Bioenergy and the BioProducts National Initiative

Presentation by Robert Harris, Department of Energy, Energy Efficiency and Renewable Energy, September 29, 2000 at the Renewable Energy Roundup in Fredericksburg, Texas.

Bio: Robert Harris was Director of the Nebraska Energy Office for eight years. He joined DOE in 1999.

Overview: The US government's goal is to triple the use of biobased products by the year 2010 through the Biobased Products and Bioenergy Initiative helping transform the US economy from one based on geology (petroleum and coal) to one based on biology (plant materials). "Biorefineries" and other strategies will generate billions of dollars for farmers, create employment opportunities in rural communities, and reduce dependance on imported oil. See www.bioproducts-bioenergy.gov for more information.

Presentation: There is $18 million in funding available for bioenergy projects. New solicitations will be posted on the website in November. Anything you can make out of a barrel of oil you can make out of a ton of biomass. The US is the Saudi Arabia of carbohydrates. You can even make junk mail into energy.

President Clinton issued an Executive Order to triple bioenergy by the year 2010. The profits may likely be in the chemicals you can make from the process.

The chemical companies have already set a goal of 10% of the basic chemical building blocks from biomass by 2020 and 50% by 2050. Cargill Dow are making a $300 million addition to their ethanol plant in Nebraska to make biodegradeable plastics. Other products from biomass may be corn-based polymers, soy based two cycle engine oils, catalytic upgrades, chemicals from lignocellulose, etc.

The EPA and DOE and Agriculture entities are meeting next week. The Farm Bureau and the oil companies have even come around on this.

There are stacks of lab analysis from respected laboratories that say that you get more energy out of ethanol than it takes to produce it.

There are now 1 ½ million cars on the road in the US that will run E85 fuel (85% ethanol, 15% gasoline). The producers get credits for making these cars. It only costs the manufacturers $200 more per car to produce a flex-fuel car. However, there is a lack of fueling sites.

ETBE (ethanol based) may replace MTBE, since MTBE has been banned.

Williams Oil and Gas out of Oklahoma has more than 100 million gallons in ethanol plants in partnership with farmers. This may be a new trend. and source of financing.

Micki Nellis, October 2, 2000