Newsletter Archive

Contents:
Feature Article: Biobased Products and Bioenergy: The Future is Now

Grassroots
Market Place
On the Hill
Events
Solicitations
R&D Awards

Feature Article

Biobased Products and Bioenergy: The Future is Now
by Ron Buckhalt, Senior Marketing Specialist, U.S. Department of Agriculture

In coordination with the Department of Energy and other Federal partners, the U.S. Department of Agriculture (USDA) is speeding the development, commercialization, and adoption of biobased products and feedstocks for use in the U.S. economy.

The importance and timeliness of this initiative comes from the convergence of several important energy efficiency, farm economy, and environmental issues.

First, the call for action is part of President Bush's National Energy Plan. "The U.S. has significant potential for renewable resource development. These non-depletable sources of energy are domestically abundant and often have less impact on the environment than conventional sources. They can provide a reliable source of energy at a stable price, and they can also generate income for farmers, landowners, and others who harness them." Nature's Power, Increasing America's Use of Renewable and Alternative Energy, National Energy Policy, May 17, 2001.

Second, large U.S. and world crop production limits the opportunities to increase the prices of agricultural commodities. It also has proven difficult to increase U.S. agricultural exports from the current low $50 billion range back to the $65 billion levels of the first half of the 1990s.

Third, there is a growing recognition that the use of biobased feedstocks can be beneficial for our environment by substituting for petrochemical feedstocks. Using petrochemical feedstocks and products from those feedstocks adds greenhouse gases and escalates climate change pressures.

Fourth, there is the matter of energy security. The energy challenges our Nation faces today offer tremendous opportunities for agriculture to help us solve our energy problems through the production of domestic liquid fuels, such as ethanol and biodiesel. Renewable energy is good for independence, good for farmers, and good for the environment.

USDA is leading by example. On August 7, 2001, Secretary Ann Veneman announced that USDA agencies will use biodiesel and ethanol fuels in fleet vehicles where practical and reasonable in cost. This new policy shows USDA's support for the National Energy Plan as well as improving our environmental air quality, the prosperity of the rural economy, and our Nation's energy independence.

To further stimulate the production of ethanol and biodiesel, USDA has made available $150 million in 2001 to companies that increase their purchases of raw commodities to make these liquid fuels.

USDA also established a Web site to serve as a source book for those looking for biobased products, http://www.usda-biobasedproducts.net/public. The site currently offers product sources in the categories of Alternative Fuels and Fuel Additives, Lubricants and Functional Fluids, and Solvents/Cleaners and will soon identify product sources in additional categories.

At the same time, USDA is working with the Defense Logistics Agency (DLA) to identify "attributes" of biobased products for inclusion in DLA's product catalogs. This will make it easier for military purchasers and others using DLA's catalogs to identify and purchase biobased products. DLA already is seeking nearly two million gallons of biodiesel - a first.

Reprinted with permission from Closing the Circle News, White House Task Force on Recycling (Fall 2001, Issue 24).

On the Hill

Congress is considering a number of bills that affect the use of biomass resources to produce energy and biobased products. The following table contains bills that have been active since October 18, 2001. For more information, visit: http://thomas.loc.gov/

Bill #	Sponsor	Summary	Last Action
S.1766	Sen. Tom Daschle (Democrat - SD) T: (202) 224-2321	The Energy Policy Act of 2002 provides for the energy security of the Nation, and for other purposes.	12/06/01
S. 1628	Sen. Tom Harkin (Democrat - IA) T: (202) 224-3254	The Agriculture, Conservation, and Rural Enhancement Act of 2001 works to strengthen the safety net for agricultural producers, to enhance resource conservation and rural development, to provide for farm credit, agricultural research, nutrition, and related programs, and to ensure consumers abundant food and fiber.	11/14/01
H.R. 2311	Rep. Sonny Callahan (Republican - AL) T: (202) 225-4931	The President signed the Energy and Water Development Appropriations Act of 2002 into law on November 12, 2001, and it makes appropriations for energy and water development for the fiscal year ending September 30, 2002.	11/12/01
S. 1566	Sen. Harry Reid (Democrat - NV) T: (202) 224-3542	The Renewable Energy Incentives Act amends the Internal Revenue Code of 1986 by modifying and expanding the credit for electricity produced from renewable resources and waste products.	10/18/01

Grassroots

John Deere Approves Eco-Friendly Biodiesel Fuel for its Products
John Deere has approved the use of soy-based biodiesel in all of its diesel-powered products. Ted Breidenbach, Manager of Worldwide Engine Engineering for John Deere Power Systems, said, "The quality of Biodiesel as a fuel source has improved tremendously in recent years. We're confident that when it's used per factory specifications it will generate the performance producers have come to expect from their John Deere equipment." After thorough testing and analysis, John Deere engineers have developed a number of guidelines for optimum use of biodiesel. These include checking with fuel suppliers to make sure the biodiesel fuel meets fuel specifications, using concentrations of up to 5% biodiesel to minimize problems with fuel degradation, and keeping storage and vehicle tanks as full as possible to prevent moisture. To read the full article, visit: http://www.deere.com/deerecom/_newsroom/ecofriendbio.htm

Kansas City Buses to Run on Biodiesel
U.S. Senator Kit Bond (R-MO) announced that the Kansas City Area Transportation Authority (KCATA) will begin using biodiesel in its new bus rapid transit system (BRT). Bond successfully secured $7.5 million for the BRT, part of which will pay for biodiesel use. The announcement was made during a press conference at the KCATA central office in November. The BRT system should be fully operational and begin using biodiesel by 2004. To read the full article and find out more about biodiesel, visit: http://www.biodiesel.org/default2.htm

Soy-Based Stain Used in National Home Project
Better Homes and Gardens recently used a soy-based fiber-cement-siding stain on a demonstration house featured in the November issue of Better Homes and Gardens Magazine. The product, called NatureStain, is a unique blend of acrylic emulsion with a soybean oil derivative. Unlike paint, NatureStain penetrates the surface of siding without cracking. The product is also non-toxic, readily biodegradable, and outperforms acrylic latex primer and paint products. To read the full article, visit: http://www.unitedsoybean.org/lib_fs_artview.cfm?id=7&type=three

Utility Explores Future of Bio-Gas by Converting Manure into Power
Through a unique partnership between a utility and dairy farmers, Portland General Electric is building and maintaining anaerobic methane digesters at its own expense at four Oregon dairy farms. The digesters will help dairy farms manage manure, comply with tightening environmental standards, and help PGE increase the amount of renewable energy in its portfolio. At one of the farms, the Three Mile Canyon Farm in Eastern Oregon, PGE will build a system that can handle 675 tons of manure daily and produce four megawatts of power - enough to light 2,500 homes. The system will cost PGE about $16 million. To read the entire story, visit: http://enn.com/news/wire-stories/2001/11/11272001/ap_gas_45671.asp

Pioneer Finds Energy in Corn
Pioneer Hi-Bred International, Inc. has teamed up with Carbon Energy Technology, Inc. of Ames, IA, to research and test a process that will burn unused corn, corn cobs, and stalks and convert them into useful heat. Through the process, unused feed corn is fed into a gasifier, where it is combined with sand and air and heated in excess of 1,200 degrees Fahrenheit. The combustible gas that is created is then burned to produce heat, which is used to dry seed corn after harvest in September and October. To read the full article, visit: http://www.dmregister.com/news/stories/c4789013/16670864.html

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"