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    환경부는 환경 개선을 위한 책임의식이 있는가?

    대한민국 환경부의 불가사의 한 에너지 정책으로 인해 자동차회사들은 물론이고 소비자들은 지금까지도 선택의 기회를 제공 받지 못하고 있다. 수입에 의존하는 천연가스 버스에만 혜택을 주고 수출하는 연료인 디젤을 사용하는 경유버스는 별다른 이유 없이 ‘디젤 금지법’까지 만들어 가며 사용을 억제하고 있다.

    환경부가 내 세우는 주장은 디젤엔진 배출가스가 미세먼지 발생 오염원의 66.7 %에 달한다는 설득력없는 근거를 배경으로 하고 있다. 하지만 그런 환경부의 주장은 2008년 1월 감사원으로부터 근거 없다고 시정할 것을 지적 받은 적이 있다. 2001년에 이미 환경과학원 자료에서 9.7%에 불과하다는 조사 결과가 있었다.

    또한 2006년에는 환경부가 대기환경학회에 의뢰한 연구결과에서도 경유차의 오염원으로 비중이 서울 6.33%, 인천 9.65% 등으로 나타났다. 더불어 디젤승용차에서 5mg/km의 먼지가 발생한데 비해 타이어 마모에 의한  발생은 100mg/km로 그 20배에 달한다는 연구 결과가 있다. 이 모든 것이 환경부에 의해 발표된 자료 들이다.

    그런데도 환경부 교통환경과 는 2012년 7월 디젤 버스 배출가스 허용 기준을 유로5보다 절반 정도의 수준(질소산화물 2.0에서 1.2로, 미세먼지를 0.02에서 0.01로)으로 낮춘 사실상 디젤 엔진 금지법을 발표했다. 학계와 업계에서는 다양한 경로를 통해 이런 불합리한 점을 지적하고 있지만 요지부동이다.

    그것은 서울 우면산 터널의 경우처럼 서울시 관계자들이 은퇴 후 이 터널의 민간 사업자인 우면산인프라웨이㈜로 가서 고액 연봉을 받는 소위 ‘전관 예우’와 같은 배경이라는 지적이 나왔다. 다시 말해 환경부 관계부서 의 관리가 은퇴 후 대한가스협회나, LPG협회 등으로 ‘영전(?)해 퇴직 후 보장을 받는 관례 때문이라는 것이다. 그래서 세계 대부분의 나라에서 규제하고 있는 천연가스 엔진의 배출물질인 CH4(유로3,4,5에는 규제대상)는 아예 규제대상에서 제외한 것은 천연가스 보급자만을 배려한 이유도 거기에서 찾고 있다. 이는

    년 4월 6일 국회환경노동위 홍영표 위원이 주관한 버스별 환경/경제 비교평가 사업결과 보고라는 세미나를 통해 거론된 내용이다.지금 세계는 에너지 페러다임의 변화에 대응하기 위한 다양한 대응 마련에 골몰하고 있다. 최근 엑손 모빌은 경유 소비가 가솔린을 추월할 것이라고 전망했다. 2020년이 되면 글로 벌 교통 수단의 연료 중에서는 경유가 가장 높은 점유율을 차지할 것이며 2040년에는 점유율이 70%까지 높아질 것이라는 설명이다.

    연료 수요는 상용차가 가장 큰 비중을 차지한다. 2040년에는 전체 교통의 연료 중 40%를 차지하며 이중 브릭스의 연료 수요는 80%가 상승할 것으로 예상되고 있다. 반면 가솔린의 수요는 정체가 될 것으로 내다보고 있다. 2040년에는 글로벌 자동차 대수는 현재의 두 배에 해당하는 16억대가 되지만 디젤차의 판매가 크게 늘어날 것으로 전망되고 있다.

    이런 국제적인 흐름과는 별도로 국내에서는 관료들의 이익을 위해 터무니 없는 규제가 시행되고 있다. 이는 법조계를 시작으로 거의 모든 분야에서 횡행하고 있다는 지적이 나온 것은 어제 오늘의 일이 아니다. 하지만 잠깐의 지적 뿐, 지속적인 감시가 없어진 사회에서 시정은 요원해 보인다. 부정부패에 불감증이 걸린 사회라는 것이다. 이런 상황에서 환경 개선은 물론이고 산업 발전도 기대할 수 없다. 하루 빨리 시정되어야 한다는 목소리가 높다.

    http://cleandiesel.co.kr/infor/data_read.asp?id=102&pageNo=1&searchpart=&search=&mykeyword

    델파이, 새 직분사 엔진 컨셉트 공개


    델파이, 새 직분사 엔진 컨셉트 공개

    델파이가 SAE 월드 콩그레스에서 새 직분사 엔진 컨셉트를 공개한다. GDCI(Gasoline Direct-Injection Compression-Ignition)로 불리는 새 직분사 엔진은 디젤과 가솔린의 점화 기술을 혼용한 게 가장 큰 특징. 내부 조사에 따르면 NOx와 PM의 배출이 현저히 줄어든다.

    프로토타입은 1.8리터 4기통 GDCI 엔진이다. 여기에 2 스테이지 과급 시스템을 매칭했다. 2개의 에어 쿨러는 과급 시스템에 개별적으로 공기를 공급하며 이와 함께 전반적인 연소 효율이 크게 향상된다. 거기다 엔진의 반응성 또한 즉각적으로 변하는 것도 장점으로 꼽힌다.

    피스톤과 연료 분사 시스템도 새롭게 개발한 것이며 열손실이 크게 낮아진 것은 물론이다. 델파이에 따르면 GDCI의 열효율은 47%로 기존의 가솔린보다 높은 수준이며 고속도로 연비는 28%가 향상된다고 한다.

    http://www.global-autonews.com/board/view.php3?table=bd_002&gubun=1&idx=2718

    Graziano’s new AMT aims to plug the ‘torque-interruption gap’

    Image: Graziano03-13 AMT for super-hybrids.png

    Graziano engineers claim their company’s new 6-speed AMT, soon to enter a vehicle demonstrator, is lighter, more compact, and lower cost than a comparable dual-clutch transmission. The 2-speed epicyclic provides more effective infilling than a single-speed when high rates of acceleration or high road speeds are required, the engineers claim.

    Transmission specialist Oerlikon Graziano has spotted a way to plug a “gap” in the transmission market. It is the gap suffered by most automated manual transmissions (AMT) caused by torque interruption between shifts.

    AMT technology may save weight and power losses by obviating the need for a torque converter or the cost of using a double clutch transmission (DCT) solution. But torque interruption effects as gears shift are invariably a problem that requires varying degrees of footwork finesse by a driver. Many AMTs—particularly early versions with less sophisticated control software—have the ability to irritate driver and passengers. Anyone who has travelled in a car with an AMT would appreciate the luxury that torque infill could provide.

    And that is what a new Graziano transmission, now in development, has been designed to achieve for hybrid systems. Claudio Torrelli, Graziano’s Head of Product Development, believes his company’s system would be particularly apposite for hybrid supercars: “It fills in the missing torque by drawing from the vehicle’s electric traction motor for the duration of the shift event,” he told AEI.

    The Graziano system is a lighter, more package-friendly solution than a DCT, Torelli believes, helping to offset the inevitable weight and package issues that hybrid powertrains bring. He also claims a potential improvement of up to 4% fuel economy compared to a wet-clutch DCT when based on like-for-like simulations, thanks to lower internal losses and the elimination of hydraulic cooling requirements.

    Current thinking in supercar circles favors the DCT as the optimum solution for smooth gearshifting combined with good efficiency, promising the refinement of an automatic with the fuel economy and driver involvement of a manual. Torrelli accepts that premise, noting that Graziano produces such systems. But he says that as performance car manufacturers embrace hybrid technology in the search for lower emissions and higher performance, AMT with torque infill may offer a more suitable solution for hybrids.

    “Our experience in both AMTs and DCTs gives us the impartiality to select the most appropriate technology for a particular application,” he explained. “There is no one-size-fits-all solution for all market sectors.”

    The trick to enabling torque infill

    At the recent CTI [Commission for Technology and Innovation (Innovative Transmissions, Hybrids and Electric Drives)] symposium and expo in Berlin, the company revealed technical details of its new AMT. The basic architecture is a 6-speed, two-shaft configuration coupled to an electric motor through a two-speed epicyclic geartrain and connected to the combustion engine via a conventional clutch.

    The two-shaft layout provides good installation flexibility to support different potential hybrid arrangements, while the two-speed epicyclic enables more-effective torque infilling during hard acceleration or at higher road speeds than a single-speed could achieve, explains Torrelli.

    He adds: “The water-cooled electric motor provides 120 kW (30 s peak rating) and 200 N·m with a maximum speed of 14,000 rpm. In order to improve the package and optimize the total weight of the system, the electric motor is embedded into the transmission casing. The system is configured to permit a number of alternative power modes by allowing the traction motor to drive independently of the engine.”

    The epicyclic assembly combines their outputs to enable the electric motor to contribute additional torque for acceleration, to smooth out gearshifts, or to operate in fully electric mode with the engine cut.

    “The engine can also back-drive the electric motor to charge the battery pack,” Torelli noted.

    The new transmission uses the ISR (Independent Shift Rod) system for gear-change actuation, which the company introduced on the ultra-fast shift for the Lamborghini Aventador. This integrates each shift valve into its corresponding shift rod, eliminating the cross-gate movement of a conventional “H” gate.

    As a result, the system can begin to move the rod for the next gear while still withdrawing the previous one, allowing the shift to be accomplished faster. The hydraulic module that operates the transmission consists of a power pack with controllers for hydraulic line pressure, clutch and electronic limited slip diff (eLSD), where fitted. Built up from proprietary parts, the design priority for the entire hydraulic system was the optimization of shift time.

    http://articles.sae.org/11944/

    Renewables – Good for Some Things; Not so Good for Others

    Based on the sound of the name renewable, a person might think that using only “renewable” energy is ideal–something we should all strive to use exclusively. But there are lots of energy sources that might be called “renewable,” and lots applications for renewable energy. Clearly not all are equally good. Perhaps we should examine the “Renewables are our savior,” belief a little more closely.

    Figure 1. World fuel consumption based on BP's 2012 Statistical Review of World Energy data.
    Figure 1. World fuel consumption based on
    BP’s 2012 Statistical Review of World Energy data.

    1. Renewables that we have today won’t replace the quantity of today’s fossil fuels, in any reasonable timeframe.

    Figure 1, above shows the distribution of fuels used since 1965.

    Other renewables, which includes wind, solar, geothermal and other categories of new renewables, in total amounts to 1.6% of world energy supply in 2011, according to BP. The light blue line is not very visible on Figure 1. (The blue line that is visible at the top is “Nuclear.”)

    Biofuels, which would include ethanol and other types of biofuels, such as palm oil, amounts to 0.5% of world energy supply. Its orange line is not very visible on the chart either.

    Hydroelectric, shown in purple, has been around a long time–since 1880 in the United States. It amounts to 6.4% of world energy supply. Its quantity is not growing very much, because most of the good locations have already been dammed.

    In total, the three categories amount to 8.5% of world energy supply. If growth continues at today’s rate, it will be a very long time before renewable energy supply can be expected to amount to more than 10% or 15% of world energy supply. We very clearly cannot operate all the equipment we have today on this quantity of energy. In fact, it is doubtful that we can even cover the basics (food, water, and heat to keep from freezing) for 7 billion people, with this quantity of energy.

    2. If there is a huge collapse scenario, there is a possibility that those who are in possession of renewable energy technologies will be able to use these technologies to their own benefit, when others do not have such options. 

    There are many ways that today’s technologies may benefit a few hundred thousand or a few million people who happen to have use of them, for perhaps a few decades. A person who has a solar panel and backup battery may be able to operate an electric light, when no one else has one. A person living near a large hydroelectric plant may expect to have electricity, when other parts of the country do not. A person with a solar thermal hot water heater may be able to have hot water, when others do not.

    There are of course limits to this. If the solar panel depends on battery backup, the battery may wear out pretty quickly. We know from the Second Law of Thermodynamics that everything degrades over time. This includes solar panels, hydroelectric plants, transmission wires, and even the solar thermal hot water heater. So at most, the benefit of today’s technology is only likely to last for a few generations, unless we are able to repeat making new units.

    There is considerable misunderstanding regarding the availability of electricity from solar PV panels on roofs of houses. Usually, these are operated with an inverter (to produce alternating current) and connected to the electric grid. These units cannot be used if there is an electrical outage in the area. With some rewiring, the panels might be used on a stand-alone basis. On such a basis, their use would be much more limited. They could only be used for devices taking direct current, and only when the sun is shining (unless backup batteries are available).

    3. Renewables can’t be expected to operate on a “stand-alone” basis, in any reasonable timeframe.

    Each energy source is quite specialized. In the past, human and animal labor played an important role in growing crops. Charcoal made from wood was used in making a very limited amount of metals and glass. It was possible to use traditional sources of “renewable energy” to power society, in large part because only a small amount of non-human and non-animal energy was used in total. World population was 1 billion or less, not 7 billion. The standard of living was quite low.

    In India today, the crops are grown primarily with human and animal labor, two sources which could be considered “renewable”.

    Figure 2. Workers harvesting rice in India. Photo taken by author while visiting India in October 2012.
    Figure 2. Workers harvesting rice in India.
    Photo taken by author while visiting India in October 2012.

    Even with this low standard of living, there is a substantial fossil fuel contribution that would be difficult to eliminate. The hand tools that workers use are sickles, which are made using coal. India uses nitrogen fertilizer made using fossil fuel (natural gas or coal) as well as irrigation pumps (manufactured using fossil fuel, and fueled by diesel or electricity). Only the electricity component would be fairly easy to eliminate with today’s renewable energy (if scaled up sufficiently).

    Some seem to believe that renewables can power the world on a stand-alone basis. The tiny quantity of renewable energy currently available is, in and of itself, a huge limitation in making this happen. Furthermore, today’s solar PV panels and wind turbines are made and transported using fossil fuels, and most of our transportation industry uses petroleum. In theory, we could develop new devices that use only electricity, or create enough biofuels to make a complete closed loop (devices made and transported only with renewables). In practice, we have trillions of dollars of cars, trucks, airplanes, and construction machinery built to use oil. Because of this, a complete changeover to renewables is at best decades away.

    At this point, renewables are only “fossil fuel extenders.” They operate within our current fossil fuel system. They cannot be expected to reproduce themselves without the benefit of fossil fuels.

    4. Some renewables are economic in today’s world, while others require subsidies.

    There are clearly many types of renewable energy that are economic in today’s world. Geothermal is economic in some locations, because there is underground heat that can be used to boil water to create electricity, or to heat homes directly. Solar PV panels, together with back-up batteries, are often the lowest-cost electricity source in remote locations (Figure 3, below). This is why energy companies use them to provide power in remote locations. Solar thermal energy is inexpensive for heating swimming pools and for heating hot water in warmer climates.

    Figure 3. Natural gas wells with solar panels for electricity for monitoring devices at BP tight gas installation in Wamsutter, WY. (2008 photo by author.)
    Figure 3. Natural gas wells with solar panels for electricity for monitoring devices at
    BP tight gas installation in Wamsutter, WY. (2008 photo by author.)

    Other renewables require subsidies. We usually think of intermittent renewables, such as wind and solar PV panels, as requiring subsidies. In fact, it is often difficult to tell how much subsidy is truly required. Part of the subsidy comes in the need for upgraded grid transmission; part of the subsidy comes from the need to run fossil fuel back-up stations fewer hours and ramp them up and down more often, making them wear out more quickly; part of the subsidy comes in the form of increased complexity, that makes it more difficult to maintain electricity supply for the long run. There is no obvious reason to believe that intermittent electricity will make the electric grid last longer–if we are increasing the complexity of grid regulation at the same time we are reaching limits of many types, adding more intermittent renewables would seem to increase the likelihood of early failure.

    As long as there are renewable energy mandates for renewables, and costs divided among many different payers (most of whom are not reimbursed for their payments), it is hard to tell how much today’s subsidy actually is. Energy return on energy invested (EROEI) calculations of intermittent renewables do not look at the whole system cost, including impacts on other players, so overstate economic benefits and understate energy costs. In the end, we do not have a good measure of how much mandated renewable energy supplies cost us. Also, as we add more intermittent renewables to the electric grid, the cost to other players can be expected to escalate, making the understatement of costs (and overstatement of EROEI) greater over time.

    5. High-priced renewables help some of our problems, but make others worse.

    Inexpensive renewables–ones that require no subsidy or mandate–are not a problem from a financial point of view. Many of these can help the environment without providing economic challenges.

    The ones that tend to be problematic are ones that require subsidies, especially when we have no idea how much the subsidy really is. Figure 4, below, gives my view of how some of the various limits we are reaching act together.

    Figure 4. Author's view of how various limits might work together to produce different symptoms.
    Figure 4. Author’s view of how various limits might
    work together to produce different symptoms.

    In my view, the limits we hit first are the limits on the outside of the chart on Figure 4: financial issues and political issues. (I introduce this chart in my post Our Energy Predicament in Charts.) Disease susceptibility enters in, as there are more unemployed and as the government finds it necessary to cut back in financial programs for the poor and unemployed.

    If the price of renewable energy is high, it tends to exacerbate the problems on the outside of this chart, even as it reduces CO2 contributions within the country, and reduces local pollution as electricity is made. There may still be pollution issues associated with making the rare earth metals that go into the wind turbines or the solar panels, but these are conveniently in China or another remote location. Making devices themselves also requires fossil fuels–usually coal if the devices are imported from China.

    The way our current financial woes work out can be represented by Figure 5, below:

    Figure 5. Author's representation of how government financially caught in the middle. Photo credits: Texaspolicy.com, Thetaxhaven.com.au, Usahitman.com, politic365.com, autoevolution.com.
    Figure 5. Author’s representation of how government financially caught in the middle.
    Photo credits: Texaspolicy.com, Thetaxhaven.com.au, Usahitman.com, politic365.com, autoevolution.com.

    High priced renewables tend to exacerbate the poor financial situation of governments represented in Figure 5 in several ways:

    • Wage earners are even more penniless, thanks to the higher cost of these renewables,
    • Companies tend to move their manufacturing to cheaper locations (often using coal). This both reduces (a) taxes paid by the company to the US government, and (b) wages paid to US workers,
    • The government pays out more benefits to the unemployed workers, and
    • The government pays out more in funds for subsidies.

    In the end, when we look at world CO2 emissions, we discover that they have in fact risen relative what would have been expected prior to the Kyoto protocol (signed in 1997), rather than fallen, as the emphasis on renewables grew (Figure 6).

    Figure 6. Actual world carbon dioxide emissions from fossil fuels, as shown in BP's 2012 Statistical Review of World Energy. Fitted line is expected trend in emissions, based on actual trend in emissions from 1987-1997, equal to about 1.0% per year.
    Figure 6. Actual world carbon dioxide emissions from fossil fuels,

    as shown in BP’s 2012 Statistical Review of World Energy.

    Fitted line is expected trend in emissions, based on actual trend in emissions from 1987-1997,

    equal to about 1.0% per year.

    A major reason for emissions growth shown in Figure 6 seems to be globalization. I wonder, though, if globalization was pushed forward by the practice of looking at emissions within a country’s own boundaries, while excluding emissions associated with imported manufactured goods. The pushed developed countries toward renewables, at the same time Asia increased market share greatly through its use of coal.

    Germany is now the leader in the use of renewable energy. Recent reports say that there are 800,000 German households that cannot pay their electricity bills, because of the high cost renewables add. There are also reports that German natural gas producers want to close back-up plants for wind/solar, unless they too receive subsidies.

    6. Even if renewables look to be cheap and non-intermittent, there still can be problems with their use.

    Unfortunately, nature doesn’t really provide us with a free lunch. If we use growing plants–such as trees, corn, palm oil trees, or other biomass, we start reaching limits as well. It is very easy to cut down trees more quickly than they regrow. We know from research by Sing Chew that deforestation was already a problem 6,000 years ago, when there wereonly 20 million humans on earth. Deforestation also leads to soil loss and erosion, which is also a huge problem. Plowing of fields for crops of any kind in fact tends to lead to soil loss.

    Hydroelectric, as good an energy source as it is, has its downsides as well. In the early years after its construction, it tends to increase CO2 production in the flooded areas. It tends to interfere with fish migration, and with the normal balance of species. Building large hydroelectric plants can take huge amounts of arable land out of cultivation and displace large populations. It can lead to earthquakes and landslides. One country can sometimes “steal” the water of another, by building a hydroelectric facility.

    Our whole ecological system, including animals and our climate system, requires a balance among the various species. We are being warned by scientist today that humans cannot simply commandeer all of the natural resources for our own use. Renewables often use natural resources that other species also have a need for-especially biofuels, wood and biomass. Biologists tell us we are in danger of reaching a tipping point due to overly high use of “net primary productivity” (Barnosky and Haberi).

    Conclusion

    It truly would be convenient if nature had provided us with a free lunch, in the form of renewables. At best, we were given something that if we use wisely, can add a little to what we have today. Renewables may, in fact, “save” some remnant of humanity, if limits truly become a problem in the near future.

    If renewables are truly to provide widespread benefit for the world population as a whole (going beyond the measly 2% for non-hydroelectric renewables), we need to develop renewable energy supplies which are much lower in resource use than the renewables we have today.1 Such lower resource use would have several benefits:

    1. It would reduce the pollution impacts of making the renewable generating devices.
    2. It would reduce the cost of making alternative energy.
    3. It would improve the scalability of such renewables.
    4. It would improve the EROEI of such renewables.

    There seems to be widespread belief that an EROEI of 3 or 4 or 5 is “good enough” for renewables. The economy is showing signs that our current cost of fuels is already way too high. What we really need to do is bring our energy cost level down. Thus, what we really need is renewable energy sources that will reduce our average energy cost and raise our average EROEI of fuels.

    Note:
    [1] The name renewable unfortunately doesn’t equate to low resource use. In some cases, such as solar and wind, it means “front-ended fossil fuel resource” use. In other cases, such as biofuels, it means “using soil, fresh water, and fossil fuels to provide an oil substitute.”

    http://www.financialsense.com/contributors/gail-tverberg/renewables-good-for-some-things-not-so-good-for-others

    First Commercial Cellulosic Ethanol Plant in US Goes Bankrupt

    bankruptcy

    Last year, to much fanfare, the first batch of qualifying cellulosic ethanol was produced (i.e., it qualified for credits under the EPA program for certifying ethanol for sales). I reported on the development at that time.

    Western Biomass Energy LLC, a subsidiary of Blue Sugars Corporation (previously KL Energy) reported the major milestone of claiming the first cellulosic ethanol tax credits under the RFS2 for a 20,069 gallon batch of cellulosic ethanol produced from bagasse (sugar cane waste) in April 2012.

    However, regular readers are aware that for years I have been deeply skeptical that cellulosic ethanol as envisioned by — and ultimately mandated by — the US government will be an economic and scalable fuel option. The obstacles to success are significant, and I have described them in detail on many occasions.

    Nevertheless, there is the possibility that in some niche applications that modest amounts of cellulosic ethanol may be produced for sale. One of those niches is from waste biomass such as bagasse that is produced during the processing of sugarcane. But in general – despite the proclamations from promoters like Vinod Khosla – the chemistry and physics are formidable obstacles working against the success of cellulosic ethanol. I will state in no uncertain terms that I don’t believe it can ever be mass-produced more cheaply than corn ethanol, and that industry’s financial trouble are well-documented.

    Another Reality Check

    I was extremely skeptical that the batch of cellulosic ethanol produced by Western Biomass was anything more than a publicity stunt rather than an indication that they had actually managed to conquer the economics of the process. My skepticism was heightened when they never produced another qualifying batch for the rest of the year, and that one batch they did produce was exported to Brazil to be used at the Rio+20 Conference.

    Now comes news that Western Biomass Energy has filed for Chapter 11 bankruptcy protection. In my column in which I reported on the initial production of cellulosic ethanol from Western Biomass, I noted:

    Cellulosic ethanol commercialization still faces a number of challenges. Capital and operating costs are expected to remain higher than for corn ethanol producers, and even they are currently struggling with low margins. The ethanol market also faces the hurdle of the blend wall, which makes it difficult to expand domestic production without increases in E15 and E85 consumption, and/or ethanol exports.

    It will continue to be true that as long as the US government incentivizes these ventures, companies will continue to pursue them. But I believe it is also true that every gallon of production they make will be produced at a significant per gallon loss. Mother nature simply didn’t design cellulose to be easily accessible, and extracting the cellulose, converting the cellulose into sugars, fermenting those sugars to ethanol, and finally purifying that ethanol will continue to be capital and energy-intensive operations.

    Investors Should be Cautious

    In addition to Western Biomass, one other company has produced qualifying cellulosic fuel. Vinod Khosla-backed KiOR announced earnings this week, while at the same time announcing that they had shipped their first batch of qualifying cellulosic diesel. This was presented as great news, and KiOR’s share price initially surged on the news. But a closer reading of their financial statement signals the kind of warning flags about KiOR that I have been waving for over a year:

    The Pasadena, Texas-based firm lost $0.28 per share during the fourth quarter, falling short of the $0.15 per share loss in Q4 2011. However, it beat the Wall Street consensus of a loss of $0.32 per share.

    Fourth quarter revenue rounded out at $87,000 – the company’s first revenue since inception. This fell drastically short of the $1.62 million analysts hoped for.

    So, revenues were 95% less than expected. Yikes. Also the company’s cash and cash equivalents declined by $91 million over the previous year, down to $41 million. KiOR’s clock is ticking. They will likely find more investors willing to take a chance on them, but even though I have a couple of friends who work there, I am not optimistic about their long-term chances of competing in the motor fuel arena. As long as natural gas prices remain low, they will probably limp along, but their heavy dependence on cheap natural gas is a risk factor unrecognized by most investors.

    http://peakoil.com/alternative-energy/first-commercial-cellulosic-ethanol-plant-in-us-goes-bankrupt