Biofuels in North America
United States
Please note, additional information on research activities in the US is also included on the individual pages covering Second Generation biofuels technology (such as algal biofuels, biocrude, cellulosic ethanol, etc) and end uses (aviation, hybrid vehicles, etc).
Biofuels Development in the US
The United States is currently the world's biggest producer of fuel ethanol (producing an estimated 9000 million gallons in 2008, according to the US Renewable Fuels Association). It is making substantial investments to bring second generation biofuels to market, particularly cellulosic ethanol, as outlined in the National Biofuels Action Plan (PDF 5.0 Mb).
In January 2010, U.S. Department of Energy Secretary Steven Chu has announced the investment of nearly $80 million under the American Recovery and Reinvestment Act for advanced biofuels research and fueling infrastructure that will help support the development of a clean sustainable transportation sector.
The two consortia selected for funding were:
National Alliance for Advanced Biofuels and Bioproducts (NAABB) ($44 million) - Led by the Donald Danforth Plant Science Center (St. Louis, MO), NAABB will develop a systems approach for sustainable commercialization of algal biofuel (such as renewable gasoline, diesel, and jet fuel) and bioproducts.
National Advanced Biofuels Consortium (NABC) (up to $33.8 million) - Led by the National Renewable Energy Laboratory and Pacific Northwest National Laboratory, NABC will conduct cutting-edge research to develop infrastructure compatible, biomass-based hydrocarbon fuels. The R&D strategy includes investigating six process options:
- fermentation
- catalytic conversion
- catalytic fast pyrolysis
- hydropyrolysis
- hydrothermal liquefaction
- low-cost one-step syngas to distillates
Venture Capital also plays an important role, as outlined in the presentation on Private Equity funding of advanced biofuels technologies: a European and North American outlook (271 Kb PDF) by New Energy Finance given at the EBTP Second Stakeholder PLenary Meeting (SPM2) in January 2008.
The Report US Economic Impact of Advanced Biofuels Production: Perspectives to 2030 (pdf) analyzes how growth of an advanced biofuels industry will impact four areas critical to U.S. economic recovery, including job creation, economic output, energy security and investment opportunity. The report suggested that the advanced biofuels industry could create 29,000 new jobs and create $5.5 billion in economic growth over the next three years and could ultimatelty create 800,000 new jobs by 2022 with a positive effect on output of $148.7 billion. In this scenario, the cumulative total of avoided petroleum imports over the period 2010–2022 would exceed $350 billion.
US-EC Research Cooperation
The EC-US task force on biotechnology research includes a Bio-based Products working group. The joint working group was established in 2004 to facilitate and coordinate collaborative (EU-US) research in molecular biology to create or improve biobased products and biofuels.
In February 2009, India and the US exchanged a memorandum for cooperation on biofuels development, covering the production, utilization, distribution and marketing of biofuels in India.
US Renewable Fuel Standard Program
The Renewable Fuel Standard Program (RFS2): Final Rule was signed on February 3 2010. This includes thresholds for different biofuel types and GHG reduction. RFS2, as required by the Energy Independence and Security Act of 2007, ensures that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The new requirements increase the volume of renewable fuel required to be blended into transportation fuel to 36 billion gallons by 2022. The rule was developed in collaboration with refiners, renewable fuel producers, and many other stakeholders.
Ethanol production in the USA – with an emphasis on development related to cellulosic ethanol
In the USA, where ethanol is the preferred biofuel used at a 10% blend, the rise in oil prices generated an ever increasing interest in ethanol production in early 2008. This reflected an initial increased optimism following the passing of the Energy Independence & Security Act of December 2007. This comprehensive energy legislation amends the Renewable Fuels Standard (RFS) of 2005, and anticipates bioethanol production in the US reaching 36 billion gallons in 2022. Of this, 16 billion gallons are expected to come from cellulosic feedstocks. By 2016, the total renewable fuels produced will be around 20 billion gallons. From then on, all of the increase in the RFS target must be met by advanced biofuels. These are defined as cellulosic ethanol and other biofuels derived from feedstock excluding corn starch.
At the same time the 2008 Farm Bill, passed in May, reduces the 51¢ per-gallon incentive for ethanol to 45¢ per gallon for calendar year 2009 and thereafter. This links to the Energy Bill in providing for a new, temporary cellulosic biofuels production tax credit for up to $1.01 per gallon to help get these fuels to commercial viability. The credit would be available to December 31, 2012.
These developments led to a buoyant position for the fuel ethanol business in early 2008, with reports of over 100 new ethanol projects having been initiated or developed further. Of these a significant number expected to use cellulosic feedstocks such as wood waste, MSW, baggase and crop residiues as well as possible energy crops such as switchgrass. A precise figure is difficult to obtain since some proposed plant do not declare feedstock, whilst other list several options.
For those using raw materials other than potential food crops, a range of conversion technologies are proposed. These include enzyme-based and acid-based lignocellulose hydrolysis as well as gasification followed by either catalytic synthesis of hydrocarbons, or the use of anaerobic bacteria to produce ethanol. These processes are at various stages of development, ranging from pilot to demonstration scale. However, at present there does not appear to be a commercial scale facility producing bioethanol from lignocellulose operating in the USA. A number are under development and could begin production anytime from this year onwards, with several anticipating start-up in 2009 through 2011.
However, as a result of a downturn in the US economy, difficulties in the loans market, increasing grain prices and mounting opposition from environmentalists concerning sustainability and an ever increasing public concern reflecting the ‘fuel vs food’ debate an increasing number of projects have been postponed or cancelled. Another problem in providing a definitive list of processes, companies that have developed processes and companies that expect to build production plant is the inherent complexity of the market place as well as the ‘hype’ attached to some organisation looking to attract investors.
A quick search of the worldwide web provides over 100 such companies, though in a number of cases new companies have emerged based on technology previous associated with or marketed under a different name. Of these, 11 have been quoted as having established plans for cellulosic ethanol projects. The leaders include Abengoa and Verenium with demonstration plant due to come on stream in 2008 (see list below).
US Companies with plans for CE plants:
In addition to the organisations listed below, a number of cellulosic ethanol plants and pilots operating or under construction in the US, were summarised by Gas2.0 in March 2009 [Sources: Biotechnology Industry Organization, individual companies].
DuPont Danisco Cellulosic Ethanol LLC
See also:
US Government Biomass Energy information
National Renewable Energy laboratory
Forest Service Research & Development
Agricultural Research Service, U.S. Department of Agriculture
Canada
In Canada, the NextGen Biofuels Fund™, aims to bring biodiesel and cellulosic etahnol projects to market sooner by helping them bridge the high CAPEX (capital expenditure) gap to scale-up their technology solution to a large, demonstration-scale plant.
A Shell service station in Canada was the first in the world to sell Gasoline blended with 10% Cellulosic Ethanol from Wheat Straw. For one month starting June 10 2009, the regular gasoline purchased at a Shell service station in Ottawa, Ontario contained 10% cellulosic ethanol. The biofuel was produced locally from non-food raw materials at Iogen Energy Corporation’s demonstration plant, using advanced conversion processes. Iogen and Shell are partners in the plant, which now produces 40,000 litres of fuel per month.
Further information on development of Cellulosic ethanol in Canada
Canada is also a world leader in pyrolysis
of lignocellulosic materials.