Hybrid crop key to fuel of the future

By LIAM DANN

Ethanol - the plant-based automotive fuel of the future - is already big business in the United States.

Petrol with up to 10 per cent ethanol blended into it is now widely sold in the US and Australia.

The US industry will produce more than 12 billion litres this year.

But production costs are high and it is heavily subsidised in the US because only part of the plant is used, says AgriGenesis chief executive Peter Lee.

"Ethanol crops like corn and sugar use just 15 to 20 per cent of the plant ... The challenge is to be able to use the rest."

With that in mind, AgriGenesis is developing a native New York shrub called bushy willow.

Using advanced hybrid technology - and possibly at some point genetic engineering - it plans to turn the plant into an ethanol-specific crop.

New York State has established a centre for renewable energy research and Governor George Pataki has recognised AgriGenesis as a biotechnology partner.

"So we are heavily involved in providing New York with the capability to produce ethanol," said Lee.

The plan is to increase the plant's yield, then enhance its structure to make the removal of cellulose easier for ethanol production and then develop technology to turn the left-over lignin portion of the plant into biodegradable plastics.

Lee said willow was a fast-growing shrub.

"You can run a combine harvester over it, the roots stay in the ground and it grows right back."

He said it loved nitrogen and could one day be a good crop alternative for New Zealand farmers struggling with nitrate levels in their soil.

AgriGenesis will seek partners to handle things like engineering and building pilot plants and factories - meaning it will be talking to petroleum companies, energy companies and car companies.

Lee said plans to get development under way in Australia were also well advanced.

He hoped the announcement of a collaboration with major Australian ethanol producers was not far away.