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1 The Biomass Program Office of the Biomass Program Energy Efficiency and Renewable Energy March 2, 2006.

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Presentation on theme: "1 The Biomass Program Office of the Biomass Program Energy Efficiency and Renewable Energy March 2, 2006."— Presentation transcript:

1 1 The Biomass Program Office of the Biomass Program Energy Efficiency and Renewable Energy March 2, 2006

2 2 Where are we heading? Why this direction? How will we get there? What has been accomplished? Funding

3 3 Rate of Use 0%10%15%20%5%25% Oil Reserves U.S. Dependence on Foreign Oil Updated July 2005. Source: International Energy Annual 2003 (EIA), Tables 1.2 and 8.1-O&GJ. Canada’s reserves include tar sands. The United States uses more oil than the next five highest-consuming nations combined. 3% 7% 25% 7% 3%

4 The Market Exist 25 States have some MTBE Ban 4.5+ Million FFV on the road 7.5 BGY by 2012 Epact 2005 139.6 BGY Gasoline and 37.1 BGY On-Highway Diesel Infrastructure FFV’s on the road today and available at dealers Presently used by blenders and sold in stations Environment Benefits Reformulated gasoline vs. ethanol (E85) 18% to 72% less GHG 32% to 81% less carbon dioxide (CO2) Up to 58% less methane (CH4) National Benefit The Biofuels Initiative, together with the fuels use reduction and future hydrogen fuels production projected from the Vehicles and Hydrogen programs within EERE, provides a strong energy security portfolio Rural Economy In 2004, the ethanol industry: Supported the creation of more than 147,000 jobs Boosted U.S. household income by $4.4 billion Added $1.3 billion and $1.2 billion of tax revenue for Federal and State/Local governments, respectively Strong Support Bipartisan Support Legislation set up high level Interagency collaboration Incentives at State and Federal level Strong Industry Support and Interest What can be done and When? 3.4 Billion from corn now will Increase to 12.8-17.8 Billion by 2015 30% of our current gasoline use met with biofuels by 2030

5 5 Biofuels: Best Choice Today Biomass is the only renewable fuel available that can displace liquid transportation fuels. Ethanol and Biodiesel production and markets exist now. The use of biomass to produce hydrogen or hydrogen carriers provides long-term value to a diverse future energy supply. Collectively, the production of biofuels, improvements in vehicle technologies, and the future hydrogen economy form a strong energy security portfolio.

6 6 Ethanol Production From Starch

7 7 Existing Fuels Market Current Transportation Fuels Demand 2004 gasoline consumption: 139.6 B gal per year 2004 On-Highway Diesel consumption: 37.1 B gal per year Key Drivers Behind Future Biofuel Demand 2005 EPAct mandates the use of 7.5 B gal of renewable fuels per year in U.S. gasoline by 2012 State MTBE Bans –17 currently in effect, 1 begins in 2007, 2 pending Federal action this accounts for approximately 45 percent of the Nation’s MTBE Consumption –2002 MTBE demand was 3.2 B gal per year –Flexible fuel vehicles (FFVs) Approximately 4.5 million FFVs are on the road that are capable of consuming more than 3.5 B gal per year of ethanol 1 1 Assumes use of E85 as the primary fuel.

8 8 National and Economic Security Benefits Biofuels could meet up to 30 percent of our present fuel needs Biofuels produced from domestic resources will reduce our dependence on foreign sources of energy Energy supply diversity makes us less vulnerable to geopolitical uncertainties, price volatilities, and supply disruptions

9 9 Environmental Benefits Compared to reformulated gasoline, ethanol (E85) generates approximately 1,2,3 : –15% to 68% less GHG 30% to 77% less carbon dioxide (CO 2 ) Up to 58% less methane (CH 4 ) Compared to fossil diesel, biodiesel (B100) generates 4 : –67% less unburned hydrocarbons (HC) –48% less carbon monoxide (CO) –47% less particulate matter (PM) –~10% more nitrogen oxides (NO x ) 1 Low end of the range represents corn ethanol; high end represents cellulosic ethanol. 2 These are well-to-wheel numbers. 3 Cellulosic ethanol emissions include credits from the sale of electricity generated from biomass residues. 4 These are tank-to-wheel numbers. Reduction in greenhouse gas (GHG) and criteria pollutant emissions

10 10 Rural Development In 2004, the ethanol industry 1 : –Supported creation of more than 147,000 jobs in all economic sectors –Boosted U.S. household income by $4.4 billion through increased economic activity and new jobs –Added $1.3 billion and $1.2 billion of tax revenue for federal and state/local governments, respectively A 40 million gallon per year dry mill ethanol plant can 1 : –Expand the local economic base by $110 million annually –Create approximately 41 new jobs at the plant –Add nearly $20 million to annual household income in the surrounding community –Contribute approximately $1.2 million annually to state and local tax revenue According to the USDA, ethanol production increases the price a farmer receives for corn by 25-50 cents per bushel 1 Estimated by applying RIMS II multipliers (U.S. Department of Commerce, Bureau of Economic Analysis) to plant expenditures.

11 11 Strong Guidance The Secretary’s Biomass Initiative looks to make a real difference in his lifetime. The Energy Policy Act of 2005 provides direction on program content as well as loan guarantee authorization for commercial scale demonstrations. The President’s National Energy Policy includes multiple recommendations that support bioenergy. The Biomass R&D Act of 2000 directs DOE and USDA to enhance and coordinate biomass R&D efforts. The only Renewable Energy Source available now to help EERE Realize two of it’s Portfolio Priorities (oil dependency reduction and the establishment of a sustainable domestic biomass industry) The Energy Title (Title IX) of the Farm Bill provides support for increased use of biomass energy and products and for R&D. Federal Advisory Committee & Federal R&D Board

12 12 How Do We Get There? Provide the fundamental R&D and capability needed for future developments Use public policy directives and incentives to drive development and markets Implement strategy during 2007 – 2012 –Help industry build the first unit –Cost share industrial-scale validation of multiple pathways to the integrated biorefinery –Expand feedstock development efforts

13 13 Whole Crop Integrated Biorefinery The Hub of the Integrated Biorefinery is Feedstock Assembly/Preprocessing, and Pretreatment Thermochemical Conversion Biochemical Conversion Pretreatment Fractionation Fuel Co-products Heat and Power Cellulosic Carbohydrates Non-fermentables Assembly / Preprocessing Starch Carbohydrates Feed Products

14 14 Conversion of Available Feedstocks “Billion Ton” study indicates that enough biomass is potentially available to displace > 30% of current U.S. petroleum consumption But it requires variety of biomass types –Agricultural lands Corn stover, wheat straw, soybean residue, manure, switchgrass, poplar/willow energy crops, etc. –Forest lands Forest thinnings, fuelwoods, logging residues, wood processing and paper mill residues, urban wood wastes, etc.

15 15 Fermentation Technology Platform

16 16 Gasification Technology Platform

17 17 Pathways to Success Feedstock R&D Feedstock R&D Biochemical R&D Biochemical R&D Thermochemical R&D Thermochemical R&D Products R&D Products R&D Balance of Plant Balance of Plant Existing Wet & Dry Mill Improvements Oil Seed Mill Improvements Agricultural Residue Processing Perennial Energy Crops Processing Pulp and Paper Mill Improvements Forest Residue Processing Integrated Biorefineries Integrated Biorefineries Development and Demonstration Deployment Increasing Industry Participation Fundamental R&D Today Accelerated 3 to 10 Years

18 18 Enzymatic Hydrolysis Research NREL worked with Genencor and Novozymes for 4 years Focusing on enzyme biochemistry, cost, and specific activity Investigating the interaction of biomass pre-treatment and enzymatic hydrolysis Result: G.T. 30-fold reduction in cost contributions of enzymes ($/gal Ethanol) E1 from A. cellulotiticus CBH1 from T. reesei 2004 R&D 100 Award $40 million R&D effort cost-shared by the Office of the Biomass Program and the enzyme manufacturers

19 19 Cost Target Acceleration

20 20 Funding & Earmark History

21 21 Biofuels Summary & Conclusions The only domestic & renewable option for liquid transportation fuels. Resource base sufficient to supply a large fraction of U.S. needs The “net” energy balance is very good. A sustainable solution to meet the near-term “gap” caused by Peak Oil Science & Technology will create many other opportunities that extend beyond today’s ethanol & biodiesel

22 22 Supporting Information

23 23 Agricultural Resource Scenarios Current availability of biomass from agricultural lands is based on data and analysis Total current availability of biomass is ~ 193 million dry tons/year Slightly more than one-fifth is currently used Corn stover is largest source of agriculture-derived biomass

24 24 Agricultural Resource Summary Sustainable agricultural resource potential exceeds 930 million dry tons

25 25 Forest Resource Summary The sustainable forest resource potential ~ 370 million dry tons per year

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