Bioenergy Climate Protection and Oil Reduction/Issue29

What would you say about a biofuel that was indifferent to the feedstock used to make it? What would you say about a biofuels manufacturer that could operate its bio-refinery on forest products, forest waste, agriculture crops, agriculture waste, municipal solid waste (MSW), treated sewage sludge, animal waste, construction debris and old tires without having to stop and reset the refinery operation? What would you say about a biofuel that is 100% compatible with existing engines, existing fuels storage and the transportation fuels infrastructure, burns as clean as CNG and can be used at any level of blending all the way to 100%?

It doesn’t exist!

Well it does exist, according to Choren Industries, and it’s coming to the United States from Germany. The technology belongs to CHOREN Industries, a privately owned, 140 person technology company based in Freiberg , Germany , Choren is a world leader in the field of bio-gasification and to date the only company with a proprietary gasification system able to directly convert biomass into a tar-free synthetic gas. Their roots go back to the East German DBI, Deutscher Brennstoff Institute (German Combustion Institute), at which their founder, Bodo Wolf, was the technical director. In that capacity he designed and developed a number of gasification projects. After German unification, joined by a select group of technologists and former DBI colleagues, he founded CHOREN.

Encouraged and supported by DaimlerChrysler and later Volkswagen, they began to develop a process that was elegantly simple to describe yet intricately complex to realize – to replicate nature’s crude oil evolution. Most of you are aware that the energy contained in fossil fuels begins as energy from the sun. Sunshine allows plants to photo-synthesize and grow. As plants die and decay they may become deposited in the earth. Time, temperature and pressure do the rest until companies such as Shell drill for the oil that goes on to fuel our vehicles. The overall process takes about 400 million years. On the other hand, CHOREN’S Carbo-V® process takes only about 400 minutes, and if we include the time for the plants or biomass to grow then perhaps a year. Now you can see why CHOREN calls it SunFuel. Let me describe how the process works.

It begins of course with introduction of the biomass. A feature of the Carbo-V® process is that it uses any kind of biomass from farm residue to waste or recycled wood. In the first of three steps the biomass is heated to 400°C. This smoldering separates the volatile tar rich gases from the bio-coke, also known as char. In the second step these gases are combusted with oxygen at about 1,400°C. In the final step the ground char is blown in below the combustion chamber to bind in the carbon, technically known as chemical quenching. Through these three steps the process converts the long chain carbohydrate molecules in the biomass into syngas composed of short chain CO, CO2 and H2 molecules. The syngas can then be further cleaned before the Fischer-Tropsch catalysts binds together the carbon and hydrogen molecules to yield the hydrocarbons that make up SunFuel.

Because the Carbo-V® process uses the whole plant and not just the seeds, CHOREN is able to attain more than, three times the amount of fuel per unit area than, for example, rape-seed biodiesel. Ethanol comes closer, but because of its lower energy density a tank full of ethanol will yield less mileage.

SunDiesel, a major component of CHOREN’s SunFuel, is not only a cleaner environmentally friendly fuel; it is the prime ingredient in making a significant sustainable impression on our future transport fuel requirements.

In August of 2005, CHOREN entered into an agreement with Shell to bring its world scale Fischer-Tropsch technology to their BTL program, not just as an investor but as a technology partner in making the first commercial scale SunFuel facility possible. Choren has been producing SunFuel at its Alpha plant (lower right hand corner of the picture) since 2003 and has over 20,000 hours testing different feedstocks. Its Beta plant, pictured in the foreground (red stripe) has operated over 3,000 hours on various feed stocks. Both serve as the basis for five 1 million ton/yr Sigma plants under design, with the first plant scheduled to begin operation in 2009. Shell’s Fischer-Tropsch and hydro-cracking technology will be incorporated into the Beta plant by the end of 2006 and on stream in early 2007.

For both Choren and its partner Shell this is not just another fuel facility but rather the beginning of a new industry creating jobs, helping the environment and reducing our dependency on imported oil.

After joining forces with Shell in Europe to develop the Sigma BTL plants and introducing its advanced coal gasification program at several sites in China , CHOREN began evaluating the prospects of bringing its proven Carbo-V® advanced gasifier technology to the US . CHOREN is currently looking for potential BTL sites that can support a million tons (dry) per year of sustainable biomass, have good access to the transportation fuels market and infrastructure, have access to local utilities; plus have State laws that allow for offsite sales of electricity. In addition CHOREN will be looking for US partners, both financial and logistical to help develop and manage its US operation. Sigma plants like the ones under design in Europe will cost over $500 million as they are more like designer chemical plants capable of producing ultra clean environmentally friendly fuels that crude oil refineries can only dream of. A Sigma plant will produce approximately 70 million gallons per year of SunFuel and depending upon the local market supply from 3 to 10 MW of bio-renewable waste heat electricity to the local market.

CHOREN’s Managing Director of Biomass, Michael Deutmeyer will be discussing CHOREN’s BTL program at the April 10-12 Power-Gen Renewable Energy Conference in Las Vegas for those people who want more information. He can also be reached via e-mail at michael.deutmeyer@choren.com. Of course you can also learn more about CHOREN, its BTL program and its environmentally friendly SunFuel and SunDiesel at www.choren.com.

By the way CHOREN stands for C carbon - H hydrogen - O oxygen - REN renewable.

FEATURE ARTICLE

Firing Up Bioenergy
by Bob Rost, Department of Extension and Experiment Station Communications at Oregon State University

Skyrocketing gasoline and diesel prices at the pump are fueling interest in alternative energy resources throughout the United States . But more than cost is driving research in alternative energy at Oregon State University (OSU), administrative home to the Western Regional Center of the federal Sun Grant Initiative, enacted into law in 2003. OSU scientists are looking for cleaner fuels that are easier on the environment and new ways to convert agricultural crop materials into useful fuels.

Work by Mike Penner, a food chemist at OSU’s College of Agricultural Sciences , is a good example of innovative research that may have applications for alternative energy. Penner is studying leftover grass seed straw and fruit pulp to find compounds that may be used to make other products, such as ethanol. There is a tremendous amount of straw left in the Willamette Valley after grass seed harvest each year. In addition, fruit processors in Oregon are interested in finding uses for the pulp left over from product processing. As it stands now, many growers and vintners have to pay to have such waste material hauled away for disposal.

“We look at how plant cell walls resist decomposition and we work towards developing biologically based systems that can rapidly break down plant materials in environmentally friendly ways,” Penner explained, “with the goal of obtaining industrially useful compounds such as sugars.”

Penner is not focusing so much on final products, but rather on getting at the intermediate compounds in plant materials, such as the different sugars that may be available in grass seed straws. Other researchers are looking at processing those compounds into end products, such as fermenting sugars from straw to produce ethanol.

“We’re certainly interested in energy as one of the products, but there will likely be other high-value products, including biochemicals and specialty solvents,” Penner said. For any process, he added, it is very important that the energy and costs involved in obtaining the compounds don’t exceed the benefit of the results.

Penner, with plant physiologist Gary Banowetz of the USDA’s Agricultural Research Service, is developing technology to use grass seed straw as fuel to generate energy. Banowetz is working with energy laboratory scientists at the Western Research Institute in Wyoming to build a prototype gasification reactor that burns grass seed straw to produce synthetic gas, or syngas, which consists mostly of carbon monoxide and hydrogen.

“This reactor will be designed for on-farm generation of electricity and should cost approximately the same amount as a new combine—about $350,000,” said Banowetz.

That amounts to a lot of gas, about 140,000 gallons at $2.50 per gallon. The gasification technology will successfully convert grass seed straw to energy products. But, can this technology be made economical and user-friendly so farmers don’t need the help of engineers to operate it on the farm? Banowetz plans to address those questions next year when his team will build and test a prototype gasification reactor in the Willamette Valley .

In OSU’s Department of Biological and Ecological Engineering, Roger Ely takes a different angle on bio-based energy generation. Ely, an environmental engineer, and Frank Chaplen, a bioprocess engineer, are harnessing cyanobacteria to use solar energy to produce hydrogen.

Hydrogen is touted as an alternative fuel for automobiles and as a key component in fuel cells that generate electricity. Using hydrogen as a fuel is clean: water is its only by-product. But current methods of producing hydrogen require energy, including fossil fuels. This tends to cancel out the benefits of hydrogen fuel applications. So scientists are looking to microbes as a source of hydrogen.

“Cyanobacteria, also known as blue-green algae, use solar energy to split water into oxygen and hydrogen, but they do it under limited conditions and for very brief periods of time,” said Ely. “Our goal is to extend the time and conditions under which these bacteria produce hydrogen.” The major challenge that Ely must overcome is that cyanobacteria only produce hydrogen in the absence of oxygen. Success is dependent upon finding oxygen-tolerant strains of cyanobacteria. Recently Ely and his colleagues received a $900,000 grant to develop methods to evaluate different conditions and strains of cyanobacteria for their ability to make hydrogen.

Just down the hall from Ely in the Department of Biological and Ecological Engineering, another researcher is using microorganisms in yet another way. Hong Liu is working on development of a microbial fuel cell that can use sewage or wastewater from animal and crop production to generate electricity, simultaneously cleaning the water. This technology uses bacteria present in wastewater to break down organic material into basic components, including carbon dioxide, hydrogen ions, and electrons. The electrons flow through a circuit to produce electrical energy and combine with hydrogen ions and oxygen to form clean water.

Liu is also working on a variation of the microbial fuel cell that uses the BEAMR (bio-electrochemically assisted microbial reactor) process to generate hydrogen. In this approach, oxygen is removed from the cell and small amounts of electricity are introduced into the system. Instead of combining with oxygen and electrons to form water, hydrogen ions released from wastewater are captured as hydrogen gas.

“Basically, these technologies can harvest electricity or hydrogen from any biodegradable material, even wastewater,” said Liu. “This is really promising, but there is a lot of work we need to do.”

Finding bio-energy alternatives that offer potential — economic and otherwise — will get a boost from the $8 million in funding to the Western Regional Center under the Sun Grant Initiative. “We’re funded at over $2 million a year for four years,” said Thayne Dutson, dean of the OSU College of Agricultural Sciences. “Our role in the initiative provides an opportunity to broaden bio-energy research at OSU, and it fits perfectly with one of the college’s strategic goals.”

Jan Auyong, assistant director of Oregon ’s Agricultural Experiment Station, directs OSU’s participation in the Sun Grant Initiative. And, as the Western Center of Excellence, OSU will oversee the Sun Grant Initiative across a region that stretches from Alaska south through California and from Utah west to the Pacific islands.

“This initiative not only provides for research but also for outreach to extend new technology to people and communities that can use it,” Auyong said. “The initiative will foster increased collaboration between institutions, federal research efforts, state agencies, and communities.”

“The world’s petroleum energy system is fragile,” Dutson added. “The sooner we develop some ways to reduce our dependence on petroleum for fuel, the better off we will be. The research investment made possible through the Sun Grant Initiative funding will allow us to enhance many of the things we’ve already started at OSU and explore the potential of new technologies as well.”

LEGISLATIVE UPDATES

H.R. 4673 - Fuel Security and Consumer Choice Act

On January 31, Representatives Markey (D-MA), Inslee (D-WA) and Kaptur (D-OH) introduced H.R. 4673 - Fuel Security and Consumer Choice Act. Later, Rep. Leach (R-IA) was added as a cosponsor. This bill was referred to the Committee on Energy and Commerce and would require an increasing percentage of new automobiles to be dual-fueled and would revise the method for calculating corporate average fuel economy. This is a companion bill to S. 1994 introduced in the Senate by Senator’s Harkin (D-IA), Lugar (R-IN) and Obama (D-IL).

The text of the bill may be found here: http://thomas.loc.gov/

S. 2263 – Freedom From Foreign Oil Act of 2006

On February 9, Sen. Dayton (D-MN) introduced S. 2263, Freedom from Foreign Oil Act of 2006. This bill would require that automobiles and light trucks manufactured after model year 2007 be able to operate on a fuel mixture that is at least 85 percent ethanol (E85) and requests that the Secretary of Transportation carry out activities to promote the use of E85.

To see the full text of the bill visit: http://thomas.loc.gov/

H.R. 4774 – 10 Percent Renewable Fuel Requirement

On February 16, Rep. Upton (R-MI) introduced H.R. 4774, which would require that all gasoline sold to US consumers for motor vehicles contain at least 10 percent renewable fuel. This bill was cosponsored by Rep. Doyle (D-PA), Holden (D-PA), Gillmor (R-OH), Schwarz (R-MI), Leach (R-A), Bass (R-NH), Ehlers (R-MI), Coble (R-NC), Gilchrest (R-MD) and Kildee (D-MI).

To see the full text of the bill visit: http://thomas.loc.gov/

H.R. 4897 - Renewable Energy Systems and Energy Efficiency Improvements Program Act of 2006

On March 7, Representatives Mark Udall (D-CO) and Tom Latham (R-IA) introduced HR 4897 – Renewable Energy Systems and Energy Efficiency Improvements Program Act of 2006, which was referred to the Agriculture Committee. This bill reauthorizes Sec. 9006 of the 2002 farm bill through fiscal year 2011 and increases its annual authorization to $46 million for FY07-11. (In the 2002 farm bill Sec. 9006 was authorized at $23 million/year for FY03-07.)

For more information see: http://thomas.loc.gov/

S. 2401 – Alternative Energy Extender Act

On March 13, Senators Grassley (R-IA) and Baucus (D-MT) introduced S. 2401 – Alternative Energy Extender Act. This bill extends certain tax incentives found in the Energy Policy Act of 2005, including the renewable energy production tax credits (extended to 2011), solar investment tax credits (extended to 2011) and the Clean Renewable Energy Bonds (extended to 2010). In addition many conservation, energy efficiency, alternative fuels and vehicles and domestic fossil fuel security credits were also extended.

To see the full text of the bill visit: http://thomas.loc.gov/

Washington State Adopts Renewable Fuel Standards

With the support of Governor Christine Gregoire and solid bipartisan backing of the legislature Washington state passed S. 6508, a renewable fuel standard which mandates in-state use of biofuels. The law initially requires that 2 percent of all diesel must be biodiesel and that ethanol must constitute 2 percent of all gasoline sold. The bill gradually expands the market for biofuels in Washington to 5 percent for biodiesel and 10 percent for ethanol, once the state’s capacity to grow the feedstock for the biofuels has increased. State vehicles will be required to use greater amounts of biodiesel. The bill will take effect in 2008 once rules for implementation have been set by the Department of Agriculture, in cooperation with an advisory council.

To see the full text of the bill visit: http://www1.leg.wa.gov/legislature
Source: http://www.renewableenergyaccess.com/rea/news/story;jsessionid=1944A556240D3AB0BAB4756742AF19C1?id=44298
http://www.independentfuels.org/blog/washington-passes-biofuels-standard

States Commit to Bioenergy Initiatives

As State of the State addresses were given across the country in January, governors from both parties have made support of alternative energy a top goal. In Wisconsin, Gov. Jim Doyle called for “quick action on the recommendations of his Task Force on Renewable Energy, including getting 10 percent of state energy from renewable sources by 2015” along with the legislature’s adoption of a proposed ethanol bill. Gov. George Pataki of New York proposed elimination of state taxes on biofuels, requiring the State Thruway to have biofuel pumps at all 27 of its travel plazas, and making the state a tax-free zone for renewable energy companies, requiring about $125 million in spending.

National experts believe that the integration of biofuels should vary to meet regional needs and assist local economies. This would, however, require a change in infrastructure and federal support seems to be relatively stagnant in this area, both in funding and priorities. A change could come with the 2007 farm bill that could show greater interest in renewables from working lands and a possible modification in subsidies that might push more funds toward renewable energy crops.

Source: http://www.madison.com/tct/opinion/column/index.php?ntid=69917&ntpid=1

Integrated Biorefinery Solicitation

On February 22, the Department of Energy released a Funding Opportunity Announcement (FOA) for “Commercial Demonstration of an Integrated Biorefinery System for Production of Liquid Transportation Biofuels, Biobased Chemicals, Substitutes for Petroleum-based Feedstocks and Products, and Biomass-based Heat/Power.” Letters of intent are due on March 30, 2006 and applications are due on August 10, 2006 .

Applications should be for projects to design, construct, build and operate an integrated biorefinery in which lignocellulosic feedstocks are used to produce a combination of the following products: liquid transportation fuels; biobased chemicals; substitutes for petroleum-based feedstocks and products; and energy in the form of electricity or useful heat. Applications which include a wide variety of lignocellulosic feedstocks are encouraged, excluding biomass grown specifically for food or feed.

This FOA, authorized in Sec. 932 of Energy Policy Act of 2005, is for approximately $53 million and is expected to be available in FY07. Additional funding is expected to be available in FY08 and FY09 totaling approximately $160 million over three years. This FOA does not include the University Biodiesel Program also found in Sec. 932.

View the full FOA here: http://e-center.doe.gov/iips/faopor.nsf/0/6ef8a6ad174a69b08525711d007e834c?OpenDocument

Renewable Energy Systems and Energy Efficiency Improvements Program (Sec. 9006) Solicitation

On February 13, 2006, the USDA’s Office of Rural Business-Cooperative Service released a solicitation of proposals for the Renewable Energy Systems and Energy Efficiency Improvements Program (Section 9006) authorized under Title IX of the 2002 Farm Bill.

This year’s solicitation makes $11.385 million available in competitive grant funds and approximately $176.5 million in guaranteed loan authority for the purchase of renewable energy systems and energy efficiency improvements for agriculture producers and rural small businesses. After August 1, 2006 any guaranteed loan funds that are not obligated will be pooled and revert to the National Office reserve for grants under this notice. The USDA is in the process of evaluating the potential for a direct loan program; therefore for FY06 the program is limited to grants and loan guarantees.

Grant applications must be completed and submitted to the appropriate USDA State Rural Development Office postmarked no later than May 12, 2006 . Loan guarantees will be awarded on a continuous basis. Loan Guarantee applications are due to the National Office for funding consideration by July 3, 2006 .

For Information see: http://www.eesi.org/publications/Press%20Releases/2006/2.15.06_9006_solicitation.htm
http://www.rurdev.usda.gov/rbs/farmbill/2005NOFA/nofa05navigate.html

Value-Added Grant Program Solicitation Correction from USDA

On February 24, the USDA published in the Federal Register three corrections to the Value-Added Producer Grant Solicitation. All applications must still be submitted by March 31, 2006 .

For more information on the correction to the Value-Added Solicitation see: http://www.rurdev.usda.gov/rbs/coops/vadg.htm

Proposed FY07 Budgets for Biomass and Ag-Related Renewable Energy

The administration’s proposed FY07 budget was released on February 6. Once again, the President’s budget slashed key energy-related programs authorized in the 2002 farm bill. The budget request for the Renewable Energy and Energy Efficiency Improvements Program (Sec. 9006) is $10.2 million; down from its FY06 funding of $23 million. The budget request for the Value-Added Producer Grant program also received a cut from its authorization of $40 million; the administrations request kept its funding level basically flat at $20.3 million compared to its FY06 funding at $20.5 million. The Biomass R&D Act of 2002, which received a substantial increase in its authorization in the Energy Policy Act of 2005 ($200 million for FY07 up from $68 million) was only $12 million. As many of you are aware, EESI has organized efforts with others to restore funding for these programs. In fact 60 organizations signed a letter in support of full funding for Sec. 9006. Thanks to all who signed-on! The letter is posted on EESI’s website. In addition Congressional “Dear Colleague” letters, sponsored by Reps. Gutknecht (R-MN) and Case (D-HI) and Sen. Crapo (R-ID) and Harkin (D-IA) are being sent to House and Senate Appropriations Committees.

For additional information see: http://www.eesi.org/publications/Press%20Releases/2006/2.09.06_ag_admin_budgetFY07.htm

Final Rule Released for First Six Designated Biobased Products for Federal Procurement

On March 9, 2005 , the Secretary of Agriculture Mike Johanns announced the release of the final rule designating the first six biobased products which must receive special consideration by all federal agencies under the Federal Biobased Products Preferred Procurement Program (Sec. 9002 in the 2002 Farm Bill). The items are: mobile equipment hydraulic fluids; biobased roof coatings; water tank coatings; diesel fuel additives; penetrating lubricants; and bedding, bed linens and towels. Federal agencies will not have to give water tank coatings and bedding, bed linens, and towels preferred procurement status until there are two or more suppliers. USDA will issue a Federal Register notice when at least two suppliers are making these items available. USDA is collecting data needed to designate 150 more items.

For more information: http://www.usda.gov/wps/portal/usdahome?contentidonly=true&contentid=2006/03/0072.xml

To see the final rule click here: http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-2323.pdf

EPA Proposes All Ethanol Plants Should Have Same Emission Standards

The Environmental Protection Agency (EPA) has proposed that corn milling facilities which produce ethanol for both human consumption and for fuel should have the same air permitting requirements. Currently, corn milling plants which produce ethanol made for human consumption do not trigger the Prevention of Significant Deterioration (PSD) permitting program unless the facility emits more than 250 tons per year of air pollutants, but for fuel producing facilities the trigger for PSD is much lower, set at 100 tons per year. The EPA change would align the fuel ethanol facilities trigger for PSD with the ethanol facilities for human consumption at 250 tons per year of air pollutants. New Source Review and Title V permitting programs will not be affected.

Already, the EPA is hearing different points of view about this issue. Senator John Thune (R-SD) is a proponent of this change and has been discussing it with the EPA since last fall. He says that the change in requirements will make it easier for more ethanol to be produced; something which he says is important in navigating gasoline price spikes. Some environmentalists see this as a trade off for air pollution, Frank O’Donnell, director of Clean Air Watch, said that this rule could “create a new problem by trying to solve an old problem.”

The EPA will gather comments on the Proposed Rule for 60 days once it has been printed in the Federal Register.

Source: http://www.epa.gov/newsroom/newsreleases.htm
http://edition.cnn.com/2006/BUSINESS/03/01/us.ethanol.ap/

Renewable Fuel Standard Interim Rule Released by EPA

The interim rule for the national Renewable Fuel Standard (RFS) enacted by the Energy Policy Act of 2005 was announced in the Federal Register on December 30, 2005 . This rule imposes the requirement of 4 billion gallons of renewable fuel use in 2006 in the aggregate, rather than on a refiner-by-refiner basis. Once the credit trading program details have been established, a refiner-by-refiner requirement will be instituted. Although many industry specialists and stakeholders agree that the availability and use of renewable fuels will surpass the 4 billion gallon requirement, if the nation falls short of this requirement the difference would be added to the 4.7 billion gallon requirement for 2007. The EPA will release proposed rules for the comprehensive program at a later time.

To view interim rule: http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-24611.pdf
http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-24610.pdf

Source: http://www.ethanolrfa.org/media/press/rfa/2005/view.php?id=501

RECENT STUDIES

University of Missouri Releases Report on the Economic Benefits of Ethanol

Employment and Economic Benefits of Ethanol Production in Missouri, a report released by the University of Missouri-Columbia and commissioned by the Missouri Corn Growers Association, shows how the production of ethanol demonstrates significant benefits to Missouri’s economy. The report examines two scenarios, the first is 156 million gallons a year (MGY) of ethanol production from four ethanol facilities, one of which is not built yet; and the second is 350 MGY of ethanol production from an additional two plants and expansion of some existing plants. The report describes the economic impacts in terms of the construction of the facilities and annual operating impacts. Direct, indirect and induced economic effects of the production of ethanol are also quantified.

The report finds that for the 156 MGY scenario 2,784 jobs statewide (direct, indirect and induced) would be created; this would also increase the annual labor income to $92 million and raise the value of corn in Missouri to $41 million (based on the five-year average price of corn). In the 350 MGY scenario 5,613 jobs would be created, the annual labor income would increase to $182 million and the value of corn would rise to $73 million.

Full Report may be found at: http://agebb.missouri.edu/commag/

Source: http://www.kansascity.com/mld/kansascity/news/local/13814133.htm

Jan 27 Issue of Science Features Two Articles on Ethanol and Bioenergy

An article by Farrell et al. provided analysis of six major studies regarding ethanol energy balance and GHG emissions studies. After developing a meaningful method to synthesize the data and assumptions of the different studies it was determined two studies which claimed negative energy balances for ethanol used incorrect assumptions since they did not include the coproducts in analysis and they used old and unrepresentative data. The major findings were that the production of corn ethanol yields a positive net energy of 4 MJ/l to 9MJ/l and that corn ethanol reduces GHG emissions by about 13 percent and that cellulosic ethanol offers much larger reductions. The Farrell et al. article provides many policy and research recommendations on metrics for evaluation, new technologies and practices that will lead to much greater use of biofuels.

The Ragauskas et al. article examines the potential of biopower, biobased products and biofuels from the biorefinery process. The report systematically discusses the use of modern genomic tools, chemical and fermentation conversion technologies and feedstock composition. The article discusses how biorefineries can be optimized to replace just about anything that can be made from petroleum.

Sources: Farrell, A., et al. (2006, January 27). Ethanol Can Contribute to Energy and Environmental Goals. Science.
Ragauskas, A.J., et al. (2006, January 27). The Path Forward for Biofuels and Biomaterials. Science.

Department of Defense Tests Biodiesel and Ethanol

The Leonard Wood Directorate of Logistics-Transportation Division in Fort Leonard Wood, Missouri of the Department of Defense began using ethanol and biodiesel in 2003. Since receiving permission to test ethanol (E85) and biodiesel (B20) in 312 vehicles in 2003, Fort Leonard Wood has continued testing the use, of alternative fuels in the light High-Mobility Multipurpose Wheeled Vehicle (HMMWV). Over the two and one half years of use, even drastically low temperatures and alternating between diesel and B20 did not affect the performance of the HMMWVs, which sometimes even out-performed those vehicles using regular diesel fuel.

Since beginning to use B20 and E85 in March of 2003, over 430,000 gallons of B20 and 140,000 gallons of E85 have been used. Currently 734, or 66 percent, of the fleet vehicles fueled at the Transportation Motor Pool operate on B20 or E85. Fort Leonard Wood has gone on to use biodiesel in other vehicles ranging from light HMMVW to 5-ton trucks.

Source: http://www.e85fuel.com/news/010306fyi.htm

NEWS BRIEFS

House Agriculture Committee Starts Field Hearings

On February 6, the House of Representatives held its first ‘Review of Federal Farm Policy’ in Auburn , AL in preparation for the reauthorization of the Farm Bill due in 2007. This was the first of five field hearings held across the country with many more still to come. Witnesses at the hearings ranged from cattle producers to nursery growers and state department of agriculture officials. The purpose of the hearings is to receive input on critical reauthorization issues including commodity programs, the farm economy, renewable energy, rural development, conservation and trade.

If you would like to receive notices for hearings visit: http://agriculture.house.gov/Eupdates/updates.html

For witness testimonies visit: http://agriculture.house.gov/hearings/statements.html

Sen. Richard Lugar’s Speech: “ US Energy Security – A New Realism”

On March 13, 2006, Sen. Richard Lugar (R-IN) spoke at the Brookings Institution on “US Energy Security – A New Realism.” As Chairman of the Senate Foreign Relations Committee the Senator is able to draw the clear connection between energy security and foreign policy through anecdotal stories about oil men in Libya to staggering statistics like, “Last November, we [ US ] spent more than $24 billion on oil imports, accounting for more than a third of our trade deficit.” Saying that, “…energy is the albatross of US national security” Lugar defines six threats to national security created by energy dependence including supply vulnerability; diminishing supplies; energy as an overt weapon; avoidance of democratic reforms; climate change and; price impact on developing countries. Lugar goes on to construct a plan directed toward energy security, which includes a number of new pieces of legislation. He ends on a positive note explaining that as we develop new renewable energy technologies we will create more jobs in the US and reinvigorate our economy.

To read the whole speech visit: http://lugar.senate.gov/pressapp/record.cfm?id=252509

Rep. DeLauro (D-CT) on Renewable Energy

Rep. Rosa DeLauro (D-CT) pledges to seek funding for renewable energy at two back-to-back events on February 22 and 23. In a speech given at Yale’s Institute for Social and Policy Studies, plant biologists, agriculture economists, bioethicists, and members of the student body heard first-hand from Rep. DeLauro, Ranking Democrat on the House Agriculture Appropriations Subcommittee about her dedication to renewable energy from our agriculture communities and her support for funding key renewable energy programs. Rep. DeLauro met with farmers at Bomba Brothers Farm the next day where she spoke about investments in renewable energy sources which would help lower energy costs crippling our rural communities.

For more information on either of these events visit: http://www.house.gov/delauro/

Bipartisan Meeting with President Bush on Energy

In mid-February President Bush followed up his mention of cellulosic ethanol in the State of the Union address with a meeting including around a dozen senators from both sides of the aisle seeking to generate a bipartisan agenda. Energy Secretary Bodman and Senators Cantwell (D-WA), Lugar (IN), Domenici (R-NM), Bingaman (D-NM), Bayh (D-IN), Talent (R-MO), and Salazar (D-CO) were all present at the meeting.

Source: Goode, D. (2006, February 15). Bush, Senators Meet to Discuss Bipartisan Energy Initiatives. National Journal: CongressDailyAM, 3.

Ford Introduces E85 Hybrid

Ford Motor Company revealed the first E85 hybrid vehicle at the Washington Auto Show in January. Broad use of vehicles like the flex-fuel hybrid Escape would greatly reduce the necessity of imported oil into the US while addressing global climate change. Although still under research, the Escape is the first of its kind to tackle both the capacity of the hybrid while having a flex-fuel system that can handle up to 85 percent ethanol.

Unfortunately, there is still a limited availability of E85 pumps, with about 600 nationally and some states without any at all, leaving many E85 drivers to fill their tanks with gasoline. If running on E85 alone, the Ford Escape Hybrid 85 would be able to produce 25 percent less carbon dioxide. In order to allow for this benefit, Ford has teamed up with VeraSun Energy Corporation to promote an increase in the number of E85 pumps at filling stations.

Sources: http://www.e85fuel.com/news/012506_ford_hybrid_release.htm
http://www.renewableenergyaccess.com/rea/news/story?id=42388
http://www.eere.energy.gov/news/news_detail.cfm?news_id=9695

Kick-off for GM E85 Campaign

General Motors kicked-off its ‘Live Green Go Yellow’ campaign for ethanol and flex-fuel vehicles at the Chicago Auto Show in February. Commercials during the Super Bowl XL and yellow fuel caps are among many of the promotional gimmicks used by GM. GM now has nine 2006 models that are compatible with E85 and plans to add 400,000 of these vehicles to the fleet in 2006.

GM has been working with NASCAR and the city of Chicago on E85 promotion and with VeraSun Energy to collaborate in opening more E85 stations in the Chicago area. Customers of GM who subscribe to their OnStar assistance service can now use it to locate the nearest E85 pump to maximize the ease with which to find the fuel.

Source: http://www.e85fuel.com/news/010806_livegreengoyellow_release.htm

What is Causing the High Cost of E85?

There has been a surge in the number of E85 stations across the United States , doubling over the past year; however, drivers of E85 vehicles are experiencing a reduction in mileage for their dollars compared to using unleaded gasoline in the same vehicle. Because E85 contains less energy, a gallon of E85 must cost less than a gallon of regular gasoline to make it economical for the consumer.

One of the main reasons why E85 is expensive now is because demand for ethanol is at an all time high. The phase out of MTBE in many states impacted the demand of ethanol as hurricanes in the Gulf Coast caused shortages in refinery supplies. By adding ethanol to fuel, refineries were able to stretch their fuel supplies, but this created higher prices for ethanol. The ethanol industry believes that the high cost of ethanol is short term. The stabilization of prices will come with more ethanol plants and more production capacity in order to meet demand.

Source: http://www.e85fuel.com/news/022206_e85pricing_release.htm

Gains in the Development of Cellulosic Ethanol

Ethanol is currently produced by fermentation of the sugars in corn, but with President Bush’s endorsement of alternative-fuel technologies, more initiatives into cellulosic ethanol production are likely. Studies have focused on the use of microbes, either by using them directly in the process of making ethanol or by dissecting their genetic make-up to convert plant-based sugars into 199-proof alcohol to be used as an energy source. The introduction of cellulose, the non-food portion of agriculture residue such as cereal straws and corn stover, would multiply ethanol production considerably.

Iogen an innovative Canadian company has been experimenting with genetically-modified fungus microbes to break down straw into sugars which then are fermented into alcohol. The company is growing from a small, $40 million factory built in 2004 to potentially a $350 million, commercial-scale plant in Canada or Idaho . As part of its expansion, Iogen recently signed a letter of intent with Volkswagon and Shell to bring cellulosic ethanol to Germany . This biofuels technology could reduce CO2 emissions by as much as 90 percent.

Sources: http://www.renewableenergyaccess.com/rea/news/story?id=41516
http://www.washingtonpost.com/wp-dyn/content/article/2006/02/12/AR2006021200411_pf.html

Firewood Replaces Petroleum in Alaska

With the steep increase in oil prices this winter, Alaskans sought out damaged trees from the interior forest as a source of heat. The Alaska Department of Natural Resources issues $5 permits to households willing to find, cut, and transport the wood. During the 1980’s, 2,000 permits were issued in one winter with about 75 percent of Fairbanks homes using wood-burning stoves. When prices dropped for petroleum-based heating fuel, so did the number of people requesting permits, as low as 180 permits in 2004; but the number is now increasing, with 308 permits issued last year and a predicted increase to more than 500 to be issued for 2006.

With a permit, an Alaskan household can get up to 10 cords of wood, an average home using 7 or more cords per winter. Currently, a cord of wood costs about $200, whereas to generate the same amount of heat/energy it would cost $410 with heating oil. The Division of Forestry provides only the map to where fallen and dead trees (killed by fire but not fully consumed by it) are located, residents are responsible for finding and hauling the wood.

Source: http://www.guardian.co.uk/uslatest/story/0,,-5595811,00.html

Combating Animal Waste

Farmers in Wisconsin have turned to anaerobic digestion to gain profits from manure produced by large herds of cattle. One farmer, Gary Boyke, uses manure from his 1,300 head of dairy cows to provide power to 330 homes in the area. Boyke uses an anaerobic digester to produce methane from the manure, selling the power generated to a Madison-based utility. Farmers who have invested in anaerobic digesters in Wisconsin have profited from avoiding fines from regulations set by the Clean Air Act. Their digesters are able to reduce odors from the manure by 95 percent, an enormous change with a farm of 3,100 head of cattle. Besides digesters, drying manure to produce steam to power generators or pressurizing the manure to produce oil and a charcoal-like material are other options that can be explored by farm operations to dispose of manure according to Clean Air regulations.

In contrast, at the end of January, the Environmental Protection Agency began signing agreements with animal feeding operations that would allow environmental violations penalties to be ignored in exchange for the ability to monitor pollutants from the farms. The agreement exempts farms from fines of up to $27,500 a day from either the past four or over the next four years, if companies agree to abide by clean air, hazardous waste, and emergency reporting laws after data collection by the EPA. Each operation would pay $2,500 to EPA which would allow for two years of air monitoring at 28-30 farms across the United States . The EPA’s agriculture advisor believes the agreement is the most efficient way to obtain data for Federal emission laws; however, by signing 2,681 agreements so far with a goal of 6,700 farms, some environmentalists believe that those living around the farms will suffer.

Sources: http://www.enn.com/today.html?id=9779
http://www.boston.com/business/articles/2006/01/27/dairy_farmers_turning_manure_into_money?mode=PF

“25x’25” Summit

On March 7-9, 2006 the 2nd National Ag/Forestry Renewable Energy “25x’25” Summit was held in Washington , DC . The summit brought together agricultural and renewable energy leaders from a variety of industries and political leaders from both sides of the aisle. The goal of “25x’25” is for 25 percent of the nation’s energy supply to be delivered from renewable resources by 2025. At the summit data from a new national public opinion survey was released which demonstrates overwhelming public support for government policies and investments that will spur development of renewable energy sources like solar, wind and ethanol. Governors Brian Schweitzer (D-MT), Mitch Daniels (R-IN) and Ed Rendell (D-PA) all endorsed the “25x’25” vision and encouraged other governors to follow suit.

For more information on the summit see: http://www.agenergy.info/

Harvesting Clean Energy VI Annual Conference

The VI Annual Northwest Harvesting Clean Energy Conference held February 27-28 in Spokane , Washington brought together state and national leaders to examine the benefits and new developments of farm-based sources of renewable energy. The nearly 600 attendees participated in discussions ranging from federal and state policies to technological and social barriers opportunities and new information. James Woolsey, former director of the Central Intelligence Agency, Tom Dorr, US Department of Agriculture’s Undersecretary for Rural Development and Dr. Jim Fischer, US Department of Energy’s Senior Technical Advisor for Office of Energy Efficiency and Renewable Energy, were some of the keynote speakers along with remarks from both US Sen. Maria Cantwell (D-WA) and Rep. Cathy McMorris (R-WA), both strong supporters of renewable energy.

For more information visit: http://www.harvestcleanenergy.org/conference/index.html

Agricultural Outlook Forum Emphasizes Alternative Energy

The 2006 Agricultural Outlook Forum sponsored by the USDA in February was dominated by global trade and competition but the topic of energy was a close second. Energy, in terms of cost, has been on the minds of farmers with the price of oil and natural gas skyrocketing. Presenters at the conference, keenly aware of the high price of energy, had many profitable renewable energy suggestions, including the use of wind, solar, biofuels, and anaerobic digesters utilizing waste from potatoes in Idaho, beer in Washington, cheese whey in California, and sugar cane in Hawaii.

Secretary of Agriculture Mike Johanns proposed that the 2007 farm bill continue as scheduled, despite no conclusion of the WTO’s Doha Development Round. Johanns stated, “trade is important to agriculture, but the farm bill should be separate from Doha .” Thomas Dorr spoke on rural development, emphasizing that there must be “easy opportunities for people to invest in so that energy is able to change.” Among the recommendations given at the Forum was the recommendation that there needs to be more opportunities for farmers to own equity in the value-added process. The creation of corporations, coops and other legal entities could help provide this opportunity to farmers.

Source: http://www.usda.gov/oce/forum/index.htm

NOTABLE QUOTABLES

“Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world.”
– President Bush, 2006 State of the Union Address

“. . . energy is the albatross of U.S. national security.”
– Sen. Lugar (R-IN), “US Energy Security – A New Realism”, a speech given at the Brookings Institution's 90th
Anniversary Leadership Forum

Calendar

Event	Date	Location	Further Information
Biofuels Markets Latin America	March 27-28	Rio de Janeiro	http://www.greenpowerconferences.com
Opis Ethanol & Biodiesel Management	March 29-31	Chicago IL