Bioamss Initiative Newsletter

Feature Article October 2006
The Federal Biomass R&D Technical Advisory Committee Updates its Vision for Bioenergy and Biobased Products in the United States

Michael Manella
BCS, Incorporated

The Vision for Bioenergy and Biobased Technologies in the United States (2002) established far reaching goals to support the increased use of biopower, biofuels, and biobased products. It established aggressive goals for the role each of these should play in the U.S. economy by 2010, 2020, and 2030. The Vision, developed by the Biomass Research and Development Technical Advisory Committee (Committee), also provided the basis for creating the Roadmap for biomass technologies in the United States. The Roadmap represented the research strategy for achieving Vision goals. These documents together provided a set of goals as well as specific paths for the United States to achieve a biobased economy. They have also been used to provide technical guidance for the joint R&D solicitation issued annually by the U.S. Departments of Energy and Agriculture.

In August 2005, the Energy Policy Act of 2005 (EPAct 2005) Title IX, Section 941, directed the Secretaries of Agriculture and Energy to "update the Vision and Roadmap documents prepared for Federal biomass research and development activities." In November 2005, the Committee held a workshop facilitated by DOE and USDA to update the Vision in coordination with the Interagency Biomass Research and Development Board.

This workshop drew experts from industry, academia, federal researchers and non-profit organizations throughout the U.S. to review the status of the Vision. Although much progress has been made toward the biofuels goals established in the 2002 Vision, real progress toward the biopower and biobased products goals was concluded to be uncertain. The nation is on track to achieve the Committee's biofuels goal for 2010 but does not appear on track to achieve its 2010 goals for biopower and biobased products. Rather than lower their sights and reduce the original Vision goals for 2010, the Committee decided to adhere to their original far reaching 2010 goals to illustrate the aggressive approach the U.S. must pursue to achieve the vision of a biobased economy. Additionally, the Committee included an interim goal for 2015 and reviewed and updated its 2020 and 2030 goals. Further, in its Vision update, it requested a study on the status of production of biobased products. It also clarified the definition of its goals for biofuels, biopower, and biobased products. Updated Vision goals are shown in Exhibit 1.

Exhibit 1: Vision Goals
Vision Goals

The updated Vision was reviewed by an independent panel of peer reviewers. As a final step, the Vision was reviewed by the 2005 and 2006 Committees, as well as the Interagency Biomass Research and Development Board for comments and approval. In all, the Vision was reviewed by over 74 experts from academia, industry, and government. The Vision will be available on the National Biomass Initiative website.

The new Vision is being used as guidance for updating the Committee's 2002 Roadmap for Bioenergy and Biobased Products in the United States. A series of regional roadmap workshops have been held to update the Roadmap and to reflect the regional nature of biomass feedstocks and related infrastructures. The Roadmap is scheduled for release in 2007.

Regional Biomass Roadmap Workshops
  • Central - Chicago, IL April 11-12, 2006; Chairman: Tom Binder, ADM
  • Western - Sacramento, CA August 8-9, 2006; Chairman: Ralph Cavalieri, Washington State University
  • Eastern - Syracuse, NY September 19-20, 2006; Chairman: Doug Hawkins, Rohm & Haas

Volatility in oil and gas prices and growing dependence on foreign sources of oil has heightened the demand to diversify our national's energy portfolio. The public outcry for less expensive energy will make the Vision and Roadmap critical documents in providing guidance to ensure more diverse and secure energy resources for the U.S. The Department of Defense has already begun official inquiries into how they can incorporate biofuels into its fleets. Calls for cleaner burning fuels, increased rural development, and better management of forest lands are also strong drivers for increased production of biobased power, fuel, and products.

Increased prices of natural gas have been a strong reason for U.S. chemical producers to move to the Middle East where natural gas is more affordable. Natural disasters such as Hurricane Katrina highlighted the vulnerability of the U.S. petroleum refining industry which is concentrated in the Gulf of Mexico. Political uncertainty in many of the major petroleum-producing countries such as Iran, Iraq, Venezuela, and Nigeria has also added to petroleum supply uncertainty. All of these factors illustrate the need for increasing domestic resources to address U.S. energy demand. The Vision and Roadmap provide guidance for the U.S. to diversify its energy portfolio, boost rural economic development, and decrease vulnerability of energy supply to political events or natural disasters.


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Biomass Spotlight: Brazil
Brazil began developing its biomass sector in the early 1970's. Since that time, Brazil has made major strides in developing its biomass program and is emerging as a world leader in renewable energy. As of result of Brazil's accomplishments in the biomass field, particularly in developing ethanol from sugarcane, many countries, including the U.S., are looking to Brazil for ideas on establishing a solid energy policy that secures future for energy and environment.

Spurred by the oil price fluctuations in the 1970s, Brazil's Pro-Ethanol Program provided subsidies to the sugar industry to produce excess sugar for the purpose of creating biofuels. Today the Brazilian biofuels sector is self-sufficient and profitable. Unlike the United States, where corn is used to produce most biofuels, Brazil relies on its most abundant crop, sugarcane. As of 2001, biofuels production accounted for almost half of the total use of sugarcane in Brazil. Most of the sugarcane production occurs in the southwest region of the country, as does the majority of ethanol production (Exhibit 1).

Exhibit 1. Brazil: Sugar Cane Growing Areas
Brazil

Brazil's federal government requires that all gasoline sold in the country contain 20-26% ethanol. However, most pumps in Brazil offer pure ethanol as a choice for consumers. This policy, among several other factors, is the reason why 40% of the country's gasoline consumption has already been replaced by ethanol. In addition to ethanol, Brazil's government is also expanding its focus to biodiesel. A federal mandate requires that by 2008, every liter of diesel fuel sold in Brazil must contain 2 percent biodiesel. By 2013, the percentage must increase to 5 percent. This is an important move because diesel fuel represents over half of the fuel consumption in Brazil. Clearly, government leadership has played a critical role in continuing the growth of the biofuels sector in Brazil.



1Carmen Gentile, Brazil Leads Latin America's Biofuel Future, ISN Security Watch, http://www.isn.ethz.ch, 09/15/06.
2 Ibid
3 Ibid
4 Christine Bolling and Nydia R. Suarez, USDA Economic Research Service, The Brazilian Sugar Industry: Recent Developments, Sugar and Sweetener Situation and Outlook, September 2001. Page 17. (PDF 53.8KB)
5 Ibid p.15.
6 Jakob Lagercrantz, Ethanol Production from Sugarcane in Brazil, March 2006. Page 9. (PDF 1.49MB)
7 Monte Reel, Brazil's Successful Ethanol Program Fuels U.S. Interest, Miami Herald Online, 8/21/06. http://www.miami.com/mld/miamiherald/news/
8 Ibid
9 Marla Dickerson, Farmers' Hopes Sprout as Brazil Bets on Biodiesel, L.A. Times Online, 09/19/06. http://www.latimes.com/business/
10 Ibid

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On the Hill

Bill # Sponsor Description Last Action
S. 3844 Sen Nelson, E. Benjamin [NE] Biofuels Investment Trust Fund Act: A bill to provide for the investment of all funds collected from the tariff on imports of ethanol in the research, development, and deployment of biofuels, especially cellulosic ethanol produced from biomass feedstocks. 9/5/2006: Read twice and referred to the Committee on Energy and Natural Resources.
H.R. 6064 Rep Kind, Ron [WI-3] Healthy Farms, Foods, and Fuels Act of 2006: To reauthorize Department of Agriculture conservation and energy programs and certain other programs of the Department, to modify the operation and administration of these programs, and for other purposes. 9/13/2006: Referred to House committee
S.3840 Sen Schumer, Charles E. [NY] Ethanol Stimulus Act of 2006: A bill to amend the Internal Revenue Code of 1986 to provide a tax incentive to produce ethanol in high-consumption, low-production States, and for other purposes. 9/5/2006: Read twice and referred to the Committee on Finance
S. 3890 Sen Harkin, Tom [IA] Rural Energy for America Act of 2006: To enhance and improve the energy security of the United States, expand economic development, increase agricultural income, and improve environmental quality by reauthorizing and improving the renewable energy systems and energy efficiency improvements program of the Department of Agriculture through fiscal year 2012, and for other purposes. 9/12/2006: Read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

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Grassroots


Honda co-develops process to make biomass ethanol
TOKYO, Sept 14 (Reuters) - Honda Motor Co. said on Thursday it has co-developed the world's first practical process for producing ethanol out of cellulosic biomass in what would be a big step towards using non-edible plant materials as fuel.
Full article Full article

Series to run Ethanol fuel in 2007
SPEEDWAY, Ind. (Sept. 14, 2006) -- Last Sunday at Chicagoland Speedway, the IndyCar® Series used methanol fuel for the last time. In 1965, methanol was introduced to Indy car-style racing. Now, in 2007, a new fuel grade will be been incorporated into the high-tech world of open-wheel competition. The IndyCar Series embraced alternative fuel sources with the introduction of ethanol into its fuel blend in 2006. A blend of ten percent ethanol fuel and ninety percent methanol powered the Honda engines in 2006.
Full article Full article

New biodiesel factory to produce intermediates for polyester resins
Maleic anhydride intermediates for producing polyester resins and water-soluble polymers and lubricants to be manufactured at a new modern biodiesel plant in Belgium. Starting in fall 2006, Neochim S.A. will produce biodiesel in a new plant at BASF's Feluy site in Belgium, using steam from the waste heat generated by the production of maleic anhydride (MA), a chemical intermediate.
Full article Full article

Biomass foes inform state of objections
RUSSELL, [Massachusetts] - Several area residents have told the state Department of Telecommunications and Energy they do not want to see Russell Biomass LLC exempted from local zoning regulations. And others of the nearly 200 people who attended a meeting at Russell Elementary School on Wednesday want the state to further investigate the company's proposal to build a 50-megawatt biomass-fired electric generating facility.
Full article Full article

Walk-through tour planned for biomass project
A pioneering biomass project could potentially save the Enterprise School District upwards of $1.7 million over 30 years while boosting the Wallowa County's sagging timber industry, according to a feasibility study created by the Biomass Energy Resource Center of Montpelier, Virginia.
Full article Full article


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Marketplace


The Grain Prices graph shows the cost fluctuation 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.

Cash Grain Prices Received by Farmers

Fuel prices come from OPIS Ethanol and Biodiesel Report. Ethanol (4-week average) and gasoline (RBOB Unl) are New York spot prices. Biodiesel (SME Biodiesel Gross Price Market Index, Chicago, IL) and diesel (New York Harbor No 2 Diesel Low Sulfur Spot Price FOB).

September 2006 Transportation Fuel Prices 2006 Transportation Fuel Prices

Grain Prices September 2005 September 2006 % Change
Corn 1.90 2.11
11%
Soybean 5.77 5.12 -11%
Fuel Supply September 2005 September 2006 % Change
Percent Refinery Utilization 84 93 11.30%
Production by Product - Finished Motor Gasoline (Million Barrels) 8,338 9,180 10.10%
Stocks - Finished Motor Gasoline (Million Barrels) 125 115 -8.85%
Imports - Total Motor Gasoline (Million Barrels) 1,167 1,092 -6.37%
Oxygenate Production July 2005 July 2006 % Change
Ethanol Production
(Thousand Barrels)
8,007 9,804 18.33%
MTBE Production
(Thousand Barrels)
4,226 3,103 -36.19%

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

The Fuel Supply Tables show the petroleum supply using key indicators such as percent refinery utilization, stocks, production and imports of finished motor gasoline.
U.S. Historic Imports of Motor Gasoline U.S. Historic Finished Motor Gasline Products U.S. Historic Refinery Utilization U.S. Historic Stocks of Finished Motor Gasoline

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R&D Awards

No R&D Awards were granted for this month.


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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: U.S. Department of Energy, Office of Science
Schedule: Applications may be submitted at any time.
URL: http://www.science.doe.gov/grants/FAPN05-01.html

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: GTL Bioenergy Research Centers
Description: The Genomics: GTL program (GTL) in the Office of Biological and Environmental Research (BER) of the Office of Science (SC), U.S. Department of Energy (DOE), is a systems biology research program with the mission goal of developing the science, technology, and knowledge base to harness microbial and plant systems for cost-effective renewable energy production, carbon sequestration, and environmental remediation. This Funding Opportunity Announcement (FOA) requests that the scientific community submit applications for the establishment of GTL Bioenergy Research Centers that develop novel biological solutions for the production of such fuels as cellulosic ethanol or hydrogen or for other groundbreaking bioenergy research with the potential to revolutionize biology-based energy production.
Government Agency: U.S. Department of Energy
Schedule: Applications due by February 1, 2007
URL: http://e-center.doe.gov/iips/faopor.nsf/

Title: National Research Initiative - Biobased Products and Bioenergy Production Research
Description: Program activities will expand science-based knowledge and technologies to support the efficient, economical and environmentally friendly conversion of biomass, more specifically agricultural residuals into value-added industrial products and biofuels. Applicants are strongly encouraged to read the entire Program Description section for current priorities and additional information relative to the programs of interest. This program accepts a wide range of applications, please carefully review the budget guidelines to ensure application acceptance.
Government Agency: USDA
Schedule: Solicitation Date (Opening) September 14, 2006; Letter of Intent Due Date November 8, 2006; Due Date (Closing) January 17, 2007
URL:http://apply.grants.gov/


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Events

September 30-October 1, 2006
Athens, Ohio

6th Annual Athens Area Sustainability Festival
Website: http://www.susfest.org/

October 9-13, 2006
Chiba, Japan

Renewable Energy 2006
Website: http://www2.convention.co.jp/re2006/eng-conf/index.html

October 10-11, 2006
London, United Kingdom

Sustainable Energy and Energy Efficiency Expo 2006
Website: http://www.energy-expo.info/

October 10-12, 2006
Beijing, China

Asia Biofuels Conference & Expo IV
Website: http://www.asiabiofuels.com/

October 11-13, 2006
Stuttgart, Germany

Pellets 2006
Website: http://www.pellets2006.de/

October 11-13, 2006
Minneapolis, Minnesota

Biodiesel Finance & Investment
Website: http://www.infocastinc.com/biodiesel.html

October 12, 2006
Austin, Texas

Workshop on Renewable Energy
Website: https://www.utexas.edu/cee/tcc/wre/wrewebreg.php

October 12-13, 2006
Berlin, Germany

2nd International BtL Congress
Website: http://www.fnr.de/btl-congress/

October 14, 2006
Kalamazoo, Michigan

National Alternative Fuel Vehicle Odyssey Day
Website: http://s1.kvcc.edu/newsinfo/

October 19-20, 2006
Tampico, Tamaulipas, Mexico

Border Energy Forum XIII
Website: http://www.glo.state.tx.us/energy/border/forum/13/index.html

October 19-20, 2006
Helsinki, Finland
European Conference on Biorefinery Research
Website: http://ec.europa.eu/research/energy/

October 19-22, 2006
Valladolid, Spain

ExpoBioenergia '06
Website: http://www.expobioenergia.com/index.php?op=xpo

October 22-26, 2006
Reims, France

Biomass-derived Pentoses: from Biotechnology to fine Chemistry
Website: http://www.inra.fr/pentoses2006/

October 23-25, 2006
Dearborn, Michigan

Tomorrow's Energy…Today! 2006
Website: http://www.sme.org/cgi-bin/

October 24, 2006
Beijing, China
The Great Wall Renewable Energy Forum and Exhibition 2006
Website: http://www.gwref.org/

October 30-31, 2006
Vienna, Austria

Biogas Markets
Website: http://www.greenpowerconferences.com

October 31-November 1, 2006
Chicago, Illinois

Cellulosic Ethanol: Commercial and Financial Viability and Prospects for Growth
Website: http://www.platts.com/Events/pc637/


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 biomass@bcs-hq.com.