america’s energy future kansas renewable energy conference national biofuels policy update ernie...

America’s Energy Future Kansas Renewable Energy Conference

National Biofuels Policy Update

Ernie Shea25x’25 Project CoordinatorSeptember 24, 2008Topeka, Kansas

America’s Energy Future

ENERGY

The Linchpin of Our Economy

Fundamental to our prosperity

Contributes to our quality of life

Historically has been abundant and affordable


Fossil based energy systems are not sustainable

World oil reserves are limited in supply and located in volatile parts of the world

Dependence on foreign oil is increasing


Costs of oil, natural gas and electricity are skyrocketing

Emissions from burning of fossil fuels are impacting the environment


The Reality

Fossil fuel resources are finite and diminishingGlobal energy consumption is increasing (nearly 60% by 2030)The world population is growing (9.1 billion by 2050)Fast-developing economies like India and China are demanding more resources Greenhouse gas emissions are increasing (World carbon dioxide emissions expected to increase by 1.9% annually between 2001 and 2025)


By the year 2025, America’s farms, ranches and forests will provide 25 percent of the total energy consumed in the U.S. while continuing to produce safe, abundant and affordable food, feed and fiber.

Our Vision:

25x’25


We will meet this goal by:

Producing transportation fuels

Harnessing wind energy

Converting biogas emissions

Capturing solar and hydro energy

Providing biomass for generating heat and power


This is a food, feed, fiber and fuel vision, that is economically viable for our society.

With emerging technology we can produce multiple commodities.


What’s in it for ag and forestry?Increased farm income

Added value uses

Alternative enterprises

More productive uses of marginal lands

Assist in resolution of air, water and soil quality problems

Reduced reliance on government payments

Enhanced rural economies


Over 750 partners including:- Kansas Dept. of Agriculture

- Kansas Corn Growers and Soybean Assoc.

- Kansas Electric Power Cooperative

- Forest Landowners Association

- Deere & Company

- Ford, Chrysler and GM

- American Wind Energy Association

- National Wildlife Federation

- Environmental Defense Fund


Governors’ Endorsements


State Legislature Resolutions


State Alliance Activity

Active AlliancesForming AlliancesAlliance Planning Underway


Passed by Congress as part of HR6

Signed into law by President Bush on December 19, 2007

25x’25 is now a national renewable energy goal!


Document and affirm the fact that America’s working lands can secure 25 percent of it’s energy needs from renewable sources.

Phase IV Mission:


Critical Challenges & Opportunities

• Biofuel pushback

• Sustainability issues

• Role of agriculture and forestry in a reduced carbon economy

• Woody biomass contributions


Biofuel Pushback

• Net energy balance• Soil erosion• Water quality and quantity• Direct and indirect land use impacts• Increased GHG emissions• Impacts on commodity prices• Increased costs for livestock sector• Food shortages and ??????


Lifecycle Greenhouse Gas Emissions Associated with Different Fuels

19%Reduction 28%

Reduction

52%Reduction

86%Reduction

78%Reduction

Gasoline

NaturalGas

BiomassCurrentAverage

CellulosicEthanolCorn Ethanol

BiomassPetroleum

Sources: Wang et al, Environ. Research Letters, May 2007; Wang et al, Life-Cycle Energy Use and GHG Implications of Brazilian Sugarcane Ethanol Simulated with GREET Model, Dec. 2007.

SugarcaneEthanol

Biomass


Sustainability

25x’25 Definition:

Renewable energy production must conserve, enhance and protect natural resources and be economically viable, environmentally sound and socially acceptable.


Sustainability Principles• Biodiversity • Biotechnology• Air Quality/Greenhouse Gas Emissions• Invasive Species• Land Use• Public Lands• Soil Quality and Quantity • Water Quality and Quantity• Wildlife Habitat and Health


Biofuels are an important part of our nation’s renewable energy portfolio

While not perfect, biofuels provide a critical pathway to a sustainable, cleaner and more secure energy future

Technology is leading us to more efficient, cleaner, less costly solutions


ConversionProcesses

BiomassFeedstock

- Ded. Energy Crops- Ag and Forest Residues- Hazardous Fuel Treatments- Short Rotation Woody Crops- Wood Waste

USESUSES

Fuels:− Bio/Renewable Diesel− Ethanol

Electricity and Heat

Biobased Products– Composites– Specialty Products– New Products– Chemicals– Traditional Products

– Manufacturing– Co-firing– Combustion– Gasification – Enzymatic Fermentation– Gas/liquid Fermentation– Acid Hydrolysis/Fermentation

The Opportunity & Potential


U.S. Biofuel Goals

2012- Cost-competitive cellulosic ethanol

2015- 3 billion gallons of cellulosic biofuels

2022- 16 billion gallons cellulosic biofuels

2030 - Displace 30% of U.S. gasoline consumption


National Policy Drivers

• Renewable Fuel Standards

• Excise and Production Tax Credits

• Import tariff

• Investments in RDD&D

• Loans and loan guarantee programs


U.S. Renewable Fuel Standard 2007

(In billions of gallons)

Year

Conventional Biofuel

Advanced Biofuel

Cellulosic Biofuel

Biomass-based Diesel

Total RFS

2008 9.0 - - - 9.000 2009 10.5 0.600 - 0.500 11.100 2010 12 0.950 0.100 0.650 12.950 2011 12.6 1.350 0.250 0.800 13.950 2012 13.2 2.000 0.500 1.000 15.200 2013 13.8 2.750 1.000 * 16.550 2014 14.4 3.750 1.750 * 18.150 2015 15 5.500 3.000 * 20.500 2016 15 7.250 4.250 * 22.250 2017 15 9.000 5.500 * 24.000 2018 15 11.000 7.000 * 26.000 2019 15 13.000 8.500 * 28.000 2020 15 15.000 10.500 * 30.000 2021 15 18.000 13.500 * 33.000 2022 15 21.000 16.000 * 36.


Renewable Fuel Standard GHG reduction requirements, EISA 2007

Facilities that begin construction after December, 2007, must achieve the following GHG emissions reduction, as compared to the baseline lifecycle GHG emissions:

• Corn Starch Ethanol – 20%• Biomass-based fuel (biodiesel, renewable diesel) and

advanced biofuel – 50%• Cellulosic biofuel – 60%*

These percentages are subject to a 5-year review by the EPA Administrator.


RFS Waiver

• EISA ’07 authorizes the Administrator of EPA to waive the renewable fuels mandate if the Administrator determines that implementing the requirement would severely harm the economy or the environment, or that there is inadequate domestic supply to meet the requirement.


Transforming Feedstocks into Renewable Fuels

• Natural Oils

• Sugars & Starches

• Cellulosic Biomass

• Diesel substitute• Biodiesel• Renewable diesel• Dimethyl furon (DMF)• Gasoline• Diesel• Jet fuel• Hydrocarbons• Ethanol• Butanol• Biogasoline


VEETC – VOLUMETRIC ETHANOL EXCISE TAX CREDIT

• Blenders credit created October 2004 as part of the American Jobs Creation Act of 2004.

• Provided for a $0.51 per gallon refund or credit for each gallon of ethanol used

• Modified in 2008 Farm Bill to $0.45 per gallon• Set to expire December 31, 2010• Under pending PTC legislation VEETC would be

extended until December 31, 2011


Cellulosic Biofuels Credit

• New, temporary cellulosic biofuels production tax credit for up to $1.01 per gallon

• Authorized in the 2008 Farm Bill• Designed to help accelerate the commercial

scale production of cellulosic biofuels• Available through December 31, 2012


Biodiesel Production Tax Credit

• Biodiesel production tax credit was passed as part of the Energy Policy Act of 2005. Producers receive $1 per gallon of biodiesel produced; small biodiesel producers receive $0.10 per gallon production tax credit.

• Senate renewable energy PTC package, which passed 93-2 on September 23, 2008, contains an extension of all of the above credits. The package awaits reconciliation with the House PTC bill.

• Senate-passed package also broadens the types of biodiesel eligible for such credits, eliminating process-based restrictions.


Import Tariff

• U.S. charges a $0.54 per gallon tariff on imported ethanol.

• Tariff was extended in the Food, Conservation, and Security Act of 2008 (“Farm Bill”) through 1/1/2011.

America’s Energy Future DOE RD&D Solicitations

Commercial-Scale Biorefineries (up to $385 million)

• 6 cost-shared, integrated biorefinery demonstration projects

10%-Scale Biorefinery Validation (up to $200 million)

• Cost-shared, integrated biorefinery demonstrations at one-tenth projected scale for first-of-a-kind commercial facilities

Ethanologen Solicitation (up to $23 million)

• Five selected research teams working on microorganisms

Enzyme Solicitation (up to $33.8 million)

• Creating commercially available, highly effective, inexpensiveenzyme systems for biomass hydrolysis

Thermochemical Conversion (up to $7.75 million)

• Integration of gasification and catalyst development

Joint DOE-USDA Solicitation ($18 million)

• 21 biomass research, development, & demonstration projects in 2008

• Next year’s solicitation to be announced soon

University Solicitation (up to $4 million)

Feedstock Logistics Solicitation (up to ~$9 million)


Six Commercial-Scale Biorefinergy Projects: up to $385 million

Four Small-Scale (10%) Biorefinery Projects: up to $114 million (first round)

Three Bioenergy Centers: up to $405 million

Four Thermochemical Biofuels Projects: up to $7.7 million

Four Improved Enzyme Projects: up to $33.8 million

Five Projects for Advanced Ethanol Conversion Organisms: up to $23 million

Geographic, Feedstock, and Technology DiversityMajor DOE Biofuels Project Locations

Pacific Ethanol Biochemical Wheat Straw/Corn Stover (Boardman, OR)

IogenBiochemical Wheat Straw(Shelly, ID)

Blue FireBiochemicalMunicipal Solid Waste(Corona, CA)

PoetBiochemicalCorn Stover(Emmetsburg, IA)

LignolBiochemicalWood Residues(Commerce City, CO)

ICMBiochemicalSwitchgrass, Corn Stover(St. Joseph, MO)

AbengoaBiochemical/ThermoAg Waste, Switchgrass(Hugoton, KS)

DOE Joint Bioenergy Institute(Berkeley, CA)

DOE Great Lakes Bioenergy Research Center(Madison, WI)

DOE Bioenergy Science Center(Oak Ridge, TN)

Stora Enso North AmericaThermochemicalWood Chips(Wisconsin Rapids, WI)

Range FuelsThermochemicalWood Chips(Soperton, GA)

AlicoThermochemical/BioCitrus Waste(LaBelle, FL)

Iowa StateThermochemicalSwitchgrass(Ames, IA)Emery Energy

ThermochemicalCorn Stover(Salt Lake City, UT)

Research Triangle InstituteThermochemicalWoody Biomass(Research Triangle Park, NC)

Southern Research InstituteThermochemicalVarious(Birmingham, AL)

DSM Innovation CenterBiochemicalVarious(Parsippany, NJ)

NovozymesBiochemicalVarious(Davis, CA)

GenencorBiochemicalVarious(Palo Alto, CA)

Verenium CorpBiochemical (2)Various (San Diego, CA)

Dupont BiochemicalVarious(Wilmington, DE)

MascomaBiochemicalVarious (Lebanon, NH)

Purdue UniversityBiochemical (West Lafayette, IN)

Cargill IncBiochemical Various(Minneapolis, MN)

Regional Feedstock PartnershipsSouth Dakota State Univ., Brookings, SDCornell University, Ithaca, NYUniv. of Tennessee, Knoxville, TNOklahoma State Univ., Stillwater, OKOregon State Univ., Corvallis, OR

KeyCompanyProcess Feedstock(Location)


Loans and loan Guarantees

• Biorefinery Assistance Program- $320 million for commercial and pre-commercial advanced biofuel refineries

• Bioenergy Program for Advanced Biofuels- $300 million for payments to support production of advanced biofuels

• Rural Energy for America Program (REAP)- $250 million in grants and loan guarantees for renewable energy and energy efficiency projects undertaken by producers and small businesses


America needs a new energy future that is:

cleaner

improves national security

strengthens the economy

contributes positively to the quality of life of all


America needs a comprehensive, long-term energy plan that will:

accelerate the production of all forms of renewable energy

create new renewable energy markets

deepen our commitment to conservation of natural resources, sustainability and protection of the environment


The 25x’25 Alliance calls on the Congress and next President to take the steps necessary to achieve the 25x’25 National Goal and set the nation on the path to a clean, prosperous and secure energy future.

25x’25


25x’25’s Overarching National Energy Plan Recommendations

Recommendations10


Public Policy

• Increasing production

• Delivering renewable energy to markets

• Expanding renewable energy markets

• Improving energy efficiency and productivity

• Strengthening conservation and protecting the environment


Critical Questions

What is the Kansas’s vision for the role of biofuels in America’s energy future?

How will you participate?

What has to happen for your vision to be realized?

Who is at the policy table representing your interests?


The 25x’25 Vision:

Is achievable

Provides a positive impact on the national and rural economies

Reduces our reliance on foreign oil and improves national security

Creates important environmental benefits


We have the technology, capacity and leadership to offer new energy solutions.

These solutions will enhance farm income and strengthen rural communities.

The public and policy makers are behind us.

Why now?


Please Join Us!

www.25x25.org

america’s energy future kansas renewable energy conference national biofuels policy update ernie...

Documents