New Ethanol from Syngas Process

A press release from NetCo (OTCBB: NIVS.OB), a Washington State Company with headquarters in Vancouver, Canada announced that it has signed a definitive purchase agreement to acquire all the assets, including patents of Syntec Biofuel Inc. ("Syntec"), a Canadian, scientific research company, located in British Columbia, who has developed and patented a catalyst to convert syngas into ethanol.  According to the press release:

Currently over 90% of Ethanol production in the USA comes from traditional grain fermentation processes using corn, wheat or barley. Syntec technology focuses on an entirely different Ethanol production process by using a Gasification-Catalytic Synthesis, which is a thermo-chemical process that converts Syngas into Ethanol. Unlike the current fermentation processes, Syntec's catalysts will produce Ethanol from unlimited sources of feedstock using waste gas, such as biogas from landfills, sewage, manure, wood waste, and producer gas (thermal gasification of biomass or other carbonaceous material such as municipal solid waste). This process will also create far greater green house gas (GHG) reductions and carbon credits than the fermentation process.

The Syntec ethanol synthesis process consists of 3 basic steps:

1. Production of syngas (CO, H2) either through steam reforming/ partial oxidation of biogas, landfill gas, or through the gasification of biomass feedstock.
2. Conversion of syngas to ethanol over Syntec catalyst.
3. Distillation of ethanol (high purity).

The following cost comparison was prepared by Syntec.  The US$2.33/gallon capital cost and US$0.78/gallon production cost are based on Syntec engineering consulting firm, Plant Process Equipment Inc, Houston, Tx, (PPE’s) estimates using landfill gas with small scale 80 TPD capacity:

	Enzyme/Fermentation e.g., Iogen Canada	Gasification/Synthesis Syntec Biofuel Inc.
Theoretical yield	114 gal/ton	230 gal/ton
Actual yield	70 gal/ton	114 gal/ton (Syntec est.)
Approx. capital cost/gallon/year	$4.45  (IEA2002 est.)	$2.33 (PPE  est.)
Approximate cost/gallon	$1.44 (IEA 2002 est.)	$0.78(PPE est.)

The press release continues:

Syntec has spent the past 5 years developing its catalytic research at laboratories at the University of British Columbia, and now at their own laboratory, where they have demonstrated proof of concept using precious metals. They have been funded through private equity and the Canadian government agencies, National Research Council of Canada and Natural Resources Canada. Syntec is now in Phase 2 of development, refining its Catalyst using non-precious metals for long term stability tests under industrial conditions and expects to be ready to file a second patent application in the 4th quarter of 2006. A prototype plant has been constructed and commissioned using landfill gas. NetCo has undertaken to raise US one million dollars to fund the program and will be filing a Private Placement Offering Memorandum.

Michael Jackson, President of NetCo Investments Inc., says, "We believe that Catalytic agents are going to spawn the next generation of growth in the Ethanol industry. With oil prices now exceeding $60 barrel this acquisition will become a major part of the Company's development strategy." Lawrence Wong, Director and President of Syntec Biofuel Inc., has been invited to join the Board of NetCo Investments Inc., and will be appointed President of the Company. "I am really excited to join forces with NetCo. This acquisition will provide us with the resources we need to further our catalytic development," says Wong. Mr. Jackson will remain a Director and CEO of NetCo.

NetCo's revenue model will be based on a licensing fee of approximately 7.5 cents per gallon.

The Company has agreed to issue 15,700,000 shares in exchange for 100% of the Syntec Assets and will assume the liabilities. The purchase of the Assets is subject to NetCo shareholders' approval at their Annual General Meeting in May 2006.

NetCo's current business is in the animal food and supplement sector, which the Company proposes to continue operating in parallel with the Syntec patent application.

On April 12 Netco announced a private placement subscription offering for $1 million to provide funding for the development of the catalyst being acquired from Syntec Biofuel Inc. On May 19 it raised the offering to $2 million.

BRI also has a gasification process for producing ethanol in which the biomass is converted to synthesis gas (consisting primarily of carbon monoxide, carbon dioxide, and hydrogen) via a high temperature gasification process followed by using anaerobic bacteria to convert the synthesis gas into ethanol.

Apparently the company has no experience with gasification.  Please note that their cost estimate was based on using landfill gas as feedstock, eliminating the gasification step and reducing the cost significantly.

Resources:

NetCo Acquires Innovative Technology to Produce Ethanol, NetCo press release
Syntec Biofuel website, Burnaby, B.C., Canada

Comments

[Jim Baerg]

If this works it would also work for turning syngas from coal into ethanol. That wouldn't have the green PR of using biomass, but it would probably be the cleanest way to use coal.

[JesseJenkins]

Yeah, thanks for pointing out that they use landfill gas as their feedstock. That presents a very unfair comparison with Iogen's process, which relies on biomass. Comparing their yield and expenses for biomass feedstock would be the fair comparison. I assume they don't publish those figures (which is a shame).

[G Eddy]

For the less knowledgeable of us, it woud be helpful if someone would define "syngas" in chemical terms. Ntural gas, for instance, is about 85% methane, and other components are ethane, propane and some lesser items.

What is the composition of syngas?

[Pete]

Syngas is a mixture of carbon dioxide and hydrogen gases that forms the starting point for many chemical synthesises. There is no "standard" composition although it is typically created by steam reforming methane:

CH4 + H20 = CO + 3 H2

[Michael Cain]

Syngas is a mixture of carbon dioxide and hydrogen...

That would be carbon MONOXIDE, as properly shown in the equation.

[Paul F. Dietz]

One advantage of syngas-based processes is the ability to extend the carbon feedstock by supplying a non-chemical source of energy. Gasification is endothermic, so there must be a source of energy to drive it. Normally, this is provided by partial oxidation of the feedstock, but it could also be provided externally. For example, a high temperature nuclear reactor could be used to provide hot steam, CO2 and/or recycled syngas. This gas would be injected into the gasifier, providing the enthalpy to drive the reaction. Not only would this increase the amount of fuel producible from the feedstock (in some cases with up to quantitative use of all the carbon) but it would also enable the gasification to be done without addition of air, so the syngas could contain much less nitrogen.

For biomass, syngas routes have the advantage of using the energy in lignin, which the fermentation approaches can't handle.

[Josh Xiang]

But I heared that production of ethanol by the reaction of carbon dioxide and hydrogen gas is conducted with a anaerobic bacterium, Clostridium ljungdahlii. Why don't you to develop it?

[Pete]

Carbon monoxide indeed. Sorry, brain not switched on.

[John Huang]

Which one is cheap for making ethanol?
Biomass to ethnaol
Biomass to ethanol by fermentation
Syngas to ethanol
syngas to ethanol by fermentation

[Michel Jung]

would somebody be able to address the economics of trapping CO2 from chimney stacks to feed microalgae which can then produce biodiesel by extrusion and ethanol by fermentation of the cake;
Plenty of possibilities maybe all it needs is a political commitment like lunar missions,

[Michel Jung]

in addition there is the possibility to use CO2 from chimney stacks from classical coal plants to feed microalgae which produce by photosynthesis biodiesel by extrusion and biethanol by fermentation of the remaining cake;
Is it too early to evaluate the economics of all these possibilities? Shouldnt government or DOE launch a full programme like a the time of the lunar landing?

[doug]

yep POLLITICAL committment! Thats it...you have to support progressive technology with Public Policy, and now maybe we can get that! Now that Haliburton is not ruling the White House!!

We can literally gassify garbage and condense it into ethanol very easily, why not?? public policy and financial interests...guys like Exxon.

Im prepared to do it myself in my backyard!

[Vasanthi]

Dear All,
I would like to know the proess of bio-syngas to ethanol.
What is the composition of syngas?

[Vasanthi]

Dear All,
I would like to know the proess of bio-syngas to ethanol.
What is the composition of syngas?

[Dave Duthie]

Syngas is indeed the product of steam reforming. When the feedstock is pure methane the products are carbon monoxide and hydrogen. The carbon monoxide can be made to react with more steam to produce carbon dioxide and more hydrogen in a process called secondary reforming by using a different catalyst. When the feedstock is a more complicated hydrocarbon the products can also be more complicated and require additional refining steps. The gasification process is well known but what can be done with it's products depends heavily on what has been gassified. Methanol is produced from syngas produced from methane as is ammonia. Historically it has been possible to produce ethanol from methane sourced syngas but the catalysts available have produced a brew of a number of chemicals making the cost of refining the target product ethanol very expensive. More success has been had in producing gasoline or diesel fuel using the related Fischer-Tropsch process. (ie. WWII Germany and apartheid blockaded South Africa) This process gets to be viable when gasoline sells for ~$2/litre.
To produce ethanol from syngas by catalyst a more specific catalyst would need to be developed along with effective molecular sieves to remove the remaining impurities. To Produce ethanol biologically not only does the yield from the bacteria need to be enhanced you also have to remove a lot of heat from the syngas. Some of this can be used in cogen but from 150C down is wasted. I haven't found any information demonstrating that these problems have been solved. It's like the biodiesel from algae dream. It can be done but it is very difficult to separate the oil from the algae.