Sweetwater Energy Closes Cellulosic Deal

Sweetwater Energy has announced a 15-year commercial agreement with Front Range Energy to produce cellulosic ethanol at Front Range’s current corn ethanol facility located in Weld County, Colorado. Sweetwater will install its process to convert local biomass, such as crop residues, energy crops, and woody biomass, into sugar that will then will converted to ethanol.

FrontRangeEnergyLLC_logo“It’s very exciting to be an early adopter of Sweetwater’s technology and to bridge that gap from grain to cellulosic ethanol,” said Dan Sanders Jr., Vice President of Front Range Energy. “Supplementing our corn with this sugar allows us to displace some of the volatility of the corn market, with the goal of moving a higher and higher percentage of our production to cellulosic. We’ve had great success fermenting Sweetwater’s sugar, and from a business standpoint, we have great confidence in Sweetwater’s management team.”

Sweetwater will place one of its cellulosic facilities near the Front Range site and will deliver enough refined monomeric sugar for Front Range to produce up to 3.6 million gallons of ethanol per year during the initial phase. As the project ramps up, economics will ultimately determine the pace and volume with which Front Range’s corn ethanol facility will migrate to Sweetwater’s cellulosic feedstocks.

Sweetwater Energy Logo“To say we’re enthusiastic about this relationship with Dan and the whole Front Range team is an understatement,” said Arunas Chesonis, Chairman and CEO of Sweetwater. “They’re a progressive team looking to stay ahead of the curve, and that’s a very rewarding mindset to have in a company you’ll be working with for the next 15 years. We’re going to kick this off by replacing about 7 percent of the corn currently processed, and as our partnership grows and we see how well both parties are benefiting from the cellulosic ethanol production, we’ll increase the amount of cellulosic material and really open up the cellulosic markets to Front Range.”

In December 2012, Sweetwater was awarded a patent for the manufacture and deployment of distributed pretreatment units designed for the extraction of sugars from any cellulosic feedstock for the production of ethanol.

What Cellulosic Biofuel Ruling is Not

dinneen-capitolThe American Petroleum Institute hailed today’s circuit court ruling to “vacate the 2012 cellulosic biofuel standard” as a “decision to end mandate for non-existent biofuels.” Renewable Fuels Association president and CEO Bob Dinneen says it is not.

“The mandate for cellulosic ethanol is not ended by this decision by any way shape or form,” said Dinneen, calling API’s characterization “the height of deception.”

Dinneen explains that the court decision simply means that EPA has to have better justification for cellulosic biofuel target numbers under the Renewable Fuel Standard (RFS). “They couldn’t create an incentive for investment,” he said. “All they can do is make a clear headed decision on what is likely to be produced.”

Ethanol Report PodcastIn this edition of the Ethanol Report, Dinneen talks about how the petroleum industry is very afraid of the potential of cellulosic biofuels to take over a greater percentage of the gasoline market. “They’re not happy about having lost 10% of the barrel,” Dinneen says. “They are apoplectic about the potential of losing even more of it to cellulosic ethanol and other biofuels.”

Listen to or download the Ethanol Report here: Ethanol Report on Cellulosic Court Ruling

Subscribe to “The Ethanol Report” with this link.

Mixed Messages for Advanced Biofuels

There are some mixed messages coming from the D.C. Circuit today as they ruled to vacate the 2012 cellulosic biofuel standard, yet affirmed the 2012 advanced biofuel standard as part of the Renewable Fuel Standard (RFS). The biofuels industry reacted to the decisions and noted that although the court vacated the cellulosic standard, it also rejected API’s argument that EPA was required to follow the U.S. Energy Information Administration’s projections in setting its own. The court also rejected API’s argument that EPA was not entitled to consider information from cellulosic biofuel producers in setting its projection, finding that cellulosic producers were an “almost inevitable source of information” Project Libertyfor EPA. According to several biofuel organizations, these were important decisions that give EPA flexibility in setting cellulosic biofuel volumes in the future.

The court vacated the cellulosic biofuel standard because it believed that EPA had impermissibly set the volume with the objective of promoting growth in the industry, rather than simply making an accurate prediction. The biofuels organizations strongly disagree with this characterization — EPA did not determine a reasonably achievable volume and then inflate it, they say. Rather, it set the volume based on the best information available to it at the time. In the end, EPA is free to reinstate the volumes that it had established, as long as the information available at the time would support the agency’s conclusion that those volumes were reasonably achievable. The court’s decision does not now require, or permit, EPA to set volumes based on hindsight.

The D.C. Circuit also affirmed the EPA’s decision not to reduce the advanced biofuel volume, categorically rejecting API’s arguments that EPA must be support its decision not to reduce the applicable volume of advanced biofuels with specific numerical projections.

In a joint statement, the biofuel organizations stated that, “although we disagree with the court’s decision vacating the 2012 cellulosic volumes, today’s decision once again rejects broad-brushed attempts to effectively roll back the federal Renewable Fuel Standard.”

The biofuel organizations include the Advanced Biofuels Association (ABFA), Advanced Ethanol Council (AEC), American Coalition for Ethanol (ACE), Biotechnology Industry Organization (BIO), Growth Energy, and Renewable Fuels Association (RFA). They are reviewing the court’s decision and assessing next steps in the matter.

Iowa Renewable Fuels Marketing Awards

John Gilroy from Harney Oil Company in Coralville, Iowa and Jim Becthold from Linn Coop Oil Co. in Marion, Iowa have been awarded the 2013 Secretary’s Biodiesel and Ethanol Marketing Awards. Iowa Secretary of Agriculture Bill Northey presented the awards that were created by the Iowa Department of Agriculture and Land Stewardship to recognize fuel marketers that have gone above and beyond in their efforts to promote and sell renewable fuels.

Iowa Ag Secy Bill Northy Photo IPTV“Both winners have gone to great lengths to make biodiesel and ethanol more available to Iowa drivers and I appreciate the effort and investment they have made to promote these home-grown fuels,” said Northey. “Iowa is fortunate many retailers like Harney Oil Company and Linn Coop Oil Company that make the extra effort to ensure that the fuels we produce in this state are available to customers.”

Becthold, who won the Ethanol Marketing Award, was close to becoming the first retailer in the country to sell E15 last summer, but couldn’t get the fuel. But with perseverance, he didn’t achieve his goal of becoming first to sell the fuel blend in America, but he did become to first retailer in Iowa to sell E15. An avid supporter, he is funding a consumer ethanol marketing campaign and is also promoting the benefits of E15 to other retailers across the country.

Gilroy won the Biodiesel Marketing Award for his efforts to increase availability of biodiesel in the state. His facility has a heated storage tank, allowing the sale of 100 percent biodiesel year round and this past year, he expanded his tank. In 2012, he enabled marketers to sell nearly 12 million gallons of biodiesel to Iowans.

The Secretary’s Ethanol and Biodiesel Marketing Awards were designed to recognize businesses that market the renewable fuels they have available through creative efforts including, but not limited to: hosting special events highlighting their renewable fuels, development of creative signage, initiation of new advertisements or marketing efforts, and dramatically increase renewable fuel availability.

Marginal Lands Well Suited for Biomass

alternative_energy Photo Credit Phil Robertson MSUAccording to an article in Nature, researchers with Michigan State University (MSU) show that marginal lands can serve as prime real estate for meeting alternative energy production goals. By growing mixed-species cellulosic biomass, marginal lands could annually produce up to 5.5 billion gallons of ethanol in the Midwest alone.

“Understanding the environmental impact of widespread biofuel production is a major unanswered question in the U.S. and worldwide,” said Ilya Gelfand, lead author of the paper. “We estimate that using marginal lands for growing cellulosic biomass crops could provide up to 215 gallons of ethanol per acre with substantial greenhouse gas mitigation.” According to Gelfand, this is the first study to provide an estimate for greenhouse gas benefits, and an assessment of the total potential of these lands to produce significant amounts of biomass.

Researchers from MSU, the Pacific Northwest National Laboratory and the University of Maryland used 20 years of data, focused on 10 Midwestern states, from the National Science Foundation (NSF) Kellogg Biological Station (KBS) Long-Term Ecological Research (LTER) site. Kellogg Biological Station is one of 26 such NSF LTER sites in ecosystems around the world from grasslands to deserts, coral reefs to tundra.

“The study underscores the critical role that long-term basic research plays in determining the optimum balance between economic prosperity and environmental sustainability,” said Saran Twombly, program director in NSF’s Division of Environmental Biology. “Long-term basic experiments suggest that wise management of marginal lands, rather than wholesale conversion of valuable agricultural lands, could contribute significantly to a sustainable future.” Continue reading

Nebraska Student Awarded NEC Scholarship

Wade Hunt, a native of Sterling, Nebraska, has been awarded the National Ethanol Conference (NEC) Scholarship. Wade began his university academic career at the University of Nebraska-Lincoln as a chemical engineering student. From there, he was accepted as a research internship for the Undergraduate Creative Academic Research Experience (UCARE) program. He also selected to participate in NASA’s Jet Propulsion Laboratory program, where he worked on proof of concept research for an extractor system. While in this position, he was able to perform analogous tests to degrade a common, large protein in aqueous solution. His senior project is to develop a packed bed reactor for the production of biodiesel. Wade is a firm supporter of renewable fuel resources and believes great strides need to be taken to further develop current and future processes to secure the world’s energy needs.

RFA Conference Logo[2]The opportunity to attend the NEC Conference: Driving Forward, in Las Vegas February 5-7, 2013 was made available by the Renewable Fuels Association (RFA) and the Renewable Fuels Foundation (RFF).  The focus of the foundation is toward academia, industry and public policy makers as the industry addresses issues related to new users, new feedstocks and new technologies that will impact the future of ethanol. This is the fourth consecutive year the scholarship has been available to students in higher education with a focus on renewable fuels and intending to pursue a career in the industry. Wade will receive complimentary registration to the conference, providing him an invaluable experience and opportunity to connect with hundreds of ethanol leaders, policy makers and experts in the renewable fuels industry.

“The NEC presents an extraordinary opportunity to those eager to learn about the industry, and we are proud to present another commendable student the chance to join us this year,” said Mike Jerke, RFF Chairman and General Manager of Chippewa Valley Ethanol Company. “Ethanol’s best will be on hand to showcase the bright future that lies ahead of the industry, and we hope Wade will leave even more encouraged by what our speakers have to offer.”

This year’s NEC program will highlight critical regulatory, marketing and policy issues facing the ethanol industry. Experts will speak to the current market situation, and address how we as an industry can continue to grow through innovation, new technologies and feedstocks, and by developing more diverse and global markets. Keynote speakers include USDA Secretary Tom Vilsack, Linda DiVall, President and CEO of American Viewpoint, RFA President and CEO Bob Dineen will give the state of ethanol report, among others.

BIO, Fuels America Talk 2013 RFS

As the ethanol industry awaits what the U.S. Environmental Protection Agency (EPA) will release for targets for this year’s Renewable Fuels Standard, members of the Biotechnology Industry Organization (BIO) and Fuels America expressed their support for the green fuel.

ericksonBIO‘s Executive Vice President, Brent Erickson, said today in a news conference that they are expecting EPA’s release of the 2013 renewable volume obligations, very soon, calling them “vitally important to companies commercializing advanced biofuels,” and this is expected to be a pivotal year for cellulosic and advanced biofuels.

“Stability in the RFS is crucial to investment [in the advanced biofuels sector],” Erickson explained, adding that “competing industries” would like to preserve their long-standing choke-hold on the fuel market in this country. “While other industry groups are spending large amounts of money to undermine or destabilize the RFS, it’s time for Congress to reaffirm its commitments to this successful policy.”

Standlee2Christopher G. Standlee, Executive Vice President, Abengoa Bioenergy, said that the road to commercialization of any new technology is not short or inexpensive, but the RFS “provides a roadmap to increased energy independence and national security, with a long-term vision for the U.S. fuel industry through 2022.” He also highlighted Abengoa’s efforts in the Midwest to be on the leading edge of the new technology, citing its 25 million gallon cellulosic ethanol plant in Kansas under construction and expected to be running by the end of the year.

robeyOthers on the news conference called the RFS a bold, aggressive vision, with Wade Robey, a board member of POET-DSM Advanced Biofuels, saying Congress took the leap of faith without having the commercialization of cellulosic ethanol in place when it was passed. “It is clear [the EPA's] volume targets have been optimistic; however, it is that optimism that has spurred many projects to be under construction and coming online soon across the United States. It has sped the development of this clean, domestic energy source,” prompting even foreign investors to jump into U.S. production, Robey said.

koninckxJan Koninckx, Global Business Director for Biorefineries, DuPont Industrial Biosciences, said America is now leading the world in renewable fuels because of the RFS. And he warns that abandoning this successful policy is not the way to go. “When we listen to those who want to repeal the RFS, what we hear is essentially an industry organization that wants the United States to turn its back on new technology … and keep the [U.S.] dependent on a 20th century technology. Turning our backs on innovation is certainly not in the tradition of the U.S. or the company that I am with.”

Listen to all of their opening remarks here: BIO/Fuels America News Conference

Pompeo Bill Would Increase Petroluem Favoritism

Offshore Oil RigU.S. Representative Mike Pompeo (R-Kan) has introduced a bill dubbed the “Energy Freedom and Economic Prosperity Act.” The bill eliminates tax credits for new industries attempting to compete with petroleum while maintaining billions in taxpayer subsidies for Big Oil. Furthermore, the bill would immediately eliminate every tax credit for alternatives to petroleum, including cellulosic ethanol, biodiesel and wind. Yet the bill only eliminates two petroleum tax credits (marginal well incentives and enhanced oil recovery credits) that only go into effect when crude oil prices are well below current levels.  Ironically, despite the immediate elimination of all things alternative, the oil tax subsidies would not be eliminated until the end of 2014.

“Rep. Pompeo’s bill ought to be named the ‘Petroleum Monopoly and Big Oil Prosperity Act,’” said  Monte Shaw, executive director of the Iowa Renewable Fuels Association (IRFA). It’s hard to take seriously the Congressman’s comment that we can’t afford ‘taxpayer-backed subsidies to companies that don’t need them’ when his bill does not eliminate a single oil subsidy currently in use. Rather the bill leaves intact oil subsidies that date back literally 100 years for the most profitable industry in the history of the world. If the question is, ‘When can Big Oil stand on its own two feet without a taxpayer crutch?’ then Rep. Pompeo’s answer is apparently ‘not yet.’”

If the bill were to be passed as is, the petroleum tax subsidies that currently cost taxpayers billions each year including:

  • Percentage depletion allowance
  • Intangible drilling costs expensing
  • Deduction for tertiary injectants
  • Exception from passive loss limitations for oil and gas
  • Oil and gas excess percentage over cost depletion

“This bill simply tilts government policy even further in favor of petroleum,” continued Shaw. Continue reading

2013 Waste to Biofuels Market Analysis

According to a recent white paper from Renewable Waste Intelligence, there are two key issues facing the biofuels industry: consumers and vehicle manufacturers must be persuaded to adopt new, more environmentally friendly gasoline blends; and advanced biofuels manufacturers must demonstrate commercial capability and play catch-up to Environmental Protection Agency targets for production.

With feedstock prices high for several feedstocks, including corn for ethanol and soybeans for biodiesel, many producers are looking for alternative feedstocks, or to move into “advanced” biofuel production. An interesting phenomena is that as waste feedstocks are more readily adopted for biodiesel production, such as yellow grease, animal fats, waste oil, etc. are used, the feedstock prices increase.

Screen Shot 2013-01-09 at 11.18.44 PMThis is one reason, according to the white paper, that producers are looking to lower-cost feedstocks and a burgeoning market is waste. The white paper cites 2005 EPA estimates more than 246 million tons of municipal solid waste (MSW) was generated with 133 million tons sent to landfills, 79 million tons recylcled and 33.4 million tons used to generate energy. Of this, millions of tons that is ordinarily sent to landfills would make a suitable feedstock.

In many cases, local governments pay for waste to be shipped to a landfill, the average is $42 per ton. However, by citing a biofuels facility near municipal processing facilities, biofuel producers can benefit from undercutting these costs while achieving “negative” feedstock costs, according to the paper. Some analysts have noted that MSW prices could eventually increase, as happened with other waste feedstocks, technological barriers make it unlikely for this to happen any time over the next decade.

The quest for the best technologies and most affordable feedstocks will continue for many years. Many of these issues will be discussed during the 3rd Annual Municipal Solid Waste to Biofuels and Bioproducts Summit being held in Orlando, Florida February 20-21, 2013. Click here for more information and to register online.

AFPM Updates RFS Cellulosic Waiver Petition

The American Fuel & Petrochemical Manufacturers (AFPM) kicked off the year with a petition to the Environmental Protection Agency (EPA) to waive the 2012 cellulosic biofuel mandate. The organization says the biofuel industry has repeatedly failed to produce the cellulosic biofuel needed to meet the government mandate under the Renewable Fuel Standard (RFS).

AFPM LogoOn January 9, 2012, EPA announced the applicable volumetric requirements for various renewable fuels under the RFS and established the 2012 regulatory requirement for cellulosic biofuel at 10.45 million ethanol-equivalent gallons. According AFPM, they relied upon EPA’s most recent data reported through October 2012 as the basis for their position. AFPM said available information indicated just 20,069 gallons of cellulosic biofuel actually produced, all of which was exported generating no Renewable Identification Numbers (RINS), or credits for refiners to use to comply with the federal biofuel mandate. Citing the lack of domestic supply, AFPM President Charles T. Drevna called EPA’s timeline for introducing cellulosic biofuel into the fuel supply market as “ambitious” and “unrealistic.”

EPA has since updated its data and announced that in November 2012 cellulosic production was an additional 1,741 ethanol equivalent gallons of cellulosic diesel fuel. In response, Drevna said, “I stand corrected. November’s data reporting that the biofuel industry produced 1,741 ethanol equivalent gallons of cellulosic diesel shows excellent progress toward complying with the EPA’s 2012 mandate of 10.45 million ethanol equivalent gallons of cellulosic biofuel. Six thousand additional months at this production level and the country will finally achieve EPA’s 2012 mandated volumes.”

Several cellulosic production facility went online during 2012 with several more expected to begin production during 2013. In addition, Project Liberty and DuPont’s cellulosic ethanol biorefineries, which will both use corn stover and cobs as feedstock, are expected to be in production by mid-2014.

Pacific Adopts Edeniq’s Cellunator Technology

Pacific Ethanol logoPacific Ethanol is implementing yield enhancing technology at its ethanol facility in Stockton, California. The company is adopting Edeniq’s Cellunators technology to boost ethanol yields by increasing available starch for conversion. In addition to expected improvements in ethanol yield, the installation of Cellunators technology makes available the adoption of Edeniq‘s Pathway technology integrating the Cellunator with proprietary enzymes to convert the cellulosic fraction of the corn kernel to ethanol, which enables a conventional plant to potentially produce cellulosic ethanol.

Neil Koehler, the company’s president and CEO, said, “Our agreement with Edeniq for its Cellunators technology demonstrates our commitment to improving efficiencies at the plant level and positions us to produce advanced biofuels within a corn ethanol plant. We expect this technology to increase yields and improve overall plant profitability.”

Now is the Time to Invest in Renewables

Faegre Baker Daniels logoThe renewable industry remains abuzz about the American Tax Payer Relief Act that included the extension and modification of energy tax provisions. The tax extenders make investing in the renewables industry and in energy efficiency technologies a good move. Why? The firm of Faegre Baker Daniels LLP put together a brief overview of several key provisions that aid the industry for the next year and beyond.

Electricity Generation:

  • Production Tax Credit (PTC) — is a per-kilowatt hour incentive for the generation of electricity from qualified, renewable sources. The wind PTC was extended through 2013. In addition, the trigger for eligibility was changed to the start of construction of the facilities instead of the production of the electricity which significantly extends the use of the credit. The Treasury Department and the Internal Revenue Service will issue rulemakings clarifying this important change. Finally, the law amends the definition of municipal solid waste facilities to remove recyclable paper as an eligible feedstock.
  • Investment Tax Credit in Lieu of Production Tax Credit — Solar facilities can currently qualify for an investment tax credit of 30 percent of the cost of investment when a facility is placed in service. The law enables other renewable generation facilities to opt for this investment tax credit as opposed to the PTC mentioned above.
  • Indian Country Coal Production Credit — The law extends a provision that enables Indian tribes to qualify for a PTC equal to $2 per ton of coal sourced through their land through the end of 2013.

Energy Efficiency:

  • Energy Efficient Improvements to Existing Homes (25C) — The tax credit for installing energy efficient improvements to existing homes — such as improved HVAC units, windows, furnaces, and heat and water pumps — was extended through 2013 and is capped at $500. The law also updated the standards that such appliances would need to achieve to be eligible for the incentive.
  • New Energy Efficient Homes Credit — The law extends through 2013 the tax incentive for the production of energy efficient homes. To be eligible, new homes must achieve a 30 percent or 50 percent improvement over heating or cooling energy usage of a comparable residence. The level of efficiency determines the value of the credit.
  • Energy Efficient Appliance Credit — The tax credit for U.S.-manufactured, energy-efficient appliances was extended through 2013. This credit includes refrigerators, dishwashers and clothes washers. Continue reading

DOE Awards Novozymes $2.5M

Corn Stover Photo Credit Joanna SchroederThe U.S. Department of Energy (DOE) has awarded Novozymes an award of up to $2.5 million to find new and more efficient enzymes for turning corn stover into fuel for cars and trucks. The specific project that was awarded funds by the DOE is called ‘SynTec,’ and is a two-year collaborative project between Novozymes and MBI. The companies will screen natural enzyme diversity for the best performing enzymes. Each enzyme combination will then be tested on pretreated agricultural waste that can first be converted into sugars and then into bio-based products and advanced biofuels.

According to Novozymes, many chemical-based industrial processes have inherent drawbacks from a commercial and environmental point of view. These drawbacks can be nearly eliminated with enzymes:

  • Enzymes can be used in mild conditions such as moderate temperatures and pH levels.
  • Only small amounts of enzymes are needed in order to carry out chemical reactions on an industrial scale.
  • Enzymes reduce the impact of manufacturing on the environment by reducing the use of chemicals, water and energy, and the subsequent generation of waste.

Novozymes’ work will support DOE’s focus on research, development and demonstration efforts to achieve affordable, scalable and sustainable advanced biofuels. According to the company, it has already reduced the cost of enzyme production for biofuels by 90 percent. Once the new screening process is proven, it can be used to rapidly develop tailored cost-effective enzyme solutions for specific industrial biorefineries. This is the third time Novozymes has partnered with the D.O.E. for bioenergy enzyme development.

Sweetwater and Ace to Produce Cellulosic Ethanol

A cellulosic sugar producer in New York has signed a deal with an ethanol plant in Wisconsin to begin commercial production of cellulosic ethanol.

Sweetwater Energy signed a long-term commercial agreement with Ace Ethanol to generate cellulosic ethanol at the ACE corn ethanol facility for up to 16 years.

sweetwaterAccording to Sweetwater officials, the company’s “patented, decentralized process will convert locally available cellulosic, non-food biomass, such as crop residues, energy crops, and woody biomass into highly fermentable sugar, which Ace will ferment into ethanol. The entire contract has a total potential value in excess of $100 million, and requires a minimal capital outlay by Ace Ethanol while stabilizing Ace’s feedstock cost over the life of the agreement.”

“Ace Ethanol has been bench testing Sweetwater’s cellulosic material for some time and we’re confident that this project will be commercially profitable,” says Neal Kemmet, President of Ace Ethanol. “With Sweetwater, we’ll move from 100% corn to a combination of corn starch and 7% cellulosic sugar as our feedstocks.”

“This is a very exciting time for the industry, and we couldn’t be more pleased to have aligned Sweetwater with Ace,” says Jack Baron, President and COO of Sweetwater. “Our patented, decentralized sugar-production model is designed to let us work in tandem with a refiner’s existing infrastructure, which fosters strong collaboration on both sides. Furthermore, our refined sugars can be used for biochemical or bioplastics production, giving Ace diversification options in the future. Ace is a progressive industry leader located near affordable biomass; they are financially successful and constantly incorporating proven new technologies to maintain their leadership position.”

Sweetwater also announced today that they have been issued a patent for the “manufacture and deployment of distributed pretreatment units designed for the extraction of sugars from any cellulosic feedstock for the production of ethanol.” Officials say the process allows Sweetwater to deploy its cellulosic sugar conversion facilities in a “hub and spoke” fashion, providing broad scale diversity for cellulosic ethanol production that takes full advantage of economic and capacity constraints surrounding cellulosic biomass. “This patent is a major breakthrough for the future of cellulosic ethanol,” says Arunas Chesonis, Chairman and CEO of Sweetwater. “The patent protects the first technology to support a viable economic model for scaling the conversion of cellulosic biomass into highly fermentable sugar and subsequently, ethanol. It will mean a great deal to the US corn ethanol industry, and the profitable future of biofuel production worldwide.”

Cellulosic Biofuels Progress Report

RFA AECThe Advanced Ethanol Council has just released a detailed look at the progress made towards the commercial deployment of advanced cellulosic biofuels.

The Cellulosic Biofuels Industry Progress Report profiles production facilities and projects across the country and producing nations around the world. According to the report, all countries that were profiled are working toward developing production capacity in the U.S. to meet the Renewable Fuel Standard (RFS).

The new data includes each facility’s path to commercial deployment, capacity, feedstock and more, demonstrating that notwithstanding the global recession, the cellulosic biofuel industry is coming on line.

“It was just five years ago that Congress called for the aggressive deployment of cellulosic biofuels to reduce U.S. dependence on foreign oil. We are pleased to report that the industry is breaking through at commercial scale, and is well on its way to becoming a major player in the American fuel mix,” said Brooke Coleman, Executive Director of the Advanced Ethanol Council (AEC). “This rapid progress is due to the Renewable Fuel Standard and to Secretary Vilsack’s and the Obama Administration’s leadership on the issue, ensuring the policy has remained stable and allowing investors to feel confident about committing the capital necessary to take the industry to scale.”

“Much has been made about the slow development of cellulosic ethanol,” added Bill Brady, CEO of Mascoma Corporation and Chairman of the AEC. “This report should put all that to rest. This is the cleanest, most innovative liquid fuel in the world, and the United States is poised to lead the development of this game-changing industry.”

The report points to the industry’s enormous potential. According to the Sandia National Lab, the U.S. could produce 75 billion gallons per year of cellulosic biofuels without displacing food and feed crops, or more than half of the 134 billion gallons of gasoline consumed by the U.S. in 2011. Continue reading