Just another Reality-based bubble in the foam of the multiverse.

Tuesday, June 17, 2008

More news ExxonMobil doesn't want you to hear

The Saudi Royals will probably not too happy about this either:

from The London Times
June 14, 2008
Scientists find bugs that eat waste and excrete petrol
Silicon Valley is experimenting with bacteria that have been genetically altered to provide 'renewable petroleum'

Chris Ayres

“Ten years ago I could never have imagined I’d be doing this,” says Greg Pal, 33, a former software executive, as he squints into the late afternoon Californian sun. “I mean, this is essentially agriculture, right? But the people I talk to – especially the ones coming out of business school – this is the one hot area everyone wants to get into.”

He means bugs. To be more precise: the genetic alteration of bugs – very, very small ones – so that when they feed on agricultural waste such as woodchips or wheat straw, they do something extraordinary. They excrete crude oil.

Unbelievably, this is not science fiction. Mr Pal holds up a small beaker of bug excretion that could, theoretically, be poured into the tank of the giant Lexus SUV next to us. Not that Mr Pal is willing to risk it just yet. He gives it a month before the first vehicle is filled up on what he calls “renewable petroleum”. After that, he grins, “it’s a brave new world”.

Mr Pal is a senior director of LS9, one of several companies in or near Silicon Valley that have spurned traditional high-tech activities such as software and networking and embarked instead on an extraordinary race to make $140-a-barrel oil (£70) from Saudi Arabia obsolete. “All of us here – everyone in this company and in this industry, are aware of the urgency,” Mr Pal says.

What is most remarkable about what they are doing is that instead of trying to reengineer the global economy – as is required, for example, for the use of hydrogen fuel – they are trying to make a product that is interchangeable with oil. The company claims that this “Oil 2.0” will not only be renewable but also carbon negative – meaning that the carbon it emits will be less than that sucked from the atmosphere by the raw materials from which it is made.

LS9 has already convinced one oil industry veteran of its plan: Bob Walsh, 50, who now serves as the firm’s president after a 26-year career at Shell, most recently running European supply operations in London. “How many times in your life do you get the opportunity to grow a multi-billion-dollar company?” he asks. It is a bold statement from a man who works in a glorified cubicle in a San Francisco industrial estate for a company that describes itself as being “prerevenue”.

Inside LS9’s cluttered laboratory – funded by $20 million of start-up capital from investors including Vinod Khosla, the Indian-American entrepreneur who co-founded Sun Micro-systems – Mr Pal explains that LS9’s bugs are single-cell organisms, each a fraction of a billionth the size of an ant. They start out as industrial yeast or nonpathogenic strains of E. coli, but LS9 modifies them by custom-de-signing their DNA. “Five to seven years ago, that process would have taken months and cost hundreds of thousands of dollars,” he says. “Now it can take weeks and cost maybe $20,000.”

Because crude oil (which can be refined into other products, such as petroleum or jet fuel) is only a few molecular stages removed from the fatty acids normally excreted by yeast or E. coli during fermentation, it does not take much fiddling to get the desired result.

For fermentation to take place you need raw material, or feedstock, as it is known in the biofuels industry. Anything will do as long as it can be broken down into sugars, with the byproduct ideally burnt to produce electricity to run the plant.

The company is not interested in using corn as feedstock, given the much-publicised problems created by using food crops for fuel, such as the tortilla inflation that recently caused food riots in Mexico City. Instead, different types of agricultural waste will be used according to whatever makes sense for the local climate and economy: wheat straw in California, for example, or woodchips in the South.

Using genetically modified bugs for fermentation is essentially the same as using natural bacteria to produce ethanol, although the energy-intensive final process of distillation is virtually eliminated because the bugs excrete a substance that is almost pump-ready...


I take that remark about the Saudi Royals back: if Shell's involved, they're into this up to their beards.

Craig Venter's group has had these bugs around for awhile, but hasn't wanted to release them because they wanted to figure a way to keep them from growing outside of proprietary hands.

Looks like Shell Oil- or someone familiar with it- has done an end run around that, to avoid Venter's clutches.

The next step will be to transfer the gene complex for making complex hydrocarbons into photosynthetic bacteria, that can use sunlight, carbon dioxide, and water to make hydrocarbons and oxygen.

Sooner or later it will be done, it's just a question of getting a few million bucks to bankroll the project.

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