Toyota and Kobe University develop price-competitive biofuels

Toyota Motor Corp. and Kobe University have developed a way to produce biofuels for only ¥40 (US$0.43) per liter, a cost competitive with gasoline and only one-third the cost of using current biofuels production methods. The team aims to commercialize the technology, which processes inedible plants like rice straw, within five years. Biofuel is conventionally made by dissolving biomass with an enzyme called cellulase and then fermenting the substance with yeast. Toyota has developed a yeast that can simultaneously dissolve and ferment plants. By using the yeast and a special liquid, biofuel can be produced without an enzyme, significantly reducing costs. (November 1, 2009)