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Notice: USDA Awards $12.6 Million for Biomass Research and Development
Eleven projects have been selected to receive $12.6 million through the joint USDA-Dept. of Energy Biomass Research and Development Initiative.
| Feature Article |
October 2005
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Hurricanes Demonstrate Nation's Dependence on Oil and Gas
October 5, 2005
Brian Copeland, BCS Incorporated
When Congress passed the Biomass R&D Act of 2000, it stated that the "conversion of biomass into biobased industrial products offers outstanding potential for benefit to the national interest through improved strategic security and sustainable resource supply" and "biobased power can diversify energy resource options." The Energy Policy Act of 2005 further emphasized the importance of biomass technologies in contributing to our Nation's energy supply by removing the sunset provision of the Biomass R&D Act and calling for an increase in research, analysis, demonstration, and other programs to support the development and deployment of biomass technologies.
Companies in the electricity, oil, and natural gas industries located in the U.S. Gulf Coast region are currently working through a major reconstruction effort following Hurricanes Katrina and Rita. Approximately 1,500 offshore oil and gas production platforms were in the paths of these hurricanes with the two hurricanes destroying 111 of them.1
Although biomass-based power, liquid fuels, and products certainly could not eliminate the impact of the destruction on the U.S. energy industry, the recent hurricanes
illustrate our Nation's continued dependence on oil and gas and the importance of finding a range of energy
resources to better diversify our energy supply. This article will provide a brief chronology of the impact
of the hurricanes on the energy sector as well as the Federal response, including facilitation of restoration,
temporary easing of Clean Air Act restrictions, and other measures.
The following are some of the impacts of the storms:
- As Hurricane Katrina moved through the Gulf of Mexico, August 25 - 28, oil and gas companies shut offshore oil and gas production platforms and the Louisiana Offshore Oil Port (LOOP) closed. The LOOP facility delivers approximately one million barrels of crude oil per day from the Gulf of Mexico (GOM) to the mainland U.S.
- Katrina caused nine refineries to be shut down. These refineries accounted for approximately 2 million barrels a day of capacity, over 10 percent of the total U.S. refining capacity.
- Katrina cut off electric power to over 2.7 million customers in Florida, Louisiana, Mississippi, and Alabama.
- The Colonial and Plantation petroleum product pipelines were shut down from August 27th to September 2nd and September 5th respectively. These pipelines are major providers of gasoline, diesel fuel, heating fuel and jet fuel to the Southeast, Mid-Atlantic, and Northeast.
- Capline pipeline, a crude oil pipeline that supplies crude oil from the Gulf Coast to some Midwest refineries was inoperable from August 27th to September 1st.
- Hurricane Rita caused eleven refineries, with a total capacity of over 4 million barrels a day (20% of U.S. capacity) to be shut down.
- A total of eight crude petroleum and product pipelines were shut down, including the Dixie, Seaway, and Explorer pipelines, due to Rita.
- Cumulative shut-in oil production was over 50 million barrels from the period of August 26th to October 7th, over 9% of the yearly GOM production.
- Cumulative shut-in natural gas production was over 246 billion cubic feet (BCF) from the period of August 26th to October 7th, over 6.5% of the yearly GOM production.
- On October 7th, 274 GOM production platforms were still evacuated, shutting in 77% of the daily oil production and 64% of the daily natural gas production in the GOM.2
Due to fuel shortages and difficulty in supply, on August 31st, the Environmental Protection Agency (EPA) first issued waivers to make available to first responders fuel restricted under the Clean Air Act. By the end of the day on August 31st, these waivers had been expanded to include all 50 states. On September 22nd, the EPA issued additional waivers: a reformulated gasoline (RFG) waiver for the Houston/Galveston and Dallas/Forth Worth areas allowing both areas to use conventional gasoline for distribution and for sale. On August 2nd, President Bush authorized the Department of Energy (DOE) to sell and loan petroleum from the Strategic Petroleum Reserve (SPR). DOE entered into six separate agreements to loan oil from the SPR and were authorized to sell 30 million barrels of crude oil from the SPR. As of October 11th, power continues to be restored to refineries affected by Hurricane Rita and 1,858,000 barrels per day of production capacity remains off-line. Refinery capacity levels are expected to return to near normal levels by December. Offshore oil and gas production should return to near normal by Spring 2006.
1U.S. Department of Energy, Office of Electricity Delivery and Energy Reliability Situation Reports 8/28/05 - 10/6/05
2Minerals Management Service, Hurricane Katrina/Hurricane Rita Evacuation and Production Shut-in Statistics Report as of Tuesday, October 7, 2005, Available:http://www.mms.gov/ooc/press/2005/press1007.htm
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State Spotlight: Arizona
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In 2001, the state of Arizona consumed 1,588 trillion Btu of energy. The leading source of energy was petroleum at 33 percent of the total followed by coal,
which supplied 27 percent. Nuclear power and natural gas accounted for 19 percent and 15 percent respectively.
Hydroelectric power supplied five percent and biomass accounted for one percent in 20011
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It is estimated that Arizona could generate 1.6 billion kWh of electricity from its biomass resources.
This amount of electricity is enough to power 160,000 average homes, which is eight percent of the residential needs
of the state. There are no estimates available for the energy crops in Arizona, which include fast growing trees,
shrubs, and grasses that would add significantly to the state's biomass total. Urban residues contribute 366,000
dry tons of per year in potential biomass sources. Forest and mill residues could annually supply 261,000 and
251,000 dry tons respectively. Agricultural residues account for 222,000 dry tons per year of usable
biomass2 |
Biomass projects in the state of Arizona are administered through the Arizona Chamber of Commerce. The only biomass projects underway in the state, however, are three forest residue facilities. These projects were funded in June 2005 through the U.S. Department of Agriculture.3 Current private biomass facilities operating in Arizona include Tucson Electric Power's biogas operation at the los Reales Landfill, with an output of 5,000 kW, and a Prima Maricopa Indian Community landfill gas operation that produces 4,000 kW of power at Phoenix's Tri-Cities Landfill. There are other biomass operations in the state as well, including one that converts agricultural residue to energy.4 |
To encourage biomass energy use in Arizona, there is a tax deduction for converting a wood fireplace to a qualifying wood stove. There is also an Environmental Portfolio Standard in place that requires growing percentages of renewable energy for utilities each year starting at 0.2 percent in 2001, and growing to 1.1 percent in 2007.
In addition, Arizona public buildings constructed after February 2005 are required to obtain ten percent
of their power from renewable sources. Biomass is one of the qualifying renewable sources under the programs.
5 |
Data Sources: EIA and EERE Calculations for biomass Btus are estimated to be 12,000 Btu/kWh
1Energy Information Administration. Table 7: Energy Consumption Estimates by Source, 1960-2001, Arizona. Available:http://www.eia.doe.gov/emeu/states/sep_use/total/use_tot_az.html
2Arizona Bioenergy Resources. Available:http://www.eere.energy.gov/state_energy/tech_biomass.cfm?state=AZ
3Department of Agriculture News Release. Available:http://www.usda.gov/wps/portal/usdahome?contentidonly=true&contentid=2005/06/0195.xml
4Current Renewable Energy Projects in Arizona. Available:http://www.eere.energy.gov/state_energy/opfacbytech.cfm?state=AZ
5Database of State Incentives for Renewable Energy. Available:http://www.dsireusa.org/library/includes/map.cfm?State=AZ&CurrentPageId=1
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On the Hill
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No legislation for this month |
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Grassroots
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On the Road Again with Clean-Burning Willie Nelson Biodiesel
It's been almost a year since Willie Nelson partnered with biodiesel producers, distributors, and marketers to sell branded biodiesel at a truck stop in Texas. Called Willie Nelson Biodiesel the American-made renewable fuel was available in three states by January 2005. The singer wants to make it available nationwide.
http://www.distributiondrive.com/Article23.html
New Development Produces Antifreeze from Biodiesel
A new process developed by the University of Missouri-Columbia (MU) creates propylene glycol antifreeze that will meet every performance standard, is made from domestic soybeans and is nontoxic. Galen Suppes, chief science officer of the MU-based Renewable Alternatives, developed a process for converting glycerin, a byproduct of biodiesel, into propylene glycol, which can be used as nontoxic antifreeze for automobiles. According to Suppes, the process appears to be most profitable and affordable because the price of glycerin is quite low as a feedstock compared to propylene glycol, and since glycerin is a byproduct of biodiesel production cycle, the technology can also reduce the cost of biodiesel production by as much as $0.40 per gallon of biodiesel. On top of that the market for propylene glycol is already established with a billion pounds produced every year.
http://www.renewableenergyaccess.com/rea/news/story?id=35527
USDA Announces Nearly $21 Million for Renewable Energy
USDA Rural Development Grant assistance has made assistance available for projects enhancing national energy independence and efficiency in 32 states. Included in the grants are biomass undertakings by various localized ventures, as part of the USDA's support of community growth and infrastructure development.
http://www.usda.gov/wps/portal/!ut/p/_s.7_0_A/7_0_1OB?contentidonly=true&contentid=2005/09/0372.xml
Company Seeks to Bring Biomass Back to Kaua'i
Hoping to utilize an old sugar mill to generate biobased electricity, a mainland company plans to circumvent the high energy costs associated with oil-based generation in Kaua'i, Hawaii. Collaboration with community leaders and studies of the situation indicate producing even a portion of Kaua'i's power from biomass could lower electricity prices for the region.
http://www.kauaiworld.com/articles/2005/09/11/business/bus01.txt
Canada: Government Official Unveils Biomass Program
Canada's Ontario province intends to capitalize on already-available biomass resources with the required processing of forestry waste into clean-burning oils. The oil burned for power would then help eliminate some strain on the current electricity system. The province has announced funding for a project as part of the ReNew Ontario program to produce these oils.
http://www.biobased.org/list2.php?storyid=8135
New Molecule May Aid In Production Of Biofuels And Fungi-resistant Plants
Biofuel production from cellulosic biomass could be revolutionized by the discovery of a new protein molecule which can break down chitin. Previously-resistant biomass has shown degradation in combination with the molecule, including material from insects, fungi, and shellfish. Potential use of waste from these materials would be maximized as biobased fuels with the new molecule.
http://www.sciencedaily.com/releases/2005/08/050805102015.htm
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Marketplace
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The Grain Prices graph shows the cost 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 Biodiesel Rack, Chicago, September 2005.
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Grain Prices
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September 2004 |
September 2005 |
% Change |
| Corn |
2.20 |
1.73
|
-21% |
| Soybean |
5.84 |
5.41 |
-7% |
|
| Fuel Supply |
September 2004 |
September 2005 |
% Change |
| Percent Refinery Utilization |
89.1 |
83.7 |
-6.12% |
| Production by Product - Finished Motor Gasoline (Million Barrels) |
8,514.5 |
8,338.0 |
-2.07% |
| Stocks - Finished Motor Gasoline (Million Barrels) |
130.8 |
126.1 |
-3.65% |
| Imports - Total Motor Gasoline (Million Barrels) |
852.3 |
1,166.5 |
36.87% |
|
|
Oxygenate Production |
June 2004 |
June 2005 |
% Change |
Ethanol Production
(Million Barrels) |
222 |
249 |
10.84% |
MTBE Production
(Million Barrels) |
144 |
151 |
4.64% |
|
|
Data Sources:
U.S. DOE-Energy Information
Administration, "Weekly Petroleum Status Report", "Monthly Oxygenate
Report"
USDA-National Agricultural Statistics Service, "Agricultural Prices,"
"Grain Stocks"
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R&D Awards
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| Title: |
USDA Rural Development Grant Assistance Awards |
| Description: |
Agriculture Secretary Mike Johanns announced the selection of 150 applicants to receive almost $21 million in USDA Rural Development grant assistance for renewable energy and energy efficiency projects in 32 States. The renewable energy and energy efficiency projects announced today involve a wide range of wind, solar, biomass, geothermal, and conservation technologies. |
| Recipients: |
Multiple |
| Award Total: |
$21 million |
| Sponsoring Office: |
USDA |
| URL: |
http://www.usda.gov/wps/portal/usdahome |
|
| Title: |
USDA Awards $12.6 for Biomass Research and Development |
| Description: |
Agriculture Secretary Mike Johanns today announced that 11 biomass research, development and demonstration projects were selected to receive $12.6 million for the Biomass Research and Development Initiative, a joint effort of USDA and the Department of Energy (DOE). The total value of the projects is nearly $19 million, including cost sharing of the private-sector partners. |
| Recipients: |
Multiple |
| Award Total: |
$12.6 million |
| Sponsoring Office: |
USDA |
| URL: |
http://www.usda.gov/wps/portal/ |
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Solicitations
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| 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: |
Department of Energy's Office of Science |
| Schedule: |
Applications may be submitted at any time. |
| URL: |
http://www.science.doe.gov/grants/FAPN05-01.html
|
|
| Title: |
SARE |
| Description: |
The program sponsors grants in research/education, professional development for agricultural educators and producer projects in sustainable agriculture |
| Government Agency: |
USDA Sustainable Agriculture Research and Education (SARE) |
| Schedule: |
Grant programs, funding amounts and funding cycles vary by region. |
| URL: |
http://www.sare.org/htdocs/sare/cfp.html |
|
| Title: |
TIFIA |
| Description: |
Provides credit assistance in the form of secured (direct) loans, lines of credit, and loan guarantees to public and private sponsors of eligible surface transportation projects. Highway, passenger rail, transit, and intermodal projects (including intelligent transportation systems) may receive credit assistance |
| Government Agency: |
U.S. Department of Transportation's Transportation Infrastructure Finance and Innovation Act (TIFIA) Joint Program Office |
| Schedule: |
Letters of interest are required and are accepted at any time. |
| URL: |
http://tifia.fhwa.dot.gov |
|
| 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: |
USDA SBIR |
| Description: |
The U.S. Department of Agriculture requests applications for Phase 1 and Phase 2 of the Small Business Innovation Research (SBIR) Program. The purpose of the USDA SBIR program is to provide an opportunity for U.S. owned, for profit small business firms to submit innovative, applied, R&D projects that address important problems facing American agriculture, and have the potential to lead to significant public benefit if the research is successful. Areas of interest include, but are not limited to, Animal Waste Management, Rural and Community Development, Aquaculture, and Wildlife. Up to $19.4 million expected to be available, award range $80K to $300K. |
| Government Agency: |
USDA |
| Schedule: |
Responses for Phase I due September 1, 2005, responses for Phase 2 due February 2, 2006. |
| URL: |
http://www.csrees.usda.gov/fo/fundview.cfm?fonum=1220 |
|
| Title: |
Inventions and Innovations |
| Description: |
The U.S. Department of Energy requests applications for the Inventions & Innovations Program (I&I). I&I supports energy-saving technologies in the conceptual and developmental stages of development. DOE is particularly interested in innovative technologies that fit within specific program areas, including biomass. |
| Government Agency: |
DOE |
| Schedule: |
The deadline for submission is December 2, 2005. |
| URL: | http://www.science.doe.gov/sbir/solicitations/FY%202006/contents06.htm |
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Events
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October 3-4, 2005
Washington, DC
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Biomass Research and Development Initiative
Technical Advisory Committee Meeting
Organizer: Department of Energy
Contact: Harriet Foster
Email: harriet.foster@ee.doe.gov
Tel.: 202 586-4541
Website:www.bioproducts-bioenergy.gov
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October 5, 2005
Washington, DC
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International Fuel Quality Center (IFQC) Biofuels Briefing
Organizer: IFQC
Contact: Dorothee Ward
Email: dward@ifqc.org
Tel: +32 (0)2 661 3080
Website:
www.worldfuelsconferences.com/pdf/biofuels.pdf
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October 5-7
La Coruña, Spain
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Congress on Biotechniques for Air Pollution Control
Organizer : University of La Coruna
Contact : Mr. Yaomin Jin
Email: jin@udc.es (or Kennes@udc.es)
Tel: 34-981-167065
Website: http://www.udc.es/congresos/biotechniques2005/
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October 6-9
Lons le Saunier, France
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BOIS ENERGIE, World's First wood energy exhibition
Organizer: ITEBE
Contact: Paul Stuart
Email: info@boisenergie.com
Tel: +33 384 47 81 03
Website: http://www.boisenergie.com/
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October 10-12
Atlanta, Georgia
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Biofuels Workshop & Tradeshow
Organizer: BBI International
Contact: Anne Wester
Email: awester@bbibiofuels.com
Tel: 719-539-0300
Website: www.biofuelsworkshop.com
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October 17 - 21
Palais des Congres, Paris, France
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14th European Biomass Conference and Exhibition:
Biomass for Energy, Industry and Climate Protection
Organizer: ETA-Florence/WIP-Munich
Contact: N/A
Email: biomass.conf@etaflorence.it
Tel: +39 055 5002174 or +49 89 720 12735
Website: http://www.conference-biomass.com/
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October 17-18
Washington, DC
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Renewable Energy in America: Phase II 2005
Organizer: American Council on Renewable Energy
Contact: Roussell, Jodie
Email: roussell@acore.org
Tel: 202.429.2031
Website: www.acore.org
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October 19-21
Richmond, British Columbia
|
6th Biennial Residue-To-Revenue Residual Wood Conference
Organizer: Logging & Sawmilling Journal
Contact: Jan Raulin
Email: tenaj@telus.net
Tel: 604-990-9970
Website: http://www.forestnet.com/woodconference/index.htm
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October 24-26
Austin, TX
|
The Tenth National Green Power Marketing Conference
Organizer: DOE/EPA/Center for Resource Solutions
Contact: David Glickson
Email: N/A
Tel: 303-275-4097
Website: http://www.eere.energy.gov/greenpower/conference/tenth.html
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Oct 25-27
Trondheim, Norway
|
Bioenergy 2005, Nordic Bioenergy Conference
Organizer: Norwegian Bioenergy Association
Contact: Norsk Bioenergiforening
Email: post@nobio.no
Tel: +47 23365870
Website: www.bioenergy2005.no
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Oct 25-26
Philadelphia, Pennsylvania
|
CatCon2005 Conference and Exhibition
Organizer: The Catalyst Group
Contact: Jeanne Drahos
Email: jmd@catalystgrp.com
Tel: 215-628-4447
Website: http://www.catalystgrp.com/conferences.html
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October 25-26
New York, NY
|
Renewable Energy Project Developer Forum
Organizer: Sustainable Energy Finance Initiative/UNEP Finance Initiative/BASE
Contact: Nadim Choudry
Email: roundtable@unepfi.org
Tel: +44 870 758 7808
Website: www.sefi-roundtable.org/
|
October 30-November 4
Cincinnati, Ohio
|
AIChE Fall 2005 Biorefinery Topical Conference
Organizer: American Institute of Chemical Engineers
Contact: Meetings Department
Email: meetmail@aiche.org
Tel: (212) 591-733
Website: www.aiche.org/annual/
|
November 2-4
Messe Frankfurt, Germany
|
Eurolipids: International Trade Fair for Fats & Oil
Organizer: European Federation for the Science and Technology of Lipids - Euro Fed Lipid
Contact: Mrs. Caroline Curik
Email: eurolipids@mfa.messefrankfurt.com
Tel: +49 (0)611 - 951 66-28
Website: http://www.eurolipids.de/
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November 3 - 4
Chicago, IL
|
Platts Biodiesel Investor Conference
Organizer: Platts Reporting
Contact: N/A
Email: registration@platts.com
Tel: 866-355-2930
Website: www.platts.com/Events/PB540X/index.html
|
November 7-9
Dresden, Germany
|
BIO-Europe 2005
Organizer: Biotech Industry Organization/EBD Group
Contact: Tom Voigt
Email: tvoigt@ebdgroup.com
Tel: +1 760 930 0500
Website: http://www.ebdgroup.com/bioeurope/index.htm
|
November 14-16
Rome, Italy
|
Green Power Mediterranean
Organizer: Green Power Conferences
Contact: Nadim Chaudhry
Email: nadim.chaudhry@greenpowerconferences.com
Tel: +44 870 758 7808
Website: http://www.greenpowerconferences.com/events/GreenPowerMed.htm
|
December 1, 2005
Los Angeles, CA
|
2020: California's Transportation Energy Future Conference
Organizer: WestStart - CALSTART Inc.
Contact:
Email: calstart@calstart.org
Tel:
Website: http://www.California2020.com
|
December 6-8, 2005
Manilla, Philippines
|
Asia Biofuels Conference & Expo
Organizer: The Stratton Group, Inc.
Contact: Pam Frazee, Operations Manager
Email: pam@biofuelsconferences.com
Tel: +01.605.323.0119
Website: http://www.asiabiofuels.com
|
December 6-8
Las Vegas, Nevada
|
Power-Gen International
Organizer: Penn-Well, Incorporated
Contact: Judy Tarpley
Email: pgiconference@pennwell.com
Tel: +1-918-831-9560
Website: www.power-gen.com
|
January 12 - 13, 2006
Honolulu, HI
|
Pacific Rim Summit on Industrial Biotechnology
Organizer: 2005 Biotechnology Industry Organization
Contact:
Email: pacrim@bio.org
Tel: 202-962-9200
Website: http://www.bio.org/pacrim/
|
January 19-20, 2006
Baltimore, Maryland
|
LMOP 9th Annual Conference and Project Expo
Organizer: Environmental Protection Agency
Contact: Brian Guzzone
Email: guzzone.brian@epa.gov
Tel: (202) 343-9248
Website: http://www.epa.gov/lmop/conf/index.htm
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February 9-12, 2006
Verona Italy
|
Bioenergy World 2006
Organizer: BioEnergy Events and Services
Contact: Paul Stuart
Email: paulstuart@bees.biz
Tel: +33 384 86 89 30
Website: www.bioenergy-world.com
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February 20-22, 2006
Las Vegas, Nevada
|
11th Annual RFA National Ethanol Conference
Organizer: Renewable Fuels Association
Contact: N/A
Email: info@ethanolrfa.org
Tel: (202)289-3835
Website: http://www.ethanolrfa.org/industry/conference/
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|
| 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. |
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|
