Newsletter Archive

In a joint solicitation effort in fiscal year 2002, the U.S. Department of Energy (DOE) and the U.S. Department of Agriculture (USDA) initiated a coordinated effort to support research that would advance the role of biomass in the U.S. economy. The two departments awarded funding to eight innovative projects; DOE chose six awardees and USDA chose two. Shortly thereafter, the two departments began work on the FY 2003 joint solicitation, announcing the winning projects this past September. Projects awarded funding under the FY 2002 joint solicitation are now taking their first steps. This is the first in a periodic series of articles that will summarize research activities being performed as a result of this solicitation.

Both of USDA's projects, "Continuous Isosobide Production from Sorbitol Using Solid Acid Catalysts" and "Value Added Products from Hemicellulose Utilization in Dry Mill Ethanol Plants," are moving along smoothly. The first project is run by Pacific Northwest National Laboratory (PNNL), and its cost-sharing partner is the Iowa Corn Promotion Board. The project's goal is to develop catalyst systems and a continuous process to produce isosorbide from sorbitol and to support a scale-up of the process, purification and recovery, and pilot plant operation. The aim of the latter project-run by PNNL and Idaho National Engineering and Environmental Laboratory, with cost-share assistance from the Iowa Corn Promotion Board and Kemin Biotechnology, L.C.-is to create value-added products from ethanol dry mill facilities using corn hemicellulose as a feedstock.

One project team led by DuPont with help from Diversa, the National Renewable Energy Laboratory, and Michigan State University is engaged in an effort to develop a new biorefinery concept called the Integrated Corn Biorefinery, or ICBR, that uses the entire corn plant-including the stalks, husks, leaves, and kernels-to develop both fuels and value-added chemicals. DuPont and DOE recently officially launched the project, at which time National Renewable Energy Laboratory Director Admiral Richard Truly explained, "With this project our nation takes a big step toward the day when we can produce many of the transportation fuels and chemical stocks we require from domestically grown corn and energy crops, as well as agricultural and forestry residues."¹ Says Program Director Ray Miller of the project team's progress thus far, "We are fully staffed and moving fast."

Cargill Dow has also made progress on its biorefinery project entitled, "Making Industrial Biorefining Happen!" The team has rescoped the project to meet DOE objectives and completed major partner contracts. Cargill Dow's overall goal is to collaborate with a team that includes companies Iogen and Genencor to develop technology to cost-effectively produce sugars from lignocellulosic biomass and convert them to fuels like ethanol and chemicals like lactic acid. So far, the team has designed a new pretreatment reactor system and is working on a second generation biomass sugar converting biocatalyst.

Work for the biorefinery project entitled, "Separation of Corn Fiber and Conversion to Fuels and Chemicals"-led by the National Corn Growers Association-began in April of 2003. The project, which involves Archer Daniels Midland (ADM) and Pacific Northwest National Laboratory (PNNL), entails economically deriving high-value chemicals and oils from lower value corn fiber. The project team envisions at least three benefits of its work: "improv[ing] supplies of valuable industrial chemicals and transportation fuels, . . . improv[ing] the value of corn purchased for grind, and support[ing] the overall value of feed grains, directly benefiting farmers and processors."

On October 2, 2003, Abengoa Bioenergy Corporation held a groundbreaking ceremony for its biorefinery project. Abengoa, with the help of Novozymes North America Inc. and the National Renewable Energy Laboratory, plans to build a new starch and biomass conversion technology pilot plant in York, Nebraska. "The objective of the facility," explained President and CEO of Abengoa Bioenergy Corporation Javier Salgado, "is to increase existing yields of ethanol from raw material inputs by developing innovative starch and biomass processing technologies for ethanol production." Nebraska governor Mike Johanns asserted, "Nebraska is proud to host this cutting-edge work that Abengoa is undertaking." Abengoa plans to complete its starch pilot plant in March of 2004 and its biomass pilot plant by the spring of 2005.²

The Biomass R&D Technical Advisory Committee will monitor Abengoa's project, and all projects awarded funding under USDA and DOE's joint solicitations. Under the Biomass R&D Act of 2000, the committee is required to provide recommendations on USDA and DOE's annual Biomass Initiative joint solicitation. At their most recent meeting, the committee affirmed the need to track the progress of projects awarded funding under DOE and USDA's joint solicitations, including the projects selected under the FY 2002 solicitation. They have decided to design a tracking system for these projects to measure their successes and failures and to aid the committee in making their future recommendations. An upcoming feature article will cover this effort in more depth as well as the other efforts outlined in the committee's work plan for fiscal year 2004.

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In 2000, Washington State consumed approximately 2,173.8 trillion Btu of energy. Petroleum accounted for about 42 percent of total consumption with hydropower accounting for another 38 percent of total consumption. Other major energy sources were natural gas and coal and nuclear; these sources accounted for about 14 and 5 percent of the state's total energy consumption, respectively.¹ Biomass use in the state, 92.9 trillion Btu, accounted for almost 5 percent of Washington State's total consumption. Biomass combustion facilities in the state are primarily saw mills and pulp and paper mills; however, some state facilities and a utility company use hog fuel or wood pellets to supply their energy needs. Other biomass power comes from the combustion of landfill and wastewater treatment biogas.²

In Washington, the city of Puget Sound is a member of the Clean Cities Coalition and in 2002 it was ranked among the top ten performing coalitions.³ Through the coalition, a number of projects have taken place across the state. Tacoma currently fuels its fleet of 85 garbage trucks on a biodiesel blend.⁴ The public transportation agency in Thurston County, Intercity Transit, has begun using biodiesel in its fleet of 67 buses.⁵ The McCord Air Force Base has opened an Alternative Fuels Service Station November 2002. This station provides ethanol and biodiesel, and over half, 400 vehicles, are operating on these alternative fuels.⁶ In another branch of the armed forces, the army, in Fort Lewis, has started fueling over 160 vehicles on the base with ethanol and biodiesel.⁷ And in Seattle, over 20 of the city's Light and Public Utilities vehicles are using biodiesel. ⁸

July of 2003 marked the start of a new package of tax incentives to encourage the development of in-state production facilities, distribution services and retail sales facilities for biodiesel and ethanol fuels in Washington State. Any new or expansion of ethanol or biodiesel production facilities will be able to defer sales or use taxes, and could be granted a total tax exemption on the facility. Qualifying buildings, equipment, and land used in the manufacturing of alcohol fuel, biodiesel, or biodiesel feedstocks are exempt from state and local property and leasehold taxes for a period of 6 years. Any person engaged in the business of manufacturing alcohol fuel, biodiesel fuel, or biodiesel feedstock will be able to reduce their Business & Occupation Tax from .484% to .138%. Finally, any amount received from the retail sale or distribution of alcohol or biodiesel fuel are exempt from the Business & Occupation Tax.⁹

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