Government Support
The US Federal government is actively promoting the development of ethanol from cellulosic feedstocks as an alternative to conventional petroleum transportation fuels. For example, programs sponsored by U.S. Department of Energy (DOE) include research to develop better cellulose hydrolysis enzymes and ethanol-fermenting organisms, to engineering studies of potential processes, to co-funding initial ethanol from cellulosic biomass demonstration and production facilities. This research is conducted by various national laboratories,including the National Renewable Energy Laboratory (NREL), Oak Ridge National Laboratory (ORNL) and Idaho National Laboratory (INL), as well as by universities and private industry. Engineering and construction companies and operating companies are generally conducting the engineering work.
In May 2008, Congress passed a new farm bill that will accelerate the commercialization of advanced biofuels, including cellulosic ethanol. The Food, Conservation, and Energy Act of 2008 provides for grants covering up to 30% of the cost of developing and building demonstration-scale biorefineries for producing "advanced biofuels," which essentially includes all fuels that are not produced from corn kernel starch. It also allows for loan guarantees of up to $250 million for building commercial-scale biorefineries to produce advanced biofuels.
Using a newly developed tool known as the "Biofuels Deployment Model", Sandia researchers have determined that 21 billion US gallons (79,000,000 m3) of cellulosic ethanol could be produced per year by 2022 without displacing current crops. The Renewable Fuels Standard, part of the 2007 Energy Independence and Security Act, calls for an increase in biofuels production to 36 billion US gallons (140,000,000 m3) a year by 2022.
In January 2011, the USDA approved $405 million in loan guarantees through the 2008 Farm Bill to support the commercialization of cellulosic ethanol at three facilities owned by Coskata, Enerkem and INEOS New Planet BioEnergy. The projects represent a combined 73 million US gallons (280,000 m3) per year production capacity and will begin producing cellulosic ethanol in 2012. The USDA also released a list of advanced biofuel producers who will receive payments to expand the production of advanced biofuels. In July 2011, the US Department of Energy gave in $105 million in loan guarantees to POET for a commercial-scale plant to be built Emmetsburg, Iowa.
Read more about this topic: Cellulosic Ethanol Commercialization, Commercialization By Country, United States
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