Joseph A. Dunn, Ph.D. Special Advisor to the Under Secretary

1. Extension’s Role In Renewable Energy and AgricultureThe Pennsylvania State UniversityNovember 15, 2007 Joseph A. Dunn, Ph.D. Special Advisor to the Under Secretary Research, Education, and Economics Mission Area And Executive Director, National Agricultural Research, Extension, Education and Economics Advisory Board USDA

2. U.S. Department of Agriculture

3. Research, Education, and Economics

4. The National Agricultural Research, Extension, Education, and Economics (NAREEE) Advisory Board. • Provides advice to the Secretary of Agriculture, agricultural colleges and universities and certain members of Congress on top priorities and policies for food and agricultural research, education, extension and economics. • Includes 31 Members, each of which represent a specific category of U.S. agricultural stakeholders, as mandated by Congress. • The Board – • Holds regional and national stakeholder listening sessions • Develops consolidated advice in the form of reports and recommendations based on stakeholder input that is vital to the current and future success of food, forestry, and agricultural programs. • Consults with appropriate agricultural committees of the U.S. Congress

5. NAREEE Advisory Board. • 2007 Reports and Recommendations • Specialty Crops • Germplasm • Water Quality and Quantity • Bioenergy and Bioproducts • Food Safety • Farm Bill • Relevancy and Adequacy of Funding • National Agriculture Library • 2008 Reports and Recommendations • Organic Agriculture • Extension and Rural Development

6. Biofuels: A New Paradigm for Agriculture • Policy • Why now? • Initiatives • Goals • Markets • “Feed and Food vs Fuel” • Research • Feedstocks • Conversion • Sustainability

7. Why Now? • Environmental concerns • Transportation uses 67% of crude oil (C02, NOx, SOx) • Economics • $100 barrel crude • Surge of new jobs in EtOH/biodiesel industry • Enhance rural economies • National Security • We produced 46% of our own oil supply in in 2006 • 38% in 2010

8. Top World Oil Consumers (US has only 5% of world’s population) (million barrels per day)

9. World Oil Reserves by Country(Total = 1.1 Trillion Barrels) Source: DOE/EIA, International Energy Outlook 2006

10. Products Made From a 42 U.S. Gallon Barrel of Crude Oil

11. More Than Gasoline. . . • Pesticides • Fertilizers • Irrigation • Our food storage, production, and transportation systems are all dependent on oil

12. Energy Policy Act of 2005. 2006 State of the Union Address. “Change how we power our automobiles” • Advanced battery technologies – plug-in hybrids • Hydrogen fuel cells by 2020 • Make cellulosic ethanol practical within 6 years “Change how we power our homes and offices” • Clean Coal • Nuclear Energy • Renewable Energy

13. 20 in 10 • 2007 State of the Union Address further emphasized alternative fuels • Increase supply of renewable and alternative fuels • Set Alternative Fuels Standards(AFS) at 35 billiongallonsper year by 2017 • Nearly 5X the current Renewable Fuels Standard for 2012 • 15% of projected annual gasoline use in 2017 • Increase vehicle efficiency • Reform and modernize the Corporate Average Fuel Efficiency (CAFE) standards • 5% of projected annual gasoline use in 2017

14. Agricultural Energy Conservation Practices Already Underway • Crop Residue Management • Nutrient Management • Irrigation Management • Precision Agriculture • Pesticide Management • Prescribed Grazing • Windbreaks andShelter Belts

15. Impact of Conservation Pracrices on Annual Fuel Usage • Use of gasoline and diesel fuel in agriculture has dropped 40% since 1973 • # gallons of fuel to produce 1 ton of grain has decreased 59%

16. Indirect Energy Conservation • Doubling the application of manure-based nitrogen could save agriculture approximately $1.2 billion worth of natural gas each year. • Substituting manure for commercial fertilizer can reduce fertilizer costs as much as $85 per acre

17. How Will the U.S. Become More Energy Self-sufficient? • Multiple approaches • Short-term • Ethanol, biodiesel, hybrid electric • Improve energy efficiency • Maintain and enhance the diversity of current supplies • CONSERVE! • Intermediate-term • Cellulosic ethanol • Nuclear • Long-term • Hydrogen fuel cells • Hydrogen fusion

18. U.S. Ethanol Capacity Growing Rapidly.(Current production is at 7 Billion Gallons. Will be13 Billion by 2009)

19. To Meet Current Demand, We are Producing More! 2007 Corn Crop is 26% larger in 2007 than 2006

20. Ethanol’s Impact on Crop Sector • Corn • Higher prices • Reduced exports and domestic use • Lower stocks • Increased acreage • Soybeans • Lower acreage for competing crops, particularly soybeans • Reduced exports, domestic use, and stocks • Higher prices

21. Other Effects of Higher Corn Prices • Higher corn feeding costs • Prices for red meats, poultry and eggs are expected to rise

22. Next Generation Bioenergy: Advantages of CELLULOSIC BIOMASS • Wide variety of feedstocks • Significant replacement of fossil energy • Multiple conversion processes and products • Higher performance for energy balance & GHG reductions • Participation across all U.S. regions

23. Current Availability of Biomass From Agricultural Lands(Currently194 Million Tons. Need 1 Billion to Replace 30%!)

24. Biomass diverse feedstock: Many advantages; but also challenges…

25. Current Process and Cost Challenges of Cellulosic Ethanol Key processing cost elements (%): Biomass Feedstock 33 Feed handling 5 Pretreatment/conditioning 18 Enzymatic hydrolysis 12 Enzyme production (Cellulase) 9 Distillation and solids recovery 10 Wastewater treatment 4 Boiler/Turbogenerator (net 4%) 4 Utilities 4 Storage 1 Pretreatment and biological elements – key to cost Source: NREL (2006)

26. Significant cost reductionsfrom recent biotech advances in enzyme technology Source: Russo (2006)

27. Biomass-to-bioenergy: Many conversion processes and marketable products

28. Where Does Agriculture Fit Within the Energy Picture for the U.S.? • Producing crops and residues to make biofuels and energy • Using agricultural lands as alternative energy sites

29. USDA’s Role in Renewable Energy • Research • Developing technologies to turn crops, wastes, and residues into biofuels • Using biotechnology to develop new bioenergy crops • Creating biobased products that reduce petroleum use • Developing technologies to increase production and improve efficiency • Education/Extension • Training and deploying highly skilled workforces • Transferring experimental results to practice • Rural Development • Renewable Energy Systems and Energy Efficiency Improvements Program • Helping farms produce and save energy • Energy estimators for irrigation, nitrogen, and tillage

30. USDA/REE Energy Strategy Coordination • BRDi Board and Advisory Committee • NAREEE Advisory Board • USDA Energy Council • The Biobased Products and Bioenergy Coordination Council (BBCC) • REE’s Agricultural Bioenergy and Bioproducts Research, Education and Economics Council (ABBREE) • REE’s “Energy Team” • Joe Dunn • Jim Fischer • Stan Johnson • REE’s Energy Science and Education Plan

31. Extension’s Role • 4-H Energy Curricula • Working with State Energy Offices bringing new technologies to communities • Katrina recovery—ensuring housing rebuilt in the area is energy efficient • 21st century farms showcase energy crop potential and farm conservation of energy

32. Opportunities for Extension • Work with DOE on codes and direct efficiency measures for residents and builders. • Assist in developing regional biofuels feed stocks • Assist in the marketing of biofuels • Conduct state-wide renewable fuels education • Conduct state wide educational programs for potential investors in biofuel facilities • Develop programs to assist in upgrading housing and other facilities for energy conservation and efficiency • Conduct joint programs with the Experiment Stations and National Labs (both USDA and DOE) bringing the technologies from research to the State’s citizens

33. Desired Outcomes • Improve national security and the U.S. trade balance • Help America transition to renewable sources of energy and other goods • Realize important environmental benefits • Realize significant, new, sustainable economic opportunities for rural America • Realize secure sources of energy for rural America

34. Energy crop research Developing new plant varieties for biofuels feedstocks Ethanol Processing Developing new microbes and enzymes for conversion Developing valuable co-products from ethanol production Biodiesel Processing Quality and performance Other Methane from manure Thermo-chemical and biological conversion of biomass to hydrogen On-farm and remote renewable energy systems USDA Bioenergy Research(REE, RD and NRC Mission Areas)

35. USDA’s Bioenergy Research Objectives • Develop and deploy production and conversion technologies • Develop and deploy renewable energy technologies to farmers • Improve efficiency in agricultural and forestry operations

36. Research Approaches: Short-term • Research to: • Increase generation of renewable energy in rural communities • Improve the existing, commercial technologies for converting biomass to bioenergy and bioproducts • Promote the integrated biorefinery concept of biofuels and bioproducts coproduction • Improve the energy efficiency of agricultural and forestry operations

37. Research Approaches: Mid-term • Research to enable commercial deployment of new technologies which significantly expand production of • Bioethanol • Biodiesel • Biobutanol • Biopetroleum • Commercially deploy value-added co-products that arise from these processes.

38. Research Approaches:Long-term • Research to acquire and exploit fundamental scientific knowledge to develop technologies for producing future fuels and bioproducts from biomass

39. Cell Wall Initiative • National and international effort • Using genomics to understand and manipulate genes that control cell wall content and synthesis • Developing and modifying biofeedstock

40. New Energy Crops • Switch Grass • Field Peas • Barley • Alfalfa • Fescue • Miscanthus • Sugar Cane • Giant Reed • Agricultural Wastes Giant soybeans for bioenergy

41. Bioenergy From Manure • Biochemical • Maximize the production of biogas via anaerobic digestion • Thermochemical • Gasification and pyrolysis technologies to produce methane and/or synthesis gas

42. Conversion Research(Biological and Thermochemical) Biorefinery • Processes • Organisms • Product separation • Efficiency

43. Eastern Regional Research Center, Wyndmoor, Pennsylvania • Decrease the cost of fuel-ethanol and biodiesel • Develop new, high value industrial products and cost efficient processing technologies

44. National Center for Agricultural Utilization Research, Peoria, Illinois • Metabolic engineering technologies for conversion processes • Identifying and introducing potential alternative crops • Using biocatalysts to develop novel products from traditional and new crops

45. Western Regional Research Center, Albany, California • Genetic engineering of industrial use plants • Conversion and processing technologies • Creating new enzymes

46. Ensuring Sustainability • Optimal crop yields with minimal inputs • On-farm energy sources • Sustainable energy from agriculture • Feedstock production • Waste water treatment technologies

47. Co-products • Research to: • Develop new and valuable co-products • Improve quality and functionality • Co-products for: • Food • Feed • Biobased industrial

48. Major Bioenergy Projects Funded by USDA • Genetic Engineering of Yeast for Co-Fermenting all 5 Cellulosic Sugars to Ethanol • Genetic Engineering of Cellulose Biosynthesis in Trees • Gasification and fermentation technologies to produce ethanol and chemicals • Recycling of energy, chemicals, and materials from agricultural processing wastes • Development of an aviation-grade ethanol • Biodiesel Fuel Education Program

49. U.S. Forest Service • Develop integrated systems for small-diameter trees, forest residues, and woody crops • Reduce costs and improve utilization • Develop innovations in new products, conversion processes, and commercialization

50. Conclusions • Energy security = economic and national security • Biofuels offer agriculture and forestry a tremendous economic opportunity • Expansion is only possible with achievements on multiple fronts—higher crop yields, more acres planted to energy crops, alternative feedstocks, higher value co-products, and more efficient conversion and distribution systems for both feedstocks and biofuels. • Research, education and Extension are vital to our success • The use of biotechnology will be key