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July 24, 2008

Redefining "renewable biomass" in EISA

As we strive to find sustainable alternatives to the demonstrably unsustainable fossil fuel paradigm the definition of "renewable biomass" is critically important. It is not just biofuels, biopower, or bioproducts that are (or are not) environmentally sustainable. Sustainability is a function, too, of the feedstock - and it may vary by region. Corn grown in the midwest might be sustainable while corn grown in California might not be for any number of reasons - water, pests, climate, topography, or soil to name a few. And that doesn't begin to address the question of economic sustainability which is determined by a host of other factors like capital availability, markets, infrastructure, ownership, manpower, and subsidies.

Bruce Dale of Michigan State University said at the 2008 California Biomass Collaborative "All biomass is local. And, as Tip O'Neil used to famously assert 'All politics is local.' So the obvious syllogism is that 'All biomass is political!'"

Funny if it wasn't so true.

Which is why it makes no sense for a federal definition of "renewable biomass" to be exclusionary (which is the way that it is as currently defined in the EISA law). It should be as inclusive as possible - allowing local considerations to determine what is environmentally and economically sustainable.

I think this is the inferred conclusion of an excellent "renewable biomass" testimony made today by Environmental and Energy Study Institute Senior Advisor Jetta Wong in her presentation at a hearing of the U.S. House of Representatives Committee on Agriculture Subcommittee on Conservation, Credit, Energy, and Research.

Here are some key points that she made in her summary and conclusion.

Summary:
On December 19, 2007 the President and Congress took a huge step forward in trying to mitigate climate change and reduce our country’s reliance on fossil fuels by enacting the Energy Independence and Security Act (EISA, P.L. 110-140). EISA substantially increases the Renewable Fuel Standard (RFS), calling for the production by 2022 of 36 billion gallons of renewable fuel with specific targets for greenhouse gas reductions. Within the 36 billion gallon mandate, 21 billion gallons must come from advanced biofuels, which means renewable fuel other than ethanol derived from corn starch. Additionally, there is a carve-out within the advanced fuels mandate that 16 billion gallons of cellulosic biofuel be derived from ‘renewable biomass.’

This is an aggressive and ambitious RFS. It is laudable, but it stirs up a lot of difficult issues regarding the sustainability of biofuels. One of the biggest factors in determining if a biofuel is sustainable is the choice of feedstocks used to produce the renewable fuel. Unfortunately, the definition of ‘renewable biomass’ included in the law deems several feedstocks ineligible, including thinning materials and woody residues from federal forests, some woody feedstocks from private forests, and a wide array of feedstocks from municipal solid waste.

Key Points :
• Renewable fuels are important to our climate and energy security strategy. They are reducing our dependence on foreign oil, reducing the cost of gasoline at the pump, and if produced sustainably, reducing greenhouse gas emissions.
• Renewable fuel facilities provide a market for low-value material produced through forest management practices.
• Abundant sources of woody biomass in the west can increase the distribution of liquid transportation fuels across the country. This will help to meet the large fuel markets of the west while further securing our energy supply.
• Mill residue and other woody materials create complications (in terms of collection) and should be carefully considered during implementation.
• Municipal solid waste is a low-value feedstock that several companies are investigating. Confusing or varying definitions included in public law create risk, limit innovation, and ultimately reduce the use of a feedstock currently considered a problem.
• Production of renewable fuels from low-value materials, such as woody biomass and municipal solid waste, reduces the pressure to develop feedstocks on sensitive land.
• A variety of stakeholders overwhelmingly support a broadening of feedstocks that could be eligible for the RFS. Specifically, low-value woody biomass sustainably harvested from both federal and private lands should be included.

Cellulosic biofuels can be produced from a highly diverse array of feedstocks, allowing every region of the country to be a potential producer of this fuel. (Cellulose is found in all plant matter.) As a result, support for cellulosic biofuels has brought together a broad array of constituents including environmentalists, farmers, national security experts, industry, and religious leaders. Unquestionably, the production of renewable fuels needs to be done in a way that sequesters carbon and enhances natural resources, including soils, water supply and native habitats. Production of renewable feedstocks should not be deemed to be in competition with the goals of sustainable agriculture or forestry. In fact, there are opportunities for renewable fuel and energy production to aid conservation efforts and environmental sustainability beyond those associated conventional agriculture, forestry or fossil fuel production and consumption.

Conclusion:
The wisest course of action would be to focus on feedstocks that do not compete for land resources, such as low-value forest residues and other waste materials. The RFS is a very aggressive mandate, but it is not an impossible one, as long as we do not exclude any of those feedstocks that can be produced sustainably and that meet important environmental and greenhouse gas emissions reductions. With conversion technologies still in development, we must keep our options open and strive to produce renewable fuels that meet objective and appropriate standards of sustainability. Fortunately, our nation possesses abundant and readily available feedstocks that satisfy this criterion.

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January 20, 2009

Integrating biorefineries with paper & pulp mills

One prominent feature of the 2007 Energy Independence and Security Act (EISA) is its renewable fuel standard that sets the trajectory for satisfying America's newfound thirst for alternative fuels. 36 billion gallons per year production by the year 2022. Considering that the U.S.' current annual production of biofuels is about 8 billion gallons that is a considerable amount of growth being virtually mandated by the U.S. Congress under the watchful eye of the Environmental Protection Agency.

Where is this fuel likely to come from? Can we "piggyback" any comparable industry and its existing infrastructure to help ease the transition between fossil fuels and biofuels?

The paper and pulp industry is starting to see a way to recover from its decades long fighting retreat. They are the biorefineries of the present. Their byproducts (paper and pulp) are more plentiful and valuable than the biopower and biofuels than they produce. But even so, the current combined output of heat, steam, and electricity made from combusting woody biomass and "black liquor" process residues make these mills the number one source of renewable energy in the country - more than all other alternative energy sources combined (including hydroelectric).

According to many within TAPPI (the Technical Association of the Pulp and Paper Industry) the time is ripe for retooling the more than 200 chemical paper mills operated within the country.

TAPPI held its annual 2007 TAPPI Conference in Atlanta last May. This year's event is August 27-29 in Portland. It will be interesting to see how the organizers address the latest attempts to engage the industry in what may be a renaissance of its mission and accomplishments.

Below is an excellent story by the Senior Editor of TAPPI's monthly magazine. He highlights some of the key features of this established industry that may very well piggyback the future of bioenergy.

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Pulp and Paper Industry Poised to Take Center Stage in Global Bioenergy Arena
International bioenergy conference explores new and emerging pathways, technologies, financial, legal, and operation issues.

by Ken Patrick

The pulp and paper industry is uniquely positioned to immediately produce significant amounts of biofuels, bioenergy and bioproducts. With a mature, operating infrastructure capable of delivering double-digit billions of gallons of biofuels annually, generally without adding any new fiber processing capacity, many pulp and paper mills around the world are only a one-step investment away from becoming major renewable energy producers. Especially important, paper industry capacity that can be re-aligned and re-purposed toward bioenergy co-production would be 100% cellulosic feedstock based, with no agricultural attachments at all.

Considering that there are 200 or more similar chemical pulp mills in the U.S., and at least an additional 100 in Canada, basic arithmetic shows this barrelage capacity for Fischer-Tropsch synthetic crude oil could total somewhere upwards of 420 million barrels per year, or between 15 and 20 billion gallons per year for the entire North American pulp and paper industry.

Pulp Mills as Biorefineries

Pulp mills are ideal sites for integrated biorefinery operations for four basic reasons. First, they are already set up to receive and process massive amounts of delivered roundwood and woods chips, served in this capacity by rail, truck and some also by barge operations. In the U.S. alone, pulp mills use more than 120 million dry tons of wood per year, and they have access to at least an equal amount of forest residuals and even a greater amount of agricultural wastes and energy crops if needed.

Second, these mills have basically the same existing infrastructures for warehousing and shipping out finished products around the country. Third, they have a well-established in-place administrative infrastructure and related human resources that can be extended to serve a biorefinery business without incurring significant new costs. Fourth, pulp mills have operating utility support systems for process water, electricity, steam and waste/environmental treatment that can easily be umbrella'd to support biorefinery operations without major new investments.

And possibly as a strong fifth reason, chemical pulp mills already operate as biorefineries of sorts, producing fiber used to make paper and paperboard as well as some specialized dissolving pulps used to make viscose types of "bio-plastics" and rayon materials. Bio-byproducts made from sulfate (or kraft) spent cooking liquors (black liquor) include ingredients used in making coatings, adhesives, detergents, paint, varnish, ink, lubricants, waxes, polishes, gasoline additives, agricultural products, etc. Turpentine is obtained by condensing exhaust vapors during the pulping of softwoods with the kraft process. There also is a spectrum of lignin-based byproducts produced from refinement of black liquors.

This same black liquor that, in fact, after it is thickened through evaporation and the byproduct streams removed, is currently used as a "fuel" to fire what are known as chemical recovery boilers, so named because their initial, primary purpose was to burn the hemicellulose/wood sugar content of the thickened, spent cooking liquor, resulting in a char bed deposit that can be regenerated backing into fresh cooking liquor chemicals. Heat from the combustion process is used to co-generate steam used in the process and electricity via turbo-generators. Today's mills produce on the average 60% of their power from wood residuals and spent pulping liquors.

Cellulosic Pathways to Bioenergy

Rather than burning these high volumes of spent cooking liquors directly in recovery boilers, integrated biorefineries can process them into an array of value-added cellulosic biofuels, including ethanol, various synthetic gases (syngas), synthetic crude oil and biodiesel. These fuels could be used to offset petroleum-based fuels being burned in the mill and/or to sell as transportation/motor fuels.

There are as many as 12 clearly defined pathways into integrated biofuel/bioproduct production at pulp and paper mills. These include the thermochemical approaches that generally involve gasification of either biomass and/or spent cooking liquor streams alone or in combination with advanced gas-to-liquid technologies such as Fischer-Tropsch-based systems, and various pyrolysis techniques involving fluidized bed boilers.

Other pathways involve established sugar platforms and value-prior-to-pulping (VPP) approaches, where hemicellulose content is extracted before cooking of wood chips in digesters in various ways, such as cooking in pure water to produce a "prehydrolyzate" that can be fermented to mixed alcohols or gasified to produce a syngas.

The American Forest and Paper Association (AF&PA) recently conducted a detailed study of the most feasible routes to integrated biofuel production at pulp and paper mills, versus stand-alone cellulosic biorefineries, as part of its Agenda 2020 program. This study is detailed in a two-part series of reports just completed in the July issue of Paper360° magazine, the official publication of TAPPI (the Technical Association of the Pulp and Paper Industry) and PIMA (the Paper Industry Management Association).

A committee of Agenda 2020 CTO's, representing 90%-plus percent of chemical pulp producers in the U.S., evaluated four general pathways that appear to be most likely for chemical pulp and paper mills based on existing infrastructures and operations. This study focuses basically on thermochemical approaches as being the most feasible, and looks generally at four related pathways.

The business case discussed in the AF&PA report is based on a post-2010 gasification biorefinery operation at a kraft pulp and paper mill as described in a recent report by Princeton University. The reference mill is in the Southeastern U.S. and produces 1,580 dry tpd of kraft pulp using a 65/35 mix of hardwood and softwood.

Compelling Payoff Potential

The main economic benefits of biorefining in the cases outlined by AF&PA for this reference mill include additional revenues from sale of synthetic fuels (511 tpd of dimethyl ether to be used as an LPG (propane) blend stock, or 2,362 barrels per day of petroleum equivalent or 4,757 barrels per day petroleum equivalent of Fischer-Tropsch synthetic crude oil for refining to diesel and gasoline blendstocks at petroleum refineries), as well as a savings of 226 tons per day of pulpwood due to increased pulp yield, and slightly overall lower steam use.

Considering that there are 200 or more similar chemical pulp mills in the U.S., and at least an additional 100 in Canada, basic arithmetic shows this barrelage capacity for Fischer-Tropsch synthetic crude oil could total somewhere upwards of 420 million barrels per year, or between 15 and 20 billion gallons per year for the entire North American pulp and paper industry, based on existing infrastructure and operations only, without adding any new capacity.

This is a very significant potential considering that the President's 2007 renewable fuel standard (RFS) is 36 billion gal/yr by 2022, and that at least 21 billion gallons of this are to be obtained from cellulosic ethanol and other advanced biofuels. This clearly indicates that the forest products industry, and pulp and paper mills in particular, are in a very unique position to help meet this critical national challenge.

TAPPI Bioenergy Conference

These issues, and specifically the AF&PA position paper study, will be explored in considerable detail at the TAPPI International Bioenergy and Bioproducts Conference (IBBC) to be held in late August in Portland, Oregon.

The 2008 Technical Conference Program features 14 sessions that will take attendees through an in-depth analysis of where the industry currently is on the biorefinery front to where it will be in the next five years and beyond. A key issue underlying all sessions is the immediate need to attract investment community involvement on an on-going basis. The intensive program explores not only the latest biorefinery technologies, but also developing markets and the legal-legislative-investment sides of the bioenergy/bioproducts equation

The IBBC program includes several sessions that examine biorefinery approaches already in commercial operation, with from-the-field updates by those "already doing it." Systems technologies being reported in these sessions cover pyrolysis, gasification/gas-to-liquid, acid hydrolysis, enzymatic, and other fermentation-based approaches.

Ken Patrick is Senior Editor for TAPPI and PIMA's Paper360° magazine.

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July 1, 2009

Ag and Forestry Provisions in Waxman/Markey ACES bill

The Waxman/Markey American Clean Energy and Security Act (ACES) narrowly passed through the House vote on June 26. It would not have passed if the authors had failed to accede to the amendments insisted upon by Agriculture Committee Chairman Collin Peterson (D-MN). What are the provisions?

Below is a condensed explanation of the key provisions agreed to by bill sponsor Henry Waxman (D-CA) as reported by the Environmental and Energy Study Institute (EESI). Aside from securing approximately support of 45 Democrats who would have voted against the bill without the compromise, the ACES bill is much more likely to achieve its stated objective of creating more green jobs, stimulating investment and local economies, and contributing to greenhouse gas emission reductions.

Should these provisions survive Senate deliberations, it also would reverse the polarizing language of the 2007 EISA which severely reduced the availability of qualifying biomass feedstock for bioenergy projects.

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Democrats Strike Deal With Agriculture on Climate Bill

On June 23, Democrats in the House of Representatives announced that they had reached a deal on several key agricultural concerns in the American Clean Energy and Security Act (ACES) (H.R. 2454). The deal, struck with Chairman of the Energy and Commerce Committee and bill sponsor Henry Waxman (D-CA), included the following key provisions:

1) The agricultural and forestry sectors will be fully exempted from carbon emissions caps.

2) Oversight of the domestic agricultural and forestry offsets program would be moved from the EPA to the USDA. Under these provisions, farmers could sell carbon credits in exchange for practices that reduce agricultural greenhouse gas emissions or store carbon in the soil and vegetation. Supporters believe that the USDA is in a better position to implement such a program effectively, while critics fear that the USDA will be more lax than the EPA in determining which practices actually reduce carbon emissions. For the time being, the role of the EPA in implementing the offsets program will remain undefined, subject to future guidance from the Obama administration.

3) The renewable fuel standard in the Energy Independence and Security Act of 2007 requires the EPA to conduct a life cycle assessment of greenhouse gas emissions attributed to indirect land use changes around the world caused by the production of biofuels in the United States. Under the agreement, this assessment would be put on hold for the next five years while the National Academy of Sciences conducts a study of the scientific basis and methodologies used in conducting such assessments.

4) The definition of renewable biomass would be expanded to include a much larger portion of available woody biomass on both federal and non-federal lands, and the definition of renewable biomass would be similarly amended for purposes of implementing the renewable fuel standard.

President Obama spoke in favor of the bill on Tuesday, saying it “will spark a clean energy transformation that will reduce our dependence on foreign oil and confront the carbon pollution that threatens our planet.”

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SUSTAINABLE FOREST BIOMASS

Over the past two years, EESI has undertaken a project to assess the state of woody biomass utilization and to develop a suite of policy recommendations intended to promote woody biomass as part of the sustainable forestry paradigm.

After soliciting the opinions of a diverse group of foresters, researchers, NGOs, civic officials, as well as forest industry stakeholders, EESI has put together a well-documented policy paper that is balanced in the areas of environmental, economic, and soclal sustainability.
Although sustainability should be a cornerstone of federal biomass policy, it is important that federal laws and programs do not include highly prescriptive (or proscriptive) rules for where biomass can be harvested, for what purposes, or in what quantities.

It includes a call to evaluate the true comparative costs of various energy paradigm solutions whereby the lifecycle assessment of new approaches are compared not only with each other, but also with a fair assessment of costs and liabilities of the current fossil paradigm.

To view the entire policy paper written by EESI veteran Jesse Caputo, go to Sustainable Forest Biomass: Promoting Renewable Energy and Forest Stewardship.

June 21, 2008

Georgia's Energy Innovation Center: An interview with Director Jill Stuckey

In April, 2008, Georgia Governor Sonny Perdue established six "innovation centers" to focus executive activity in industries perceived to be of key importance to the future of the state. One of these is the Energy Innovation Center (EIC). The primary goal of the EIC will be to increase production and use of renewable energy and biofuels in Georgia by utilizing natural resources, locally grown feedstocks, agricultural and industrial byproducts, solar energy, wind power and other renewable energy alternatives.

“The state of Georgia is quickly becoming a recognized leader in alternative energy and fuel,” said Governor Sonny Perdue. “Our goal is to develop a bioenergy industry that provides substantial economic benefit to Georgia and produces 15 percent of the state’s transportation fuels by 2020 from locally produced biofuels.”

At this past week's huge BIO International convention in San Diego, I had the privilege of shaking hands with Governor Perdue and the pleasure of interviewing his Director of the Energy Innovation Center, the dynamic and engaging Jill Stuckey.
“The governor wants a complete circle when it comes to energy development and production in Georgia,” said Stuckey. “Our goal is to grow the feedstocks, produce the fuel, and use our own energy. Designating energy as a focus of one of the Centers of Innovation allows us to harness the power of our resources under one roof.”

Jill is not a newcomer to energy innovation. Prior to this role she was in charge of Alternative Energy in the state.
"When Rita and Katrina hit I was one of the ones who had to try to find fuels when there weren't any coming in through the pipelines from the Gulf. In metro Atlanta, that's where our fuel comes from.

"People don't realize that two thirds of our tank capacity in the world is in our gasoline tanks in our vehicles. Only one third is in our gasoline terminals, gas stations and their tanks. When there is a scare and everyone runs to the gasoline stations, we run out. We want to see fuel developed within our state to increase our self-reliance during crises - whatever they are."

"What the Governor would like to see is that we raise the feedstocks, we produce the fuels there, and we use it there. We would love to see that, when we drive to the pumps, the fuel is coming from 75 miles away from people we know rather than 5,000 miles away from folks that might not like us very well. Not to mention the economic development difference of having a factory right within our community instead of sending it to a foreign country."

I asked Jill several questions about Georgia's longterm commitment to biofuels and its various feedstocks for biomass conversion.

What is Georgia's attitude toward corn ethanol?
"If it wasn't for corn ethanol, gasoline prices could well be 20% higher than they are today. Lots of people are growing corn now. We have doubled our corn acreage in the state of Georgia since a year or so ago. We have a 100 million gallon ethanol facility that will be starting up this Fall. "

What about cellulosic ethanol from wood as a feedstock?
"We have 12 million acres of plantation forests in the state of Georgia. That's our crop. We know how to manage it, we know how to use it. Just about all the industry that I have spoken to is very anxious to look at the next generation utilizing pine for something other than paper - but still embracing that industry."

Back in November, the Governor joined the U.S. Department of Energy Secretary, the Under Secretary of Agriculture and renowned investor, Vinod Khosla for the groundbreaking of the Range Fuels facility in Soperton, GA. What is the commitment of Georgia's government to cellulosic ethanol from woody biomass?
"The Governor came in and was very excited about the groundbreaking and the opportunity for Georgia and the potential for this company. He is very committed to this industry.

"The Range Fuels facility was able to acquire their environmental permit within 76 days. He had an executive order stating that we would turn it in 90 days once we had a completed application and we beat that. He has also passed legislation that gave them tax-free on all their bricks and mortar materials. A lot of the machinery was already tax-exempt but he passed that for all alternative fuels companies. He is very committed to that and I don't see any of that is going to change. I wouldn't be surprised to see more legislation passed to help these companies."

What about succeeding Georgia administrations? Can investors and timberland owners be confident that policies set today will last for the next generation?
"All the upcoming candidates for Governor are interested in alternative fuels and alternative energy as well as the existing pulpwood industry. That industry has a lot of potential with a big headstart if they were to get involved with these projects. I have seen considerable interest in that industry."

What do you think about hybrid trees and energy crops?
"People talk a lot about switchgrass. The numbers I've heard are $80-$100 per ton for that. Wood is less than half of that. We have 12 million acres of plantation pines sitting in Georgia, ready today. We are doing some work with the polonia tree because it grows three times faster than a pine tree. It doesn't have the saps that are inhibitors for the ethanol process.

"We are always looking toward the next generation working with people like Arbogen. We are trying to find the most tons per acre the fastest we can grow. The pines are so great - they don't need a lot of water, you don't have to cultivate them like you do with most other crops. If we don't want to harvest them today we can harvest them next month. It's such a no-brainer."

In the face of mainstream media confusion and disinformation moving forward requires stakeholder engagement and public outreach to make sure that all sectors of Georgia are ready for the changes ahead. How is that being handled?
"That's one thing the Herty Foundation is trying to do - to gather all the powers to be in Georgia and the landowners. They are trying to explain what they see the future is going to be - selling their wood and how to grow it, and explaining that they may not be selling by green ton but by BTU or moisture content - and try to get them to think about how the future is going to be for wood-to-energy as well as wood-to-paper."

The controversial U.S. Senate staff redrafting of the definition of qualifying biomass feedstock in the 2007 EISA (Energy Independence and Security Act) could be interpreted to exclude Georgia woody biomass. What can Georgia's political leaders do to insure that federal law does not infringe on state's management over their own resources?
"From the state's standpoint we have been very involved in that issue from our state forestry commission as well as we are working with our landowners because they are very concerned about that issue. We are very vocal in Washington working with our elected officials in Washington to help any way we can."

"We need to hurry up and try to get this figured out."

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