DOE Selects 3 Small-Scale Biorefinery Projects for up to $86M of Federal Funding in Maine, Tenn., Ky.
May 2, 2008 // Published as a news service by IHS
The U.S. Department of Energy (DOE) announced three projects in which DOE plans to invest up to $86 million over four years (Fiscal Year 2008-2011) to support the development of small-scale cellulosic biorefineries in Old Town, Maine; Vonore, Tenn.; and Washington County, Ky.
This funding will further the U.S. federal government's goal of making cellulosic ethanol cost-competitive by 2012, and reduce U.S. gasoline use by expanding the availability of alternative and renewable transportation fuels.
Cellulosic ethanol is an alternative fuel made from a wide variety of plant materials or non-food based feedstocks, including agricultural wastes such as corn stover, forest waste including saw dust and paper pulp, and energy crops, like switchgrass.
By refining a variety of regional feedstocks, cellulosic biofuels can be sustainably produced in nearly every region of the country.
DOE is working with these biorefineries, and other research partners, to develop methods for reducing water and fertilizer needs associated with production of these fuels.
The three small-scale biorefinery projects will use a wide variety of feedstocks and test novel conversion technologies to provide data necessary to commercialize full-scale biorefinery technologies.
On average, commercial-scale biorefineries input 700 tons of non-food based feedstock per day, with an output of approximately 20-30 million gallons a year (MMGY). These small-scale facilities will input approximately 70 tons of feedstock per day, with an estimated 2.5 MMGY, said DOE.
Expected to be operational within four years, the selected small-scale biorefineries projects will produce liquid transportation fuels such as cellulosic ethanol, as well as bio-based chemicals and bio-based products used in industrial applications. Combined with varying industry cost share among the three selected projects, more than $300 million will be invested in these three projects.
This announcement is part of more than $1 billion in federal funding DOE has announced since 2007 for multi-year biofuels R&D projects. These small-scale projects also complement the DOE announcement in 2007 of six commercial scale biorefineries that aim to produce biofuels by using a variety of cellulosic materials as feedstock.
The full-scale biorefineries focus on near-term commercial processes, while the small-scale facilities will verify integrated operations at a reduced size with diverse feedstocks using novel processing technologies. These biorefineries will operate at a level equivalent to about 10% of a full-scale commercial plant.
The selected biorefinery projects represent the second round of selections for DOE competitive small-scale biorefinery solicitation. Earlier this year, DOE selected four projects, comparable in size and scope of work, in St. Joseph, Mo.; Commerce City, Colo.; Boardman, Ore.; and, Wisconsin Rapids, Wis. These four projects will receive up to $114 million in federal funding.
Combined, the seven selected biorefinery projects are expected to receive up to $200 million in DOE funding. When federal funding is combined with the industry cost share, more than $634 million will be invested in these projects, over the next four years, said DOE.
These projects seek to advance the U.S. federal government's energy strategy of increasing the nation's energy, economic and national security by reducing U.S. reliance on foreign oil and stopping the growth of greenhouse gas (GHG) emissions by 2025 through increased efficiency and diversifying the nation's energy sources such as biofuels, wind, solar and nuclear energy.
According to scientists at the DOE Argonne National Laboratory, compared with conventional gasoline, ethanol produced from cellulosic materials requires as much as 90% less fossil energy to produce and has the potential to reduce GHG emissions by more than 86% over the lifecycle.
Negotiations between the selected companies and DOE will begin immediately to determine final project plans and funding levels. Funding beyond 2008 is subject to appropriations from Congress.
The following three projects were selected:
Rse Pulp & Chemical LLC of Old Town, Maine (DOE share: up to $30 million.)
The proposed biorefinery facility will be installed in an existing pulp mill in Old Town, Maine and will produce cellulosic ethanol from lignocellulosic (wood) extract. The project uses a proprietary process for pre-extracting hemicelluloses during the pulping process. This process has been proven on a laboratory and pilot scale and Rse will now prove the viability of the process at the demonstration plant level. Rse Pulp & Chemical participants/investors include the University of Maine and American Process Inc.
Mascoma Corporation of Boston, Mass. (DOE share: up to $26 million.)
The proposed plant will be located in Monroe County, Tenn. The facility is scheduled to come online in 2009 and will utilize Tennessee grown switchgrass as a primary feedstock. The plant will be the first cellulosic ethanol facility at this scale in Tennessee and will be used to demonstrate technologies and concepts that will make cellulosic ethanol an economically viable industry in the future. Mascoma is partnering with The University of Tennessee (UT) in Knoxville, Tenn., the UT Research Foundation and Genera Energy LLC.
Ecofin LLC of Nicholasville, Ky. (DOE share: up to $30 million)
The proposed plant will be located in Washington County, Ky. The biorefinery will use novel, solid-state enzymatic complexes to convert a potentially wide range of lingocellulosic feedstocks, including corncobs, to ethanol and other nutritious feed sources, minimizing waste. Ecofin LLC is a subsidiary to Alltech Inc.
Source: U.S. Department of Energy (DOE).