Advanced BioFuels USA

By Danilo Gusmão de Quadros* (Advanced Biofuels USA)  Imagine a world without non-renewable energy sources, where we just use sun, wind, and biomass to generate our electricity for industries and homes, and fuel for transportation. Is it a dream? I do not think so. We have walked a rough road full of uncertainties, but this will be the only way to reach the real sustainable way of life.

In the last week of March, we had an earthquake in Orlando, Florida, provoked by a meeting of the leaders of the Advanced Biofuels Association, American Biogas Council, Algae Biomass Organization, Biomass Power Association, Biomass Thermal Energy Council, Pellet Fuels Institute, and the Industrial Pellet Association, representing the strength of the biomass industry sector. 
Different approaches marked this session, from accomplishments to complaints. The toughest tone was from Mike McAdams, president of the Advanced Biofuels Association, which has been facing obstacles since U.S. EPA proposed lowering the 2014 Renewable Fuel Standard volume obligation due to the discrepancy between current gasoline consumption and what was anticipated in the Energy Independence and Security Act in 2007 (http://www.epa.gov/otaq/fuels/renewablefuels/documents/420f13048.pdf).
In McAdam’s words, the year  2013 was frustrating to the industry, with reservations and concerns about EPA regulation and policy; industry portfolio development for advanced biofuels; the contradiction between the huge markets and policy in the RPS (Renewable Portifolio Standard); lack of educational projects and programs; and relocation of money to finance plants.
On the other hand, the Farm Bill ($881 million over five years, including authorizations and funding of programs such as the Biomass Crop Assistance Program and Rural Energy for America Program), federal funding support for the US Department of Energy’s Bioenergy Technology Office and defense biofuels initiative (Farm-to-fleet http://www.usda.gov/wps/portal/usda/usdamediafb?contentid=2013/12/0237.xml&printable=true&contentidonly=true, which incorporates the acquisition of biofuel blends into regular Department of Defense domestic solicitations for jet engine and marine diesel fuels) were  good starting points this year.
Low carbon solutions and carbon friendly initiatives with advanced biofuels production and utilization are necessary to reduce the carbon footprint of the transportation sector, currently responsible for 28% of greenhouse gases (GHG) emissions. (http://www.epa.gov/climatechange/ghgemissions/sources/transportation.html)  California policy (www.arb.ca.gov/fuels/lcfs/lcfs.htm) is a good example for low carbon fuels, but it is not repeated at the same level in federal policy. For more details, listen to McAdams’s interview below.
Optimism permeated most other talks, especially evidenced by pellet industry success with three million metric tons of pellets exported last year.
For the first time, the International Biomass Conference and Expo moved to the south; a wise decision of BBI International, not just for the pleasant weather, but also because the home of Mickey Mouse (Florida) is number one in biomass power generation in the USA.
The conference was strong and complete in each detail, with pre-conference, awards, exposition, general and concurrent session, posters, bonus panel, and technical tours, stuffed with time and places for attendees to interact and network. The attendees, who came from 41 countries, 48 states and eight Canadian provinces, could get updated content from 136 speakers. In gross level, biomass utilization could be divided into power/heat generation or biofuels. In this paper, the second point will be approached.

In the pre-conference, 170 fortunate participants had two options for deep discussions: pellet supply chain or bioenergy project development, in which I participated. The federal and state programs to raise money, how to manage risks, viability, building a bankable project, hot opportunities, and feasibility studies were the main subjects. The importance of these applied topics is undeniable, being addressed directly by experienced people. Many of the decisions converge into one issue, feedstock, because there are lots of risks involved, such as: availability to the project, future competitors, logistic impacts, and, finally, prices.
The awards were a good idea brought from the Fuel Ethanol Workshop & Expo, also organized by BBI International, to recognize leaders in the bioenergy sector for their accomplishments. The “Excellence in Bioenergy Award” went to the Alliance for Green Heat (http://www.forgreenheat.org), for advocating for the biomass industry through educational projects divulgating technology of efficient stoves and boilers. The “Groundbreaker of the Year Award” went to Abengoa Bioenergy (www.abengoabioenergy.com) for work converting a variety of cellulosic feedstock into advanced biofuels. Learn more by listening to an interview with Christopher Standlee, vice-president of Abengoa Bioenergy below.
The conference presented four concurrent sessions: Pellets & Densified Biomass; Biomass Power & Thermal; Biogas & Landfill Gas; Advanced Biofuels & Biobased Chemicals. In this last track, we had the opportunity to get updated information about private and public research, industry establishment, concerns and possibilities. A close look at the early settlements on the frontier of advanced biofuels and biochemicals; harvest, supply chain and feedstock practices; biomass storage and pretreatment; alternative feedstocks; and finally biological conversion and pyrolysis were the topics debated in 24 presentations.
In a commercial scale plant, the technology price to convert cellulosic feedstock into biofuels has dropped. Today, it is possible to achieve operational costs of $2.00/gallon of ethanol, very competitive. The cost to obtain biofuel through pyrolysis is also competitive in pilot plants, with $0.75/gallon of profit.
Partnerships between farmers and companies to provide feedstock is a business model  to generate new opportunities for profit in the agriculture sector. About feedstocks, it is necessary to reduce the risk and to equate the logistic issue. Some aspects are important to have a feasible project, such as: type of feedstock, yield, quality, storage, distance, and cost. Of course, the pathway to convert biomass into bioenergy as well as the variety, yield, and price of co-products obtained in the process, affect the choices.
Overall, only the poster session did not measure up to the rest of the conference. Understanding that this conference had a broad theme, there will be some ways to improve it in the coming years.
The Expo had more than 200 exhibitors, mainly in pellet and power/heat generation. Vendors successfully participated, networked and conducted business.
One thing is undeniable: biomass is the key to more sustainable development. To reach a world free from non-renewable sources of energy, we have a hard and long journey. When the uncertainties come, we have to go ahead with faith, because the results will come in the long-term. Day by day things become clearer. The last report of the National Climate Assessment about the climate change impacts in the U.S. released by the White House (http://nca2014.globalchange.gov) indicated brutal heat waves, devastating floods, rising seas, and raging wildfires as some of few effects of global warming. New rules to curb carbon emission are expected and the way that the US produces electricity and fuels might be changed.
* Dan Quadros is a Research Scholar at the University of Florida and Volunteer at Advanced Biofuels U.S.A.

Interview with Mike McAdams:  Do you want to know more about the current situation of the advanced biofuels industry, biofuels policy, relationships between biofuels and carbon emission, main challenges, and fuel prices? Listen to the interview with Mike McAdams, president of the Advanced Biofuels Association, conducted by Dan Quadros.
The Advanced Biofuels Association (http://www.advancedbiofuelsassociation.com) is focused on helping America transition to a low carbon economy.  Its nearly 40 member companies have the skills and knowledge to build better fuels that will enhance energy security, representing a wide range of technologies, feedstocks, and molecules within the advanced biofuels industry. It supports and advocates for public policies that are technology neutral, utilize sustainable feedstocks, and offer subsidy parity to ensure all viable advanced biofuels can compete with the benefit of a level playing field.
 
1 – What is the importance of advanced biofuels development for the U.S.A. today and tomorrow?

2 – Today we have consolidated the ethanol industry. Why do too few gas stations offer ethanol (E85); why are there too few flex fuel cars on the road?

3 – Observing the consumers’ profile, people pay more for environmentally respectable and socially just products, like some organic product in supermarkets for example. Regarding biofuels, could we expect the same pattern of behavior?

4 – What is the impact of natural gas prices on the advanced biofuels industry?

5 – About carbon emissions in the transportation sector and the relationship with advanced biofuels, what is the best approach for the U.S.A.?

6 – How do you see the cellulosic-based drop-in biofuels?

7 – About second generation of ethanol, we did not achieve the goal that was established by the Energy Security and Independence Act of 2007. What happened?

8 – The prices of gasoline at the gas stations are very high. Four years ago the price was less than $3.00/gallon. Do you think the increase in the advanced biofuels industry could reduce the prices of fuel for consumers?

9 – What is your opinion about US bioenergy and biofuels policy?


10 – Could you list the main challenges to establishing an advanced biofuels industry?

 

Interview with Christopher Standlee:  Interested in knowing more about second generation ethanol, feedsotcks, biochemical conversion, costs, and farmers inclusion? Listen to the interview of Christopher Standlee, Executive Vice-President of Abengoa Bioenergy, conducted by Dan Quadros.
Abengoa Bioenergy (http://www.abengoabioenergy.com/web/es/index.html) produces ethanol (1st and 2nd Generation), sugar, electricity and animal feed. It is a leader in the development of new technologies for the production of biofuels and chemical bioproducts and the sustainability of raw materials, dedicating a large quantity of resources into research work.
Abengoa Bioenergy Biomass of Kansas (http://www.abengoabioenergy.com/web/en/acerca_de/oficinas_e_instalaciones/bioetanol/eeuu/kansas/index.html) is building a plant for the production of 25 Mgal (100 ML) of cellulosic ethanol and 22 MW of renewable energy from biomass (a mixture of agricultural waste, non-feed energy crops and wood waste). The plant will be located to the west of Hugoton, Kansas, and will create 65 permanent jobs. The construction of the Hugoton plant began in July 2011 and will begin operations this year.
1 – Could you briefly tell us the history of Abengoa Bioenergy?

2 – What is so special about the Abengoa Bioenergy new project in Hogoton, Kansas?

3 – How much did it cost and where did you get the money?

4 – What kind of feedstock does this new plant use?

5 – Could you explain in more detail about the conversion technology used?


6 – What products are produced in this facility?

7 – How about the yield of ethanol per ton of biomass?

8 – How do you  include farmers in this system?

9 – Do they have to make some process to stock the feedstock?

10 – In your presentation at this conference, you showed the increase of yield and the decrease of costs. Could you reveal to us the cost of ethanol produced?

11 – Considering the reduction of cost of biofuels production in the last years, do you think any possibility to decrease the fuel prices at the pump in the future?

12 – How is the process to license Abengoa’s technology?

13 – In the license agreement, Abengoa will be the partner in the ethanol selling or it will receive just for the technology utilization?

 

Interview with Tom Bryan:  Listen to Dan Quadros’ interview with Tom Bryan, president of BBI International, to get an overview about biomass industry, biofuels, and power/heat generation.
BBI International (http://www.bbiinternational.com) produces globally recognized bioenergy events and trade magazines. In addition to the International Biomass Conference & Expo and its allied regional events, BBI owns and operates the largest, longest-running ethanol conference in the world—the International Fuel Ethanol Workshop & Expo (FEW)—and the National Advanced Biofuels Conference & Expo. The company publishes Biomass Magazine, Ethanol Producer Magazine, and Biodiesel Magazine, as well as a number of ancillary products including maps, directories, e-newsletters and other Web-based industry resources.
1 – Could you tell us briefly the history of BBI International?

2 – How do you evaluate the 2014 Biomass Conference & Expo?

3 – Which is the most developed bioenergy industry in the USA currently: power/heat plants or drop-in biofuels?

4 – What is the role of drop-in biofuels on fuel prices at gas station? Do you think that biofuels could make fuel prices cheaper?

5 – The same thoughts could be applied for green power plants and electricity prices?

6 – What are the impacts of low prices of natural gas on bioenergy sector?

7 – Corn prices are historically high. How do you see the change from corn ethanol to non-food sources?

8 – How to have more biodiesel utilization in transportation sector?

9 – How are the main challenges to have globally more and more production and utilization of bioenergy and less non-renewable sources of energy?

10 – Focusing on bioenergy, how is the role and the power of press companies like yours on education, policy, and public opinion?