John Ferrell U.S. Department of Energy Office of the Biomass Program John.ferrell@ee.doe

1. 2006 ESS/SAES/ARD WorkshopBiomass & Bioenergy: A Western PerspectiveDOE Biomass ProgramSeptember 26, 2006 John Ferrell U.S. Department of Energy Office of the Biomass Program John.ferrell@ee.doe.gov

2. Presentation Outline • AEI Goals • What led to the Initiative? • Why Biofuels? • Specific Goals & Timeline • Efforts to Achieve AEI • 30x’30 Workshop • Interagency Collaborations: Posture Plan, R&D Board, Regional Feedstock Partnerships, USDA/DOE Renewable Energy Conference, EERE/OS Partnership • DOE R&D Efforts & Goals • DOE Deployment Efforts • Incentives

3. Keeping America competitive requires affordable energy.  And here we have a serious problem:  America is addicted to oil, which is often imported from unstable parts of the world.  The best way to break this addiction is through technology…. and we are on thethreshold of incredible advances… So tonight I announce…push for breakthroughs in two vital areas…change how we power our homesand offices,…changehow we power our automobiles. President’s Biofuels Initiative

4. Strong Support and Guidance • The President’s Goals of replacing 75% of Middle East Oil imports by 2025 and for research to make cellulosic ethanol production practical and competitive by 2012. • The Energy Policy Act of 2005 provides direction on program content as well as loan guarantee authorization for commercial scale demonstrations. • The President’s National Energy Policy includes multiple recommendations that support bioenergy. • The Biomass R&D Act of 2000 directs DOE and USDA to enhance and coordinate biomass R&D efforts. • The Energy Title (Title IX) of the Farm Bill provides support for increased use of biomass energy and products and for R&D.

5. Fossil Energy Requirements

6. Conversion of Available Feedstocks • “Billion Ton” study indicates that enough biomass is potentially available to displace > 30% of current U.S. petroleum consumption, with no impacts to food, feed, or export demand • But it requires variety of biomass types • Agricultural lands • Corn stover, wheat straw, soybean residue, manure, switchgrass, poplar/willow energy crops, etc. • Forest lands • Forest thinnings, fuelwoods, logging residues, wood processing and paper mill residues, urban wood wastes, etc.

7. Goals 2012 Goal Fund additional research in cutting-edge methods of producing ethanol, not just from corn, but from wood chips and stalks, or switch grass.  Our goal is to make this new kind of ethanol (cellulosic ethanol) practical and competitive within six years. 2030 Goal Replace 30% of our current gasoline consumption with biofuels. Planning Actions 30x30 Workshop: Gain industry input towards process to meet goals Posture Plan: Identify Federal actions across multiple agencies in meeting goals Analysis: Set intermediate targets for feedstocks & conversion processes to meet goals R&D: Eliminate barriers to goals Deployment: Make cellulosic technologies available in the market place Outreach: Gain public awareness & acceptance of cellulosic ethanol Goals in Response to the President’s AEI

8. 2020 2006 2025 2030 2010 2015 President’s Biofuels Initiative Timeline 2006: President Announces Biofuels Initiative (January 31, 2006) 2012: Make Cellulosic Ethanol Cost Competitive 2025: Replace More Than 75% of Current Oil Imports From the Middle East Initiative Goals 2030: Replace 30% of Current Gasoline Consumption with Biofuels • 2012 Cost Targets: • -Ethanol Production Cost of $1.07/gallon • Enzyme Cost of $0.10/gallon of Ethanol • Delivered Feedstock Cost of $35/dry ton Technical Targets Feedstock development to move from starch-based to cellulosic-based ethanol Feedstock development focus on pulp & paper mill residues, forest residues, & perennial energy crops Help industry build first-of-a-kind plants Cost-share industrial-scale validation of technology & economics Tools/R&D Focus Establish Regional Feedstock Partnerships Re-establish Thermochemical Platform

9. The Board is a panel consisting of Senior Level representatives responsible for ensuring coordination among the following agencies: U.S. Department of Agriculture (co-chair): Thomas Dorr, Under Secretary for Rural Development Department of Energy (co-chair): Alexander Karsner, Assistant Secretary of Energy Efficiency and Renewable Energy National Science Foundation:Dr. Bruce Hamilton, Director, Bioengineering and Environmental Systems Division Environmental Protection Agency:In transition Department of Interior:Johnnie Burton, Acting Assistant Secretary, Land and Minerals Management Office of Science and Technology Policy:Dr. Sharon Hays, Chief of Staff Office of the Federal Environmental Executive:Dana Arnold, Chief of Staff Department of Transportation (new):Dr. Ashok G. Kaveeshwar, Administrator, Research and Innovative Technology Administration Interagency Biomass R&D Board

10. Regional Biomass Energy Feedstock Partnerships • Developed in response to the President’s Biofuels Initiative. • Will facilitate the development of biomass resources on a regional basis in order to fulfill the potential contribution toward meeting the 1.3 Billion Ton Biomass Goal by conducting resource assessments by feedstock types and regions. • The pilot partnership developed was the Southeast Regional Partnership. First workshop held May 2006. • The North Central Regional Partnership is currently being developed. First workshop to be held August 2006. • Other Partnerships to follow over the next year. Oklahoma State will host the South Central Regional Partnership, Oregon State will host the Western Regional Partnership, and Cornell University will host the North East Regional Partnership.

11. National Steering Committee Includes Members From: • Sun Grant Initiative (Land Grant Universities) • Southeast: University of TN Knoxville • North Central: SD State University • Western: OR State University • North Eastern: Cornell University • South Central: OK State University • National Biomass State and Regional Partnership Organizations • Southern States Energy Board • Council of Great Lakes Governors • Western Governors’ Association • Coalition of North Eastern Governors • Pacific Regional Biomass Energy Partnership • USDA • DOE

12. Southeast Partnership Sustainable Agricultural Residues Sustainable Forestry Resources Sustainable Herbaceous Perennial Crop Development Sustainable Woody Crop Development Sustainable Feedstock Resource Economics & Engineering Analysis Communication & Information Coordination Policy Development & Analysis North Central Partnership Sustainable Agricultural Residues Working Group Sustainable Starch and Oil Seed Crop Commodities Working Group Sustainable Lignocellulosic Crop Development Working Group Sustainable Forestry Resources Working Group Sustainable Woody Crop Development Working Group Sustainable Feedstock Resource Economics & Engineering Analysis Working Group Communication & Information Coordination Working Group Policy Development & Analysis Working Group Environmental Interactions Working Group Feedstock Partnership Working Groups *Included members from the Noble Foundation and Oklahoma State University.

13. Regional Feedstock Partnership Workshop Results • Identified need to assess the Billion Ton study at the regional and local level • Identified need for adjustment to land use policies (i.e. 2007 Farm Bill) to include land for cellulosic crops • Identified feedstock types available in each region according to the working group categories (i.e. ag residues, herbaceous crops, forest resources, etc.), & in some cases what their contribution to the 30 by ’30 goal could be • In some cases, identified roles for participating members in follow-up to workshop objectives & outcomes • Identified need to develop a system/tool for sharing R&D results across all partners • Next steps: Pool resources across participating members to get this work done

14. USDA/DOE Advancing Renewable Energy Conference • Being hosted by USDA & DOE on October 10 – 12, 2006 in St. Louis, Missouri • Being held to further the AEI • Goal is to build necessary partnerships & strategies for hastening the commercialization of domestic, commercially viable renewable energy industries & distribution systems • For more information: http://www.technologyforums.com/6EN/

15. U.S. Department of Energy Office of Science Biomass to Biofuels Research Needs A Joint DOE Planning Workshop Office of Science Office of Biological & Environmental Research Office of Energy Efficiency & Renewable Energy Office of the Biomass Program www.doegenomestolife.org/biofuels/

16. Biomass to Biofuels Research Timeline Within 5 Years Within 15 Years Within 10 Years Systems - Integration Phase Technology Deployment Phase Research Phase • Creation of new generation of energy crops with enhanced sustainability, yield, & composition • Simultaneous breakdown of biomass to sugars & cofermentation of sugars via new biological systems • Enhanced substrate range, temperature & inhibitor tolerance, & capability to function in complex biorefining environments • Time scales that are economically viable • Devise sustainable, effective, and economical methods for cellulosic feedstock harvest, deconstruction, and conversion to ethanol • Enzymatic breakdown to 5- & 6- carbon sugars & lignin • Use of Thermo and Biochemical Conversion • Cofermentation of sugars to specified end products (i.e. ethanol) • Incorporate concurrently engineered energy crops & biorefineries tailored for specific agroecosystems • New & improved enzymes for breaking down biomass into sugars • Robust fermentation processes • Accelerate & simplify the end-to-end production of fuel ethanol • Approach theoretical conversion limits • Spur flexible biorefineries

17. Feedstock R&D Biochemical R&D Thermochemical R&D Products R&D Balance of Plant Pathways To Success Based on Billion Ton Study Fundamental R&D Development and Demonstration Deployment Grain Wet Mill Integrated Biorefineries Grain Dry Mill Oil Seeds and Crops Agricultural Residues Perennial Grasses Woody Energy Crops Pulp and Paper Mill Forest Products Mill

18. R&D Challenges for Feedstocks Harvest & Collection Mechanical Preprocessing Storage Transportation & Handling *Improved composition for greater product yield, optimized particle size, & optimized digestibility characteristics **Ethanol production in storage from sugars otherwise lost in treatment

19. R&D Challenges for Fermentation Feedstock Pretreatment Conditioning Enzymes Saccharification & Fermentation *Model value, slightly lower than metric value

20. R&D Challenges for Thermochemical Conversion Cleanup & Conditioning

21. Deployment Efforts • Commercial Demonstration of an Integrated Biorefinery System for Production of Liquid Transportation Biofuels, Biobased Chemicals, Substitutes for Petroleum-based Feedstocks and Products, and Biomass-based Heat/Power Solicitation • Issued in response to EPAct 2005 Section 932 • Closed August 10, 2006 • Approximately $53,000,000 is expected to be available in FY07 • Loan Guarantee • Announced by Secretary Bodman on August 7, 2006 • $2 billion in loan guarantees to help spur investment in projects that employ new energy technologies • For more information: http://www.doe.gov/news/3897.htm • Fueling Infrastructure • FreedomCAR and Vehicle Technologies Program solicitation: Refueling infrastructure projects that include new dispensing facilities, or additional equipment or upgrades and improvements to existing refueling sites for alternative fuel vehicles (AFV) • DOE Strategic Team on E85 Infrastructure: OBP, FEMP, FreedomCAR • Engage full range of skills within USDA & Land Grant System for commercial deployment of feedstocks

22. Current Status of Policies Supporting OBP