Drop-in fuels are any quantity of fuels that can be put into the appropriate fuel tanks and pipelines with no changes to the cars, planes, and other machines whatsoever. For that reason alone, they are worth their weight in gold!

18.5

Converting Feedstock into Fuels

Figure 18.1 indicates the steps that need to be taken to convert a certain feedstock into a second-generation biofuel. For instance, you can go from Jatropha to bio­diesel via a process called esterification or you can take woodchips and turn them into cellulosic ethanol with the help of enzymes that change the molecular settings of hydrocarbons. We are only at the beginning of these conversion technologies and in the coming 10 years many more technologies will be added. Those investors as "first movers” at the beginning of these fascinating new developments in clean energy will reap the greatest benefits.

Ethanol cannot replace diesel and aviation fuel, but appropriately designed drop — in fuels made out of sugar can.

There are great advantages on the production side of genetically engineered hydrocarbons. They could guarantee a consistent quality, thus perhaps com­manding a premium with no extra effort, and they can be manufactured anywhere in the world. In the near future these fuels will be able to reduce greenhouse gas emissions and make a lot of money for investors.

Biotechnology gives the prospects for this second generation of biofuels a plausibility that was missing from its predecessors. The companies producing drop-in fuels are starting to come out of the laboratory, float themselves on the stockmarket, are take-over candidates, or are teaming-up with oil companies and building their first factories. The chess game is on, positions are being taken, and the dice are rolling.

18.6