Industrial Biotechnology: Securing a Sustainable Energy Future

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1 Industrial Biotechnology: Securing a Sustainable Energy Future Biotechnology Industry Organization Industrial and Environmental Section Amy Ehlers April 28, 2008

2 What is BIO? Biotechnology Industry Organization (BIO) Trade association based in Washington, D.C. Over 1,100 member companies Members in U.S. and 31 other countries BIO Health Care Food and Agriculture Industrial and Environmental

3 What is Industrial Biotechnology? Application of life sciences to traditional manufacturing and chemical synthesis Using micro-organisms (bacteria, fungi) and enzymes (specialty proteins) to improve manufacturing processes Make new biobased products and materials (including fuels) from renewable feedstocks

4 Some Industrial and Environmental Section Members

5 BIO Breadth of Technology Technology Providers Diversa, Dyadic, Novozymes, Genencor, Codexis Agriculture/Food Industry Cargill, Tate & Lyle, Bunge, Ceres, Mendel Chemicals Industry DuPont, Dow, DSM, Rohm & Haas, BASF Biomaterials/Bioplastics Industry NatureWorks, Metabolix Biofuels Industry Abengoa Bioenergy, Blue Sun Biodiesel, Poet, Verenium, Sun Opta, Iogen, BP, Chevron Advanced biofuels DuPont, LS9, Amyris, Gevo

6 Biofuels Transforming the transportation fuels industry

7 Biotechnology is a Key Enabling Technology Industrial biotech is enabling a biofuels revolution that involves processing new feedstocks for fuel production that will move use beyond conventional corn ethanol production Ag biotech is improving existing crops and developing new dedicated energy crops as biorefinery feedstocks

8 Farm Legislation House and Senate both passed farm bill legislation in 2007, H.R Both versions contain an energy title with strong support for dedicated energy crops, advanced biofuels and biobased products Farm Bill conference announced for Monday PM - April 28

9 Farm Legislation Senate Farm Bill (Food and Energy Security Act) $1.25 cellulosic biofuels production tax incentive BioPreferred program includes chemical intermediates Bioenergy Crop Transition Assistance Program $422M in grants and loan guarantees for pilot, demonstration, and commercial-scale biorefineries $345M to help biorefineries purchase feedstocks for advanced biofuels production Increases mandatory funding for Biomass R&D Program House Farm Bill (Farm, Nutrition and Bioenergy Act) Contains most of the key provisions in the Senate version many at even higher funding levels but does not include the cellulosic tax credits

10 Energy Independence and Security Act of 2007 Increased Renewable Fuels Standard (RFS) Biofuels research and development Increases funding for existing biomass R&D program (which includes DOE biorefinery demonstration grants) by 50% and extends through 2010 Increases DOE Bioenergy Research Centers from 3 to 7 Biofuels infrastructure Provides renewable fuel pump installation grants and pilot projects Mandates a study of ethanol pipeline feasibility, another on the adequacy of rail network, and a third on distribution of advanced biofuels

11 EISA Renewable Fuels Standard Requirement ( Billions of Gallons ) Advanced Biofuels Year Cellulosic Biofuel Biomass-based Diesel Undifferentiated Advanced Biofuel

12 Funding Biomass and Biorefinery Systems R&D Program (DOE EERE) Critical in drastically reducing the cost of cellulosic ethanol processing Loan Guarantee Program for Cellulosic Ethanol (Title XVII of 2005 EPAct) Facilitate the construction of facilities to produce fuel ethanol from cellulosic biomass Genomes to Life (GTL) Bioethanol Research Program Biological and Environmental Research Programs (Office of Science) GTL Bioenergy Research Centers Biological and Environmental Research Programs (Office of Science) Grants for Production of Advanced Biofuels (Section 161 of EISA of 2007)

13 Major DOE Biofuels Project Locations Geographic, Feedstock, and Technology Diversity

14 Future What does the future of Industrial Biotechnology hold?

15 Beyond Ethanol: Longer Chain Alcohols and Hydrocarbons Using microbes and rapid enzymatic pathway construction techniques to build new microorganisms that can of produce higher value compounds for use as transportation fuels Amyris Gasoline substitute - contains more energy than ethanol, lower cost, less polluting, and is fully compatible with infrastructure LS9 Domestic, sustainable, cost-effective, and compatible with existing systems; it's just what the Earth ordered Gevo butanol, iso-butanol

16 But

17 Bio-Based Economy Eventually the industry will grow to provide multiple products from renewable feedstocks on one production site, building a biobased economy, instead of a petroleumbased economy Economical and efficient Rural Growth Minimize infrastructure Lower environmental impact

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