Bioamss Initiative Newsletter

Feature Article August 2006
Recent literature discusses advances in bioenergy and biobased products.

Gaurav Bisht
BCS, Incorporated

The Biomass R&D Initiative was established with the objective of developing technologies and processes necessary for abundant commercial production of biobased fuels and products at prices competitive with fossil fuels. With increasing demand and price of fossil fuels, there has been a growing interest in the topic and an increasing number of reports and articles published regarding biomass. These publications address policy, future expansion, R&D, bioproducts feasibility, and feedstock availability. These analyses add to the body of knowledge on biobased-related opportunities and challenges from several perspectives. They also help us gauge how far biomass has come and what still needs to be done. At the same time, these analyses provide a means to evaluate the success of the Biomass R&D Initiative. Below are three pertinent examples of recently published reports. (To see complete text, click on the title.)

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A High Growth Strategy for Ethanol
The Aspen Institute's "A High Growth Strategy for Ethanol" report was based on a discussion amongst leaders from government, agriculture, environmental, energy, security, and academic sectors. The discussion was to develop a consensus on appropriate policy steps to accelerate the transition from fossil fuels to sustainable and secure fuels for transportation. The report highlights the rising price of oil and the potential of ethanol, both cellulosic and corn based, to replace most of the oil consumed for transportation. It recommends that the U.S. adopt a very ambitious goal of producing 100 billion gallons per year of ethanol by 2025, the equivalent of half of today's U.S. gasoline consumption or nearly 25 percent of today's overall U.S. oil use. To reach this goal the report emphasizes the need to accomplish the following:

  • Expand the total supply of feedstock available for ethanol by improving yield per acre and using some Conservation Reserve Program land for energy crops.
  • Introduce more flex fuel vehicles and service stations.
  • Assure investor and developers in the ethanol, auto manufacturing, and service station industries that there will be sustained effort to expand ethanol use even when oil prices slump.
  • Increase public awareness.
Agriculture-Based Renewable Energy Production
The Congressional Research Service's (CRS) report for Congress, "Agriculture-Based Renewable Energy Production," looks at agriculture's role in producing energy and biobased products. It discusses the viability of corn ethanol, cellulosic ethanol and biodiesel as transport fuels and the capability of the U.S. agricultural industry to supply demands for feedstock. Currently corn ethanol is the major form of biofuels used in the U.S. today, with corn accounting for 95 percent of the feedstocks used in ethanol production. Although government subsidies have made ethanol more competitive with gasoline, the report notes that any disruption or shortage in corn will dramatically increase the price of corn ethanol, because feedstock price is the single largest expense of corn ethanol production. Finally, although corn prices are more stable compared with gas prices, the increasing demand for ethanol could put pressure on corn demand and thereby increase prices.

The CRS report notes corn ethanol has an estimated net energy balance of 34 percent gain compared to higher gains for other biofuels, yet it is much better than gasoline's 19 percent net loss. According to the report, cellulosic ethanol is the best biofuel option with a potential net energy balance of 100% gain, but this requires major improvement in cellulose hydrolysis. Cellulosic ethanol is made from cellulose-based feedstocks like switchgrass and native grasses which can grow on marginal land and are not used for feed. The only problem is that the cellulose needs to be hydrolyzed to simple sugars before conversion to ethanol and current methods are very expensive. However, recent experiments with enzymatic hydrolysis have proven very successful in reducing costs of producing ethanol. If enzymatic hydrolysis becomes commercial, it would dramatically reduce ethanol price and increase ethanol yield. Currently, only one commercial cellulosic ethanol plant exists in Canada and none in the U.S. except for pilot plants.

The CRS report also discusses biodiesel which is derived from animal fat or vegetable oil, but 90 percent of U.S. biodiesel is derived from soybeans. Biodiesel has many benefits over its petroleum counterpart by being nontoxic, biodegradable, and sulfur and aromatics free, while providing similar fuel economy and better lubricity. It can run in conventional diesel engines with little or no changes. Biodiesel production and use has increased considerably due to major motor liners adapting it and through government tax incentives and subsidies. Biodiesel is also cost beneficial to produce due to the fact that there are many commercial byproducts that can be produced from soybeans. However, biodiesel production could quickly strain available feedstock supplies and push vegetable prices significantly higher due to the low elasticity in demand for vegetable oils in food consumption. This may also simultaneously disrupt the feed markets. The acreage available to grow soy for energy, without encroaching on land used for food crops, is also limited as in the case for corn.

Enzyme Catalysis: Tool to Make and Break Amygdalin Hydrogelators from Renewable Resources: A Delivery Model for Hydrophobic Drugs
The last article mentioned, "Enzyme Catalysis: Tool to Make and Break Amygdalin Hydrogelators from Renewable Resources: A Delivery Model for Hydrophobic Drugs" published recently in the Journal of the American Chemical Society, describes industrial or "white" biotechnology as making an increasingly important contribution to the development of a sustainable, biobased economy by an environmentally benign approach. This approach could have applications in developing cost-effective controlled drug delivery vehicles from renewable resources, with a potential impact on pharmaceutical research and molecular design and delivery strategies. The use of renewable resources for production of valuable chemical commodities is becoming a topic of great interest and fueling the promotion of the industrial biorefinery concept in which integrated processing of grains, oil seeds, and other biomass materials using enzymes and microorganisms yield a vast array of products in sectors such as chemical, food and feed, paper, textiles, and medicine.

The above reports help in evaluating from various perspectives the many opportunities and challenges remaining to be met regarding biobased fuel and products industry. More importantly, they highlight the growing interest in biofuels and biobased products and the growing biomass awareness.


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Biomass Spotlight: New Committee Members Announced

The Biomass R&D Technical Advisory Committee is pleased to announce new members of the Committee:

Dr. David Anton has had a long career in biochemistry at DuPont. As current Vice President of Research and Development for their Biobased Materials division, he brings over 20 years’ experience in related research to the Committee.

Dr. Thomas Binder has been renominated to the Committee for a second term. As President of Research for Archer Daniels Midland, his biochemistry and agricultural industry experience also spans over 20 years.

Dr. Lou Honary, Director of the Agriculture-Based Industrial Lubricants (ABIL) Research Program at the University of Northern Iowa, combines professorial duties in Agricultural Economics with wide experience serving public policy groups for bioenergy.

E. Alan Kennett’s current position of President and General Manager of Gay & Robinson Sugar in Kaumakani, Hawaii, follows wide experience in sugar operations and research advisory groups in Hawaii, Africa, the West Indies, and the U.K.

Mark Maher combines Michigan education with 20 years of experience at General Motors. Now the Executive Director of GM PowerTrain Vehicle Integration, he has been the lead GM liaison for their sponsorship of the Ethanol Vehicle Challenge and FutureTruck advanced technology vehicle student competitions.

Dr. Ed McClellan, CPA, brings extensive tax counsel expertise to the Committee as a Partner in Washington, DC firm Allston & Bird, LLP. Prior counsel work has involved the U.S. Senate and major energy concerns.

John McKenna provides extensive alternative fuels investment experience to the Committee. Mr. McKenna is the Chairman and CEO of Hamilton Clark & Co. in McLean, Virginia.

Mitchell Peele provides state regulatory and liaison experience and broad agricultural and bioenergy advisory knowledge to the Committee. Mr. Peele is currently the Senior Director for Public Policy at the North Carolina Farm Bureau Federation.

Jeffrey Serfass serves as President of the Technology Transition Corporation. His experience in Hydrogen advisory work and various utility and renewable energy roles will complement Departmental and Committee goals for advanced energy.

Robert Sharp brings 30 years of experience in forestry and forest products to the Committee. Currently, he is the Vice President of Mobile Forest Products.

J. Read Smith provides almost 40 years of farming experience and expertise to the Committee. Representing the Agricultural Energy Work Group in Washington State, he concurrently serves various environmental and agricultural advisory groups on behalf of fellow producers.

Rodney Williamson has served the Iowa Corn Growers’ Association and Iowa Corn Promotion Board for 20 years, and currently represents them to the Committee as the Director of Research and Regulatory Affairs.

 

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On the Hill

To promote global energy security through increased cooperation between the United States and India in diversifying sources of energy, stimulating development of alternative fuels, developing and deploying technologies that promote the clean and efficient use of coal, and improving energy efficiency. 7/24/2006: Passed Senate with amendments by Unanimous Consent. 7/25/2006: Received in the House.
Bill # Sponsor Description Last Action
S. 1950 Sen Lugar, Richard G. [IN] United States-India Energy Security Cooperation Act of 2006: To promote global energy security through increased cooperation between the United States and India in diversifying sources of energy, stimulating development of alternative fuels, developing and deploying technologies that promote the clean and efficient use of coal, and improving energy efficiency. 7/24/2006:Passed Senate with amendments by Unanimous Consent. 7/25/2006: Received in the House.
S. 2769 Sen Warner, John [VA] Department of Energy National Security Act for Fiscal Year 2007: An original bill to authorize appropriations for fiscal year 2007 for defense activities of the Department of Energy, and for other purposes. 6/22/2006: Passed Senate with an amendment by Unanimous Consent. (text as passed Senate: CR 6/29/2006). 6/29/2006: Received in the House.
H.R. 5703 Rep Meehan, Martin T. [MA-5] Green Vehicles Promotion Act of 2006: To amend the Internal Revenue Code of 1986 to provide a credit for the purchase of qualified flexible fuel motor vehicles, and for other purposes. 7/17/2006: Referred to the Subcommittee on Energy and Air Quality.

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Grassroots


Ordinance outlaws Styrofoam
The Oakland City Council voted early Wednesday morning to ban restaurants and other food vendors from using polystyrene foam -- more commonly known as Styrofoam -- containers in the city by 2007.
Full article Full article

Canada: Biobased polymer fiber outfits romp in fashion show
Renowned designers Oscar de la Renta, Stephen Burrows, Elisa Jimenez and others created some unique outfits and demonstrated in a fashion show held in conjunction with a major Biomass conference. Natureworks, a subsidiary of US-based agribusiness giant Cargill Inc, is the first company to use biodegradable polymers produced from renewable resources for commercial products and has branded its PLA fiber as Ingeo. Full article Full article

EPRI Launches Research on Biomass Fuel Electricity Generation
The Electric Power Research Institute (EPRI) launched a project to research biomass as a renewable fuel for electricity generation and identify its key research needs, focusing on economic assessment, biomass crop and carbon accounting, biomass combustion and gasification technology.
Full article Full article

Plankton could be key source of biofuel
A Spanish company claims it is on the verge of producing an inexhaustible source of biofuel by using phytoplankton as a raw material. Bio Fuel Systems, based in Alicante, has been researching the potential of breeding the tiny sea-borne plants, extracting oil from vat-grown plankton. Full article Full article

Biofuels looking more feasible
IMPERIAL, Neb. - Just outside this town in the middle of the great American prairie, 37 miles from the nearest traffic light, stands a huge pile of cornstalks and leaves. It looks like a 35-foot mountain of yard trash, yet black cables snake into the pile, attached to sensors that monitor its vital statistics by the minute. Full article Full article


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Marketplace


The Grain Prices graph shows the cost fluctuation of soybeans, the main biodiesel feedstock, and corn, the main ethanol feedstock. The tables show actual grain prices, indicators which may affect gasoline prices, and the production of ethanol. Fuel prices come from OPIS Ethanol and Biodiesel Report. Ethanol and RBOB Unl New York spot prices and SME Biodiesel Rack, Chicago, August 2006.
Cash Grain Prices Received by Farmers Aug 2006 Transportation Fuel Prices 2006 Transportation Fuel Prices
Grain Prices August 2005 August 2006 % Change
Corn 2.11 2.20
4%
Soybean 6.65 5.60 -16%
Fuel Supply August 2005 August 2006 % Change
Percent Refinery Utilization 94.6 91.7 -3.07%
Production by Product - Finished Motor Gasoline (Million Barrels) 8,682.5 9,132.8 5.19%
Stocks - Finished Motor Gasoline (Million Barrels) 136.4 119.9 -12.12%
Imports - Total Motor Gasoline (Million Barrels) 957.3 1,121.0 17.11%
Oxygenate Production May 2005 May 2006 % Change
Ethanol Production
(Million Barrels)
237 293 19.11%
MTBE Production
(Million Barrels)
141 89 -58.43%

Data Sources:
U.S. DOE-Energy Information Administration, "Weekly Petroleum Status Report", "Monthly Oxygenate Report"
USDA-National Agricultural Statistics Service, "Agricultural Prices," "Grain Stocks"

U.S. Historic Imports of Motor Gasoline U.S. Historic Finished Motor Gasline Products U.S. Historic Refinery Utilization U.S. Historic Stocks of Finished Motor Gasoline

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R&D Awards

No R&D Awards were granted for this month.


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Solicitations
Title: Continuing Solicitation for the Office of Science
Description: Seeking grant applications for support of basic energy science fundamental research in the natural sciences and engineering leading to new and improved energy technologies and to understanding and mitigating the environmental impacts of energy technologies.
Government Agency: U.S. Department of Energy, Office of Science
Schedule: Applications may be submitted at any time.
URL: http://www.science.doe.gov/grants/FAPN05-01.html

Title: Energy Innovations Small Grant (EISG) Program
Description: The EISG provides funding to small businesses, small non-profits, individuals and academic institutions for establishing the feasibility of new energy concepts. Qualifying entities outside of California are eligible. Projects must develop innovative and original energy concepts that address a clear market need, provide benefit for California electricity ratepayers and target one or more areas of interest: industrial/agriculture/water end-use efficiency; building end-use efficiency; advanced generation; renewable generation; energy-related environmental research; strategic energy research.
Government Agency: California Energy Commission
Schedule: EISG has up to 4 cycles of grants a year
URL: http://www.energy.ca.gov/research/innovations/index.html

Title: Energy Performance Contracting in State-Owned Facilities
Description: Funded by a System Benefits Charge (SBC) on electric transmission, this program offers energy efficiency, research and development, low-income and environmental disclosure funding and education to assist electric consumers as the regulated electricity market moves to more open competition.
Government Agency: New York State Energy Research and Development Authority
Schedule: Grant programs, funding amounts, and funding cycles vary
URL:http://www.nyserda.org/Funding/funding.asp?i=2

Title: GTL Bioenergy Research Centers
Description: The Genomics: GTL program (GTL) in the Office of Biological and Environmental Research (BER) of the Office of Science (SC), U.S. Department of Energy (DOE), is a systems biology research program with the mission goal of developing the science, technology, and knowledge base to harness microbial and plant systems for cost-effective renewable energy production, carbon sequestration, and environmental remediation. This Funding Opportunity Announcement (FOA) requests that the scientific community submit applications for the establishment of GTL Bioenergy Research Centers that develop novel biological solutions for the production of such fuels as cellulosic ethanol or hydrogen or for other groundbreaking bioenergy research with the potential to revolutionize biology-based energy production.
Government Agency: U.S. Department of Energy
Schedule: Applications due by February 1, 2007
URL: http://e-center.doe.gov/iips/faopor.nsf/

Title: National Research Initiative
Description: The U.S. Department of Agriculture requests applications for the National Research Initiative Competitive Grants Program (NRI). NRI supports research, extension, and education projects that address key problems of national, regional, and multi-state importance in sustaining all components of agriculture. 29 program areas identified including Biobased Products and Bioenergy Production; Water and Watersheds; and Rural Development.
Government Agency: USDA
Schedule: Due dates range from November 30, 2005 to October 31, 2006
URL:http://www.csrees.usda.gov/funding/nri/nri.html

Title: Biorefinery Construction Solicitation
Description: This Funding Opportunity Announcement (FOA) is being issued under authorization of the Energy Policy Act (EPAct) of 2005, Section 932. Amendments to the Internal Revenue Code of 1986 within Title XIII, Energy Policy Tax Incentives cited in EPAct and sections 1345 and 1346 (renewable fuel and biodiesel credits) of EPAct provide additional impetus and credit enhancements for potential applicants to respond to this announcement. Approximately $53,000,000 is expected to be available in FY07 for new awards under this FOA. Additional funding is expected to be available in FY08 and FY09. In total, approximately $160,000,000 over three years is expected to be available for new awards under this FOA.
Government Agency: DOE
Schedule: Applications due by September 10, 2006
URL: http://e-center.doe.gov/iips/faopor.nsf/


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Events

August 2 - 3, 2006
Flagstaff, AZ

Southwest Renewable Energy Conference
Website: http://swrec.org/

August 6 - 9, 2006
Chicago, IL

2006 Energy
Website: http://www.energy2006.net

August 10 - 11, 2006
Santa Fe, New Mexico

Renewables & Energy Efficiency: New Policies and Market Opportunities
Website: http://www.lawseminars.com/seminars/06RENUWA.php

August 19 - 26, 2006
Florence, Italy

9th World Renewable Energy Congress and Exhibition
Website: http://www.interexpo.biz

August 27 - 30, 2006
Vancouver, Canada

Task 39: Liquid Biofuels from Biomass
Website: http://www.task39.org/vancouver06.htm

August 28 - 29, 2006
Ames, IA

2006 Biobased Industry Outlook Conference
Website: http://www.bioeconomyconference.org


Click here for additional bio-related events.

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The Biomass Initiative, formed as part of the Biomass R&D Act of 2000, is a multi-agency effort to coordinate and accelerate all Federal biobased products, biofuels, and bioenergy research and development. The Biomass Initiative distributes an online monthly newsletter to inform government institutions and the public, including private companies, about the Biomass Initiative and biomass-related activities. The newsletter’s contents include a feature article highlighting important biomass-related stories of the month, as well as grassroots information and a state spotlight recognizing important local activities. In addition, the newsletter includes biomass-related information on recent legislation, R&D awards, solicitations, and market trends.

If you have any questions or comments about the Biomass Initiative Newsletter, please contact mmanella@bcs-hq.com.