Green Biologics (GBL), a UK biofuels developer, has raised £1.58 million ($3.16 million) from a funding round involving existing shareholders as well as new investors, Carbon Trust Investments and Oxford Capital Partners who led the investment round. GBL is developing Butafuel™, which says the company is a superior and more sustainable liquid biofuel for transportation. The company's Butafuel is based on butanol.

GBL is ‘recommercialising’ the bio-butanol fermentation process and has, it says, developed novel microbes and advanced high temperature fermentation processes. In addition, the company targets waste feedstocks for fermentation from agricultural and industrial processes, such as paper and pulp, sugar processing, biodiesel production and food waste. By optimising the fermentation process, and using cheaper waste feedstocks, GBL aims to achieve a two to three fold reduction in cost.

Green Biologics will use part of the new funding for a scaled-up, pilot demonstration of its proprietary fermentation process for bio-butanol on a range of model waste feedstocks in its extended laboratory facilities.

Dr Edward Green, Founder and Chief Executive Officer, of Green Biologics said: “We are delighted to have secured the new investment we need to scale up our butanol fermentation process. It is great to have the support of our existing shareholders and we welcome Carbon Trust Investments Limited and Oxford Capital Partners on board as new investors.

“First generation” biofuels such as bio-ethanol and biodiesel have their limitations. These biofuels do not fit neatly into the existing fuel infrastructure and there are some concerns over their sustainability and longer term environmental impact. However, they are a good start and pave the way for “second generation” biofuels, such as butanol, which is a better fuel offering greater sustainability and environmental benefits. We believe that our Butafuel product will supersede “first generation” biofuels within five to ten years as a fuel extender and it ultimately has the potential to completely replace fossil fuels for road and air transport.”

Dr Green concluded: “The fuel and chemical markets are ready for the re-introduction of butanol using our new fermentation techniques that both enable cost-effective production and avoid adverse environmental impact. We are attracting a network of potential partners who are interested in working with us to take forward the production of Butafuel™ as a viable alternative to petrochemicals and “first generation” biofuels.

“We envisage our Butafuel production units being fitted alongside plant sources, such as paper mills and sugar production facilities, so that we are located right next to the suppliers of waste materials. Plants with existing ethanol units could also be retro-fitted for butanol production. Longer term, the company is committed towards the development of bio-refineries for the production of a range of biofuel and biochemicals from waste and a full range of cellulosic feedstocks.”