Growing Renewable Energy Capacity in New York Conference

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The Federal Landscape on Renewables

• Growing Renewable Energy Capacity inNew York
  Conference
• Syracuse, New YorkJune 27, 2005
• Presented byDr. James R. Fischer
• Senior Technical Advisor AcademeBoard of
  Directors Office of Energy Efficiency and
  Renewable EnergyU.S. Department of Energy

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(No Transcript)
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• By three methods we may gain wisdom
• Confucius

First, by reflection - which is
noblest Second, by imitation - which is
easiest Third, by experience - which is
bitterest.
4
I Am Here to REFLECT with Youand Gain WISDOM
about
Renewable Resources/ Energy Nexus
Energy Security
Sale of Energy
Supply of Energy
Renewable Resources
Energy
5
Today We Will Travel the Road to Wisdom by
Reflecting on
6
Reflecting on the Energy Situation could be
similar to herding cats
It ain't an easy job but somebody has to do it!
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WHAT IS AT STAKE?Energy is part of the
foundation of our economy
Best-case scenario is that in the future a
number of technologies will be in place that will
allow the U.S. to transition from heavy reliance
on petroleum to relying more on domestic and
renewable resources

• A worse case could mean supply disruptions like
  we saw in the 1970s, although we are buffered
  somewhat by Strategic Petroleum Reserve

8
Global Energy Situation
Fossil fuels projected to provide 87.1
World Consumption of Energy Will Increase
Fossil fuels provide 84.7 of world energy
consumption
Oil 39.5
Coal 20.0
Renewables 8.3
1999
Gas 27.6
Nuclear 4.6
Oil 39.8
2020
Coal 22.2
Renewables 8.7
611.5 Quads Total
Gas 22.7
60
Nuclear 6.6
Source International Energy Outlook 2002, Table
A-2, p. 181.
381.9 Quads Total
9
The Global Energy Situation
Energy Consumption and Affluence are Linked
10
Global Energy Situation
12
1400
1200
10
1000
World Population
8
800
Population (Billions)
Energy Consumption (Qbtu / yr)
6
600
World Energy Consumption
4
400
2
200
0
0
1950
1900
2000
2050
2100
Year
Energy Projections Global Energy Perspectives
ITASA / WEC Population Projections United
Nations Long-Range World Population Projections
Based on the 1998 Revision
11
The Global Energy Situation
2025 Oil Projections China/India
China 10.9 (million barrels per day)
India 5.5 (million
barrels per day)
12
The Global Energy Situation
EIA World Conventional Oil Production Scenarios
EIA, 2003
13
The Global Energy Situation
Coal 20.0
Coal 21
Gas 27.6
Gas 26
Ocean
Coal 22.2
Coal 22
Gas 22.7
Gas 23
Source International Energy Outlook 2002,
Energy Information Administration, Table A-9, p.
188, and http//www.eia.doe.gov/pub/international/
iealf/table62.xls
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The U.S. Energy Situation
15
The U.S. Energy Situation
16
The U.S. Energy Situation
Reliance on fossil fuels is projected to grow to
87.5
Coal 20.0
Fossil fuels provide 85.4 of U.S. energy
consumption
Gas 27.6
Ocean
Oil 38.9
Coal 22.5
Renewables 6.5
Gas 23.6
Coal 22.2
130.9 Quads Total
Nuclear 8.1
Gas 22.7
2000
99.3 Quads Total
Source Annual Energy Outlook 2002, Energy
Information Administration, Table A1, p. 125.
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The U.S. Energy Situation Environmental Impacts
of Fossil Energy Use
U.S. 2001 Energy-Linked Emissions as Percentage
of Total Emissions
100
90
80
70
60
50
40
30
20
10
CO
NOx
VOC
SO2
PM10
PM2.5
CO2
0
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The U.S. Energy Situation Carbon Management
Technological Options
Improve Efficiency
Sequester Carbon
Reduce Carbon Intensity

• Renewables
• Nuclear
• Fuel Switching

• Demand Side
• Supply Side

• Enhance Natural Sinks
• Capture Store

Ocean

• All options need to
• Affordably meet energy demand
• Address environmental objectives

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The U.S. Energy Situation in Agriculture
Direct vs. Indirect Energy Consumed on U.S.
Farms, 1965-2002
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The U.S. Energy Situation in Agriculture
Source Miranowski, John, Energy Consumption in
U.S. Agriculture, Proceedings Agriculture as a
Producer and Consumer of Energy Conference,
Arlington, VA, June 24-25, 2004. Sponsored by
Farm Foundation.

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The U.S. Energy Situation in Agriculture
Farm Prices for Nitrogen Fertilizer Track Natural
Gas Prices
Natural Gas Prices Have Been Increasing
Sources GAO analysis of USDA, National
Agricultural Statistics Service, and industry
data
Source U.S. Energy Information Administration,
Annual Energy Review 2003, September 2004. Table
6.8, "Natural Gas Prices by Sector." Prices for
Industrial sector consumers.
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The U.S. Energy SituationBack to the Future?
of total
Renewables - Electric - Low temperature -
Catalysts
Traditional - Biomass - Wind - Water-
Animals
Fossil Fuels - Mechanical- Combustion -
High temperature
100
75
50
25
0

1800
1850
1900
1950
2000
2050
2100
2150
Source Ewald Breunesse, Shell Netherlands, 14th
IAMA Annual World Conference, Montreux, June 14,
2004

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The Future U.S. Energy Situation
The Only Constant Is Change - Inevitable
Transition to New Energy Technologies
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The Future U.S. Energy Situation
Energy Future Scenarios - Choice or Fate?
Source Winning the Oil EndGame, Amory Lovins,
Rocky Mountain Institute, 2004
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The Future U.S. Energy Situation Renewable
Energy?
Shell Sustained Growth Scenario
Source 1995 Shell, The Evolution of the
Worlds Energy Systems
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The Future U.S. Energy SituationMaybe When We
Reflect on EnergyWe Need to Learn a New
Language?
Wind Energy
Solar Energy
Geothermal Energy
Hydrogen Energy
Biorefinery
Biomass Energy
Clean, Abundant, Reliable and Affordable Energy
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Wind Technologies
Large Wind Systems/Utility-Scale
Advanced Future Applications-Custom Turbines
Small Wind Systems ( 100 kW)

• Mechanical Energy (historical i.e. Grinding grain
  or Pumping water)
• Distributed Electricity Generation
• Hybrid Systems (solar electric, diesel, micro gas
  turbines, batteries)

Land based(2-5 MW) Off-shore(5 MW or larger)
Electricity Hydrogen Desalination Storage
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Wind Electricity Generation Installed World
Capacity
Source Wind Power Monthly January 2005
Current World Total 46,048 MW
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U.S. Wind Resources and Installed Capacity
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Renewable Energy in AgricultureWind
Wind Capacity and Cost Trends
Cost of Energy and Cumulative Domestic Capacity
Capacity (MW)
Cost of Energy (cents/kWh)
Increased Turbine Size - RD Advances -
Manufacturing Improvements
Year 2000 dollars
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Solar Energy Technologies
32
Electricity Generation from Photovoltaics
Installed World Capacity
Installed Photovoltaic Capacity (MW)
Estimated World Installed PV Capacity 1808 MW
Source IEA Photovoltaic Power Systems Programme
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Worldwide Solar Thermal Capacity
Total capacity of installed solar collectors in
2001 69,320 MWth
Source Worldwide Information System for
Renewable Energy (WIRE) Web site, an initiative
of the International Solar Energy Society
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U.S. Solar Resources and Thermal Shipments (2003)
Alaska
Hawaii
Source Solar Thermal and Photovoltaic Collector
Manufacturing Activities 2003, Table 14, Energy
Information Administration, 2004.
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Renewable Energy in AgricultureSolar
Solar Technologies Cost Trends

• Long Term Goals
• PV .06/kWh (2020)
• SWH .04/kWh, broader resource area (2012)
• CSP .035/kWh, broader resource area (2015)

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35
30
25
Cost (cents/kWh)
0.21/kWh
20
0.12- 0.14/kWh
15
0.12kWh
0.12kWh 0.09/kWh
10
5
0.04kWh
0.06kWh
0
1990
1994
1998
2002
2006
2010
With improved technology supported by DOE, the
cost of solar energy in the United States has
steadily declined.
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Renewable Energy in AgricultureSolar
Photovoltaics (PV) Costs and Shipments
MWs Shipped
PV Cost, Cents/kWh
Source for market data Paul Maycock, PV News,
Volume 23, No. 3 March 2004
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Geothermal Energy Technologies

• Electricity Generation
• Distributed Power
• Central Station Power

• Direct Uses
• District Heating
• Process Heat
• Agriculture (Horticulture)
• Aquaculture

• Geothermal Heat Pumps
• Heating
• Cooling

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Geothermal Electricity Installed World Capacity
Source The World Bank Web site, 1999 data
World Total 8246 MW
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Geothermal Direct Use (Thermal)
World Total 16,210 MWt
Source Direct Heat Utilization of Geothermal
Resources, John W. Lund
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Geothermal Energy in the U.S.Current
Utilization and Resource Potential

• 2,800 megawatts of electricity supplying 4
  million people in western U.S. and Hawaii
• gt 2,000 thermal megawatts of direct uses
• gt 3,000 thermal megawatts from heat pumps
  nationwide, providing heating and cooling

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Renewable Energy in AgricultureGeothermal Costs
Coming Down
Geothermal Energy Increasingly Competitive
1980 10-16 cents/kWh
2000 5-8 cents/kWh

• Electricity Generation Current capacity is
  roughly 2,800 MW in US 8,000 MW worldwide

2010 Goal 3-5 cents/kWh
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Biomass Technologies

• Biogas Platform
• Biorefineries
• Thermochemical Platform
• Sugar Platform
• Carbon Rich Chains Platform (Transesterification/B
  iodiesel)

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U.S. Biomass Resources
44
Roots
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Biogas Platform

• Sponsoring RD on the catalytic conversion of
  wet biomass into methane- or hydrogen-rich fuel
  gases
• Have co-sponsored several activities with USDA
  and EPA on animal waste and methane energy

Disposal of animal wastes becoming a growing
environmental concern.
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Anaerobic Digestion Accessible Resources and
Estimated Deployment (2010)
Accessible Resource (MWt)
Source ATLAS Web site
World Total 63,800 MWt Estimated Deployment by
2010 875-6,590 MWt
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Biorefinery Technologies
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The New Bio-Industry from Plants to Products

• USES
• Fuels
• Ethanol
• Renewable Diesel
• Power
• Electricity
• Heat
• Chemicals
• Plastics
• Solvents
• Chemical Intermediates
• Phenolics
• Adhesives
• Furfural
• Fatty acids
• Acetic Acid

Biomass Feedstock

• Trees
• Grasses
• Agricultural Crops
• Agricultural Residues
• Animal Wastes
• Municipal Solid Waste

- Enzymatic Fermentation - Gas/liquid
Fermentation - Acid Hydrolysis/Fermentation -
Gasification - Combustion - Co-firing
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Petroleum to Useable Products
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Biomass to Useable Products
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Biorefineries Bioproducts

• Help farms stay competitive in the global
  marketplace
• Add vigor to rural American economies

• Decrease reliance on imports
• Environment benefits

Henry Ford wearing a suit made of soy fiberFrom
Harold Brock, The Fords of My Past
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Commercialization of Bioproducts

• Commercialization Is Happening Now in the
  U.S. and Abroad

• Toyota Motor Corp. Pursuing Bio-plastics
• Bio-plastic (polylactic acid, or PLA) pilot plant
  with yearly production capacity of 1,000 tons
  under construction
• First use of bio-plastics for vehicle interior
  parts on the new Raum and Prius
• Goal To supply 20 million tonnes of bio-plastics
  by 2020

Source Toyota Motor Corp.
54
International Biorefinery Workshop

• July 20-21, 2005
• Washington, DC
• Co-sponsored by DOE and the European Commission's
  Directorate
• Participants International governments,
  researchers,universities, laboratories.

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OIL/BIODIESEL Biorefinery
Soy, corn, mustard
Recycled greases
Meat, poultry fish production
Meat Hides
Fats Oils
Meal
Steam/catalytic Reforming
Industrial chemicals
Animal Feed
Food Products
Industrial chemicals
Fuel Fuel Additives
Pesticides/fungicides Fertilizers Adhesives Films
Plastics Polyesters Antibiotics Textiles Particle
board Asphalt emulsions Reagents
Solvents Lubricants Epoxies Resins Glue
Cements Soaps, detergents Paints
coatings Rubber tires Pharmaceuticals Inks Plast
ics Antifreeze Gun powder explosives Cosmetics
Biodiesel Industrial Boiler Fuel Fuel
additives Motor Oil Hydraulic Oil
Hydrogen
Fuel Cells
Land and Water Transportation Electric
Generators Residential Commercial Heating
Industrial boilers
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U.S. Biomass Fuel Production Growing
Agriculture Has Become a Contributor to U.S.
Energy Supply Production of Ethanol and
Biodiesel

• Ethanol
• 82 U.S. ethanol plants operating gt16 new plants
  and 2 major expansions under construction
• Nearly 3.5 billion gallons per year (BGY)
  capacity gt755 million gallons per year capacity
  under construction
• 3.35 BGY production estimated for 2004
• Biodiesel
• Production capacity of about 150 million gallons
  per year (National Biodiesel Board estimate)

Sources Renewable Fuels Industry, Industry
Outlook 2004, p.4 and National Biodiesel Board,
FAQs cited in Eidman, Vernon "Agriculture as a
Producer of Energy, Proceedings Agriculture as
a Producer and Consumer of Energy" June 24-25,
2004, Arlington, VA
57
Combined Heat and Power (CHP/Direct Combustion)

• Thermal output and electricity from biomass
• CHP potential for paper, chemical, and
  food-processing industries?
• Utilizing CHP can improve energy efficiencies by
  more than 35.

Direct Combustion
Pulp Paper Mills Combined Heat and Power (CHP)
Applications
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Food Processing
Potential for Combined Heat and Power Systems
(CHP)
Food beverage processing industry is fifth
largest industrial user of energy There is an
estimated 276 MWe of potential CHP in this
industry
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Hybrid Generation Systems
Hybrid power systems combine a number of
electricity production and storage elements
(wind, PV, Biomass, Small Hydro, Battery, Gensets)
Wind Turbines and Diesels are Complementary
Slide credit Bergey Company
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Hybrid Generation Systems Wind/Solar

• Wind Solar - Seasonal Complementary Resources

Credit Bergey Windpower, Inc.
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Hybrid Systems- Parker Ranch

• Parker Ranch, located on the island of Hawaii, is
  one of the largest and oldest cattle ranches in
  the country.
• Home of worlds largest hybrid PV-wind project
• 175 kW of photovoltaics and 50 kW of wind power
• Supply over 90 of the daytime electrical power
  needed to provide drinking water for Ranch
  livestock in certain grazing areas.
• Money saved from reduced utility bills more than
  covers the amortized cost of the system.

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The Hydrogen Economy
63
Renewable Energy Pathways to Hydrogen
64
Biomass to Hydrogen Global Overview
Hydrogen
Purification
H2 CO2
40 dry ton/day commercial pyrolysis operating
since 1995
Shift conversion
CO H2 CO2
300 dry ton/day gasifier at Burlington Electric,
VT
Catalytic steam reforming
Pressure Swing Adsorption (PSA) Purification
System
Gases or Pyrolysis Oil
Gasification or pyrolysis
Water Gas Shift Conversion Reactor
Biomass
Tubes in a steam reformer
65
State and Regional Hydrogen Initiatives
Source State and Regional Hydrogen Initiative
Resources, The National Hydrogen Association
66
Creating OpportunitiesThe Energy Technology
Development and Utilization Continuum
Application
Feedback
67
Creating OpportunitiesCan Be a Refreshing Change!
68
Creating OpportunitiesEducation

• Educate scientists and engineers in renewable
  energy systems
• Develop training/certification programs
• Develop youth education programs
• Educate citizens on energy issues

69
PARTNERSHIP
ENGAGEMENT
70
Creating Opportunities
University Curriculum Development in Bio-Based
Products
IOWA STATE UNIVERSITY
Biorenewable Resources and Technology Graduate
Program

• M.S. and Ph.D. Degrees
• Engineering
• Agricultural and Biosystems
• Civil and Construction
• Chemical
• Mechanical
• Sciences
• Agronomy
• Biochemistry
• Biophysics
• Molecular Biology
• Botany
• Chemistry
• Food Science and Human Nutrition
• Forestry

71
Creating OpportunitiesPolicy

• Incentives to guarantee markets for renewables
  and spur renewable energy production
• National Energy Policy
• Biomass RD Act of 2000
• Farm Security and Rural Investment Act of 2002
  (Title IX Energy Title)
• Renewable portfolio standards
• Renewable Fuel standards
• Net metering
• Renewable energy assessments

72
Creating Opportunities U.S. Key Policy Shifts
73
Creating Opportunities State Biomass Policies
and Incentives
Incentives Available
Biomass Applications
Credit/Exemptions /Rebates
Electricity
Heating
Grants/Loans
Multiple Biomass Applications
Both Incentives
74
Creating Opportunities
Net Metering in 35 States Facilitates Renewable
Energy Contribution to the Grid
Net Metering by State
Construction of digester at Matlink Farms,
Clymer, NY
Grid-connected 10 kW Bergey Excel wind turbine
http//www.eere.energy.gov/greenpower
75
www.dsireusa.org/
76
Creating OpportunitiesEngagement

• Public Sector
• Private Sector
• Public/Private Partnerships

77
Federal Agency Collaborations
Creating Opportunities Public Sector Partnerships

• Healthy Forest Restoration Act of 2003, Title II
• Woody Biomass Utilization
• Biomass Research and Development Act of 2000
• Farm Bill 2002, Title IX
• Interagency efforts for renewable development on
  federal lands
• Resource assessments, policies and procedures to
  open federal lands
• Industry and environmental stakeholder
  partnership to study wind turbine-wildlife
  interactions

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Creating Opportunities Public Sector Partnerships
http//www.biobased.oce.usda.gov/public/index.cfm?
CFID23188CFTOKEN54603096
79
Creating Opportunities Public Sector Partnerships
Section 9006
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Creating Opportunities Public Sector
Partnerships Farm Bill
THE FARM SECURITY AND RURAL INVESTMENT ACT - 2002
TITLE I COMMODITY PROGRAMS TITLE II
CONSERVATION TITLE III AGRICULTURAL TRADE AND
AID TITLE IV NUTRITION PROGRAM TITLE V FARM
CREDIT TITLE VI RURAL DEVELOPMENT TITLE VII
RESEARCH TITLE VII FORESTRY TITLE IX
ENERGY TITLE X MISCELLANEOUS PROVISIONS
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Creating Opportunities Public Sector
Partnerships Title IX Energy
Section Name 9001 DEFINITIONS
(OCE) 9002 FEDERAL PROCUREMENT OF BIOBASED
PRODUCTS (OCE) 9003 BIOREFINERY DEVELOPMENT
GRANTS (RD) 9004 BIODIESEL FUEL EDUCATION
PROGRAM (OCE) 9005 ENERGY AUDIT AND RENEWABLE
ENERGY DEVELOPMENT PROGRAM (RD) 9006 RENEWABLE
ENERGY SYSTEMS AND ENERGY EFFICIENCY IMPROVEMENTS
(RD-RBS) 9007 HYROGEN AND FUEL CELL
TECHNOLOGIES (OCE) 9008 BIOMASS RESEARCH AND
DEVELOPMENT (NRE) 9009 COOPERATIVE RESEARCH AND
EXTENSION PROJECTS (REE-CSREES) 9010 CONTINUATIO
N OF BIOENERGY PROGRAM (CCC)
82
Creating Opportunities Public Sector
Partnerships Farm Bill Title IX Section 9006

• Renewable Energy Systems Energy Efficiency
  Improvements
• 5 year, 23M/yr for Renewable and Energy
• Efficiency Projects
• 50 for RE and 50 EE
• Wind, solar, biomass, geothermal, hydrogen,
  building and industrial efficiency
• Farmers, Ranchers, Small Rural Businesses
• 25 Grant Program
• Non-RD (Bricks and Mortar)
• Interagency Effort (USDA Lead, DOE EPA Support)

83
Creating Opportunities Public Sector Partnerships
Summary of Section 9006 Technology Grants for
Energy Efficiency and Renewable Energy
84
 
Creating Opportunities Private Sector
Partnerships
85
Creating Opportunities Private Sector
Partnerships
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Creating Opportunities Public/Private Sector
Partnerships

• A DuPont/DOE collaboration will develop a new
  form of biorefinery
• This New technology will convert corn stover
  into fermentable sugars for the production of
  added-value chemicals such as 1,3 propanediol for
  the high performance polyester, Sorona.

Cellulosic Ethanol

• Barriers cost of enzymes for the production of
  sugars
• Two U.S. enzyme companies, Genencor Novozymes
  have successfully reduced cost of enzymes by ½
• Have cut costs tenfold and are working on further
  cost reductions to make the production of ethanol
  from lignocellulosic material economical.

87
Creating Opportunities Public/Private Sector
Partnerships

• EEREs Biomass Program is sponsoring a 2.4
  million National Corn Growers Association (NCGA)
  project, titled "Separation of Corn Fiber and
  Conversion to Fuels and Chemicals Phase II
  Pilot-Scale Operation.
• Under a previous DOE-funded project, NCGA
  developed a process for separation of
  hemicellulose, protein, and oil from corn fiber.
• With help from Archer Daniels Midland and the
  Pacific Northwest National Laboratory (PNNL),
  NCGA will pilot-scale test and validate this
  process for commercial use.

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Creating Opportunities Public/Private Sector
Partnerships International Partnership for the
Hydrogen Economy
Partnership Goal Efficiently organize and
coordinate multinational research, development
and deployment programs that advance the
transition to a global hydrogen economy.
European Commission
New Zealand
Brazil
Australia
Norway
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Fishing For The Wisdom To Build a Prosperous
Energy Future
not by experimentation
not by imitation
but through reflecting on how to catch the big
one ! ! !
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We Will Gain Wisdom Through Reflection If We - -
-
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Let Us Begin Building a Prosperous Future for
Rural and Urban America
Where Energy is Clean, Abundant, Reliable, and
Affordable