In the recent scientific study, the international group of scientists found a system of extracellular enzymes that occurs uniquely in the rot fungus species. This particular enzyme is believed to be a potential ingredient in the production of more cost-effective biofuels.

To be more specific, this particular enzyme system, according to the analysis, can work around the polymer lignin structures of the plant matter. Brown rot has the ability to effectively unbind, breakdown and ferment the sugar units in the plant matter.

In other words, with the help of brown rot, wood can be harnessed as distilled, liquid biofuel in the future.

Not a lot of organisms can breakdown the plant’s lignin into manageable chemical units for biofuel production. The lignin is part of the plant’s protective system that shields it from pests. One of the exceptions is the basidiommycete fungi, wood decayers that include white and brown rot.

Before this study, brown rot was considered a “pest” in the US timber industry, wreaking havoc on an economically significant number of timbers every year.

This recent study was conducted by no less than 50 authors from the US Department of Energy’s (DOE) Joint Genome Institute (JGI), the US Department of Agriculture Forest Service, and the Forest Products Laboratory (FPL).

It was earlier reported on the online issue of Proceedings of the National Academy of Sciences (PNAS) last February 4, 2009.

The estimate price has a 30% margin which will translate into a price between US$2.72 and $5.03 per gallon. The estimate price basing on a $100/ bbl of crude oil is $2.72/gallon before taxes.

Bioliq consists of three processes involving fast pyrolysis facility, a centralized gasification plant, and a fuel production factory.

Starting from a biomass, the raw material is pyrolyzed and converted into pyrolisis oil. This pyrolysis ou is processed with coke to create a raw biocrude which can be made into syngas or converted to other fuels components.

The core of the process involves a especially designed gasifier that operates on extreme pressure that helps in controlling the need and costs for syngas compression. This simplifies the process of syngas production since the process produces a raw material that is almost free of tar and CH4.

Feedstock flexibility is also improved with the design of the distributed FP. This will give way to large delivery areas and considerable decrease in the cost of transport.

Researchers though note that the complex technology may only be cost effective if done in large scale facilities. They also foresee the combination of the current synthetic fuels derived from natural gas and coal to be combined with the production of biosynfuel in very large facilities which will prove to be more economical.

To date, China is the second-biggest corn producer globally, next to the US. The US Department of Agriculture projects a 16.5 million metric tons produce from China this year. That amounts to at least 20.9% of the worlds total corn production.

The US, on the other hand, produces an average of 307.39 million tons of corn every year. This makes up for about 38.9% of the world’s total corn production.

China is also a big corn consumer overall: 72% of the country’s produce is used as feed; 20% as ingredients for biofuel, starch and sugar; and 1% are sold as food. The remaining 7% is either used as seed to replenish supply, or is amounted to harvest loss.

Novozymes, as a leader in technology, sees vast potential in China’s bioethanol production. They hope to be the first company to be prepared for large-scale production by 2010. The company has been associated with the development of conversion processes and advanced enzymes necessary for churning agricultural waste to second-generation bioethanol.

COFCO, on the other hand, is the leading producer and supplier of processed agricultural products in China.

With the two company’s partnership with Sinopec, the third-largest oil refiner in the world, this large-scale bioethanol production should be possible. Sinopec holds 60% of China’s refined-oil market.