Iogen's process technology can be effective on a multitude of feedstocks, with tremendous global potential for biofuel production. The International Energy Agency estimates that the worldwide potential for sustainable production second generation ethanol is about 100 billion gallons per year when using only 25% of agricultural and forest residues. The opportunity is spread across the world:
100 B Gallon Potential Cellulosic Ethanol Production from Residues
25% Share of Agricultural and Forestry Residues Used for Cellulosic Ethanol Production
IEA further estimates that bioenergy production can increase more than this level significantly with the use of dedicated crops.
Commercial Focus on Crop Residues
We believe crop residues present an opportunity for low cost, large volume supplies with limited disruption to existing agricultural practices. The use of crop residues also has minimal indirect land use impacts, negligible establishment costs, and volume excess that mitigates agronomic and weather risks.
Iogen has had a multi-year commitment to developing an effective strategy for acquiring secure, bankable long term commitments from farmers for crop residue supply. Our approach involves marketing a customized, focus-group tested offering to farmers in a target locale. Our team has signed up more than 1900 farmers and contracted for the supply of over 2.8 million tons per year of crop residues. We believe that, once established in a region, we can drive costs down further by increasing market penetration, shortening trucking distances and, potentially, introducing dedicated crops to farmers.
Our partners in Brazil, Raízen, have focused on sugar cane residues. Their Costa Pinto mill will use Iogen ethanol production technology to process bagasse from existing facilities as well as tops and leaves from harvesting operations.