BIOMASS HUB

EPA-sponsored webinar focuses on the regional dimensions surrounding the economics of biofuels.  Canola and Camelina for biodiesel and biojet are highlighted; governmental funding landscape discussed.

Yesterday, the U.S. EPA hosted a webinar focusing on the regional economics of biofuels.  Although geared for Region 10 (serving Alaska, Idaho, Oregon, Washington, and 267 Indian Tribes), much of the information presented has general application across the U.S.

The webinar covered sustainable models for biodiesel (and bio-aviation fuel) production using canola, camelina, and waste grease as feedstocks as well as the value of public/private research ventures.  Presenters also touched on their experiences in: fleet management, project development, crop development, farming, production, research, procurement, and commerce.

Speakers included:

• Allen Mitchell, Snohomish County Fleet Manager
• Deanna Carveth, Senior Planner, Snohomish County Public Works
• Ryan Hembree, Snohomish County Agriculture Coordinator
• Ray Benevides, Vice President/Co-Founder, GEN-X Energy Group, Inc.
• Margaret McCormmick, General Manager of Bio-based Materials, Targeted Growth, Inc.
• Dr. John Gardner, Vice President of Economic Development and Extension, Washington State University

Case study: building a local biodiesel facility for Canola

Alan Mitchell, Ryan Hembree, and Deanna Carveth of Snohomish County in Washington state showed that government can put together biofuel projects — in this case biodiesel.  Important to note, however, is the relatively expensive ($1.5 million) price tag associated with the project.

While successful, the project took several years to complete and 3-5 years to get to 150 acres of Canola production.  Since Snohomish sits on the wetter side of Washington state, unlike Eastern Washington where one can field dry oilseeds, the project required the purchase and installation of industrial dryers and aggregation of feedstock from relatively smaller farms.

The regional variability among biofuel projects — even within the same state — remains a difficult obstacle to building out a national biofuel infrastructure as well.  Since there is no one-size-fits-all solution, each project must be carefully planned to account for unique circumstances as well as large cap-ex expenditures to launch facilities.

Financing biofuels with government money

Ryan Hembree of GEN-X Energy Group highlighted some of the key sources of federal funding for biofuels, namely: DOE through its Clean Cities program as well as others, USDA through the Farm Bill, and the Department of Treasury (IRS).  He adds that the U.S. EPA created a fungible commodity under the RFS through its RIN system, which carries with it significant penalties for non-compliance.  Hembree advises that project developers always consult with the EPA when starting into the program in order to avoid “an industry black eye.”  He also emphasized the importance of exploring state incentives and regulations.

He adds that developing relationships with governmental agencies is paramount to a project’s success:

A biofuels producer that understands the issues of compliance and the process of the involved agencies will be able to harness, master, and leverage the use of government dollars to stimulate their business and provide desperately needed America jobs.

Focus on Camelina

Margaret McCormmick of Targeted Growth provided an overview of Camelina as a low-input, non-food feedstock.  As we concluded in our Camelina market report (see Camelina Aviation Biofuels: Market Opportunity and Renewable Energy Report), Camelina thrives on marginal soils.

The oilseed has many other advantages, explains McCormick.  The “industrial Canola” runs about .40-.70 cents cheaper than soybean and palm oil and Targeted Growth has improved yields by 33 percent in two years of development.

But building out a biofuel market “takes a village,” explains McCormick, and no commercial refineries to convert oilseed crops into drop-in aviation biofuels currently exist.

The biofuel village

Dr. John Gardner of Washington State University elaborated on the “takes a village” phrase and explained that biofuels infrastructure requires the collaboration of and contributions from a wide range of stakeholders, including: startups, established large-scale firms, universities, and government.  Gardner also noted that local, state, and national resources are all important sources of funding and expertise for biofuels projects, adding that public-private partnership are needed to make advanced biofuels like algae possible.

Currently, Gardner explained, there are no sustainability labels for biofuels so producers need to vet feedstock suppliers on their own.  While ASTM standards are used on the engineering side, the emerging Roundtable on Sustainable Biofuels standard will cover social and environmental factors.

Image: Flickr/8#X