Transcript Chair’s Update - Asia-Pacific Economic Cooperation

US Experience in Biofuels: Successes
and R&D Challenges
Cary Bloyd
EGNRET-27
Zhuhai, China
9-11 October 2006
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
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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
Ethanol Plants
Production Capacity (mgy)
2000
54
1749
2006 Under Construction
95
33
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 Energy
use 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-A9AE02320DBF99F6/0/ethanolsuccess.xls
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Thank you for your attention!
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