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Next-Generation Biofuels - Penn State Institutes of Energy and the ...

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10 NEXT-GENERATION BIOFUELS<br />

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defining <strong>the</strong> technologies <strong>of</strong> <strong>the</strong> future for this industry. Six<br />

are under construction or planned for in Bay states: three<br />

in New York, two in <strong>Penn</strong>sylvania, <strong>and</strong> one in Maryl<strong>and</strong>.<br />

Not all are in <strong>the</strong> watershed.<br />

A collaboration involving <strong>the</strong> U.S. Department <strong>of</strong><br />

<strong>Energy</strong>, Conoco Phillips, <strong>and</strong> Iowa <strong>State</strong> University is also<br />

developing cellulosic technologies that will use gasification,<br />

pyrolysis, <strong>and</strong> fermentation to produce fuels from<br />

corn stalks, stems, leaves, o<strong>the</strong>r non-food agricultural<br />

residues, hardy grasses <strong>and</strong> fast-growing trees. In addition<br />

to <strong>the</strong> production <strong>of</strong> cellulosic ethanol, emerging technology<br />

will soon support a wide range <strong>of</strong> bi<strong>of</strong>uels including<br />

biobutanol, renewable diesel, <strong>and</strong> biogasoline <strong>and</strong> jet fuel<br />

(see Figure 5).<br />

Government grants, loans, loan guarantees <strong>and</strong> tax<br />

credits — coupled with Renewable Fuel St<strong>and</strong>ards (see<br />

Sidebar, page 9) <strong>and</strong> cutting edge research at universities<br />

<strong>and</strong> government labs — are also boosting <strong>the</strong> development<br />

<strong>of</strong> cellulosic bi<strong>of</strong>uels. The U.S. Department <strong>of</strong> <strong>Energy</strong><br />

is investing up to $375 million in three new Bioenergy<br />

Research Centers that will accelerate <strong>the</strong> development<br />

<strong>of</strong> cellulosic ethanol <strong>and</strong> o<strong>the</strong>r bi<strong>of</strong>uels, as part <strong>of</strong> <strong>the</strong><br />

national “Twenty in Ten” initiative to reduce U.S. gasoline<br />

consumption by 20 percent within 10 years. The U.S.<br />

Department <strong>of</strong> <strong>Energy</strong> is also investing $385 million for<br />

six cellulosic bio-refinery projects over <strong>the</strong> next four years.<br />

When fully operational, <strong>the</strong> bio-refineries are expected<br />

to produce more than 130 million gallons <strong>of</strong> cellulosic<br />

ethanol per year.<br />

The adoption <strong>of</strong> a low-carbon fuel st<strong>and</strong>ard in<br />

California to reduce <strong>the</strong> carbon intensity <strong>of</strong> <strong>the</strong> state’s<br />

transportation fuel use 10 percent by 2020 will fur<strong>the</strong>r<br />

advance <strong>the</strong> development <strong>of</strong> cellulosic bi<strong>of</strong>uels. O<strong>the</strong>r<br />

states may follow, only fur<strong>the</strong>ring <strong>the</strong> dem<strong>and</strong>.<br />

Positioned to Lead<br />

The Chesapeake Bay region is well positioned to take<br />

leadership in this revolutionary shift to greener, renewable<br />

fuels, <strong>and</strong> to enjoy its economic <strong>and</strong> environmental<br />

benefits.<br />

A number <strong>of</strong> diverse feedstocks can be grown in <strong>the</strong><br />

Bay region as sustainable crops for cellulosic bi<strong>of</strong>uels<br />

throughout <strong>the</strong> year <strong>and</strong> transported at low cost to major<br />

East Coast energy markets. A large number <strong>of</strong> universities<br />

<strong>and</strong> research institutes in <strong>the</strong> region are already working<br />

on cellulosic bi<strong>of</strong>uels, <strong>and</strong> many private companies are<br />

willing to partner <strong>and</strong> develop competitive technologies.<br />

This research will not only produce a variety <strong>of</strong> bi<strong>of</strong>uels<br />

such as ethanol, butanol, biodiesel <strong>and</strong> biohydrogen,

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