DOE announces $786 million for third-generation biofuels
Department of Energy Secretary Steven Chu announced a huge, $786.5 million program to speed development and commercialization of biofuels today. The money comes from the American Recovery and Reinvestment Act and is intended for the following specific projects:- $480 Million Solicitation for Integrated Pilot- and Demonstration-Scale Biorefineries
- $176.5 Million for Commercial-Scale Biorefinery Projects
- $110 Million for Fundamental Research in Key Program Areas
- $20 Million for Ethanol Research
If you don't remember, Chu was a biofuel researcher before becoming Energy Secretary and announced plans to fast track loans to get DOE programs started quickly. In mid-April, Chu announced $41.9 million for the fuel cell industry.
[Source: EERE]
PRESS RELEASE:
Secretary Chu Announces Nearly $800 Million from Recovery Act to Accelerate Biofuels Research and Commercialization
May 5, 2009
New green jobs a benefit of effort to end dependence on foreign oil
WASHINGTON, D.C. - As part of the ongoing effort to increase the use of domestic renewable fuels, U.S. Secretary of Energy Steven Chu today announced plans to provide $786.5 million from the American Recovery and Reinvestment Act to accelerate advanced biofuels research and development and to provide additional funding for commercial-scale biorefinery demonstration projects.
"Developing the next generation of biofuels is key to our effort to end our dependence on foreign oil and address the climate crisis -- while creating millions of new jobs that can't be outsourced," Secretary Chu said. "With American investment and ingenuity -- and resources grown right here at home -- we can lead the way toward a new green energy economy."The DOE biomass program will leverage DOE's national laboratories, universities, and the private sector to help improve biofuels reliability and overcome key technical challenges, with the goal of creating third-generation biofuels like green gasoline, diesel, and jet fuels.
The $786.5 million in Recovery Act funding is a mix of new funding opportunities and additional funding for existing projects. It will be allocated across four main areas:
$480 million solicitation for integrated pilot- and demonstration-scale biorefineries
Projects selected under this Funding Opportunity Announcement will work to validate integrated biorefinery technologies that produce advanced biofuels, bioproducts, and heat and power in an integrated system, thus enabling private financing of commercial-scale replications.
DOE anticipates making 10 to 20 awards for refineries at various scales and designs, all to be operational in the next three years. The DOE funding ceiling is $25 million for pilot-scale projects and $50 million for demonstration scale projects.
These integrated biorefineries will reduce dependence on petroleum-based transportation fuels and chemicals. They will also facilitate the development of an "advanced biofuels" industry to meet the federal Renewable Fuel Standards.
$176.5 million for commercial-scale biorefinery projects
$176.5 million will be used to increase the federal funding ceiling on two or more demonstration- or commercial-scale biorefinery projects that were selected and awarded within the last two years.
The goal of these efforts is to reduce the risk of the development and deployment of these first-of-a-kind operations. These funds are expected to expedite the construction phase of these projects and ultimately accelerate the timeline for start up and commissioning.
$110 million for fundamental research in key program areas
The Biomass Program plans to use $110 million to support fundamental research in key program areas, distributed in the following manner:
* Expand the resources available for sustainability research through the Office of Science Bioenergy Research Centers and establish a user-facility/small-scale integrated pilot plant ($25 million);
* Create an advanced research consortium to develop technologies and facilitate subsequent demonstration of infrastructure-compatible biofuels through a competitive solicitation ($35 million); and
* Create an algal biofuels consortium to accelerate demonstration of algal biofuels through a competitive solicitation ($50 million).
This funding will help to develop cutting-edge conversion technologies, including generating more desirable catalysts, fuel-producing microbes, and feedstocks.
$20 million for ethanol research
The Biomass Program is planning to use $20 million of the Recovery Act funding in a competitive solicitation to achieve the following:
* Optimize flex-fuel vehicles operating on high octane E85 fuel (85 percent ethanol, 15 percent gasoline blend);
* Evaluate the impact of higher ethanol blends in conventional vehicles; and
* Upgrade existing refueling infrastructure to be compatible with fuels up to E85.
For more information on these and other Recovery Act related funding opportunities, visit energy.gov/recovery.
Reader Comments (Page 1 of 1)
Tim 1:36PM (5/05/2009)
So, how do you get in these guys "good graces" and join the club so I can have some of your free money too?
I guessing that it requires a few million to grease the right congressional palms.
Justice is blind.... my ass!
Reply
Ian Bruce 5:09AM (5/06/2009)
Hi Tim,
It took me $250 to attend a conference in San Francisco; plus $97.20 for a round-trip ticket on Virgin America; and another $110 for a night at a nice boutique hotel near the Embarcadero.
It also helps to have a sufficiently compelling technology, a good team in place, and a realistic plan for development and/or commercialization. Nothing less.
That's how you get in their "good graces".
Tim 9:09AM (5/06/2009)
Ian,
Please tell me "thank you" for my generous contribution to your company. After all, it wasn’t “gov’t money” it was MY tax money!
By the way, how much stock can I expect to receive and when do you send out the annual dividend checks?
Thanks.
Ian Bruce 3:37PM (5/06/2009)
Depends on whether your state is a net contributor, or net receiver of federal funds. Alabama, for example, receives $1.65 from DC for every tax dollar paid in -- Louisana takes back almost $2 for every dollar it sends to Washington in taxes.
I'm from California, which gets back less than 79¢ for each federal dollar paid in. Following your logic, when can I expect my check from those other states?
Tohe 3:02PM (5/05/2009)
This information is too ambiguous to be meaningful. How are we supposed to evaluate our return investment on these projects? There are no concrete goals as far as I could tell.
Reply
Ian Bruce 6:27AM (5/06/2009)
Basic research is part and parcel to innovation. Many times, there is no definable ROI to these efforts -- but they can, and have, lead to incredible breakthroughs in science and industry.
If you want the administration's take on this, go to the following link. I highly recommend watching the whole thing -- but if you insist on a quick answer, fast forward to 26:18
http://www.youtube.com/watch?v=52OXVQQtdYA
3PeaceSweet 3:08PM (5/05/2009)
Hmmm, large conventional and non conventional natural gas reserves.
Existing infrastructure already in place.
Large livestock industry.
Huge potential for fast growing grasses.
Technology already well established in Europe.
Why is biogas for transport not a major part of US alternative fuel stratergy?
Reply
Ian Bruce 5:30AM (5/06/2009)
Not a DOE issue. Try USDA and the NRDC.
The USDA Rural Business-Cooperative Service (RBS) is now accepting applications for grants and loan guarantees from agricultural producers and rural small businesses that want to purchase renewable energy systems and/or improve their energy efficiency. Eligible systems include anaerobic digesters that use animal waste and other substrates to produce thermal or electrical energy.
BTW: Making Biogas recovery profitable requires operations of at least 500 cows or 2,000 swine.
https://www.nrdc.org/energy/renewables/biogas.asp
stas peterson 5:57PM (5/27/2009)
The Greens have discovered that Corn Ethanol is both an Energy loser, and a CO2 molecule from corn ethanol is no different from a CO2 molecule from an oil well despite all the sophistry. The Loons eve needful for a patent, and wrong answer, need to keep the faithful churned up and donating. They have shifted their aim to other plants as a source for bio-fuels. As if that would make the slightest difference.
But in the meantime we have Mr. Chu really wasting government money to duplicate the stupidity of corn ethanol with another type of growing plant or two. The results will be the same, in the end.
Don't cry. Its only YOUR tax money poured down a similar but different rathole...
Reply