St. Louis lands over $100 million in biofuels funding
St. Louis Business Journal
July 23, 2010
Biofuels is big business.
Last year, investments in biofuels companies or in the global biofuels sector totaled $8.7 billion, according to Biofuels Digest, an industry publication.
In St. Louis, local institutions have received more than $100 million in investments and grants over the past three years to develop renewable fuels.
As money continues to pour into biofuels research and development, St. Louis stands to benefit.
"Studies show that biofuels will be the No. 1 generator of jobs in alternative fuels, and the national number of jobs tied to biofuels is about 300,000 in the short to medium terms," said Sam Fiorello, chief operating officer at the Donald Danforth Plant Science Center in Creve Coeur. "If St. Louis is a significant player in that, we could have a significant subset of those jobs."
Although the biofuels industry is years away from supporting tens of thousands of jobs here, a number of organizations and several hundred employees already are working in the field.
With its network of scientists and proximity to biofuels ingredients, such as corn and livestock byproducts, St. Louis is an ideal hub for renewable fuels.
Tim Kostecki, operations manager for Center Ethanol Co. in Sauget, Ill., said the alternative fuel producer chose to locate in the area because of its access to transportation and corn.
Center Ethanol, led by President Barry Frazier, operates a plant with a 54 million-gallon capacity and employs about 50 people, according to Kostecki.
At the Danforth Center, 210 people, including 150 scientists, are working to develop alternative fuels for airplanes and hybrid automobiles to help reduce worldwide greenhouse gas emissions and provide a lower-cost alternative to petroleum. In 2007, the Taylor family gave $25 million to establish the Enterprise Rent-A-Car Institute for Renewable Fuels, where Danforth Center scientists conduct algae research.
Last April, the Danforth Plant Science Center also received algae project funding in the form of a $15 million grant from the U.S. Department of Energy. Biofuels scientist Richard Sayre, a former academic at Ohio State University's Department of Plant Cellular and Molecular Biology, is leading the algae research at the center.
In Metro East, partners Terry Zintel and Andy Sprague employ 10 people at Midwest Biodiesel Products, their Caseyville, Ill.-based alternative fuel producer. Zintel said Midwest would employ about 25 people at peak production.
Midwest Biodiesel operates in an $8 million, 12,000-square-foot facility on 11 acres in South Roxana, Ill.
"We believe the biodiesel industry has a very strong, prominent future in the fuel industry," Zintel said. "Because of its net positive energy gain, it can offset gallon-for-gallon foreign crude oil imports, reduce pollution by two-thirds and it's a product that can be used in any diesel engine."
The company has the capacity to produce 12 million gallons of fuel annually, Zintel said, with plans to build another line capable of producing 24 million gallons next year.
Zintel said the company uses corn and animal byproducts to produce biodiesel. It sells its product to about 25 or 30 wholesale customers in the Midwest, who then sell the biodiesel to consumers ranging from Lambert-St. Louis International Airport to independent farmers.
Not only does biofuels funding spur jobs, it also validates the region's status as a hotbed for smart-money research, according to the Fiorello.
Washington University, for example, has attracted more than $30 million in grants for algae research, although only a portion of that amount is focused on algae as a biofuel. Last summer, the U.S. Department of Energy awarded the university a $20 million grant to establish the Photosynthetic Antenna Research Center (PARC), which researches light harvesting and energy funneling in bacteria and plants, including algae.
