoctoral fellow at the foundation, found a gene that controls the production of lignin in the central portions of the stems of Arabidopsis and Medicago truncatula, species commonly used as models for the study of plant genetic processes. Lignin is a compound that helps provide strength to plant cell walls, basically giving the plant the ability to stand upright. When the newly discovered gene is removed, there is a dramatic increase in the production of biomass, including lignin, throughout the stem.

Increasing lignin in non-food crops, such as switchgrass, may increase the density of the biomass and produce more feedstock per plant. Compared to corn- or soybean-based biofuels, switchgrass and other low-input grassland perrenials can provide more usuable energy, greater greenhouse gas reductions, and less agricultural pollution per acre. In addition, many of the grass varieties can be grown on agriculturally degraded land, are drought and salt tolerant, and therefore can be grown on land that is not used for food production. Perrenial grasses also offer an excellent habitat for a wide variety of birds and small mammals.

"In switchgrass, as the plant matures, the stem becomes hollow like bamboo," said Dr. Richard Dixon, director of the Noble Foundation's Plant Biology Division. "Imagine if you use this discovery to fill that hollow portion with lignin. The potential increase in biomass in these new plants could be dramatic. This technology could make plants better suited to serve as renewable energy sources or as renewable feedstocks to produce advanced composite materials that consumers depend on every day."

Collaboration with scientists at the University of Georgia revealed that removing the gene also increases the production of carbohydrate-rich cellulose and hemicellulose material in portions of the plant stem. These are the components of a plant that are converted to sugars to create advanced biofuels, such as cellulosic-derived ethanol or butanol. More celluloses and hemicelluloses mean more sugars to use for carbohydrate-based energy production.

Biofuels have already shown that they can help even a large nation wean itself from foreign oil. Brazil has eliminated its dependence on foreign oil by using ethanol from sugar cane to meet most of its fuel needs. Increased lignin production in switchgrass and other perennial grasses could help the US reach energy independence as well.

John Howley
Woodbridge, New Jersey

$550 Billion In Welfare Payments for Dirty Energy

Governments around the world spent $550 billion on energy subsidies last year, mostly to keep down the price of dirty energy from oil and coal. The Financial Times broke the story today based on an advance copy of an International Energy Agency study.

In fact, that number represents only half the story. The $550 billion in direct government welfare payments for the oil and coal industries does not include all of the indirect government subsidies that these industries receive. It does not include the cost of soldiers protecting oil fields in Iraq; or the cost of treating respiratory illnesses caused by particulate emissions; or the cost of free liability insurance for oil and coal companies (in the form of limitations on their liability for harm to third parties); or the cost to individuals who lose their livelihoods when oil gushes uncontrollably into the Gulf of Mexico or the Niger Delta.

But let's stick with the very tangible number of $550 billion in cold, hard cash for now. What would happen if we took that $550 billion away from oil and coal, and invested that cash in clean, sustainable energy technologies instead?

Just taking the welfare payments away from the oil and coal industries would have a tremendous impact on the level of investments in clean, sustainable energy technologies. Think about it for a moment. You are considering an investment in a new technology. But the existing technology that you want to compete against receives $550 billion in direct government welfare payments every year to keep its price artificially low. So your new technology will not only have to be better than the existing technology, it will also have to be a half trillion dollars less expensive. That is a high hurdle for anyone considering an investment in new technologies.

Take away that half trillion dollars in government welfare payments, and now you have a level playing field. That alone removes a hurdle and provides an incentive to investors in new technologies.

And if you actually shift that half trillion dollars from the oil and coal companies to investments in clean, sustainable energy technologies, you can start a green revolution.

As an added benefit, the clean, sustainable energy technologies will not require these subsidies forever. Give a man a welfare payment to buy oil today and he'll be back for another welfare payment tomorrow. But give him the same payment to buy solar panels, and he'll have energy for a lifetime.

John Howley
www.HowleyGreenEnergy.com
Orlando, Florida

More Good News for Vehicle Fuel Efficiency

Yesterday I reported on a survey by KPMG suggesting that the automotive industry sees great promise in consumer demand for hybrid and other alternative fuel vehicles, and that the industry plans to build and promote more hybrid and alternative fuel vehicles over the next 5 years.

Today comes another story that puts a little meat on those bones. According to a study by Thomson Reuters, alternative power and pollution control have become the biggest source of patent activity in the automotive industry, surpassing perennial leaders such as engine design, braking systems and safety in 2009. Together they accounted for 23% of the patents issued within the automotive industry last year, with alternative power accounting for 14% and pollution control accounted for another 9%.

The report notes that "Only unique patent inventions were counted, providing the truest picture of innovation activity."

While it is too soon to tell whether any of these patents represent significant technological breakthroughs, the trend is encouraging. Obtaining patents is an expensive and time-consuming process. The issuance of patents in the areas of alternative power and pollution control means, at a minimum, that the automotive industry is serious about these technologies. It also suggests that the industry has been shifting R&D money to these areas for some time.

The Thomson Reuters study, 2009 Innovation Report: Twelve Key Industries and Their States of Innovation, tracks unique inventions in granted patents and published applications within 12 key industries. Click here to gain access to the full report.

John Howley
Orlando, Florida

KPMG Survey Suggests Shift Towards Hybrid and Alternative Fuel Vehicles

Senior automotive executives are expected to increase their investment in new technologies to produce more environmentally-friendly, fuel-efficient vehicles. This is the conclusion reached by the 11th annual global automotive survey conducted by KPMG LLP, the US audit, tax and advisory firm.

Of the 200 senior executives surveyed worldwide, nine in ten expect manufacturers and suppliers to focus on new technologies, while 88 percent predict manufacturers will increase investment on new models/products and 78 percent say suppliers will do the same.

Hybrid Seen As Most Important Fuel Technology

When asked to rate the importance of alternative fuel technologies over the next five years, hybrid fuel systems came out on top (almost 85 percent), followed by battery electric power (68 percent), fuel cell electric power (63 percent), and biodiesel (42 percent).

"The consumer mindset on fuel efficiency is forcing automakers to build more fuel efficient cars and to create new product that satisfies demand,"said Gary Silberg, National Automotive Industry leader for KPMG LLP.

The survey results come on the heels of sales data released earlier in the week showing that 2009 industry sales in the US were 21.2% lower than sales in 2008.

Fuel Efficiency Cited As Key Purchase Factor

The key question of course is: How much of the emphasis on fuel efficiency is the result of economic conditions, how much is due to stubbornly high fuel prices, and how much is due to climate change and environmental concerns?

The survey suggests that both fuel efficiency and environmental friendliness are driving consumer demand. When asked what would influence consumer purchase decisions over the next five years, fuel efficiency was most frequently cited (94 percent), fairly flat from last year's high of 96 percent, followed by environmental friendliness (just over 80 percent). Other consumer desires were significantly lower including safety innovation (71 percent) and vehicle styling (61 percent).

When asked which vehicles the executives expect will see sales increases over the next five years, hybrid fuel vehicles (almost 93 percent) were most frequently named, followed by other alternative fuel vehicles (83 percent), low cost or introduction cars (82 percent), cars (66 percent), cross-overs (46 percent) and small pick-up trucks (just under 45 percent).

Most surprising were the responses on incentives, including discounts, rebates and free offers. When asked to name which vehicles might see an increase in incentives during the next year, the top prediction was SUVs (53%). But almost an equal number of the auto executives surveyed responded that incentives would be increased for hybrid fuel vehicles (almost 50 percent) and other alternative fuel vehicles (48 percent).

We Are The Solution

Last week I gave a presentation on “Energy Efficiency Best Practices” to more than 100 CEOs of multinational corporations. The presentation began with a disclaimer. I did not intend to talk about alternative energy. I would focus, instead, on energy efficiency. On how companies can dramatically reduce their energy costs -- without changing what they do -- simply by using existing technologies to make their facilities run more efficiently.

Just to be clear, the first slide in my presentation said: “Focus on Efficiency.” Then I ended with the same slide: “Focus on Efficiency.”

What happened during the Q&A session? No one asked about energy efficiency. Instead, every one asked about alternative energy. What about electric cars? What about fuel cells? What about biofuels? What about cellulose? What about solar? What about wind?

Why were they asking about alternative energy? Because we all want to find the magic new technology that will make energy both environmentally friendly and inexpensive. Then we won’t have to do anything ourselves.

Don’t get me wrong. I’m no Luddite. In fact, I firmly believe that over time very smart scientists and engineers will make major breakthroughs that will eliminate our dependence on carbon-based fuels. Just in my lifetime, the microprocessor has revolutionized communications, media, data processing, medical diagnostics, and virtually every aspect of our lives. Once discovered, similar types of breakthroughs in energy and power generation will relegate carbon to the same dustbin of history as the rotary telephone.

But continuing to waste energy while waiting for alternative energy breakthroughs is a bit like continuing to spend recklessly while waiting to hit the lottery. It might happen someday. Maybe not. Even if it does, who knows when.

In the meantime, we have such a simple solution…….and it is us. Simply by taking very basic steps, we can reduce our energy consumption by 20% or more without altering our lifestyles or business practices. And we can do that today with existing technologies that have very short paybacks.

So, please, a little focus on efficiency.

John Howley
Hong Kong