1. BIOFUEL EXPERIENCES AND PRIORITIES WITHIN APEC International Biofuels Conference 2007 February 1-2, 2007 Tokyo, Japan Cary Bloyd, Ph.D. Center for Energy, Environmental, and Economic Systems Analysis (CEEESA) Decision and Information Sciences Division (DIS) Argonne National Laboratory 9700 South Cass Avenue, Argonne, IL 60439 (phone) ++1-301-651-8899 (fax) ++1-301-388-0537 (email) bloyd@anl.gov (web) www.ceeesa.anl.gov

2. 2 Argonne is America's First National Laboratory and one of the World's Premier Research Centers Founded in 1943, designated a national laboratory in 1946 One of 17 DOE National Laboratories Managed by the University of Chicago for the Department of Energy –About 3,200 employees and 4,000 facility users –About $500M budget –1500-acre site in Illinois, southwest of Chicago Broad research and development portfolio Numerous sponsors

3. 3 Presentation Outline APEC and Trade APEC Biofuels Mandates Alternative Transport Fuels in APEC APEC Biofuels Activities Closing Thoughts

4. 4 APEC and Energy Asia-Pacific Economic Cooperation (APEC) was created in 1989 Objective: Promote trade liberalization, trade facilitation and technical assistance Implements its activities through 11 working groups including the Energy Working Group (EWG) EWG is assisted by 5 Expert Groups including the Expert Group on New and Renewable Energy Technologies (EGNRET) APEC members account for over 50% of world GDP, 41% of world trade and over 50% of world energy consumption (http:www.apec.org)

5. 5 The Energy Working Group is Supported by Five Expert Groups Expert Group on Clean Fossil Energy (EGCFE) – Chair: USA Expert Group on Energy Efficiency & Conservation (EGEEC) – Chair: China Expert Group on Energy Data & Analysis (EGEDA) – Chair: Japan Expert Group on Minerals & Energy Exploration & Development (GEMEED) – Chair: Chile Expert Group on New and Renewable Energy Technologies (EGNRET) – Chair: USA (http://www.ewg.apec.org/)

6. 6 APEC Expert Group on New and Renewable Energy Technologies (EGNRET) Mission: To facilitate the increase in the use of new & renewable energy technologies in the APEC region –Lead and work with EWG major initiatives APEC 21 st Century Renewable Energy Development Initiative EWG led Energy Security Initiative (2001) Ministerial Level Clean Energy Financing Initiative (2004) Ministerial Level Hydrogen Initiative (2004) EWG led APEC Biofuels Task Force (2006) –Organize workshops –Conduct research projects 44 have been completed since 1992 8 are being implemented in 2007-2008

7. 7 APEC Alternative Fuels Activities At EM6 in 2004 APEC Energy Ministers called “for accelerated cooperation on the development of alternative transportation fuels" The EWG asked the EGNRET to examine alternative transport fuels under their Energy Security Initiative Joint EWG/ISTWG project on Future Fuel Technology (2004-2006) –http://apecforesight.org/apec_wide/future_fuel_main.cfm At EM7 in 2005 APEC Energy Ministers said “we direct the EWG to develop practical measures to enhance cooperation supporting the development of alternative transport fuels, including the establishment of a Biofuels Task Force” The APEC Biofuels Task Force held its first meeting in Singapore in May 2006, the second meeting in Zhuhai, China in October 2006, and third meeting in January 2007 in Tokyo

8. 8 Expert Group on New and Renewable Energy Technologies Alternative Fuels Activities The EGNRET establishes a working Collaborative (XI) on Alternative Transport Fuels in 2004 –Produced “Alternative Transport Fuels in APEC” Chinese Taipei hosted the 2005 International Bioenergy Symposium Two APEC projects are being carried out in 2007 –APEC 21st Century Renewable Energy Development Initiative (Collaborative IX): Establishment of the Guidelines for the Development of Biodiesel Standards in the APEC Region (led by Thailand) –APEC 21st Century Renewable Energy Development Initiative (Collaborative IX): Alternative Transport Fuels Policy Options for APEC Economies ( led by New Zealand)

9. 9 APEC Leads the world in ethanol production APEC Ethanol Production (millions of gallons)* 2004 2005 2006 United States 3,5304,2645,000 China 9641,004 Thailand 74 79 Canada 61 61 Indonesia 44 45 Japan 31 30 Australia 33 33 South Korea 22 17 Philippines 22 22 Mexico 9 12 Total APEC 4,790 5,567 Brazil 3,989 4,227 World total 10,77712,150 * Source: http:www. ethanolrfa.org/industry/statistics/

10. 10 Comparison of ethanol production costs (US$ per liter) Adapted from: Biofuels for Transport, An International Perspective, IEA, OECD, Paris, France, 2004 Note: Regular gasoline from Singapore: 9/04: $1.24; 9/05: $1.78; 9/06: $1.52

11. 11 APEC Transport Energy Use and Ethanol Production (2004- KTOE) EconomyTransport 1 Ethanol 2 EconomyTransportEthanol Australia27,78169New Zealand5411- Brunei371-PNG374- Canada50,154128Peru3088- Chile6641-Philippines867346 China67,5312022Russia41,063- HK, China5626-Singapore4224- Indonesia20,95292Chinese Taipei12,808- Japan84,48865Thailand21,107155 Korea32,57246USA616,9087402 Malaysia14,226-Vietnam5561- Mexico61,86719TOTAL1,091,42610,045 1 EGEDA: http://www.ieej.or.jp/egeda/ 2 Renewable Energy Fuels Association: http://www.ethanolrfa.org/

12. 12 Production of Both Ethanol and Biodiesel are Expanding in APEC Economies (1) Australia –Has set a target of 350 mega liters Bioofuels for 2010 (Ethanol & Biodiesel, up from 28 ML in 2005) – Has developed a Biofuels Action Plan Canada –Will blend 35% of its gasoline to 10% ethanol by 2010 (61 mill. gal. to 350 mill. gal.) –Has been a lead in cellulosic ethanol production (Iogen) –Has established the Canadian Biomass Innovation Network to coordinate RD&D activities (www.cbin.gc.ca)

13. 13 Production of Both Ethanol and Biodiesel are Expanding in APEC Economies (2) China –Targets for Biofuel have been set under new Renewable Energy Development Law: 2005  112 Mt; 2010  220 Mt; 2020  1200 Mt Japan –In 2006 announced “Utilization of Biomass Fuels for Transportation” associated with Kyoto Protocol targets –Target is to blend 20% of gasoline with ethanol by 2010 (approximately 360,000 KL/yr (95 Mill. Gal.)

14. 14 Production of Both Ethanol and Biodiesel are Expanding in APEC Economies (3) Chinese Taipei –Ethanol: Most gas stations (2,500) to provide E3 by 2011 –Biodiesel: Green County Demonstration Program where all diesel vehicles are fueled by B1 and local feedstocks used for fuel production Korea –Korean Bioenergy Technology Road Map Established –Korean Biodiesel Standards set up in 2004 –Has set goal of 552,000 toe biodiesel by 2012

15. 15 Production of Both Ethanol and Biodiesel are Expanding in APEC Economies (4) Thailand –Has both ethanol and biodiesel demonstration programs and is the world’s second largest sugar exporter –A successful 200 liters/day community level biodiesel program has been developed Malaysia –Plans to produce 14 mill. gal. of biodiesel by 2008 New Zealand –2006 Biofuels Obligation Legislation applies to both ethanol and biodiesel and targets all transport fuels sales to include 0.25% biofuels in 2008 rising to 2.25% biofuels in 2012

16. 16 Production of Both Ethanol and Biodiesel are Expanding in APEC Economies (5) USA –Targets are defined in terms of blending The target 4,000 mill. gal. in 2006 goes to 7,500 mill. gal. in 2012 –The US biofuel program is an example of partnerships US Department of Energy US Department of Agriculture US Environmental Protection Agency State biofuel programs Industry trade associations Private sector Research institutions/universities

17. 17 APEC can be a leader in biofuel development APEC economies are aggressively pursuing the expansion of biofuel production and use (doubling ethanol production by 2012) APEC provides a large range of policies that support biofuels New technologies are significantly reducing the costs of utilizing biofuels There are multiple reasons for using biofuels –Environment –Cost –Energy security

18. 18 Thank you for your attention!