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There is potential to further develop the world's biomass resources. Only 1.3% of the sustainable resources are currently utilized. Biomass could be one of the world's largest and most sustainable energy resources. The problem is not the availability of the resource, rather the sustainable management and the delivery of the energy to the individuals that need it. It is estimated that the sustainable world potential for biomass is 270,000,000 TJ, which is more than double the total U.S. energy consumption in 2001. Among the many biomass resources, which can be converted into clean energy with current technology, is bagasse - agriculture wastes such as residue from sugar cane. Exhibit 2 lists the 10 leading countries in terms of bagasse potential.

Biomass can provide a dual benefit for many countries by acting as a carbon sink to reduce greenhouse gas emissions in response to the Kyoto Protocol and other climate change agreements while at the same time helping to reduce consumption of fossil fuels. Bioenergy options offer cost-effective and sustainable opportunities toward meeting emission reduction targets while providing additional benefits from the wide availability of biomass material. Bioenergy also provides a positive impact on a country's employment picture by creating more local jobs through harvesting and processing.

Interest in liquid fuels has fostered R&D programs for the conversion of an assortment of feedstocks to easily transportable fuels. In North and South America, the production of ethanol for the automotive sector is an established and growing market. Commodities such as corn, sugar cane, and other grains are in surplus in these areas and therefore will likely become the input of economic choice for the development of alternative fuels in the Americas.

Realizing the potential of biomass will require continued R&D to help lower the cost of clean and sustainable agronomic practices, and processing, and conversion of biomass technologies. In October of 2000, the International Energy Agency (IEA) Renewable Energy Working Party (REWP) organized a workshop with the purpose of clarifying renewable energy R&D issues, including biomass. The objective was to facilitate market deployment of renewable energy technologies to address concerns about the impact fossil fuels have on climate change, while promoting the economic benefits associated with these technologies. The group identified high priority areas to focus biomass R&D including improvements in conversion technologies in combustion systems, gasification, liquid fuels, co-firing of biomass wastes with coal and process modeling and biotechnology. The group stated that, "The outlook for bioenergy development is for 'biorefineries' that produce solid, gaseous, and liquid fuels and chemicals using biological and/or thermal conversion processes." The results of the workshop are summarized in "Needs for Renewables" (link http://www.iea.org/techno/renew/needs.pdf).

Within the United States there are industry groups such as the International Utility Efficiency Partnership (IUEP), whose mission is "to identify and support international energy project development activities, which reduce, limit, or avoid emissions of greenhouse gasses." The IUEP assists American utilities to identify and implement international energy projects with regard to cleaner technologies such as biomass. The IUEP has assisted in several biomass projects throughout Central America, the Philippines, and Brazil. One example is NovaGerar, which was awarded a 20-year contract by Empresa Municipal de Limpeza Urbana (EMLURB) to explore the landfill gas potential of two landfill sites, Marambaia and Andrianopolis in the Rio de Janeiro state.

Companies, such as NovaGerar, are tapping into the under-utilized bio resources in the world. They are taking advantage of the international demand for cleaner and renewable technologies that are needed by others to respond to bilateral climate change agreements. As these markets expand, new, more efficient biomass technologies will evolve.

Pre-Feasibility Model Developed for Ethanol Plants
To help producers and other potential investors analyze potential ethanol facility investments, the Agricultural Marketing Resource Center (AgMRC) has developed an online ethanol pre-feasibility model in cooperation with Business Advisory Services, a management company affiliated with the financial institution, Co-Bank. The model is available at http://www.teambas.com/isu/src/isutop.php and introduces business issues about ethanol production with information on the potential of building ethanol plants. Through the Web site, users can select different and varying input and output costs and analyze the effect those costs have on plant profitability.
www.zwire.com

Proposed Ethanol Plant Would be Mid-Atlantic's First
A York-based firm, Penn-Mar Ethanol LLC, plans to invest $80 million to build the Mid-Atlantic region's first ethanol plant in south-central Pennsylvania. The plant will produce more than 50 million gallons per year of ethanol. In addition to ethanol, the proposed Pennsylvania plant would produce dried distillers grain, a high-protein ingredient in livestock feed, and carbon dioxide for food processing and soft-drink makers, Penn-Mar officials said.
www.miami.com

Defense Agency Wins White House Award for Use of Bio-Based Fuels
The Defense Energy Support Center won a 2003 White House Closing the Circle Award for promoting the use of bio-based fuels in the federal government. The Defense Energy Support Center developed a procurement process for the military services and federal civilian departments to purchase E85 and B20 fuel. The White House Closing the Circle Awards recognizes commitment to environmental stewardship. Twenty-six winners were announced on April 22. The full list of winners is available on the Office of the Federal Environmental Executive Web site at
www.ofee.gov.