January 1, 2025
The transition into our new lab this past year has been transformative. This space has become a cornerstone of the Alder Renewables innovation engine, enabling new opportunities to accelerate our technology development, create novel intellectual property, and foster new and existing partnerships.
Building a Home
The lab has not only accelerated our ability to increase our core technology readiness level, but it has also empowered our team to advance new R&D efforts while strengthening our innovation culture. Working together in a common lab, office, and meeting space has enabled technical deep dives and the spontaneous brainstorming sessions required for innovation.
Importantly, we've established key technical capabilities in our new lab, including bench- and pilot-scale equipment for process optimization. Additionally, we've integrated state-of-the-art analytical instruments that provide real-time feedback and ensure quality control across all of our workstreams. Most critically, we have a home. In 2025, we are excited to host more partners, potential investors, future customers, and visitors to see how the Alder Renewables technology works in practice. These tours often include outfitting visitors with the proper safety gear and inviting them to participate in hands-on lab experiments. Yes, we are channeling the spirit of Bill Nye the Science Guy.
Where We're Going
Over the past year, we leveraged our new lab to deliver meaningful outcomes that advance our technology towards commercialization and generate new intellectual property – essential milestones for a startup.
One key achievement this year was the development of a new test method and specification for Alder Renewable Crude and other biocrude products produced by our Technical Team. Dedicated biocrude test methods are vital for ensuring quality control and consistent performance in renewable fuel production. They also allow us to assess the impact of new biomass feedstocks at every stage of processing.
Additionally, we've made significant progress on our U.S. Department of Energy-supported work to explore the decarbonization potential of the energy grass miscanthus. This summer, we completed a 100-hour continuous pilot test at the gallon-per-day scale, utilizing our lab's advanced capabilities and in-house equipment. Looking ahead to 2025, we plan to scale our operations to barrel-quantity processing and produce carbon-negative sustainable aviation fuel (SAF) in-house using this promising regenerative agriculture feedstock.
Lastly, we had the privilege to host research interns from the nearby University of Colorado Boulder and continue our collaboration with the National Renewable Energy Laboratory (NREL) in Golden, Colorado. Engaging with the vibrant research institutions and CleanTech community has been an exciting part of our journey – one we look forward to building on in the new year.
Energized By Our Mission
A lot has been written about technology that's focused on decarbonization in 2024 and the political, economic, and cultural headwinds these companies may face to reach meaningful scale. In general, at Alder Renewables, we ignore the noise. We keep our heads down, we stay focused on the mission, and we build – step by step. As we close 2024, we are undoubtedly tired, but also grateful to have the opportunity to focus on this critical work and to help refiners – and the industries they empower – to decarbonize their operations. 2025 will be a defining year for Alder Renewables and we'll be back with the same grit, determination, and optimism we had this year. Happy New Year to you all. Onwards.
November 20, 2024
Last week at the ERTC event in Estoril, Portugal, Alder Renewables connected with old friends and partners while meeting some new ones, too. ERTC is the premier annual conference for European refiners, and a great event for learning about energy transition activities and new technologies for decarbonization. Our goal was to better understand the industry's needs for low carbon transport fuels and continue to educate key audiences about our biomass-based pathway to sustainable fuels and biochemicals.
Economic and political changes are positioning the EU to become the world leader in the clean energy transition. While existing regulatory programs are a great start, a strict long-term focus will be required to meet mandates beyond 2030. Unfortunately, project development momentum has slowed and investment decisions are delayed. This is particularly acute in e-fuel projects as long-term competitiveness is brought into question with estimated fuel production costs above €5,000/MT (McKinsey).
Stateside, political turbulence and unpredictability will settle, but for now we await clarity on the path ahead from the incoming administration. While we wait, consistency and clarity are moving the market forward in the EU despite the macro conversation on the bloc's long-term economic resiliency.
With SAF mandates beginning in 2025, refiners seem comfortable that existing plans for dedicated HEFA production and co-processing can meet ReFuelEU SAF targets. However, deployment of next stage technologies to meet steadily increasing production requirements in 2030 and beyond are less clear. During the Biofuels Roundtable at ERTC, refiners, like Repsol, Galp, and Versalis, commented that higher expected fuel costs combined with technology readiness challenges are slowing decision making.
Further clouding the issue is the fact that project development activity and timelines are typically five years minimum. Making large investment decisions is a challenge because policy and regulatory changes can often occur during that timeframe. Refiners seem focused on strategic plans that use existing infrastructure to be in a strong position to win. Sustainable processes that utilize local resources, such as biomass and circular plastics, will have a competitive advantage over companies that import feedstocks.
Even though the US market has strong incentives for SAF delivered through the IRA, a structured mandate program in the EU will likely increase SAF exports from the US to the bloc. To encourage US-produced SAF to be consumed on home soil, only minor changes to policy are necessary.
First, by adding simple language to the IRA regarding repayment of the 45Z Clean Fuels Production Credit for any SAF exported, we can harness the fuel's decarbonization impacts at home. This concept is similar to the obligation for exporters to retire the RIN credit when transporting ethanol or biodiesel outside the country. Second, the structure of the Department of Energy and Department of Agriculture's grant and debt financial support processes can require more than 50% of annual SAF production to be consumed within the US market. These straightforward changes would dramatically accelerate production nationally. We don't suffer from a demand side issue; the investment must be on the supply side.
Overall, EU refiners and regulators are years ahead of the US when it comes to decarbonization. Energy market participants that ignore this dynamic will be at a disadvantage and must flex their muscles to influence policy direction.
At Alder Renewables, we are working closely to ensure the transition to sustainable fuels optimizes existing infrastructure and delivers competitive cost of CO2 abatement to end users. We will continue to make our voice heard to ensure that the race to decarbonize is competitive and viable – on both sides of the Atlantic.
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