Novozymes: New enzyme cuts cost of next-gen biofuelsthe advanced biofuels industry has failed so far to ramp up beyond pilot and demonstration projects. Financing has been a problem for startups trying to build commercial-scale facilities. But the primary hurdle for the industry has been reducing production and feedstock costs enough to make their product competitive with corn-based ethanol and ultimately fossil fuels. Industrial enzyme maker  Novozymes said this week it has developed a super-efficient enzyme that could help biofuel producers reach that elusive commercially viable goal. The so-called Cellic CTEC3 enzyme--like other enzymes on the market--is used to break down biomass pulp--from corn husks wheat straw, switchgrass and other nonfood crops--into sugar which can then be fermented into fuels, feed and chemicals. Traditionally, advanced biofuel producers have to use large amounts of expensive enzymes to get the desired end result. Novozymes says its new enzyme has a better biomass-to-ethanol conversion rate and biofuel producers need only one-fifth of the enzyme dose compared to its competitors, including main rival  Dupont's Genencor unit.   This efficiency improvement is enough to bring the cost of cellulosic ethanol in line with gasoline and corn-based ethanol. A Novozymes spokeswoman told me the enzyme could bring cellulosic ethanol costs down to $2 to $2. 50 a gallon for its biofuel customers. The advanced biofuels industry has to find ways to cuts costs if it ever hopes to scale up commercially and meet federal mandates.  Cellulosic ethanol production was supposed to hit 500 million gallons in 2012. Instead, production will be closer to 8. 65 million gallons or 0. 006 percent far short of production volume mandated by Congress, according to figures released in December by  the  Environmental protection agency.  It s likely that even the 8. 65 million production target won t be met this year.  As of October,  not a single gallon of qualifying cellulosic ethanol was produced according to the EPA. Novozymes has agreements to supply the new enzyme to U s. producer  Poet for its cellulosic ethanol Project Liberty facility and to  M&g Group for its Crescentino, Italy plant, which is expected to open this year.  Fiberight is expected to use the enzyme to produce 6 million gallons per year at its  Blairstown, Iowa plant, slated to open next year. Check out the map provided by Novozymes below to see what cellulosic ethanol plants  are expected to come online this year and in 2013. The map  includes plants that are not using the company's new enzyme. Photo:  Novozymes Related: USDA bets (again) on advanced biofuels Poet's cellulosic ethanol strategy: Dump fed loan, partner with DSM Bioengineering e coli to turn seaweed into fuel Next-gen biofuels in 2012: Another mandate missed (and by a lot
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