Friday, May 23, 2008

Cache & Packets

SunEthanol and CHiL Semiconductor rewarded with funding

By Efrain Viscarolasaga

From the “things you may have missed” file, two early-stage local companies have recently made strides on what could eventually change the way their respective industries approach their markets.

First, out in Amherst, University of Massachusetts spin out SunEthanol Inc. has been developing microbes for the production of ethanol. There is nothing new in that, as a number of local and national companies have garnered considerable funding for the development of such biofuels.

But despite that funding, ethanol production has become a polarizing activity for the clean energy industry. While the development and large-scale production of a gasoline alternative is a major goal for environmentalists, using potential food crops to do it, such as corn and sugar cane, has become controversial, as food prices rise around the world.

SunEthanol has hooked its technology — a unique microbe developed at UMass called the Q Microbe —  to producing fuel from non-food sources, including switchgrass, sorghum and different kinds of wood chips.

In an effort to encourage the development, the U.S. Department of Energy (DOE) has been good to SunEthanol, including the company in a $114 million project to develop four small-scale biorefineries around the country, announced in February.

Last week, the company landed a new grant — a $100,000 Small Business Innovation Research (SBIR) award through the DOE — to simplify its patented process. The grant represents the company’s third SBIR award from the Energy Department.

According to executives, the process, known as C3 (complete cellulose conversion), could eventually make the production of ethanol from non-food sources significantly cheaper. The key to the company’s promise is the elimination of enzymes, normally used in the process to break down sugars in plant matter for fermentation. The Q Microbe, discovered by UMass microbiologist and SunEthanol chief scientist Susan Leschine, can break down feedstock on its own, without using outside enzymes, the single most expensive part of traditional ethanol production.

Industry insiders say the technology is one of the most promising in the industry, but it is still in the very early stages. Backing from the DOE, as well as private funding from investors such as Battery Ventures and VeraSun Energy Corp., is expected to help the company open its first pilot plant, which is planned for 2009.

Cool cost savings

Tewksbury’s CHiL Semiconductor Inc. is also working to have a positive impact on the  environment, though not in the production of energy, but rather in the reduction of power.

The stealth-mode chip maker landed $16 million in its third round of funding earlier this month, and executives hope to parlay that cash into the commercial launch of its power-saving chips. Two of the company’s products are expected to hit the market in the coming moths, while a third is slated for later this year, according to Larry Spaziani, CHil’s vice president of business development.

CHil’s circuit is aimed at replacing traditional analog power supply circuits with a combination of analog and digital components. The move to a mixed-signal circuit means fewer components — from about 180 in a traditional analog circuit to about 140 in CHiL’s layout — which means it costs about the same for an equipment manufacturer to install.

The move to digital means CHiL’s circuit can reduce power consumption of a given device by up to 15 percent. What’s more, the software that accompanies the chip allows users to control the amount of power they use. While most computers have the two options of “sleep mode” and “off” to control power, users of CHiL-enabled devices will be able to monitor their power and reduce draw on an application-specific basis.

Executives were not willing to provide details regarding what manufacturers are now testing the product or in which devices the circuit may appear. However, Spaziani did report that the company expects to recognize revenue in 2008.