Late to game, ConocoPhillips funds biofuel research

Texas-based ConocoPhillips (NYSE: COP) says it plans to establish an eight-year, $22.5 USD million research program at Iowa State University dedicated to developing technologies that produce biorenewable fuels.

The company says the grant is part of a larger plan to create joint research programs with major universities to produce viable solutions to diversify America’s energy sources.

ConocoPhillips is to make an initial $1.5 million grant in 2007 to support Iowa State researchers, with additional grants of $3 million per year for seven years.

The company lags other international oil companies, which have pledged larger amounts to alternative energy research, and earlier. For instance, in addition to running one of the world's leading solar companies, BP has committed to a half a billion dollars to biofuel (see BP funds biofuel research with $500M.) Chevron also has substantial investments in alternative energies.

“We believe the key to a secure energy future is the efficient and effective use of a diverse mix of energy sources,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips.

ConocoPhillips is apparently most interested in converting biomass to fuel through fast pyrolysis, a process that uses heat in the absence of oxygen to decompose biomass into a liquid product. The resultant bio-oil can be used as a heating oil or can be converted into transportation fuel at petroleum refineries.

ConocoPhillips is to sponsor studies of other thermochemical technologies that produce biofuels, as well.

Iowa State’s Office of Biorenewables Programs includes 145 faculty members with ties to 18 academic departments and 19 research centers and institutes across campus. Those researchers have attracted more than $57 million in sponsored research funding since 2002.

ConocoPhillips is an integrated petroleum company with interests around the world. For more information, see www.conocophillips.com.