BTL, Biodiesel, Refinery,2G

1. Bio Energy: BTL
Indian Policy on Biofuels
 An indicative target of 20% blending of Biofuels both for biodiesel and bioethanol by 2017
 Biodiesel production from non-edible oilseeds on waste, degraded and marginal lands to be
encouraged
 A Minimum Support Price (MSP) to be announced for farmers producing non-edible oilseeds
used to produce biodiesel
 Financial incentives for new and second generation Biofuels, including a National Biofuels Fund
 Setting up a National Biofuels Coordination Committee under the Prime Minister for a broader
policy perspective
 Setting up a Biofuels Steering Committee under the Cabinet Secretary to oversee policy
implementation
 Several ministries are involved in the promotion, development and policy making for the
Biofuels sector
 The Ministry of New and Renewable Energy is the overall policymaker, promoting the
development of biofuels as well as undertaking research and technology development for its
production
 The Ministry of Petroleum and Natural Gas is responsible for marketing biofuels and developing
and implementing a pricing and procurement policy
 The Ministry of Agriculture’s role is that of promoting research and development for the
production of Biofuels feedstock crops
 The Ministry of Rural Development is specially tasked to promote Jatropha plantations on
wastelands
 The Ministry of Science & Technology supports research in Biofuels crops, specifically in the
area of biotechnology
Recent Developments:
The Union Cabinet has approved the following decisions related to Bio-ethanol and Biodiesel for
implementation of National Policy on Biofuels;
 Sugarcane or sugarcane juice may not be used for production of ethanol and it be produced
only from molasses
 Ethanol produced from other non-food feed-stocks besides molasses like cellulosic and
lignocelluloses materials and including petrochemical route, may be allowed to be procured
subject to meeting the relevant BIS standards
 The MS and HSD control order dated 19.12.2005 may be suitably amended to acknowledge
private biodiesel manufacturers, their authorized dealers and JVs of OMCs authorized by
Ministry of Petroleum and Natural Gas (MoPNG) as Dealers and give Marketing / distribution

2. functions to them for the limited purpose of supply of bio-diesel to consumers. The supply will
be made as per quality standards applicable and prescribed by the MoPNG
 Relaxation in Marketing resolution No.P-23015/1/20001-Mkt.dated 08.03.2002 and a new
clause be added to give marketing rights for B100 to the Private biodiesel Manufacturers,
their authorised dealers and JVs of OMCs authorised by MoPNG for direct sales to
consumers
 The price of bio-diesel will be market determined
India biodiesel consumption was at level of 1.7 thousand barrels per day in 2016, unchanged
from the previous year
Date Value Change, %
2016 1.70 0.00 %
2015 1.70 21.43 %
2014 1.40 -36.36 %
2013 2.20 4.76 %
2012 2.10 5.00 %
2011 2.00 5.26 %
2010 1.90 280.00 %
2009 0.50 150.00 %
2008 0.20 0.00 %
2007 0.20 -50.00 %
2006 0.40 100.00 %
2005 0.20
India is a diesel-deficit nation and demand has far outstriped supply. India's diesel production will not
be able to keep pace with the rapidly growing demand. Government's pricing policy allows oil
companies to decide prices. Diesel is not much cheaper than petrol any more. Diesel demand in the
country is growing at an annual rate of 8%. At this rate India will need a brand new 9 Million Tons per
year refinery every year. The automobile industry has estimated that the share of diesel vehicles, in
overall vehicle sales has crossed the 40% mark. The price of fuels is now going to be in line with price
of crude oil. Hence the Petrol and Diesel prices are now in line with international price levels, which
makes BioDiesel economically attractive.
Indian BioDiesel Policy was announced on 23r d
Dec 2009. BioDiesel Policy gives a rough guideline, which
was actually proposed many years back. Main stumbling blocks are still not resolved. There are no
Figures or Financial commitments. Some of the points are
1. The Minimum Purchase Price (MPP) for BioDiesel by the Oil Marketing Companies (OMCs) will be
linked to the prevailing retail diesel price.
2. Financial incentives, including subsidies and grants for BioDiesel, may be considered based on
merits for new and second generation feed stocks, advanced technologies and conversion
processes for BioDiesel, and production units of BioDiesel, based on new and second generation
feed stocks.
3. Bio-ethanol already enjoys concessional excise duty of 16% and biodiesel is exempted from
excise duty. No other Central taxes and duties are proposed to be levied on BioDiesel and bio-
ethanol.
4. Import of Free Fatty Acid (FFA) oils will not be permitted for production of BioDiesel.

3. India's biodiesel processing capacity is estimated at 600,000 tons per year. The government
owned Oil Marketing companies had floated tenders again and again to buy 840 million liters of
BioDiesel. However there are few interested suppliers. They prefer to sell directly to
consumers or export, rather than selling to oil marketing companies in India.
BioDiesel in India was virtually a non-starter in past. There are many reasons for that. The Main
Reasons are non-availability of used vegetable oil, very strict Indian Biodiesel Standard (IS
15607 : 2005) and Government's Policies. Tenders for BioDiesel are likely to Fail again and
again, due to
1. Non Availability of Oil
o In India Edible oils are in short supply, and country has to import up to 40% of its
requirements (import is now partly offset by Bumper Crop of Soy). Hence prices of
edible oils are higher than that of Petroleum Diesel. Due to this, these are not viable
and hence use of non-edible oils was suggested for BioDiesel manufacture.
o Even though the consumption of Edible oils in India is high, the availability of used
cooking oil is very small as used cooking oil is used till the end.
o Indian Culture uses vegetable oil lamps for lighting in homes and in temples (like
candles in other cultures). When prices of edible oil shot up, some people turned to a
bit cheaper non-edible oils. The requirement of this sector is more than 15 million tons
(BioKerosine). Since non edible oil seeds can be collected and crushed, using hand
operated expellers, in a small scale in far flung villages, the use of non-edible oils for
lamps is picking up very fast. This is the best way of use for millions of Rural Indians.
This is depriving BioDiesel industry its supply of oil.
o All over the world Edible oils are used for manufacture of BioDiesel. These are Rape
seed oil in Europe, Soy oil in Americas and Palm oil in South East Asia. Rape seed and
soy are grown for its de-oiled meal as cattle feed and oil is not that important. Hence
these oils were in excess in past, and had to be disposed off at lower prices. Hence
initially edible oil was a viable raw material for BioDiesel manufacture and a lot of
manufacturing units came up in US and Europe, based on these oils. Now excess oil is
commited, and fresh sources need to be developed.
o Collection of non-edible oil seeds is a manual operation, and for large BioDiesel plant
collection is a logistical nightmare. In a day, a person can collect up to 80 kilograms of
seeds, which can produce 20 to 23 liters of oil. The collection is done for 3 months,
once every year. For a 100 tons per day (8 million gallons per year) BioDiesel plant, you
need 15,000 people to collect the seeds. Collecting and organizing such a large part
time manpower is a challenge.
o The price of Seeds of Jatropha was very high because most of seeds are used for
plantation purposes. At this price, the manufacturing cost of BioDiesel is 3 times the
pump price of Petroleum Diesel. Prices are down now and oil is viable as a substitute
for kerosine.
o Most of the edible oils used currently for manufacture of BioDiesel, are Stable (do not
get rancid). These do not decompose much on storage. Hence these are preferred for
Trans-Esterification Process. Non-Edible oils are not that stable, and need a lot of pre-
treatment adding to the cost of manufacture of BioDiesel. These oils with 50% free
fatty acids can be used as lamp oil.
o The use of lamp oil is increasing rapidly in India, as there is no electrical power supply
for 10 to 14 hours a day in rural areas. Soon people will face shortage of these oils for
lighting purposes.
o Cottage Washing soap industry can use vegetable oils with high free fatty acid contents
(Acid Oils). Since prices of edible oils have doubled, many soap manufacturers in
unorganized sector are using these Acid Oils as these are a bit cheaper.
o There are billions of other trees (Karanj, Mahua, Neem), all over India, with oil bearing
seeds. Traditionally Karanj (Pongamia Pinatta) is planted along the Highways, Railways
and Canals to stop erosion of soil. Petrol Pump owners along the highways, buy these
oils, pack them in 1 liter bottles and sell as fuel additive. Neem (Azadirachta Indica) is

4. planted everywhere for purification of air. Mahua (Madhuca Indica) and Sal (Shorea
robusta) grows wildly in Forests. Collection and Processing mechanism for these seeds
is not yet fully developed. Hence most of these seeds lie on the ground (and ultimately
get converted into BioFertilizer).
2. Government's Policies
o Government of India started BioDiesel mission in 2003, but BioDiesel mission announced
BioDiesel Policy on 11th
September 2008. The Union Cabinet in its meeting gave its
approval for the National Policy on BioDiesel prepared by the Ministry of New and
Renewable Energy, and also approved for setting up of an empowered National
BioDiesel Coordination Committee, headed by then Prime Minister of India and a
BioDiesel Steering Committee headed by Cabinet Secretary.
Ministry of New and Renewable Energy has been given the responsibility for the
National Policy on BioDiesel and overall co-ordination by Prime Minister under the
Allocation of Business Rules. A proposal on “National Policy on BioDiesel & its
Implementation” was prepared after wide scale consultations and inter-Ministerial
deliberations. The draft Policy was considered by a Group of Ministers (GoM) under the
Chairmanship of Union Minister of Agriculture, Food & Public Distribution. After
considering the suggestions of Planning Commission and other Members, the Group of
Ministers recommended the National BioDiesel Policy to the Cabinet.
Salient features of the National BioDiesel Policy :
1. An indicative target of 20% by 2017 for the blending of biofuels (Bioethanol and
BioDiesel) was proposed. (Even 1% is not achieved)
2. BioDiesel production will be taken up from non-edible oil seeds grown in waste
/ degraded / marginal lands. (This has Failed)
3. The focus would be on indigenous production of BioDiesel feedstock and import
of Free Fatty Acid (FFA) of oils, such as palm oil etc. would not be permitted.
(Due to this, raw material is not available)
4. BioDiesel plantations on Community / Government / Forest waste lands would
be encouraged while plantation in fertile irrigated lands would not be
encouraged. (This has Failed)
5. Minimum Support Price (MSP) with the provision of periodic revision for oil
seeds for BioDiesel manufacture, would be announced to provide fair price to
the growers. The details about the MSP mechanism, enshrined in the National
Biofuel Policy, would be worked out carefully subsequently and considered by
the BioDiesel Steering Committee. (This has Failed due to non remunerative
price offered by the oil marketing companies)
6. Minimum Purchase Price (MPP) for the purchase of bio-ethanol by the Oil
Marketing Companies (OMCs) would be based on the actual cost of production
and import price of bio-ethanol. In case of BioDiesel, the MPP should be linked
to the prevailing retail diesel price. (This was not done)
7. The National Biofuel Policy envisages that bio-fuels, namely, BioDiesel and Bio-
ethanol may be brought under the ambit of “Declared Goods” by the
Government to ensure unrestricted movement of biofuels within and outside
the States. It is also stated in the Policy that no taxes and duties should be
levied on bio-diesel.
First Generation Biofuels -
'First-generation Biofuels' are Biofuels made from sugar, starch, vegetable oil or animal fats using
conventional technology. The basic feedstock's for the production of first generation Biofuels are often
seeds or grains such as sunflower seeds, corn or soybeans which are pressed to yield vegetable oil that
can be used for producing biodiesel. These feedstock's could instead enter the animal or human food

5. chain, and as the global population has risen their use in producing Biofuels has been criticised for
diverting food away from the human food chain, leading to food shortages and price rises.
Second Generation Biofuels -
Second-generation Biofuels use non-food crops as the feedstock; these include waste biomass, the
stalks of wheat, corn, wood, and special-energy-or-biomass crops (e.g. Miscanthus). Second generation
(2G) Biofuels use biomass to liquid technology, including cellulosic Biofuels. Many second generation
Biofuels are under development such as biohydrogen, biomethanol, DMF, Bio-DME, Fischer-Tropsch
diesel, biohydrogen diesel, mixed alcohols and wood diesel. Cellulosic ethanol production uses non-
food crops or inedible waste products and does not divert food away from the animal or human food
chain. Lignocelluloses is the "woody" structural material of plants. This feedstock is abundant and
diverse, and in some cases (like citrus peels or sawdust) it is in itself a significant disposal problem.
Third Generation Biofuels -
Algae fuel, also called oilgae or third generation Biofuels, is a Biofuels from algae. Algae are low-input,
high-yield feedstock's to produce Biofuels. Based on laboratory experiments, it is claimed that algae
can produce up to 30 times more energy per acre than land crops such as soybeans, but these yields
have yet to be produced commercially. With the higher prices of fossil fuels (petroleum), there is much
interest in alga culture (farming algae). One advantage of many Biofuels over most other fuel types is
that they are biodegradable, and so relatively harmless to the environment if spilled. Algae fuel still
has its difficulties though, for instance to produce algae fuels it must be mixed uniformly, which, if
done by agitation, could affect biomass growth.
The high volatility in fuel prices in the recent past and the resulting turbulence in energy markets has
compelled many countries to look for alternate sources of energy, for both economic and
environmental reasons
Second generation Biofuels are also known as advanced Biofuels. What separates them from first
generation Biofuels the fact that feedstock used in producing second generation Biofuels are generally
not food crops. The only time the food crops can act as second generation Biofuels is if they have
already fulfilled their food purpose. For instance, waste vegetable oil is a second generation Biofuels
because it has already been used and is no longer fit for human consumption. Virgin vegetable oil,
however, would be a first generation Biofuels.
Because second generation Biofuels are derived from different feed stock, Different technology is often
used to extract energy from them. This does not mean that second generation Biofuels cannot be
burned directly as the biomass. In fact, several second generation Biofuels, like Switch grass, are
cultivated specifically to act as direct biomass.
Second Generation Extraction Technology
For the most part, second generation feedstock are processed differently than first generation biofuels.
This is particularly true of lignocelluloses feedstock, which tends to require several processing steps
prior to being fermented (a first generation technology) into ethanol. An outline of second generation
processing technologies follows.
Thermo chemical Conversion
The first thermo chemical route is known as gasification. Gasification is not a new technology and has
been used extensively on conventional fossil fuels for a number of years. Second generation
gasification technologies have been slightly altered to accommodate the differences in biomass stock.
Through gasification, carbon-based materials are converted to carbon monoxide, hydrogen, and carbon

6. dioxide. This process is different from combustion in that oxygen is limited. The gas that result is
referred to as synthesis gas or syngas. Syngas is then used to produce energy or heat. Wood, black
liquor, brown liquor, and other feedstock are used in this process.
The second thermo chemical route is known as pyrolysis. Pyrolysis also has a long history of use with
fossil fuels. Pyrolysis is carried out in the absence of oxygen and often in the presence of an inert gas
like halogen. The fuel is generally converted into two products: tars and char. Wood and a number of
other energy crops can be used as feedstock to produce bio-oil through pyrolysis.
A third thermo chemical reaction, called torrefaction, is very similar to pyrolysis, but is carried out at
lower temperatures. The process tends to yield better fuels for further use in gasification or
combustion. Torrefaction is often used to convert biomass feedstock into a form that is more easily
transported and stored.
Biochemical Conversion
A number of biological and chemical processes are being adapted for the production of biofuel from
second generation feedstock. Fermentation with unique or genetically modified bacteria is particularly
popular for second generation feedstock like landfill gas and municipal waste.
Common Second Generation Feedstock
To qualify as a second generation feedstock, a source must not be suitable for human consumption. It
is not a requirement that the feedstock be grown on non-agricultural land, but it generally goes
without saying that a second generation feedstock should grow on what is known as marginal land.
Marginal land is land that cannot be used for “arable” crops, meaning it cannot be used to effectively
grow food. The unspoken point here is that second generation feedstock should not require a great
deal of water or fertilizer to grow, a fact that has led to disappointment in several second generation
crops.
Grasses
A number of grasses like Switch grass, Miscanthus, Indian grass, and others have alternatively been
placed in the spotlight. The particular grass chosen generally depends on the location as some are
more suitable to certain climates. In the United States, Switch grass is favoured. In Southeast Asia,
Miscanthus is the choice.
The advantages of grasses are:
 They are perennial and so energy for planting need only be invested once
 They are fast growing and can usually be harvested a few times per year
 They have relatively low fertilizer needs
 They grow on marginal land
 They work well as direct biomass
 They have a high net energy yield of about 540%
The disadvantages of grasses are:
 They are not suitable for producing biodiesel
 They require extensive processing to made into ethanol
 It may take several years for switch grass to reach harvest density

7.  The seeds are weak competitors with weeds. So, even though they grow on marginal land, the
early investment in culture is substantial
 They require moist soil and do not do well in arid climates.
Water demands are the biggest drawback to grasses and the factor that keeps them from becoming
more popular as second generation Biofuels. Despite this shortcoming, grasses do find a number of
uses, particularly in India.
Jatropha and other seed crops
Seed crops are useful in the production of biodiesel. In the early Part of the 21st century, a plant
known as Jatropha became exceedingly popular among biodiesel advocates. The plant was praised for
its yield per seed, which could return values as high as 40 percent. When compared to the 15 percent
oil found in soybean, Jatropha look to be a miracle crop. Adding to its allure was the misconception
that I could be grown on marginal land. As it turns out, oil production drops substantially when
Jatropha is grown on marginal land. Interest in Jatropha has waned considerably in recent years.
Other, similar seed crops have met with the same fate as Jatropha. Examples include Cammelina, Oil
Palm, and rapeseed. In all cases, the initial benefits of the crops were quickly realized to be offset by
the need to use crop land to achieve suitable yields.
Waste Vegetable Oil (WVO)
WVO have been used as a fuel for more than a century. In fact, some of the earliest diesel engines ran
exclusively on vegetable oil. Waste vegetable oil is considered a second generation biofuels because its
utility as a food has been expended. In fact, recycling it for fuel can help to improve its overall
environmental impact.
The advantages of WVO are:
 It does not threaten the food chain
 It is readily available
 It is easy to convert to biodiesel
 It can be burned directly in some diesel engines
 It is low in sulphur
 There are no associated land use changes
The disadvantages of WVO are:
 It can decrease engine life if not properly refined
WVO is probably one of the best sources of biodiesel and, as long as blending is all that is required, can
meet much of the demand for biodiesel. Collecting it can be a problem though as it is distributed
throughout the world in restaurants and homes.
Municipal Solid Waste
This refers to things like landfill gas, human waste, and grass and yard clippings. All of these sources of
energy are, in many cases, simply being allowed to go to waste. Though not as clean as solar and wind,
the carbon footprint of these fuels is much less than that of traditionally derived fossil fuels. Municipal
solid waste is often used in cogeneration plants, where it is burned to produce both heat and
electricity.

8. When it became obvious that current food crops did not make suitable feedstock for biofuel (because
using them threatened the food supply and required too many limited resources like water), the world
began to look for alternative feedstock. Facilities that produce biofuel from these “new” feedstock are
called second generation biofuel producers.
Some of the major second generation producers:
Algenol, United States : Algenol was founded in 2006 with the goal of producing ethanol directly from
algae though a processes that allows the ethanol to be harvested without killing the organism. This
process promises to be the “greenest” and most environmentally sound way of producing biofuel and
may be a major step in solving the problem of net carbon production.
Blue Marble Energy, United States : Founded in 2005, Blue Marble is a company that uses non-
modified (not genetically manipulated) bacteria to produce biochemicals and biogas. The company has
set the lofty goal of replacing all oil with fully renewable, carbon-neutral alternatives. The biomass is
cellulosic biomass of “just about any kind.”
Chemrec, Sweden : Based in Sweden, this company produces technology that allows for the
gasification of liquors (waste from paper mills) into syngas, which is then converted to other biofuels.
The company’s methodology has a very high greenhouse gas reduction quality, making it attractive for
addressing the environmental aspects of paper production and increasing overall efficiency of the
process.
DuPont Danisco, United States: This company is a 50/50 joint venture between DuPont and Danisco. It
focuses on the production of cellulosic ethanol from non-food biomass. It operates a demonstration
scale biorefinery in Tennessee.
Fujian Zhongde Energy Co., Ltd, China: Based in Fuqing City, this company specializes in the
production of biodiesel from waste vegetable oil. The company also produces chemicals and even
asphalt-like material from vegetable oil.
Gevo, United States: Gevo produces “renewable chemicals” and advanced biofuels through a
fermentation process. The company focuses primarily on the production of isobutanol, which has
application in about 40% of the market where petrochemicals are traditionally used.
Gushan Environmental Energy, China: Gushan produces biodiesel and byproducts of it from a variety
of feedstock such as vegetable oil, animal fat, and cooking oil. It operates five facilities in China and
has a production capacity of 400,000 tons of biodiesel annually.
Joule Unlimited, United States: Joule Unlimited produces alternative hydrocarbon using a process that
includes cyanobacteria, carbon dioxide, and non-fresh water. The company began construction in 2011
on a plant that promises to produce 20,000 gallons of fuel per acre using algae.
PetroSun, United States: PetroSun is a traditional oil and gas exploration company that also works
with algae. The company uses an interesting approach in which organic matter is burnt to produce
carbon dioxide and charcoal, which are used as algae feedstock and fertilizer, respectively.
Sapphire Energy, United States: Sapphire Energy produces oil from algae that is completely
compatible with existing petroleum infrastructure. Gasoline produced from this algal petroleum has an
octane rating of 91.

9. Solazyme, United States: Solazyme uses algae to produce fuel for ground and air transport as well as
skin and personal care products. The company has multiple contracts and joint ventures for distributing
its aviation and ground transport fuels.
Case Studies of Bio economy:
Rotterdam Port for Bio Feedstock’s:
Home to one of the world's leading petrochemical clusters, the port and surrounding area boast 10
refineries sporting a combined annual capacity of 914 million barrels of oil that account for nearly
one-quarter of the port's total cargo throughput. Six are at least partially owned by multinationals
such as ExxonMobil, BP, and Royal Dutch Shell, while Russian companies Lukoil and Rosneft have
direct stakes in two. Everyone that is anyone in petroleum operates in or near Rotterdam, but that
could soon be true for renewable energy and renewable chemical companies, too.
Petroleum will remain king for the port, but billions of dollars have been invested to build new
renewable chemical, biofuel, and renewable diesel manufacturing sites -- literally in the shadows of
oil refineries. The low-cost blueprint for renewable chemical production pioneered by Rotterdam
could have big effects on the future of your investments in renewable industries.
How do you build a bioport?
Built in the 14th century, the Port of Rotterdam was the world's busiest and largest port between 1962
and 2002. Its four-decade reign was forfeited to rising economic powers in Asia -- and it has been
sliding down the global rankings every year since. Rotterdam is still a massive port, however. In fact,
it's the only of the 10 largest ports on planet Earth located outside of Asia. And the port's
petrochemical cluster is rivaled only by those in the U.S. Gulf Coast, India, and South Korea.
But to future-proof and insulate growth from volatile fossil fuel markets, management has
dedicated land to a new biochemical cluster and championed Rotterdam's value proposition to
renewable chemical manufacturers. Here's what is envisioned for the dedicated bioport.
Step One: Biomass and storage
It's a simple rule: petrochemicals use petroleum as their starting input, or feedstock, while
biochemical’s use some form of biomass. (The broader category of renewable chemicals can use solid
waste, purified carbon dioxide, or even recycled materials as feedstock’s.) While you might be aware
of the cheap sugarcane of Brazil -- the green chemical field's favorite feedstock -- you might not know
that sugar beets in the Netherlands are actually the world's cheapest source of sugar. I sure didn't.
So it's no wonder global agricultural leaders have a major presence in the region. Archer Daniels
Midland and Cargill might be more familiar to investors for their massive stakes in the American Corn
Belt, but they're no stranger to Rotterdam. The former owns 2.4 million metric tons of unrefined oils
capacity at the port, along with a major biomass terminal for soy and rapeseed shipments.

10. Despite being America's largest ethanol producer, Archer Daniels Midland does not currently
operate any Biofuels manufacturing capacity in the port. However, the company does own 16.4%
of Wilmar International, which owns nearly 2 million metric tons of edible oils that are processed
by the various renewable diesel and biodiesel facilities in the cluster. The two companies own a
large chunk of Rotterdam's total capacity.
Renewable Product (# of Facilities) Annual Capacity
Palm oil refineries (4) 3.5 million MT (production)
Biofuels facilities, diesel and ethanol (4) 2.0 million MT (production)
Biochemical facilities (2) 200,000 MT (production)
Vegetable Oil 8 million MT (throughput)
Agricultural bulk 10 million MT (throughput)
Biomass gets a green chemical company's attention, but there's plenty more to consider before
spending tens or hundreds of millions of dollars on new manufacturing capacity.
Step Two: Logistics
Good news: Having five oil refineries in the heart of the port means little additional infrastructure is
required at a new facility's expense. When companies such as ExxonMobil nestled into Rotterdam and
gradually expanded operations, they funded large capital expenditure projects to build the utilities,
roads, and storage terminals they needed. That gives the biochemical cluster instant access to
international trade routes via railroads, highways, and seaways, in addition to plug-and-play potential
for utilities. In fact, the Port of Rotterdam doesn't expect any new facilities to spend one penny on
utilities infrastructure.
It might be easy to take utilities at new manufacturing plants for granted, but it's not always so easy.
For instance, several companies that sprinted into Brazil to gain access to cheap and abundant
sugarcane have had difficulty hooking up to the grid. During its third-quarter conference
call, Solazyme announced that its 100,000-metric-ton per year renewable oils facility in rural Moema,
Brazil, wasn't fully integrated with the grid; the company acknowledged it would take until the second
half of 2015 to sync up. Companies at Rotterdam should have no such problem.

11. Step Three: Production
Bountiful, cheap biomass turned some heads and robust logistical planning landed some deals, but now
companies must begin production. The Port of Rotterdam offers facilities for all stages of
commercialization -- laboratory, pilot, demonstration, and commercial -- and plots ranging from 2
hectares to over 20 hectares. Progress in production has come swiftly.
While only biodiesel and ethanol production is operational at the moment, Rotterdam is close to
starting production at four biopolymer and biochemical facilities. And if that wasn't enough renewable
tech for you, consider that the port is home to nearly 3 gigawatts of biomass co-firing (biomass and
coal) and 150 megawatts of wind power generation capacity. Once all facets of the biobased value
chain are running, it's possible that chemicals produced at the world's former busiest port will be the
greenest in world -- never having been touched by a single fossil fuel feedstock or power source.
What does it mean for investors?

12. The Port of Rotterdam's push to become a global renewable chemical manufacturing powerhouse
demonstrates that petrochemicals aren't the only game in town. Of course, petrochemicals remain the
major source of consumable products in the global economy, but Rotterdam is providing a potentially
game-changing blueprint for altering the economics of renewable chemicals. ExxonMobil, Archer
Daniels Midland, and other major global companies have laid the foundation for success -- now all that
is needed for success is investment from leading renewable chemical companies.
It's early, but you'll want to keep an eye on Rotterdam, as it's officials have presented their case for
the biochemical cluster at several leading industrial biotech and renewable chemical conferences in
the last year. Should your future investments set up shop at the port, you can look forward to low-cost
construction, manufacturing, and overall operations -- perhaps boasting the lowest capital expenditure
and highest margins of any global site in a company's portfolio.
US Biofuels:
A feedstock is defined as any renewable, biological material that can be used directly as a fuel, or
converted to another form of fuel or energy product. Biomass feedstock’s are the plant and algal
materials used to derive fuels like ethanol, butanol, biodiesel, and other hydrocarbon fuels. Examples
of biomass feedstocks include corn starch, sugarcane juice, crop residues such as corn Stover and
sugarcane bagasse, purpose-grown grass crops, and woody plants. The Bioenergy Technologies Office
works in partnership with the U.S. Department of Agriculture (USDA), national laboratories,
universities, industry, and other key stakeholders to identify and develop economically,
environmentally, and socially sustainable feedstock’s for the production of energy, including
transportation fuels, electrical power and heat, and other bioproduct. Efforts in this area will
ultimately support the development of technologies that can provide a large and sustainable cellulosic
biomass feedstock supply of acceptable quality and at a reasonable cost for use by the developing
U.S. advanced biofuel industry.

13. Feedstock supply is the essential first link in the biomass-to-bioenergy supply chain.
The success of the U.S. bioenergy industry relies on many factors, including a reliable, adequate supply
of high-quality biomass, available at a cost that enables meeting business profitability targets.
Therefore, the Feedstock Supply and Logistics Technology Area impacts all facets of the Bioenergy
Technologies Office portfolio, and is intimately linked to Processing and Conversion Technology
Areas—as feedstock is the substrate for all conversion technologies.
Ensuring a sustainable supply of high-quality biomass feedstock requires research and development to
streamline all elements of the biomass feedstock supply chain—from plant breeding and genomics, to
crop production and harvesting practices, to biomass preprocessing, transport, and storage systems.
Sustainable feedstock production includes all the steps required to produce biomass feedstocks to the
point where it is ready to be collected or harvested from the field or forest. Feedstock
Logistics encompasses all the unit operations necessary to harvest the biomass and move it from the
field or forest to the throat of the conversion process at the biorefinery, while ensuring that the
delivered feedstock meets biorefinery physical and chemical quality specifications.
The priority for the Bioenergy Technologies Office is to support the development of
strategies, technologies and systems to sustainably harvest and deliver volumes of biomass feedstock of
the quality preferred by biorefinery processes in a cost-effective manner in the United States.
ADVANCED UNIFORM-FORMAT FEEDSTOCK SUPPLY SYSTEM
The Bioenergy Technologies Office works with a variety of collaborators to develop the technologies
and systems needed to reduce the inherent and introduced variability in biomass (both format and
quality) to produce consistent, quality-controlled commodity products that can be efficiently handled,
stored, transported, and utilized by Biorefineries. Accomplishing this requires a complementary focus
on feedstock supply interfaces and logistics.
To achieve an advanced, uniform-format feedstock supply to service the biomass conversion industry,
the Bioenergy Technologies Office is supporting the development of a logistics system concept that
incorporates distributed biomass preprocessing depots located near biomass production sites, which
can reduce variability in biomass format early in the feedstock logistics chain through milling,
densification, and other processing technologies. From the depot, the uniform-format biomass is
forwarded to one of a network of much larger supply terminals where the biomass is further
processed to meet the quality specifications required by the conversion process(es) it supplies.
Ultimately, the preprocessed biomass (possibly blended and/or densified) is sent to the Biorefineries
(see diagram below). The Advanced Uniform-Format Supply System is modeled around the current
commodity grain model. The goal of this strategy is to integrate time-sensitive feedstock collection,
storage, and delivery operations into efficient, year-round supply systems that sustainably deliver
consistently high-quality, infrastructure-compatible feedstocks to the variety of biorefineries served.

14. An example of the Advanced Uniform-Format Feedstock Supply System.
FEEDSTOCK DEVELOPMENT
The U.S. Billion-Ton Update identified potential sustainable biomass resources available for biofuels
production under three productivity scenarios. After a sustainable biomass feedstock resource has been
identified, the accessibility of each resource must still be developed in a manner that is both
sustainable and consistent with the requirements of the end user (i.e., conversion facility). In 2008,
the Bioenergy Technologies Office, Sun Grant Initiative universities, and USDA-Agricultural Research
Service selected and established replicated field trials for corn stover and wheat straw removal and for
dedicated herbaceous and woody energy crops across wide geography.
Analysis of crop yield and soil carbon data across several successive crop years will be used to identify
the crops with the greatest potential for future development in specific areas of the country, as well as
knowledge gaps that remain to be addressed. The field trials will be used to collect data on a variety of
factors, including the impacts of agricultural residue removal from the field. The information gathered
through the Feedstock Supply and Logistics Technology Area's feedstock development efforts feeds
data to the Bioenergy Knowledge Discovery Framework (KDF) and BioEnergy Atlas, which are
publicly available resources.
Feedstock logistics encompasses all of the unit operations necessary to harvest the biomass and move it
from the field or forest through to the throat of the conversion reactor at the biorefinery, while also
ensuring that the delivered feedstock meets the specifications of the biorefinery conversion process.

15. Multidisciplinary teams are designing and developing advanced equipment and systems to reduce cost,
improve biomass quality, and increase productivity throughout the biomass logistics chain. Meeting the
future volume targets for advanced biofuels will require innovative, high-volume supply systems, and
equipment. To develop the necessary logistics systems, the Bioenergy Technologies Office is cost
sharing the design, fabrication, and demonstration of purpose-designed equipment to address key
feedstock challenges, including costs associated with each unit operation, moisture content, bulk and
energy density, particle size and distribution, as well as other quality concerns.
These logistics systems are developed through an iterative process between field research, lab
research, and analysis efforts.
Bioenergy Technologies Office work in feedstock logistics is conducted in partnership with the Idaho
National Laboratory, Oak Ridge National Laboratory, and a variety of industrial and academic
partners, and focuses on four main areas of research and development (R&D):
HARVEST AND COLLECTION
The overall objective of the Technology Area's Harvest and Collection R&D is to develop cost-effective,
sustainable harvest, collection, and delivery technologies and practices for a variety of feedstock
types, as well as predictive models capable of identifying the impacts of agronomic and agribusiness
practices on feedstock sustainability. Specific objectives of harvest and collection efforts are to
identify and address barriers associated with existing harvest and collection systems; engineer
advanced harvesting systems; identify the factors that impact sustainability; develop tools to help
understand and predict the potential consequences associated with conflicting demands for biomass
that may affect food and fuel availability in the United States; and identify actions to reduce potential
impacts.
An example of new harvesting technologies being demonstrated in the field to cost effectively separate
grains, straw, and leaves in one pass in the field, while preparing the biomass in a form that can be
easily stored and transported to a Biorefineries.
PREPROCESSING
The main objective of the Technology Area's Preprocessing R&D is to reduce the cost of biomass
feedstock preprocessing by increasing the efficiency and capacity of preprocessing equipment, and by

16. developing new equipment. Specific research objectives target key performance parameters that lead
to efficiency and capacity improvements. These include determining the performance parameters of
existing equipment when processing various biomass feedstock’s; understanding the characteristics of
biomass at various stages of the feedstock logistics chain; identifying opportunities to upgrade biomass
feedstock quality characteristics in various preprocessing operations; analyzing data collected from
existing systems, and applying acquired new knowledge when designing new systems. Examples of
specific preprocessing research goals are to identify strategies to efficiently increase feedstock bulk
density and energy density and to efficiently reduce biomass moisture content to ensure stability
during periods of storage.
Process Demonstration Unit
The Bioenergy Technologies Office's Feedstock Process Demonstration Unit (PDU), which is housed and
operated by Idaho National Laboratory, is an integrated, mobile preprocessing research system for
demonstrating production of advanced biomass feedstock’s at a pilot-scale. Depending on the
configuration being employed, the PDU has a throughput capacity of 5–15 tons/hour. Feedstock PDU
capabilities include grinding and milling, drying and other thermal treatments, fractionation of plant
components, formulation of feedstock blends from multiple biomass types, and feedstock
densification. The PDU can accommodate both woody and herbaceous feedstock materials.
Scientists and engineers have used the PDU to develop optimal methods for grinding bales or piles of
corn Stover, with the intent of reducing the cost of preparing biomass in a form that is readily usable
by Biorefineries.
STORAGE AND QUEUING
The technology area of storage and queuing R&D is focused on maintaining biomass feedstock quantity
and quality during storage, and potentially upgrading the quality. Many herbaceous feedstocks, for
example corn stover, are only harvested over a few weeks during the year in the U.S. Corn Belt. To
maintain a continuous supply of this feedstock to biorefineries, storage is required. Efforts in this area
focus on minimizing biomass losses as a result of biological degradation, which not only reduce the

17. amount of biomass available for bioenergy production, but can also impact the conversion yield
by altering biomass chemical composition.
Three examples of storing biomass are shown in this photo—
(from left to right), a loose pile of chopped material, a stack of large square bales, and in loaves. The
green markings on the biomass serve the purpose of documenting the depth of moisture penetration in
various storage conditions and physical formats.
HANDLING AND TRANSPORTATION
Although there are many biomass formats possible (e.g., chips, bales, etc.), raw biomass often has
characteristics that make handling and transportation inefficient. Unprocessed biomass leaving the
field or forest is bulky, aerobically unstable, and has poor flowability and handling characteristics.
Equipment exists to move a variety of biomass formats. However it can be an expensive effort to do so,
especially as transport distance increases. The specific objectives of handling and transportation
efforts are to determine how the biomass physical properties, feedstock type, and environmental
conditions influence the deformation and flow of plant material during storage and conveyance
operations; investigate compaction methods to improve biomass bulk densities that lead to improved
full-scale equipment within the feedstock assembly system; identify opportunities to decrease the net
cost of compaction operations; quantify biomass losses with current transport and handling methods;
and to assess large scale systems in other industrial operations to determine if there are better
alternatives for handling and transporting biomass feedstock’s
.

18. In this photo, preprocessed biomass is being loaded into a trailer that will either deliver the
biomass feedstock to a Biorefineries or will act as a temporary storage container for the biomass
1. WHAT KINDS OF BIOMASS CAN BE USED TO GENERATE FUEL AND PRODUCTS?
Many types of plant- and algae-based material can be converted to useful products. Specific kinds of
biomass include crop wastes, forestry residues, purpose-grown grasses, woody energy crops, algae,
industrial wastes, non-recyclable municipal solid waste, urban wood waste, and food waste. Biomass is
the only renewable energy source that can be used to make liquid transportation fuels—such as
gasoline, jet, and diesel fuel—in the near term. It can also be used to produce valuable chemicals for
manufacturing, as well as power to supply the grid.
2. WHY WOULD THE UNITED STATES WANT TO USE ITS BIOMASS RESOURCES FOR FUEL AND PRODUCTS?
Making biofuels and bioproducts from domestic, non-food and waste sources provides strategic benefits
to the nation, including economic growth, energy security, environmental quality, and technology
leadership. Biofuels are part of a multifaceted national strategy to improve quality of life and build a
diverse and secure domestic energy supply. Domestic biofuels help to reduce U.S. reliance on imports,
improve our trade balance, stabilize fuel prices, revitalize rural communities, create jobs, maintain
our lead in science and innovation, strengthen our energy security, and reduce harmful emissions
3. WHAT IS THE CURRENT ECONOMIC VALUE OF BIOFUELS PRODUCED DOMESTICALLY?
The 16 billion gallons of biofuels produced in the United States in 2015 is equivalent to more than 11
billion gallons of gasoline and diesel—worth an estimated $17.5 billion. Of the 16 billion gallons
produced, approximately 14.8 billion gallons was ethanol and 1.3 billion gallons was biodiesel.

19. Given that the energy content of ethanol is about 33% lower than conventional gasoline for equal
volumes of fuel, 14.8 billion gallons of ethanol is equivalent to about 9.9 billion gallons of gasoline.
Assuming the wholesale gasoline price of $1.57 per gallon at the beginning of fiscal year 2017, the total
dollar value of our domestic ethanol production is about $15.5 billion.
The energy content of biodiesel is about 7% lower than that of petroleum-derived diesel fuel. Taking
into account the difference in energy content, 1.3 billion gallons of biodiesel is equivalent to about 1.2
billion gallons of petroleum-derived diesel. Assuming the wholesale diesel price of $1.59 at the
beginning of fiscal year 2017, the total value of our domestic biodiesel production is about $1.9 billion.
4. HOW MUCH BIOMASS COULD WE SUSTAINABLY PRODUCE HERE IN THE UNITED STATES?
According to the 2016 Billion-Ton Report sponsored by DOE, the U.S. could sustainably produce—at $60
per dry ton—between 991 million dry tons per year (base-case assumptions) and 1,147 million dry tons
per year (high-yield assumptions) by the year 2030. This is while continuing to meet the demands for
food, feed, and fiber. This quantity of biomass could be used to produce enough Biofuels to amount to
more than 25% of the country's current energy consumption.
The estimated annual biomass potential available from various sources at $60 per dry ton or less by
2030 breaks down as follows:
 Forest resources currently used: 154 million tons
 Additional forest resource potential: 87 million tons
 Agricultural resources currently used: 144 million tons
 Additional agricultural residue potential: 174 million tons
 Energy crops: 380 million tons.
This amount of biomass (which includes residues in each resource category) can be produced
sustainably from agricultural and forestry lands and from waste streams.
Assumptions used in the analysis significantly affect estimates of the potentially available biomass
feedstock. Higher prices naturally increase the financial feasibility of producing more feedstocks. In
addition, the assumed productivity improvements for agricultural and dedicated energy crops can
affect these estimates.
5. HOW MANY ACTUAL GALLONS OF BIOFUELS COULD WE PRODUCE IN YEARS TO COME?
Using the 2016 Billion-Ton Report to predict biomass resource availability and assuming a yield of 85
gallons per ton of cellulosic biomass, the United States has the potential to produce between 84 billion
and 97 billion gallons of biofuels per year by 2030. This estimate is on par with the volume of U.S.
gasoline consumption in 2015 (140 billion gallons).
The value that biofuels can bring to the U.S. economy in the future depends on the level of investment
and other factors that are hard to predict. We do not know how rapidly fuel consumption will rise in
the coming years, nor do we know with certainty the future mix or relative energy content of biofuels.
6. HOW WILL WE EFFICIENTLY GROW, COLLECT, AND TRANSPORT THE BULKY, DISPERSED BIOMASS
REQUIRED FOR BIOFUELS?
DOE is engaged in developing efficient systems for the large-scale harvesting, collection,
preprocessing, storage, and transport of biomass feedstocks as a reliable commodity for use in
biorefineries. The U.S. bioeconomy will need large quantities of high-quality cellulosic biomass that

20. can be harvested and transported to biorefineries in an economical and reliable manner. DOE is
working with diverse partners to overcome two major challenges in this area:
1. Optimizing cellulosic feedstocks for biofuels. To enable large-scale production of cost-competitive
cellulosic biofuels, researchers are working with selected plant varieties (not used for food, feed, or
fiber production) to increase their yields, minimize water and fertilizer requirements, and optimize
other critical properties that will facilitate their use in conversion processes. To compile and provide
access to all of the latest results, DOE has established the Bioenergy Knowledge Discovery Framework,
an online collaboration toolkit and public data resource for bioenergy research
2. Developing efficient feedstock logistics systems. Biomass resources can vary widely in terms of
density, moisture content, and other characteristics. The current vision is for multiple biomass
feedstocks to be preprocessed into a consistent material that meets the specification requirements of
biorefineries. This approach makes the biomass compatible with existing high-capacity handling
systems, like those currently used for grain and other commodities. Feedstock logistics systems are
undergoing rigorous, industrial-scale field testing to establish cost and productivity benefits.
7. WHY AREN'T MORE FARMERS COLLECTING AGRICULTURAL RESIDUE OR GROWING ENERGY CROPS TO
MAKE BIOFUELS RIGHT NOW?
As in other industries, farmers need to be fairly certain that there will be an adequate demand for a
product before they go into production. Farmers and other biomass producers are unlikely to see a
significant, sustained demand for cellulosic feedstock’s (such as Switch grass or corn Stover) until more
refineries begin producing cellulosic Biofuels at commercial scale for U.S. markets.
From a farmer's perspective, collecting agricultural residues for Biofuels represents a shorter-term and
less risky investment than growing dedicated energy crops. Essentially, agricultural residues offer
farmers a way to supplement revenue from their main crops at the end of the growing season; the key
decision is whether the near-term market justifies the collection effort. Farmers will also consider the
extent to which the residues are needed to protect and replenish the soil. The Regional Feedstock
Partnership, which published a summary report in 2016, created corn Stover harvesting guidelines that
minimize soil erosion and retain soil carbon. By contrast, dedicated energy crops require a farmer to
commit some land in advance of the growing season—when weather conditions and market prices are
less predictable. Their investment risk is even greater in the case of crops that may need more than
one season to become established and begin producing profitable yields. On the other hand, energy
crops can often grow on marginal land and in harsh weather conditions.
8. WHICH OF THE NATION’S WASTE STREAMS CAN WE USE TO PRODUCE BIOFUELS AND HOW MUCH
WOULD THEY AMOUNT TO?
In addition to the huge potential of agricultural and forestry wastes, harvested sustainably without
disrupting natural ecosystem function or soil fertility, waste streams include sewage sludge,
commercial and residential food wastes, livestock manure, and biogas. Urban waste streams contain a
variety of potentially useful biomass materials, including construction and demolition wood waste.
The 2016 Billion-Ton Report sponsored by DOE determined that the United States currently has the
potential to produce 702 million dry tons of biomass each year, and of this total, 205 million tons could
potentially come from waste resources—68 million tons already being used, plus 137 million tons
currently available that is not yet being used. In January 2017, BETO published a report showing that
the United States has the potential to use 77 million dry tons of wet waste per year, which would
generate about 1,079 trillion British thermal units (Btu) of energy. Also, gaseous waste streams (which
cannot be “dried” and therefore cannot be reported in dry tons) and other feedstock’s assessed in the
report could produce an additional 1,260 trillion Btu of energy, bringing the total to more than 2.3
quadrillion Btu annually. For perspective, in 2015, the United States’ total primary energy consumption
was about 97.7 quadrillion Btu.

21. 9. WHAT IS DOE DOING TO HELP THE U.S. BIOECONOMY RAMP UP PRODUCTION OF ADVANCED
BIOFUELS?
To accelerate industry progress to diversify our domestic energy supply, DOE has strategically invested
in research, development, and demonstration projects to improve and scale up low-cost biomass
conversion technologies and to ensure a reliable supply of high-quality commodity feedstock’s for
conversion. BETO released its updated strategic plan in December 2016, titled Strategic Plan for a
Thriving and Sustainable Bioeconomy, which provides a blueprint on how best to tackle the challenges
and opportunities that lie ahead in building the U.S. Bioeconomy.
Projects focus on (1) developing biomass resources as a reliable, affordable commodity for commercial-
scale conversion; (2) developing cost-effective technologies to convert cellulosic biomass into
renewable fuels for commercial markets; and (3) demonstrating promising conversion technologies at
various scales to reduce technical risk.
BETO works with other federal agencies, national laboratories, industry, non-profit organizations, and
academia to share and learn from valuable insights and perspectives that can help identify the most
critical challenges facing the Biofuels industry.
10. WHEN WILL WE SEE SUBSTANTIAL COMMERCIAL PRODUCTION OF CELLULOSIC ETHANOL AND
HYDROCARBON BIOFUELS?
In 2012, after more than a decade of research and development, DOE and its partners in industry and
the national laboratories validated (at pilot scale) the mature modeled price target for making ethanol
from cellulosic biomass (plant materials not used for food, feed, or fiber production). This achievement
led to the de-emphasis of cellulosic ethanol R&D within the Bioenergy Technologies Office while
continuing support for private industry to pursue commercial production with the expectation that
cellulosic ethanol could be produced at a competitive price when the technology matured at scale.
As one example, the DuPont biorefinery in Nevada, Iowa, celebrated its grand opening on Oct. 30,
2015. DOE has supported DuPont by contributing more than $51 million towards key bioenergy
conversion technologies and by collaborating on research and development projects. At full capacity,
the DuPont facility is expected to produce 30 million gallons of cellulosic ethanol per year from corn
stover that is harvested within a 30-mile radius of the site. This ethanol is slated to be used in
production of detergents, a high-value bioproduct.
DOE has supported a total of 29 biorefinery projects (from pilot to pioneer commercial scale). The
portfolio includes projects to produce cellulosic ethanol and projects to produce renewable
hydrocarbon fuels.
1. WHAT KINDS OF BIOMASS CAN BE USED TO GENERATE FUEL AND PRODUCTS?
Many types of plant- and algae-based material can be converted to useful products. Specific kinds of
biomass include crop wastes, forestry residues, purpose-grown grasses, woody energy crops, algae,
industrial wastes, non-recyclable municipal solid waste, urban wood waste, and food waste. Biomass is
the only renewable energy source that can be used to make liquid transportation fuels—such as
gasoline, jet, and diesel fuel—in the near term. It can also be used to produce valuable chemicals for
manufacturing, as well as power to supply the grid.

22. 2. WHY WOULD THE UNITED STATES WANT TO USE ITS BIOMASS RESOURCES FOR FUEL AND
PRODUCTS?
Making Biofuels and bioproduct from domestic, non-food and waste sources provides strategic benefits
to the nation, including economic growth, energy security, environmental quality, and technology
leadership. Biofuels are part of a multifaceted national strategy to improve quality of life and build a
diverse and secure domestic U.S. energy supply. Domestic Biofuels help to reduce U.S. reliance on
imports, improve our trade balance, stabilize fuel prices, revitalize rural communities, create jobs,
maintain our lead in science and innovation, strengthen our energy security, and reduce harmful
emissions.
3. WHAT IS THE CURRENT ECONOMIC VALUE OF BIOFUELS PRODUCED DOMESTICALLY?
The 16 billion gallons of Biofuels produced in the United States in 2015 is equivalent to more than 11
billion gallons of gasoline and diesel—worth an estimated $17.5 billion. Of the 16 billion gallons
produced, approximately 14.8 billion gallons was ethanol and 1.3 billion gallons was biodiesel.
Given that the energy content of ethanol is about 33% lower than conventional gasoline for equal
volumes of fuel, 14.8 billion gallons of ethanol is equivalent to about 9.9 billion gallons of gasoline.
Assuming the wholesale gasoline price of $1.57 per gallon at the beginning of fiscal year 2017, the total
dollar value of our domestic ethanol production is about $15.5 billion.
The energy content of biodiesel is about 7% lower than that of petroleum-derived diesel fuel. Taking
into account the difference in energy content, 1.3 billion gallons of biodiesel is equivalent to about 1.2
billion gallons of petroleum-derived diesel. Assuming the wholesale diesel price of $1.59 at the
beginning of fiscal year 2017, the total value of our domestic biodiesel production is about $1.9 billion.
4. HOW MUCH BIOMASS COULD WE SUSTAINABLY PRODUCE HERE IN THE UNITED STATES?
According to the 2016 Billion-Ton Report sponsored by DOE, the U.S. could sustainably produce—at $60
per dry ton—between 991 million dry tons per year (base-case assumptions) and 1,147 million dry tons
per year (high-yield assumptions) by the year 2030. This is while continuing to meet the demands for
food, feed, and fiber. This quantity of biomass could be used to produce enough biofuels to amount to
more than 25% of the country's current energy consumption.
The estimated annual biomass potential available from various sources at $60 per dry ton or less by
2030 breaks down as follows:
 Forest resources currently used: 154 million tons
 Additional forest resource potential: 87 million tons
 Agricultural resources currently used: 144 million tons
 Additional agricultural residue potential: 174 million tons
 Energy crops: 380 million tons.
This amount of biomass (which includes residues in each resource category) can be produced
sustainably from agricultural and forestry lands and from waste streams.
Assumptions used in the analysis significantly affect estimates of the potentially available biomass
feedstock. Higher prices naturally increase the financial feasibility of producing more feedstocks. In
addition, the assumed productivity improvements for agricultural and dedicated energy crops can
affect these estimates.

23. 5. HOW MANY ACTUAL GALLONS OF BIOFUELS COULD WE PRODUCE IN YEARS TO COME?
Using the 2016 Billion-Ton Report to predict biomass resource availability and assuming a yield of 85
gallons per ton of cellulosic biomass, the United States has the potential to produce between 84 billion
and 97 billion gallons of Biofuels per year by 2030. This estimate is on par with the volume of U.S.
gasoline consumption in 2015 (140 billion gallons).
The value that Biofuels can bring to the U.S. economy in the future depends on the level of investment
and other factors that are hard to predict. We do not know how rapidly fuel consumption will rise in
the coming years, nor do we know with certainty the future mix or relative energy content of Biofuels.
6. HOW WILL WE EFFICIENTLY GROW, COLLECT, AND TRANSPORT THE BULKY, DISPERSED BIOMASS
REQUIRED FOR BIOFUELS?
DOE is engaged in developing efficient systems for the large-scale harvesting, collection,
preprocessing, storage, and transport of biomass feedstocks as a reliable commodity for use in
Biorefineries. The U.S. Bioeconomy will need large quantities of high-quality cellulosic biomass that
can be harvested and transported to Biorefineries in an economical and reliable manner. DOE is
working with diverse partners to overcome two major challenges in this area:
1. Optimizing cellulosic feedstock’s for Biofuels. To enable large-scale production of cost-competitive
cellulosic Biofuels, researchers are working with selected plant varieties (not used for food, feed, or
fiber production) to increase their yields, minimize water and fertilizer requirements, and optimize
other critical properties that will facilitate their use in conversion processes. To compile and provide
access to all of the latest results, DOE has established the Bioenergy Knowledge Discovery Framework,
an online collaboration toolkit and public data resource for bioenergy research.
2. Developing efficient feedstock logistics systems. Biomass resources can vary widely in terms of
density, moisture content, and other characteristics. The current vision is for multiple biomass
feedstock’s to be preprocessed into a consistent material that meets the specification requirements of
Biorefineries. This approach makes the biomass compatible with existing high-capacity handling
systems, like those currently used for grain and other commodities. Feedstock logistics systems are
undergoing rigorous, industrial-scale field testing to establish cost and productivity benefits.
3. WHY AREN'T MORE FARMERS COLLECTING AGRICULTURAL RESIDUE OR GROWING ENERGY CROPS TO
MAKE BIOFUELS RIGHT NOW?
As in other industries, farmers need to be fairly certain that there will be an adequate demand for a
product before they go into production. Farmers and other biomass producers are unlikely to see a
significant, sustained demand for cellulosic feedstock’s (such as switchgrass or corn stover) until more
refineries begin producing cellulosic Biofuels at commercial scale for U.S. markets.
From a farmer's perspective, collecting agricultural residues for biofuels represents a shorter-term and
less risky investment than growing dedicated energy crops. Essentially, agricultural residues offer
farmers a way to supplement revenue from their main crops at the end of the growing season; the key
decision is whether the near-term market justifies the collection effort. Farmers will also consider the
extent to which the residues are needed to protect and replenish the soil. The Regional Feedstock
Partnership, which published a summary report in 2016, created corn stover harvesting guidelines that
minimize soil erosion and retain soil carbon. By contrast, dedicated energy crops require a farmer to
commit some land in advance of the growing season—when weather conditions and market prices are
less predictable. Their investment risk is even greater in the case of crops that may need more than
one season to become established and begin producing profitable yields. On the other hand, energy
crops can often grow on marginal land and in harsh weather conditions.

24. 8. WHICH OF THE NATION’S WASTE STREAMS CAN WE USE TO PRODUCE BIOFUELS AND HOW MUCH
WOULD THEY AMOUNT TO?
In addition to the huge potential of agricultural and forestry wastes, harvested sustainably without
disrupting natural ecosystem function or soil fertility, waste streams include sewage sludge,
commercial and residential food wastes, livestock manure, and biogas. Urban waste streams contain a
variety of potentially useful biomass materials, including construction and demolition wood waste.
The 2016 Billion-Ton Report sponsored by DOE determined that the United States currently has the
potential to produce 702 million dry tons of biomass each year, and of this total, 205 million tons could
potentially come from waste resources—68 million tons already being used, plus 137 million tons
currently available that is not yet being used. In January 2017, BETO published a report showing that
the United States has the potential to use 77 million dry tons of wet waste per year, which would
generate about 1,079 trillion British thermal units (Btu) of energy. Also, gaseous waste streams (which
cannot be “dried” and therefore cannot be reported in dry tons) and other feedstocks assessed in the
report could produce an additional 1,260 trillion Btu of energy, bringing the total to more than 2.3
quadrillion Btu annually. For perspective, in 2015, the United States’ total primary energy consumption
was about 97.7 quadrillion Btu.
9. WHAT IS DOE DOING TO HELP THE U.S. BIOECONOMY RAMP UP PRODUCTION OF ADVANCED
BIOFUELS?
To accelerate industry progress to diversify our domestic energy supply, DOE has strategically invested
in research and development projects to improve and scale up low-cost biomass conversion
technologies and to ensure a reliable supply of high-quality commodity feedstocks for conversion. BETO
released its updated strategic plan in December 2016, titled Strategic Plan for a Thriving and
Sustainable Bioeconomy, which provides a blueprint on how best to tackle the challenges and
opportunities that lie ahead in building the U.S. bioeconomy.
Projects focus on (1) developing biomass resources as a reliable, affordable commodity for commercial-
scale conversion; (2) developing cost-effective technologies to convert cellulosic biomass into
renewable fuels for commercial markets; and (3) demonstrating promising conversion technologies at
various scales to reduce technical risk.
BETO works with other federal agencies, national laboratories, industry, non-profit organizations, and
academia to share and learn from valuable insights and perspectives that can help identify the most
critical challenges facing the biofuels industry.
10. WHEN WILL WE SEE SUBSTANTIAL COMMERCIAL PRODUCTION OF CELLULOSIC ETHANOL AND
HYDROCARBON BIOFUELS?
In 2012, after more than a decade of research and development, DOE and its partners in industry and
the national laboratories validated (at pilot scale) the mature modeled price target for making ethanol
from cellulosic biomass (plant materials not used for food, feed, or fiber production). This achievement
led to the de-emphasis of cellulosic ethanol R&D within the Bioenergy Technologies Office while
continuing support for private industry to pursue commercial production with the expectation that
cellulosic ethanol could be produced at a competitive price when the technology matured at scale.
As one example, the DuPont biorefinery in Nevada, Iowa, celebrated its grand opening on Oct. 30,
2015. DOE has supported DuPont by contributing more than $51 million towards key bioenergy
conversion technologies and by collaborating on research and development projects. At full capacity,
the DuPont facility is expected to produce 30 million gallons of cellulosic ethanol per year from corn

25. stover that is harvested within a 30-mile radius of the site. This ethanol is slated to be used in
production of detergents, a high-value bioproduct.
Top AsianBiorefineries:
Bankchak Petroleum :The Thai petrochemical giant has been primarily to date working on cassava-based
ethanol, but has lately branched into algae.
In May, Loxley announced a memorandum of understanding with Bangchak, Ratchaburi Electricity
Generating Holding and the Department of Alternative Energy Development and Efficiency, for a $1.9
million algal biofuels pilot plant. Construction of the pilot, which is planned for the Ratchaburi
Electricity Generating plant in Ratchaburi province, will commence in late 2012. MBD Energy has been
selected to supply the algal harvest, wastewater treatment, harvesting and extraction systems, and
Loxley indicated that a $25 million project for a commercial-scale facility could begin as soon as 2014.
Back in April, Bangchak asked the government to boost the share of cassava-based ethanol to 30% of
the domestic market from the current 10% share. About a quarter of the country’s 25 million metric
tons of cassava produced every year are used as ethanol feedstock. Bangchak had previously announced
plans to invest $32.4 million each in 200,000 liter per day ethanol plants in Cambodia and Laos in order
to supply the Asian market.
GlycosBio: Houston-based Glycos Biotechnologies has been focused on Malaysia almost since the start,
and has now secured the partners and locales for its plans to produce bioisoprene and industrial
ethanol from crude glycerine.
In January, Japan’s Toyo Engineering Co formed a joint venture with Glycos and Malaysian developer
Bio-XCell to build a 10,000 ton per year ethanol plant in Johor Baru, at the government-supported
biotechnology park, Bio-XCell, with completion scheduled for Q2 2013.by Q2 2013. The facility that will
use from crude glycerin from the production of palm methyl ether as feedstock will expand to 30,000
tons per year by 2014. Toyo’s engineering contract is valued at $30 million.
Green Biologics: UK-based Green Biologics has been long-focused on scaling up its biobutanol technology
in China with several key agreements now in place.
Last September, Green Biologics and Songyuan Laihe Chemical announced a collaborative development
and licensing agreement in China. Under the terms of the agreement GBL and Laihe will collaborate to
improve the economics of Laihe’s biobutanol plant by optimising GBLs fermentation technology using
sugars derived using Laihe cellulosic pre-treatment process. It is anticipated that the optimised process
will be in pilot trials before the end of 2011 and will be in full commercial production in 2012
At the beginning of last year, Green Biologics had signed $15 million in deals with Guangxi Jinyuan
Biochemical and Lianyungang Union of Chemicals to use its fermentation technology in the production
of biobutanol.
On the corporate front, in January GBL and butylfuel announced a merger. The new company now
operates under the Green Biologics name and continues to be headquartered in Abingdon, UK with a
strong operational presence and commercial focus in the US contributed by butylfuel. “Biobutanol is
the place to be,” Green Biologics CEO Sean Sutcliffe told the Digest. “We are combining GBL’s
acknowledged technology leadership and commercialization expertise in China, India and Brazil with
the scale up, operational process experience, and North American business building capabilities of
butylfuel. With China, India, Brazil and the US, you’ve got the four key markets.”

26. LanzaTech: The New Zealand and Chicago-based gas fermentation company has been Asia-bound in
search of transformative feedstock and downstream distribution partners, rounding up some of the best
in both.
Currently on LanzaTech’s radar are four projects. First, the existing demonstration project with
BaoSteel in Shanghai, using waste gases from steel production, with a capacity of 100,000 gallons. The
company has been reporting “great progress at Bao” on key milestones and expects to reach all of
them by October.
The first commercial plant is expected to be sited in or near Beijing, also in combination with Bao Steel
and using a combination of feedstocks from several steel mills. The next project is expected to be sited
in India using MSW, which will require the use of a biomass gasifier – hence the company has placed
that farther down the list so that process improvement can resolve some of the economic challenges of
biomass gasification, over the next year. Fourth project for the company will take it to Soperton,
Georgia and its Freedom Pines facility, where it will use woody biomass as a feedstock and, again,
utilize a gasifier.
Meanwhile the company landed a major Series C investment round, with new investors including
Petronas Technology Ventures Sdn Bhd, the venture arm of Petronas, the national oil company of
Malaysia, and Dialog Group, a leading Malaysian integrated specialist technical services provider to the
oil, gas and petrochemical industry.
In addition to its work in China and prpspects in Malaysia, last year LanzaTech signed a memorandum of
understanding with Posco, a Korean conglomerate with interests in steel, power, energy, engineering
and construction, to convert the steel maker’s flue gases to ethanol and other value added products.
LanzaTech CEO Jennifer Holmgren commented, “This means that LanzaTech is now working with 2 of
the top 5 global steel manufacturers.”
In recognition of their achievements, LanzaTech reported last week that they were chosen as one of 23
Technology Pioneers for 2013, by the World Economic Forum Their achievements will be honored at
the Forum’s Annual Meeting of the New Champions 2012 in Tianjin, People’s Republic of China, from
11-13 September.
Novozymes, Shengquan Group and Praj : The Denmark-based enzyme giant has been hard at work on
expanding its presence in Asia – while at the same time Shenquan has been looking at options in
advanced Biofuels. Thus emerged a striking partnership.
In April, Shengquan Group announced it will start commercial production of cellulosic ethanol for
solvents and biochemical’s in June 2012 utilizing enabling technology from Novozymes.
Using Novozymes enzymes, Shengquan will now convert corncob residues from furfural production into
fermentable sugars and then into ethanol for solvents and other purposes. Shengquan’s cost model
shows that its current production cost of cellulosic ethanol is cost-competitive with conventional
ethanol as the feedstock is a by-product of their current production.
Overall, the Chinese government plans for the country to consume 5 million tons of ethanol between
2011 and 2015—known as the 12th five-year plan—which is nearly double that used during the previous
five year period. The government plans to make Biofuels a priority, with previous efforts restrained by
a lack of raw materials.
But Novozymes has been active in India, too. Hindu Business Online and other outlets reported in June
that Praj and Novozymes plan to set up an advanced biofuels demonstration plant later this year.
According to the reports, Novozymes will supply enzymes to the India-based project, which will work
on a variety of feedstock’s including wheat straw, rice straw, corn cobs and sugarcane bagasse.

27. PTT: The Thai state oil and gas giant has a massive chemical arm that has been investing heavily in
advanced technologies, as well as opening its 400,000 liter per day cassava and molasses -based ethanol
production facility in Ubon Ratchani in November.
In January, Myrant announced the closing of a $60 million strategic equity investment from PTT.
Myriant said at the time that it would use the investment to help fund the rapid commercialization of
its succinic acid platform, including construction of a succinic acid plant in Lake Providence, Louisiana.
The investment includes the establishment of a joint venture between PTT Chemical and Myriant for
deploying Myriant’s technology in Southeast Asia.
Last October, PTT announced that it would invest $150 million in US-based NatureWorks. PTT
Chemical’s investment supports NatureWorks intent to globalize its Ingeo manufacturing capability by
building a new production facility in Thailand, supporting the Asian customer base. NatureWorks
anticipates bringing the new plant online in 2015.
Over the past several years, NatureWorks has seen steady 25- to 30-percent increases in annual product
demand. In the last two years, NatureWorks doubled its Ingeo supply availability by bringing online
additional production capacity at its Blair, Neb., processing facility.
Earlier last year, PTT Group and Mitsubishi Chemical formed a 50/50 joint venture to produce both bio-
succinic acid and polybutylene succinate from sugar. Construction is planned for this year, with
production to start in late 2014. PTT MCC expects production capacity of 20,000 tonnes of PBS and
30,000 tonnes per year.
Sinopec: No point in being in China without big ambitions. That’s not lost on Sinopec, who is aiming to
produce a third of the national aviation fuel demand, 12 million metric tons, from biofuels by 2020.
That’s 3.5 billion gallons worth of ambition. They’ve got some catching up to do, as PetroChina plans
to build a refinery for aviation biofuels by 2014 that would produce 60,000 tons annually.
Last month, Sinopec was seeking to produce renewable aviation fuel from used cooking oil (gutter oil)
after completing production trials. The company has the potential to produce 20,000 tons of biofuel
per year, according to a report from the Economic Observer. The report also notes that if biofuel-
powered airlines continue to be exempted or partially exempted from the EU’s carbon tax, China may
further pursue the option.
TMO Renewables: Through its investment partner Diverso, UK-based TMO has gained fast altitude in the
China market, with a technology that can tap the substantial volumes of low-cost agricultural
residues.
Last month, TMO Renewables announced the signing of an MOU with the authorities of Heilongjiang,
China, to secure long term large volume biomass feedstock supply for future biofuel production
facilities from Heilongjiang State Farm, the largest state owned farming corporation in China.
The MOU is the first step towards building the first of a future series of second generation biofuel
production facilities in China. TMO will be able to assess the full potential of the HSF feedstock using
its Process Demonstration Unit (PDU) in Surrey. The UK’s first cellulosic demonstration facility, the PDU
is used to conduct feasibility studies on a wide range of feedstocks to determine the optimal process
for each material for clients at a commercially relevant scale.In May, TMO announced they have
advanced to demonstration scale on cassava stalk feedstock with major Chinese fuel and food
producers. TMO is now processing an initial shipment of cassava stalk delivered from China, an
inexpensive, abundant feedstock underutilized in 2G bioethanol. Improved efficiencies at TMO’s 12,000
sq. ft. demonstration facility are projected to produce ethanol for less than two dollars per gallon,
marking a crucial step toward commercialization. Utilizing cassava stalk, TMO’s conversion process will
yield 70 to 80 gallons of 2G ethanol per ton of feedstock.

28. Vinythai: More under the radar than some of the petrochem giants operating in Thailand, Vinythai has
commissioned plant number one, transforming glycerin into higher-value products.
In March, Vinythai reported commissioning its bio-sourced epichlorohydrin plant in Map Ta Phut,
Thailand. The plant uses Solvay’s Epicerol technology, transforming biofuel byproduct glycerin into
epichlorohydron, an essential feedstock for epoxy resins, and it’s increasingly used in corrosion
protection coatings. The plant has a production capacity of 100,000 tonnes per year, and required EUR
120 million in investment.
Wilmar: The Asian agribusiness giant has been active on many fronts in its fast-growing portfolio, but
deals with Elevance and Amyris landed it in the top 10 here as well.
Wilmar International, ranked amongst the largest listed companies by market capitalisation on the
Singapore Exchange, is active in oil palm cultivation, oilseeds crushing, edible oils refining, sugar
milling and refining, specialty fats, oleochemicals, biodiesel and fertilisers manufacturing and grains
processing.
In April, Wilmar announed that it will invest $80 million in a palm-oil based aviation biofuel facility in
East Java in conjunction with technology provider Elevance Renewable Sciences. Elevance already
produces biodiesel and bio-olefin from palm oil but the bio-olefin needs further refining to be used for
jet fuel. Wilmar may cooperate with national oil company Pertamina in the future to market the jet
fuel.
Last November, Wilmar and Amyris said that they would establish a collaboration with Wilmar
International for the development and worldwide commercialization of surfactants derived from Amyris
Biofene to be used in consumer packaged goods, personal care products and industrial applications.
The two companies expect the surfactants will replace nonylphenol ethoxylate surfactants, whose use
is being either phased out or restricted by regulatory agencies around the world. The collaboration
will start with a feasibility study. Dependant on the outcome, Amyris and Wilmar said that they would
form a joint venture, using Wilmar’s established channels to market.
Special recognition: Boeing
Not an operator, but a significant facilitator of demand and supply – Boeing gets a special recognition
for its ongoing efforts to create a market in aviation biofuels – most lately focused on China.
In June, Boeing, Air China and PetroChina conducted a second test flight partially powered by locally
produced biofuel. Scheduled for the third quarter of 2012, the test is likely to involve a trans-Pacific
trip, far longer than the one-hour test flight that was conducted in China last October. The planned
test will use a biofuel produced by PetroChina from locally grown jatropha. Due to China’s large
amount of barren land, jatropha is an attractive option for producing biofuel.
In March, the Commercial Aircraft Corp and Boeing have signed a collaboration agreement. The
Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center will be
located at COMAC’s Beijing Civil Aircraft Technology Research Center.
The Boeing-COMAC Technology Center’s first research project aims to identify contaminants in “gutter
oil” and processes that may treat and clean it for use as jet fuel. Waste cooking oil shows potential for
sustainable aviation Biofuels production and an alternative to petroleum-based fuel because China
annually consumes approximately 29 million tons of cooking oil, while its aviation system uses 20
million tons of jet fuel. Finding ways to convert discarded “gutter oil” into jet fuel could enhance
regional Biofuels supplies and improve Biofuels affordability.