Alternative biofuel, called furfural, made from bagasse, gaining traction as diesel substitute

An alternative biofuel, called furfural, is gaining new levels of attention because, like cellulosic ethanol, it is produced from waste biomass such as sugar cane bagasse. After pressing cane for sugar, furfural is produced by steam distillation; it has been produced since the 1920s on a commercial basis and imports for $2.24 per gallon. Avantium has successfully tested furfural as a diesel substitute. Avantium branded its furfural-based biofuel as Furanics, and tests showed a significant reduction in soot emisions and and elimination of sulphur emissions, when compared to conventional diesel.

Avantium, a research and development company spun off from Royal Dutch Shell in 2000, cancelled its IPO earlier this year owing to adverse market conditions. Avantium provides R&D services to companies such as BP, Royal Dutch Shell, Sasol, and Pfizer, including research on next-generation biofuels.

Avantium announced only last month that it would pursue an IPO after the completion of a successful proof-on-concept engine test for a new proprietary biofuel, and the extension of its strategic research partnership with BP. BP also has strategic biofuels partnerships with D1 Oils relating to African jatropha development, and with DuPont relating to second-generation butanol production.

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