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December 2003 Biobased Fuels, Power and Products Newsletter
 
Contents:
Feature Article: ARS Celebrates 50th Anniversary
Biomass Spotlight: Michigan
On the Hill
Grassroots
Market Place
Events
Solicitations
R&D Awards
 

Feature Article

ARS Celebrates 50th Anniversary

In November 2003, the principal in-house research agency of the U.S. Department of Agriculture (USDA), the Agricultural Research Service (ARS), celebrated its 50th anniversary. While increasing crop yields and quality, ARS researchers have also made significant gains in improving agricultural sustainability of feedstocks, along with addressing other environmental issues. The research that the ARS has conducted over the years has also benefited biomass through the discovery of new uses for agricultural commodities and new bio-based products. Research related to biobased products at ARS has focused on developing technologies leading to new and improved non-food products, including alternative fuels that expand markets for farm products, replace imports and petroleum-based products, and offer opportunity to meet environmental needs. This research also addresses the development of appropriate feedstocks for biobased products and bioenergy.

ARS research is organized into 22 national programs, two of which hold special interest to the National Biomass Coordination Office; the Bioenergy and Energy Alternatives National Program, and the Quality and Utilization of Agricultural Products National Program. More specifically, the Bioenergy and Energy Alternatives National Program's mission is to create jobs and economic activity in America, reduce the nation's dependence on foreign oil, and improve the environment by developing alternative energy sources and increasing the use of agricultural crops as feedstocks for biofuels. Likewise, the Quality and Utilization of Agricultural Products National Program's aim is to generate new knowledge, technologies, and processes to expand markets for U.S. agricultural products and make U.S. agriculture more competitive in the global economy.

The research components for these two programs include:

  • Biofuels
  • Biobased Products
  • Energy Crops

For the past 50 years, ARS has strengthened U.S. agriculture and is poised to do the same for biomass through the two programs highlighted above by addressing problems like feedstock quality, conversion technologies, feedstock costs, and storage stability. In fact, ARS research often addresses multiple problems at the same time. For example, research to develop a biofuels industry based on biomass crops such as switchgrass could convert subsidized idle land into an energy factory, leading to reduced dependence on imported fossil fuels while maintaining or improving soil and water quality.

Looking ahead, some of the projected outcomes of the Bioenergy and Energy Alternative National Program over the next five years involve:

  • Improved processes for enzymatic saccharification of corn fiber into component sugars, a necessary preliminary step for conversion of biomass to ethanol and other fermentative products.
  • New technologies that integrate feedstock pretreatment, biological conversion, and product recovery processes, as well as fundamental knowledge regarding fermentation, milling and membrane separations. The information gained will result in a reduction in capital and processing costs associated with biofuel production.
  • Higher value coproducts generated from current low-value production byproducts. Envisioned coproducts include specialty oils, novel polysaccharides that will compete with imported gums, sugar alcohol food additives that are currently imported, enzymes, and inexpensive aquaculture feeds.
  • Improved low-temperature properties of biodiesel, such that it may be blended with petro-diesel with no significant effects on low-temperature start-up and operability performance.
  • Reduced exhaust emissions from combustion of biodiesel and biodiesel-petrodiesel blends that meet environmental regulations.
  • Increased understanding of the principals governing small engine efficiency when run on biofuels. This knowledge will have direct application for farm use of biofuels in remote areas and for specialty farm applications.

Some of the anticipated outcomes over the next five years regarding the Quality and Utilization of Agricultural Products National Program are as follows:

  • New knowledge derived from improved understandings of the structure, properties, metabolism, and function of crop and animal components, particularly carbohydrates, proteins, and lipids, will generate development of a variety of new food, feed, and industrial products.
  • Improved knowledge regarding the genetic and biochemical control of value-added traits in plants and animals will allow for the development of improved animal products and plant varieties, and also create the potential for high-value designer crops.
  • Improved products and processes to extend the useful life of products during storage will reduce waste, improve efficiency, and allow new uses that are not now feasible.
  • New technologies to convert commodities and processing byproducts into important value-added products such as fat substitutes, high-quality animal feeds, improved textiles, pharmaceutical ingredients, enzymes, and cosmetics will fill demonstrated needs.
  • New high-value biomaterials, such as biodegradable plastics, adhesives, lubricants, and natural rubber from domestic plants, will be created and made available. The new materials will fill specific needs such as reducing the bulk of inert, non-biodegradable plastics currently going to landfills or reducing dependence on imports. They will also diversify the economic base of agriculture and stabilize income streams for farmers.

Often, ARS is used as a case study to implement the programs it is developing. For instance, on Tuesday, October 28, 2003 ARS, the Office of Energy Policy and New Uses and USDA's Assistant Secretary for Administration offered the first training on steps being taken by USDA to implement mandatory biobased purchasing requirements for the Federal Government. The Beltsville Agriculture Research Center (BARC) was used as a case study and has been a model for success. A condensed video of the training can be found on the USDA Biobased Products and Bioenergy Coordination Council web site: http://www.ars.usda.gov/bbcc/. Included in the streaming video is a six minute video program, "Greening BARC" that details how BARC is leading the way at USDA in environmental management systems.

As agriculture's contribution to America's energy future grows in importance, ARS will continue to develop biomass research programs to provide pathways for a domestic, plentiful, and environmentally sound energy supply.


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Biomass Spotlight: Michigan

In 2000, Michigan residents consumed approximately 3,122 trillion Btu of energy. Petroleum accounted for about 34 percent of total consumption. Other major energy sources were natural gas and coal; these sources accounted for about 30 and 25 percent of the state's total energy consumption, respectively.1 Biomass use in the state consisted of 90 trillion Btu of wood and waste used in the residential, commercial, and industrial sectors (wood-fueled electric generation accounts for approximately 1 percent of Michigan's electricity)2 and 8 trillion Btu (2,267 thousand barrels) of ethanol for the transportation sector.3 Michigan's first The facility has a production capacity of 40 MGY, is 95 percent computer controlled, and includes an on-site microbiology laboratory.4 In Michigan, approximately 17.7 billion kWh of electricity could be generated using biomass, enough electricity to supply the annual needs of 1,769,000 average homes.5

The Michigan Biomass Energy Program(MBEP) sponsors regular solicitations with with average amounts of $25,000 to $30,000 awarded.6 Earlier this year, MBEP awarded funding to six biomass projects through such a solicitation, among which are four education efforts: 1) a project by Urban Options to educate students about biofuels and conduct a biofuel motor rally, 2) an effort by Kettering University to create a Web page about ethanol, 3) Grand Valley State University's education project concerning the use of biodiesel in marine applications, and 4) an effort by Calhoun Conservation District to educate teachers, students, and farmers about biomass energy. In addition to these projects, MBEP awarded funding for a feasibility study run by Michigan Allied Poultry Industries to create energy from poultry litter and Michigan State University's anaerobic digestion demonstration project.7 MBEP plans to release its next solicitation early next calendar year.

One notable project MBEP has funded is its $10,000 matching award to Kettering University to configure a snowmobile engine to run on E-85, a mixture of 85 percent ethanol and 15 percent gasoline, for it to participate in the Clean Snowmobile Challenge. This is a significant project for Michigan, since over 278,000 snowmobiles were registered in the state in 20008 and Michigan is home to more than 6,100 miles of designated snowmobile trails.9 Kettering University's Gregory W. Davis recently reported some of the project's findings regarding emissions reductions. When a snowmobile run on E-10 (a blend of 10 percent ethanol and 90 percent gasoline) was compared with a typical two-stroke control snowmobile, Southwest Research Institute tests showed emissions reductions in the vehicle run on E-10 of almost 95 percent in unburned hydrocarbons, 67 percent in carbon monoxide (CO), and 91 percent in nitrogen oxides (NOx). Addition reductions of 50 percent in unburned hydrocarbons, 47 percent in CO, 58 percent in particulate matter, and 18 percent in NOx were shown when E-85 was used.10

In addition to its regular grants, MBEP offers a maximum of $2,500 for each workshop or event that increases public awareness about energy or fuel derived from biomass. This award is geared towards fleets, farmers, students, flexible fuel vehicle owners, and other relevant groups. Thus far, four biomass energy workshops have been conducted using funding provided by MBEP. Also, Michigan's Energy Office solicits proposals for energy efficiency and renewable energy education projects, including projects related to bioenergy and biofuels annually. The maximum amount awarded through one of these grants is $6,000.11

Currently, four ultilities offer green power programs in Michigan. The Lansing Board of Water and Light's program includes biomass power. An addtional $7.50 per month will buy a Lansing a customer a 250 kWh block of power generated primarily from hydropower and biomass. Participants are required to commit to purchasing green power for a minimum of three years. As of September of 2003, the company had sold 741 blocks of green power. Also, Mainstay Energy allows customers with renewable energy systems to sell their green tags (or renewable energy credits) to the company.12

1 Energy Information Administration, "Table 7. Energy Consumption Estimates by Source, Selected Years, 1960-2000, Michigan."www.eia.doe.gov
2 Energy Information Administration, "Table 8. Residential Energy Consumption Estimates, 1960-2000, Michigan." www.eia.doe.gov;"Table 9. Commercial Energy Consumption Estimates, 1960-2000, Michigan."www.eia.doe.gov;"Table 10. Industrial Energy Consumption Estimates, 1960-2000, Michigan."www.eia.doe.gov
3 Energy Information Administration, "Table 11. Transportation Energy Consumption Estimates, 1960-2000, Michigan." www.eia.doe.gov; Michigan Biomass Energy Program
4 Michigan Biomass Energy Program
5 Office of Energy Efficiency and Renewable Energy. "Michigan Bioenergy Resources: Recent studies indicate that Michigan has a good biomass resource potential." http://www.eere.energy.gov/state_energy/tech_biomass.cfm?state=MI
6 Michigan Biomass Energy Program
7 Michigan Biomass Energy Program. "Project Funding." http://www.michiganbioenergy.org/funding/
8 Michigan Biomass Energy Program. "CIS Director Announces $10,000 Energy Grant to Kettering University to Improve Use of Ethanol in Snowmobiles." 30 May 2000http://www.michiganbioenergy.org/funding/ketteringsnow00pr.htm
9 Department of Natural Resources. "Snowmobiling in Michigan." http://www.michigan.gov/dnr/0,1607,7-153-10365_14824-32291--,00.html /a>
10
http://ethanolfacts.kettering.edu/
11 Database of State Incentives for Renewable Energy. Michigan Incentives for Renewable Energy. http://www.dsireusa.org/library/includes/map.cfm?State=MI&CurrentPageId=1
12See note 9.

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On the Hill

Congress is considering a number of bills that affect the use of biomass resources to produce energy and biobased products. For more information, visit thomas.loc.gov
Bill # Sponsor Summary Last Action
H.R. 2673 Rep. Henry Bonilla
(Republican - TX)
T: ((202) 225-4511
Making appropriations for Agriculture, Rural Development, Food and Drug Administration, and Related Agencies for the fiscal year ending September 30, 2004, and for other purposes.
11/25/2003:Conference committee actions. Status: Conferees agreed to file conference report.
H.R. 6 Rep. W. J. Tauzin
(Republican - LA)
T: (202) 225-4031
To enhance energy conservation and research and development, to provide for security and diversity in the energy supply for the American people, and for other purposes.
11/21/2003:Last minute negotiations have failed to secure the 60 votes needed to bring the bill to a vote in the Senate. Congressional leaders announced they would postpone further action on the energy bill until next year
S. 139 Sen. Joseph Lieberman
(Democrat - CT)
T: (202) 224-4041
A bill to provide for a program of scientific research on abrupt climate change, to accelerate the reduction of greenhouse gas emissions in the United States by establishing a market-driven system of greenhouse gas tradeable allowances that could be used interchangably with passenger vehicle fuel economy standard credits, to limit greenhouse gas emissions in the United States and reduce dependence upon foreign oil, and ensure benefits to consumers from the trading in such allowances.
10/30/2003:Referred to Senate Committee on Environment and Public Works.
H.R. 3336 Rep. Paul E. Gillmor
(Republican - OH)
T: (202) 225-6405
To clarify congressional approval of certain State energy production tax practices.
10/27/2003:
Referred to the Subcommittee on Commerce, Trade and Consumer Protection
H.J. Res. 73 Rep. C.W. Young
(Republican - FL)
T: (202) 225-5961
Continuing appropriations through 11/7/2003. Also incorporated by reference the provisions of FY 2004 appropriations bills as passed House: H.R. 2673 - Agriculture; H.R. 2799 - Commerce-Justice-State; H.R. 2765 - District of Columbia; H.R. 2800 - Foreign Operations; H.R. 2989 - Transportation-Treasury; and H.R. 2861 - VA-HUD. For further action on the appropriations bills, see H.R. 2673.
10/21/2003:
So far, three FY 2004 spending measures have been signed into law:Defense (H.R. 2658)Homeland Security (H.R. 2555)Legislative Branch (H.R. 2657)Four bills remain in conference, and House Appropriations Committee Chairman Young today stated his goal of reporting these four bills by the end of next week.
H.R. 3903 Rep. Charles F. Bass
(Republican - NH)
T: (202) 225-5206
To amend the Clean Air Act to establish a national uniform multiple air pollutant regulatory program for the electric generating sector.
10/6/2003:
Referred to the Subcommittee on Energy and Air Quality.
H.R. 130 Rep. Marcy Kaptur
(Democrat - OH)
T: (202) 225-4146
To provide for a Biofuels Feedstocks Energy Reserve, and to authorize the Secretary of Agriculture to make and guarantee loans for the production, distribution, development, and storage of biofuels.
10/1/2003:
Introductory remarks made on the measure.
H.R. 3119 Rep. Kenny Hulshof
(Republican - MO)
T: (202) 225-2956
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for biodiesel used as a fuel.
9/17/2003:
Referred to the House Committee on Ways and Means.
S. 1548 Sen. Charles Grassley
(Republican - IA)
T: (202) 224-3744
A bill to amend the Internal Revenue Code of 1986 to provide incentives for the production of renewable fuels and to simplify the administration of the Highway Trust Fund fuel excise taxes, and for other purposes.
9/17/2003:
Committee on Finance. Ordered to be reported with an amendment in the nature of a substitute favorably.

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Grassroots

Army To Use Biomass Packaging
Recently it was estimated that 4,290 tons of waste are generated just from the packaging for the "MRE (Meal Ready to Eat)" emergency food soldiers carry with them in the field. Dr. Jo Ann Ratto, an Army researcher, recently received a three-year grant from the Department of Defense's Strategic Environmental Research and Development Program (SERDP) to develop biodegradable packaging for the rations. Currently Dr. Ratto's team is using polylactic acid (PLA), which is biodegradable in compost and soil and made from starch, as a starting point in the packaging and working to improve it to meet the military's criteria for performance and shelf life.
http://acs.yellowbrix.com/pages/acs/Story.nsp?story_id=43592150&ID=acs&scategory=Chemicals&

Biodiesel Use Earns Intercity Transit Top Award
Early in 2002, Intercity Transit officials pumped a partial blend of biodiesel into a few buses and watched for engine troubles or operational problems. There were none. So in December, 2003, they trotted out the rest of their fleet for fuel and sent them out on the street. For their switch to biodiesel Intercity Transit received the state's top environmental award. "You're the first in our region to make the shift to fueling all of your buses to a blend of biodiesel," said Mary Burg, air quality manager for the state Department of Ecology as she presented the Environmental Excellence award to the Authority. "You're not just piloting this year. You're not just sticking your toe in the water. You're just doing it -- your entire fleet is burning biodiesel."
http://www.theolympian.com/home/news/20031118/southsound/152172.shtml

Biodiesel Planned for Missoula Snowplows
This month, the city motor fleet is starting a pilot project testing biodiesel fuel in its tanks. A new public tank at the Cenex station on Brooks Street is expected to open in late November, and the city trucks will be buying $2,500 worth of fuel there this winter. The city will test it in snowplows, street sweepers, and if the fund holds out, diesel-fueled lawn mowers next spring.
http://www.montanaforum.com/rednews/2003/11/15/build/fuels/biodiesel.php?nnn=1

Biomass Plant to Recycle Zoo's Animal Waste
Tama Zoological Park in the western Tokyo suburb of Hino boasts 420 animals representing 59 species, including elephants, lions, and giraffes together generate some 1,060 tons of droppings annually, which cost 30 million yen to dispose of. The Tokyo Metropolitan Government, which runs the zoo, recently adopted a plan to recycle the dung in the form of biomass energy to cut disposal costs and save on the use of fossil fuels. The plan calls for the animal droppings to be fermented to produce biogas -- methane and carbon dioxide -- for use as fuel. The metropolitan government and the company will research how to use the waste, then start producing biogas in an experimental processing plant in 2005, paving the way for Tama Zoological Park to become Japan's first zoo to recycle animal dung as biomass energy.
http://www.japantimes.co.jp/cgi-bin/getarticle.pl5?nn20031112b7.htm


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Market Place

Data Sources:
OxyFuel News: Ethanol
(U.S. Avg: Terminal); MTBE (Houston, TX: spot); Gasoline (Gulf Coast: spot, regular grade)
USDA-National Agricultural Statistics Service, "Agricultural Prices," "Grain Stocks"


Grain Prices Nov 2002 Nov 2003 % Change
Corn Prices
($/bushel)
2.27 2.24 -1%
Soybean Prices ($/bushel) 5.46 7.37 26%
Fuel Supply Nov 2002 Nov 2003 % Change
Motor Gasoline Production ('000 b/d) 8823 9067 2.69%
Motor Gasoline Imports
('000 b/d)
908 769 -18.08%
*Motor Gasoline Stock
(Mil. bbl)
149.2 140.2 -6.42%
Refinery Utilization Rate 90.0 92.2 2.39%
Fuel Production Oct 2002 Oct 2003 % Change
*Ethanol Production
('000 b/d)
159 188 15.43%
*MTBE Production
('000 b/d)
189 155 -21.94%

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


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Events
December 7-11, 2003
Bali, Indonesia
The 4th International Conference on Fluid and Thermal Energy Conversion (FTEC 2003)
www.uic.edu/labs/trl/FTEC2003.html
January 23-27, 2004
Atlanta, GA
2004 Wheat Industry Conference
http://www.wheatworld.org/html/calendar.cfm?ID=9e
February 1-4, 2004
Palm Springs, CA
2004 National Biodeisel Conference and Expo
http://www.biodiesel.org/conference/default.asp
February 16-18, 2004
Miami, FL
9th Annual National Ethanol Conference
http://www.ethanolrfa.org/
February 19-21, 2004
Montreal, Quebec Canada
BIOEXPO 2004: A Tradeshow for Biotechnology Products/ Processes/ Applications & Services
http://www.bioexpo.ca
March 1-3, 2004
Las Vegas, NV
POWERGEN - Renewable Energy Conference
http://www.electricpowerexpo.com
March 2-4, 2004
Las Vegas, NV
Commodity Classic
http://www.commodityclassic.com/
March 15-17, 2004
Portland, OR
Biocycle West Coast Conference 2004
http://www.jgpress.com/Conferences/NoInfoAvailable.htm
May 10-14, 2004
Rome, Italy
2nd World Conference and Technology Exhibition on Biomass for Energy, Industry and Climate Protection
http://www.conference-biomass.com/
June 2-4, 2004
Jonkoping, Sweden
World Bioenergy 2004
http://www.elmia.se/worldbioenergy/
July 28-30 2004
Duluth, MN
ACE Annual Meeting & Ethanol Conference
http://www.ethanol.org/conference.htm
Click here for additional bio-related events.

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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: Department of Energy's Office of Science
Schedule: Applications may be submitted at any time.
URL: www.science.doe.gov

Title: Renewables in Hawaii
Description: Renewable Hawaii, Inc. requests proposals for investment opportunities in projects to supply renewable energy on the islands of Maui, Molokai, and Lanai. The intent of this RFP is to stimulate the addition of cost-effective renewable energy in HI, promote viable projects that will integrate positively with the utility grids, and encourage renewable energy generation activity lacking in targeted categories. Renewable generation areas of interest include: Wind, solar energy, hydropower, pumped storage hydroelectric, landfill gas, waste to energy, geothermal resources, ocean thermal energy conversion, wave energy, biomass including municipal solid waste, biofuels or fuels derived entirely from organic sources, hydrogen fuels derived from renewable energy, fuel cells where the fuel is derived entirely from renewable sources, or other technologies deemed to be renewable in nature.
Government Agency: Renewable Hawaii, Inc.
Schedule: Responses due 12/4/03
URL: es.epa.gov

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R&D Awards
There are no awards for this month.
National Biomass Initiative
U.S. Department of Energy, 1000 Independence Avenue, SW, Mail-Code EE-1, Washington DC 20585
Office: 202-586-4541 | Fax: 202-586-1640 |
Biomass@bcs-hq.com
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BCS, Incorporated