Algal Biofuels and Federal Policy: RFS2 and Other Policy Issues

27 Pages·2012·1.47 MB·English

Algal Biofuels and Federal Policy:
RFS2 and Other Policy Issues
Andrew T. Braff
General Counsel, Algal Biomass Organization
Attorney, Wilson Sonsini Goodrich & Rosati, P.C.
Fourth Annual EBI Biofuels Law and Regulation Conference
University of Illinois at Urbana-Champaign
April 25, 2012
OVERVIEW
(cid:1)
Introduction to the ABO, Algae Industry and Algal Fuels
(cid:1)
Treatment of renewable fuel derived from algal
feedstocks under the Renewable Fuel Standard, as
aammeennddeedd ((RRFFSS22))
(cid:1)
Legislative Efforts and ABO’s Position on RFS2
(cid:1)
Other ABO Policy Priorities and Regulatory Issues
Critical to the Industry
Algal Biomass Organization | www.algalbiomass.org
ABOUT THE ABO
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Origins:
– 501(c)(6) trade association for the U.S. algae industry
– Formed following the first Algae Biomass Summit in November, 2007
(cid:1)
Mission: To promote the development of viable technologies and
commercial markets for renewable and sustainable products derived
ffrroomm aallggaaee
(cid:1)
Purpose
– Promote commercial applications for algal biomass
– Facilitate informed business decision based on sound science and best practices
– Education (policymakers, media, end users, general public)
– Advocacy
(cid:1)
Membership: Nearly 200 corporate and individual members across
the value chain from virtually every state
Algal Biomass Organization | www.algalbiomass.org
THE U.S. ALGAE INDUSTRY
Blue: Research institutions and labs Green: Private companies and projects
Algal Biomass Organization | www.algalbiomass.org
ABO CORPORATE MEMBERS
Algal Biomass Organization | www.algalbiomass.org
THE U.S. ALGAE INDUSTRY
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More than 100 companies, including 65 research
institutions in the U.S. alone
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Robust private-public partnerships
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Strong support from the public and private sector
– Approximately $1 billion in investment
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Several key milestones achieved; aviation biofuels
(cid:1)
A number of (pre)commercial facilities breaking
ground this year
Algal Biomass Organization | www.algalbiomass.org
THE U.S. ALGAE INDUSTRY
1 mile / 1.6 km
¼ mile / 0.4 km
GGeenneerraall AAttoommiiccss,, KKaauuaaii FFaacciilliittyy,, MMaarrcchh 22001122 || CCOO22 iiss ssuupppplliieedd AAllggeennooll’’ss ffaacciilliittyy iinn FFlloorriiddaa ((PPhhoottoo ccoouurrtteessyy ooff SSaapppphhiirree EEnneerrggyy’’ss IInntteeggrraatteedd AAllggaall BBiioorreeffiinneerryy iinn
from KIUC power plant (Photo courtesy of General Atomics) Algenol) Las Cruces, NM (Photo courtesy of Sapphire)
Source: Green Plains Renewable Energy | Solix Biosystems’ R&D facility in Colorado Cellana’s facility in Hawaii (Photo courtesy of
BioProcess Algae Co-Location, Shenandoah, IA (Photo Courtesy of Solix Biosystems) Cellana)
Algal Biomass Organization | www.algalbiomass.org
THE U.S. ALGAE INDUSTRY
65% of survey respondents say
they are increasing production in 2012
Do you plan to expand capacity in 2012?
No
19.09%
Yes, expansion will
35.45% occur at an existing
facility.
Yes, expansion will
20.00% occur at a new facility.
Yes, expansion will
occur at existing and
25.45% new facilities.
Algal Biomass Organization | www.algalbiomass.org
BENEFICIAL CHARACTERISTICS
OF ALGAL FEEDSTOCKS
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Land and Water Use
– Grown on marginal, non-arable land
– Can us saline/brackish water as well as wastewater
– Water use is minimal compared with conventional
agricultural crops
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Minimizes competition with conventional
aaggrriiccuullttuurree –– ffoooodd,, ffeeeedd aanndd ffiibbeerr
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CO is a key feedstock for algal growth
2
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Conversion to various fuels using
existing refining processes
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High Productivity and Efficiency
– Growth Rates – a 4-day growth cycle is slow
– High biomass, sugar and oil yield by
volume
– Photosynthetic Efficiency
City of Jiaonan, Shandong province, China
(Source: boardjournal.com)
Algal Biomass Organization | www.algalbiomass.org
NEXUS OF EFFICIENCY
AND LAND USE
To produce 15% of global fuel demand, Crop
(mm acres / km2)
algae oil production requires far less land
than any alternative ►►► ►►► ►►► ►►► ►►►
Algae
22 / 5,400
Oil
Crop Sugarcane
Gal/Acre/Yr
280 / 70,000
Soybean 48-50
Corn
CCaammeelliinnaa 6622
441100 // 110000,,000000
Sunflower 102
Switchgrass
Rapeseed 125
640 / 160,000
Jatropha 202
Coconut 285
Soy
Palm Oil 635
1,900 / 470,000
Algae (Done)* 2000
Algae (Credible) 6500
Camelina
Source: Chisty, Y. Biodiesel from microalgae. 2,600 / 640,000
Biotechnology Advances(2007).
* General Atomics, DARPA-funded Kauai algae facility,
Congressional Briefings, Washington, D.C. (March 2012)
Source: Sapphire Energy, Congressional Briefings, Washington, D.C. March 2012
Algal Biomass Organization | www.algalbiomass.org