Des Moines Register 02-03-07 Competition heats up in biofuels research Iowa must step up its investments. Petroleum giant BP on Thursday announced its partners in a $500 million bioscience-based energy research program. Iowa State University was handpicked to submit an application in partnership with others, but was not chosen. Iowa, which seeks to remain a leader in biofuels research, should neither miss the clear wake-up call sounded by BP's decision, nor be alarmed by it. The selected partners - especially the University of California-Berkeley and Lawrence Berkeley National Laboratory, which had teamed up with the University of Illinois at Urbana-Champaign - are renowned research institutions. Iowa State had partnered with the University of California-San Diego, which has expertise in working with microbes, and the J. Craig Venter Institute of Rockville, Md., known for its genetics research. Whatever disappointment is being felt at ISU faculty offices is shared on such prestigious campuses as the Massachusetts Institute of Technology, Purdue University and England's Cambridge University. This sort of heady competition is a bit like the Academy Awards. No competitors in the sweepstakes for alternative-energy research dollars will win every time, but being a finalist certifies your star power. What's important for Iowans to recognize is the caliber of the competition - and that Iowa needs to step up its investments in research to remain competitive. Iowa became an early leader in researching and producing corn-grain ethanol and soy biodiesel through a combination of good fortune (the blessing of its productive soil), expertise (the know-how of plant scientists at ISU and companies such as Pioneer and Monsanto) and can-do persistence of farmerinvestors. Now the world has taken notice. The search for alternatives to petroleum has gained steam worldwide, as worries grow about the threats posed by global warming and the political instability of oil-producing nations. BP's decision probably had more to do with Iowa State's partners than with ISU. Berkeley Lab is funded by the U.S. Department of Energy and is the oldest of DOE's national laboratories. UC-Berkeley is widely regarded as one of the nation's best universities. It's also a leader in synthetic biology. To significantly ramp up biofuels production, scientists have to figure out how to efficiently break down cellulose, the fibrous material that gives plants their shape. UC-Berkeley researchers hope to synthesize new life forms to ferment cellulose. That type of breakthrough could vault BP far ahead of competitors. Plus, UC-Berkeley has faculty expertise in other energy fields. And it's simply a lot bigger institution than Iowa State, so it can throw more dollars at energy research. In addition to biofuels, BP's new institute will focus on areas such as carbon sequestration and improved recovery from existing oil and gas reservoirs. That doesn't mean Iowa should back away from its goal of leading the biorenewable-energy revolution. There will be other big opportunities for corporate investment. ISU is negotiating with other potential corporate partners, President Gregory Geoffroy said Friday, and continues to talk with BP about other opportunities. Plus, available federal grant money is ballooning. President Bush pledged in his State of the Union address to continue pumping more dollars into alternativeenergy research through the DOE. A reauthorized farm bill is expected to fund more biofuels research, too. Iowa will win its share of those dollars - if the state invests boldly and wisely to build on its acknowledged plant-sciences expertise and practical know-how in producing biofuels. It probably didn't hurt the chances of the two California universities that Gov. Arnold Schwarzenegger pledged $40 million in bonding for a new building should either land the BP institute. ISU has asked for 10 additional faculty positions to fill in gaps of expertise in three main areas: alternative-energy crops, microbial fermentation and engineering processes. That will require $1 million in recurring payroll costs and $4 million in startup expenses. The university is also seeking $28 million for a new building to house research teams that are part of its Office of Biorenewables Programs. That's a small bid to keep playing in a high-stakes competition. The Legislature should make it happen.