Süd-Chemie to build Germany´s largest plant for the biotechnological production of biofuels from straw

Munich, 21 July 2010. Sustainable project to be subsidised by Bavarian State Government and BMBF.

Süd-Chemie AG, one of the world´s leading specialty chemical companies for catalysts and adsorbents based in Munich is to build Germany´s largest plant to date for the production of climate-friendly, second-generation bioethanol, so-called cellulose ethanol, based on biotechnological processes.

The total project has a volume of altogether €28 million and comprises an investment volume of some €16 million and accompanying research projects amounting to approximately €12 million. These and additional related research projects will be subsidised by the Bavarian State Government and Germany’s Federal Ministry of Education and Research (BMBF) with approximately €5 million respectively.

As from the end of 2011, this large-scale demonstration plant, located in the immediate vicinity of the new Bavarian BioCampus in Straubing, will produce up to 2,000 tons of bioethanol fuel from agricultural waste, such as cereal straw.

"By launching construction of this demonstration plant for our so-called sunliquid® technology, we continue to pursue our strategy of developing to market maturity sustainable manufacturing processes for climate-friendly biofuels and chemicals, based on leading expertise in the fields of catalysis, biocatalysis and process engineering. In view of the increasing expense and risks involved in excavating oil, we are making a significant contribution to providing a sustainable substitute for oil-based products," said Süd-Chemie AG´s Managing Board Chairman, Dr. Günter von Au.

"Compared with the first-generation biofuels already in use today, for instance biodiesel, which consist of fuel extracted from plant material containing oil and starch, second-generation biofuels like cellulose ethanol offer considerable advantages. Firstly, they have much better climate and energy balances, since their potential for reducing CO2 emission is, for instance, significantly higher. Munich, 21 July 2010. Secondly, they do not compete with the cultivation of either food or animal feed," continued Dr. von Au.

The sunliquid® process, which Süd-Chemie has been testing in a pilot plant since the beginning of 2009, is an innovative method of producing second-generation bioethanol in a cost-effective and energy-efficient manner. To this end, cellulose-based plant residue, such as wheat straw or maize straw, bagasse from sugar cane or so-called energy crops, are initially converted into sugar constituents with the aid of enzymes generated using biotechnology. Bioethanol is subsequently extracted from these constituents and used as fuel. In the case of Süd-Chemie´s process, not only the cellulose contained in plants, but also the so-called hemicellulose can be converted into ethanol, making it possible to increase ethanol production by up to fifty percent compared with conventional technology. Furthermore, the enzymes needed to convert the cellulose can be optimised depending on the original raw materials used and produced directly on the spot in each production plant. This guarantees an optimal enzyme supply, being both highly efficient and cost-effective.

Süd-Chemie´s demonstration plant located in Straubing will represent a scaled-down version of the entire integrated manufacturing process required to convert cellulosic plant residue into bioethanol.

About Süd-Chemie
Süd-Chemie (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE 0007292005; WKN: 729200) specialty chemicals company headquartered in Munich, Germany and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer goods, packaging and foundry industries, as well as water treatment. Products manufactured by the Catalysts Division offer solutions for the chemical, petrochemical and refinery industries, for energy storage and hydrogen production, as well as off-gas purification. The common denominator of all Süd-Chemie products and services is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. The Süd-Chemie Group generated sales of approx. EUR 1.1 billion in 2009, about 85% of these outside Germany. At the end of December 2009, the group employed some 6,500 people in more than 80 sales and production companies worldwide.

About second-generation biofuels
Today´s already widely-marketed first-generation biofuels are produced solely from plant matter containing either oil, starch or sugar, for instance biodiesel made from rapeseed oil or bioethanol made from starch or sugar. In the case of second-generation biofuels, however, no starch or oil-bearing parts of plants are used, but only cellulose-based residue. In this way, more fuel is obtained as a result of the higher energetic yield. Furthermore, this fuel does not compete with food or animal feed, since those parts of the plants containing starch, for instance maize kernels, can still be used to produce food. Second-generation biofuels are also more climate-friendly than fossil fuels, such as oil or natural gas, since during their growth, plants absorb exactly the same amount of climate gas, namely carbon dioxide, from the atmosphere as is subsequently emitted when they are used for engine combustion. The introduction of climate-friendly second-generation biofuels is supported by the legislative framework prevailing in both the US and the EU. In the US, a law passed at the end of 2007 stipulates that by 2022, approximately 15 percent of the country´s annual gasoline consumption is to be replaced by biofuels, almost 60 percent of this being based on lignocellulosic residues. The Renewable Energy Directive passed by the EU Parliament in December 2008 requires that by 2020, renewable sources of energy must account for at least 10 percent of the fuel used to transport goods and passengers. The annual volumes of surplus cereal straw currently available in the EU would produce more than enough second-generation bioethanol to meet the EU´s 10-percent substitution goal.

Süd-Chemie AG
Lenbachplatz 6
80333 München
Corporate Communications
Patrick Salchow, Jochen Orlowski
Ph.: +49-(0)89-5110-250, -247
jochen.orlowski@sud-chemie.com
www.sud-chemie.com

This release was published on openPR.