Read More - American Council On Renewable Energy

The most popular and successful biofuel feedstocks,include cellulosic and woody biomass, biomass wastestreams, algae, and other resources. The technologiesresponsible for converting these biomass feedstocks intobiofuels are surprisingly multifaceted, ranging fromthermal, thermal chemical, yeasts, enzymes, acids andother chemicals, metals, chemical catalysts, and more.These technologies will emerge from their early demonstrationphase in 2009, and are expected to be in commercialproduction by 2010.Policy support for advanced biofuels is coming from stateand federal governments in the form of grants, loanguarantees and incentives – and most importantly,through the Renewable Fuels Standards and the VolumetricEthanol Excise Tax Credit.The sector must increase speed to market,providing an opportunity to streamline thepermitting process and de-risk capital forscaling-up operations.There must also be a focus on market-based solutions,including leveling the playing field in terms of technologyand incentives, in addition to rewarding performance forefficiency, volume, and quality. There must also be theencouragement of private investment to drive volume andjob creation. This can be done through carbon pricing andlong term policy commitments.The vision of the advanced biofuel industry is to utilizewaste and low cost carbon to produce fuel and energy, toreduce green house gas emissions, and deliver costeffective and sustainable solutions.Market development for the biofuel industryconsists of advanced forms of transportation bytruck, rail, barge, ship and pipelines.A second critical step for biofuel market development isproviding more blender pumps which will give drivers achoice of E-10, E-20, E-30 and E-85, in addition togasoline. Legislation is underway at both the state andfederal levels to increase the number of blender pumpfueling stations. However, more flexibility within theFederal government and EPA regulations is needed toincrease the choices towards E-20 and E-30 blends.In addition to market development a publicinformational campaign is needed to createawareness regarding the facts of the “foodversus fuel” issue.Can biomass streams be competitive fossilfuels? –Yes. Biomass becomes morecompetitive as fuel prices rise. Additionally,profits are made on co-products not justfuels and this results in proportionatefunding of research and commercialsupport in addition to the establishment ofhomogenous standards and testing.– Jonathan Gorham, Director, Business Development, QterosThis campaign should include information about indirectland use issues as facts and public perceptions are beingmanipulated to the disadvantage of the biofuels industryand its market development.Currently, the biofuel industry is facing afinancial standstill.Most operating plants are tight on capital. To alleviate thisproblem, many plants are undergoing rampant“restructurings” – or worse, refiners are becomingbiofuels producers.Elements of energy security revolve aroundthree main factors; fuel, infrastructure andprices. With energy security comes the needto build a global market, building globalmarkets means meeting demandssustainably.– Joel Velasco, Chief Representative, UNICAThere are two agreements which could alleviate thesefinancial issues; off-take agreements and tolling agreements.Off-take agreements are long-term purchaseagreements with pricing that takes into account theproducer’s variable costs (including feedstock andenergy). Whereas, tolling agreements are opportunistic“rentals” of the producer’s plant to those who can supplyfeedstock and sell the final product.If biofuel plants were to explore one of these two agreements,they would potentially be able to provide a steadyrevenue stream for financing, alleviate working capitalconcerns, provide a post-restructuring revenue solution,transform arms-length relationships to partnerships, andfinally, bring in much needed capital.American Council On Renewable EnergyExecutive Summary Report 20