US Experience in Biofuels: Successes and R&D Challenges

Cary Bloyd

EGNRET-27

Zhuhai, China

9-11 October 2006

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The US Ethanol Program is an Example of Partnerships

The success of the US ethanol program is the partnership formed between are occur across multiple agencies at both the federal and state levels, the research community and the private sector

US Department of Energy US Department of Agriculture US Environmental Protection Agency State biofuel programs Industry trade associations Private sector Research institutions/universities

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US Goals are defined in terms of fuel blending

In 2006, 4 billion gallons (260,000 bpd) – November 2006 production was 4.7 billion gallons

In 2012, 7.5 billion gallons (490,000 bpd) – US EPA has proposed increasing the 2007 target by 33 percent from

2.78 percent of all gasoline sold to 3.71 percent

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The Advanced Energy Initiative Set New Targets in February 2006a

Provides for a 22% increase in funding for clean-energy technology research.

Develop advanced battery technologies that allow a plug-in hybrid-electric vehicle to have a 40-mile range operating solely on battery charge.

Foster the breakthrough technologies needed to make cellulosic ethanol cost competitive with corn-based ethanol by 2012.

Accelerate progress towards the President’s goal of enabling large numbers of Americans to choose hydrogen fuel cell vehicles by 2020.

ahttp://www.whitehouse.gov/stateoftheunion/2006/energy

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Ethanol and Biodiesel production are expanding rapidly

2000 2006 Under Construction

Ethanol Plants 54 95 33

Production Capacity (mgy) 1749 4336 1893

Production is now being reported in bpd, which was 288,000 bpd in January 2006, an increase of 8,000 bpd over December 05

Louis Dreyfus Agriculture Industries LLC plans to build the world's largest biodiesel plant in Indiana

260,000 metric tons of soybeans will be converted to 80 million gallons of biodiesel per year

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US DOE supports technology, fuel development, and science programs

The FreedomCAR and Vehicle Technologies (FCVT) Program is developing more energy efficient and environmentally friendly highway transportation technologies that will enable America to use less petroleum – http://www.eere.energy.gov/vehiclesandfuels/

The Biomass Program develops technology for conversion of biomass (plant-derived material) to valuable fuels, chemicals, materials and power, so as to reduce dependence on foreign oil and foster growth of biorefineries– http://www.eere.energy.gov/biomass/

The Office of Science supports fundamental research into biological systems. Recent work includes the complete DNA analysis of the black cottonwood (Populus trichocarpa). The Office of Science has also announced $250 million to establish and operate two new Bioenergy Research Centers. – http://www.science.doe.gov

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US Department of Agriculture

The Bioenergy Program seeks to expand industrial consumption of agricultural commodities by promoting their use in production of bioenergy (ethanol and biodiesel). 

USDA provides two types of Programs: Business Programs & Cooperative Services. – Business and Industry (B&I) Guaranteed Loan Program – Rural Business Opportunity Grants – Value-Added Agricultural Product Market Development Grants -

Independent Producers The FY 2005 appropriations bill approved Program funding of $100

million for FY 2005.

http://www.fsa.usda.gov/daco/bio_daco.htm

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Example: Rural Business Opportunity Grants

Rural Business Opportunity Grants: Designed to promote economic development in rural communities by making grants to pay the costs of providing economic planning, technical assistance, or training. Applicants must be a public body, nonprofit corporation, Indian tribe, or cooperative with members that are primarily rural residents. Applicants must have expertise in the activities proposed and be able to demonstrate that funding will result in rural economic development. A maximum of $1.5 million is available for the program, with most grants of $50,000 or less.

http://www.ethanolrfa.org/leg_position_usda.shtml

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The US Environmental Protection Agency

EPA promotes and expands the use of environmentally beneficial alternative fuels and vehicles by providing the states with tools, such as benefits models, State Implementation Plan Credits, and the Clean Fuels Fleet program.

Two page fact sheets available on:

– Compressed natural gas

– Biodiesel

– Electric Vehicles

– Ethanol

– Fisher-Tropsch

– Liquefied Natural Gas

– Methanol

– Propane

http://www.epa.gov/otaq/consumer/fuels/altfuels/altfuels.htm

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State governments have been strong supporters of biofuels

Three states have enacted mandates for E10 (Minnesota (also E20), Hawaii, and Montana)

Eight other states have legislation in progress (Washington, Colorado, Illinois, Iowa, Kansas, Missouri, New Mexico)

New York state has announced $20 million program for the development of a cellulosic ethanol pilot facility

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The private sector is also expanding the ethanol distribution infrastructure

Ford and VeraSun Energy will establish a "Midwest Ethanol Corridor" by converting 40 existing fuel pumps in Illinois and Missouri to E85.

– The project will increase the availability of E85 in the region by about a third.

GM announced that it will add 26 new E85 pumps in the greater Chicago area through a partnership with VeraSun Energy and Shell

GM has started a national advertising program called “live green, go yellow” to promote E85

– http://www.gm.com/company/onlygm/

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The Renewable Energy Fuels Association produces a free monthly newsletter

Best practices handbooks are also available

FUEL ETHANOL

Industry Guidelines,

Specifications, and Procedures

Dec. 2003

www.ethanolrfa.org

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University and Government Research Supports Biofuels

Multiple DOE national laboratories have had long standing biofuels research programs: Argonne National Laboratory, National Renewable Energy Laboratory, Oak Ridge National Laboratory

State agricultural universities have had continuous research programs

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The GREET (Greenhouse gases,Regulated Emissions, and Energyuse in Transportation) Model

GREET includes emissions of greenhouse gases– CO2, CH4, and N2O

VOC, CO, and NOx as optional GHGs GREET estimates emissions of five criteria pollutants

– VOC, CO, NOx, PM10, and Sox– Total and urban emissions separately

GREET separates energy use into– All energy sources– Fossil fuels (petroleum, natural gas, and coal)

The GREET model and Its documents are available at:

http://greet.anl.gov; there are about 800 registered GREET users

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Modeling tools have also been developed at universities

Douglas Tiffany from the University of Minnesota has developed a spreadsheet model for the economic analysis of dry mill ethanol production

http://www.agmrc.org/NR/rdonlyres/4C6BD4DE-8DA0-44F6-A9AE-02320DBF99F6/0/ethanolsuccess.xls

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Thank you for your attention!