OBC Advantages

Cellulosic biomass or waste derived ethanol is equivalent to 2.5x the value of grain based ethanol in meeting the Renewable Fuels Standard. Enzymatic Hydrolysis process shows the greatest cost reduction primarily in reduced enzyme and chemical cost. Abundant and varied feedstock allows for price stability not available in grain-based ethanol production. Notice that there is not even one grain ethanol plant in Oklahoma or Arkansas. Clearly this marks another competitive advantage for OBC and the team it has compiled to execute this plan.

The Ethanol Industry

According to the Renewable Fuels Association, the United States is embarking on a new era in US energy policy with the enactment of the Energy Independence and Security Act of 2007. This historic legislation calls for increased automobile efficiency and greater renewable fuel use, steps that will have an immediate impact toward securing a more sustainable energy and environmental future. The law increases the Renewable Fuels Standard (RFS) to 36 billion gallons of annual renewable fuel use by 2022. And by requiring that nearly 60 percent of the new RFS be met by advanced biofuels, including cellulosic ethanol, it paves the way for commercialization of these vital next generation ethanol technologies.

Clearly, this legislation will change the way we fuel our country. Importantly, it is also changing our environmental footprint from transportation fuels. The increased production and use of renewable fuels, particularly from cellulose feedstocks, will dramatically alter our environmental landscape, utilizing sustainable supplies of biomass while reducing fossil fuel use and harmful greenhouse gas emissions.

Moving forward in 2009, an estimated 1.8 billion gallons of grain ethanol production capacity will come online from 21 biorefineries under construction or expanding. Once all of the new construction currently underway is complete, the U.S. ethanol industry will be able to supply more than 13 billion gallons of ethanol, representing only 10% of the nation’s gasoline demand.

A Climate for Growth

The tremendous growth in the U.S. ethanol industry is driving an exciting in the evolution of the industry itself. Grain-based ethanol production has begun in non-traditional location like Oregon, Arizona and upstate New York. Cellulosic ethanol has begun receiving governmental support and various technologies are being employed in pilot and demonstration scale projects. OBC's technology is commercial scale ready.

As this industry continues to evolve, new technologies, improved efficiencies, and an increasingly green footprint will ensure ethanol takes its place as a critical component of our nation’s strategy for a more stable and secure energy future.

Notice there are no biorefineries located in Arkansas or Oklahoma. Clearly this marks another competitive advantage for OBC and the team it has compiled to execute this plan.