McDonald's urging franchisees to open on Christmas









McDonald's Corp. is urging U.S. restaurant owners to take the unusual step of opening on Christmas Day to deliver the world's biggest hamburger chain with the gift of higher December sales, AdvertisingAge reported Monday.

The request -- which comes as McDonald's tangles with resurgent rivals such as Wendy's, Burger King and Yum Brands' Taco Bell chain -- would be a break from company tradition of closing on major holidays.

"Starting with Thanksgiving, ensure your restaurants are open throughout the holidays," Jim Johannesen, chief operations officer for McDonald's USA, wrote in a Nov. 8 memo to franchisees -- one of two obtained by AdvertisingAge.

"Our largest holiday opportunity as a system is Christmas Day. Last year, (company-operated) restaurants that opened on Christmas averaged $5,500 in sales," Johannesen said.

"The decision to open our restaurants on Christmas is in the hands of our owner/operators," McDonald's spokeswoman Heather Oldani told Reuters.

Don Thompson took over as chief executive at McDonald's in July and has the difficult task of growing sales from last year's strong results in a significantly more competitive environment.

McDonald's monthly global sales at established restaurants fell for the first time in nine years in October, but unexpectedly rebounded in November.

The November surprise was partly due to a 2.5 percent rise in sales at U.S. restaurants open at least 13 months.

"Our November results were driven, in part, by our Thanksgiving Day performance," Johannesen wrote in a Dec. 12 memo to franchisees.

Oldani said 1,200 more McDonald's restaurants were open on Thanksgiving this year versus last year -- not 6,000 more as AdvertisingAge reported.

Still, the company has a high hurdle when it comes to posting an increase in restaurant sales this month because its U.S. same-restaurant sales jumped 9.8 percent in December 2011.

"It's an act of desperation. The franchisees are not happy," said Richard Adams, a former McDonald's franchisee who now advises the chain's owner/operators.

The push to open on the holidays goes against McDonald's cultural history, said Adams. In his first published operations manual, McDonald's Corp. founder Ray Kroc said the company would close on Thanksgiving and Christmas to give employees time with their families, Adams said.

"We opened for breakfast on Thanksgiving the last couple years I was a franchisee. It was easy to get kids to work on Thanksgiving because they want to get away from their family, but not on Christmas," Adams said.



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Funerals today for first 2 Newtown school shooting victims












A grieving Connecticut town is bracing itself today to bury the first two of the 20 student victims of a grade school gunman and debated when classes could resume — and where, given the carnage in the building and the children's associations with it.


Funeral services for Jack Pinto, 6, will take place Monday at 1 p.m. at Honan Funeral Home, 58 Main St. in Newtown. Burial will follow at Newtown Village Cemetery, 22 Elm Drive, Newtown. The wake will be private. Funeral services Noah Pozner, 6, will take place on Monday at 1 p.m. from the Abraham L. Green and Son Funeral Home, 88 Beach Road, Fairfield, with burial following at B'nai Israel Cemetery on Moose Hill Road in Monroe.











The people of Newtown weren't yet ready to address the question just three days after the shooting at Sandy Hook Elementary School, and a day after President Barack Obama pledged to seek change in memory of the children and six adults ruthlessly slain by a gunman packing a high-powered rifle.


"We're just now getting ready to talk to our son about who was killed," said Robert Licata, the father of a student who escaped harm during the shooting. "He's not even there yet."


Newtown officials couldn't say whether Sandy Hook Elementary, where authorities said all the victims were shot at least twice, would ever reopen. Monday classes were canceled, and the district was making plans to send surviving Sandy Hook students to a former school building in a neighboring town.


The gunman, 20-year-old Adam Lanza, was carrying an arsenal of hundreds of rounds of especially deadly ammunition, authorities said Sunday — enough to kill just about every student in the school if given enough time, raising the chilling possibility that the bloodbath could have been even worse.


The shooter decided to kill himself when he heard police closing in about 10 minutes into Friday's attack, Gov. Dannel P. Malloy said on ABC's "This Week."


'God has called them all home'


At the interfaith service in Newtown on Sunday evening, Obama said he would use "whatever power this office holds" to engage with law enforcement, mental health professionals, parents and educators in an effort to prevent more tragedies like Newtown.


"What choice do we have?" Obama said on a stark stage that held only a small table covered with a black cloth, candles and the presidential podium. "Are we really prepared to say that we're powerless in the face of such carnage, that the politics are too hard?"


The president first met privately with families of the victims and with the emergency personnel who responded to the shooting. Police and firefighters got hugs and standing ovations when they entered for the public vigil, as did Obama.


"We needed this," said the Rev. Matt Crebbin, senior minister of the Newtown Congregational Church. "We need to be together here in this room. ... We needed to be together to show that we are together and united."


As Obama read some of the names of victims early in his remarks, sobs resonated throughout the hall. He closed by slowly reading the first names of each of the 20 children.


"God has called them all home," he said. "For those of us who remain, let us find the strength to carry on and make our country worthy of their memory."


"We can't tolerate this anymore. These tragedies must end. And to end them, we must change," Obama said.


Funerals begin today


The first funerals were planned Monday for Jack Pinto, a 6-year-old New York Giants fan who might be buried in wide receiver Victor Cruz's jersey, and Noah Pozner, a boy of the same age who liked to figure out how things worked mechanically.


"He was just a really lively, smart kid," said Noah's uncle Alexis Haller, of Woodinville, Wash. "He would have become a great man, I think. He would have grown up to be a great dad."


With more funerals planned this week, the road ahead for Newtown — which had already started purging itself of Christmas decorations in a joyful season turned mournful — was clouded.


"I feel like we have to get back to normal, but I don't know if there is normal anymore," said Kim Camputo, mother of two children, ages 5 and 10, who attend a different school. "I'll definitely be dropping them off and picking them up myself for a while."





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Modern Etiquette: A bit of netiquette will keep Christmas real






LONDON (Reuters) – Christmas is a convivial time of year when people get together for celebrations and conversation. It’s all about human contact so it’s important that you’re discriminating about how you use your digital devices.


It’s fine if they’re used to facilitate get-togethers and spread seasonal cheer. But Christmas is a real, not a virtual event, so it’s important to discard the phones, tablets and computers and enjoy festive celebrations in the real world.






Christmas cards are still an invaluable and personal way of keeping in touch with far-flung friends and relations.


In these straitened times, however, you might want to cut down the number of cards you send, so it’s fine to explain to your nearest and dearest that you won’t be sending them cards – a personalized seasonal message by text, phone call or email, sent out to individuals, is quite acceptable.


Avoid sending out generic e-cards. They’re lazy and impersonal, and many people will find them lacking in Christmas spirit or just baffling.


If you’re emailing instead of sending a Christmas card, make sure that you send out unique – and individual – messages to each of your recipients. Group emails, like round robins, are to be avoided.


It’s fine to put general seasonal messages on social networking sites, but avoid posting compromising photos.


This is the time of year when we all let our hair down, but not everyone will appreciate the evidence being posted for all to see in cyberspace.


Don’t get too carried away with seasonal cyber-cheer. Spamming your friends and followers with endless Christmas wishes and updates will soon get tedious.


Christmas Day is all about socializing with family and friends, and enjoying good food and good conversation. So don’t spend the big day glued to your phone, rather than interacting with your family.


Ban all phones from the Christmas table.


Eating together is all about sociability and it’s a real insult to the host and/or cook to be transfixed by your texts rather than the turkey and table talk.


Be a good digital host.


Technology is part of our everyday life and Christmas is no exception. If you have friends or family staying in your home, make sure that you have your WiFi password to hand. Offer them access to your network, and hope that everyone adheres to good festive netiquette.


Christmas is the perfect time to make a video call, but choose your timing carefully. Nobody wants to be talking to virtual visitors during lunch or present opening.


Remember the power of the written word.


If you are the lucky recipient of a generous present or lavish hospitality, then hand-writing a proper thank you letter is a much more elegant gesture than texting or emailing, and will be noted and appreciated. It is fine to email or text your thanks for small presents.


(This story has been refiled to fix dateline)


(Jo Bryant is an etiquette advisor and editor at Debrett’s, the UK authority on etiquette and modern manners (www.debretts.com). Any opinions expressed are her own. Debrett’s “Netiquette” is a definitive guide to digital dilemmas and outlines a code of manners for modern communication.)


(Editing by Paul Casciato)


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Amy Winehouse inquest to be heard again






LONDON (AP) — Officials in London say the inquest into the death of soul singer Amy Winehouse was overseen by a coroner who lacked the proper qualifications and will be re-heard next month.


Camden Council says a new hearing will take place on Jan. 8.






Winehouse was found dead in her London home in July 2011 at age 27. An inquest in October 2011 found the “Back to Black” singer had died of accidental alcohol poisoning.


Assistant deputy coroner Suzanne Greenaway, who oversaw the inquest, resigned the next month after her qualifications were questioned. She had been appointed by her husband, Andrew Reid, the coroner for inner north London.


Reid was suspended, and resigned earlier this month.


Winehouse family spokesman Chris Goodman said Monday that family had not requested a new hearing.


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Experts Say Thimerosal Ban Would Imperil Global Health Efforts


A group of prominent doctors and public health experts warns in articles to be published Monday in the journal Pediatrics that banning thimerosal, a mercury compound used as a preservative in vaccines, would devastate public health efforts in developing countries.


Representatives from governments around the world will meet in Geneva next month in a session convened by the United Nations Environmental Program to prepare a global treaty to reduce health hazards by banning certain products and processes that release mercury into the environment.


But a proposal that the ban include thimerosal, which has been used since the 1930s to prevent bacterial and fungal contamination in multidose vials of vaccines, has drawn strong criticism from pediatricians.


They say that the ethyl-mercury compound is critical for vaccine use in the developing world, where multidose vials are a mainstay.


Banning it would require switching to single-dose vials for vaccines, which would cost far more and require new networks of cold storage facilities and additional capacity for waste disposal, the authors of the articles said.


“The result would be millions of people, predominantly in low- and middle-income countries, with significantly restricted access to lifesaving vaccines for many years,” they wrote.


In the United States, thimerosal has not been used in children’s vaccines since the early 2000s after the Food and Drug Administration and public health groups came under pressure from advocacy groups that believed there was an association between the compound and autism in children.


At the time, few, if any, studies had evaluated the compound’s safety, so the American Academy of Pediatrics called for its elimination in children’s vaccines, a recommendation that the authors argued was made under the principle of “do no harm.”


Since then, however, there has been a lot of research, and the evidence is overwhelming that thimerosal is not harmful, the authors said. Louis Z. Cooper, a former president of the academy and one of the authors, said that if the members had known then what they know now, they never would have recommended against using it. “Science clearly documented that we can’t find hazards from thimerosal in vaccines,” he said. “The preservative plays a critical role in distribution of vaccine to the global community. It was a no-brainer what our position needed to be.”


Advocacy groups have lobbied to include the substance in the ban, and some global health experts worry that because the government representatives due to vote next month are for the most part ministers of environment, not health, they may not appreciate the consequences of banning thimerosal in vaccines. The Pediatrics articles are timed to raise a warning before the meeting.


“If you don’t know about this, and you’re a minister of environment who doesn’t usually deal with health, it’s confusing,” said Heidi Larson, senior lecturer at the London School of Hygiene and Tropical Medicine, who runs the Vaccine Confidence Project.


In an open letter to the United Nations Environmental Program and the World Health Organization this year, the Coalition for Mercury-Free Drugs, a nonprofit group that supports the ban, disputed the assertion that scientific studies had offered proof that thimerosal is safe, and urged member states to include it in the ban.


That it is being used in developing countries, but not developed countries, is an “injustice,” the letter said.


The World Health Organization has also weighed in. In April, a group of experts on immunization wrote in a report that they were “gravely concerned that current global discussions may threaten access to thimerosal-containing vaccines without scientific justification.”


Dr. Larson said she believed that the efforts of pediatricians and global health experts, including the W.H.O., would influence the negotiations in Geneva and that the compound would most likely be left out of the final ban.


“You can’t just pull the plug on something without having a plan for an alternative,” she said.


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Reyes goes craft with Windy City deal









Independent breweries are still a niche category in the marketplace, but interest in them continues to grow.


Reyes Beverage Group, a division of global food and beer distributor Reyes Holdings of Rosemont, said Sunday it has reached an agreement to purchase Windy City Distribution, a well-regarded distributor of craft beers.


Brothers Jim and Jason Ebel founded Windy City in 1999. The firm operates as a distributor across eight northern Illinois counties for more than 40 craft breweries, such as Tyranena, Lagunitas and Jolly Pumpkin Artisan Ales. The Ebels also are the brewers behind Warrenville-based Two Brothers beer.





The deal, which is expected to close by the end of the year, is yet another sign of the coming-of-age of the craft beer scene, which is now much more part of the mainstream beer industry. In 2012, 442 craft breweries opened, according to the Beer Institute. The Brewers Association, a trade association, said sales of craft brews increased 14 percent in the first half of 2012 and volume jumped 12 percent.


While the beer industry overall has shown limited growth, the explosive interest in craft beer is enticing giants such as Anheuser-Busch, the maker of Budweiser, and MillerCoors, both of which have struggled to enter the craft market on their own. Since acquiring Chicago's Goose Island in 2011, Anheuser-Busch has aggressively expanded that well-known label. Earlier this year, it revealed plans to increase Goose Island's distribution to all 50 states, making it one of the few craft brands with a true national footprint.


Reyes' Chicago Beverage Systems and Windy City will not integrate their operations. Windy City's president, Bob Collins, and his management team will join Reyes. Chicago Beverage Systems distributes Miller, Coors and Heineken brands, among others.


"Windy City Distributing will be a new entity in our network focused solely on the craft beer market," said Ray Guerin, chief operating officer of Reyes Beverage Group. "I look forward to working with Windy City to learn more about servicing the craft beer industry while providing Reyes Beverage Group's expertise to help Windy City expand."


Terms of the transaction were not disclosed. Both companies are privately held.


mmharris@tribune.com


Twitter @chiconfidential





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1 dead, 2 injured in overnight shootings on West Side









A 28-year-old far north suburban man was killed in the West Side's Tri-Taylor neighborhood and two women were injured in separate shootings Saturday night and Sunday morning, police said.


The man was shot about 2:45 a.m. as he stood on a porch in the 2400 block of West Flournoy Street, Chicago Police Department News Affairs Officer Hector Alfaro said, citing preliminary information.


He was taken in critical condition with a gunshot wound to the chest to John H. Stroger, Jr. Hospital of Cook County, where he was pronounced dead at 3:25 a.m., according to the Cook County medical examiner's office.





The medical examiner's office identified the man as Gavin Williams, of the 2600 block of Gilead Avenue in Zion.


About 15 minutes earlier and just blocks away, a 30-year-old woman was shot in the ankle while standing in the 2300 block of West Grenshaw Street, police said.


The woman was taken to Stroger, where she was listed in good condition.


Preliminary information suggested no relation between the Flournoy and Grenshaw shootings, News Affairs Officer Jose Estrada said.


About 11:30 p.m., a 47-year-old woman was shot as she stood on a porch in the 1300 block of South Springfield Avenue, Alfaro said.


The shooting happened in the Lawndale neighborhood.


A male shooter approached on foot and fired, striking the woman in the left hand, Alfaro said, citing preliminary information.


The woman was taken to Mount Sinai Hospital, where she was listed in good condition.


Police have no suspects in custody as Area Central detectives investigate.


asege@tribune.com


Twitter: @AdamSege





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Actor Depardieu hits back at French PM over tax exile






PARIS (Reuters) – Actor Gerard Depardieu, accused by French government leaders of trying to dodge taxes by buying a house over the border in Belgium, retorted that he was leaving because “success” was now being punished in his homeland.


A popular and colourful figure in France, the 63-year-old Depardieu is the latest wealthy Frenchman to seek shelter outside his native country after tax increases by Socialist President Francois Hollande.






Prime Minister Jean-Marc Ayrault described Depardieu’s behavior as “pathetic” and unpatriotic at a time when the French are being asked to pay higher taxes to reduce a bloated national debt.


“Pathetic, you said pathetic? How pathetic is that?” Depardieu said in a letter distributed to the media.


“I am leaving because you believe that success, creation, talent, anything different must be sanctioned,” he said.


An angry member of parliament has proposed that France adopt a U.S.-inspired law that would force Depardieu or anyone trying to escape full tax dues to forego their nationality.


The “Cyrano de Bergerac” star recently bought a house in Nechin, a Belgian village a short walk from the border with France, where 27 percent of residents are French nationals, and put up his sumptuous Parisian home up for sale.


Depardieu, who has also inquired about procedures for acquiring Belgian residency, said he was handing in his passport and social security card.


Culture Minister Aurelie Filippetti said she was outraged by Depardieu’s letter, adding that he had for years been supported financially by public money for the film industry.


“When we abandon the ship and desert in the middle of an economic war, you don’t then come back and give morality lessons,” she told BFM-TV. “One can only regret that Gerard Depardieu doesn’t make a comeback in silent movies.”


He said he had paid 145 million euros ($ 190.08 million) in taxes since beginning work as a printer at the age of 14.


“People more illustrious than me have gone into (tax) exile. Of all those that have left none have been insulted as I have.”


The actor’s move comes three months after Bernard Arnault, chief executive of luxury giant LVMH and France’s richest man, caused an uproar by seeking to establish residency in Belgium – a move he said was not for tax reasons.


Belgian residents do not pay wealth tax, which in France is now levied on those with assets over 1.3 million euros ($ 1.7 million). Nor do they pay capital gains tax on share sales.


“We no longer have the same homeland,” Depardieu said. “I sadly no longer have a reason to stay here. I’ll continue to love the French and this public that I have shared so much emotion with.”


Hollande is pressing ahead too with plans to impose a 75-percent supertax on income over 1 million euros.


“Who are you to judge me, I ask you Mr. Ayrault, prime minister of Mr. Hollande? Despite my excesses, my appetite and my love of life, I remain a free man.”


(Reporting by John Irish; Editing by Mark Heinrich)


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Dr. William F. House, Inventor of Cochlear Implant, Dies





Dr. William F. House, a medical researcher who braved skepticism to invent the cochlear implant, an electronic device considered to be the first to restore a human sense, died on Dec. 7 at his home in Aurora, Ore. He was 89.




The cause was metastatic melanoma, his daughter, Karen House, said.


Dr. House pushed against conventional thinking throughout his career. Over the objections of some, he introduced the surgical microscope to ear surgery. Tackling a form of vertigo that doctors had believed was psychosomatic, he developed a surgical procedure that enabled the first American in space to travel to the moon. Peering at the bones of the inner ear, he found enrapturing beauty.


Even after his ear-implant device had largely been supplanted by more sophisticated, and more expensive, devices, Dr. House remained convinced of his own version’s utility and advocated that it be used to help the world’s poor.


Today, more than 200,000 people in the world have inner-ear implants, a third of them in the United States. A majority of young deaf children receive them, and most people with the implants learn to understand speech with no visual help.


Hearing aids amplify sound to help the hearing-impaired. But many deaf people cannot hear at all because sound cannot be transmitted to their brains, however much it is amplified. This is because the delicate hair cells that line the cochlea, the liquid-filled spiral cavity of the inner ear, are damaged. When healthy, these hairs — more than 15,000 altogether — translate mechanical vibrations produced by sound into electrical signals and deliver them to the auditory nerve.


Dr. House’s cochlear implant electronically translated sound into mechanical vibrations. His initial device, implanted in 1961, was eventually rejected by the body. But after refining its materials, he created a long-lasting version and implanted it in 1969.


More than a decade would pass before the Food and Drug Administration approved the cochlear implant, but when it did, in 1984, Mark Novitch, the agency’s deputy commissioner, said, “For the first time a device can, to a degree, replace an organ of the human senses.”


One of Dr. House’s early implant patients, from an experimental trial, wrote to him in 1981 saying, “I no longer live in a world of soundless movement and voiceless faces.”


But for 27 years, Dr. House had faced stern opposition while he was developing the device. Doctors and scientists said it would not work, or not work very well, calling it a cruel hoax on people desperate to hear. Some said he was motivated by the prospect of financial gain. Some criticized him for experimenting on human subjects. Some advocates for the deaf said the device deprived its users of the dignity of their deafness without fully integrating them into the hearing world.


Even when the American Academy of Ophthalmology and Otolaryngology endorsed implants in 1977, it specifically denounced Dr. House’s version. It recommended more complicated versions, which were then under development and later became the standard.


But his work is broadly viewed as having sped the development of implants and enlarged understanding of the inner ear. Jack Urban, an aerospace engineer, helped develop the surgical microscope as well as mechanical and electronic aspects of the House implant.


Karl White, founding director of the National Center for Hearing Assessment and Management, said in an interview that it would have taken a decade longer to invent the cochlear implant without Dr. House’s contributions. He called him “a giant in the field.”


After embracing the use of the microscope in ear surgery, Dr. House developed procedures — radical for their time — for removing tumors from the back portion of the brain without causing facial paralysis; they cut the death rate from the surgery to less than 1 percent from 40 percent.


He also developed the first surgical treatment for Meniere’s disease, which involves debilitating vertigo and had been viewed as a psychosomatic condition. His procedure cured the astronaut Alan B. Shepard Jr. of the disease, clearing him to command the Apollo 14 mission to the moon in 1971. In 1961, Shepard had become the first American launched into space.


In presenting Dr. House with an award in 1995, the American Academy of Otolaryngology-Head and Neck Surgery Foundation said, “He has developed more new concepts in otology than almost any other single person in history.”


William Fouts House was born in Kansas City, Mo., on Dec. 1, 1923. When he was 3 his family moved to Whittier, Calif., where he grew up on a ranch. He did pre-dental studies at Whittier College and the University of Southern California, and earned a doctorate in dentistry at the University of California, Berkeley. After serving his required two years in the Navy — and filling the requisite 300 cavities a month — he went back to U.S.C. to pursue an interest in oral surgery. He earned his medical degree in 1953. After a residency at Los Angeles County Hospital, he joined the Los Angeles Foundation of Otology, a nonprofit research institution founded by his brother, Howard. Today it is called the House Research Institute.


Many at the time thought ear surgery was a declining field because of the effectiveness of antibiotics in dealing with ear maladies. But Dr. House saw antibiotics as enabling more sophisticated surgery by diminishing the threat of infection.


When his brother returned from West Germany with a surgical microscope, Dr. House saw its potential and adopted it for ear surgery; he is credited with introducing the device to the field. But again there was resistance. As Dr. House wrote in his memoir, “The Struggles of a Medical Innovator: Cochlear Implants and Other Ear Surgeries” (2011), some eye doctors initially criticized his use of a microscope in surgery as reckless and unnecessary for a surgeon with good eyesight.


Dr. House also used the microscope as a research tool. One night a week he would take one to a morgue for use in dissecting ears to gain insights that might lead to new surgical procedures. His initial reaction, he said, was how beautiful the bones seemed; he compared the experience to one’s first view of the Grand Canyon. His wife, the former June Stendhal, a nurse, often helped.


She died in 2008 after 64 years of marriage. In addition to his daughter, Dr. House is survived by a son, David; three grandchildren; and two great-grandchildren.


The implant Dr. House invented used a single channel to deliver information to the hearing system, as opposed to the multiple channels of competing models. The 3M Company, the original licensee of the House implant, sold its rights to another company, the Cochlear Corporation, in 1989. Cochlear later abandoned his design in favor of the multichannel version.


But Dr. House continued to fight for his single-electrode approach, saying it was far cheaper, and offered voluminous material as evidence of its efficacy. He had hoped to resume production of it and make it available to the poor around the world.


Neither the institute nor Dr. House made any money on the implant. He never sought a patent on any of his inventions, he said, because he did not want to restrict other researchers. A nephew, Dr. John House, the current president of the House institute, said his uncle had made the deal to license it to the 3M Company not for profit but simply to get it built by a reputable manufacturer.


Reflecting on his business decisions in his memoir, Dr. House acknowledged, “I might be a little richer today.”


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Greener planet is goal for 3 startups









If the glut of companies billing themselves as "solutions" providers is any indication, the world has no shortage of problems.


Green tech companies take on some of the most complicated, difficult problems to solve. They tend to be problems created by our mere existence, chief among them our massive demand for energy. The more we rely on energy to power our electronics, our vehicles and our lives, the more pollution we churn into our land, water and air.


The Tribune checked in with three local green tech startups at various stages of development. They haven't changed the world yet, but they're working on it.





COMPANY: LanzaTech


PROBLEM TO BE SOLVED: Global warming, a huge challenge as energy demand is expected to double within 40 years.


FUNDS RAISED: $100 million


It may sound like sci-fi, but LanzaTech produces gas-eating "bugs" that don't require oxygen to survive.


In April, the company's microscopic bacteria began ingesting carbon monoxide from a steel mill in China. Carbon monoxide goes in one end of the bacteria and ethanol comes out the other.


With a few genetic tweaks, the bug can produce a wide range of fuels and chemicals from gases that companies spend money to get rid of. The idea, says Jennifer Holmgren, the company's chief executive, is to trap nasty gases that float from steel mills, power plants and chemical factories, turning them into products that are useful and profitable.


The company recently inked a deal with Petronas, the national oil company of Malaysia, to develop a modified version of the bug that takes in carbon dioxide and produces acetic acid, a chemical companies need to produce polymers used in plastics.


"Rather than trying to sequester carbon deep into the earth, we will 'bury' it in a chemical," Holmgren said. "In this way, companies can not only comply with emissions reduction requirements, but also generate revenue along the way."


When Holmgren talks about the technology's potential, she pulls up a map of the world, showing partnerships and agreements the company has with companies from Boeing Co. in Chicago and Kansas-based Invista, the world's largest nylon producer, to Indian Oil Co. in New Delhi and Mitsui & Co. Ltd. in Japan.


Out of the company's various projects, the carbon monoxide-eating bacteria are the furthest along in the path toward commercialization. This month, LanzaTech finished a demonstration project for China's largest steel manufacturer, Baosteel, at a plant near Shanghai.


LanzaTech successfully produced the equivalent of more than 100,000 gallons of ethanol per year from just a fraction of the carbon monoxide the company creates in the steel-making process.


"You're literally driving for miles watching this steel mill," Holmgren said, explaining its vast size — and its potential to produce hundreds of millions of gallons of ethanol per year.


The technology creates a financial incentive to trap the gas rather than flare it, a common practice that produces carbon dioxide, which contributes to global warming. Through a series of pipes, the gas enters a vessel filled with the organism, which is floating in water. Fuel comes out the back end and is pumped through a distiller to create pure ethanol.


Because of the success of that demonstration, the steel company has ordered the first of what will eventually be three or four units, each about $80 million, that are each expected to produce 30 million to 50 million gallons of ethanol per year. Each unit pays itself back in under five years, Holmgren said.


"We don't want it to be green for green's sake. If it is, no one is going to use it," she said.


With 140 employees worldwide, LanzaTech doesn't have any revenues to report yet. Holmgren said LanzaTech expects to grow to profitability between 2013 and 2015.


COMPANY: Hybrid Electric Vehicle Technologies LLC





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