Department of Energy Announces Up to $36 Million to Support Development of Drop-In Biofuels and Bioproducts

As part of the Obama Administration's efforts to cut foreign oil imports, U.S. Secretary of Energy Steven Chu today announced up to $36 million to fund six small-scale projects -- in California, Michigan, North Carolina, Texas, and Wisconsin -- to advance the technology improvements and process integration needed to produce drop-in advanced biofuels and other valuable bio-based chemicals.

The projects aim to improve the economics and efficiency of biological and chemical processes that convert non-food biomass feedstocks into replacements for petroleum-based feedstocks, products, and fuels. These selections further the Obama Administration's strategy for accelerating research and development that will lead the way toward affordable, clean alternatives to fossil fuels and diversify our nation's energy portfolio.

"Projects such as these are helping us to diversify our energy portfolio and decrease our dependence on foreign oil," said Secretary Chu [pictured]. "Together with our partners, the Department is working hard to expand the clean-energy economy, creating jobs in America and providing sustainable replacements for the fuels and products now provided primarily by petroleum."

The funding announced today will help diversify DOE's Biomass Program portfolio to include a breadth of fuels and chemicals beyond cellulosic ethanol and ensure that the Department's research and development on biofuels remains integrated and strategic.

The following projects were selected:

* General Atomics Fusion Energy Research [up to $2.0 million -- San Diego, Cal.]: The proposed project aims to reduce energy, capital, and operational cost for algal fermentation processes. This will increase production of algal oils, which can be further refined into advanced biofuels.

* Genomatica Inc. [up to $5.0 million -- San Diego, Cal.]: This project will deliver an engineered organism and optimized fermentation process to enable the conversion of cellulosic sugars to the valuable industrial chemical, 1,4-butanediol [BDO]. Such technology will enhance the commercial profitability of integrated biorefineries by enabling co-production of high-volume fuels and the higher-margin commodity chemical, BDO.

* Michigan Biotechnology Institute -- AKA MBI International [up to $4.3 million -- Lansing, Mich.]: The project will focus on improvements to a pretreatment process, which provides a stable, conversion-ready intermediate of consistent quality at a cost and in a format compatible with long-term storage and ease of transfer between multiple modes of transportation.

* HCL CleanTech Inc. [up to $9.0 million -- Oxford, N.C.]: This project will develop and demonstrate process improvements for pretreatment, conversion to sugars, and subsequent conversion of those sugars to fuels. The complete integrated process will use concentrated hydrochloric acid hydrolysis to convert pre-extracted biomass feedstocks, including wood waste, into fermentable sugars, and then further convert the sugars into diesel products.

* Texas Engineering Experiment Station [up to $2.3 million -- College Station, Tex.]: The focus of this project will be on developing a novel pretreatment for cellulosic biomass feedstocks using a combination of chemical and mechanical processing. Once the cellulosic feedstock has been pretreated it can be converted into biofuels, including hydrocarbons.

* Virent Energy Systems Inc. [up to $13.4 million -- Madison, Wis.]: The overarching objective of this project is to develop a fully integrated process that can efficiently and cost effectively convert a cellulosic biomass feedstock, such as corn stover, to a mix of hydrocarbons ideally suited for blending into jet fuel.

Final funding amounts are subject to negotiation.

About DOE's Biomass Program
DOE's Biomass Program works with industry, academia, and national laboratory partners on a balanced portfolio of research in biomass feedstocks and conversion technologies.

For more information on DOE's Biomass Program, visit the Biomass Program website: http://1.usa.gov/BiomassEERE.

GoodBiz113's Take
DOE's just-announced Biomass Program investments will boost American competitiveness in the biofuels industry and lower the cost of clean, renewable energy. Further, they'll generate much-needed jobs.

Chalk it up as yet another win-win endeavor by the Obama Administration -- one that holds far-reaching potential for decades to come.

SOURCE: U.S. Department of Energy's Office of Energy Efficiency & Renewable Energy [EERE]
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House Passes Energy Efficiency Package; Small Business Committee Bill Included to Support Innovations in the Energy Sector

Yesterday, the U.S. House passed H.R. 3221, the New Direction for Energy Independence, National Security and Consumer Protection Act, legislation that provides incentives for the production of clean energy, aids our nation’s farmers in producing the next generation of America’s fuel, and supports energy efficient technology. It also creates an environment for creating jobs, stimulating the economy and helping small businesses.

The historic legislation includes a number of measures that had passed through the House Small Business Committee in May to help entrepreneurs cope with rising energy costs, become more resourceful in their usage, and continue developing new technologies.

“This is a major step forward for improving our environment and helping this nation’s small businesses to lead the way in that charge,” said Chairwoman Nydia Velázquez [D-N.Y.]. “This legislation includes critical provisions that will empower entrepreneurs to create a more eco-friendly environment, and help achieve the overall goals of H.R. 3221 to spur investment in biofuels, new energy technologies, innovation and job creation.”

Small businesses have been particularly affected by the rising cost of fuel, as any additional expense is more difficult for them to absorb than their corporate counterparts. According to a survey conducted by the National Small Business Association [NSBA], over 60 percent of small businesses use vehicles on a daily basis, and a majority of those who use vehicles travel more than 50 miles a day. This has forced many entrepreneurs to consider scaling back their daily operations and reducing their staff in an effort to save money.

“The rising cost of energy has hit small businesses hard,” Chairwoman Velázquez noted. “This bill focuses not only on supply, but it also focuses on usage. These two factors are key in helping small businesses to manage increasing energy prices, and in becoming more resourceful.”

A critical piece of the New Direction for Energy Independence, National Security and Consumer Protection Act, is H.R. 2389, the Small Energy Efficient Business Act [SEEBA], introduced by Subcommittee Chairman, Rep. Heath Shuler [D-N.C., pictured above], and approved by the full House Small Business Committee this spring. The bill provides loans, education and investment to small firms to help them become more energy independent, thereby helping them take advantage of their role as leaders in the search for solutions.

H.R. 2389 also promotes good energy practices by modifying existing Small Business Administration [SBA] programs to provide more flexible loan terms to small firms that are developing or utilizing new technologies.

SEEBA stimulates investment in the production of alternative sources and product development by expanding the Small Business Investment Companies [SBICs]. The SBA will be required to develop a strategy to educate small firms about being resourceful, and establishes an educational program for the Small Business Development Centers [SBDCs]. Additionally, the Renewable Fuel Capital Investment Program [RFCIP] will be created, which will help small firms develop renewable energy sources. These measures will play a vital role in the reaching the goals of H.R. 3221.

“Small businesses are leaders in developing new technologies to spur efficiency, and under H.R. 3221, entrepreneurs will be able to continue on that path,” said Chairwoman Velázquez. “The Small Energy Efficiency Business Act will give the support needed to foster these types of advances, while also encouraging innovation and job creation. I am proud that this legislation is a vital component of the monumental energy package that the House has passed today.”

Sources: Congressional Budget Office, GovTrack.us, U.S. House Small Business Committee, WashingtonWatch.com
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