August 4, 2006

CALIFORNIA: Identifying the New Environmentalists

There is a battle raging in the halls of Sacramento over the future of waste disposal in California. In many ways identification of the true guardians of waste disposal environmentalism is being brought into question.

The crux of the debate concerns overdue changes in state regulations defining "conversion technologies" (CTs) and their place in the current waste hierarchy. The outcome of the struggle will determine whether the environmental movement to recycle the state's growing waste problem will stall or move forward. At stake are a myriad of growing public concerns - not only waste disposal but also landfill availability, global warming, gas prices, ground pollution, air pollution, electricity generation, ethanol production, environmental justice, employment, and war-related oil dependency.

On one side are "old guard" idealists of established recycling and emissions watchdog organizations and their non-scientific supporters who have built the recycling infrastructure that exists today. As much progress as has been achieved to date, recycling has only managed to handle the growth of trash in the state and has failed to divert the original volume it was set up to reduce.

On the other side are "new guard" professional environmentalists from the scientific community, universities, government boards, utilities, and industry who have been actively involved in identifying, developing, and testing new CTs. These renewable bioenergy alternatives will significantly extend the amount of waste biomass that can be recycled.

Regrettably, the idealists have become the obstructive establishment that needs to open their eyes to new CTs (like gasification and pyrolysis) and the clearcut evidence of the innovation’s problem-solving potential and emissions-free performance. In their arguments, they insist that CTs conform to standards much more stringent than those established by the Air Quality Management District. When the positive test results are provided, the data is not challenged - it is ignored - frustrating the communication process.

As Ed Begley, Jr. wrote in November, 2005 in a letter to Assemblymember Loni Hancock of the Assembly Natural Resources Committee:

I recognize and applaud my colleagues in the environmental arena for the benefits their efforts and work over these many decades of Earth Days have accomplished. Perhaps the lack of a defining difference between pyrolytic conversion and incineration has clouded the ability of the non-scientific community’s mind to understand the difference.

Please consider comparing the environmental performance of conversion technologies against other methods of recycling, such as smelting plants that are not subject to the same repressive statutory and regulatory restrictions. In addition, consider the economic impact on California’s labor force of exporting recycled materials to China, when they could be put to better use here at home.


In March 2006, a Director of the Bioenergy Producers Association, Paul Relis, wrote an enlightening article for BioCycle magazine tracing the history of recycling and its potential for the future. Mr. Relis has been a chief negotiator in support of CT legislation in Sacramento (AB1090 and AB2118).

Below is the entirety of the article he wrote...

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Conversion Technologies, Recycling and Renewable Energy subscriber only
by Paul Relis
BioCycle, Vol. 47, No. 3

With the state's recycling rate at over 50 percent but landfilled waste still high, California debates best ways to convert organic residuals into sustainable power - and get support of environmental opponents.

Paul Relis is founding Executive Director of the Community Environmental Council of Santa Barbara, California, and is now President of its Board of Directors. From 1991-1998, he was the Environmental Member of the California Integrated Waste Management Board. In 1998, he became Senior Vice President of CR&R, Inc. - a company which operates transfer stations and MRFs, and is building a green waste composting facility. He has visited conversion facilities worldwide.

THERE is a vigorous debate underway in California over whether or not to encourage the development of conversion technologies (CTs). Conversion technologies refer to systems that can thermochemically (high temperature) or biochemically (low temperature) convert solid wastes now being landfilled into energy, liquid fuels such as ethanol, or chemicals.

The debate has pitted proponents of conversion technologies, mostly very small companies who have spent decades trying to apply specific technologies such as gasification, pyrolysis, and distillation to the management of the solid waste stream against California's major environmental and recycling organizations. Why should there be such a raging debate over CTs in California that has among the most ambitious recycling laws in the nation and progressive renewable energy policy? And why is this debate important to the future of waste and materials management in the U.S.?

The roots of the California debate go back to the mid-1980s when recycling was the long unfulfilled dream of environmentalists and recycling organizations. They were pitted against the incinerator firms, financial institutions and several large local governments such as Los Angeles, San Diego and Contra Costa Counties where proposals were under consideration to build large waste-to-energy facilities that required at least several thousand tons per day of dedicated waste. The facility opponents believed that if these projects were approved, they would doom recycling and foul California's already dirty air.

By the late 1980s, incineration proposals had politically been defeated. The elimination of waste incineration as a disposal option, coupled with a projected landfill crisis in Southern California, caused the California Assembly and Senate to embrace recycling. With the support of California's governor, the nation's most ambitious recycling bill (AB 939) was signed into law in 1989.

This far reaching statute set in motion a multibillion dollar investment in a recycling collection infrastructure - undoubtedly the largest investment by any state in the country. As a result of this investment, California's near 90 percent dependency on landfill in 1990 was reduced by nearly 40 percent by 2005. According to the most recent information from the California Integrated Waste Management Board, the state's diversion rate from landfill is at 50 percent.

While AB 939 extensively promoted recycling, it was also explicitly an antiincineration bill. For the handful of incinerators that existed at the time of its passage, it limited diversion credit for these facilities and discouraged any future development of incineration. It also lumped any technologies even remotely related to incineration, such as pyrolysis and gasification, into the same category as incineration along with distillation. Consequently, for the next 15 years little, if any development of these technologies were undertaken in California.

FACTORS CONVERGE

By 2003, a convergence of factors were beginning to manifest in California that gave rise to taking another look at so called “noncombustion” thermochemical technologies such as gasification. Spiraling energy prices in California spurned on by the Enron debacle and poorly conceived deregulation of the utility industry vastly increased California's expenditures for electricity. By 2004, concerns about global warming along with the reemergence of concerns over landfill capacity, particularly in Southern California, prompted a fresh look at what role CTs might play in California's integrated waste management system.

Responding to these and other considerations, the California Integrated Waste Management Board (CIWMB) was directed by the California legislature to undertake an extensive study of CT and to report back to the legislature on the status of these technologies, their public health impacts and their compatibility or conflict with recycling. The University of California was given a prime contract to evaluate the technical, economic and health impacts of conversion technology while RTI, a private consulting firm, was assigned the task of evaluating what impacts CTs might have on the recycling collection infrastructure.

SEVEN REGIONAL CONVERSION TECHNOLOGY FACILITIES

While these studies were underway, several local governments within the state undertook their own investigations of CTs by soliciting requests for qualifications from conversion technology vendors and subjecting these requests to third party evaluations. Los Angeles commissioned its own independent studies to determine if CTs might help meet its solid waste management needs. In total, more than $3 million have been spent on studies over the past two years to probe CTs' commercial viability, their environmental risks and benefits, and their relationship to continued development of recycling in California.

The Los Angeles study, Evaluation of Alternative Solid Waste Processing Technologies, conducted by URS Corporation, found that with respect to air emissions both thermochemical and biochemical systems are “expected to result in emissions well below regulatory limits.” With respect to life cycle analysis, the study concluded that thermochemical and biochemical conversion technologies could be expected to “create significant energy savings when compared to landfilling. This energy savings results from a combination of syngas and electrical energy production, as well as from materials recovery and recycling.”

According to a recent resource management blueprint for Los Angeles, RENEW L.A., the City of Los Angeles, in spite of its 62 percent diversion rate, still generates 14,000 tons of landfilled waste - enough waste to produce 100-340 megawatts of renewable energy a day or enough electrical power for 100,000 to 300,000 households.

The plan calls for the development of seven regional CT facilities over the next 20 years and argues that these facilities will have the following benefits for the City of Los Angeles:
• Drastic reductions in truck and rail transportation of waste and their associated air quality and traffic congestion impacts;
• Conservation of limited virgin resources;
• Significant reduction in environmental impacts from landfill;
• and Generation of renewable energy.

CONVERSION TECHNOLOGIES COMPLEMENT RECYCLING INFRASTRUCTURE

The findings in the comprehensive study of CTs by the Riverside and Davis campuses of the University of California (UC) are consistent with the L.A. study with respect to environmental benefits, health concerns and renewable energy. In addition, the UC and RTI studies suggest that conversion technologies should complement, rather than conflict with, California's AB 939 recycling infrastructure. This is because most conversion facilities proposed in the state include either front end MRFs to further extract recyclables or extract recyclables within the conversion process itself. Estimates of further extraction of recyclables range from about five to 15 percent and these recyclables would come from the processing of garbage that is not currently being addressed by existing recycling programs. In cities and counties where recycling rates are already at 50 percent or greater, overall recycling rates with conversion technology could range from between the mid-50 percent range to as high as 70 percent.

The UC study found that “CTs provide the potential of converting materials that are currently landfilled into electricity, chemical, or other products such as synthetic diesel and gasoline transportation fuels.” As much as 10 percent of California's electrical demand could be met through the development of CTs. CTs could meet much of California's ethanol demand using currently disposed MSW.

The UC study states that: “Existing data and facilities in locations around the world indicated that conversion technologies can operate within constraints established by regulatory requirements…These factors indicated that it is very likely that conversion technologies with the most advanced environmental controls would be able to meet regulatory requirements in California.”

These findings were based upon extensive information on CTs gathered from around the world, particularly in Europe and Japan where the most conversion facilities exist that have used municipal wastes as a fuel source. Actual emission levels from operating facilities were obtained from government regulators in these countries rather than reliance upon industry sponsored data. In addition, several pilot facilities in the United States provided their data to the UC. Researchers from the UC were allowed to witness the actual emissions testing and review the results.

The UC study concluded that conversion technologies can meet California's regulatory requirements with respect to specific emissions concerns such as dioxins and furans, and that test results suggest that emissions would be many times below the regulatory requirements of the Federal Republic of Germany, Japan, the U.S. EPA and California's South Coast Air Quality Management District.

DEBATE CONTINUES ABOUT MOVING FORWARD

Proponents of CT point to Europe's massive commitment to curbing greenhouse emissions as a rationale for CT development in the U.S. On a personal note, I was in Berlin last winter and visited several thermochemical and biochemical systems in neighboring Brandenburg and Saxony. I met with German officials from the State of Brandenburg and the German Green Party to discuss attitudes towards conversion technologies with respect to global warming, compatibility with recycling and their ability to meet Germany's tough air and other emissions standards. In Germany, and indeed throughout the European Union, global warming is taken much more seriously than in the U.S. Since landfills are a large source of greenhouse gas emissions, the German officials I talked to expressed the position that any system that removes more material from landfill such as recycling, composting and CTs is greatly preferable to continued reliance on landfill.

However, even with these positive findings, many environmental and recycling organizations remain opposed to conversion technology and some are fighting tooth and nail to defeat any proposed facilities. Why is this so? Why would organizations identified with protecting the environment fall on the sword, so to speak, to prevent their use given the comprehensive environmental benefits that the independent studies suggest will ensue from the use of CTs? Answers to these questions from an objective standpoint remain perplexing.

Conditions have changed markedly in California since the state enacted AB 939. Unlike 15 years ago, there are thousands of collection programs for recyclables; hundreds of processing facilities now exist, and they are considered by the state and most local governments to be sacrosanct. At the same time, the state population has grown by nearly more than seven million people and there has been no reduction in per capital waste generation. Disposal remains at nearly 40 million tons, and there is little prospect that recycling programs will grow to significantly impact this figure over the next decade. Meanwhile California faces acute energy shortages in the form of electricity, and it has virtually no in-state sources of ethanol to meet its liquid fuel requirements. Landfills remain one of the largest sources of greenhouse emissions in a state that has an expressed public policy to reduce greenhouse emissions. CTs offer among the few viable means of responding to these critical environmental needs.

In spite of the impartial studies by the state's most esteemed research university, in spite of actual emission test results using post-MRF municipal solid waste (MSW) from California, in spite of the evidence that CTs can contribute significantly to the reduction of greenhouse gases and improve air quality by reducing the transportation of solid waste throughout the state, opposition to CTs by the state's environmental and recycling organizations remains intractable.

At the time of this writing, legislation is being considered that would make conditions for the development of conversion technologies feasible. Negotiations are in progress to try to move this legislation to move forward. Whether these negotiations will prove successful or not, remains to be seen. The outcome will have important implications for the State of California. And to the degree that California is a trend setting state, to the rest of the nation.



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August 3, 2006

The Benefits of Conversion Technologies


The Los Angeles City Council hired URS Corporation to make a study, HEALTH IMPACTS OF CONVERSION TECHNOLOGIES IN CALIFORNIA, to identify technologies that would help it reach its landfill diversion goals through conversion technologies. That study was released late last year.

A followup story written by Mr. Predpall has appeared in a recent issue of MSW Management magazine. Within its content is a well-written summary of the benefits of CTs (see below). I have also included his identification of the California opposition to them - which concurs with mine. I highly recommend reading the entire article.

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The Time Has Come for Conversion Technologies
by Dan Predpall, V.P. of URS Corp.

The benefits offered by CTs have not been publicized well. The benefits of CTs will be brought into public awareness as entities such as the city of Los Angeles and the county of Los Angeles continue to pursue development of CTs as a way to manage disposal of their residual MSW streams.

The key benefits of CTs are:

Increased Recycling. This benefit is not well recognized. The CTs under development today are being designed to process residuals from materials recovery facilities (MRFs) or trash (residuals after source separation).

These residuals still contain considerable amounts of recyclable materials that can be recovered in pre-processing. In addition, materials produced by the conversion units, such as slag and bottom ash, can be recycled. Some question why the operator would want to remove the recyclables from the input stream. The answer is simple: The facility will earn greater revenues by recycling additional metals, glass, and paper than it will by processing this material in the conversion unit, typically with a loss in overall efficiency. Further, “unrecyclable” plastics that would otherwise go to a landfill are excellent feedstocks for CTs.

Generation Of Renewable Energy. Processing MSW residuals to generate energy or green fuels qualifies in most states as a source of renewable energy. In addition, processing MSW to energy qualifies as a renewable energy under Renewable Portfolio Standards and can be used to create renewable energy credits in some states. If about one-third of the residential MSW collected annually in the city of Los Angeles were processed by CTs, about 50 MW of renewable energy could be produced.

Reduced Landfill Impacts. The byproducts created by CTs are typically very small in quantity, and inert. Therefore, the material that cannot be recycled in a CT and must be sent to a landfill will not result in impacts to the environment. The situation is quite different when MSW (or MSW residuals) are landfilled. Even modern landfills impact the environment via release of methane (a greenhouse gas) not captured by landfill gas collection, air emissions from equipment operating the landfill, and leakage through failures of landfill liners.

Offsets To Fossil Fuel Usage. CTs can generate electricity or green fuels by processing MSW. This in turn reduces the amount of fossil fuels needed to supply the energy requirement of a region. Energy savings result when the entire life cycle of the MSW collection and processing system is evaluated, and all of the energy usage and energy production and recycling benefits are considered.

The energy savings can be significant. For example, according to the California Integrated Waste Management BoardÂ’s (CIWMB) CT report to the legislature, energy savings in the Los Angeles region could be equivalent to a 150 MW power plant (this assumes treating about one-third of the total residential MSW collected annually in the City of Los Angeles).

Lower Air Emissions. The use of CTs can result in reductions in emissions of NOx, SOx, and particulates. For example, NOx emissions, which are precursors of smog, acid deposition, and reduced visibility, are primarily the result of fuel combustion processes. Through the use of CTs, NOx emissions can be avoided by displacing combustion activities and electricity production and increasing the recycling of materials.

Using similar data and assumptions as noted above, the NOx emissions avoided by building CTs in Los Angeles would be equivalent to those emitted from a 1,000-MW, gas-fired power plant.

Reduced Carbon Emissions. Carbon emissions contribute to the greenhouse effect, and, therefore, can lead to climate change. Carbon emissions result from the combustion of fossil fuels and the degradation of organics. Methane emissions from landfills represent a significant source of carbon emissions, since methane has a global warming potential about 21 times that of CO2. The use of CTs can create offsets for carbon emissions through increased recycling, diversion of organics from landfills, and displacement of fossil fuels.

Based upon data in the CIWMB report to the legislature, processing about one-third of the residential MSW collected annually in Los Angeles would reduce carbon emissions by about 1,000,000 metric tons per year.

The overall benefit of CTs is that of increased environmental sustainability. In general, environmental sustainability involves a number of issues, including:

• Reliance on renewable energy
• Improving environmental quality
• Reducing waste
• Conserving natural resources
• Responsible consumption
• Long-term focus

Therefore, the use of CTs closely complies with the goals of environmental sustainability.

Opposition.

As more CT projects are being proposed, opposition from specific groups is growing. One is the global environmental organization that opposes mass-burn incineration. This group has typically opposed CT implementation on the grounds that CTs are actually “incinerators in disguise”. This is untrue; in fact, there are many significant technological differences between CTs and mass-burn incinerators. Another opposition group is the recycling industry. This industry sees CTs as a threat to its business because it claims that CTs will process all MSW, including recyclables. As mentioned above, this is unlikely because, A.) projects under development are using MSW residuals, and B.) the value of residuals as a recycled material is higher than its value for CT processing.

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The Los Angeles Bureau of Sanitation just released a detailed assessment of conversion technologies, which can be found at Evaluation of Alternative Solid Waste Processing Technologies .


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August 1, 2006

Conversion Technologies are Available Today

I asked Jim Stewart, Chairman of the Board of the BioEnergy Producers Association to comment on the article written by Jamie Shreeve for the MIT Technology Review called Redesigning Life to Make Ethanol that I reviewed last week. The full text of his response is below...

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Jamie Shreeve's article, "Redesigning Life to Make Ethanol," in MIT Technology Review magazine overlooked the potential of producing ethanol from organic waste materials and hydrocarbons. The processes that have achieved this major environmental breakthrough are known as "conversion technologies"--and they are ready for commercialization today. Through the conversion of organic waste materials, ethanol can now be produced for less than one-third of today's national average cost of regular gasoline, even if the federal and state subsidies were phased out.

Conversion technologies can produce ethanol, electricity and other biobased products from such feedstocks as municipal solid waste, sewage sludge, wood waste, green waste, agricultural residues like corn stover, used tires and plastics, as well as hydrocarbons like coal and landfill methane gas. This is a generation beyond the use of purpose-grown cellulosic plant materials, which was the focus of Jamie's article.

It is estimated that 1.5 billion tons of organic waste are generated in the United States each year, not to mention that we have a 300-year supply of coal, which can now be gasified, rather than combusted, to create ethanol and electric energy.

As these technologies use waste products that otherwise would have been placed in landfills and some have the potential to co-produce electricity, they can produce ethanol while consuming zero new BTUs in the process. This makes the current discourse about the energy efficiency of ethanol obsolete. And when organic waste materials are utilized as fuel, these technologies support the natural environmental cycle of CO2 generation and recovery.

Conversion technologies could turn states like New York and California into major exporters, rather than importers, of ethanol. In California, for example, 40 million tons of post-recycled municipal solid waste are placed in landfills each year, and this is expected to grow to near 50 million tons annually by 2025. Theoretically, conversion technologies could annually co-produce some 2.7 billion gallons of ethanol (approximately three times the amount that was imported to California from the Midwest last year) and some 2500 MW of green power--just from the state's post-recycled municipal waste streams--forgetting such other potential fuels as forest thinnings, agricultural residues, sewage sludge, animal wastes, plastics, used tires and manufacturing wastes. California must dispose of 33 million used tires per year, one-third of which are put into landfills.

The concept that today's waste streams can become tomorrow's liquid and electric energy supersedes all other solutions in our quest for energy independence. There is enough organic waste generated in America every year to eliminate our dependence on foreign oil.

James L. Stewart
Chairman of the Board,
BioEnergy Producers Association

Editor's Note: Jim is also VP/Marketing of BRI Energy of Fayetteville, AR - a pioneer in conversion technology.


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July 31, 2006

July 2006 Digest

Despite being the world's leading consumer of ethanol (95% of which is imported), California cultivates very little corn. The corn that will be sugar fermented into ethanol at new in-state biorefineries will be trucked in from surrounding states. So the growth of ethanol production in California is dependent on localized deployment of biorefineries whose cellulosic feedstocks include not only agricultural and forestry waste but also unrecycled urban waste.

This sets the stage for the waste stream turf war between the entrenched recycling industry, landfill operators, and the broad-based conversion technology coalition headed by the L.A.-based BioEnergy Producers Association.

Two conferences held in Los Angeles recently provided an inside look at this turf war and are reviewed in a separate section of this month's digest.

Here is a Digest of articles posted on the BioConversion Blog during the month of July, 2006:


REVIEW: Two L.A. Alternative Energy Conferences------------
The Future of Alternative Fuels in California
Southern California Emerging Waste Technologies Forum
  
General Topics--------------
"Super Ethanol" Attracting Investment Attention
U.S. INFO: Seeking Money to Accelerate Energy Innovation
U.S. D.O.E.: Roadmap for Developing Cleaner Fuels
Research Tool for Assessing International Energy Agreements
Spinning “Gold” Out of Trash
Could Ethanol Boom Hurt the World's Poor?
Ethanol Net Energy Balance - A Response to Dr. Pimental
MIT: Redesigning Life to Make Ethanol

Vehicles-------------------
Ford Should Build Flexible Fueled, Plug in Hybrids

Around the Nation--------------
CALIFORNIA: Governor Announces BioEnergy Action Plan
CALIFORNIA: The Future of Alternative Fuels in CA?

Around the World--------------
BRAZIL: Impact of the Ethanol Gold Rush
INDONESIA: $22 Billion on Biofuels by 2010
ASIA: Linking Asian Climate Change to Energy Future
EUROPE: Report on Bioenergy and the Environment


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July 30, 2006

Ford Should Build Flexible Fueled, Plug in Hybrids

From the Ford Bold Moves: Documenting the Future of Ford website comes a point/counterpoint set of two articles soliciting reader opinions on whether Ford should focus its immediate attention on developing flex-fuel, plug-in hybrid technology or fuel cells and hydrogen.

If you read an article posted here April 3, titled Plug-in Partners National PHEV Initiative you'll already know this blog's answer to that question. It is good to read an expert's opinion on the subject. Below are some excerpts:

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Ford Should Build Flexible Fueled, Plug in Hybrids
by David Morris

When Ford introduces its flexible fueled Escape hybrid, two-thirds of the technological foundation for an oil free future will be in place. The final piece? Enabling the grid system to recharge the hybrid's batteries.

Today's hybrids reduce gasoline consumption by 25-30 percent. That is a worthy achievement in its own right. But plug-in hybrids could decrease gasoline consumption by 50-80 percent. Why? Because electric motors are inherently more efficient than internal combustion engines, and because only 4 percent of our electricity is generated by oil.

Add an engine powered by biofuels and Ford could virtually eliminate the use of oil in its vehicles.

Biofuels have their own Achilles heel. The planet could grow only enough plant matter to supply 25-30 percent of our transportation energy, no matter what the feedstock.

A plug-in hybrid with a biofueled engine overcomes this shortcoming. Electricity will become the primary propulsion force. The amount of engine fuel can drop by two-thirds, or more. Sufficient land area is available to grow the biomass needed to supply 100 percent of this reduced consumption, without diminishing our food supply.

A flexible fueled, plug-in hybrid strategy could yield dramatic short-term results. The electricity distribution system is in place. The nation has sufficient off-peak electricity capacity to power more than 20 million vehicles without building a single new power plant. Converting a Ford Escape to a plug-in hybrid does not require technological breakthroughs.

Six million flexible fueled cars are currently on the road. The incremental cost to Ford of making a flexible fueled car might be as little as $100. Such a tiny cost should encourage the government to require all new vehicles be flexible fueled starting in 2009.


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July 29, 2006

Southern California Emerging Waste Technologies Forum

On July 27, 2006, the UCLA Hydrogen Energy Research Consortium played host to roughly 250 area “stakeholders” at The Southern California Emerging Waste Technologies Forum. Mayor Antonio Villaraigosa, State Senator Richard Alarcon, Assemblywoman Cindy Montanez, Councilman Greig Smith, and the City and County agencies responsible for public works and sanitation were among the sponsors. The list of speakers, their bios, and most of their presentations are available online along with the forum's agenda.

The purpose of the meeting was to provide Southern California waste and energy stakeholders the opportunity to learn about Conversion Technologies (CTs) and their potential for helping the state cope with its growing waste disposal problem in light of dwindling landfill alternatives. Also discussed was the potential of capturing the energy content of the waste material to help allay California’s gas import, ethanol import, electricity production, budgetary, employment and pollution problems.

The centerpiece of the forum is the Los Angeles City Council’s ambitious and well-researched RENEW L.A. program, a 20-year plan to divert waste from the county’s numerous landfills to biorefineries. These clean facilities convert roughly 80% of the unrecyclable trash to energy (most likely ethanol) and electricity, drastically reduce greenhouse gases from landfills and waste transport, create skilled "green collar" jobs throughout the city, while they enhance environmental justice in Los Angeles County. The plan was passed unanimously in March of this year and has earned the support of the Mayor's office. Furthermore, it is fully in compliance with the Governor's recently signed BioEnergy Action Plan.

The current obstacle to implementation is state legislature (specifically the Assembly Natural Resources Committee and the Senate Environmental Quality Committee) where for two years proponents have been unable to get action on even the simplest of changes in statute to correct scientifically inaccurate definitions that govern the permitting of these technologies.

The afternoon session was organized around a lively panel discussion of the 5 issues deemed crucial to implementation of CTs in California: What is the best way to achieve zero waste? Can emissions from landfills and CTs be mitigated? How can environmental justice best be achieved? What is the economic viability of CTs? What role do CTs play in energy sustainability?

For approximately 3/4 of the panelists and a sizeable majority of the audience, the need and viability of CTs is not questioned. The status quo of processing and trucking a growing volume of waste to fewer landfills at greater distances mandates that existing CTs be evaluated and deployed in carefully monitored stages to implement the timetable of the RENEW LA plan. Through the cooperation of government, universities, and industry, any problems that occur during deployment can be resolved, but at no time will existing recycling programs be reduced or regional emissions statutes be violated. Indeed, recycling will enhanced dramatically and existing emissions data demonstrates that CTs will provide significant improvement in the reduction of toxins and greenhouse gases.

Among those opposing implementation of CTs was Californians Against Waste (CAW). CAW has been actively involved in the development, negotiation and passage of waste reduction and recycling legislation in California. However, CAW strongly believes there is no basis for counting CTs as recycling at this time and that CTs will, through success, gradually reduce recycling efforts in the state.

Other environmental groups, none of which have expressed any interest in learning about the environmental advances of 21 Century CT technologies, attempted to promote skepticism about the emissions impact of CTs on the health in local communities - objective UC/CE-CERT measurement of emissions data notwithstanding.

The only alternative to CTs offered by its opposition was "source reduction" - reducing the amount of products going to waste by simultaneously educating the public on more efficient waste reduction practices and enforcing new legislation and enforcement policies - requiring manufacturers to redesign their packaging to eliminate waste or take responsibility for the waste disposal of products they sell.

My opinion

1 - The rate at which recycling can increase by source reduction alone is not likely to exceed the amount of additional waste entering the system. Meanwhile, RENEW L.A. is moving forward so that, within 20 years, L.A. will no longer be dependent on landfills for waste disposal. Without the permitting and deployment of CTs, waste disposal in California will become increasingly expensive and environmentally dangerous.

2 - CTs represent a true opportunity to not only expand recycling through mass reduction and conversion into useful products (like electricity, ethanol, and "green" chemicals) but also help California meet its bioenergy goals in the Governors BioEnergy Action Plan.

3 - AB 2118 should be negotiated in good faith with the BioEnergy Producers Association input, and passed immediately so that the investment, R&D and deployment permitting of clean CTs in California can proceed apace.

4 - Only through deployment will the final processes be refined and required emissions data be collected. All parties can be assured that through constant monitoring, new facilities will meet every emissions requirement or they will be shut down until they do.

5 - California is a "can do" state that needs to take advantage of new opportunities to right its own budgetary ship and solve its landfill, waste, employment, electricity, pollution, and renewable fuels problems. Conversion Technologies will help achieve those goals.


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July 26, 2006

MIT: Redesigning Life to Make Ethanol

I highly recommend reading the current issue of MIT’s Technology Review magazine. It features a well-written Special Report called “It's Not Too Late: The energy technologies that might forestall global warming already exist.”

The writers almost got the story right - but they failed to mention what some consider the most promising short-term solution to the knotty renewable-energy-global-warming-landfill-pollution-oil import-war crisis - namely syngas fermentation. Let me explain...

In one article called The Dirty Secret David Talbot writes about the promise of gasification (using high heat in a controlled near vacuum to convert the coal into a gas) for cleaning up coal burning plants of the future. It's better than combustion because you capture the greenhouse gases before they are spewed into the atmosphere. However, you still have to actually do something clean and productive with the syngas (CO, CO2, and H2) that is produced. Talbot speculates that utilities could sell the carbon dioxide to oil companies who would pump it underground to push oil to the surface while neatly sequestering the CO2 from the atmosphere.

A separate article is called Redesigning Life to Make Ethanol. Here author Jamie Shreeve writes about exciting advances being made by biotechnology companies (like the oft-cited Canadian company, Iogen) who are coming up with new strains of enzymes that can break the chemical bonds in cellulosic material to create glucose for fermentation into ethanol by a second set of micro-organisms or yeasts. There could come a time when a single, sturdy micro-organism would be developed that could perform the feedstock-to-ethanol "alchemy" all in one step. That could be decades off but partial solutions could be implemented now - albeit with crude, expensive enzyme concoctions.

What is missing is the link between gasification in the first article with fermentation in the second. Instead of creating a super enzyme to perform two very different tasks, how about using gasification to break down the chemical bonds of the feedstock and then use a micro-organism or catalyst to convert the syngas to ethanol? Using "syngas fermentation" there are several companies that have achieved very promising results (roughly 100+gallons of ethanol per ton of biomass). BRI Energy in Arkansas, BioConversion Technology (no relation) in Colorado, and Future Fuels, Inc. in Washington, DC are companies that are pioneering this technology in pilot plants right now. All are in the process of negotiating their first commercial-scale deployments.

"It's Not Too Late" to unravel the Gordian Knot. But why don't we slice it in half instead?


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July 23, 2006

European Report on Bioenergy and the Environment

Thanks again to BioPact for bird-dogging an important EU report that "assesses how much biomass could technically be available for energy production without increasing pressures on the environment." It was written by the European Environment Agency and is called How much bioenergy can Europe produce without harming the environment?

This 72-page document provides objective analysis of feedstock available for bioenergy energy systems that convert biomass into heat, electricity, and biofuels. It provides a listing of its overall assumptions and then gives a detailed assessment of the bioenergy potential for agricultural, forestry, and waste sectors. It also provides annexes that focus on such topics as:

• Indicative comparison of crop prices for bioenergy compared to commodity prices.
• Environmental pressures by crop.
• Net calorific values (per crop).
• Possible policy measures to influence the environmental effect of bioenergy cropping.

This is a valuable, up-to-date tool that can help policymakers, marketers, environmentalists, investors, agronomists, and other stakeholders assess the potential impact, needs, and opportunities associated with bioenergy systems. Its focus is on implementation in Europe but it is clearly relevant to study for other parts of the world.


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July 22, 2006

CALIFORNIA: The Future of Alternative Fuels in CA?


As Los Angeles County sweltered through the nation's latest heatwave (an omen of global warming?) an informational hearing of the Select Committee on Air and Water Quality was conducted in Santa Monica. The purpose of the hearing was to give its panel of state legislators a quick overview of the future of alternative fuels in California.

Representatives of the California Air Resources Board (CARB) and the California Energy Commission (CEC) talked about the status of their implementation of AB 1007 (the 2005 Alternative Fuels Act). There were also presentations by an electrical utility, alternative fuels proponents, and automobile representatives about the state of development of plug-in hybrid vehicles (PHEV), ethanol flex-fuel cars (FFV), biodiesel, Hydrogen Fuel Cells (FCV), and Natural Gas Fuel Cell technology (FCX). Out in the parking lot were a number of prototype vehicles representing each of the developing fuel systems and a mockup of the innovative Phill home natural gas refueling appliance.

Missing from the presentations was any mention of waste biomass as a primary source of feedstock necessary for California to become self-sufficient in its production of ethanol. Since California is not a "corn state" (about 95% of its ethanol demand of 900 million gallons of ethanol is imported) the variety and source of other biomass to feed the front end of ethanol production is a critically important issue.

Until CA legislators recognize the central importance of the feedstock issue, the state regulations necessary to enable the financing of R&D and deployment of conversion technology (CT) will continue to flounder as they have during the last several years of debate in the California Assembly Natural Resources Committee (AB 1090 and AB 2118).

Since legitimate questions about possible harmful CT emissions have been researched and been given a clean bill of health by the independent UC/CE-CERT there is no basis for obstructive sectors of California's environmental community and landfill operations to object to new technologies that promise to reduce landfill needs, extend recycling, improve air quality, reduce oil imports, clean the environment, save water, cut greenhouse gas emissions, sequester carbon, co-generate green electricity, create jobs, and make California much more energy independent.

The panel members (particularly members of the Natural Resources Committee) who attended this meeting should join their State legislator colleagues, L.A. area politicians, utility proponents, academics, and Los Angeles area stakeholders at next week's Southern California Emerging Waste Technologies Forum. Session topics will include:

1 - "CONVERSION 101" - Panelists representing the public sector and academia will provide an overview of conversion technologies: what they are; how they work; where they might fit into our existing waste management infrastructure.

2 - “WHAT’S HAPPENING NOW” - Representatives from state and local government, community, academia, and the private sectors will discuss their experiences and the latest developments regarding conversion technologies.

3 - "L. A. STAKEHOLDER PERSPECTIVE" - A facilitated roundtable discussion of stakeholder interests representing community, environmental justice, environmental, state, regional, local, industry, and academia on the challenges and opportunities for emerging waste technologies in the City of Los Angeles.


I will review this conference next weekend.


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July 20, 2006

Ethanol Net Energy Balance - A Response to Dr. Pimental

Konrad Imielinski, author of G0G2G Blog, has provided a number of brief personal interview articles specifically focused on a series of controversial reports by Dr. David Pimentel and Dr. Tad Pazek of Cornell University (my alma mater) analyzing the net energy balance of ethanol. Entrepreneur Vinod Khosla has also issued a response.

Tad Patzek - 7/10/06
David Pimental - 7/13/06
Vinod Khosla - 7/14/06
David Pimental - 7/19/06

In his last posting, Dr. Pimental invited all to read his and Dr. Patzek's 2005 paper and forward comments. Below are mine.

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Ethanol Net Energy Balance - A Response to Dr. Pimental
By C. Scott Miller, BioConversion Blog

I have several objections to the 2005 report authored by the Dr. David Pimentel and Dr. Tad W. Patzek entitled Ethanol Production Using Corn, Switchgrass, and Wood; Biodiesel Production Using Soybean and Sunflower. I defer to Michael Wang of the Argonne National Laboratory to argue the report's specific net energy findings. My own objections to the report are the following:

1 - The authors clearly state in the first sentence that "the United States desperately needs a liquid fuel replacement for oil in the future." The authors then document their analysis of CURRENT technology input and output energy balances of the globally acknowledged best replacement fuels available - ethanol, cellulosic ethanol, and biodiesel. If we are to assume that there are no other better alternatives than these three, then the findings of the report are of limited value unless their intent is to help identify areas requiring technological improvement. Obviously, the status quo is no alternative. I saw nothing in this report to suggest that the authors recommended R&D and deployment of new ethanol production methods.

2 - Ethanol is not only an alternative fuel, it is the primary oxygenate reducing automobile pollution and replacing toxic MTBE's in gasoline today. California alone has a demand for nearly 1 billion gallons of oxygenates per year - supplied primarily by the sugar fermentation of corn. Many states are adopting new, much higher, ethanol blending standards to reduce pollution and dependence on foreign oil. To meet current regulatory mandates, we need ethanol production regardless of the net energy findings - at least double America's current production.

3 - No allowance is made for what impact technological improvements to sugar fermentation could make on the the energy balance. Furthermore, other promising ethanol distillation technologies like Fischer-Tropsch, enzymatic hydrolysis, catalytic conversion, and synthesis gas fermentation are omitted. They could at least be mentioned as technologies warranting analysis in the future.

4 - In their report, feedstock is limited to corn, sugar cane, switchgrass, and wood. New distillation technologies open the range of feedstock to not only other sources of cellulosic material but also such diverse potential feedstock as sulfurous coal, auto-fluff, tires, municipal solid wastes, sewage, rice straw, etc. Many of these feedstocks require no cultivation and are, in fact, a bane on civilization requiring disposal. Diverting them to the production of ethanol, biodiesel, and electricity would represent a net societal gain regardless of the net energy balance of their disposal.

5 - While the net energy balance of current fuel production technology is subject to argument, the simultaneous need for production infrastructure, distribution systems, fueling stations, and flex-fuel vehicles manufacture is not. Alternative liquid fuels require broad technological support and business integration within society no matter what that fuel is. Many blends of ethanol and biodiesel are already being integrated successfully in many parts of the country.

6 - Included in their report are prejudicial references to "The Food vs. Fuel Issue", "major ethics and moral issues", global health from malnutrition, corporate profit-making, the U.S. balance of payments. These issues have no place in what is purported to be an objective analysis. Equally inflammatory for ethanol proponents would be arguments concerning the incalculable human cost in wars fought over petroleum, the impact on developing countries of skyrocketing energy prices, and global warming from fossil fuel combustion.

In short, what are the changes to the status quo necessary to lead us to a liquid fuel alternative to oil and gasoline? Based on importance of the Introduction's first sentence, this topic should be addressed in the report. It wasn't.



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July 16, 2006

Could an Ethanol Boom Hurt the World's Poor?

Ethanol feedstock is usually human feedstock - meaning that most of the raw material for fermenting ethanol comes from food crops - corn, sugar cane, and grains. Because of this, the concern often arises that replacing fossil fuels with renewable fuels based on food crops would deprive the world's starving poor in favor of the super-consuming privileged classes.

There are many assumptions in the argument - that ethanol will always be made from food crops, that feedstock dedicated to fuel production would otherwise be used for food, that industry in poor regions of the world wouldn't benefit the economic and physical health in those regions.

The best debate I have seen on the subject has been posted by Laurens Rademaker of Biopact. In his article he responds to a presentation by the president of Washington D.C.-based environmental research group, Earth Policy Institute,

"This is shaping up as competition between the 800 million people in the world that own automobiles and the 2 billion low- income people in the world, many of whom are already spending over half their income on food." Lester Brown of the Earth Policy Institute


Laurens obviously disagrees and his point-by-point arguments make a persuasive case. Below is an excerpt but I recommend reading the full text of his position.

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“Ethanol boom could hurt world’s poor” - BioPact strongly disagrees

Together with the UN's FAO, which thoroughly analysed the stakes long ago and which concludes that bioenergy and biofuels can cut poverty, provide energy to the poor, reduces oil import costs for developing country governments, and opens a unique economic opportunity to connect millions of poor energy farmers to a global market where they can sell their biofuels at great competitive advantage -- we obviously disagree with the Earth Policy Institute.


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Spinning “Gold” Out of Trash


With its huge population and guilt-free car culture, California is the world's largest consumer of gasoline. By state regulation, 5.67% of the fuel pumped is actually ethanol - which is used as an oxygenate for gasoline. As a result, California is also the world's biggest consumer of ethanol - closing in on 1 Billion gallons per year.

As a rich agricultural state, one would think that there would be a huge production of corn or sugar cane to produce ethanol to meet the demand. Not so. 95% of the ethanol consumed is imported from, primarily, the Midwest by truck. There is no corn farming to speak of in California, nor will we see a sudden switch in cultivation. New ethanol plants located there will be shipping the corn in from surrounding states.

Assuming that California wants to become self-sufficient in ethanol, what will the feedstock be if not corn or sugar cane? The answer is agricultural, forestry, and urban waste. Being a heavily wooded, agriculturally rich, population booming, and super-consuming state means an incredible amount of waste. Therefore, progressive thinkers in California are looking to its waste streams to provide feedstock for the next big thing - biomass conversion of waste into biofuels including cellulosic ethanol, with the co-generation of electricity.

Such a switch couldn't come at a better time. Many professionals in the waste disposal industry recognize that major urban centers like Los Angeles will be faced with a "Peak Landfill" problem way in advance of a "Peak Oil" problem. Available land is scarce in a region of burgeoning development, NIMBYism, and accelerating waste disposal growth.

Kay Martin, Ph.D is vice president of the BioEnergy Producers Association. She directed Ventura County's solid waste programs from 1987 to 2004. She has been an active proponent of waste diversion from landfills for over a decade. She has written an incisive article about the need for landfill diversion and the potential of bioenergy production using conversion technologies. Here are some excerpts from a recent article she wrote for the Ventura County Star - a neighboring county of Los Angeles:

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S.V. Landfill has chance to spin gold out of trash
By Kay Martin

...the total amount of garbage disposed in the county and statewide has not changed much over the past 10 years, despite the best efforts of local governments, businesses and residents to recycle. Recent gains made by recycling have been largely eclipsed by the effects of population and economic growth, and this trend is expected to continue. The growing waste problem is real, and requires some strategic planning now to avert a future crisis.

...Complicating the picture of where waste will flow in the future is the disappearance of local landfills. About the same time that recycling laws were passed, the federal government imposed stringent new standards on disposal sites intended to abate air and groundwater pollution threats. These costly permitting standards contributed to a 63 percent decline in the number of landfills nationally since 1988. The trend is for fewer and larger facilities, more remote from urban centers.

Several landfills in our neighboring Southern California counties are slated for closure, and NIMBY factors have trumped attempts at siting new ones, save for expensive desert landfill options accessible only by rail.

Role for bioenergy

The factor that should weigh heaviest in decisions to expand the Simi Valley Landfill, however, is the emergence of new "bioenergy" industries that can convert about 80 percent of the materials currently going to landfills into environmentally beneficial products — green power, biofuels and a variety of chemicals that reduce our reliance on petroleum. Moreover, because these industries produce valuable commodities, they can be cost-competitive with landfills. Bioenergy plants are operating successfully in both Europe and Japan, and are in various stages of development in other parts of the United States. The central question is, should we be looking to simply bury our wastes in the decades to come, or should we take positive steps now to turn these wastes into resources that can help build a more sustainable society?

The county of Santa Barbara, and the city and county of Los Angeles are each actively engaged in procurement processes to site bioenergy facilities (so-called "conversion technologies") to reduce and ultimately to replace their dependence on landfills.


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July 15, 2006

CALIFORNIA: Governor Announces BioEnergy Action Plan

Plenty of lip service is paid to political support for bioenergy development throughout the country. As reported here, getting legislation enacted, investment secured, and deployment started is process frustrated by the many divergent societal and environmental interests that obstruct real progress.

Yet California's Governor and his Bioenergy Interagency Working Group have worked steadfastly toward identification of goals and enactment of plans to resolve impasses to real progress in the bioenergy arena. Investors should take heart in the knowledge that there is top down commitment to significant technological development within California over the next four years.

Gov. Schwarzenegger today announced the Bioenergy Action Plan which outlines ways for California to bring alternative energy into the mainstream and reduce dependency on foreign fossil fuels. He has underscored the need for a consistent and coordinated state policy on bioenergy.

Below are some specific targets for the plan.

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BioEnergy Action Plan

On April 25, 2006, Governor Arnold Schwarzenegger issued Executive Order S-06-06, establishing targets for the use and production of biofuels and biopower and directing state agencies to work together to advance biomass programs in California while providing environmental protection and mitigation. The agencies of the Bioenergy Interagency Working Group (Working Group)1 are committed to seeing these goals met. This Bioenergy Action Plan (Plan) provides the specific actions and timelines that the agencies have agreed to take to implement the Executive Order.

In response to his Executive Order, members of the Working Group commit to the following near-term actions to achieve the state’s bioenergy policy objectives and biomass production and use targets. The Working Group will also work to secure necessary resources for the activities proposed in this Plan through the State Budget Process and pursue legislative initiatives needed to achieve the intent of this Plan. These actions will create the necessary institutional and regulatory changes that will substantially increase the production and use of biomass for energy in California in a manner that benefits the economy and protects the environment.

Biomass Production and Use Targets:
1. Regarding biofuels, the state shall produce a minimum of 20 percent of its biofuels within California by 2010, 40 percent by 2020, and 75 percent by 2050.
2. Regarding the use of biomass for electricity, the state shall meet a 20 percent target within the established state goals for renewable generation for 2010 and 2020.

The Working Group has identified the following two topics for possible legislative action during the 2006 session:
1. Amend existing law to revise existing technology definitions and establish new ones, where needed. In particular, review the definitions of gasification, transformation, fermentation, pyrolysis, and manufacturing. Such statutory clarification would enable the utilization of biomass residues through combustion or non-combustion technology.
2. Amend existing law to provide incentives to local jurisdictions for energy production activities.


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July 13, 2006

INDONESIA: $22 Billion on Biofuels by 2010

From Biopact blog comes this article spotlighting the aggressive policies taken by the Indonesian government to develop a robust biofuels industry. Compared to the relative complacency of the American government, it is interesting to see how ambitiously Indonesia is willing to invest in developing new technologies, feedstocks, and infrastructure to meet its needs in the new millennium.

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Indonesia to spend a massive US$22 Billion by 2010 to Promote Biofuels


OPEC member Indonesia, a future Biofuels Superpower, has given more details [*Bahasa Indonesia] about its previously announced bioenergy crash program (earlier post). The country plans to invest a massive Rupee 200 trillion (€17.3 bn / US$22 bn) over the next five years to promote the use of alternative fuels using crops such as palm oil, cassava, jatropha and sugar cane for the production of biodiesel and ethanol Energy Minister Purnomo Yusgiantoro said.

About $6 billion will be spent securing 6 million hectares (14.8 million acres) of land, in an as-yet-unspecified location, and the rest will fund factories, roads and other supporting services, he said. Plant-based fuels can be mixed with gasoline, diesel and kerosene, now subsidized by the government.

Read more...


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July 11, 2006

Research Tool for Assessing International Energy Agreements

Energy, money, power...

Each creates opportunities. Each is dependent on the other. Each comes with a high potential for corruption.

Because cutting oil imports is a global challenge, the need for strong laws and international treaties is critically important. Fashioning legal agreements that facilitate opportunity, secure investment, protect patents, and reduce coruption, while safeguarding the environment is no easy feat - but a new online resource will help legal scholars analyze and draft new legal instruments that will pave the way for international cooperation.

The Energy & Environmental Security Initiative (EESI) is an interdisciplinary center located at the University of Colordo. They have released an online database collection of international treaties called the International Sustainable Energy Assessment (ISEA) which is a goldmine of information for policy makers, entrepreneurs, legislators, lobbyists, investors, and energy business consultants alike. As they say...

By providing information on the implementation and impacts of international energy agreements, as well as analysis regarding the efficacy such agreements in achieving their stated goals, the ISEA database will provide the information essential to distilling objectives, principles, cooperative frameworks, institutional structures, dispute settlement mechanisms, implementing machinery, and financing mechanisms capable of facilitating the development, deployment and diffusion of renewable energy, energy efficiency and energy conservation. This information is essential to helping integrate the principles of sustainable development into country policies and programs through the medium of international agreements.


The analysis of each treaty is designed to be broader than that available from other existing services. It will include global scope, international energy agreements, implementation data, REES Impact Analysis, and full searchable text of each document.

The resource is deployed with two levels of accessibility. An internal "holding bin" is accessible by password. After a treaty has been thoroughly researched, analyzed, and categorized then it is made accessible to the general public.

At right is the current (7/11/06) listing of the publicly accessible main categories and the number of documents associated with each. Those interested in Bioenergy treaties, for instance, would look under Sustainable Energy (SE) - 151, subcategory Renewable Energy (RE) - 97, subcategory Bioenergy (BE) - 1.

This resource provides significant value for corporate legal team research efforts in support of global business development. It simultaneously provides insight into current policies and restraints, while providing comparison and justification for interested parties to create, refine, and lobby for new ones.

Longterm, the ISEA database will expand to include resolutions, declarations and partnerships.


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July 10, 2006

BRAZIL: Impact of the Ethanol Gold Rush

Biopact Blog has featured a review of a new blog that offers an English language insider's look at Brazil's burgeoning ethanol industry. The author of the blog is Herique Oliveira, a U. of Michigan MBA grad student who grew up in Brazil.

As Laurens Rademakers of Biopact relates, there are numerous interesting articles at Ethablog.

The one that most interested me is one about the impact that world attention to Brazil's ethanol industry has made on that industry and the prices of related commodities and products.

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ETHANOL GOLD RUSH BEGINS IN BRAZIL

Now it's official: the ethanol gold rush is on in Brazil.

Expect the price of everything in the country related to ethanol to go up substantially in the coming weeks: land, refineries, equipment, and anything else that can be, at least hypothetically, sold to the foreigners who will come streaming into Brazil in search of the fuel the country has been using for over 30 years.

Or so hope many Brazilians, from government officials in Brasilia to farmers in the Brazilian Midwest to businessmen in the city of Sao Paulo. Ever since the June 21st. edition of "Exame" magazine, the Brazilian equivalent of "BusinessWeek", brought a cover story with the headline: "Ethanol - the World Wants It. We Have It", ethanol has been all the rage in the country.

Brazilians have seen ethanol sold at fueling stations ever since the Pro-Alcool program was created by the Federal government in 1975. To a Brazilian, filling up the tank with ethanol is no big deal - many do not see any reason for all the fuss that surrounds the fuel's introduction to markets in the U.S. and the E.U.

But they certainly see the opportunities. They have watched the convergence of factors - 9/11, the Iraq War, political instability in the Middle East, the growing climate crisis - that is associated with escalating oil prices. Now, with the Exame article, they suddenly realize that the rest of the world has no realistic alternative for the coming years but to follow the path they chose to go down 31 years ago.

But the big question I have heard since the article came out is, "Can Brazil really produce enough ethanol for the entire world?" Market insiders know that Brazil has had trouble producing enough ethanol for its own fleet of cars and light trucks, which, at about 15 million, is 23 times smaller than that of the U.S. Can Brazil then serve as energy basket to the world?

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To read Henrique's opinion on that question, continue to read the article. There are numerous other interesting articles detailing the production and marketing of ethanol in this enigmatic country (at least for most Americans).



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July 8, 2006

U.S. D.O.E.: Roadmap for Developing Cleaner Fuels

The Department of Energy has just announced the publication of an ambitious, long term, research "road map" for developing technologies for the conversion of biomass to cellulosic ethanol.

The roadmap identifies the research required for overcoming challenges to the large-scale production of cellulosic ethanol to help meet this goal, including maximizing biomass feedstock productivity, developing better processes by which to break down cellulosic materials into sugars, and optimizing the fermentation process to convert sugars to ethanol


The focus is clearly on the longterm development of enzymatic hydrolysis techniques involving enzymatic, genetic, thermochemical, and chemical R&D. The question is, what is the Department of Energy doing to support R&D and deployment of the other major processes for converting biomass to ethanol - synthesis gas fermentation including catalytic conversion of syngas to ethanol?

The D.O.E. appears to be ignoring the potential of converting a whole, vast class of feedstock and blended feedstock options (non-agricultural feedstocks including municipal solid waste, tires, sulfurous coal, etc.). In addition, they are ignoring the relative speed, ease, and cost efficiency of gasification of feedstock to break down molecular bonds prior to fermentation to ethanol. These technologies are crucial for waste diversion and urban participation in cellulosic ethanol production.

We applaud the scope of the D.O.E.'s commitment to cellulosic ethanol R&D, but focusing only on vastly more challenging and expensive processes may significantly delay the funding crucial to the R&D and deployment of more expedient bioconversion technologies. We would like to see a commensurate commitment to funding syngas fermentation and catalytic conversion process.

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DOE Publishes Roadmap for Developing Cleaner Fuels
Research Aimed at Making Cellulosic Ethanol a Practical Alternative to Gasoline

WASHINGTON, DC -- The U.S. Department of Energy (DOE) today released an ambitious new research agenda for the development of cellulosic ethanol as an alternative to gasoline. The 200-page scientific “roadmap” cites recent advances in biotechnology that have made cost-effective production of ethanol from cellulose, or inedible plant fiber, an attainable goal. The report outlines a detailed research plan for developing new technologies to transform cellulosic ethanol—a renewable, cleaner-burning, and carbon-neutral alternative to gasoline—into an economically viable transportation fuel.

“Cellulosic ethanol has the potential to be a major source for transportation fuel for America’s energy future,” Under Secretary for Science Raymond L. Orbach said. “Low production cost and high efficiency require transformational changes in processing cellulose to ethanol. DOE’s Genomics: GTL program is poised to help do just that.”

The roadmap responds directly to the goal recently announced by Secretary of Energy Samuel W. Bodman of displacing 30 percent of 2004 transportation fuel consumption with biofuels by 2030. This goal was set in response to the President's Advanced Energy Initiative.

The roadmap identifies the research required for overcoming challenges to the large-scale production of cellulosic ethanol to help meet this goal, including maximizing biomass feedstock productivity, developing better processes by which to break down cellulosic materials into sugars, and optimizing the fermentation process to convert sugars to ethanol. Cellulosic ethanol is derived from the fibrous, woody and generally inedible portions of plant matter (biomass).

The focus of the research plan is to use advances in biotechnology -- first developed in the Human Genome Project and continued in the Genomics: GTL program in the Department’s Office of Science -- to jump-start a new fuel industry whose products can be transported, stored and distributed with only modest modifications to the existing infrastructure and can fuel many of today’s vehicles.

The new roadmap was developed during a December 2005 workshop hosted jointly by the Office of Biological and Environmental Research in the Office of Science and the Office of the Biomass Program in the Office of Energy Efficiency and Renewable Energy. The success of the plan relies heavily on the continuation of the partnership between the two offices established at that workshop.

“Biofuels represent a tremendous opportunity to move our nation toward a reduced dependence on imported oil,” DOE Assistant Secretary for Energy Efficiency and Renewable Energy Alexander Karsner said. “We fully intend to use all of our resources and talent to support the President’s goal of breaking our addiction to oil, while also enhancing our energy security.”

The report, “Breaking the Biological Barriers to Cellulosic Ethanol: A Joint Research Agenda,” and a fact sheet on the report may be viewed at http://www.doegenomestolife.org/biofuels/.

For more information about the Genomics: GTL program in the Office of Biological and Environmental Research in the Office of Science, see http://www.doegenomestolife.org/. For more information on the Office of the Biomass Program in the Office of Energy Efficiency and Renewable Energy, see http://www1.eere.energy.gov/biomass/.


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July 6, 2006

U.S. INFO: Seeking Money to Accelerate Energy Innovation



The following article appears in the July 2006 issue of the State Department's electronic journal series Economic Perspectives. The complete issue, titled Clean Energy Solutions, can be viewed on the USINFO Web site.

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Aid Urged for Commercializing Clean Power-Generation Technologies

Unprecedented, massive innovation must take place to develop, commercialize, and bring to market and large-scale deployment low-carbon technologies that will revolutionize the world.

Moreover, today’s energy and climate policies alone cannot drive clean energy markets at the scale or pace necessary to solidify energy security and stabilize the climate by 2050. We must be more creative in deploying new innovation strategies for all these low-carbon options. Also, current structures for financing and commercializing innovative technologies are failing to deliver these much-needed, low-carbon technologies to market.

Only by simultaneously tackling the twin challenges of accelerating the pace of low-carbon technology innovation and creating broad-scale financing and commercialization can we achieve a planetary energy transformation.

Cellulosic biomass and biofuels: As interest in the production and use of biofuels rises, there is more use of biomass technologies, such as anaerobic digesters and gasifiers, to make power from crops, crop waste, and manure. However, the bioenergy market is relatively nascent and has a way to go to reach the point that signals the rapid and widespread adoption of biomass and biofuels technologies. Further, from a low-carbon perspective, it is widely recognized that using cellulosic (plant-based) biomass is preferable to growing dedicated crops, such as maize, to produce biofuels because harvesting and transporting the dedicated crops increases carbon dioxide emissions. Genomics research may be critical to advance this technology, but it has yet to be harnessed to develop and commercialize high-energy-producing biofuels and energy systems.

To achieve a transformation... several changes must take place:

-- Of the utmost importance, the government, academia and the private sector should coordinate research and development (R&D) with deployment and technology commercialization, rather than treat R&D as a sole area of focus.

-- Debate on low-carbon technologies should take place at various levels (international, sub-national) and within many frameworks for sub-national stakeholders, as well as the United Nations Framework Convention on Climate Change and the G8 Dialogue on Climate Change, Clean Energy, and Sustainable Development.

-- The task of reducing carbon emissions on a global scale should be distributed to all levels of the public and private sectors. This would open the door to the kind of creative problem solving that would address market shortcomings, promote low-carbon technology transfer and information sharing, foster linkages among disciplines, and produce real results.

-- Energy finance must shift aggressively toward new forms of capital accumulation to build the low-carbon energy infrastructure of the future.

-- The G8 investment framework and other forms of international collaboration must answer broader questions on technology innovation and commercialization. Gaps in the innovation chain must be filled in order to shift to low-carbon technologies in both industrialized and developing countries. To produce results, this must be coupled with a significant expansion of resources and distinct budgets. Public-private partnerships need to make it a top priority to accelerate the pace of low-carbon technology innovation and adoption.


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“Super Ethanol” attracting Investment Attention

The market curve for cellulosic ethanol is still at the "bleeding edge" stage for the simple reason that no commercial scale facilities have been deployed. It is remarkable then to see the enthusiasm for cellulosic ethanol that it attracts from some of the most highly esteemed numbers crunchers in the world.

CNNMoney.com just ran an article citing the opinions of former Federal Reserve Chairman Alan Greenspan and others in a position to understand the promising Energy ROI of cellulosic ethanol. More telling is the investment of Goldman Sachs in Iogen, which is certainly an early adopter investment opportunity, but is not the most promising technology in the field.

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Super ethanol is on its way

NEW YORK (CNNMoney.com) -- Cellulosic ethanol, the biofuel that differs from corn-based ethanol in that it can be made from pretty much any organic matter, has made an impression among people who matter.

Alan Greenspan, the revered former chairman of the Federal Reserve with a big distaste for irrational exuberance, recently sang its praises before a Congressional hearing on energy security. Greenspan said cellulosic ethanol is the only alternative energy source that could be produced in enough volume to make a dent in gas usage.

"You'll get an awful lot of investments [into this technology] coming in, especially if the numbers make sense, which I think they do," he said.


And last month Goldman Sachs, the world's largest investment bank, poured $27 million into Iogen, a Canadian-based biotech specializing in ethanol made from cellulose.

"There are a lot of people who think the technology is there," and could be competitive even if oil prices return to $30 a barrel, said Greg Bohannon, a managing partner at Greenrock Capital, a California-based private equity fund that focuses on renewable energy. "Why would Goldman Sachs invest in a company that's not going to be commercially viable for 10 years?"

John Ashworth, a biomass expert at the Department of Energy's National Renewable Energy Laboratory, said corn could only supply about 12 to 18 billion gallons of ethanol a year, or about 10 percent of the nation's 140 billion gallon-a-year gasoline habit.

Cellulosic ethanol has all the advantages of corn-based ethanol - there is no difference in the ethanol, only in the way it's produced.

But unlike corn-based ethanol, cellulosic ethanol can be made from a variety of things that might otherwise be considered waste -- sewage sludge, switchgrass, plant stalks, trees, even coal -- virtually anything that contains carbon.

Ashworth said there are an estimated one billion tons of such material available in the U.S. every year, enough for 100 billion gallons of ethanol.

While it's not feasible to actually go out and collect every ounce of that one billion tons, he said it's not unreasonable to expect ethanol to replace 40 billion gallons of gasoline in the near future.

"There's a lot of venture capitol out there that's willing to invest in cellulosic ethanol," he said. "You're likely to see some plants built in the next 12 to 18 months."

Entrepreneurs are in fact pressing ahead with ambitious plans.

"We know the technology is proven," said Jim Stewart, a spokesman for Bioengineering Resources Inc., or BRI, an Arkansas-based biofuel outfit. "It's at the point of commercialization."

Stewart said BRI uses a patented bacterial culture to transform organic matter into ethanol, and can produce a gallon of it at a fourth the retail cost of a gallon of gas.

He said the company plans to have 4 plants operating commercially within the next 16 to 18 months, but some industry-watchers believe it will be at least several years before cellulosic ethanol production will become commercially viable.


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ASIA: Linking Asian Climate Change to Energy Future

When bankers in developing countries create funding initiatives to address concern about the impact of energy technology and security on climate issues, it is time to take notice. It could be a public relations move by the Asian Development Bank (ADB) to draw attention to its other investment initiatives, but the facts President Kuroda cites about the upsurge in demand and the possible consequences in GHG emissions and climate change shows sincerity of purpose.

ADB's mission "The work of the Asian Development Bank (ADB) is aimed at improving the welfare of the people in Asia and the Pacific, particularly the 1.9 billion who live on less than $2 a day. Despite many success stories, Asia and the Pacific remains home to two thirds of the world's poor."

Hyping its "Clean Energy Week" as the world's first "carbon neutral conference", the organizers from ADB's Regional and Sustainable Development Department have made preliminary calculations on the amount of carbon produced in putting on the event. This includes carbon dioxide emissions from flights carrying participants, their taxi rides from the airport, electricity for hotel rooms, preparation of meals and refreshments, and lighting and air conditioning at the meeting.

In addition, emissions and consumption will be kept to a minimum with no presentations of meeting notes printed (instead, all papers will be made available online) and participants encouraged to walk from their hotel, neighboring the ADB building.
At the end of the event, the calculations will be finalized and ADB will then purchase equivalent carbon credits from the market.

Below is the full text of their p.r. release...

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Asia Critical to Future of Climate Change
Asian Development Bank President Kuroda

Manila, June 20, 2006 (ACN Newswire) - No region in the world is as critical to future climate change as Asia, Asian Development Bank (ASX: ATB) President Haruhiko Kuroda told the opening of ADB's Clean Energy Week today.

"Climate change is a reality that we can no longer ignore and one that we have to take immediate action to mitigate and adapt to," Mr. Kuroda said in opening remarks to the event at ADB's Manila Headquarters.

Over three days, major players in the Asian energy agenda - including representatives of developing countries, donor governments, nongovernment organizations, and the private sector - will discuss, debate and exchange experiences on energy issues and climate change.

"We look forward to working with all our development partners to bring concrete, lasting solutions to the table for slowing climate change and ensuring a sustainable growth path for Asia and the Pacific," Mr. Kuroda said.

The ADB President said while Asia needs energy to maintain rapid growth and continue cutting poverty, energy production and consumption need to move to a more sustainable path.

"Today, the issues surrounding energy conservation, efficiency and security are more important than ever," he said. "While Asia's rapid growth has brought undeniable benefits to the poor, it has also put a serious strain on the environment and on our natural resources, including energy."

In the 30 years to 2003, he pointed out, Asia's energy consumption grew by 230%, compared with the average worldwide increase of 75%. As a result, the share of the region's greenhouse gas emissions has risen from less than one-tenth of global emissions to nearly one quarter. Meanwhile, the rocketing of the price of oil to almost $80 a barrel has elevated the need for energy conservation and efficiency, and the use of renewable energy as key priorities for the region.

Mr. Kuroda said that in response to these challenges, ADB is supporting activities in renewable energy, energy efficiency, and climate change mitigation and adaptation.

These include an Energy Efficiency Initiative, under which ADB plans to expand its program of clean energy projects to $1 billion a year, as well as a planned Carbon Market Initiative (CMI), which will help developing countries address shortages in finance and capacity for adopting cleaner energy technologies.

"We believe the CMI will help shift investment patterns, foster sustainable economic development, and, in the long term, have a positive impact on both energy security and climate change," Mr. Kuroda said.


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