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terry hallinan

03/29/14 5:25 PM

#837 RE: trader_long #836

Hi, Trader Long.


The news that KIOR (backed by Bill Gates and Vinod Khosla) may file for bankruptcy is certainly not good for future investments into cellulosic ethanol projects.



KIOR is far more than a cellulosic ethanol company.

KiOR is a next-generation renewable fuels company that has developed a proprietary technology platform to convert biomass into renewable crude oil that is processed into gasoline, diesel and fuel oil blendstocks. The company built the first commercial scale cellulosic fuel facility in Columbus, MS, which started production in 2012



KIOR is one of a group of drop-in fuel companies that never had any intention of being a cellulose ethanol company. Some are still going full steam ahead with their development. Drop-in fuels are fuels that could replace petroleum fuels with, at most, minor modification to engines.

In the past, BFRE claimed it could make a minor modification to its factories to produce butanol rather than ethanol with all its problems. Butanol must have been overhyped as a fully adequate gasoline substitute with a slightly lower energy density since now one of the biggies is promoting a 50% blend with gasoline. BP was one of the most mentioned pushers of biobutanol.

IMHO the misfortunes of KIOR have nothing at all to do with those of BFRE.

Best, Terry