Biofuels are promoted in the United States through aggressive legislation, as one part of an overall strategy to lessen dependence on imported energy as well as to reduce the emissions of greenhouse gases (Office of the Biomass Program and Energy Efficiency and Renewable Energy, 2008). For example, the Energy Independence and Security Act of 2007 (EISA) mandates 36 billion gallons of renewable liquid transportation fuel in the U.S. marketplace by the year 2022 (U.S. Government, 2007).
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The Biomass Program is one of the nine technology development programs within the Office of Energy Efficiency and Renewable Energy (EERE) at the U.S. Department of Energy (DOE). This 2011 Multi-Year Program Plan (MYPP) sets forth the goals and structure of the Biomass Program. It identifies the research, development, demonstration, and deployment (RDD&D) activities the Program will focus on over the next five years, and outlines why these activities are important to meeting the energy and sustainability challenges facing the nation.
Funded from the U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Bioenergy Technologies Office.
Estimates of vehicle miles traveled (VMT) are used extensively in transportation planning for allocating resources, estimating vehicle emissions, computing energy consumption, and assessing traffic impact. The estimates used in these applications usually come from different sources. For an objective comparison of VMT estimates from different methods, the principles and assumptions supporting the methods and the potential sources of error associated with the methods must be clearly understood.
The U.S. Department of Energy (DOE) is promoting the development of ethanol from lignocellulosic feedstocks as an alternative to conventional petroleum-based transportation fuels. DOE funds both fundamental and applied research in this area and needs a method for predicting cost benefits of many research proposals. To that end, the National Renewable Energy Laboratory (NREL) has modeled many potential process designs and estimated the economics of each process during the last 20 years. This report is an update of the ongoing process design and economic analyses at NREL.
A new addition to the growing biofuels resources list at AgMRC is a cellulosic ethanol feasibility template developed by agricultural economists at Oklahoma State University (OSU). The purpose of the spreadsheet-based template is to give users the opportunity to assess the economics of a commercial-scale plant using enzymatic hydrolysis methods to process cellulosic materials into ethanol. The OSU Cellulosic Ethanol Feasibility Template can be downloaded and modified by the user to mimic the basic operating parameters of a proposed ethanol plant under a variety of production conditions.
This paper examines the possibilities of breaking into the cellulosic ethanol market in south Louisiana via strategic feedstock choices and the leveraging of the area’s competitive advantages. A small plant strategy is devised whereby the first-mover problem might be solved, and several scenarios are tested using Net Present Value analysis.
This paper introduces a spatial bioeconomic model for study of potential cellulosic biomass supply at regional scale. By modeling the profitability of alternative crop production practices, it captures the opportunity cost of replacing current crops by cellulosic biomass crops. The model draws upon biophysical crop input-output coefficients, price and cost data, and spatial transportation costs in the context of profit maximization theory. Yields are simulated using temperature, precipitation and soil quality data with various commercial crops and potential new cellulosic biomass crops.
This article addresses development of the Illinois ethanol industry through the period 2007-2022, responding to the ethanol production mandates of the Renewable Fuel Standard by the U.S. Environmental Protection Agency. The planning for corn-based and cellulosic ethanol production requires integrated decisions on transportation, plant location, and capacity.
When the lignocellulosic biofuels industry reaches maturity and many types of biomass sources become economically viable, management of multiple feedstock supplies – that vary in their yields, density (tons per unit area), harvest window, storage and seasonal costs, storage losses, transport distance to the production plant – will become increasingly important for the success of individual enterprises. The manager’s feedstock procurement problem is modeled as a multi-period sequence problem to account for dynamic management over time.
Understanding the Growth of the Cellulosic Ethanol Industry, D. Sandor and R. Wallace, National Renewable Energy Laboratory, S. Peterson The Peterson Group, Technical Report, NREL/TP-150-42120 April 2008
Ethanol production doubled in a very short period of time in the U.S. due to a combination of natural disasters, political tensions, and much more demand globally from petroleum. Responses to this expansion will span many sectors of society and the economy. As the Midwest gears up to rapidly add new ethanol manufacturing plants, the existing regional economy must accommodate the changes.
This study quantifies the impact of increasing ethanol production on wholesale/retail gasoline prices employing pooled regional time-series data from January 1995 to March 2008. We find that the growth in ethanol production kept wholesale gasoline prices $0.14/gallon lower than would otherwise have been the case. The negative impact of ethanol on retail gasoline prices is found to vary considerably across regions. The Midwest region has the biggest impact at $0.28/gallon, while the Rocky Mountain region had the smallest impact at $0.07/gallon.
In the last decade biofuel production has been driven by governmental policies. This article reviews the national strategy plans of the world’s leading producers. Particular attention is dedicated to blending targets, support schemes and feedstock use. Individual country profiles are grouped by continent and include North America (Canada and the US), South America (Argentina, Brazil, and Colombia), Europe (the European Union, France, and Germany), Asia (China, India, Indonesia, Malaysia, and Thailand) and Australia.
In 1997, eight E85 (85% ethanol; 15% gasoline) fuel pumps were installed at separate retail fuel stations in Minnesota to provide high-blend ethanol fuel to flexible fuel vehicle (FFV) owners. FFVs capable of utilizing gasoline, E85, or any mixture of the two, were beginning to be mass produced by vehicle manufacturers and distributed through fleet and retail sales nationwide. These state-level E85 efforts were part of larger federal and state policies and programs promoting the use of alternative transportation fuels to displace traditional gasoline and diesel fuel, which continue today.
Enhanced environmental quality, fuel security, and economic development along with reduced prices of ethanol-gasoline blends are often used as justifications for the U.S. federal excise tax exemption on ethanol fuels. However, the possible effect of increased overall consumption of fuel in response to lower total price, mitigating the environmental and fuel security benefits, are generally not considered. Taking this price response into account, the optimal U.S. ethanol subsidy is derived.