Biofuel Distribution

This report provides a status of the markets and technology development involved in growing a domestic bioenergy economy. It compiles and integrates information to provide a snapshot of the current state and historical trends influencing the development of bioenergy markets. This information is intended for policy-makers as well as technology developers and investors tracking bioenergy developments. It also highlights some of the key energy and regulatory drivers of bioenergy markets. This report is supported by the U.S. Department of Energy’s (DOE’s) Bioenergy Technologies Office (BETO), and, in accordance with its mission, pays special attention to the progress and development of advanced liquid transportation fuels from cellulosic and algal biomass.

The bioenergy economy engages multiple industrial sectors across the biomass-to-bioenergy supply chain—from agricultural- and forestry-based industries that produce biomass materials, to manufacturers and distributors of biomass-based fuels, products, and power, to the ultimate end-user markets. The breadth of this report focuses on activities that occur after the production of biomass.

After opening with a discussion of the overall size and composition of the bioenergy market, this report features two major areas: one detailing the two major bioenergy markets—biofuels and biopower—and another giving an overview of bioproducts that have the potential to enable bioenergy production.

The biofuels section is broken out by fuel type with sections on ethanol, biodiesel, and hydrocarbon fuels (gasoline, diesel, and jet fuel). Ethanol includes both conventional starch ethanol and cellulosic ethanol. This report covers the development of the conventional ethanol industry as a backdrop for emerging cellulosic ethanol production, and discusses challenges with absorbing new production into the market. Hydrocarbon fuels include the developing renewable hydrocarbon biofuels market. Finally, the report offers an overview of the renewable natural gas, biopower, and bioproducts markets.

In total, the information contained in this report is intended to communicate an understanding of portions of the U.S. bioenergy market.

Need to put description

In July 2016, the U.S. Department of Energy’s Bioenergy Technologies Office (BETO) released a request for information (RFI) to seek input from industry, academia, national laboratories, and other biofuels and bioproducts stakeholders to identify existing capabilities to produce lignocellulosic sugars and lignin for use by the research community. The purpose of this RFI is to develop a comprehensive list of suppliers who are willing and able to produce and sell cellulosic sugar and/or lignin for use by the research community.  

BETO has made this list of RFI responses available on its website, providing a table with the organization, location, feedstock, process, and capacity/quantity. Users can select and open each RFI response to obtain more details and read them in full. 

BETO intends to leave the RFI open indefinitely and will continue to collect and post responses.

For more information or to view the summary of RFI responses, visit http://energy.gov/eere/bioenergy/cellulosic-sugar-and-lignin-production-capabilities-rfi-responses.

The Biomass Energy Data Book is a statistical compendium prepared and published by Oak Ridge National Laboratory (ORNL) under contract with the Biomass Program in the Energy Efficiency and Renewable Energy (EERE) program of the Department of Energy (DOE). Designed for use as a convenient reference, the book represents an assembly and display of statistics and information that characterize the biomass industry, from the production of biomass feedstocks to their end use, including discussions on sustainability.

This is the fourth edition of the Biomass Energy Data Book which is only available online in electronic format. There are five main sections to this book. The first section is an introduction which provides an overview of biomass resources and consumption. Following the introduction to biomass, is a section on biofuels which covers ethanol, biodiesel and bio-oil. The biopower section focuses on the use of biomass for electrical power generation and heating. The fourth section is on the developing area of biorefineries, and the fifth section covers feedstocks that are produced and used in the biomass industry. The sources used represent the latest available data. There are also four appendices which include frequently needed conversion factors, a table of selected biomass feedstock characteristics, and discussions on sustainability. A glossary of terms and a list of acronyms are also included for the reader's convenience.

This 2016 Multi-Year Program Plan (MYPP) sets forth the goals and structure of the Bioenergy Technologies Office (BETO). It identifies the research, development, demonstration, and deployment activities the Office 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. This MYPP is intended for use as an operational guide to help the Office manage and coordinate its activities, as well as a resource to help communicate its mission and goals to stakeholders and the public.

The Federal Activities Report on the Bioeconomy has been prepared to emphasize the significant potential for an even stronger U.S. bioeconomy through the production and use of biofuels, bioproducts, and biopower. Bioeconomy activities have already touched on the interests of many federal agencies and offices. This report is intended to educate the public on the wide-ranging, federally funded activities that are helping to bolster the bioeconomy. Further, the report will highlight some of the critical work currently being conducted across the federal government that either supports or relates to the bioeconomy.

The federal government as a whole sees great potential in the nation’s abundant natural resources, the capacity for new and advanced technologies, and the entrepreneurial spirit of the American people. This potential offers the ability to triple the size of today’s bioeconomy by 2030—to over a billion tons of biomass. Through the Biomass Research and Development Board (Board), a new effort is being launched to fully develop this Billion Ton Bioeconomy.

The Board is already working to coordinate research and development federal activities concerning the biobased fuels, products, and power that are key pillars in the bioeconomy. The Board includes members from the Departments of Energy, Agriculture, Interior, Transportation, Defense, and the Environmental Protection Agency, the National Science Foundation, and the Office of Science and Technology Policy. With leadership across the administration, the Billion Ton Bioeconomy vision could grow the entire bioeconomy supply chain—through feedstock development and production, technology development, conversion, production of renewable chemicals and other biobased products, and marketing and distribution to alternative end use.

Expanding the bioeconomy in a sustainable manner will increase energy diversity and long-term security. It will provide additional economic, environmental, and social benefits, such as reduced greenhouse gas emissions, job growth, and responsible management of diverse sources of biomass and waste materials. Efforts will result in a greener, stronger nation with diverse, new economic sectors that enhance U.S. competitiveness.

Inside the report you will find:

• An overview of the Billion Ton Bioeconomy Vision
• Preliminary analyses of the expected benefits of a Billion Ton Bioeconomy
• A compendium of federal activities that currently support the bioeconomy
• Details on interagency activities that aim to grow the bioeconomy

The Path Forward:

As the United States continues to develop a diverse energy portfolio and transitions to a renewable, clean energy future, the federal government leads the way by working with academia, industry, and non-governmental organizations to provide the science, technology, and policy support to accelerate the deployment of new manufacturing facilities employing innovative processes and using biomass as a feedstock.

Fulfilling this vision will entail aligning the diverse goals, roles, science, technology, data, and tools of many stakeholders across both the public and private sectors for coordinated action that will lead to industrial innovation, increased manufacturing capability, new infrastructure, improvement in agriculture and forest productivity, management and output quality, and green workforce development.

The Board will continue to coordinate and enhance federal efforts—as well as garner collaboration from the government and its stakeholders—in a systematic effort to expand the sustainable production and use of biomass. To further understand the potential of the national bioeconomy, the Board will also be hosting a series of workshops and webinars aimed at gathering input from the public on numerous topics.

Find out more about this exciting new effort by checking out the release on biomassboard.gov.

The United States government has been promoting increased use of biofuels, including ethanol from non-food feedstocks, through policies contained in the Energy Independence and Security Act of 2007. The objective is to enhance energy security, reduce greenhouse gas (GHG) emissions, and provide economic benefits. However, the United States has reached the ethanol blend wall, where more ethanol is produced domestically than can be blended into standard gasoline. Nearly all ethanol is blended at 10 volume percent (vol%) in gasoline. At the same time, the introduction of more stringent standards for fuel economy and GHG tailpipe emissions is driving research to increase the efficiency of spark ignition (SI) engines. Advanced strategies for increasing SI engine efficiency are enabled by higher octane number (more highly knock-resistant) fuels. Ethanol has a research octane number (RON) of 109, compared to typical U.S. regular gasoline at 91–93. Accordingly, high octane number ethanol blends containing from 20 vol% to 40 vol% ethanol are being extensively studied as fuels that enable design of more efficient engines. These blends are referred to as high-octane fuel (HOF) in this report. HOF could enable dramatic growth in the U.S. ethanol industry, with consequent energy security and GHG emission benefits, while also supporting introduction of more efficient vehicles. HOF could provide the additional ethanol demand necessary for more widespread deployment of cellulosic ethanol. However, the potential of HOF can be realized only if it is adopted by the motor fuel marketplace. This study assesses the feasibility, economics, and logistics of this adoption by the four required participants—drivers, vehicle manufacturers, fuel retailers, and fuel producers. It first assesses the benefits that could motivate these participants to adopt HOF. Then it focuses on the drawbacks and barriers that these participants could face when adopting HOF and proposes strategies—including incentives and policies—to curtail these barriers. These curtailment strategies are grouped into scenarios that are then modeled to investigate their feasibility and explore the dynamics involved in HOF deployment. This report does not advocate for or against incentives or policies, but presents simulations of their effects.

The global indirect land use change (ILUC) implications of biofuel use in the United States of America (USA) from 2001 to 2010 are evaluated with a dynamic general equilibrium model.  The effects of biofuels production on agricultural land area vary by year; from a net expansion of 0.17ha per 1000 gallons produced (2002) to a net contraction of 0.13ha per 1000 gallons (2018) in Case 1 of our simulation.  In accordance with the general narrative about the implications of biofuel policy, agricultural land area increased in many regions of the world.  However, oil-export dependent economies experienced agricultural land contraction because of reductions in their revenues.  Reducing crude oil imports is a major goal of biofuel policy, but the land use change implications have received little attention in the literature.  Simulations evaluating the effects of doubling supply elasticities for land and fossil resources show that these parameters can significantly influence the land use change estimates.  Therefore, research that provides empirically-based and spatially-detailed agricultural land-supply curves and capability to project future fossil energy prices is critical for improving estimates of the effects of biofuel policy on land use.

Biomass is increasingly being considered as a feedstock to provide a clean and renewable source of energy in the form of both liquid fuels and electric power. In the United States, the biofuels and biopower industries are regulated by different policies and have different drivers, which impact the maximum price the industries are willing to pay for biomass. This article describes a dynamic computer simulation model that analyzes future behavior of bioenergy feedstock markets given policy and technical options. The model simulates the long-term dynamics of these markets by treating advanced biomass feedstocks as a commodity and projecting the total demand of each industry, as well as the market price over time. The model is used for an analysis of the United States bioenergy feedstock market that projects supply, demand, and market price given three independent buyers: domestic biopower, domestic biofuels, and foreign exports. With base-case assumptions, the biofuels industry is able to dominate the market and meet the federal Renewable Fuel Standard (RFS) targets for advanced biofuels. Further analyses suggest that United States bioenergy studies should include estimates of export demand in their projections, and that GHG-limiting policy would partially shield both industries from export dominance.

The petroleum-based transportation fuel system is complex and highly developed, in contrast to the nascent low-petroleum, low-carbon alternative fuel system. This report examines how expansion of the low-carbon transportation fuel infrastructure could contribute to deep reductions in petroleum use and greenhouse gas (GHG) emissions across the U.S. transportation sector. Three low-carbon scenarios, each using a different combination of low-carbon fuels, were developed to explore infrastructure expansion trends consistent with a study goal of reducing transportation sector GHG emissions to 80% less than 2005 levels by 2050.1 This goal was for analytic purposes only. These scenarios were compared to a business-as-usual (BAU) scenario and were evaluated with respect to four criteria: fuel cost estimates, resource availability, fuel production capacity expansion, and retail infrastructure expansion.
 
Initial evaluations of these four criteria enable consideration of screening-level questions about fuel infrastructure in the low-petroleum, low-carbon scenarios:
1. How do alternative fuel costs compare to conventional fuel costs?
2. Are low-carbon resources sufficient?
3. How does expansion of alternative fuel production capacity compare to conventional production capacity replacements, upgrades, and expansion?
4. How do costs of providing alternative fuel retail infrastructure compare to conventional retail infrastructure?
 
Although definitive comparisons are not possible in this screening study, results suggest that expansion of the retail infrastructure for alternative fuels may pose greater issues than fuel costs, resources, or production capacity. The study does not address market barriers and transition costs associated with the development of new advanced vehicle and low-carbon fuel markets, so fuel cost estimates do not reflect investment risks or projected fuel prices. However, an evaluation of each scenario suggests that the goal of a reduction of 80% in GHGs can be reached while maintaining total fuel costs that are ultimately lower than BAU fuel cost projections without imposing excessive demands on energy resources such as biomass, natural gas, or renewable electricity systems.
 
The amount of new fuel production capacity required [e.g., billions of gallons of gasoline equivalent energy (BGGE) per year] in the low-carbon scenarios is comparable to those for conventional fuels in the BAU scenario, despite the transition to different fuels, because fuel demand in the low-carbon scenarios is lower. Expansion of retail infrastructure, on the other hand, may prove challenging in terms of spatial coverage and sustainable business models for retail outlets. Suggestions in the study for further analysis call for improved cost estimates, an improved understanding of the influence of refueling infrastructure on consumer vehicle purchase decisions, exploration of the potential role of public-private partnerships in infrastructure planning and expansion, and spatial and temporal market and infrastructure expansion trends.