Cobalt signs MoU with Rhodia for n-butanol development

Bio-based chemicals developer Cobalt Technologies has signed a memorandum of understanding with chemical company Rhodia to build n-butanol refineries throughout Latin America.

‘We’re planning for the first plant to produce 40,000 metric tonnes of butanol per year,’ Steve Shevick, CFO of Cobalt Technologies, tells Biofuels International.

The technology will convert sugar cane bagasse into the renewable fuel and will begin with using the existing Rhodia co-generation facility at a sugar mill in Paraiso.

For future expansion, and following the potential success of the proposed demonstration plant, the two parties plan to build numerous bio-refineries co-located with sugar mills, first in Brazil and then other surrounding countries.

‘We’ll do as many that make economic sense.  Clearly, with Rhodia’s size and sustainability agenda they have the resources and commitment to do multiple plants,’ Shevick says. ‘We expect to complete the first commercial plant by the end of 2014. We will have a local demonstration facility in 2012 – size and scope are to be determined over the next several months.’

Rhodia is a major consumer of n-butanol in Brazil and may be the buyer for some or all of the offtake.

Initially, the companies plan to sell the fuel to the local market and then when capacity grows, the business plan is to look at opportunities to make derivative products or to export. 

Shevick explains why Cobalt chose n-butanol as the renewable fuel to produce: ‘N-butanol has major advantages as a fuel over ethanol, including higher energy density – 90% of the energy of petrol rather than 70%. It also has lower vapor pressure, which means less pollution than ethanol; and it is fully compatible with the current fuel infrastructure so it can be shipped and stored just like petrol and doesn’t need any special handling.’

Although n-butanol has the same octane as regular petrol, it is lower than ethanol although ‘still acceptable’.

All the sugar cane will be planted near to the sugar mills because otherwise transportation of the harvest would be too expensive. ‘The best way to use bagasse is to co-locate and integrate with an existing mill.  Cobalt’s process is designed to integrate with the infrastructure that already exists,’ says Shevick.

The construction of the biorefinery is anticipated to create jobs in the local area. ‘We’ll hire people to work at the plant, to handle bagasse, to deliver supplies, to market and transport butanol and to manage the facility,’ says Shevick.

Cobalt is also involved in a joint venture with the US navy to develop n-butanol into jet fuel and is currently seeking fuel certification.