May 14, 2008

The US Perspective – Drivers and Sustainability Considerations

James D. McMillan May 13, 2008

1 McMillan IEA ExCo61 US Perspective

USDOE Vision

Realize a viable, sustainable biomass industry

– Producing renewable biofuels, bioproducts and biopower – Enhancing energy security – Reducing petroleum dependence – Providing environmental benefits, including reduced GHG emissions – Creating widespread economic opportunities

Social

May 14, 2008

Environmental

McMillan IEA ExCo61 US Perspective

Economic

2

A Sustainable Biofuels Industry

Social

Promotes social goals Rural livelihoods Oil import reduction, etc.

Equitable Habitable

Economic

Lowered costs and enhanced economic opportunities Improved fuel properties Decreased production costs

SUSTAINABLE

Feasible

Environmental

Reduced environmental effects Greenhouse gases, biodiversity, fertilizer runoff, land use change

May 14, 2008 McMillan IEA ExCo61 US Perspective 3

Ambitious Goals Established

2008 2012

Cost-competitive cellulosic ethanol

2017 2022

“20 in 10”:

Reduce U.S. gasoline use* by

20%

–

15%

by producing/using

35 B

gallon/yr of alternative fuels (AFS) –

5%

through higher vehicle* efficiency standards (CAFÉ)

Energy Independence and Security Act (EISA 2007)

–

Produce 36 B gal/yr biofuels;

increase CAFÉ standards to 35 mpg –

Produce >21 B gal/yr advanced biofuels (>16 B gal/yr cellulosic ethanol).

2030

“30 in 30”

– Displace

30%

of U.S. gasoline consumption* – Ramp up biofuels production to

60 B

gallons/year May 14, 2008 * light-duty vehicles only 1 Billion (B) = 1000 Million = 10^9 McMillan IEA ExCo61 US Perspective 4

Strategic Focus: Biofuels

Feedstock Production Feedstock Logistics Biofuels Production Biofuels Distribution Biofuels End Use •

Cellulosic ethanol is main focus of USDOE’s Biomass Program

•

Currently scoping other alternative / renewable fuels to help prioritize work on fuels “beyond” ethanol

–

Focus on replacement fuels for light-duty and diesel vehicles

Out of Scope:

Commercially viable biofuel production technologies e.g., conventional starch- and sugar-based ethanol and plant oil (soy, palm, canola, etc.)-based biodiesel May 14, 2008 McMillan IEA ExCo61 US Perspective 5

Leveraged Strategy to Achieve Goals

Three-pronged approach

• Accelerate Reseach, Development and Deployment (RD&D) program • Spur financial community investment • Create supportive policies

RD&D/ Technology Policy USDOE’s Biomass Program Market/Capital Investments

May 14, 2008 McMillan IEA ExCo61 US Perspective 6

Two Major Paths to Success

Integrated Biorefineries Feedstock Production & Logistics

• Energy crops • Residue harvesting

Biochemical Conversion

• Enzymatic hydrolysis • Lignin conversion

Thermochemical Conversion

• Gasification • Pyrolysis • Fuels • Power • Bio-products

Delivery Infrastructure

• Distribution vehicles (pipelines, tankers, etc.) • Fueling stations • Vehicles

Success relies on simultaneous development of the supply, conversion, and demand infrastructures for cellulosic

• Codes and Standards • Market Transformation Efforts (e.g., outreach, policy) McMillan IEA ExCo61 US Perspective 7

Sustainability – the Biomass Program

• Sustainability already major thread within program

–

Renewable

energy (fuels) – Movement away from starch towards cellulosics – Enzymatic pathway offers potential for more efficient and environmentally benign cellulose degradation – Key issues being addressed are land and water usage – Focus on high efficiency and low waste technologies – Strive to integrate conversion platforms and high efficiency CHP production systems (industrial symbiosis)

• A specific sustainability plan is being developed

– Reduce exposure to future uncertainties and risks – Strengthen ability to meet long-term goal to enable sustainable production of large volumes of biofuels May 14, 2008 McMillan IEA ExCo61 US Perspective 8

Major DOE Accomplishments

2007 – To Date

The USDOE has announced funding commitments totaling over $1 billion for biofuels-related projects since 2007.

These multi-year investments include: –$385 for commercial-scale biorefineries (6) –$200 million for pilot-scale (10%) biorefineries (7) –$23 million for more efficient fermentation microbes (5) –$34 million for more efficient enzymes (4) –$405 million for new bioenergy centers (3) Many are being cost-shared by industry.

Some include foreign participants/technology. May 14, 2008 McMillan IEA ExCo61 US Perspective 9

Major DOE Biofuels Project Locations

Geographic, Feedstock, and Technology Diversity

Pacific Ethanol Biochemical Wheat Straw/Corn Stover (Boardman, OR) DOE Joint Bioenergy Institute (Berkeley, CA) Iogen Biochemical Wheat Straw (Shelly, ID) Novozymes Biochemical Various (Davis, CA) Genencor Biochemical Various (Palo Alto, CA) Emery Energy Thermochemical Corn Stover (Salt Lake City, UT) Ceres, Inc Various (Thousand Oaks, CA) Verenium Corp Biochemical Various (San Diego, CA) Lignol Biochemical Wood Residues (Commerce City, CO) Blue Fire Biochemical Municipal Solid Waste (Corona, CA) Cargill Inc Biochemical Various (Minneapolis, MN) Regents of the University of Minnesota Various (Minneapolis, MN) Mascoma Biochemical Various (Lebanon, NH) NewPage Cornell University (Ithaca, NY) Thermochemical Wood Chips (Wisconsin Rapids, WI) Iowa State Thermochemical Switchgrass (Ames, IA) DOE Great Lakes Bioenergy Research Center (Madison, WI) Poet Biochemical Corn Stover Gas Technology Institute (Des Plaines, IL) Dupont Biochemical Various (Emmetsburg, IA) (Wilmington, DE) Various RSE Pulp & Chemical, LLC (Old Town, ME) GE Global Research (Niskayuna, NY) DSM Innovation Center Biochemical (Parsippany, NJ) Purdue University Abengoa Biochemical/ ICM Stover Biochemical (West Lafayette, IN) Biochemical Switchgrass, Corn Thermo Ag Waste, Switchgrass (St. Joseph, MO) Mascoma (Hugoton, KS) (Vonore, TN) Ecofin, LLC (Washington County, KY) DOE Bioenergy Science Center (Oak Ridge, TN) Research Triangle Institute Thermochemical Woody Biomass (Research Triangle Park, NC) Southern Research Institute Thermochemical Various (Birmingham, AL) Range Fuels Thermochemical Wood Chips (Soperton, GA) Seven Small-Scale Biorefinery Projects Six Commercial-Scale Biorefinery Projects Alico Thermochemical/Bio Citrus Waste (LaBelle, FL) Four Improved Enzyme Projects Five Projects for Advanced Organisms Five Thermochemical Biofuels Projects Three Bioenergy Centers Regional Partnerships

South Dakota State Univ., Brookings, SD Cornell University, Ithaca, NY Univ. of Tennessee, Knoxville, TN Oklahoma State Univ., Stillwater, OK Oregon State Univ., Corvallis, OR

DOE Joint Solicitation Biomass Projects

May 14, 2008 McMillan IEA ExCo61 US Perspective 11

Biomass Program Solicitations (1) Biomass Fast Pyrolysis Oil (Bio-oil) Stabilization

Funding

: $7 million

Open Date

: 04/16/2008

Close Date

: 05/29/2008

Funding Number

: DE-PS36-08GO98018

Objective

: Develop cost-effective methods for stabilizing biomass fast pyrolysis oil.

Applicants are encouraged to partner with foreign or domestic organizations having unique/relevant capabilities. Cost share must be at least 20% of the total and must come from non-Federal sources unless otherwise allowed by law.

May 14, 2008 McMillan IEA ExCo61 US Perspective 12

Biomass Program Solicitations (2) University Research in Biomass Technologies: Applied Research in Conversion of Biomass to Advance Fuels

Funding:

$4 million

Open Date:

03/31/2008

Close Date:

06/02/2008

Funding Number:

DE-PS36-08GO98017

Objective:

Improved approaches to biochemical (pretreatment, hydrolysis, saccharification, fermentation, etc.) and thermochemical (gasification, pyrolysis, synthesis) processing of biomass in integrated biorefineries. Advanced lipid production in algae is also within scope.

Restricted to institutions of higher education.

Applicants are encouraged to partner with foreign or domestic organizations having unique/relevant capabilities.

May 14, 2008 McMillan IEA ExCo61 US Perspective 13

Biofuels Beyond Ethanol

T

Today

A Y F U T U R

Future Ethanol

– as a blending agent from either grain or cellulosic material from Ag and/or Forestry industry

Biodiesel

– Transesterified vegetable oils blended with diesel

Green Diesel

– fats, algal oils, waste oils, or virgin oils converted to low-sulfur diesel in petroleum refinery

Higher alcohols

– examples include: butanol, mixed alcohols, higher carbon alcohols (C5- and greater)

Fischer-Tropsch Liquids

– and other products from syn gas including methanol, dimethyl ether, etc

Pyrolysis Liquids

– alternative feedstock to petroleum refinery or gasification facility

Methanol derived fuels

– Methanol to gasoline technology, dimethyl ether and other products

Other fuels

– Liquid transportation fuels from sugars/oils refinery not discussed or yet envisioned May 14, 2008 McMillan IEA ExCo61 US Perspective 14

Additional Information

• EERE Biomass Program −

http://www.eere.energy.gov/biomass/

• NREL Biomass Research −

http://www.nrel.gov/biomass/

• USDOE-USDA Biomass R&D Initiative −

http://www.brdisolutions.com/ May 14, 2008 McMillan IEA ExCo61 US Perspective 15

Questions?

Bioenergy

May 14, 2008 McMillan IEA ExCo61 US Perspective 16