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Enhanced Geothermal System Changing Energy Future

Ormat Technologies, the U.S. Department of Energy and GeothermEx have successfully produced 1.7 additional megawatts from an Enhanced Geothermal System (EGS) project inside an existing wellfield in the U.S. –the first EGS project to be connected to the electricity grid. Using subsurface technologies, research and development teams stimulated an existing sub-commercial injection well resulting in a 38 percent increase in power output from brine at Ormat’s Desert Peak 2 geothermal power plant in the Brady complex, Churchill County, Nevada.

Support for the project included $5.4 million in direct DOE funding, $2.6 in million investment from Ormat, and more than four years of collaborative work with Ormat Geothermal Project in Nevadapartners including Lawrence Berkeley National Laboratory, U.S. Geological Survey, Sandia National Laboratory, University of Utah EGI, Temple University and TerraTek.

Ormat explains that by expanding existing hydrothermal fractures deep within the Earth’s crust, EGS technology enhances the permeability of underperforming wells, making it possible to extract additional heat from a reservoir’s rocks and inject geothermal fluid at higher flow rates. Ormat’s air-cooled power plants don’t consume water in the conversion of energy into electricity; all the geothermal fluid is re-injected, to be produced again after heating in the reservoir.

“This research and development project was conducted under a stringent induced seismicity protocol developed by LBNL and the Department of Energy. We achieved an increased injection rate up to 1,600 gallons per minute without consuming or discharging water at the surface and using only existing geothermal brine returned to the original aquifer,” said Lucien Bronicki, founder and chief technology officer for Ormat. “Our objective in the Desert Peak EGS project was to demonstrate that this technology can have a significant impact on sub-commercial wells. This could enable us to use unproductive wells to generate more power and new revenue.”

“DOE’s Geothermal Technologies Office is changing geothermal development in the U.S.,” Bronicki added.

Honeywell UOP Selected for Floating LNG Project

UOP LLC, a Honeywell company, has been selected by Malaysia‘s Petroliam Nasional Berhad (PETRONAS) to provide technology for acid gas removal on the world’s first Floating Liquefied Natural Gas (FLNG) project, known as PETRONAS Floating LNG 1or PFLNG 1. The PFLNG 1 facility, which is designed to extract natural gas from offshore wells and liquefy and store it for later transport, will use Honeywell’s UOP Amine Guard FS process to remove carbon dioxide and hydrogen sulfide from UOP-LLC-to-Provide-Acid-Gas-Removal-Technology-for-PETRONAS-PFLNG-1the liquefied natural gas (LNG) feed streams.

“We are pleased to continue to grow UOP’s long-standing relationship with PETRONAS and for the opportunity to work with the company on its historic first floating LNG project,” said Rebecca Liebert, vice president and general manager for Honeywell’s UOP Gas Processing and Hydrogen business unit. “UOP offers a full suite of leading-edge, agile gas processing technologies, enabling us to design solutions for customers monetizing their gas resources. Together with PETRONAS, we are excited to bring continued improvements to meet the world’s growing demand for cleaner-burning and versatile natural gas energy in this new frontier of gas conditioning and treating.”

Scheduled for start-up by the end of 2015, the FLNG unit will be moored approximately 112 miles off the coast of Sarawak, Malaysia, and is designed to produce 1.2 million tons per year of LNG.

FLNG facilities such as PFLNG1 represent a step change because they allow these operations to be carried out far from land and closer to offshore gas sources. UOP says they will play a significant role in efforts to unlock gas reserves, particularly in remote and stranded fields previously deemed uneconomical to develop.

Ten Ways Renewable Fuels are Enviro

The Iowa Renewable Fuels Association (IRFA) has unveiled a list of 10 ways the renewable fuels industry is helping to improve the environment. According to IRFA, renewable fuels offer positive impacts on the environment compared to petroleum-based counterparts.

“Renewable fuels make our planet a better place to live with healthier air and water, and that’s exactly what Earth Day is all about,” said IRFA Executive Director Monte Shaw. “Smart energy policies like the Renewable Fuel Standard (RFS) encourage the production and use of cleaner, more environmentally friendly fuels like E15 and B20 that significantly reduce the environmental harm that is caused by petroleum-based fuels.”

Corns impact source NCGAThe following Top 10 list highlights ways in which ethanol and biodiesel have benefited the environment over the past decade through improvements at the plant, on the farm, and out of the tailpipe.

1.  According to the U.S. Department of Agriculture (USDA), for every unit of fossil energy needed to produce biodiesel, 5.5 units of energy are gained, while ethanol generates 2.3 units of energy for every unit of fossil energy input. By comparison, gasoline and diesel fuel have negative energy balances.

2.  The adoption of regenerative thermal oxidizers (RTO) has significantly reduced volatile organic compound emissions from ethanol plants.

3.  On a per gallon basis, today’s ethanol plants require 28% less thermal energy and 32% less electricity than a decade ago, according to the University of Illinois at Chicago.

4.  According to the U.S. Environmental Protection Agency (EPA), biodiesel reduces greenhouse gases (GHG) by up to 86% compared to petroleum diesel, while Yale University found that ethanol reduces GHG by up to 59% compared to gasoline.

5.  Water used to produce a gallon of ethanol has dropped 40% over the last decade, while biodiesel production reduces wastewater by 79% and hazardous waste by 96% when compared to petroleum diesel.

6.  Increased income from ethanol demand for corn has allowed farmers to invest in precision farming equipment and stronger conservation and environmental protections.

7.  The environmental footprint of U.S. corn production has improved greatly since the advent of the ethanol industry, including significant reductions in soil loss, irrigation, energy use and the amount of land required to produce a bushel of corn.

8.  Ethanol and biodiesel are both biodegradable and non-toxic.

9.  Biodiesel and ethanol significantly reduce tailpipe carbon monoxide emissions, air toxics, fine particulate matter and smog pollution compared to petroleum diesel and gasoline, making our air healthier to breathe.

10. Since the beginning of the RFS, biodiesel use alone has reduced lifecycle greenhouse gas (GHG) emissions by nearly 74 billion pounds, the equivalent of removing 5.4 million vehicles from U.S. roads.

PowerPot Turns Heat and Water into Electricity

Although this story doesn’t fit the traditional mold of renewable energy, it does honor Earth Day. Power Practical, a student startup that sprang from research at the University of Utah (the U), is selling a portable cook pot, coined the PowerPot, that transforms heat and water into a power source. The technology uses thermoelectricity to gPowerpot2enerate power by capturing the electrons moving from the heated pot to the cooler water inside. The greater the temperature difference, the more electricity is generated.

The students behind the company have been surprised by its rapid growth and are struggling to keep up with growing interest and demand. David Toledo, co-inventor and founder said, “We knew we were on to something when we got requests from around the world and more than doubled our goal during our Kickstarter campaign. We just shipped all of those orders, and we are quickly getting our product into more stores.”

Paul Slusser is the other co-inventor and founder. Other members of the Power Practical team include Matt Ford, the CEO who graduated with a degree in finance from the U in 1990; Wafiq Ali, who is graduating this May with a business degree from the U; Caleb Light, a business graduate from University Valley University; and Kenyon Ellis, an international studies student at the U.

Powerpot3The company has already shipped more than 1,000 units after attracting $126,000 in funding from its debut on Kickstarter, a crowdfunding platform, and they recently raised an additional $750,000 in seed funding.

“David and Paul are examples of what makes engineering so exciting ­ by mixing creativity, science, math and design education, they came up with a product that improves the quality of life for people around the world,” said Richard Brown, dean of the College of Engineering at the U. “Being entrepreneurial comes naturally to many engineers. In fact, 41 percent of the spinoff companies from the U are from engineering.”

The PowerPot is geared toward camping enthusiasts but also for those in developing countries who need electricity, such as to charge a cell phone. The company has a growing variety of PowerPots that serve different needs. The basic model, the PowerPot V, weighs less than a pound and produces 5 volts, enough to charge a cellphone in 60 to 90 minutes. Larger models, like the PowerPot X, produce 10 volts and can charge larger devices, like a tablet computer.

Walmart: 100% Renewable Energy by 2020

Walmart President and CEO Mike Duke has announced the company’s next step on the path to achieving its goal of being supplied 100 percent by renewable energy. Unveiled at Walmart’s Global Sustainability Milestone Meeting, the company committed to achieving the following by Dec. 31, 2020: drive the production or procurement of 7 billion kWh of renewable energy globally every year, a 600 percent increase over 2010 levels; and reduce the kWh/sq. ft. energy intensity required to power Walmart’s buildings globally by 20 percent compared to 2010 levels.

“More than ever, we know that our goal to be supplied 100 percent by renewable energy is the right goal and that marrying up renewables with energy efficiency is walmart-solar-storesespecially powerful,” said Duke. “The math adds up pretty quickly – when we use less energy that’s less energy we have to buy, and that means less waste and more savings. These new commitments will make us a stronger business, and they’re great for our communities and the environment.”

Walmart’s six-fold increase in renewable energy projects is expected to be equal to eliminating the need for roughly two U.S. fossil fuel power plants. Based on external estimates of projected energy costs and other factors, the two new commitments are anticipated to generate more than $1 billion annually in energy savings once fully implemented. For the first time, the company is projecting this GHG decrease even with significant anticipated growth in stores and sales.

“When I look at the future, energy costs may grow as much as twice as fast as our anticipated store and club growth,” Duke said. “Finding cleaner and more affordable energy is important to our every day low cost business model and that makes it important to our customers’ pocketbooks. Our leadership in this area is something our customers can feel good about because the result is a cleaner environment. And savings we can pass on to them.”

In 2012 alone, Walmart added nearly 100 renewable energy projects, bringing the total number of projects in operation worldwide to nearly 300 today. According to the Solar Energy Industry Association, it has more solar power capacity and number of systems than any other company in America. Walmart has also been cited by the U.S. Environmental Protection Agency (EPA) as America’s leading user of onsite renewables, using more onsite renewable power than any other company in the U.S. In addition to onsite solar, the company will continue to develop projects in wind, fuel cells and other technologies. It will also procure offsite renewable energy from utility-scale projects, such as large wind projects, micro-hydro projects and geothermal.

Wind Energy Grows 28% in a Year

According to the American Wind Energy Association’s (AWEA) U.S. Wind Industry Annual Market Report for 2012, wind energy grew 28 percent in America last year, setting a new installation record. Wind energy topped all energy sources with a 42 percent of all new electric generating capacity. Over 6,700 new wind Wind farmturbines were erected that produce enough electricity to power the equivalent of 3.5 million homes. Overall, the U.S. finished the year with 45,100 wind turbines that can power 15.2 million homes.

AWEA says all 50 states benefited from the growth in wind energy through $25 billion in private investment in new U.S. wind farms, tens of millions of dollars paid to landowners and local communities in lease payments and property taxes, and billions in projected savings for electricity consumers. The impact of wind power development was so strong that an industry analyst said it caused a noticeable uptick in the entire U.S. economy in the fourth quarter.

Xcel Energy remains the number one utility provider of wind energy in the U.S. for the ninth consecutive year. At the end of 2012, Xcel Energy had nearly 4,900 megawatts of wind electricity generating capacity on its system, enough to power 1.5 million homes and at least 600 megawatts more than the next leading utility. Wind power currently represents about 12 percent of the energy the company supplies to its customers.

“I am proud that Xcel Energy is once again the nation’s leading clean energy utility,” said Ben Fowke, president, CEO and chairman of Xcel Energy. “Our customers and communities are strong supporters of renewable energy, and wind energy plays a vital role in our strategy to meet customers’ energy needs with clean, reliable, and affordable energy.”

AWEA says wind power also helped address the disaster-level drought affecting half of U.S. counties by saving over 35 billion gallons of fresh water (120 gallons for every American), versus other water-intensive energy sources. Wind energy also avoids over 4 percent of carbon dioxide emissions in the power sector annually.
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Pew Report: Clean Energy Capacity Up, Investment Down

According to research released by The Pew Charitable Trusts, the global clean energy sector is undergoing geographic and technological shifts as new markets emerge renewable capacity grows. There were 88 gigawatts (GW) registered in 2012 even though investment levels declined 11 percent to $269 billion from 2011. Screen Shot 2013-04-22 at 12.58.28 PMAmong the Group of Twenty (G-20) nations, the United Kingdom (UK) maintained its seventh place ranking despite a 17 percent drop in investment to $8.3 billion.

Who’s Winning the Clean Energy Race? 2012 Edition, found that the 11 percent decline in clean energy investments compared to 2011 levels was due in part to curtailed incentive programs in a number of countries, among them Spain, Italy, and Germany. Elsewhere, continuing support for clean energy led to record levels of investment in a number of nations, including China and South Africa. Renewable energy installations grew by more than 11 percent to 88 GW, which reflected price reductions in wind, solar, and other technologies.

“Clean energy trends demonstrate the ongoing resilience of this emerging sector in the global economy,” said Phyllis Cuttino, director of Pew’s clean energy program. “Investment declines in the UK and throughout Europe were offset by strong performance in the Asian region. Uncertainty surrounding the long-term direction and content of UK policies has given pause to investors. Looking ahead, the advent of a green investment bank and abundant offshore wind resources could help bolster clean energy trends in the UK in coming years.”

China reclaimed the top spot from the United States, attracting $65.1 billion, a 20 percent increase over 2011 and 30 percent of the total for the G-20. China established itself as the leader in attracting investment in wind, solar, and other renewables. It added 23 GW of clean energy generating capacity, bringing its total to 152 GW, the most of any nation.

The United States fell to No. 2 as investment in the sector declined 37 percent, to $35.6 billion.
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Bioenergy Bytes

  • BioEnergyBytesDFPattern Energy Group LP announced that both the National Association of Environmental Professionals (NAEP) and the California Association of Environmental Professionals have awarded the Ocotillo Wind project with awards for outstanding environmental analysis and documentation.
  • Duke Energy Renewables has acquired two commercial solar power projects near Twentynine Palms, Calif., from project developer SolarWorld. The twin projects, named Highlander Solar 1 and 2, are in close proximity and will be run as a single operation. It will collectively generate 21 megawatts (MW) of renewable energy, enough to power more than 4,000 average homes each year.
  • Clean Energy Trust (CET) has hired Erik G. Birkerts as executive vice president and chief operating officer, responsible for directing operational processes of the non-profit cleantech business accelerator while implementing new strategies and programs.
  • OPIS is holding a webinar on Wednesday, May 22, 2013 at 2:00 pm EST called, “Stop the RINSanity! Compliance, Chaos and Challenges: Strategies for the Wild RINs Market.”
  • LDK Solar Co. has announced that it has signed a module supply contract with EA Solar Nakornsawan Co., Ltd, a leading developer of photovoltaic (PV) projects in Thailand. Under the terms of the agreement, LDK Solar will provide 63 megawatts (MW) of PV modules with weekly shipments of approximately 6.3 MW expected to commence in August 2013.

Get Your Green on with Biofuels

According to Fuels America, the biofuels industry is getting its green on with improved sustainability measures adopted throughout the biofuel chain. The chain – from farm to fiber to fuel– is meeting needs for energy, food and fiber in a more environmentally sensitive manner each day. During a press call this week, farmers and ethanol industry experts gave a briefing on the increased sustainability measures taken Go Greenin renewable fuel production from farm to fuel tank.

Despite significant efficiencies in water use, energy efficiency, and soil and land conservation, ethanol opponents are still insisting that biofuels are non environmentally friendly. But the agricultural industry and the biofuels industry explain this is simply not true. During the briefing, expert Fred Yoder, farmer and pas president of the National Corn Growers Association touted some of the new sustainable farming and harvesting technologies and noted that his father said he would leave the land is better health to his son and that he must pass on the land in better condition that it arrived to him.

Yoder was joined with Jan Koninkx, business director for biofuels with DuPont. The company is in construction of a commercial scale cellulosic plant in Nevada Iowa that when in production, will produce cellulosic ethanol from corn cobs and corn stover.

Finally, Adam Monroe, president of Novozymes North America, talked about the cutting edge enzymes they have developed with partners throughout the biofuels chain to help improve the fermentation and ultimate production of biofuels.

Listen to the full briefing here: Get Your Green on with Biofuels

Report: More Wind & Solar = Reliable Grid

According to a new report by Synapse Energy Economics prepared on behalf of the Civil Society Institute (CSI), if the U.S. ceases to burn coal, shuts down a quarter of existing nuclear reactors the trims its use of natural gas by 2050, the resulting increased reliance on wind, solar and other renewables will not result in a less Solar Farm in Las Vegas Photo- Joanna Schroederreliable electricity grid. The new study finds that, in the envisioned 2050 with a heavy reliance on renewables, regional electricity generation supply could meet or exceed demand in 99.4 percent of hours, with load being met without imports from other regions and without turning to reserve storage. In addition, surplus power would be available to export in 8.6 percent of all hours, providing an ample safety net where needed from one region of the U.S. to the next.

“This study shows that the U.S. electricity grid could integrate and balance many times the current level of renewables with no additional reliability issues,” said Grant Smith, senior energy analyst, Civil Society Institute. “Recent improvements in both renewable technologies themselves and in the technologies that are used to control and balance the grid have been proceeding at a rapid pace, and the incentives and rewards for success in this area continue to drive substantial progress.”

“In contrast, the alternative—continuing to rely on increasing combustion of fossil fuels to generate electricity, and producing ever-increasing levels of greenhouse gases—is far less feasible, and presents much more daunting technical, economic, and social challenges to human and environmental welfare. In comparison, the challenge of integrating increasing levels of solar and wind power on the U.S. power grids requires only incremental improvements in technology and operational practices, added Smith.”

Listen to Grant Smith’s presentation here: Adding Renewables Doesn't Create Reliability Issues

Report co-author Dr. Thomas Vitolo, analyst, Synapse Energy Economics, explained, “Put simply, the message today is this: It is a myth to say that the United States cannot rely on renewables for the bulk of its electricity generation. This study finds that the projected mixes, based entirely on existing technology and operational practices, are capable of balancing projected load in 2030 and 2050 for each region—in nearly every hour of every season of the year.”

Listen to Tommy Vitolo’s presentation here: The Lights Will Stay On with Renewables
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Envision Solar Int’l Installs Solar Tree for NREL

Envision Solar International (EVSI), has completed the installation of a second Solar Tree array for the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) at their Vehicle Testing and Integration Facility (VTIF). Envision Solar completed the installation of the Solar Tree array for NREL four and a half envision-solar-solar-tree-array-lgdays after the components arrived at the site on a single truck. The company says its Drag and Drop capability meant limited disruption at the site and the ability to use the product right away, which was very appealing to NREL.

“I’m proud that we have been chosen again by NREL. They are delighted the Solar Tree deployment went so quickly and without any typical construction problems,” said Desmond Wheatley, Chief Executive Officer, Envision Solar. “Our drag and drop infrastructure is comprised of engineered modules which enable us to deliver beautiful and complex structures, made simple and risk free for our customers. That’s how we minimize installation time and impact to their property.”

“The addition of this Made in America 18kW solar canopy incorporating EnvisionTrak and EV Charging supports NREL’s R&D mission to integrate electric vehicles and grid systems for enhanced value,” added Tony Markel, Senior Engineer, NREL. System benefits of the new tree were maximized by integrating the most efficient SunPower E20 solar panels and a compact transformerless bi-polar inverter from Ideal Power Converters.

The Solar Tree structure is designed to withstand 120mph winds and six feet of snow simultaneously; it is the most robust Solar Tree structure Envision Solar has designed to date.

Bioenergy Bytes

  • BioEnergyBytesDFThe Cadmus Group has launched a new Sustainable Transportation Practice, to be led by Damon Fordham. The practice will provide full-service research, policy analysis, technology assessment, communications/outreach, modeling, and tool development. Current projects include analysis of the deployment of alternative fuel vehicles, support for Context Sensitive Solutions, assessment of energy efficiency technologies, enhancement of aviation environmental models, and research into the costs of extreme weather events.
  • @NCSolar Center has awarded a sub award grant to the City of Rocky Mount, NC, through the U.S. Department of Energy’s Blue Skies Green Jobs Initiative, a $12,000,000 bi-state project led by Triangle J Council of Governments. The funding covered over 90 percent of the costs for a new Compressed Natural Gas (CNG) Refueling Station, and the cost differential between CNG powered refuse trucks and diesel powered trucks.
  • Royal DSM has signed a Memorandum of Understanding (MOU) for a strategic partnership with Rostekhnologii (Rostec), a Russian State Corporation, in the fields of biotechnology and functional materials. Under the terms of the MOU, DSM and Rostec will explore a potential cooperation in the field of conversion of cellulosic biomass from forestry and agriculture to fermentable sugars for the production of biofuels and/or biobased chemicals as well as the manufacturing of bio-based products such as bioethanol, biogas and organic acids from sugars derived from cellulosic biomass.
  • Salt River Project and SunPower Corp. have dedicated a one-megawatt solar photovoltaic power plant at Arizona State University‘s (ASU) Polytechnic campus in Mesa, Ariz. The facility is the first commercial deployment of the SunPower C7 Tracker technology, a solar photovoltaic tracking system that concentrates the sun’s power seven times to achieve one of the lowest levelized costs of electricity (LCOE) for solar power plants available today.
  • CleanFUEL USA commemorated 20 years of company history by launching several new propane autogas products at the 2013 National Propane Gas Association (NPGA) Southeastern Convention and International Propane Expo. Two new autogas dispenser offerings included the redesigned CFT PRO 2200 that features an expanded cabinet for easier installation and service and the Gasboy Autogas Dispenser.

Camp Pendleton Increases Its Solar Power

Camp Pendleton Dining FacilitiesCamp Pendleton has increased its commitment to renewable energy with the addition of two more solar power systems at Edson Range and Chappo Dining facilities. The 221 kilowatt and 125 kilowatt systems, respectively, installed by local firm Sullivan Solar Power should save the military base hundreds of thousands of dollars’ in electricity costs over the life time of the system. In conjunction with the economic advantages, the array will also provide a significant environmental impact by eliminating 13 million pounds of CO2 emissions over the warranty period of the solar panels.

“Camp Pendleton should be recognized as a leader in utilizing renewable energy opportunities. Between this solar installation and those completed within the last year, it’s obvious that the base is committed to developing a renewable future for coming generations,” said Daniel Sullivan, Founder and President of Sullivan Solar Power. “It’s reassuring to know that the military recognizes the value of solar energy.”

According to Sullivan Solar Power, the installation has been a boost for the local and national economy creating six new prevailing-wage jobs within the company. The installation firm employs International Brotherhood of Electrical Workers (IBEW) state certified electricians as their photovoltaic installers. Furthermore, the installation utilized only American-made products. The military base’s newly sustainable dining facilities are powered by 1,666 American-made Sharp 240-watt solar modules.

Bioenergy Bytes

  • BioEnergyBytesDFBlue Sphere Corp. has signed a purchase agreement for a suitable property for its 3.2 MW waste-to-energy plant in Rhode Island.
  • @ReneSola Ltd has been contracted to provide 7,200 of its 250-watt high-efficiency polycrystalline solar PV modules for a solar project to be built by S&C Electric Company, a Chicago-based provider of equipment and services for electric power systems, in Roswell, New Mexico this year.
  • ROUSH CleanTech is taking orders for its propane autogas powered Ford F-650 chassis cab fuel system aimed at fleets. Production will begin in October.
  • The European Parliament has voted against repairing the collapsing carbon market according to Rémi Gruet, Senior Climate Advisor of the European Wind Energy Association (EWEA) in Brussels. Given the failure of the European Parliament to support an effective carbon price, @EWEA urges the EU to urgently negotiate a way forward on backloading and for the European Commission to propose a long-term solution to create an effective carbon market.
  • There is only one week left to nominate an individual or organization for a Green Power Leadership Award. The nomination period has been extended one week to Monday, April 22, 2013. Sponsored by Center for Resource Solutions (CRS) and the U.S. EPA, the Green Power Leadership Awards are competitive awards that recognize outstanding commitments and achievements in the green power marketplace.

GlobalData: BioEthanol Car Fuel of Future

According to a new report by @GlobalDataEnergy, #bioethanol is the car fuel of the future. The report, “#Cellulosic Ethanol – Global Production, Major Trends, Regulations, and Key Country Analysis to 2020,” finds that #ethanol is the most widely acclaimed alternative or additive for gasoline used for running vehicles. In addition, the U.S. ranked number one in biofuel production using natural waste feedstocks. According to the latest report, the U.S. is the global leader in cellulosic ethanol production, manufacturing 5.42 million gallons in 2012.

bioethanolBioethanol is produced through the fermentation of cellulosic feedstock such as forest and agricultural waste. The reports finds that the U.S. has an abundance of biomass feedstock, and dedicated energy crops such as #switchgrass and #miscanthus that are grown exclusively for conversion into cellulosic ethanol to help the nation’s ambition to meet fuel needs while reducing greenhouse gas (GHG) emissions.

The U.S. is the only country currently working to promote the cellulosic ethanol market, says the report, with the U.S. Department of Energy (US DOE) providing grants to help companies establish a commercial-scale cellulosic ethanol plant. As a result, several companies have set up pilot and demonstration plants and a few commercial plants are expected to be commissioned in late 2013. The report also finds that the U.S. have also mandated the addition of 10% ethanol in gasoline fuel, setting steady domestic demand for the industry, while certain recently released cars are able to run on a 85 percent ethanol, 15 percent gasoline mix.

The report finds corn stover and wheat straw are among the most freely available types of feedstock used in countries producing cellulosic ethanol, and growing ethanol demand may see these nations utilizing the residue of their corn crop for ethanol production, creating a sizable market for agricultural waste. GlobalData expects that the growing feedstock demand will create a structured market, in which biomass feedstock prices will be set based on their ethanol yield and the prevailing trading price of ethanol.

Some EU countries such as France and Italy have cellulosic ethanol production infrastructure, but a limited supply of biomass feedstock. Growth of commercial production in these countries may fuel the need to import feedstock from nearby countries or expand production to other countries with ample feedstock availability. A few producers with upcoming commercial scale plants in the U.S. have already started signing agreements to procure agricultural residue and other kinds of cellulosic feedstock.

Global cellulosic ethanol is expected to increase from 14.25m gallons in 2012 to 412.25m gallons in 2020, with commercial production anticipated to take off on a large scale in late 2013 and 2014, thanks to major players adding substantial production capacity and new companies joining the market. The report finds that the U.S. is expected to retain its market dominance until 2020.