Testimony of Dr - Biomass Energy Research Association

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Testimony of Joan L. Pellegrino, Acting President

Biomass Energy Research Association

ON BIOMASS ENERGY RESEARCH

Department of Energy Fiscal Year 2007 Budget Appropriation

Submitted to the Senate Committee on Appropriations

Subcommittee on Energy and Water Development

April 11, 2006

SUMMARY

This testimony pertains to the fiscal year 2007 (FY07) appropriations for biomass energy research, development, and demonstration (RD&D) conducted by the Department of Energy’s

(DOE) Office of Energy Efficiency and Renewable Energy (EERE). This mission-oriented biomass RD&D is funded by the Energy and Water Development Bill, and is performed under the heading of Energy Supply and Conservation, Energy Efficiency and Renewable Energy.

BERA recommends a total appropriation of $150,000,000 in FY07 under Biomass and

Biorefinery Systems R&D (Energy Supply and Energy Conservation), exclusive of earmarks. Specific lines items for the DOE biomass RD&D budget are as follows:

 $60,000,000 for Biochemical Conversion Platform Technology (conversion of corn starch, corn stover and fiber, wood, forest residues and perennial crops)

 $50,000,000 for Thermochemical Conversion Platform Technology (conversion of wood

 and forest resources to pyrolysis oils and syngas)

 $25,000,000 for Integrated Biorefinery Technologies

$15,000,000 for Utilization of Platform Outputs: Core Technologies for Chemicals

BACKGROUND

On behalf of BERA’s members, we would like to thank you, Mr. Chairman, for the opportunity to present the recommendations of BERA’s Board of Directors for the high-priority programs that we strongly urge be continued or started. BERA is a non-profit association based in the

Washington, DC area. It was founded in 1982 by researchers and private organizations conducting biomass research. Our objectives are to promote education and research on the economic production of energy and fuels from freshly harvested and waste biomass, and to serve as a source of information on biomass RD&D policies and programs. BERA does not solicit or accept federal funding for R&D.

There is a growing realization in our country that we need to diversify our energy resources, develop technologies to utilize indigenous fuels, and reduce reliance on foreign oil. Economic growth is fueling increasing energy demand and placing considerable pressure on our already burdened energy supplies and environment. The import of oil and other fuels into the United

States is growing steadily and shows no sign of abating. Industry and consumers both are being faced with rapidly rising costs for fossil fuels, which are vital to our economy. A diversified

energy supply will be critical to meeting the energy challenges of the future and maintaining a healthy economy with a competitive edge in global markets.

Biomass is the single renewable resource with the ability to replace liquid transportation fuels.

It can also be used as a feedstock to supplement the production of chemicals, plastics, and other materials that are now produced from crude oil. In addition, gasification of biomass or biomass-derived pyrolysis oils produces a syngas that can be utilized to supplement the natural gas supply and electricity from fossil fuels.

Viable fuel and chemical products are already being produced from biomass, but on a very small scale compared to the potential fuel markets. Research should be expanded to realize the full potential of biomass as a component of our energy supply.

The Energy Policy Act of 2005 has created various incentives for diversifying our energy supply.

The Act provides a good foundation, but to be effective it must be supported by research that will enable the U.S. to take advantage of our abundant, domestic, renewable resources in a costeffective way. The recently announced Biofuels Initiative provides for additional funding to support the use of cellulosic biomass as a feedstock for ethanol, with the potential to replace as much as 30% of domestic gasoline demand in 2030. We support this Initiative and believe it will help to accelerate the development and utilization of this important resource.

BERA RECOMMENDATIONS FOR DOE BIOMASS RD&D

BERA's recommendations support a balanced program of mission-oriented RD&D, including projects to develop and demonstrate advanced biochemical and thermochemical biomass conversion processes, alternative liquid transportation fuels, and co-production of fuels, chemicals, and power in integrated biorefineries. BERA’s recommendations for funding for

DOE biomass RD&D are shown in Table 1 and outlined below. Note that recommended budgets for demonstration projects do not include the required 50% industry cost-share.

Fund both biochemical and thermochemical conversion platforms as foundations for integrated biorefineries – The biochemical and thermochemical platforms are both important and BERA urges that both be funded to accelerate the development and demonstration of largescale, synergistic integrated biorefinery systems. These large-scale systems have the most potential to enable biomass to have a major role in displacing fossil fuels. BERA urges that biochemical conversion research be funded at the DOE request, and that thermochemical conversion R&D for biomass gasification, pyrolysis, and synthesis of alternate liquid fuels be expanded and given a higher priority.

Support development/demonstration of integrated biorefineries – Activities should address integration of promising biological and thermochemical process steps and processes to improve overall process efficiency and reduce product cost, taking into consideration siting, plant design, financing, permitting, environmental controls, waste processing and disposal, and sustained operations; feedstock acquisition, transport, storage, and delivery; and storage and delivery of products to market. BERA recommends that industrial partners and states should be carefully selected to demonstration mission-oriented benefits for participation in this cost-shared program.

Reduce level of earmarks – The level of earmarks in the last few years has resulted in limiting new initiatives and premature reductions of scheduled programs by EERE. BERA respectfully asks the Subcommittee to carefully consider the impacts of all earmarks on EERE’s biomass energy RD&D. If earmarks are slated for projects that do not contribute to DOE’s research goals, BERA urges that they be add-ons to the baseline funds rather than deductions.

Table 1. Biomass/Biorefinery Systems R&D (Energy Supply)

Program Area Description of Research Scale-Up & All RD&D

Biochemical

Conversion

Platform R&D

RD&D

Conversion of corn starch, stover and fiber, wood and forest residues, and

Demonstration

$30,000,000 $30,000,000 $60,000,000

Thermochemical

Conversion

Platform R&D perennial crops

Conversion of wood and forest residues to pyrolysis oils or syngas

$20,000,000 $20,000,000 $40,000,000

Integration of

Biorefinery

Technologies

Validation of benefits of integrating biochemical and thermochemical conversion technologies in integrated biorefineries

$15,000,000 $15,000,000

Utilization of

Platform

Outputs: Core

Technologies for

Fuels,

Chemicals, and

Electricity

State and

Regional

Biomass

Partnerships

TOTAL

Development and coproduction of fuels, chemicals and electricity from biochemical and thermochemical platform output streams

Outreach and support for regional bioenergy projects

$15,000,000

$72,000,000

$5,000,000

$78,000,000

$15,000,000

$5,000,000

$150,000,000

Build U.S. leadership in biomass science and technology through mission-oriented bioenergy research

– BERA recommends that at least 50 percent of the federal funds appropriated for biomass research, excluding the funds for scale-up projects, are used to sustain a national biomass science and technology base via sub-contracts for industry and universities.

While the national laboratories should facilitate coordinating this research, increased support for

US scientists and engineers in industry, academe, and research institutes will encourage

commercialization of emerging technologies and serious consideration of new ideas. It will also help to build the skilled workforce, scientific community, and state-of-the-art research platforms needed to support a future domestic bioenergy industry.

Utilization of platform outputs R&D, core technologies for fuels, chemicals and electricity –

In the past EERE has focused on competitive selection of R&D projects based on an analytical effort that identified the top 12 building block chemicals that can be produced from sugar intermediates via biological or chemical conversions. BERA urges that this effort focus instead on efficient and economical production of liquid fuels and commodity organic chemicals, which have established markets, rather than high-value chemicals, which are either new products without established markets or specialty chemicals with niche markets. Biomass-derived fuels and chemicals, with the ability to co-produce electricity, will have a greater probability of reducing fossil fuels consumption. BERA urges that this effort include continuing research on sugar intermediates and be expanded to include direct conversion of other intermediates and biomass to fuels and commodity organic chemicals.

State and Regional Partnerships (Formerly Regional Biomass Energy Program) – The

State & Regional Partnerships (SRP) was created to succeed the Regional Biomass Energy

Program (RBEP) which functioned as a biomass outreach program for 20 years. The SRP serves an important function at the State level in promoting the use of biomass fuels. BERA strongly urges that the SRP be continued in FY07.

BIOMASS AND BIOPRODUCTS INITIATIVE

The goal of the Biomass and Bioproducts Initiative (BBI), created through “The Biomass

Research and Development Act of 2000” and Title IX of the Farm Bill, was to triple the use of bioenergy and biobased products. Congress has provided annual funding for the BBI since FY00.

BERA strongly urges that the BBI be continued in FY07 at the funding levels recommended by

BERA for the cost-shared demonstration projects shown in Table 1.

BERA congratulates DOE and USDA for the cooperation and joint coordination of the programs of each department to increase the use of biomass for production of affordable fuels, electricity, and products. To meet accelerated goals for biofuels, the BBI must be fully incorporated into

DOE’s and USDA’s biomass research programs. Large, strategically located, energy plantations are ultimately envisaged in which waste biomass and harvested biomass production systems are integrated with biorefineries and operated as analogs of petroleum refineries to afford flexible slates of multiple products from multiple feedstocks and to co-produce electricity..

BERA also recommends that implementation of the BBI should include identification of each federal agency that provides funding related to biomass energy development and their programs and expenditures, as is done by DOE and USDA. This on-going activity should be expanded to include other Federal agencies and organizations (e.g., Environmental Protection Agency,

Department of Transportation, Department of Commerce, National Science Foundation) to help fine-tune the critical pathways to program goals, to coordinate R&D efforts, and to maximize the return on RD&D investment.

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