Resource Impact​

The technology we discuss in this project is years from implementation. There are still many limitations present such as a temperature range that does not degrade the catalyst. However, because the silica is not live, we expect from the regulatory standpoint, that the silica will have fewer restrictions.

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We thus briefly turn our attention to land availability and crop choice. These pictures were taken from Chris Somerville’s lectures.

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Industry Overview​

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This graphic from PikeResearch evaluates biofuels companies in terms of Execution and Strategy.

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The criteria for Execution are those companies that excel in:

• Market Share: company’s current share of production capacity

• Investment Portfolio: company’s overall investment in biofuels industry versus revenue

• Distribution Network: company’s efforts at establishing viable network to bring volume to market

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The criteria for Strategy include:

• Production Strategy and Roadmap: long-term competitiveness of company’s current production activities

• Partnerships: company’s active investments in integrated commercialization strategy

• Technical Innovation: commit to R&D, tech development

• Feedstock Sustainability: commitment to crops that do not affect feed or food production

• Geographic Reach: access to national and international markets

 

The graph indicates that both Shell and BP are the top contenders in these categories. However, the two companies have two different strategies. As simplified by a McKinsey study, Shell focuses on investing in companies that are further down their timeline – companies that are closer to market. BP on the other hand, focuses their strategy on technical innovations. A great example of this is the investment they put into EBI.

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The same McKinsey study identified uncertainties that lead to company decisions. Case in point: Minneasota mandate that by 2013, a 20 percent ethanol blend will take effect. Current vehicles can tolerate a blend rate of 10 percent, and flex fuel vehicles up to 85 percent. In the present time, though 2013 is not here yet, car companies must consider selling engines with different designs to accommodate these regulatory changes. This simplified example disrupts many supply chains.

This is why that although this silica technology is decades away from implementation, it is important to be familiar with technologies in the future. The expensive infrastructure of the industry will undergo significant changes in economic and technologic cycles and forecasts in future impact have a very intimate relationship with the technology that is being produced today, and the delicate balance of corporations, government, people, and ethics.