Shell and Cosan invest $1 bn in Brazilian biofuels

Originally posted on by John Brian Shannon John Brian Shannon

Everyone knows that Royal Dutch Shell is a giant in the global petroleum industry, but did you know that Raízen (Shell and Cosan’s joint biofuel venture) is Brazil’s 3rd-largest energy company?

Now Shell the petroleum giant and Cosan the sugar giant have teamed up to invest $1 billion dollars over the next 10 years in 2nd generation biofuels sourced from sugarcane.

Raízen, the joint venture between Royal Dutch Shell and Cosan Ltd, is the third-largest energy company in Brazil in terms of revenue. Image courtesy of Raízen.
Raízen, the joint biofuel venture between Royal Dutch Shell and Cosan Ltd. is the 3rd-largest energy company in Brazil. Image courtesy of Raízen.

The sweet part of this deal (apart from the sugarcane) is that both companies have committed to bring 1st generation biofuel production practices to an end, replacing those practices with 2nd generation technology, making Brazilian biofuels orders-of-magnitude cleaner.

Growing sugarcane for biofuel in Brazil usually means harvesting the cane of the sugarcane plant, leaving the rest of the plant behind. All of the ‘bagasse’ or ‘stover’ as it’s sometimes called, goes up in smoke as the fields are burned by the farmers twice per year. (Due to Brazil’s climate and nutrient-dense soil, sugarcane growth is explosive and Brazilian farmers can harvest 2 crops of sugarcane per year)

So much smoke and CO2 is generated from this 1st generation practice that NASA says it is able to detect changes in the Earth’s airmass for many weeks after millions of acres of sugarcane fields are burned in Brazil.

Happily, that’s going away now as Raízen will harvest the bagasse immediately after the main sugarcane harvest and process it with enzymes in cellulosic bioreactors, converting it into very pure ethanol.

All the benefits of ethanol biofuel — but without the (1st generation) drawbacks

Nothing will change with regards to the same fast, reliable, and simple process presently employed to produce biofuel from the sugarcane itself.

But harvesting the bagasse, changes everything as millions of acres of fields no longer need to be burned twice per year in order to remove the millions of tonnes of leftover plant material.

Due to advances in cellulosic biofuel technology, the leaves, roots and other parts of the sugarcane plant can be used in new cellulosic biofuel reactors (basically, a 500,000 gallon soup pot) to produce very high quality ethanol (or biodiesel, depending on the enzymes chosen and the process employed) at a moderate cost.

Raízen will increase their annual biofuel output by 50% to 1 billion litres — which is roughly equivalent to 106 million US gallons

No doubt that most of this newfound ethanol will be used to power cars within Brazil as all gasoline in the country must have a minimum 25% ethanol component — known as the E25 blend. If you choose the ‘other pump’ at the gas station, you can fuel your car with 100% ethanol, assuming your car is E100 compatible.

There are no longer any light vehicles in Brazil running on pure gasoline

Since 1976 the government made it mandatory to blend anhydrous ethanol with gasoline, fluctuating between 10% to 22%, and requiring just a minor adjustment on regular gasoline engines.

In 1993 the mandatory blend was fixed by law at 22% anhydrous ethanol (E22) by volume in the entire country, but with leeway to the Executive to set different percentages of ethanol within pre-established boundaries.

In 2003 these limits were set at a minimum of 20% and a maximum of 25%. Since July 1, 2007 the mandatory blend is 25% of anhydrous ethanol and 75% gasoline or E25 blend.

The Brazilian car manufacturing industry developed flexible-fuel vehicles that can run on any proportion of gasoline (E20-E25 blend) and hydrous ethanol (E100).

Introduced in the market in 2003, flex vehicles became a commercial success, reaching a record 92.3% share of all new cars and light vehicle sales for 2009.

By December 2009 they represented 39% of Brazil’s registered Otto cycle light motor vehicle fleet, and the cumulative production of flex-fuel cars and light commercial vehicles reached the milestone of 10 million vehicles in March 2010, and 15.3 million units by March 2012.

By mid-2010 there were 70 flex models available in the market manufactured from 11 major carmakers.

The success of “flex” vehicles, together with the mandatory E25 blend throughout the country, allowed ethanol fuel consumption in the country to achieve a 50% market share of the gasoline-powered fleet in February 2008.

In terms of energy equivalent, sugarcane ethanol represented 17.6% of the country’s total energy consumption by the transport sector in 2008. — José Goldemberg, the father of the Brazilian biofuel industry, as quoted by

If all ethanol producers in Brazil follow Raízen’s lead, the country could soon be exporting millions of litres of very pure (clean burning) and very clean (sustainable agriculture practices) ethanol biofuel

As far as the cost is concerned, producing second generation cellulosic oil is more costly than that of ethanol, produced from other sources. Raizen’s Agro-Industrial Director, Joao Alberto Abreu, expects costs to decrease over time as enzymes needed for production become more easily available.

Brazil is the biggest ethanol producer in the world and one of the biggest exporters of biofuel.

Many ethanol producers have been struggling over the past few years but there are encouraging signs as domestic demand for ethanol is on the rise, while the opportunity to export cellulosic ethanol might grow in the near future.

It looks like 2nd generation biofuel production practices have won in Brazil. Competitors will be forced to emulate Raízen’s lead rather than continue to send millions of dollars worth of product up in smoke at each harvest

All in all, a very sweet deal. Congratulations to Shell and Cosan on their Raízen joint venture.

The Difference between Biofuels and Fossil Fuels

Originally published at
by John Brian Shannon John Brian Shannon

The burning of fossil fuels over the past 90 years has released gigatonnes of CO2 into the atmosphere over that time.

Previous to the large-scale commercial extraction of petroleum beginning around 1920, the carbon embedded within coal and oil was permanentl­y stored undergroun­d and had stayed there since the time of the dinosaurs.

It wasn’t going anywhere near the surface of our planet or into our atmosphere anytime in the next billion years — until mankind started bringing it up to the surface and burning it

The burning of fossil fuels extracted from deep below the surface of the Earth is a huge source of new CO2 introduced into our present-day atmosphere. — John Brian Shannon, Biofuel Central

Plant-based biofuels on the other hand, utilize plant matter that grows in our 21st-century — plants which absorb CO2 out of our modern-day atmosphere every day of the year­

Jatropha tree
Jatropha fruit is toxic, but it has high oil content and it grows in semi-arid regions making it suitable for biofuels. In developing nations, jatropha plantations provide plenty of work for labourers around harvest time.

Jatropha trees, for instance, live 40 years. Only the plentiful fruits (several tonnes per hectare) are harvested each year for processing into biofuels while the rest of the tree continues to draw CO2 out of the air every day of the year. Because that’s what trees do.

After breathing in CO2 and exhaling oxygen for 40 years, at the end of that tree’s life almost exactly the amount of CO2 it captured during its lifetime returns to the environmen­t, making the Jatropha’s carbon footprint, zero. (Exactly what it captured, it released, over its 40 year lifetime)

Then, new Jatropha trees are grown and a new carbon-neutral process begins.

Not so for fossil fuels. Carbon-heavy coal and oil are a huge source of new carbon that we bring up from deep undergroun­d which, as we burn it, continuously adds new CO2 to our atmosphere

Therefore ALL fossil fuel burning adds to the overall CO2 load of our atmosphere – while plant based biofuels are CO2-neutral, as they merely recycle the same carbon dioxide, many times over.

Where am I going with this?

We should blend our fossil fuels with CO2-neutral biofuels (50/50) to taper our dinosaur era, petroleum based, CO2-additions to the atmosphere.

Biofuels now come in three generations

  • 1st generation biofuels were the first on the market, but required massive subsidies to be economically viable.
  • 2nd generation biofuels were next-up and as the technical problems are now solved, new 2nd generation biofuels are surging ahead and show dramatic CO2 reductions.
  • 3rd generation biofuels are in the pilot programme stage at this point, but early indications are that negative CO2 emissions may be possible — as megatonnes of waste carbon dioxide from nearby factories are used in algae biofuels production and the profitability of this new generation of biofuels (even without subsidies) seems likely.

The three generations of biofuels

Corn, palm tree, and sugar-cane are examples of 1st generation biofuel crops. They are poor choices for biofuel production as they have their own environmental negatives attached to them and they require massive subsidies to compete in the marketplace.

1st generation biofuel crops require billions of gallons of precious water, plenty of fertilizer, pesticides and land management.

And it goes without saying of course, that replacing food crops with biofuel crops is a very bad idea.

Fortunately, 2nd generation biofuel plants grow in conditions and areas which are inhospitable for food crops.

Some examples of 2nd generation biofuel plants which grow in semi-arid regions are; Jatropha, Millettia and Camelina and the cultivation of these provide plenty of jobs for developing nation labourers.

“China has set aside an area the size of England in which to grow 2nd generation biofuel crops.” — Will Thurmond, Biodiesel 2020

Biofuels that are produced with algae or enzymes are known as 3rd generation biofuels and are the most efficient way of producing biofuels, using only water, plant matter, relatively small amounts of algae and microscopic enzymes to do the work.

And talk about good karma, algae thrive when CO2 is added to the conversion chamber (called a ‘biofuel reactor’ which is basically a 500,000 gallon soup pot) and helps to convert the ingredients into high quality gasoline.

In the new algae-to-gasoline plants, tonnes of CO2 from nearby industry are added to the ingredient list to help boost the speed of the process and to increase the final amount of gasoline produced.

Like any other green plant, algae ‘eats’ the CO2 and emits pure oxygen just like the trees in your neighborhood.

Each batch takes 5 days and at continuous production that means CO2-eating and oxygen production is happening every day of the year.

Green gasoline inside clear plastic pipes. Algae requires four days of sunlight and mild temperatures to process the ingredient mix into pure gasoline. Wageningen University Integrated Sustainable Algae (InteSusAl) demonstration pilot project in the municipality of Olhão, in the Algarve region of southern Portugal. Image courtesy of AlgaePARC (Algae Production and Research Centre) at Wageningen University & Research Centre.

It’s better to continuously recycle a large amount of carbon-neutral plant-based CO2 (recycling it millions of times over) than to bring new carbon in the form of coal and oil to the Earth’s surface with it’s carbon-heavy load to burn it, thereby adding unfathomable gigatonnes of new CO2 to our 21st century atmosphere.

Yet another biofuel bonus

Boeing 787. Image courtesy of Boeing.
Boeing 787. Image courtesy of Boeing.

Lower CO2 emissions are a well-known bio-jet fuel benefit, regardless of which biofuel generation they hail from.

Boeing’s Sustainable Biofuels Research & Technology Program reported 80% lower CO2 emissions for camelina bio-jet fuel when compared to conventional jet fuel.

All 1st, 2nd, and 3rd generation biofuels are low carbon fuels (at the combustion stage) but only 2nd generation biofuels are economically viable at this point in time. New formulation 3rd generation biofuels look to have even lower CO2 emissions than the 2nd generation biofuels already on the market.

Depending on the type of biofuel crop employed, lowered CO2 emissions (as compared to conventional petroleum-based jet fuels) in the range of 50-80% are proven

New algae bio-jet fuels are showing CO2 emission reductions of better than 90% when compared to petroleum-based jet fuel.

There is every hope that within 10 years that new algae bio-jet fuel will prove to be CO2-negative as the algae requires huge volumes of carbon dioxide gas to grow at best possible speed.

Airline operators and the U.S. military note that the new bio-jet fuels extend engine life, emit less soot and smoke, and are easier on fuel system components such as fuel pumps and injectors

Notes about sugarcane:
Sugarcane moves from its present 1st generation biofuel ranking
to 2nd generation biofuel ranking if certain guidelines are followed.

Sugarcane is usually considered a 1st generation biofuel crop, but;

1) if farmers refrain from burning sugarcane fields after each harvest (twice yearly) and
2) if the rest of the plant (not just the ‘cane’ but also the roots and leaves) are converted to biofuels via a new type of cellulosic bioreactor, and
3) where sugarcane fields aren’t displacing food crops, sugarcane is an excellent choice for a high-yield 2nd generation biofuel.