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April 2003 Biobased Fuels, Power and Products Newsletter
 
Contents:
Feature Article: Biomass R&D Technical Advisory Committee and Interagency Board Hold First-Ever Joint Meeting
Biomass Spotlight: Florida
On the Hill
Grassroots
Market Place
Events
Solicitations
R&D Awards
 

Feature Article

Biomass R&D Technical Advisory Committee and Interagency Board Hold First-Ever Joint Meeting

The Biomass R&D Technical Advisory Committee (Advisory Committee) and the Interagency Biomass R&D Board (Interagency Board) held a joint meeting on February 24-25, 2003 for the first time since the establishment of the two groups by the Biomass Research and Development Act of 2000. This meeting provided an opportunity for these leaders from the biomass community to meet face-to-face with federal representatives involved in biomass-related R&D, policies, and incentives. The purpose of the joint meeting was to discuss the progress and direction of the federal government's biomass-related R&D programs and related policies.

In preparation for the meeting, each agency of the Interagency Board provided the Advisory Committee with an unprecedented, detailed summary of their agency's biomass-related activities. This review of the interagency matrix of biomass activities showed that the Department of Energy, the Department of Agriculture, and the National Science Foundation have the largest federal investment in biomass research and development activities. The Department of Energy's FY 2003 budget for its Biomass Program is approximately $114 million. Activities supported by these funds include bioconversion activities, oils and syngas platform analyses, biorefinery integration, and the FY 2003 joint Biomass Research and Development Initiative solicitation with the Department of Agriculture. DOE's Office of Science is conducting research on plant systems.

The Department of Agriculture's requested budget for FY 2003 includes approximately $259 million for biomass-related activities across five different mission areas, the majority of which support activities such as research on bioconversion, agronomic practices, and efforts specified in the 2002 Farm Bill. A major portion of USDA's biomass-related budget also goes to incentives through its Commodity Credit Corporation. The National Science Foundation, which is focused on biomass research and education, is supporting approximately $50 million of biomass activities in FY 2003, such as metabolic engineering, biotechnology, plant biology, and genomics.

The Department of Interior does not conduct R&D relevant to the development of biomass resources, technologies, or markets. However, it does support forest and woodland management programs that provide biomass feedstock opportunities. Other agencies of the Interagency Board, such as the Environmental Protection Agency, the Office of Science and Technology Policy, and the Office of the Federal Environmental Executive work to advance biomass research and development through policies, programs, and regulations. A number of the agencies on the Interagency Board collaborate on activities supporting the spirit of the Biomass R&D Act of 2000. For example:

  • The Environmental Protection Agency held an Agriculture, Smoke Management and Air Quality Workshop with assistance from the Departments of Energy, Agriculture, and Interior, which focused on increasing interagency communication on the important connection between agriculture, energy, and the environment;
  • The Departments of Interior, Energy, and Agriculture are developing a Memorandum of Agreement on policy principles for forest and woodland biomass and wood fiber utilization;
  • The Departments of Energy and Agriculture are jointly planning a Residues Workshop for Corn Stover and Wheat Straw to be held in late April 2003; and
  • A number of federal agencies are collaborating on an initiative to increase procurement of biobased products in federal facilities.

The Biomass Research and Development Act of 2000 established the Interagency Board to coordinate the biomass-related programs within and among federal departments and agencies. It is co-chaired by the Departments of Energy and Agriculture. Other member agencies include:

  • Department of Interior
  • Environmental Protection Agency
  • National Science Foundation
  • Office of Science and Technology Policy
  • Office of the Federal Environmental Executive

The Act also established an Advisory Committee to advise the Secretaries of Energy and Agriculture and the Interagency Board on the future direction of biomass research and development investments. The Advisory Committee, now in its third year of activity, consists of 31 members from industry, academia, non-profit organizations, and the agricultural and forestry sectors, who are experts in their respective fields.

During the joint meeting, the Advisory Committee expressed its concern that the full potential of biomass is not being pursued in response to the nation's energy future. Budget requests for biomass activities in FY 2004 seem to be decreasing and areas of research that the Committee believes are important, such as co-firing and black-liquor gasification, have either been cut or will be cut in the FY 2004 budget. The Advisory Committee acknowledged that biomass is just one of a number of potential solutions to the nation's energy problems. However, the committee members hope that biomass does not become overlooked while the nation pursues other avenues, such as hydrogen. The Interagency Board urged the Advisory Committee to help educate the public and decision makers on biomass's potential in order to help the federal government advance the use of biomass as a renewable resource and make it a national priority.

The Interagency Board requested that the Advisory Committee use the information provided at the February meeting to closely review the current direction of the federal biomass R&D portfolio in comparison to the Vision and Roadmap recently developed by the Committee. Based on their review, the Advisory Committee will develop recommendations to the Secretaries of Energy and Agriculture on their biomass R&D portfolios and identify priority R&D areas, as well as opportunities for interagency collaboration.

For updates and further information on the Advisory Committee and the Interagency Board, please visit http://www.bioproducts-bioenergy.gov.

Click on an agency to view the summary presentation on its biomass-related programs:


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Biomass Spotlight: Florida

In 1999, Floridians consumed approximately 3,853 trillion Btu of energy. Petroleum accounted for almost 50% of total consumption. Other major energy sources were coal (17% of total consumption), natural gas (14%), and nuclear electric power (9%).1 Biomass use in the state was 159.1 trillion Btu, about 4% of the state's total energy use. This consisted of 0.1 trillion Btu (or 24,000 barrels) of ethanol used in the transportation sector 2 and 159 trillion Btu of wood and waste used in the residential, commercial, and industrial sectors.3 In 2000, the state housed more than 13,000 alternative fuel vehicles.4 Biomass is the leading renewable resource in Florida's electric power sector; in 1999, about 90% of renewable-based electric power generation came from biomass resources.5

Florida's large agricultural industry uses significant quantities of biomass feedstock to produce thermal energy and electric power in the non-utility sector. In fact, in 1999, 27% of gross energy in non-utility facilities in the state was produced using wood and waste.6

About 13.9 billion kWh of electricity could be generated in Florida using renewable biomass sources (enough to supply the annual needs of 1,387,000 average homes). This is approximately 16% of the residential electricity use in the state.7

In an effort to find a way to use co-firing to convert fast-growing eucalyptus trees and other crops into renewable energy fuel sources for electric utilities in the Southeastern United States, Common Purpose Institute (www.serve.com) is working with the University of Florida, electric utilities, agriculture interests, and engineering firms in maintaining and researching a 130-acre "energy crop plantation" in central Florida-the largest such plantation in the United States. The "super trees" (www.serve.com) used for the project are the result of decades of research performed by the University of Florida and Shell Energy; the fuel generated from these energy crops possesses almost no sulfur, contains half the nitrogen coal contains, and has the potential to reduce greenhouse gas emissions.8

On February 5 and 6, 2003, the International Conference on Co-Utilization of Domestic Fuels was held in Gainesville, Florida. The purpose of the conference was to explore the benefits of blending domestic fuels -- including agricultural wastes and biosolids -- in eco-friendly thermochemical reactors for waste disposal, electrical generation, and production of gaseous and liquid fuels and chemicals. Conference attendees aimed to create and publish a roadmap for thermal co-utilization of domestic fuels (CDF). The U.S. Department Energy was among the conference's many sponsors.9

Florida offers incentives for biomass users. Residents and businesses who chose to use a blend of 5% solar and 95% biomass electric power from Tallahassee Electric Utility to meet 50%, 75%, or 100% of their electricity needs can take advantage of the premium price of 1.6 ¢/kWh. Tallahassee partnered with Sterling Planet (www.sterlingplanet.com), a Georgia-based green power marketer, to offer this incentive.10

1 Energy Information Administration. "Table71. Energy Consumption Estimates by Source, Selected Years 1960-1999, Florida." eia.doe.gov
2 Energy Information Administration. "Table 75. Transportation Energy Consumption Estimates, Selected Years 1960-1999, Florida." ftp.eia.doe.gov
3 Energy Information Administration. "Table 72. Residential Energy Consumption Estimates, Selected Years 1960-1999, Florida." eia.doe.gov; "Table 73. Commercial Energy Consumption Estimates, Selected Years 1960-1999, Florida." eia.doe.gov; "Table 74. Industrial Energy Consumption Estimates, Selected Years 1960-1999, Florida." ftp.eia.doe.gov
4 "Florida: Biobased Fuels, Power, and Products State Fact Sheet." www.bioproducts-bioenergy.gov
5 Energy Information Administration. Appendix C. "Renewable Electric Generation, Capacity, and Market Share by State for 1999 and 2000: Table C1. Renewable Electric Power Sector Net Generation by Source and State, 1999." www.eia.doe.gov
6 Energy Information Administration. "Table 58. Gross Generation for U.S. Nonutility Generating Facilities by Energy Source and State, 1999." www.eia.doe.gov
7 "Florida Biomass Power Resources: Recent Studies Indicate That Florida Has a Good Biomass Resource Potential." http://www.eere.energy.gov/state_energy/tech_biomass.cfm?state=FL
8 "Planet Power: Energy and the Environment." www.treepower.org; "Protecting Our Environment by Using Renewable Energy." www.serve.com
9 "International Conference on Co-Utilization of Domestic Fuels." www.doce-conferences.ufl.edu
10 "Florida Incentives for Renewable Energy." www.dsireusa.org

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On the Hill

Congress is considering a number of bills that affect the use of biomass resources to produce energy and biobased products. For more information, visit thomas.loc.gov
Bill # Sponsor
Summary Last Action
S. 597 Sen. Chuck Grassley
(Republican - IA)
T: (202) 224-3744
A bill to amend the Internal Revenue Code of 1986 to provide energy tax incentives.
3/11/2003:
Read twice and referred to the Committee on Finance.
H.R. 1020 Rep. Paul Ryan
(Republican - WI)
T: (202) 225-3031
To amend the Clean Air Act requirements relating to gasoline to prevent future supply shortages and price spikes in the gasoline market, and for other purposes.
3/10/2003:
Referred to the Subcommittee on Energy and Air Quality.
S. 385 Sen. Thomas Daschle
(Democrat - SD)
T: (202) 224-2321
A bill to amend the Clean Air Act to eliminate methyl tertiary butyl ether from the United States fuel supply, to increase production and use of renewable fuel, and to increase the Nation's energy independence, and for other purposes.
2/13/2003:
Read twice and referred to the Committee on Environment and Public Works.
H.R. 837 Rep. Collin Peterson
(Democrat - MN)
T: (202) 225-2165
To amend the Clean Air Act to eliminate methyl tertiary butyl ether from the United States fuel supply, to increase production and use of renewable fuel, and to increase the Nation's energy independence, and for other purposes.
2/13/2003:
Referred to the House Committee on Energy and Commerce.
H.R. 244 Rep. Darrell Issa
(Republican - CA)
T: (202) 225-3906
To amend the Clean Air Act to permit the exclusive application of California State regulations regarding reformulated gas in certain areas within the State.
2/3/2003:
Referred to the Subcommittee on Energy and Air Quality.
H.R. 465 Rep. Steve King
(Republican - IA)
T: (202) 225-4426
To amend the Internal Revenue Code of 1986 to allow allocation of small ethanol producer credit to patrons of cooperatives, and for other purposes.
1/29/2003:
Referred to the House Committee on Ways and Means.
S. 240 Sen. Peter Fitzgerald
(Republican - IL)
T: (202) 224-2854
A bill to amend the Internal Revenue Code of 1986 to allow allocation of small ethanol producer credit to patrons of cooperatives, and for other purposes.
1/29/2003:
Read twice and referred to the Committee on Finance.
S. 154 Sen. Mark Dayton
(Democrat - MN)
T: (202) 224-5641
A bill to provide emergency disaster assistance to agricultural producers, to impose tariff-rate quotas on certain casein and milk protein concentrates, and to amend the Internal Revenue Code of 1986 to provide tax relief for farmers and the producers of biodiesel, and for other purposes.
1/14/2003:
Read twice and referred to the Committee on Finance.
H.R. 318 Rep. John Shimkus
(Republican - IL)
T: (202) 225-5271
To amend title 23, United States Code, to require consideration under the congestion mitigation and air quality improvement program of the extent to which a proposed project or program reduces sulfur or atmospheric carbon emissions, to make renewable fuel projects eligible under that program, and for other purposes.
1/9/2003:
Referred to the Subcommittee on Highways and Transit.
S. 139 Sen. Joseph Lieberman
(Democrat - CT)
T: (202) 224-4041
A bill to provide for a program of scientific research on abrupt climate change, to accelerate the reduction of greenhouse gas emissions in the United States by establishing a market-driven system of greenhouse gas tradeable allowances that could be used interchangably with passenger vehicle fuel economy standard credits, to limit greenhouse gas emissions in the United States and reduce dependence upon foreign oil, and ensure benefits to consumers from the trading in such allowances.
1/9/2003:
Read twice and referred to the Committee on Environment and Public Works.
H.R. 130 Rep. Marcy Kaptur
(Democrat - OH)
T: (202) 225-4146
To provide for a Biofuels Feedstocks Energy Reserve, and to authorize the Secretary of Agriculture to make and guarantee loans for the production, distribution, development, and storage of biofuels.
1/7/2003:
Read twice and referred to the Committee on Environment and Public Works.
S. 17 Sen. Thomas Daschle
(Democrat - SD)
T: (202) 224-2321
A bill to initiate responsible Federal actions that will reduce the risks from global warming and climate change to the economy, the environment, and quality of life, and for other purposes.
1/7/2003:
Read twice and referred to the Committee on Environment and Public Works.

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Grassroots

USDA and DOE Announce $21 Million Biomass Solicitation
The U.S. Department of Agriculture and the U.S. Department of Energy jointly announced the availability of funds and solicited proposals for a grant under the Biomass Research and Development Act of 2000 and other authorities. The call for proposals is intended to promote greater innovation and development related to biomass. The eligibility requirements and areas that will be funded are described in the request for proposal (RFP). A PDF copy of the RFP is located at
www.bioproducts-bioenergy.gov

Pioneer Will Switch its Equipment to Biodiesel
Pioneer Hi-Bred International, Inc. will use biodiesel in its farm and tractor equipment and over-the-road diesel vehicles where available, as of April 2003. This includes more than 300 diesel vehicles and pieces of farm equipment. "Our commitment to biodiesel is another way Pioneer is supporting agriculture by increasing demand for the crops our customers grow," said Pioneer vice president, Tom West.
www.hpj.com

NCGA to Unveil New Corn Products Guide
Looking for building materials made from corn? Or maybe it is corn-based adhesives and binders you are after. With the click of a mouse, nearly 600 non-food and non-feed products made from corn can be accessed through the Corn-Based Products Guide. The guide went live at www.ncga.com on February 27, 2003 at the Commodity Classic, the joint tradeshow and convention of National Corn Growers Association (NCGA) and the American Soybean Association, in Charlotte, NC, and is part of a larger initiative by the NCGA Research and Business Development Action Team to provide new markets for corn and corn-derived products. The guide is a resource for consumers and companies interested in purchasing or producing corn-based consumer and industrial goods. The database can be searched by product application, supplier, or general category.
www.hpj.com

CAO Introduces Building Blocks Made of Soy
The Ironton-Lawrence County, OH, Community Action Organization is developing a storage building made out of a blend of soybean-based polyol - a plasticized soy-based product - and a petroleum-based product. It is created through a process that blends these two ingredients by turning them into a foam that hardens into a one-foot-high, two-foot-long block of high-density material that its inventor hopes will make home building easier, more affordable and more earth-friendly. The blocks are joined together to form walls by using traditional post and beam construction, only the posts are cylinders of concrete poured into the openings in the center of the blocks, and long metal re-bar type rods inserted into the concrete and the blocks. The blocks take the place of exterior studs and insulation and are sturdy and can be stuccoed or veneered with brick or siding.
www.irontontribune.com

D.C. Developer Buys Green Power for 13 of its Buildings
The Tower Companies, a Bethesda, MD-based commercial and residential building developer, has announced the purchase of more than 24 million kilowatt hours of green power. Thirteen of Tower's largest office and apartment buildings in the Washington, DC metro area will each purchase between 25% and 50% green power from Green-e certified renewable biomass sources. Tower is buying green power from Pepco Energy Services through Sterling Planet's "Renewable Energy Certificates" program. Tower's purchase represents enough energy to power 2,100 homes annually. Tower received assistance from the Green Power Market Development Group, a partnership between World Resources Institute and 12 major U.S. corporations dedicated to building corporate markets for green power. The group's goal is to develop corporate markets for 1000 MW of new, cost-competitive green power by 2010.
www.greenbiz.com

WWPP Unveils Plans to Build Biomass Power Plant in NM
Western Water and Power Production (WWPP) recently announced plans to build a $50-million biomass electricity generation facility near the city of Raton, NM, that would convert "tree thinnings, agricultural waste, and other combustible material" into power for between 20,000 and 35,000 homes. The company said it is currently working to obtain permits for the new facility, with construction slated to begin "within a year" and operations to commence by 2005.
www.eintoday.com


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Market Place

Data Sources:
OxyFuel News: Ethanol
(U.S. Avg: Terminal); MTBE (Houston, TX: spot); Gasoline (Gulf Coast: spot, regular grade)
USDA-National Agricultural Statistics Service, "Agricultural Prices," "Grain Stocks"


Grain Prices Mar 2002
Mar 2003 % Change
Corn Prices
($/bushel)
1.94 2.30 19%
Soybean Prices ($/bushel)
4.38 5.58 27%
Fuel Supply Mar 2002 Mar 2003 % Change
Motor Gasoline Production ('000 b/d) 8598 8676 0.91%
Motor Gasoline Imports
('000 b/d)
863 725 19.03%
*Motor Gasoline Stock
(Mil. bbl)
148.4 158.8 -6.55%
Refinery Utilization Rate 87.7 86.0 1.98%
Fuel Production Feb 2002 Feb 2003 % Change
*Ethanol Production
('000 b/d)
122 169 38.52%
*MTBE Production
('000 b/d)
173 167 -3.47%

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

*Please note: Units used for fuel data have been revised to correct an error in previous editions.


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Events
April 14-15, 2003
Sacramento, CA
California Ethanol Workshop Sponsored by the U.S. Department of Energy
Ann Wester:anne@bbiethanol.com
April 14-15, 2003
Lisle, IL
Trucks and Buses in the 21st Century Environment
Bethany Wezeman: info@chicagocleancities.org
April 22, 2003
Washington, DC
Earth Day Biobased Products Showcase
Mark Drake: mark.drake@biobased.org
April 28 - 30, 2003
Tampa, FL
11th Annual North American Waste-to-Energy Conference
Kent Drinker: kdrinker@swana.org
April 28 - 29, 2003
Miami, FL
Power Crops for the Americas
www.agra-net.com
May 4-7, 2003
Breckenridge, CO
25th Symposium on Biotechnology Fuels and Chemicals
www.nrel.gov
May 8, 2003
Harrisburg, PA
Penn Future's 3rd Annual Green Power: Turn It On! Getting to 10% Conference
www.pennfuture.org
May 12-14, 2003
Bejing, China
International Kenaf Symposium and Product Show
www.chinaconsultinginc.com
May 13, 2003
Milwaukee, WI
Wisconsin Green Power Workshop
www.resource-solutions.org
May 13-14, 2003
Seville, Spain
World Biofuels 2330
www.agra-net.com
May 15, 2003
Chicago, IL
Alternative Fleet Fuels Workshop
www.energyinstitution.org
May 21-22, 2003
Louisville, KY
Seventh Annual Symposium Distillers Grains/Distillery Operations
www.distillersgrains.org
Click here for additional bio-related events.

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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: Department of Energy's Office of Science
Schedule: Applications may be submitted at any time.
URL: www.science.doe.gov

Title: Consequences of Global Change for Air Quality: Spatial Patterns in Air Pollution Emissions
Description: Extramural funding competition supporting research into the consequences for air quality of global change - including climate, climate variability, land-use, economic development, and technology.
Government Agency: U.S. Environmental Protection Agency
Schedule: Proposals due April 9, 2003
URL: es.epa.gov

Title: Chemical Industry of the Future
Description: Seeking applications for cost-shared research and development (R&D) of technologies that will reduce energy consumption, enhance economic competitiveness, and reduce environmental impacts of the domestic chemical industry. The R&D will focus on technology development in the areas of catalysis and catalytic engineering, and separations technologies.
Government Agency: Department of Energy - Idaho Operations Office
Schedule: Proposals due April 30, 2003
URL: e-center.doe.gov

Title: Inventions and Innovations (I&I) Program
Description: Restricted eligibility program that funds energy-saving technologies in the conceptual and developmental stages. Individual inventors and very small businesses (15 or fewer employees) are especially encouraged to participate.
Government Agency: Department of Energy
Schedule: Proposals due April 11, 2003
URL: e-center.doe.gov

Title: State Energy Program (SEP) Special Projects
Description: Seeking State and local partners to help foster markets for biomass-based technologies.
Government Agency: Department of Energy
Schedule: Proposals due May 9, 2003
URL: e-center.doe.gov

Title: Biomass Research and Development Initiative
Description: Availability of funds under the Biomass Research and Development Act of 2000 and other authorities for proposals that promote greater innovation and development related to biomass.
Government Agency: U.S. Department of Agriculture and U.S. Department of Energy
Schedule: Proposals due May 16, 2003
URL: www.bioproducts-bioenergy.gov

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R&D Awards

There are no awards for this month.

National Biomass Initiative
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