Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts

January 28, 2009

Perspectives on Sustainability Standards for Biofuel Production

This article is a response to a call for comments on Version Zero of the draft Principles and Criteria for Sustainable Biofuels written by the Roundtable for Sustainable Biofuels after extensive, multi-stakeholder, international collaboration. A running public dialog on these standards is available online at the Bioenergy Wiki.

We need change to a renewable fuels paradigm and we need it to be sustainable.

How do we engage in a massive overhaul of our energy paradigm that impacts on the quality of life of future generations without disturbing the natural order of things?

According to the preponderance of current research on "global warming" we have already disrupted the natural order of things. We need to quickly learn to responsibly manage Earth's resources to correct an imbalance that will not correct itself.

One only has to look at 2008's headlines and editorials to see how important the concept of "sustainability" has become to a wide swath of stakeholders as we move into the renewable energy era. Unfortunately, good news is rarely considered news-worthy to major outlets of opinion journalism. Instead, useful debate about certain sustainability issues has been, in far too many cases, distorted far out of proportion to their real significance. Controversy over "energy return on investment", "food vs. fuel", and "indirect land use change" stole much of the momentum that was being generated in support of advanced biofuel production. Some promising and sustainable projects were lost in the process.

Still, the artificiality of the controversy perpetuated by some of the media is no excuse to disengage from a discussion of the issues. To an extent, controversies draw valuable public interest to the topics under debate. In a sincere attempt to contribute a constructive opinion on these issues, I submit the following comments:

Recognize the threat posed by the status quo.

Renewable biofuels are carbon neutral (or negative) and are getting more plentiful and cleaner (fewer noxious byproducts and a reduction in greenhouse gases). Contrast that with fossil fuels that are carbon positive and getting dirtier (more greenhouse gases emitted from harder to extract and refine resources like tar sands and oil shale).

Before biofuels sustainability criteria are promulgated, it is important to ascertain the level of the challenge and the cost of doing nothing. Even prolonged delay has consequences. Lifecycle analyses of fossil fuel production should be used as a standard for comparison. Distance from well to wheel is a very important variable because it take energy to transport (and transmit) energy.

Credit the achievers.

Creating biofuel alternatives require innovation, creativity, and a significant amount of investment risk-taking.

In the fog of adversarial journalism, it is easy for the general public to lose focus on the clear benefits and achievements of the corn ethanol industry during the past few years. Few recognize the credit the ethanol industry deserves for replacing ALL groundwater contaminating MBTEs with clean, biodegradable corn ethanol as an oxygenate blended into gasoline. This simultaneously extended the volume of non-imported fuel used in American cars (roughly 3% nationwide) and resulted in cleaner running, less polluting vehicles.

Without the ethanol industry's rapid growth, there would be far fewer alternative fuel vehicles on the road, less developed infrastructure for supply and delivery, increased dependence on foreign sources of energy, more expensive gasoline during the recent price spike, and many lost opportunities to bolster a revitalized generation of Midwestern rural communities. This is an industry that has not only doubled production within the last few years, but is also moving forward with retooling agricultural practices, reducing fossil energy usage, and expanding the variety of feedstock that can be converted. With deployments come improvements.

We should continue to build and improve on models that have been successful.

The perfect is the enemy of the good.

The deleterious impacts from the status quo energy paradigm is the reason that we seek alternative technologies. It is not likely that new innovations will meet all criteria upon first deployment. And raising the bar and adding new criteria - like water usage, land use change, and greenhouse gas emissions - often arise after high capital expenditure deployment. By penalizing innovation we risk total inertia. Doing nothing is not an option.

All too frequently innovative processes are compared to theoretical concepts and abstract ideals that have remained pure because they have never been deployed so their impacts can be measured. Some may never be viable economically whether they meet sustainability criteria or not.

Biorefineries can cure environmental ills.

Conversion technologies can be used to turn environmental blights into fuels and power. Waste-to-energy power plants have helped municipalities reduce the amount of post-recyclables destined for landfills while creating new electricity. Similarly, biorefineries are being proposed to utilize environmental waste as biomass feedstock - trash and tires; bug infested forest timber; wildfire salvage; chicken litter; food scraps; forest management trimmings; hurricane, flood, and tornado debris; forest knockdown; and industrial wastes. These biowastes emit greenhouse gases as they decay so lack of management contributes to global warming.

Cleanly harnessing the btus contained in biomass waste completes a cradle-to-cradle energy value chain. The commercial value of biofuels and biopower can help fund environmental cleanup. We need as many conversion technology approaches as possible because the range of environmental challenges are vast and the resources available are becoming ever more precious.

Sustainability standards should be inclusive and regional.

To achieve the ends that we all want - more sustainable energy processes to pass on to future generations - we must deploy the most promising technologies now so we can perfect them. Multiple approaches provide options that can be tailored to specific resource, climate, and local stakeholder acceptability.

One of the prime characteristics of the bioenergy paradigm is the shift from centralization to decentralization. Fossil fuels are found at specific locations and, over time, the hunt for new reserves ranges further, wider, deeper - and dirtier. By comparison, biomass is relatively ubiquitous. It can be found everywhere except the most extreme conditions - like the deserts and the arctic regions.

The logistics for bioenergy solutons are based on short radius resources basins of 75 miles or less. Rather than expending vast sums for shipping remotely accessed raw materials from the corners of the world, biorefineries will depend on utilizing resources indigenous to the immediate vicinity. What is sustainable in one resource basin is totally different than another. Soil fertility, water availability, climate, and cultural mores vary greatly as do stakeholder interests. To mandate global sustainability criteria without factoring in indigenous variables would be pure folly.

This has already happened. The definition of "renewable fuel" in the groundbreaking 2007 Energy Independence and Security Act excluded classifications of different feedstock (notably woody biomass from federal forest lands). To many in the industry this seemed very arbitrary. Those that it did not specifically exclude were couched in terms that could lead to litigious action in the future against biorefiners attempting to receive the benefits outlined in the renewable fuel standard. The definition should be inclusive of a broad range of feedstock from private and public sources - not exclusive - because every resource basin is different.

Add concerns over the use of water, depletion of soil, deforestation, wildlife diversity, pesticides, energy return on investment, and fertilizers and the obvious question becomes "is there any biofuels production technology that will deployable?" If so, will it be so hamstrung by over-analysis and red tape that it never achieves its potential as a reasonable alternative to the status quo?

Even if a developer successfully threads the needle of expectation this year, will increasingly restrictive standards make duplication of the feat impossible to permit?

What ends might we sacrifice if we focus solely on the means?

Our dependence on fossil fuels is playing havoc with our economy, national security, environmental quality, and the climate predictability of our atmosphere. Just because fossil fuel industries existed before lifecycle analyses were required does not mean that they should forever be immune to measurement and sanction. The social, economic, health, climate, and military costs of fossil fuels are profoundly high.

We need to incentivize the development of many technologies to leap the hurdles of our paradigm challenge. Let's be careful that we don't handicap entrepreneurship with restrictions that will serve mainly to hamper creativity, slow the pace of change, and stifle investment.

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August 5, 2007

Motivating U.S. energy growth with "carrots" and "sticks"

Before breaking for summer the U.S. 110th Congress made strides on defining energy policies through passage of the 2007 Farm Bill (July 27th) and Energy Bills (August 4th). Analysis of these measures shows how the House seeks to achieve its goals by luring development with the "carrots" of incentives while threatening corporations with the "sticks" of taxes and regulatory standards.

In comparison to deliberations on the 2005 Energy Policy Act (EPACT) - passed prior to Bush's alarm-sounding "addicted to oil" State of the Union message and the oil price hikes of 2006 - both sides of the aisle seem to be tripping over themselves to prove to their constituencies that they "get" voter concern about the impact of U.S. oil dependency on the war in Iraq, the steep increases in the price of gasoline, carbon emissions from fossil fuels, and the overall need for more self-reliance for both electric and fuel energy production.

As a result, the Farm Bill and Energy Bill includes provisions that strongly support renewable energy development in general and biofuels development in particular.

So what are in these bills? While various news outlets carry detailed comparisons of the House and Senate versions of each, suffice it to say that the main issues break down between those usually held by pro-business Republicans vs. pro-environmentalist Democrats.

Carrots
"Carrots" are incentives that enable private enterprise to reduce the risk of investment in new research, development, & deployment (RD&D). Reliance is placed on American business acumen, the power of profit-motive, and the social benefit of good jobs to spur innovation and positive action. They tend to favor a cap and trade system used in Europe to reward progress implementing carbon emission reduction and energy efficient technologies.

The carrots the House Energy Bill contains -
• New tax credits for consumers to buy plug-in electric hybrids and fuel-cell vehicles as well as low-interest loans and grants for consumers to buy energy efficient appliances and install solar panels and geothermal pumps at their homes.
• Incentives to build biomass factories and for research into cellulosic ethanol and biodiesel.
• Bonds to be used by cities and counties for energy conservation.
• Tax credits for installing E-85 pumps.
• Tax breaks, subsidies for research into better batteries for plug-in hybrid cars and up to $4,000 tax credit for purchasing such cars.
• Funds for an assessment of areas for underground carbon dioxide storage and calls for developing large-scale storage demonstration projects.

The 2007 Farm Bill (H.R. 2419) includes some other carrots -
• Funding to invest in rural communities nationwide, including economic development programs and access to broadband telecommunication services.
• New investments in popular conservation programs, including the Conservation Reserve Program, Wetlands Reserve Program, Environmental Quality Incentive Program, Farm and Ranchland Protection Program
• New investments in renewable energy research, development and production in rural America. Rebalancing loan rates and target prices among commodities, achieving greater regional equity.
• Additional funding aimed at protecting and sustaining our nation’s forest resources.

How would these carrots be paid for, besides growth in tax revenues from development of new industries? The House voted to repeal $16 billion in tax breaks given to the oil and gas industry, shifting the money into programs to boost biofuels, renewable energy and efficiency programs.

Sticks
"Sticks" are regulations and punitive taxes that would increase government oversight of the process of energy technology deployment. Sticks would retard those technological development that could possibly threaten the environment, institute mandates on renewable energy purchases, set high standards on vehicle mileage and emissions reduction, and tax companies that fail to implement emissions improvements.

Some sticks create business opportunities. State Renewable Portfolio Standards (RPS) are an example. These mechanisms require utilities to purchase a certain percentage of their electricity from renewable sources. This tends to create market opportunities that encourage investment in chiefly solar and wind energy systems. California and Florida utilities are embracing these standards, in part because of other carrots and sticks. The Global Warming Act and similar California legislation that puts a cap on the use of coal to produce electricity threaten utility access to these mainstay sources of generation. However, the renewable energy sources can result in electricity that is more costly and more seasonal than current modes of generation, consequently they result in higher costs which are usually passed on to the consumer.

Another factor involved with RPS is that access to these wind and solar energy are regional. For this reason, Southern utilities are bristling at the attempt of Congress to pass a national RPS . They don't have much access to wind and solar energy. Biomass energy could rectify the imbalance because the Southeast is the wood basket of America and wood waste is actually a good source of bioenergy, but biofuel conversion technologies have yet to be employed commercial-scale and are at an early adopter stage of marketing.

The sticks the House Energy Bill contains include:
• Requirements that electric utilities produce 15 percent of electricity from renewable energy sources.
• New efficiency standards for appliances, lighting and building

The Farm Bill also contains -
• Strengthening payment limits for farm subsidies to ensure that people making more than $1 million a year (adjusted gross income) can’t collect conservation and farm program payments.
• Provisions that close loopholes that allow people to avoid payment limits by receiving subsidies through multiple business units.

One stick sought by the Democrats that didn't get passed was a big increase in federal fuel economy standards for all cars and trucks. The auto companies, like GM, have argued that this would cripple their industries because the American public still demands gas guzzling SUVs and pick-up trucks, the most profitable vehicles they make. Nevertheless, Speaker Pelosi is expected to push to include a Senate provision to raise fuel economy to 35 miles per gallon for cars and trucks by 2020 during deliberations.

What do the experts think about these Bills?
Bob Dinneen, President of the Renewable Fuels Association said this about the Energy Bill - “This bill could be to next generation cellulosic ethanol production what the 2005 energy bill was to grain-based ethanol. To achieve the ambitious goals the American people are calling for, it will require the production of ethanol from all available feedstocks, including corn, corn stover, switchgrass, wood chips and other cellulosic materials. This bill strikes the right chord by requiring that 21 billion of the 36 billion gallon requirement be met by cellulosic ethanol production."

Marchant Wentworth, a legislative representative for the Union of Concerned Scientists says "The Energy Bill saves consumers money, creates jobs and makes a down payment on reducing the threat of global warming."

Even though it satisfies the interests of most farmers, the Farm Bill looks like it might face a Bush veto. In one section Democrats added another "stick". They said they were closing a loophole and cracking down on foreign tax-dodgers, while Republicans called it a massive tax hike that would affect manufacturers that provide millions of jobs in their districts.

"This is an unprecedented move to use a farm bill as a vehicle to increase taxes," said Rep. Adam Putnam of Florida, the No. 3 Republican. "We could have put the House imprint on the farm bill, and now it is veto bait, and that is a tragedy."

Agriculture Secretary Mike Johanns said Democrats had narrowed support for farm programs by including the tax measure in the bill. "If there was ever a time when our farm programs needed friends, it is now," he said.

Both bills will now go to the Senate to be merged with their versions.

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June 30, 2007

Fuel Ethanol Workshop promotes vision and collaboration

The 2007 Fuel Ethanol Workshop was informative, thought provoking, and inspirational. Its scope was very broad. While enumerating the many benefits of a robust renewable energy paradigm, it also sought to promote greater collaboration between capitalism and environmentalism. It sought to stretch the range of feedstock beyond corn to cellulosic raw materials. And it provided many opportunities for attendees, embarked on a globally important quest, to meet and learn from each other how to achieve their goals.

Gateway to the Future

Symbolically, the choice of venue couldn't have more appropriate. It was held at the America's Center just west of St. Louis' inspirational Gateway Arch. Millions marvel at the futuristic elegance of its gleaming structure.

Between the vaulting legs of the arch is the underground Jefferson National Expansion Memorial - a contemporary reminder of the pioneering American spirit and its tireless urge to explore. In 1803 Thomas Jefferson oversaw the Louisiana Purchase that doubled the size of the country. He predicted it would take "a thousand years to settle." It took less than a hundred. This demonstrates that even a visionary as prodigious as Jefferson can dramatically underestimate the character and energy of his countrymen and the draw such vision represents to people around the world - many of whom immigrated to settle in the new territory. We are clearly at the gateway to a new era for emerging technologies that will transform the world energy paradigm and impact the exercise of freedom everywhere.

Building a globally important industry

The sense that biofuels companies are not just on the threshold of forming a globally important industry but also of insuring the humanitarian sustainability of future generations was highlighted during the opening session. BBI International hosts the conference and its CEO, Mike Bryan spoke eloquently to the attendees about the importance of the renewable fuels quest in global terms:

You are here to build an industry.

You represent a stronger economy - not just a stronger rural economy, but also a stronger urban economy because a rising tide raises all ships.

You also represent energy independence and energy security. Renewable energy promotes world peace. A new age in energy. When the oil wells and the oil refineries of today are nothing more than rusted relics of a past generation, renewable energy will continue to supply clean domestically produced energy not only to this country but also to countries all around the world.

We hope that soon, someday soon, we no longer will go to war over oil and that it is just simply a faded memory.

The need for both capitalism and environmentalism

Bryan was equally passionate when he spoke about the need for capitalists and environmentalists to work together:
You represent a cleaner environment. There’s been a lot of discussion over the years about capitalism and the environmentalism. They never seem to have gotten together, have they? That needs to change. We need to work with environmentalists.

You know what? Wealth creates pollution. Wealth needs to solve the pollution problem in this world. Capitalism alone is haughty, environmentalism alone is weak. But when we combine the two together we have something that can actually change the world.

It's okay to make money, it's okay to be profitable, that's a good thing. But as capitalists, as people who are in business to generate revenue and generate profit, we need to think about how we can create a better environment. We always need to be thinking about how we can collaborate with the environmental movement around the world.

To emphasize the importance of the environmental message, the keynote address was presented by Karen Coshof from Stonehaven Productions, Executive Producer of The Great Warming, a documentary about the threat of global warming and the need for "enlightened corporations, religious institutions, environmental and political leaders to recognize our moral responsibility to be stewards of the Earth today and for future generations."
Our time to stabilize global climate is shrinking fast. You are all working to move the world to a new and, I hope, a more sustainable energy paradigm. When you make your decisions and talk to each other over the next few days, factor in your children's future because failure is not an option.

Expanding the role of renewable biofuels

Bob Dinneen, President and CEO of the Renewable Fuels Association reflected on the immense change that has taken place over the last few years when he said:
50% of the nation's fuel is blended with ethanol. Every single gallon of gasoline sold in New York and California is blended with ethanol. Every single gallon of gasoline sold in Houston, Texas - where big oil executives have to drive to work each day on your fuel - is testament to how far we have come. But we surely have a long way to go.

We have to remind people that technology is not stagnant – that we are going to get greater and greater yields from an acre of corn. That technology is going to allow us to satisfy demand for grain used in feed, fuel, and fiber throughout this country.

We need to get the message out that... the price of gasoline has a far greater impact on consumer food prices than does a bushel of corn.

A recent poll that was done revealed that more than three out of every four Americans believe we need to be doing much more. We need to be maximizing production and use of renewable fuels like ethanol.

Congress has got that message. Congress saw what the Renewable Fuel Standard has done for our industry.

Diversifying ethanol feedstock

One way to maximize production of renewable fuels is to incorporate the use of a greater range of biomass feedstock. Poet President Jeff Broin announced a new project that will use corn cobs and corn fiber as the feedstock for their commercial cellulosic ethanol production facility that will be jointly funded with the U.S. Department of Energy (DOE).

Numerous workshops shed light on advancements in cellulosic biomass conversion into ethanol. Of the six D.O.E. "Section 932" award winners, four made presentations about their processes including Abengoa, Poet, Alico (and their technology partner, BRI), and BlueFire. However, other workshops dealt with issues that were important to all ethanol production processes.

Workshop 3 dealt with logistics and the transportation grid that currently exists to service the growing industry. Sandra Dearden, President of Highroad Consulting, Ltd. made a strong point during her presentation on "Integrating Transportation: Planning for Future Growth" that rail service is not on a trajectory that will adequately service the anticipated needs of the ethanol industry. When asked about future volume capacity, Sandra responded:
The thing that scares me the most is that the freight volume is likely to double within the next 14 years. It takes two years for a railroad to receive an ordered locomotive. It takes about ten months to get someone trained to be on a crew to be on a locomotive. And, at the same time, we don't have the infrastructure capacity. The railroads have gone to the House (of Representatives) and asked for assistance for funding additional railroad infrastructure.

The current status of Carbon Credits

Workshop 7 was titled "Greenhouse Gases: Capitalizing on Carbon Credits." Should a cap and trade mechanism be fully implemented nationwide, the value of GHG emissions is estimated to represent $50-$300 billion dollars by 2020 (US Congressional Budget Office). Keeping abreast of the carbon credit systems that are developed may spell the difference between survival and bankrupcy for many developers.

How can we use carbon credits to provide incentives for responsible industry behavior without undermining the financial stability of existing leveraged corporations? If a carbon credit system is used, what input will be taken into account? The answers will tend to be regionalized state-by-state. In the meantime, experts are developing tools to calculate the value of carbon credits based on a complex set of data input. Once of these is the BEACCON model, implemented in Excel®. which is free to download from http://lifecycleassociates.com/beaccon.php.
The BEACCON (Biofuels Emissions and Cost Connection) model allows ethanol producers to evaluate the potential impacts on production costs of the global warming intensity (GWI) of different biofuel production pathways. Version 1.0 of the model focuses on ethanol plants with a capacity range between 50 and 100 million gallons per year.

Another computational model is being developed by the University of Nebraska called the Biofuel Energy Systems Simulator (BESS). It will be released July 20th for free download.
The Biofuel Energy Systems Simulator (BESS) model provides a holistic “cradle-to-grave” analysis of energy use and net greenhouse gas (GHG) emissions during the entire biofuel production cycle—including crop production, ethanol conversion, and by-product use and waste disposal via associated cattle feedlots and anaerobic biodigestion systems. The model estimates the net energy efficiency and net GHG emissions for each component of the biofuel production life cycle and also for the integrated system as a whole.

James Murphy of Carbon Green, LLC was on hand to provide an introduction to the Chicago Climate Exchange (CCX) - which trades Carbon Financial Instrument™ (CFI) contracts.
CCX members make a voluntary but legally binding commitment to meet annual greenhouse gas (GHG) emission reduction targets. Those who reduce below the targets have surplus allowances to sell or bank; those who emit above the targets comply by purchasing CCX CFI contracts.

Notably, the U.S. Congress recently passed an appropriations bill amendment instructing the House to join the CCX - which requests that the House Chief Administrative Officer (CAO) purchase Carbon Financial Instruments from American projects through the Chicago Climate Exchange (CCX) to offset carbon produced by all House operations after renewable energy and efficiency improvements are made.


New Technologies

The new technologies addressed by FEW workshops this year included four of the six D.O.E. "Section 932" award winners mentioned earlier.

Bob Wooley, Principal Engineer from NREL/DOE gave an illuminating presentation on how his organization is helping the U.S. Department of Energy (DOE) plant and cultivate emerging technology development in the private sector. He talked about the dynamics and economics for expanding the fuel supply chain with a focus on two complex areas of the problem - feedstock supply and capital investment. They have developed a model called STELLA™ to understand how DOE activities might influence the ultimate ethanol deployment and explore what else (outside of DOE) might be needed to reach the desired deployment levels.

Other technologies included a DOE look at the emissions and performance characteristics of the SAAB 9-5 BioPower automobile and how the Chippewa Valley Ethanol Company is developing plans to displace over 90% of its fossil fuel usage with renewable biomass.

Hurdles to Deployment of E85

The Ethanol Promotion and Information Council (EPIC) held a special workshop on E85 during which their Director of Operations, Robert White, updated information about Underwriters Laboratories (UL) who rescinded E85 pump and pump component certification in September and October of 2006. This sent a chill through the distribution service industry for ethanol. There is now a process that is being developed to create standards for submitting equipment for certification and UL approval.

Back in February 2007 UL did complete a survey of dispensers across the country that concluded that E85 equipment has not resulted in any significant safety problems. A separate Brazil survey concluded in May 2007 rendered similar results. UL is now working inhouse to develop new standards which it hopes will be completed and published by December of 2007. It is anticipated that it will take a while to pass certification and it will not be until the fourth quarter of 2008 that there will be UL certified dispensers on the street.

The consequences have not completely curtailed deployment of pumps because some manufacturers are providing special warrants on safety and security in the absence of UL certification. However, this is an issue for the big box retailers (WalMart and others) and in Hawaii a program to install 25 E85 pumps was halted by the Fire Marshal because of the lack of UL approval.

Carl Donges from Clean Fuels USA talked about some equipment that his company represents that will have a big impact on how ethanol is dispensed now and will in the future. Texas based CleanFUEL USA has established itself as the leading global manufacturer of certified and approved alternative fuel dispensing equipment for both propane (LPG) and E85 and has expanded its role as an industry leader by providing comprehensive alternative motor fuel programs for fleet managers throughout the world.

Not only do they currently market dedicated pumps for dispensing ethanol but they also sell retrofitting kits and even pumps that blend different percentages of pure ethanol with standard gasoline at the dispensing station.

During Workshop 14 Jim Stewart of BRI made a presentation promoting the conversion of waste-to-ethanol using a thermochemical process. He used the occasion to launch a scathing attack accusing Big Oil companies of attempting to control renewable energy development so as to mitigate the possible negative impacts on their established businesses:
The public face of Big Oil appears to be committed to a transition between petroleum to alternative energy. But its private face is providing funds to educational institutions and think tanks that are generating unfavorable studies or otherwise opposing ethanol as a substitute for gasoline - and in subtle ways Big Oil is taking other steps to slow its expansion.

He then listed several high profile instances that he felt demonstrated the conflict of interest between the funding of educational institutions by Big Oil and subsequent research announcements detrimental to ethanol's image in the press. It is a touchy subject to be addressed at FEW because the oil companies, with their refineries that blend ethanol into their gasoline to meet state standards, are the primary customers of ethanol producers.


The promise of renewable fuel development will depend upon the collaboration of competing stakeholder interests (academia, business, social, environmental, and political) while correcting public misperceptions as reported in the press. The call is being raised for insightful leaders who can see and develop the common ground shared by these many sectors. Clearly, not all sectors were equally represented at FEW 2007, but the workshops stimulated multi-interest discourse and provided a forum for industry leaders to learn from each other.

For more information, see BBI's own publication for a Ethanol Producer recap

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June 15, 2007

U.S. Senate - "Make 25x'25 happen!"

Congratulations to all 25x'25 champions and supporters - our collective effort has paid off. This morning the U.S. Senate adopted by unanimous consent the 25x'25 national goal resolution. The following is a press release announcing this achievement.

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BOLD NEW U.S. ENERGY GOAL ADOPTED BY SENATE: 25 PERCENT OF ENERGY FROM RENEWABLE SOURCES BY 2025

Bipartisan Measure Enjoys Support from Ag, Industry Environmental Leaders

The U.S. Senate today adopted by unanimous consent a resolution calling for a new national renewable energy goal: 25 percent of the nation's energy supply from renewable sources by 2025. The resolution, which builds on a vision developed by a broad coalition of agriculture, forestry, industry, and environmental leaders, was adopted by voice vote as an amendment to the energy legislation currently under consideration on the Senate floor. A final vote on the full Senate energy package is expected next week.

"The 25x'25 resolution stresses the virtue of exploring an all-inclusive renewable energy strategy by emphasizing the need to cultivate energy from all kinds of renewable resources, such as wind, biomass, solar, hydropower and geothermal sources," said lead sponsor, Sen. Ken Salazar (D-CO). The 25x'25 vision "is bold and fully attainable. If implemented, it would dramatically improve our energy security, our economy, and our ability to protect the environment and combat global warming," he added.

Salazar, who was joined by 33 other Senate members from both sides of the aisle in supporting the resolution, said 25x'25 "sets a policy goal for our nation" that "complements" the energy package under debate. The goal calls for 25 percent of the nation's energy needs being met with renewable resources from farms, forests and ranches by 2025. The amendment also reinforces the 25x'25 principle that the U.S. agricultural and forestry industries, while producing renewable energy, will continue to produce safe, abundant and affordable food feed and fiber."
J. Read Smith, co-chair of the 25x'25 Steering Committee, expressed the alliance's gratitude to the resolution's sponsors, calling the vote an important first step on the road to a new energy future. "This action demonstrates that policymakers recognize the crucial role that our nation's farms, ranches and forests can play in improving energy security while enhancing the environment and strengthening our economy," Smith said.

Sen. Chuck Grassley (R-IA), another co-sponsor, said the pending energy legislation "is an appropriate place to include the 25x'25 resolution. The 25x'25 vision sets workable goals for renewable energy production and use that we can all aim for with sensible policies and initiatives." Sen. Tom Harkin (D-IA), who is also a lead co-sponsor, said "energy security is tied to national security and also means income and economic opportunity for agriculture and rural America. If we are to attain national energy and economic security for our nation, we must reach these aggressive but achievable energy goals." Harkin added, "The 25x'25 plan had very broad consensus support, which helped the Senate incorporate these proposals into our new energy policy."

Co-sponsor, Sen. Barack Obama (D-IL), said "addressing the climate crisis is one of the greatest challenges America faces today. Any comprehensive strategy to fight climate change must include a strong renewable energy standard in addition to a low carbon fuel standard, raised fuel economy standards, and incentives to promote efficiency. This bipartisan resolution will make an unprecedented goal for producing 25 percent of America's energy from renewable sources by 2025." And co-sponsor, Sen. Dick Lugar (R-IN) noted that "global oil and natural gas reserves are concentrated in tumultuous regions that include nations hostile to the United States. Our national security and economic prosperity demand that we move to a sustainable energy future. Ambitious targets that help motivate innovation are crucial. I applaud members of the 25x'25 coalition for providing a vision for renewable fuels,"
Sen. Chuck Hagel (R-NE), another co-sponsor, said that "in order to ensure our national energy security, America must develop a broad spectrum of renewable energy resources. The agenda of 25x'25 will help this country to meet its 21st century energy needs and ensure reliable and environmentally-friendly domestic energy sources for future generations."

The resolution has the support of more than 500 national, regional and local agricultural, forestry, business, energy, environmental and labor organizations; and more than a third of the nation's governors and 10 state legislatures. A similar resolution (H. Con. Res. 25), is pending in the House of Representatives.

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May 3, 2007

U.S. State Dept. to host 2008 Int'l Renewable Energy Conference


Secretary of State Condoleezza Rice announced today (April 23, 2007) that the State Department will host the Washington International Renewable Energy Conference (WIREC 2008) March 2008.

WIREC 2008 is the third global ministerial level event on renewable energy. It will be an important opportunity for world ministers to show their commitment to renewable energy. The ministers will discuss how renewable energy advances our shared goals for climate, sustainable development and energy security. The Secretary noted that, "Diversifying our energy supplies is a key foreign policy objective of this Administration," and that, "Renewable energy sources can go a long way toward breaking the 'addiction to oil' that President Bush cited in his 2006 State of the Union Address."

WIREC 2008 goals include: 
- Advancing energy security, climate change, air quality, and sustainable development goals, including agriculture and rural development; 
- Demonstrating global leadership in renewable energy research, policy development, technology innovation, commercialization and deployment; and
- Fostering industry and government collaboration to help solve global energy challenges.

The U.S. Department of State will host this event, assisted by other relevant Departments and agencies including; the: U.S. Department of Energy, U.S. Department of Agriculture, Environmental Protection Agency, U.S. Agency for International Development, U.S. Department of Interior, and the U.S. Department of Commerce. The intergovernmental team welcomes the strong support of the American Council On Renewable Energy (ACORE) and looks forward to cooperating with REN-21 and other relevant stakeholders.

For more information about the Washington International Renewable Energy Conference 2008, please contact William Armbruster at (202) 647-1247.

Here is the letter from The Secretary of State, Condoleezza Rice, to ACORE President Michael Eckhart:

THE SECRETARY OF STATE
WASHlNGTON
April 23, 2007

Dear Mr. Eckhart:

Access to clean, reliable, and affordable energy is a key foreign policy objective of this Administration. Renewable energy sources can go a long way toward breaking the "addiction to oil" that President Bush cited in his 2006 State of the Union Address.

The Department of State looks forward to hosting in March 2008 the ministerial-level Washington International Renewable Energy Conference (WIREC 2008). WIREC 2008 is an important opportunity for government officials and other leaders to show their commitment to renewable energy and to discuss how renewable energy advances our shared goals for climate, sustainable development, and energy security.

The Department welcomes the strong support of the American Council on Renewable Energy in making this conference possible. The Administration remains committed to diversifying our nation's energy portfolio and recognizes the need to work in partnership with non-governmental leaders to harness the creativity and entrepreneurial spirit of all stakeholders. Thank you for your important work on one of the significant global challenges of our time.

Sincerely,
Condoleezza Rice

Mr. Mike Eckhart, President;
American Council on Renewable Energy
1629 K Street NW, Suite 210,
Washington, D.C. 20006.



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April 21, 2007

Friedman Multi-media on "The Power of Green"

Thomas L. Friedman is an author, journalist, and visionary who has earned recognition as the foremost commentator of the Green Energy "revolution."

And revolution it is - on many levels. It could be argued that, while military might is still necessary to contain crises, all-out wars are an anachronism - a victim of the Law of Unintended Consequences and instantaneous worldwide communication. "All-out" is now analogous with "suicidal" and has been relegated to "terrorism." If you want to stage a sustainable revolution in the new millennium your only option is through economic evolution and industrial redevelopment.

Friedman is a voracious student on the subject of world economic trends - traveling the globe, interviewing people with insight, and witnessing the causes and consequences of our folly. He also writes stimulating articles and books, full of heat and light, on the present and future challenges that face generations that haven't even been born yet. His 2005 book The World is Flat: A Brief History of the 21st Century is a must read that was updated in April of 2006.

In last weekend's New York Times Magazine, Friedman offered his latest insights on geopolitics, energy, and the green revolution - The Power of Green. In case you are reading this after the article has been archived, you can still see the The Power of Green Video.

Discovery Channel is premiering Green: The New Red, White and Blue, a documentary featuring his reporting on green technology, on Saturday, April 21 at 9 p.m.

New York Times columnist Thomas Friedman travels the globe to unravel the tangled web of where we get our energy, and what we can do about the carbon footprint producing and consuming that energy. He visits the front lines of a revolution taking shape.

Another access hub of Friedman multimedia is, of course, YouTube which has an assortment of interviews with the author. One highlights The Case for Businesses Going Green but there are other ones that focus on themes developed in his books regarding the economics of globalization, answers to our addiction to oil, and Muslim attitudes toward their leaders and their occupiers.

Thomas L. Friedman doesn't have all the answers but he asks great questions and has earned his position for asking them of the right people. His synthesis of interwoven global issues is his most stimulating talent.

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April 20, 2007

D.O.E. to fund ADM/Purdue cellulosic ethanol project

Archer Daniels Midland Company (ADM) is a highly visible producer of biofuels utilizing corn kernels as feedstock for sugar fermentation to ethanol. It should come as no surprise that they have a vested interest in the successful commercialization of new technologies that will advance fermentation on other sources of agricultural feedstock - initially the residuals of corn conversion, eventually other crops and their residuals.

Their joint venture with Purdue on R&D of commercial-scale cellulosic ethanol fermentation using new, highly-efficient yeast is a logical direction for them to take. Here is a recent press release concerning D.O.E. funding of part of this important R&D...

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Joint ADM and Purdue University Cellulosic Ethanol Project Selected For Funding By U.S. Department Of Energy

April 16, 2007 - A joint BioEnergy project of Archer Daniels Midland Company (NYSE: ADM) and Purdue University has been selected to receive funding by the U.S. Department of Energy to further the commercialization of cellulosic ethanol. Specifically, the Purdue-ADM project is focused on commercializing the use of highly-efficient yeast which converts cellulosic materials into ethanol through fermentation.

“As the global leader in BioEnergy, we are able to leverage our biofuel production and agricultural processing expertise to advance the development of cost-efficient processing technologies, including those that will turn cellulosic materials into ethanol and other co-products,” stated Tom Binder, President-ADM Research.

“One of our goals is to reduce the cost of the process and make it applicable for commercial production,” said Nancy Ho, the principal investigator and a researcher in Purdue’s Laboratory of Renewable Resources Engineering (LORRE).

The development of improved fermentation organisms is a crucial step in the commercialization of cellulosic ethanol. In order to be cost-efficient and work in commercial-scale processing, such organisms must be able to produce high concentrations of ethanol from hexose and pentose sugar streams that can be derived from a wide range of plant lignocellulosic material, such as fibers, hulls, straws, soft and hardwoods.

The research team will include scientists from Purdue and from ADM. The joint project will receive federal funding, beginning this fiscal year and ending in fiscal year 2010, subject to Congressional appropriations. The Purdue-ADM project was selected, along with four other projects, by the Department of Energy for federal funding to develop improved fermentation organisms.

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April 12, 2007

EPA releases comprehensive Renewable Fuel Standard (RFS) program

The Bush administration took an important step toward toward the achievement of his "Twenty in Ten" goals April 10th when his Environmental Protection Agency announced the establishment of its first comprehensive Renewable Fuel Standard (RFS) program and modernization of the CAFÉ standards.

The impact on the renewable fuels industry should be considerable because it assures a ready and growing market for the RD&D and products of emerging technologies in ethanol production, biomass conversion, renewable electricity generation, automobile redesign, and industrial emissions reduction. Those are the most direct impacts. Indirectly it could serve to stimulate job growth and the economy in other ways while reducing energy waste and pollution. Some of the biggest positive impacts will be felt in rural communities.

Here is the entire press release as it appears on the EPA Newsroom website...

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Bush Administration Establishes Program to Reduce Foreign Oil Dependency, Greenhouse Gases

Washington, D.C. – April 10, 2007) In step with the Bush Administration’s call to increase the supply of alternative and renewable fuels nationwide, the U.S. Environmental Protection Agency today established the nation’s first comprehensive Renewable Fuel Standard (RFS) program.

At a press conference today, EPA Administrator Johnson, joined by Energy Secretary Samuel Bodman and National Highway Traffic Safety Administrator Nicole Nason, discussed the RFS program, increasing the use of alternative fuels and modernizing CAFÉ standards for cars.

“The Renewable Fuel Standard offers the American people a hat trick – it protects the environment, strengthens our energy security, and supports America’s farmers,” said EPA Administrator Stephen L. Johnson. “Today, we’re taking an important first step toward meeting President Bush’s “20 in 10” goal of jumping off the treadmill of foreign oil dependency.”

"Increasing the use of renewable and alternative fuels to power our nation's vehicles will help meet the President's Twenty in Ten goal of reducing gasoline usage by 20 percent in ten years," Secretary Bodman said. "The Administration's sustained commitment to technology investment will bring a variety of alternative fuel sources to market and further reduce our nation's dependence on foreign sources of energy."

“While we must look at increasing the availability of renewable and alternative fuels, we must also continue to improve the fuel efficiency of our passenger cars and light trucks,” said Nicole R. Nason, Administrator of the National Highway Traffic Safety Administration. “As a part of the President’s “20 in 10” energy security plan, we need Congress to give the Secretary of Transportation the authority to reform the current passenger car fuel economy standard.”

Authorized by the Energy Policy Act of 2005, the RFS program requires that the equivalent of at least 7.5 billion gallons of renewable fuel be blended into motor vehicle fuel sold in the U.S. by 2012. The program is estimated to cut petroleum use by up to 3.9 billion gallons and cut annual greenhouse gas emissions by up to 13.1 million metric tons by 2012 -- the equivalent of preventing the emissions of 2.3 million cars. The RFS is an important first step toward meeting President Bush’s call on our nation to reduce gasoline use by 20-percent within 10 years by growing our renewable and alternative fuel use to 35 billion gallons by the year 2017.

The RFS program will promote the use of fuels such as ethanol and biodiesel, which are largely produced from American crops. The program will create new markets for farm products, increase energy security, and promote the development of advanced technologies that will help make renewable fuel cost-competitive with conventional gasoline. In particular, the RFS program establishes special incentives for producing and using fuels produced from cellulosic biomass, such as switchgrass and woodchips.

The RFS program requires major American refiners, blenders, and importers to use a minimum volume of renewable fuel each year between 2007 and 2012. The minimum level or “standard” which is determined as a percentage of the total volume of fuel a company produces or imports, will increase every year. For 2007, 4.02 percent of all the fuel sold or dispensed to U.S. motorists will have to come from renewable sources, roughly 4.7 billion gallons.

The RFS program is based on a trading system that provides a flexible means for industry to comply with the annual standard by allowing renewable fuels to be used where they are most economical. Various renewable fuels can be used to meet the requirements of the program. While the RFS program establishes that a minimum amount of renewable fuel be used in the United States, more fuel can be used if producers and blenders choose to do so.

The RFS brings the nation closer to President Bush’s Twenty in Ten goal to reduce gasoline consumption 20 percent in ten years. To achieve this goal, the Bush Administration’s Alternative Fuel Standard (AFS) proposal builds on the RFS and requires use of 35 billion gallons of renewable and alternative fuels in 2017 - nearly five times the RFS target of 2012. The AFS proposal will displace 15 percent of projected annual gasoline use in 2017 through the use of fuels, including corn ethanol, cellulosic ethanol, biodiesel, methanol, butanol, hydrogen, and other alternative fuels. The Twenty in Ten plan also calls for reforming and modernizing CAFÉ standards to increase the fuel economy of cars. This will reduce projected annual gasoline use by up to 8.5 billion gallons, a further 5 percent reduction that will bring the total reduction in projected annual gasoline use to 20 percent. President Bush has called on Congress to act on these proposals by the start of the summer driving season this year.

For more information: http://www.epa.gov/otaq/renewablefuels/

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April 4, 2007

Latin America's Blueprint for Green Energy

The IDB commissioned Garten Rothkopf, a consulting firm which works with corporations on long-term global strategies, to perform an analysis that would serve as a blueprint to its development of energy technologies in the Americas.

What is the IDB? According to their website. "The Inter-American Development Bank was established in 1959 as a development institution with novel mandates and tools. It is the main source of multilateral financing for economic, social and institutional development projects and trade and regional integration programs in Latin America and the Caribbean. It is the oldest and largest regional development bank."

This report begins with the major trends in global energy: the drivers of demand, the constraints on supply, and the twin imperatives of energy security and emissions reductions. The promise of biofuels is then assessed relative to the leading alternative technologies in the transport sector: hydrogen fuel cells and coal liquefaction. This is followed by the “Global Biofuels Outlook 2007”, an assessment of the state of biofuels in 50 countries on 6 continents, highlighting the critical areas of government policy, productive capacity, private sector investment, and research and development.

The report concludes with a blueprint for green energy in the Americas. This strategic blueprint is organized around the four pillars that they project will drive and shape competition and demand: innovation, capacity expansion, infrastructure, and building global markets.

The basic thesis is clear:

Coordination between the government, private sector, universities, and research institutions to strengthen the connection between the scientific research activities and practical technological needs of the sector is critical.


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A Blueprint for Green Energy in the Americas
Strategic Analysis of Opportunities for Brazil and the Hemisphere
Featuring: The Global Biofuels Outlook 2007
Prepared for the Inter-American Development Bank

We are in the midst of a sustainable energy and climate change revolution, directly linked to the other major transformational trends of our time-the rise of the world's emerging economies, the world's rapid urbanization and the revolution in biotechnology. While not a panacea, biofuels represent one important choice in an increasing array of energy options. They have a significant role to play in the reduction of greenhouse gas emissions from transport, developing rural economies, and attracting private sector investment.

This study, prepared by Garten Rothkopf for the Inter American Development Bank, seeks to cut through the hype surrounding biofuels, and alternative energy writ large, and present an objective, fact-based analysis of the region's global competitive position looking forward to 2020. It includes the most extensive study done to date on the global biofuels market, including 50 countries. The report also focuses on the challenges that lie ahead, from ensuring that the choices made are sustainable in terms of their environmental and social impact to recognizing that unprecedented investment and innovation will produce new competitive forces that will require all who would lead to adapt or fall behind.

The growth of biofuels will favor countries with long growing seasons, tropical climates, high precipitation levels, low labor costs, low land costs, as well as the planning, human resources, and technological know how to take advantage of them. Latin America and Caribbean, led by Brazil, already produces 40% of the world's biofuels and is uniquely positioned to take advantage of this growing industry.

"A Blueprint for Green Energy in the Americas" offers a strategic blueprint for IDB activities in the region, to serve as the basis for even more focused and policy-oriented studies in the future.

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March 10, 2007

ACORE wins BIG in Vegas

What a difference a year makes! The American Council on Renewable Energy (ACORE) deserves strong praise for its 2006-2007 accomplishments as facilitators of America's emerging technologies development.

This year's Power-Gen Renewable Energy & Fuels conference in Las Vegas (March 5-8) was a "candy store" of information and networking opportunities for anyone interested in learning about emerging technologies in the renewable energy field. If this is an indication of ACORE's trajectory, anyone who reads this blog should make a point to attend next year - roughly the same time and city as this year. Not only was there greater exhibitor diversity and maturity but current events leading up to the conference imbued it with a heightened sense of importance and urgency.

Networking opportunities for the conference registrants abounded starting with tours to Hoover Dam and local desert solar arrays. Other receptions featured industry luminaries like former CIA Director James Woolsey.

I spent most of my time attending workshops and conference sessions dealing with biomass and conversion issues. Solar, wind, ocean wave, and geothermal technological development were also prominent on the agenda.

The Biomass Coordinating Council held its 2nd annual pre-conference meeting on Monday, March 5th. In comparison to last year (where attendees made brief introductions and discussed general topics in a round table configuration) this year its venerated and dynamic committee chairman, Bill Holmberg, organized a compelling string of ten joint presentations conducted by thirty of the participants. Topics included: Biomass in Developing Countries, Sustainability, Rural Development, Multifuel Engines and Biofuels, Soil Enrichment, Fast Growing Trees, Prison Industries, and Cellulosic Ethanol - the Future of BioFuels.

For my part, I co-presented - with Barbara Bramble of the National Wildlife Federation (NWF) and Doug Durante of the Clean Fuels Development Coalition (CFDC) - a discussion of how our Communications Working Group would foster networking, education, promotion, and feedback over the coming year.

Barbara focused on the NWF-supported BioEnergy WIKI that her organization inaugurated several months ago. It typifies the kind of innovation that will help move BCC collaborative tasks forward - online, user-written, informative, and topical. Be sure to visit it and bookmark it now. It will become the BCC/Communication Working Group's primary means of communication this year.

CFDC has been a major producer of focused publications that are used throughout Congress and industry to help foster understanding of clean fuels technologies, policy issues, and opportunities.

Navigant Consulting's extremely knowledgeable experts ran a pre-conference workshop that was worth the price of admission called "Uncovering the Full Renewable Energy Potential." Their work on the Bioenergy Action Plan for California was a key determinant leading to this year's passage of various progressive energy policies by its "action" Governor, Arnold Schwarzenneger, and the state legislature. At the conference they gave attendees their insight about: Technologies, Economics, and Markets; Biofuels Today and Tomorrow, and Renewable Energy Project Development. These experts (Richard Germain, Michele Rubino, Ryan Kotafsky, and Lisa Frantzis) are a must-see at the many events they attend around the country.

Navigant is conducting a comprehensive, multi-client study called "The (Re-) Emerging Bioenergy Economy" which will focus on the true potenital of bioenergy in the U.S. It is aimed, and priced, for strategic involvement and utilization by subscribing companies who will be introduced to the study, kept informed during development, and receive key findings in a presentation style report. Approximately eight weeks after the final meeting, NCI staff will offer one-and-one-half day follow-up meetings with a tailored presentation for each company. Subscription details are available by contacting Richard Germain.

Introduced by Jackie Jones of conference owner and producer PenWell Corporation at the keynote address, Michael Eckhart, President of ACORE, cited a Thomas Friedman quotation certain to be repeated often this year - "Green is the new Red, White, & Blue" - which identifies the patriotic fervor of the movement as well as its broad based support (among both "red" and "blue" states). He then introduced luminaries from each of the major renewable technologies represented at the conference - Alec Dreyer from Horizon Wind Energy LLC, Cameron "Mac" Moore from Germany-based Coenergy Group, Dr. Dan Arvizu from the National Renewable Energy Lab, and Dave Vander Griend from ICM, Inc. Nevada Governor Jim Gibbons also made an impassioned case for relocating businesses to Nevada - "No taxes!"

Ethanol naysayers take note - with the U.S. Department of Energy's (DOE) announcement of over $385 million in matching grants for 6 cellulosic ethanol plants around the country, there is little debate now about the net energy balance of ethanol. At one session on Advanced BioFuels Technologies, Michele Rubino of Navigant oversaw a panel that included two winners of the grants - Abengoa Bioenergy, and BlueFire Ethanol - and Seth Snyder of Argonne National Labs. Much of the presentation focused on a comparison of biochemical vs. thermochemical conversion processes and how they would be deployed in upcoming installations.

Jim Stewart of BRI, a third CE plant DOE grant recipient, made a presentation at the BCC workshop about BRI syngas fermentation technology - the advantages and benefits of its unique bioreactor process. He also drew attention to my BioEnergy BlogRing with a very generous testimonial. Thank you, Jim!

There was more interest expressed this year than last concerning the variety and quantity of biomass feedstock available for conversion. With the transitioning emphasis from corn to cellulosic ethanol feedstocks, there was a number of speakers who mentioned the untapped potential of woody biomass. It may be surprising to learn that the forestry and paper mill industries have been the largest producers of renewable energy in America - accounting for roughly 44% of the total. This production is generally unseen because the privat companies that produce it also use it - to avoid the expense and reliance on external, public sources of energy. The anticipated renaissance of the forestry industry will play a crucial role in our ability to meet renewable energy goals in the coming decades. It was heartening to see the wood industry sector receive some of the recognition it deserves.

One of the last presentations of the day was devoted to promotion of the 25x'25 Vision:
By 2025, America's farms, forests and ranches will provide 25 percent of the total energy consumed in the United States, while continuing to produce safe, abundant, and affordable food, feed and fiber.

National Co-chair Read Smith was joined by summit program committee member Richard Hahn to advance the goals of the organization as well as promote the upcoming 25x'25 Summit in Washington, D.C. March 20-21 at the Fairmont Hotel.

The agenda for the 25x'25 Summit is now posted on their website and it consists of a who's who of renewable energy, some who were not in attendance at the Power-Gen show including keynote speaker Vinod Khosla of Khosla Ventures, David Morse of the Institute for Local Self-Reliance, various Senators and Congressmen, and Thomas Friedman of the N.Y. Times (invited).
PLEASE NOTE: I plan to be at both the 25x'25 Summit and the BIO World Congress on Industrial Biotechnology and Bioprocessing from March 22-24 in Orlando, Florida. Please notify me if you will be attending - I'd love to see you there.


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February 28, 2007

U.S. DOE backs funding of six cellulosic ethanol biorefinery projects

U.S. Department of Energy (DOE) Secretary Samuel W. Bodman hosted a press conference today to announce selection of six cellulosic ethanol biorefinery projects that will contribute to the President’s goal of reducing U.S. gasoline consumption by 20 percent in ten years (President’s Bush’s Twenty in Ten Initiative).

The government's matching fund program was considered by many to be a necessary step to get cellulosic ethanol off the ground. With six separate initiatives being pursued by private industry, the better technologies will "rise to the top." Each is sited in a different region of the country using a broad array of feedstock - a testament to the universality of the bioconversion approach.

The project winners are a who's who of developers that have been chronicled on this BIOconversion Blog over the past year and a half. For more information on them, use the search engine at the top of this webpage.

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DOE Selects Six Cellulosic Ethanol Plants for Up to $385 Million in Federal Funding
Funding to help bring cellulosic ethanol to market and help revolutionize the industry

WASHINGTON, DC – U.S. Department of Energy (DOE) Secretary Samuel W. Bodman today announced that DOE will invest up to $385 million for six biorefinery projects over the next four years. When fully operational, the biorefineries are expected to produce more than 130 million gallons of cellulosic ethanol per year. This production will help further President Bush’s goal of making cellulosic ethanol cost-competitive with gasoline by 2012 and, along with increased automobile fuel efficiency, reduce America’s gasoline consumption by 20 percent in ten years.

“These biorefineries will play a critical role in helping to bring cellulosic ethanol to market, and teaching us how we can produce it in a more cost effective manner,” Secretary Bodman said. “Ultimately, success in producing inexpensive cellulosic ethanol could be a key to eliminating our nation’s addiction to oil. By relying on American ingenuity and on American farmers for fuel, we will enhance our nation’s energy and economic security.”

Today’s announcement is one part of the Bush Administration’s comprehensive plan to support commercialization of scientific breakthroughs on biofuels. Specifically, these projects directly support the goals of President Bush’s Twenty in Ten Initiative, which aims to increase the use of renewable and alternative fuels in the transportation sector to the equivalent of 35 billion gallons of ethanol a year by 2017. Funding for these projects is an integral part of the President’s Biofuels Initiative that will lead to the wide-scale use of non-food based biomass, such as agricultural waste, trees, forest residues, and perennial grasses in the production of transportation fuels, electricity, and other products. The solicitation, announced a year ago, was initially for three biorefineries and $160 million. However, in an effort to expedite the goals of President Bush’s Advanced Energy Initiative and help achieve the goals of his Twenty in Ten Initiative, within authority of the Energy Policy Act of 2005 (EPAct 2005), Section 932, Secretary Bodman raised the funding ceiling.

“We had a number of very good proposals, but these six were considered ‘meritorious’ by a merit review panel made up of bioenergy experts. So I thought it would be best to front-end some more funding now, so that we could all reap the benefits of the President’s vision sooner,” Secretary Bodman said.

Combined with the industry cost share, more than $1.2 billion will be invested in these six biorefineries. Negotiations between the selected companies and DOE will begin immediately to determine final project plans and funding levels. Funding will begin this fiscal year and run through FY 2010. EPAct authorized DOE to solicit and fund proposals for the commercial demonstration of advanced biorefineries that use cellulosic feedstocks to produce ethanol and co-produce bioproducts and electricity.

The following six projects were selected:

1. Abengoa Bioenergy Biomass of Kansas, LLC of Chesterfield, Missouri, up to $76 million.
The proposed plant will be located in the state of Kansas. The plant will produce 11.4 million gallons of ethanol annually and enough energy to power the facility, with any excess energy being used to power the adjacent corn dry grind mill. The plant will use 700 tons per day of corn stover, wheat straw, milo stubble, switchgrass, and other feedstocks.
Abengoa Bioenergy Biomass investors/participants include: Abengoa Bioenergy R&D, Inc.; Abengoa Engineering and Construction, LLC; Antares Corp.; and Taylor Engineering.

2. ALICO, Inc. of LaBelle, Florida, up to $33 million.
The proposed plant will be in LaBelle (Hendry County), Florida. The plant will produce 13.9 million gallons of ethanol a year and 6,255 kilowatts of electric power, as well as 8.8 tons of hydrogen and 50 tons of ammonia per day. For feedstock, the plant will use 770 tons per day of yard, wood, and vegetative wastes and eventually energycane.
ALICO, Inc. investors/participants include: Bioengineering Resources, Inc. of Fayetteville, Arkansas; Washington Group International of Boise, Idaho; GeoSyntec Consultants of Boca Raton, Florida; BG Katz Companies/JAKS, LLC of Parkland, Florida; and Emmaus Foundation, Inc.

3. BlueFire Ethanol, Inc. of Irvine, California, up to $40 million.
The proposed plant will be in Southern California. The plant will be sited on an existing landfill and produce about 19 million gallons of ethanol a year. As feedstock, the plant would use 700 tons per day of sorted green waste and wood waste from landfills.
BlueFire Ethanol, Inc. investors/participants include: Waste Management, Inc.; JGC Corporation; MECS Inc.; NAES; and PetroDiamond.

4. Broin Companies of Sioux Falls, South Dakota, up to $80 million.
The plant is in Emmetsburg (Palo Alto County), Iowa, and after expansion, it will produce 125 million gallons of ethanol per year, of which roughly 25percent will be cellulosic ethanol. For feedstock in the production of cellulosic ethanol, the plant expects to use 842 tons per day of corn fiber, cobs, and stalks.
Broin Companies participants include: E. I. du Pont de Nemours and Company; Novozymes North America, Inc.; and DOE’s National Renewable Energy Laboratory.

5. Iogen Biorefinery Partners, LLC, of Arlington, Virginia, up to $80 million.
The proposed plant will be built in Shelley, Idaho, near Idaho Falls, and will produce 18 million gallons of ethanol annually. The plant will use 700 tons per day of agricultural residues including wheat straw, barley straw, corn stover, switchgrass, and rice straw as feedstocks.
Iogen Biorefinery Partners, LLC investors/partners include: Iogen Energy Corporation; Iogen Corporation; Goldman Sachs; and The Royal Dutch/Shell Group.

6. Range Fuels (formerly Kergy Inc.) of Broomfield, Colorado, up to $76 million.
The proposed plant will be constructed in Soperton (Treutlen County), Georgia. The plant will produce about 40 million gallons of ethanol per year and 9 million gallons per year of methanol. As feedstock, the plant will use 1,200 tons per day of wood residues and wood based energy crops.
Range Fuels investors/participants include: Merrick and Company; PRAJ Industries Ltd.; Western Research Institute; Georgia Forestry Commission; Yeomans Wood and Timber; Truetlen County Development Authority; BioConversion Technology; Khosla Ventures; CH2MHill; Gillis Ag and Timber.

Cellulosic ethanol is an alternative fuel made from a wide variety of non-food plant materials (or feedstocks), including agricultural wastes such as corn stover and cereal straws, industrial plant waste like saw dust and paper pulp, and energy crops grown specifically for fuel production like switchgrass. By using a variety of regional feedstocks for refining cellulosic ethanol, the fuel can be produced in nearly every region of the country. Though it requires a more complex refining process, cellulosic ethanol contains more net energy and results in lower greenhouse emissions than traditional corn-based ethanol. E-85, an ethanol-fuel blend that is 85-percent ethanol, is already available in more than 1,000 fueling stations nationwide and can power millions of flexible fuel vehicles already on the roads.

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