Shell buys half of cellulosic ethanol co.; makes significant technology investment

[HoosierRon]

Shell and Iogen announce extended alliance to accelerate a next generation biofuel

Royal Dutch Shell plc and its subsidiaries (“Shell”) and Iogen Corporation today announced an extended commercial alliance to accelerate development and deployment of cellulosic ethanol.

The terms of the agreement include a significant investment by Shell in technology development with Iogen Energy Corporation, a jointly owned development company dedicated to advancing cellulosic ethanol. The arrangement will also see Shell increasing its shareholding in Iogen Energy Corporation from 26.3% to 50%. Shell first took an equity stake in 2002.

...

Iogen’s first demonstration commercial plant opened in Ottawa in 2004. Shell is considering investing in a full-scale commercial cellulosic ethanol plant and is contributing to Iogen’s detailed feasibility and design assessment work.

[igotzzoom]

You can say what you want about "Big Oil" but at least it seems like Shell can see past the end of its nose, and the next quarter's results. ExxonMobil looks like it's headed toward being a relic in the history books shortly. And its latest greenwashing campaign? C'mon. Who does it think it's kidding?

[Ed Arcuri]

. . . and I still can't buy a flex fuel Solstice. . . .
Cheers.
Ed Arcuri

[logansowner]

The trouble with oil companies getting in on this is that we are going to be in the exact same position with bio fuel as we are with oil today.


You think Shell is going to keep all there bio fuel in America because that would be the nice thing to do? It's going to be divvied up around the world like oil is today and were all going to still pay $5/gallon for it. They are still going to make less than they can sell to keep demand high, then it will be on commodity markets and be artificially over priced that way too.

Wait till China sells us their scrap wood to turn into ethanol cheaper than people will sell it here... so much for domestic fuel.


Only hope is that because it doesn't involve pumping oil from the ground, many more small companies could get involved, which might help give a big FU to big oil.

[camaro_freak]

Originally Posted by logansowner

The trouble with oil companies getting in on this is that we are going to be in the exact same position with bio fuel as we are with oil today.


You think Shell is going to keep all there bio fuel in America because that would be the nice thing to do? It's going to be divvied up around the world like oil is today and were all going to still pay $5/gallon for it. They are still going to make less than they can sell to keep demand high, then it will be on commodity markets and be artificially over priced that way too.

Wait till China sells us their scrap wood to turn into ethanol cheaper than people will sell it here... so much for domestic fuel.


Only hope is that because it doesn't involve pumping oil from the ground, many more small companies could get involved, which might help give a big FU to big oil.

exactly... BIG oil needs to be kept OUT of the alternative fuel busniess... We'll just be trading one headache for another....

[zabolots]

Originally Posted by camaro_freak

BIG oil needs to be kept OUT of the alternative fuel busniess...

Unfortunately they are the only ones that have the available $$ to invest in these types of new technology. The federal government is broke.

[logansowner]

Originally Posted by zabolots

Unfortunately they are the only ones that have the available $$ to invest in these types of new technology. The federal government is broke.

This is unfortunately true, but if we don't find another way, we just continue the cycle and make oil companies even richer.

See, right now what we have is not a case of capitalism. Capitalism is Walmart and Target competing for business by trying to have lower prices. What we have here is a case of monopoly in that every company is conspiring together to raise prices. Somehow we need to find a way to stop that.

[DemonKnightDK]

I'd like to seem local sized operations, supplying local areas. maybe a plant making 50-90K gallons a month and selling it from their own plant to the people. (and other gas-stations.) kinda like a chain store.

On second though, I dont know how well that would work after all..

[hotrod1949]

This is the same company that stopped worked on a new oil refinery in Sarnia,ON because it wasn't viable, interesting.

[CaptainDan]

Originally Posted by logansowner

The trouble with oil companies getting in on this is that we are going to be in the exact same position with bio fuel as we are with oil today.


You think Shell is going to keep all there bio fuel in America because that would be the nice thing to do? It's going to be divvied up around the world like oil is today and were all going to still pay $5/gallon for it. They are still going to make less than they can sell to keep demand high, then it will be on commodity markets and be artificially over priced that way too.

Wait till China sells us their scrap wood to turn into ethanol cheaper than people will sell it here... so much for domestic fuel.


Only hope is that because it doesn't involve pumping oil from the ground, many more small companies could get involved, which might help give a big FU to big oil.

The scrap wood, and other garbage fuel sources, aren't going to be "divvied up" around the world like oil is. And I'm pretty sure that the oil companies didn't get to choose where the oil IS divvied up to (nor would they choose it as it is). Fortunately, most of the biggest garbage producers, are also the biggest fuel users, so it balances out pretty well in that respect. And if Shell, or any other company, tries to drive up the base price of a barrel of garbage juice, than some one else can always step in and underbid them.

That doesn't happen too much with oil, which is in only a few places, costs tons to pump it, and all of it is already owned by somebody.