SBIR Phase II: Direct Conversion of Lignocellulosic Feedstocks to Lipids and High-Value Products using a Proprietary Microbial Process

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The broader impact/commercial potential of this Small Business Innovation Research Phase II project is the sustainable production of high-value lipids (oils, waxes and fatty acids) from abundant and inexpensive feedstocks. The process is based on a unique lipid- accumulating microorganism found in Yellowstone National Park that is capable of directly converting a wide range of feedstocks such as wheat straw, corn stover, and industrial by-products (e.g. molasses, glycerol) to valuable lipid products such as Omega-7 fatty acids and high-melting temperature waxes. Renewable oils, waxes and fatty acids have significant demand in a wide range of industries (e.g. neutraceuticals, biolubricants, cosmetics, candles and soaps). Consumers will clearly benefit from this technology through the reduction of our dependence on petroleum-based products while generating a market for agricultural wastes and by-products. Since few companies and research groups are investigating fungal lipid production directly from lignocellulosic biomass for higher- value products, both industry and the scientific community will benefit from the knowledge gained by this research. This Small Business Innovation Research Phase II project describes a simple, novel and cost-effective process for converting lignocellulosic and other waste feedstocks to high- value lipids using a microorganism isolated from Yellowstone National Park, which is capable of withstanding extreme acidic conditions and producing powerful enzymes for degrading cellulose, lignin and hemicellulose. The organism accumulates high concentrations of valuable lipids in a cost-effective ?one-step? process. The produced lipids based on renewable resources creates a market for waste agricultural materials. The primary objective of this SBIR project is to further develop the process for commercial production of lipid products from waste organic feedstocks. Phase II efforts will focus on optimizing the process with a bench pilot-scale system, performing process flow design and techno-economic analysis of commercial production systems, analyzing lipid products in detail, and targeting appropriate markets/customers for the produced lipid products. Coming out of the Phase II program, the goal is to have a pilot- level demonstration system designed to produce economically viable yields of high-value lipids from a variety of substrates for defined target markets and customers.