Biomethanol, Inc.

No news flash. This is Sunday, and the price of oil remains at $125.96.


The following is an e-mail I today sent to a business colleague, in response to his advice. We have for, at least, a decade now, talked about forming a company to produce methanol from biomass. For now, it's best to keep names confidential, but anyone reading this and finding interest in our potential partnership is welcomed to communicate with me. (patkentak@hotmail.com).

Dear XXXXXX:

Thank you for your message. The biomethanol concept we discussed years and years ago is looking more and more sensible. If only we had the capability to have prepared the groundwork for leading the way. It's certainly not too late, and, to give ourselves some credit, the fiscal world is still not jumping into this field, so our timing, or lack of it, might actually be optimal.

For one, the farm lobby is so dominant that they will continue to insure for the continued use of ethanol for another decade. They have all those faciities already built, and they don't want them to suddenly become obsolete. As a sensible diversion, most are now touting converting the cellulose to ethanol, and the National Renewable Energy Laboratory, which abandoned gasification/catalysis a long time ago, but kept the biological options open, is happy, sort of. I've talked to a couple of high level officials there who, off the record, tell me that they would prefer opening up the options to other biofuels, including back to gasification/catalysis, but USDOE headquarters is so infused with current politics, that NREL is prevented from expanding their activities. Internal discussions, however, have occurred, and the new president and the new USDOE might at least open a window.

The problem with the national policy is that the current Congress and Administration picked ethanol, and, first, they would lose a lot of face if they switched to another fuel, but also, all the language is in place for ethanol, and given these advantages, methanol cannot yet compete. I agree with you that Clinton/Obama will not shift away much from the current biofuels program, for they, too, have the same lobbyists working for them, or, who otherwise are influential because of campaign funding. This is all related to current investments (in ethanol plants) and importance for them to maintain a decent return on investment. Ethanol also seems to satisfy a sufficient majority for tackling the Peak Oil / Global Heating problem. Something is better than only fossil fuels.

The four reasons why I think methanol will eventually prevail are:

1. Methanol is a one carbon liquid biofuel, and plain common sense tells me that this is the optimal pathway because it should be cheaper to produce.

2. A couple of million dollar comprehensive analyses HNEI performed with Stone and Webster for the USDOE in the 80's were clear that, given biomass, methanol, is, indeed, the best option. How can you, then, not be convinced with gut feeling reinforced by reality?

3. Fuel cells. Methanol has a lower energy density than gasoline (and ethanol), but the fuel cell powered transport future levels the playing field, for fuel cells are more efficient than internal combustion engines, so, the miles travelled/storage volume remains about the same when you compare methanol with gasoline (and methanol is better than ethanol in this parametric comparison). Fortunately enough, the direct methanol fuel cell is soon to arrive, and some are even predicting that this device will soon replace batteries in portable electronics (iPods, computers, etc.) A larger DMFC is not here yet for autos, but, I would think it will just be a matter of time before breakthroughs occur. Why companies like BP went towards butanol is beyond my comprehension, for this fuel has even more carbon atoms, is more expensive to produce and won't ever be used with fuel cells. Methanol is the only biofuel capable of being used in fuel cells without an expensive reformer. There are doubts if ethanol will ever meet this test.

4. This I find hard to believe, but ONE GALLON OF METHANOL HAS MORE HYDROGEN THAN ONE GALLON OF LIQUID HYDROGEN. What does this mean? Well, the infrastructure, then, is already largely in place to handle a methanol economy. Hydrogen might someday become competitive, but that will be, at best, in the 2050 to 2100 time frame. Methanol is, indeed, the bridge to hydrogen, and only so mostly because of the eventual coming of hydrogen-powered aviation. A fuel cell plane, I read, has already been become reality, and if this alternative develops, that could doom a future for hydrogen. Thus, George Olah could well be right. There might never be a hydrogen age, because the methanol economy will never be replaced. But I guess we are getting ahead of ourselves.

What prevented progress in the past was an unfortunate PR problem, for methanol, because it served as the feedstock, got linked with MTBE, which is carcinogenic. Drinking methanol gives you a high, but also has a bad side-effect, blindness. Ethanol is my preferred drinking alcohol. Also, too, methanol was purposefully kept out of the national energy plan because there was a fear that, somehow, it would sneak in as produced from methane in the Middle East.

Ethanol has already, too, gotten a bad reputation because of the world food crisis, which we predicted ten years ago. The field is now shifting to fermenting the fiber. I saw an ad today in WIRED magazine touting the fact that it now only takes 10 hours to produce ethanol from some type of crop. Can you imagine the equipment, space and costs associated with such a facility? This one track mind for ethanol will only result in a second type of white elephant, the hydrolyzed/fermented cellulose facility, which will also sell electricity and, even, fertilizer. A few of these companies will succeed, of course, because the tax incentives exist, and methanol cannot compete unless also made eligible. But this is all so stupid because of eventual economics. Why can't effective decision-makers think like us?

Incidentally, there has been a sudden surge of interest in biofuels from algae. Certainly, as algae can be from two to ten times more efficient in converting sunlight into biomass than any terrestrial crop; grown in the ocean, there is no irrigation problem (and Peak Freshwater looms on the horizon); if fed the cold water effluent from the OTEC process there will not be a need fertilizers (those from oil); and with genetic engineering, who knows where this option can go--this has been my dream for a third of a century. However, I'm involved with a couple of efforts, and my current back of the envelope analysis indicates that the eventual cost of jet fuel or biodiesel or whatever will only be able to compete if oil rises beyond $200/barrel. At least one important microbial entrepreneur says $500/barrel might not be high enough. I have been promised an engineering study for my comment. So, like in ethanol, I'm worried that there will be a premature leap into commercial embarrassment. Yes, do the R&D, but, no, don't expect a magic solution within a decade. I'm euphoric about the rise of this option, but I've seen too many of these risky dreams in my time. Biomethanol is real and available.

So, what do we do? I still think our original strategic plan for biomethanol is functional, which is, to form a technical/fiscal/political consortium of credibility and competence. Gropower (I think we found a better name that took us away from electricity...I'll go search my files) would be this holding company to orchestrate three needs: insure for methanol incentives in a five years, arrange for R&D to fill the gaps and secure all the necessary patents. We probably won't see many financial rewards for a while, but our task would be accomplished if we can be bought out by an oil company or global entity. Our major purpose, too, that of getting the world away from ethanol to a more sensible biofuel, methanol, and in so doing, finding the right replacement for oil, will be attained. We can then go on to more challenges, like SIMPLE SOLUTIONS for life and death.

Aloha.

Pat

P.S. I'll enter this into my blog for today (while preserving your identity---thus XXXXs above) so that we can begin to gain interest from others who are equally concerned and might want to join in on our partnership. FOR THOSE OF YOU READING THIS, PLEASE COMMENT.

P.S., too: I did not mention much about how to gain any initial angel capital, but you are an expert in that field.