Just the other day I mentioned that some investors don't see long-term growth possibilities in the ethanol industry because the laws of nature say you can only get so much alcohol out of any given amount of carbohydrates. Since all ethanol producers face this same issue, no single company will break out of the pack and deliver whopping returns to investors. Now here comes news about a biotech startup company in Japan has set out to, in effect, prove that investment analysis wrong.
The company is called Neo-Morgan Laboratory Inc. and it is developing a process for breeding yeasts that produce ethanol more efficiently than traditional methods because the yeasts break down both five- and six-carbon sugars, according to Green Car Congress. This will get us closer to the cellolosic ethanol so many researchers are shooting for and "would greatly increase the ethanol yield from a given amount of biomass". Commercial interest in the process is high, and Brazilian oil company Petrobras is already in talks with Neo-Morgan.

[Source: Green Car Congress]

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