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March 2004 Biobased Fuels, Power and Products Newsletter
 
Contents:
Feature Article: Committee Evaluates Federal Biomass Research Direction, Outlines Plans for 2004
Biomass Spotlight: North Carolina
On the Hill
Grassroots
Market Place
Events
Solicitations
R&D Awards
 

Feature Article

Committee Evaluates Federal Biomass Research Direction, Outlines Plans for 2004

The Biomass Research and Development Technical Advisory Committee completed its third year of activities by providing the Secretaries of Agriculture and Energy its evaluation of biomass R&D activities undertaken by the two agencies in fiscal year 2003. The Committee's Work Plan for 2004 calls for the Committee to evaluate the progress of the federal government in facilitating federal procurement of biobased products, review historical biomass research performed at the Department of Energy, and discuss the role of hydrogen energy and biomass-to-hydrogen potential.

Section 306 of the Biomass R&D Act of 2000 (P.L. 106-224) established the Committee to:
1)  Advise the Secretary of Energy and the Secretary of Agriculture concerning the technical focus and direction of requests for proposals under the Biomass Research and Development Initiative, and procedures for reviewing and evaluating proposals;
2)  Facilitate consultations and partnerships among Federal and State agencies, agricultural producers, industry, consumers, the research community, and other interested groups to carry out activities relating to the Initiative; and
3)  Evaluate and perform strategic planning on program activities relating to the Initiative.

To date, the Committee's activities have resulted in several major products, including:

In 2003, the Committee used the Vision and Roadmap as a baseline to develop recommendations for federal agencies on biomass research and development. DOE and USDA assembled information on their biomass research portfolios and organized the information along Committee Roadmap categories. The material was presented to the Committee in February of 2003 and was evaluated by the Committee over a period of seven months (February through August) through a series of meetings and conference calls.

Following its review, the Committee made specific recommendations to the Secretaries of Energy and Agriculture on biomass-related research investments and non-R&D activities as they relate to each of the Committee's Roadmap categories: feedstock production, processing and conversion, product uses and distribution, and public policy. In general, the Committee felt that the level of funding was inadequate and that there are significant gaps in research related to bioconversion, feedstock production, and sustainable chemicals. The Committee did not find duplication of effort in areas of R&D, but stressed the importance of continued coordination between the two agencies.

The Committee stands by the goals set forth in the Vision and continues to believe they are achievable within the timeframes established. However, it does not believe current U.S. government efforts put the industry on track to meet these goals. The Committee believes that the current DOE and USDA biomass activities will make only a very modest contribution towards this end. Moreover, the Committee does not believe that the U.S. government's current funding for biomass programs is sufficient to implement the Roadmap.

Committee recommendations state that the Roadmap cannot be effectively implemented and the Vision goals cannot be achieved without an order of magnitude increase in financial and policy support for biomass. Specific first steps in this direction should include:

  • A request for $60 million to support the construction of three cellulose-to-ethanol plants capable of processing a variety of cellulose raw materials and using different production technologies. These plants should be operational by 2008.
  • Active support for substantial procurement and incentive policies that will dramatically increase the production of biomass energy and biobased products.

Underlying the Committee's recommendations is the consensus that an effective R&D program in the biomass area must coordinate the goals of demonstrating technologies at a commercial scale and implementating public policies, including public education, incentives, government purchasing, and removal of regulatory roadblocks. A role for USDA, DOE, and other sectors of the federal government exists across these areas, including financial support prior to transfer of technologies to the private sector.

In 2004, the Committee plans a number of activities that include discussing the progress of federal procurement of biobased products. It will hear presentations on biomass research at DOE in the areas of cellulosic ethanol, gasification, and co-firing, and the history of the Federal Government's efforts in those areas. The Committee will discuss its position regarding the role of hydrogen energy and the potential of biomass as a feedstock for hydrogen production. The Committee will review the 2004 joint solicitation process and awards made, and develop detailed recommendations to the Secretary of Energy and the Secretary of Agriculture. Additionally, the Committee will develop a mechanism for tracking the progress of R&D funded under each of the joint solicitations.

The Committee's first meeting of the calendar year is scheduled for March 11, 2004 in Crystal City, Virginia.


Biomass Spotlight: North Carolina

In 2000, the state of North Carolina consumed 2,534 trillion Btus of energy. Petroleum and coal accounted for 39 and 31 percent of the total consumption, respectively. Nuclear provided 16 percent and natural gas provided 9 percent of total consumption. In North Carolina, biomass supplied 4 percent of the total energy consumption, over 95 trillion Btus.1

A variety of biomass projects are being funded across North Carolina. A six-acre landfill in Yancy County is currently in the final stages of an effort to develop the first small-scale landfill gas (LFG) site in the state. It will utilize a microturbine for electricity generation. Currently, a gas collection system is in place and the microturbine is on site. The remaining task is to complete the gas pretreatment system. The electricity from this project will be used at the EnergyXchange Renewable Center for, among other uses, a business incubator for potters, glass blowers, and a greenhouse complex.2

A larger 20-acre landfill in Wilkes County is the site of another LFG project. The methane from this landfill will be used as fuel for a regional fire training facility for firefighters from Wilkes and surrounding counties, and ultimately will be expanded to include a four-state area. The gas will also provide fuel and/or electricity for nearby Wilkes Community College and for a community apple storage/processing center to sustain the local Brushy Mountain apple growers.3

Another large source of biomass material in North Carolina is waste from hogs and pigs. North Carolina has 9.9 million head of hogs and pigs, making it second in the nation.4 A project at North Carolina State University (NCSU) is investigating the technical and economic feasibility of using gasification as a means to convert hog waste to ethanol. Currently a demonstration gasifier has been installed and test runs are occurring to determine the optimum combustion requirement for generating liquid fuels. The research has shown swine waste to be a suitable feedstock with a theoretical production rate of 80 gallons per year of ethanol in North Carolina alone.5

One of the main roadblocks to the production of electricity from biomass in the United States are issues with the interconnection to the power grid. A coalition of power producers is being formed to help overcome obstacles in the interconnection of distributed energy production facilities to the electric grid in North Carolina. An economic analysis will be completed and project barriers and feasibility will be determined for connecting to the grid using a microturbine as a technology example.6

Two other projects in North Carolina are looking at the potential for biomass use in the state. One project is assessing and characterizing agricultural crop residues and wood wastes in the state.7 The other project is a Web-based biomass fuels database. This database is being developed by NCSU and DOE's Oak Ridge National Laboratory, and will collect and present information on distributed power generation technologies and issues, past and current studies on North Carolina renewable resources used for energy production, and other information pertaining to biomass in the state.8

The state of North Carolina provides an array of personal and corporate tax credits and an energy loan improvement program to promote the use of biomass. Under the Renewable Energy Corporate Tax Credit a corporation can take a tax credit up to $250,000 for biomass applications on commercial and industrial facilities. The tax credit includes the cost of the equipment and associated design, construction costs, installation costs less any discounts, rebates, advertising, installation assistance credits, name referral allowances, or other similar reductions.9

1Energy Information Administration. "Table 7. Energy Consumption Estimates by Source, Selected Years, 1960-2000, North Carolina." www.eia.doe.gov
2U.S. Department of Energy, Atlanta Regional Office
3U.S. Department of Energy, Atlanta Regional Office
4December 2003, USDA Hogs and Pigs report, http://usda.mannlib.cornell.edu/reports/nassr/livestock/php-bb/2003/hgpg1203.txt
5Formation of Fuel-Grade Ethanol From Swine Waste Via Gasification, HTTP://WWW.THEPIGSITE.COM/FRAME.ASP?LINK=HTTP://MARK.ASCI.NCSU.EDU/SWINEREPORTS/2001/03MANBRETT.HTM
6 U.S. Department of Energy, Atlanta Regional Office
7North Carolina State Energy Office
8U.S. Department of Energy, Atlanta Regional Office
9DSIRE, Chttp://www.dsireusa.org/library/includes/map2.cfm?CurrentPageID=1&State=NC

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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. 1449 Sen. Michael D. Crapo
(Republican - ID)
T: (202) 224-6142
A bill to improve the capacity of the Secretary of Agriculture and the Secretary of the Interior to prepare and conduct hazardous fuels reduction projects on National Forest System land and Bureau of Land Management land that are aimed at protecting communities, watersheds, and certain other at-risk land from catastrophic wildfire, to enhance efforts to protect watersheds and address threats to forest and rangeland health on public and private land, including catastrophic wildfire, to increase research on forest health and forest-damaging agents, and for other purposes.
12/03/2003: Related to H.R. 1904 known as the Healthy Forest Restoration Act, which became Public Law No: 108-148 on 12/03/2003.
H.R. 6 Rep. W. J. Tauzin
(Republican - LA)
T: (202) 225-4031
To enhance energy conservation and research and development, to provide for security and diversity in the energy supply for the American people, and for other purposes.
11/21/2003: Last minute negotiations have failed to secure the 60 votes needed to bring the bill to a vote in the Senate. Congressional leaders announced they would postpone further action on the energy bill until next year.
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.
10/30/2003: Referred to Senate Committee on Environment and Public Works.
H.R. 3336 Rep. Paul E. Gillmor
(Republican - OH)
T: (202) 225-6405
To clarify congressional approval of certain state energy production tax practices.
10/27/2003:
Referred to the Subcommittee on Commerce, Trade and Consumer Protection
H.R. 3903 Rep. Charles F. Bass
(Republican - NH)
T: (202) 225-5206
To amend the Clean Air Act to establish a national uniform multiple air pollutant regulatory program for the electric generating sector.
10/6/2003:
Referred to the Subcommittee on Energy and Air Quality.
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.
10/1/2003:
Introductory remarks made on the measure.

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Grassroots

NEC Succeeds in Development of Flame Resistant Bio-Plastic
NEC Corporation today announced that it has succeeded in developing top-level flame resistant biomass-source plastic, polylactic acid, without the use of such toxic materials as halogen and phosphorus compounds, used as flame-retarding additives. This bio-plastic has passed top-level flame resistance standards regulated by Under Writer Laboratories, which will enable it to be widely used in electronic products. In addition, it boasts other important properties such as heat resistance, moldability, and strength, that are comparable to those of fiber-reinforced polycarbonate used in desktop-type electronic products.
http://www.japancorp.net/Article.Asp?Art_ID=6366

Sony and Mitsubishi Create Vegetable-Based Plastic
Sony Corp. said it has developed an environmentally-friendly biodegradable plastic for use in its electronics products by teaming up with Mitsubishi Plastics Inc. Sony will first apply the new vegetable-based plastic to a DVD player it will put on the market this fall.
http://www.japantoday.com/e/?content=news&cat=4&id=288288

Engineers Find Economical Way to Make Hydrogen from Ethanol
Researchers at the University of Minnesota claim to have discovered a method of producing hydrogen from ethanol that is efficient enough to potentially serve as an economical source of hydrogen. The researchers claim a unit small enough to fit in a person's hand would be able to generate enough hydrogen to fuel a one-kilowatt fuel cell, capable of powering an average home. A major advantage of the University of Minnesota invention is its use of a mixture of ethanol and water, eliminating an energy-costly step needed to separate the two for use as a combustion fuel.
www.ur.umn.edu

Ethanol from Non-Starchy Biomass Sources
DOE is funding research to produce ethanol from non-starchy biomass sources such as corn leaves, corn stalks, and other agricultural wastes. These "woody" biomass sources are high in lignin, a glue-like substance that makes fermentation difficult. Danish company Novozymes A/S announced that it had achieved a 12-fold reduction in the cost of the enzymes needed to convert woody biomass sources into ethanol. Novozymes, the world's largest manufacturer of enzymes, was able to cut the cost for enzymes by increasing the enzyme activity and fermentation yield. As a result, the company reduced the cost of the enzymes needed to produce one gallon of ethanol from woody biomass from $5 per gallon to less than 50 cents per gallon.
www.novozymes.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 Feb 2003 Feb 2004 % Change
Corn Prices
($/bushel)
2.34 2.55 8%
Soybean Prices ($/bushel) 5.55 7.99 31%
Fuel Supply Feb 2003 Feb 2004 % Change
Motor Gasoline Production ('000 b/d) 8,400 8,780 4.33%
Motor Gasoline Imports
('000 b/d)
726 681 -6.61%
*Motor Gasoline Stock
(Mil. bbl)
156 143 -9.09%
Refinery Utilization Rate 86 89 3.37%
Oxygenate Production* Dec 2002 Dec 2003 % Change
Ethanol Production
('000 b/d)
176 207 14.98%
MTBE Production
('000 b/d)
206 129 -59.69%

*Because EIA is making changes to the petroleum supply data, the Monthly Oxygenate Report data is not currently available. The data will become available in late March and will be displayed in the April Newsletter.

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


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Events
March 1-3, 2004
Las Vegas, NV
POWERGEN - Renewable Energy Conference
http://www.electricpowerexpo.com
March 2-4, 2004
Las Vegas, NV
Commodity Classic
http://www.commodityclassic.com/
March 4-6, 2004
Biloxi, MS
Southern Bio-Products Conference
http://www.ms-biomass.org
March 15-17, 2004
Portland, OR
Biocycle West Coast Conference 2004
http://www.jgpress.com/Conferences/NoInfoAvailable.htm
April 2, 2004
Various locations in the U.S.
National AFV Day Odyssey
http://www.nationalafvdayodyssey.org
April 13-15, 2004
Washington, D.C.
Earth Technologies Forum
http://www.earthforum.com
May 2-5, 2004
Fort Lauderdale, FL
10th National Clean Cities Conference and Expo
http:// www.ccities.doe.gov
May 9-12, 2004
Chattanooga, TN
26th Symposium on Biotechnology for Fuels and Chemicals
http:// www.ct.ornl.gov/symposium
May 10-14, 2004
Rome, Italy
2nd World Conference and Technology Exhibition on Biomass for Energy, Industry and Climate Protection
http://www.conference-biomass.com/
May 17-19, 2004
Saskatoon, Canada
Bio-Logical Futures II
http://www.bio-science.sk.ca/
June 2-4, 2004
Jonkoping, Sweden
World Bioenergy 2004
http://www.elmia.se/worldbioenergy/
June 13-15, 2004
Helena, MT
14th Annual EPAC Ethanol Conference "Energy, Parks and Clean Cities: Gemstones In the Treasure State"
http://www.ethanolmt.org
June 22-25, 2004
Madison, WI
20th Annual International Fuel Ethanol Workshop & Tradeshow
http:// www.bbiethanol.com
June 24-25, 2004
Arlington, VA
Agriculture as a Producer and Consumer of Energy
http://www.farmfoundation.org
June 27-30, 2004
Washington, DC
Future Car Congress
http://www.futurecarcongress.org
August 10-12, 2004
Duluth, MN
ACE Annual Meeting & Ethanol Conference
http://www.ethanol.org/conference.htm
August 28 - September 3, 2004
Denver, CO
World Renewable Energy Congress
http://www.nrel.gov/wrec/
October 11-13, 2004
Chicago, IL
Industrial Applications of Renewable Resources: A Conference on Sustainable Technologies
http://www.aocs.org/meetings/iafo
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: National Research Initiative (NRI) Competitive Grants Program
Description: The USDA Cooperative State Research, Education, and Extension Service requests proposals for the National Research Initiative (NRI) Competitive Grants Program. The purpose of the NRI Program is to support research, extension, and education grants that address key problems of national, regional, and multi-state importance in sustaining all components of agriculture (farming, ranching, forestry including urban and agroforestry, aquaculture, rural communities, human nutrition, processing, etc.). Over 30 areas of interest have been identified, including but not limited to: Biobased products and bioenergy, managed ecosystems, watershed processes & water resources, rural development, and air quality.
Government Agency: USDA
Schedule: Responses due 1/9/04 to 6/15/04, depending on area of interest.
URL: www.fedgrants.gov

Title: 2004 Renewable Development Fund
Description: Xcel Energy is entertaining proposals for renewable energy projects to be funded from its Renewable Development Fund. Xcel Energy created the Fund in May 1999 as an outcome of 1994 Minnesota legislation concerning spent fuel storage at the Prairie Island Nuclear Plant. Xcel Energy has issued its second request for proposal (RFP) for projects to fund. Funding is available for various sized projects in two categories: 1) Energy Production, and 2) Research and Development.
Company: Xcel Energy
Schedule: Proposals due March 16, 2004
URL: www.xcelenergy.com

Title: SEP Special Projects
Description: The U.S. Department of Energy requests proposals for State Energy Program (SEP) Special Projects. The goal of the Special Projects Program is to assist States, D.C., and Territories to accelerate deployment of energy efficiency and renewable energy technologies; facilitate the acceptance of emerging and underutilized energy efficiency and renewable energy technologies; and increase the responsiveness of Federally funded technology development efforts to private sector needs. Funding areas include: Clean Cities/Alt. Fuels, Industrial, Building Codes and Standards, Rebuild America, Building America, FEMP, Solar, Wind, Distributed Generation, and Biomass. Applications must be submitted by State or Territorial Energy Offices or other agencies responsible for the lead administration of the SEP (http://www.eere.energy.gov/buildings/state_energy/about.html). $16 million expected to be available. Cost share, funding amounts and due dates vary by project area.
Government Agency: Department of Energy
Schedule: Due date range is 3/29/04 to 4/2/04
URL: e-center.doe.gov

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R&D Awards

There are no awards for this month.

National Biomass Initiative
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