Bloomberg: Butanol heading to U.S. as ethanol substitute


Today's strength in Gevo (GEVO +9.7%) is attributed to a Bloomberg story that butanol may be in U.S. pumps as soon as next year in a challenge to ethanol’s domination of the $26B renewable fuels market.

Butamax Advanced Biofuel, funded by DuPont (DD) and BP, is retrofitting an ethanol plant in Minnesota to begin making butanol in commercial volumes in 2015, and Gevo, backed by Total (TOT) and billionaire Richard Branson, already runs a distillery in the state; both groups say they’ve lined up clients for large-scale deliveries.

“With ethanol dominant as a gasoline additive, the U.S. fuel industry simply hasn’t had much reason for adoption of butanol, [but] that may be starting to change now that ethanol is hitting a blend wall," says Raymond James analyst Pavel Molchanov.

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Comments (2)
  • funfundvierzig
    , contributor
    Comments (4525) | Send Message
     
    We believe DuPont's model for producing corn cob "gasoline", either bad-mileage ethanol or butanol, is flawed from the get-go. Stripping hundreds of thousands of fertile farm acres of rich organic material, corn stover, will deprive livestock of winter forage and exacerbate erosion and ground water pollution. It will also necessitate increased irrigation and the use of fertilizer, which is made from, guess what?…natural gas. Then there is the huge cost of harvesting corn cobs and stalks, drying and processing them at manufacturing sites and distributing the processed corn cob "gasoline" into the market.
    We don't think DuPont's long patient shareholders will ever see a dime of profit from this highly speculative and futuristic biofuel.
    Merely the opinion of one individual retail investor with a small short position in DD…funfun..
    29 Jan 2014, 03:11 PM Reply Like
  • fanoffun
    , contributor
    Comments (109) | Send Message
     
    DuPont and BP are, predictably, years behind the bio-fuels "boom" - coming on line just as the boom turns to a BIG-TIME BUST!

     

    Throw in the hundreds of millions wasted on a silly bio-fuels from wheat facility in the UK (another bone-headed DuPont-BP JV) and shareholders and taxpayers have indeed been FLEECED.

     

    DuPont could have saved hundreds of millions of wasted research and collected fart-gas from the executive wing and made more bio-fuels.
    29 Jan 2014, 10:11 PM Reply Like
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