Synopsis of Pyramid's Approach

Pyramid BioEnergy was formed to develop ethanol facilities using a proprietary thermochemical gasification/catalyst technology in conjunction with a long-term supply of inexpensive biomass feedstock to become the lowest-cost ethanol producer in North America. 

Shortcomings of Current Approaches

To understand the deep significance of this strategic choice of approach and technology, one has only to to look at current headlines. Prior to the advent of the thermochemical techniques selected by Pyramid, the principal method of producing alcohols from biomass was by fermentation. Fermentation, sometimes augmented by acid hydrolysis, is a centuries old technique which seeks to convert the sugars in biomass to alcohol through the action of a biological agent. As more and more capital has flowed into fermentation based projects they have come under increased scrutiny. It has led to externalities and unintended consequences like, among other things, escalating food and other prices resulting from competition for valuable dual use feedstocks like corn and sugarcane. The following chart summarizes the comparative advantage of Pyramid's technology in terms of product yield.

Similarly, there has long been a debate raging regarding the actual fully loaded costs both economically and environmentally of producing alcohols. The consensus of informed opinion is that producing ethanol by fermentation costs between $.80 and $1.20 per gallon. Also, recent studies suggest that producing ethanol using fermentation produces greater carbon emissions than producing it from fossil fuels. (See, also.)

The Pyramid Approach:

By way of contrast, Pyramid's cutting edge thermochemical technology will dramatically reduce our country’s dependency on foreign oil by producing ethanol from renewable energy sources at half the cost of all current domestic fermentation based producers.  More importantly, because it is not based on sugar conversion but carbon conversion, it makes it practical to utilize a much broader range of feedstocks low sugar, carbononaceous feedstocks like ligno cellulosic biomass, wood waste, yard waste, MSW or garbage, construction debris, treated sewage or "sewer sludge", and the like. It is worth noting that many of these materials have low or negative value and are unlikely to create the kind of market distortions like those created by the competition for corn feedstocks.

Our “Cleantech” enterprise is poised to upset current ethanol production technology by utilizing low or negative value biomass feedstocks to revolutionize the transportation fuel industry delivering the lowest cost ethanol in North America. Pyramid BioEnergy is party to related technology patents and we are currently acquiring additional related technology licenses for ethanol production.

The following chart summarizes Pyramid's expected cost advantage over competing processes and technologies.

Domestic Market

The national gasoline consumption last year was 138 billion gallons.  This requires 13.8 billion gallons of ethanol annually to make E10 fuel.  Current and announced ethanol production through 2008 is 13.4 billion gallons and is short meeting E10 levels.  E85 fuel would require 152 billion gallons of ethanol (as substitution at this level will require additional fuel due to the lower energy density of ethanol compared to gasoline).

Currently, the predominant production methods (dry milling and wet milling) are very similar to distilling alcoholic spirits from grain, typically corn (known as fermentation).  They essentially convert the sugars in certain biomass feedstock (sometimes augmented by acid hydrolysis) into alcohol.  This production method is capital and energy intensive and most studies conclude that the cost of manufacturing ranges from $0.85 to $1.25 per gallon.  On the other hand, cost of producing a gallon of ethanol with the proprietary catalytic ethanol reactor Pyramid BioEnergywill use, is expected to range from $0.45 to $0.65 per gallon. 

Pyramid BioEnergy has identified the fundamental steps needed to construct and operate a successful low cost ethanol plant.  The plant will be strategically located and will have an adequate supply of feedstock.  The plant will be competitive because of its cutting edge technology and abundant, inexpensive feedstock.  This is accomplished independent of favorable state and local government incentives.  This project’s break-even point as an alternative fuel is equivalent to $30 a barrel crude oil.

For updated and additional information, please consult our "News and Additional Information" page.