Press Releases

Cars to run on fuel from household waste within two years

21 July 2008

Cars to run on fuel from household waste within two years

INEOS has the technology to produce commercial quantities of bio ethanol fuel from landfill waste

Second generation bio ethanol reduces greenhouse gases from car use by 90% and doesn’t use food crops in the production process

“This is a breakthrough technology” says INEOS Bio CEO
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INEOS, the world’s third largest chemical company, announced today that it is aiming to produce commercial quantities of bioethanol fuel from biodegradable municipal waste around two years.

INEOS’ new technology will produce bioethanol in large quantities from municipal solid waste, organic commercial waste and agricultural residues amongst other things.

According to Peter Williams, INEOS Bio CEO, “In North America and Europe we will see around 10% or more of petrol (gasoline) being replaced with bioethanol. Our technology will make a major contribution to reducing greenhouse gases and the world’s need for fossil fuels.

INEOS Bio Ethanol releases up to 90% less net greenhouse gases than petrol (gasoline). One tonne of dry waste can be converted into about 400 litres (100 gallons) of ethanol, which can either be blended with traditional fuels or replace them altogether, to substantially reduce vehicle emissions.

The technology – already proven at pilot plant scale – uses a simple three-stage process. The waste is first superheated to produce gases. Then, through a patented process, the gases are fed to naturally occurring bacteria, which efficiently produce ethanol. Finally, the ethanol is purified to make the fuel ready to be blended for use in cars.

Car companies have already developed engines that can run efficiently on both bioethanol and conventional fuels. Up to now, the challenge has been that bioethanol is manufactured primarily from food crops and this has raised concerns on price and availability.

Peter Williams says, “The fact that we have been able to decouple second generation biofuel from food is a major breakthrough, and we expect our technology to provide cost competitive, sustainable, renewable fuels”.

Dr Geraint Evans is the Technology Transfer Manager for the UK’s National Non Food Crops Centre. He says: “This is a breakthrough in two areas. Technologically because we can use municipal solid waste. And commercially because we have the potential to produce large volumes of bioethanol viably across the world”.

Governments, NGO’s and Municipal Authorities are already welcoming second-generation biofuels such as INEOS Bio Ethanol that will contribute to both reducing emission of greenhouse gases and the ever-growing waste disposal problem.

The process was developed in Fayetteville, Arkansas where Dan Coody is Mayor. He recognises the enormous potential: “This is the right product for us, at the right time, to help solve some of the world’s most intractable problems.

If we could use this ethanol from waste, we’re not only reducing our greenhouse gas emissions, we’re reducing our dependence on foreign oil.”

With the technology proven at pilot scale, the next challenge is to bring second-generation bioethanol into commercial production.

Peter Williams, INEOS Bio CEO says: “We expect to announce the location of the first commercial plant fairly shortly and we will aim to quickly roll out our technology around the world. We plan to be producing commercial amounts of bioethanol fuel for cars from waste within about two years.

ENDS


For more information, interviewees, VNR / B Rolll, graphics and stills, please contact :

www.ineosbio.com

Richard Longden, (t) +44 7710 371998 (e-mail) richard.longden@ineoscapital.com

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Note To Editors :

INEOS Bio is a new INEOS business. It was created on July 1st 2008 to commercialise and license a highly innovative thermo-chemical and bio-chemical technology for the production of biofuel, renewable power and chemical intermediates from a wide range of low-cost carbon materials. Its initial focus will be the commercialisation of the world’s leading second-generation bioethanol technology to serve the global renewable transport fuels market.

Central to the INEOS Bio technology is a highly selective, highly efficient, proprietary biochemical conversion of synthesis gas to bioethanol. The use of a natural bacterial biocatalyst is the essential key to unlocking the value chains from low cost carbon through synthesis gas, to fuel.

Research on this innovative biochemical process began in Arkansas, USA in 1989. A team of dedicated researchers took the technology from discovery through to integrated pilot plant scale over nearly two decades. Progressive stages of laboratory development finally culminated in the construction of a purpose built, integrated pilot plant just outside the City of Fayetteville in Arkansas. The pilot plant has been operating continuously on a range of waste materials since 2003. The group in Arkansas has now joined together with INEOS to form the new, stronger, multi-disciplinary INEOS Bio team, which has the skills and capabilities to commercialize quickly the technology.
The INEOS Bio second generation bioethanol technology efficiently converts a wide range of low-cost, organic materials, including household, commercial and agricultural wastes into bioethanol for use as a renewable road transport fuel or petrochemical intermediate.

The INEOS Bio process comprises three main steps:
1. Gasification of the prepared organic carbon material using oxygen to produce synthesis gas. The hot synthesis gas is quenched and cleaned. Heat is recovered to generate renewable power.

2. The cleaned, cooled synthesis gas is passed into a fermentation process, where it is consumed by anaerobic bacteria (the biocatalyst) and turned into ethanol. The fermentation broth contains a carefully controlled mixture of nutrients to deliver a reliably high yield of ethanol production. The bacteria achieve a very high selectivity to ethanol. The high yield and high selectivity translate to an outstanding process efficiency and leading production economics. The off-gas from the fermenter is used to produce additional power and heat.

3. The ethanol solution is purified to make anhydrous ethanol (>99.7% ethanol). This is subsequently blended into gasoline (e.g. at 5% ethanol concentration for E5 or at 85% ethanol concentration for E85 as required for the local renewable road transport fuel market).

Two independent life cycle assessments on the production of INEOS Bioethanol from waste biomass both indicate that GHG savings of > 90% vs. petrol should be achieved. This magnitude of GHG saving is significantly higher than the best performing bioethanol today.

It is expected that the INEOS Bio technology, producing clean bioethanol will form an important part of the overall INEOS biofuels strategy. As a technology business this sits well alongside INEOS Enterprises, which has more than 10 years experience in the biodiesel sector and also markets bioethanol. The INEOS Enterprises facility at Baleycourt is centrally located in the heart of France's second largest vegetable oil producing region. The site currently transforms 135,000 tonnes per annum of rape seed oil for supply to customers in the fuel distribution and chemical industries. The capacity of the Baleycourt facility will increase to 210,000 tonnes per annum by the end of this year.

INEOS is the world’s third largest chemicals company and a leading manufacturer of petrochemicals, specialty chemicals and oil products. Comprising 18 businesses, with a production network spanning 70 manufacturing facilities in 14 countries. The company produces more than 40 million tonnes of petrochemicals, 20 million tons per annum of crude oil refined products (fuels). INEOS employs 16,000 people and has sales of around $44bn.