Energy Manufacturing Workshop May 11, 2015

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BIOENERGY TECHNOLOGIES OFFICE Energy Manufacturing Workshop May 11, 2015 Jonathan Male Director, Bioenergy Technologies Office (BETO) 1 Bioenergy Technologies Office

Outline I. Overview II. III. IV. Bioenergy Technologies Office s Goals and Mission Risks and Innovation Program Accomplishments and Current Program Activities V. New Areas of Interest VI. A Bioeconomy VII. Upcoming Events 2 Bioenergy Technologies Office

Office of Energy Efficiency and Renewable Energy 3 Bioenergy Technologies Office

Bioenergy Technologies Office Mission Accelerate the commercialization of advanced biofuels and bioproducts through targeted research, development, and demonstration supported by public and private partnerships Strategic Goal Develop technologies to enable the sustainable, nationwide production of biofuels compatible with today s transportation infrastructure Performance Goal By 2017, validate a least one pathway for $3/GGE* hydrocarbon biofuel (with 50% reduction in GHG emissions relative to petroleum) 4 Bioenergy Technologies Office *Mature modeled price at pilot scale. Through RD&D, BETO reduces risks and costs to commercialization

The Challenge and the Opportunity THE CHALLENGE U.S. gasoline consumption is 8.5 million barrels/day 67% of U.S. petroleum consumption is in the transportation sector THE OPPORTUNITY More than 1 billion tons of biomass could be sustainably produced in the U.S. 1 billions tons of biomass could displace 30% of U.S. petroleum use by 2030, and reduce 400M tonnes of CO 2 e. Biofuels could displace 30% of liquid transportation fuels 5 Bioenergy Technologies Office

Bioenergy Technologies Office s Core Focus Areas Program Portfolio Management Planning Systems-Level Analysis Performance Validation and Assessment MYPP Peer Review Merit Review Quarterly Portfolio Review Competitive Non-competitive Lab Capabilities Matrix Research, Development, Demonstration, & Market Transformation Feedstock Supply & Logistics R&D Terrestrial Algae Product Logistics Preprocessing Sustainability Sustainability Analysis Sustainable System Design 6 Bioenergy Technologies Office Conversion R&D Biochemical Thermochemical Deconstruction Biointermediate Upgrading Cross Cutting Strategic Analysis Technology and Resource Assessment Market and Impact Analysis Model Development & Data compilation Demonstration & Market Transformation Integrated Biorefineries Biofuels Distribution Infrastructure Strategic Communications New Communications Vehicles & Outlets Awareness and Support of Office Benefits of Bioenergy/Bioproducts

Assistant Secretary Dr. David Danielson s Five Questions HIGH IMPACT: Is this a high impact problem? ADDITIONALITY: Will the EERE funding make a large difference relative to what the private sector (or other funding entities) is already doing? OPENNESS: Have we made sure to focus on the broad problem we are trying to solve and be open to new ideas, new approaches, and new performers? ENDURING U.S. ECONOMIC BENEFIT: How will this EERE funding result in enduring economic benefit to the United States? PROPER ROLE FOR GOVERNMENT: Why is what we are doing a proper high impact role of government versus something best left to the private sector to address on its own? INNOVATION 7 Bioenergy Technologies Office

Key Challenge for Innovation Involves Lowering Risks De-risking technologies is central to R&D through demonstration that addresses greater integration and scale: BETO is focusing on advancing renewable gasoline, diesel, and jet fuels technologies. Technical, construction, operational and financial/market risks. 8 Bioenergy Technologies Office Key Challenges Biomass Pretreatment Conversion Product Reliable supply Consistent quality Affordable delivery Biomass feeding, sizing and moisture Solids handling Construction materials Products Yields Construction materials Catalysts Fermentation organisms Separations Catalytic upgrading Recycle loops

FY15 Program Activities and Goals Feedstocks: Demonstrate a modeled mature delivered feedstock cost of $115 per dry matter ton (including both grower payment and logistics). Algae: Demonstrate integrated protein and carbohydrate conversion with target of 80% of theoretical yield from proteins and carbohydrates. Demonstrate an increase in algal intermediate yields (1,500 gallons/acre/year). Demonstration and Market Transformation: Increase portfolio to include 3 novel technology demonstrations to reduce risk of scale up of emerging bioenergy pathways. Biochemical Conversion: Reduce modeled conversion cost via a biochemical (hydrolysis) conversion route to hydrocarbon fuel blendstocks in support of the 2022 programmatic goal of $3/gal for drop-in fuels such as renewable gasoline, diesel, and jet fuel [$6.40/gallon of gasoline equivalent (gge)]. Thermochemical Conversion: Reduce the modeled conversion cost contribution via fast pyrolysis for converting biomass to a hydrocarbon fuel blendstock in a mature commercial-scale plant. [$3.70/gallon of gasoline equivalent (gge)]. Sustainability: Identify practices that improve sustainability and environmental performance of advanced bioenergy, including results from a comprehensive case study of environmental, social, and economic sustainability indicators for a cellulosic feedstock production and biorefinery system. Collaborations with the Vehicle Technologies Office: Test fuels and develop better engines for high octane fuels. 9 Bioenergy Technologies Office

Demonstration Portfolio Overview The Demonstration & Market Transformation (DMT) Program manages a diverse portfolio of projects focused on the scale-up of advanced biofuel production technologies from pilot- to demonstration- to pioneerscale. Currently, 18 biorefineries are considered active and utilize a broad spectrum of feedstocks and conversion techniques. Map of Active and Completed BETO-funded Projects Amyris Logos - Completed Projects - Active Projects - ipilot Projects Rentech GTI Verenium Elevance 10 Bioenergy Technologies Office For more information visit: www.energy.gov/eere/bioenergy/integratedbiorefineries

Valley of Death Level of Investment BETO supports cost shared first-of-its-kind facilities to de-risk new technologies and bring industry past the valley of death. 11 Bioenergy Technologies Office

DOE s Current Role on the Global Biorefinery Industry The FY15 DMT FOA Funding to produce 6-8 project definition phase pilot and/or demonstration scale drop-in hydrocarbon biofuel biorefineries. Pilot DOE cost share up to $2 million DOE. Demonstration DOE cost share up to $4 million DOE. Validation of technology against TRL definitions will be required. R&D at TRL-6 ready for TRL-7 Pilot. TRL-7 Pilot ready for TRL-8 Demonstration. 1 Bacovsky, Ludwiczek, Ognissanto, Wörgetter Status of Advanced Biofuels Demonstration Facilities, IEA Task 39-P1b March 2013 12 Bioenergy Technologies Office

Cellulosic Ethanol Demonstration Portfolio Selected Projects Abengoa Bioenergy, Hugoton, KS Expected to produce 25 million gallons per year and 18 megawatts of green electricity at full capacity. Anticipated job creation: 70 during operation and >1,100 during peak construction. Energy self-sufficient creates enough heat and power to support itself. Mechanical completion is scheduled for July 2014; Commissioning for CY2014. DOE Share = $100M (EERE) and $135M DOE loan guarantee; Equity: >$400M. POET-DSM Project LIBERTY, Emmetsburg, IA Expected to produce 20 million gallons per year at full capacity. Anticipated job creation: 35 during operation and >200 during peak construction. Demonstrates commercial viability of lignocellulose-to-ethanol process. Major construction began in November 2012, start of commercial production is scheduled for Q4 FY2014. DOE Share = $100M; Cost share = $130M; joint venture with DSM. INEOS, Vero Beach, FL Expected to produce 8 million gallons per year and 6 MW of power from wood and vegetative waste. DOE Share = $50M; Cost share = $82M. Created 400 construction jobs; 65 permanent jobs are expected for operation. Major construction began in October 2010, commissioning was completed in June 2013, and the facility initiated in July 2013. First commercial production of cellulosic ethanol in the U.S. 13 Bioenergy Technologies Office

Demonstration Portfolio Selected Projects American Process, Inc., Alpena, MI Feedstock: waste stream from hardboard manufacturing Capacity: 894,200 gal/yr of cellulosic ethanol (from C6 sugars) and 696,000 gal/yr of aqueous potassium acetate (De-Icer) (from C5 sugars). Accomplishments: o First batch of cellulosic ethanol produced in FY14. DOE share: $22,481,523; Cost share: $8,459,327. Contractual Haldor Topsoe, Inc., Des Plaines, IL Thermochemical conversion of wood waste and woody biomass to gasoline. Expected to produce 345,000 gal/year. Accomplishments : o Testing shows acceptable ranges for gasoline blendstock. o Emission level was similar to gasoline. DOE share: $25,000,000; Cost share: $9,388,778 Collaborative agreements with Gas Technology Institute, Andritz-Carbona, UPM-Kymmene, and Phillips 66. 14 Bioenergy Technologies Office

Feedstock Supply and Logistics Focus Fully integrate feedstocks into supply chain (multiple interfaces). Reform raw biomass into high-quality feedstocks. Use innovative technologies to ensure sustainable supply and reduce costs. Reduce risks to enable industry expansion. Approaches Use basic and applied science to understand, model, and manage. Provide nationally, but solve locally. Meet environmental performance targets and goals while assuring sustainability. Work with stakeholders and partners. Cost Biomass Supply Quality Quantity 15 Bioenergy Technologies Office

Advanced Supply System Design Objective: Transform raw Biomass into high-density, stable, commodity feedstocks: Actively manage feedstock variability and supply uncertainty Feedstock specifications and conversion performance drive logistics and preprocessing Advanced preprocessing accesses low-grade and diffuse resources (i.e., use any and all available resources) Approach: Advanced preprocessing and formulation of multiple raw biomass resources into least cost/performancebased feedstocks 16 Bioenergy Technologies Office

Benefits of Algal Biofuels Benefits High productivity relative to terrestrial feedstocks Adds value to unproductive or marginal lands Able to use waste and salt water Able to recycle carbon dioxide Able to provide valuable co-products, such as protein to meet animal feed needs Produces a range of biofuels including gasoline, diesel, jet fuel, and ethanol High-impact feedstock, increasing the U.S. domestic biomass feedstock production potential by 5 billion gallons per year Photos Courtesy Sapphire Energy 17 Bioenergy Technologies Office

Significant Commercialization Challenges There are two overarching challenges to reaching the costs and performance projections from the baseline cases: (1) Reducing costs of production. (2) Ensuring sustainability and availability of resources. Challenges Affordable and scalable algal biomass production: Current technologies are designed for production of high-value products rather than highyielding products. Current facilities use high-cost liners, nutrients, and predator controls. Agglomeration strategies are too expensive. Transport costs are higher for intermediates suitable for diesel and aviation fuels. Siting and sustainability of resources: Nutrient recycle has limited use. CO 2 delivery requirements limit siting decisions. Cultivation currently requires significant water resources. Harvesting and preprocessing technologies are not energy efficient. Competition for CO 2 has significantly increased its cost. Photos Courtesy Sapphire Energy 18 Bioenergy Technologies Office

Algae Program Program Performance Goal Develop and demonstrate technologies that make sustainable algal biofuel intermediate feedstocks that perform reliably in conversion processes to yield renewable diesel, jet, and gasoline in support of the BETO s modeled $3/gge biofuel goal in 2022. Approach Use techno-economic, life-cycle analysis, and other validated models as tools to direct research and development; evaluate performance towards goals; and down-select pathways, processes, and performers as appropriate. Leverage a strong foundation of ecology, advanced biology, and physiology to improve yield and productivity. Focus on engineering solutions as a cost reduction strategy. Courtesy Sapphire Energy, LLC Photo Courtesy of ATP3 Photo Courtesy of Sapphire Energy, LLC Photo Courtesy of Texas A&M 19 Bioenergy Technologies Office

Benchmarking Progress: Technology Pathway Baselines High Priority Pathways Advanced algal lipid extraction and upgrading (ALU). Whole algae hydrothermal liquefaction and upgrading (AHTL). Pathways analysis will result in national laboratory-led design case studies for the BETO to benchmark progress towards $3/gallon algal biofuel. Nutrient Recycle Anaerobic Digestion CH 4 Algae Growth Harvest Preprocess 1: ALU 2: AHTL Solvent Extraction Hydrothermal Liquefaction Hydrotreating Fuel Harvest Water Recycle CO 2 Nutrient Recycle Wet Gasification CH 4 20 Bioenergy Technologies Office

Conversion R&D FY15 Activities Publication of four Design Case Reports including multi-year cost targets and sustainability metrics. 5 BCU FOA awards made during Q1, 7 Incubator FOA awards made during Q2 MEGA-Bio FOA workshop to be held in mid-july in preparation for FY16 FOA. Additional Lab accomplishments include: Lygos and the ABPDU at LBNL collaborated to achieve pilot scale production of malonic acid from sugar All Q1 and Q2 PMM milestones were met including: Developing two new catalysts to reduce processing costing by 20% Obtaining 18 fatty acid producing strains that produce fatty acids from C5 and C6 sugars The Computational Pyrolysis Consortium held a full group meeting at PNNL in February NREL re-commissioned their TCPDU producing over 25 gallons of oil over 5 days Key Barriers to Overcome Defining product targets and their role in the biorefinery Lignin deconstruction/valorization Catalytic materials development Staffing Foster Lab/Industry consortia efforts in areas such as catalyst development and refinery integration 21 Bioenergy Preparing Technologies for Office the FY17 Conversion experimental verification efforts

Routes to Convert Biomass Deconstruction and Fractionation Synthesis and Upgrading Feedstock Supply & Logistics (Including Algae) Pretreatment Preprocessing Hydrolysis Pyrolysis Gasification Hydrothermal Liquefaction Biological Processing (Fermentation) Catalytic Processing/ Stabilization Intermediate Upgrading Intermediate Processing at Petroleum Refineries Fuel/Product Finishing Fuel and Product Distribution, Infrastructure, and End Use Separations, Integration and Enabling Technologies 22 Bioenergy Technologies Office

Commitment to Sustainability Sustainability Strategic Goal: to understand and promote the positive economic, social, and environmental effects and reduce the potential negative impacts of bioenergy production activities. 23 Bioenergy Technologies Office

Analysis & Sustainability FY15 Activities Landscape Design: Fostered innovative strategies to increase bioenergy production while enhancing environmental and socioeconomic sustainability. FOA: Landscape Design on Sustainable Bioenergy Systems. Closed on Jan 26. Selection expected in June (FOA was designed to be distinct from and complementary with USDA activities). Market Analysis: Annual Bioenergy Market Report assessing the size and composition of current and potential markets for biofuels and bioproducts Expanded Sustainability in MYPP: Conversion sustainability metrics incorporated for all 7 pathways. Supply Chain Sustainability Analyses: Full life-cycle GHG results published for Fast Pyrolysis and Algae Hydrothermal Liquefaction pathways. Bioeconomy Initiative Fed Strategy Workshop: Coordinate with other federal agencies on bioeconomy initiative. Key Barriers to Overcome Limited quantification of economic, environmental, and social benefits and impacts of bioenergy Lack of comparable, transparent, and reproducible analysis Limitations of analytical tools for decision-making Nascent nature of sustainability best practices Lack of proactive strategies for implementing new land-use practices that achieve positive economic, social, and environmental outcomes 24 Bioenergy Technologies Office

Sustainability Project Highlights Climate Change and Air Quality Soil Quality Land Use and Productivity Water Quantity and Quality Biological Diversity Analyzing biofuel pathways to quantify progress towards reducing lifecycle greenhouse gases, regulated emissions, and fossil energy use. Developing strategies and tools for producing biomass feedstocks while maintaining or enhancing soil quality. Advancing landscape design approaches that increase biomass production while maintaining or enhancing ecosystem services and food, feed, and fiber production. Assessing the water resource use and water quality of bioenergy production, and investigating opportunities for bioenergy crops to improve water quality. Investigating relationships between bioenergy crops and biodiversity, and engaging with diverse experts to understand and promote practices that conserve wildlife and biodiversity. Efforts also include evaluating sustainability indicators across the bioenergy supply chain, contributing to global scientific dialogues on bioenergy sustainability, and engaging with international organizations to understand and promote more sustainable outcomes. 25 Bioenergy Technologies Office

FY 2016 Priority Activities Algae: Pursue new research in advanced biology and carbon dioxide utilization to address yield, productivity, and integration of downstream logistics at the pre-pilot scale. Conversion: Select and complete preparation of at least two pathways for validation at integrated bench or pilot scale in FY 2017 of modeled mature $3/gge gasoline/diesel blendstock price and progress toward FY 2022 price goals ($3/gge). Feedstock Supply: Focus on feedstock supply and logistics technologies to help meet biomass feedstock price targets of $80/Dry Matter Ton in 2017. New Fuels and Vehicle Systems Optima: Establishes a link early in the R&D cycle of both fuels and engines for a systems-based approach and to create optimized solutions for fuels and engines. Collaboration with Vehicles Technologies. New Investments in the Integrated Production and Scale-Up of Drop-in Hydrocarbon Fuels: New competitive awards (up to three pilot projects or one demonstration project) to scale-up integrated production systems of drop-in hydrocarbon biofuels to accelerate advanced biofuel manufacturing. DPA: Support the military-specification jet fuel in collaboration with DOD and USDA through the Defense Production Act. 26 Bioenergy Technologies Office

BETO New Areas of Interest 1. Distillates (diesel and jet fuel) Address the non-light duty market by expanding collaborations into the aviation, marine, rail, trucking fields. Includes the need for production of bio-derived jet fuel in sufficient quantities to enable testing and certification of new fuels via the ASTM process. 2. Bioproducts Continuing to look into bio-products as long as they enable biofuels. Includes both the development and testing of bio-products (including animal feed and fish feed) from algae. 3. Natural Gas and Biogas The potential to co-utilize natural gas and biogas to produce fuels and chemicals via the gas/biomass to liquids (GBTL) processes. The development of distributed scale GBTL units that are skid mounted and mobile to utilize flared natural gas and bio-gas resources. 4. Infrastructure Needs Additional investments in infrastructure (rail, ports, barge, dams, inland waterways) to move biofuels (and other commodities) efficiently into market. 27 Bioenergy Technologies Office

Defense Production Act (DPA) Initiative In September 2014, three projects were selected under the DPA Initiative to build commercial biorefineries to produce: Drop-in fuels for military applications Domestic fuels from non-food biomass feedstocks Cost-competitive biofuels (w/o subsidies) Company Location Feedstock Capacity Groundbreakin g 28 Bioenergy Technologies Office Gulf Coast McCarran, NV Lakeview, OR Fats and Greases MSW Woody Biomass Interagency initiative to commercialize advanced biofuels Off-Take Agreements 82.0 MM g/y TBA TBD 10.0 MM g/y Spring/Summer of 2015 12.0 MM g/y TBA

Oil products in the US: Opportunity for Bioproducts in the Bioeconomy The US produces 15% of global chemicals and chemicals comprise 12% of all US exports. The US produces: ethylene, propylene, polyethylene, butadiene, butanol, polystyrene, EO, MEG These chemicals are converted to: plastics, cosmetics, pharmaceuticals, detergents, packaging, clothing, car parts Fuel makes up 76% of the volume of US oil products and is worth $935bn Chemicals make up 16% of the volume of US oil products and is worth $812bn Bioproducts enhance the economics of biofuel production Source: Bloomberg New Energy Finance, EIA, American Chemical Council 29 Bioenergy Technologies Office

What are Bioproducts? The US produces 15% of global chemicals and chemicals comprise 12% of all US exports. Butadiene Renewable Products In Use Hexamethylenediamine 1,4-Butanediol Ethylene glycol The US produces: ethylene, propylene, polyethylene, butadiene, butanol, polystyrene, EO, MEG. These chemicals are converted to: plastics, cosmetics, pharmaceuticals, detergents, packaging, clothing, car parts, fibres. Succinic acid 1,3 Propanediol Adipic acid Hydroxypropionic acid Bomgardner Chemical & Engineering News. 92 (43) 10-14. Oct 27, 2014 30 Bioenergy Technologies Office

Bioproducts Uniformly Showed Emission Reductions Compared to their Fossil-Fuel Derived Counterparts Life-Cycle Fossil Energy Consumption and Greenhouse Gas Emissions of Bioderived Chemicals and Their Conventional Counterparts Felix Adom, Jennifer Dunn, Jeongwoo Han, and Norm Sather. 31 Bioenergy Technologies Office 3

How Can Renewable Chemicals Help? Pros: Early Adopter Market. Increase feedstock supply reducing cost and risk for growing fuels uses. (More) stable pricing, disassociation from Fuels. Simpler routes to some chemicals. Novel chemicals with improved properties. Smaller plants can fit supply/demand gaps. Lower investment sums per plant. Consumer approval. Cons: Spot pricing does not reflect long term issues and potential market saturation. Industry will use cheapest sugar stream exasperating food vs fuel issues. Picking winners 32 Bioenergy Technologies Office

Bioproducts to Enable Biofuels Innovative approaches for bioproducts: Molecular replacements for petroleum derived chemicals. Performance replacements for petroleum derived chemicals. Infancy stage play to the strength of the oxygenated polymers in biomass. Lignin and waste streams to value added products (X2 the cost of biofuels on a mass basis). 33 Bioenergy Technologies Office BETO s Focus for Bioproducts for R&D AMO & USDA Application Modified from Werpy and Peterson 2008

How Can Renewable Chemicals Help? Pros: Early Adopter Market. Increase feedstock supply reducing cost and risk for growing fuels uses. (More) stable pricing, disassociation from Fuels. Simpler routes to some chemicals. Novel chemicals with improved properties. Smaller plants can fit supply/demand gaps. Lower investment sums per plant. Consumer approval. Cons: Spot pricing does not reflect long term issues and potential market saturation. Industry will use cheapest sugar stream exasperating food vs fuel issues. Picking winners 34 Bioenergy Technologies Office

Bioproducts Enabling Biofuels Scenario 1 Scenario 2 Biomass Deconstruction Fractionation Intermediates Synthesis & Upgrading Biofuels Deconstruction Fractionation Synthesis & Upgrading Biomass Intermediates Biofuels Bioproducts Bioproducts Deconstruction Fractionation Scenario 3 Synthesis & Upgrading Scenario 4 (Deemphasized) Deconstruction Fractionation Synthesis & Upgrading Biomass Intermediates Biofuels Intermediates Biofuels Biomass Waste Streams Bioproducts Intermediates Bioproducts Bioproducts are chemicals derived from biomass that enable the economics and reduce risk to manufacturers for producing biofuels 35 Bioenergy Technologies Office

Bioenergy Technologies Office - Manufacturing Activities Competitiveness Analysis (FY14-FY16) International competitiveness for fuels and products manufacturing (Bloomberg). Renewable Carbon Fiber FOA (negotiated selections to start FY15) Technologies to enable manufacture of bio-derived acrylonitrile. Lignin Valorization (Ongoing projects NREL & Others) Convergent strategies for funneling lignin to intermediates & Refinery Integration. Biochemical Upgrading FOA (selections to start FY15) NREL Muconic acid (platform intermediate) from biogas. Natureworks lactic acid from biogas. Targeted Algal Biofuels and Bioproducts FOA (FY14-FY15) MEGA-BIO (FY16 FOA) Enable fuels using products. Demonstration and Market Transformation FOA (FY15/FY16) Products that enable fuels. 36 Bioenergy Technologies Office

BETO s Waste-to-Energy (WTE) Efforts There is a significant near-term market entry opportunity to deploy WTE technologies in the U.S., specifically with regard to anaerobic digestion at landfills to recycle organic waste biomass into renewable energy, thereby enabling a national network of distributed power and biofuel production sites. Organic Wastes Waste-to-Energy Cycle Biogas (rich in methane) Heat, Electricity & Fuel Organic Compost Waste streams that could be considered for use include: Municipal solid waste Landfill gas Waste streams from waste water treatment plants (WWTPs) Bio-solids (from thermochemical or biochemical biofuel pathways) Waste Preparation Anaerobic Digestion Stabilization/Curing/Dewatering IBR Aqueous Waste Chemicals Products The DOE Loan Guarantee Office released a Renewable Energy and Energy Efficiency Solicitation for a public comment period. The solicitation is expected to provide as much as $2.5 billion in loan guarantees for commercial financing of technologies that avoid, reduce, or sequester GHG emissions. Waste-to-Energy is included in the list of eligible project types to be considered. 37 Bioenergy Technologies Office Image courtesy of Iona Capital

Energy Dense Resources Are Best Processed in Large Quantities Scaling by Volume The average U.S. petroleum refinery processes 128,000 barrels of oil equivalent per day 38 Bioenergy Technologies Office

Wet or Energy-light Resources May Be Best Processed at the Source Scaling by Replication Centralized Advanced Manufacturing In one scenario could envision local process size of 125 BOE/D Not all technologies scale up and down in the same manner 39 Bioenergy Technologies Office x 1000

Goal Economics of Scaling Small and Modular Can it be cost competitive? Goal is to achieve parity on capital cost on a per unit basis $50k per (BOE/day) Why Can it be Economical? Savings through mass production Risk reduction at small scale Low cost feeds New science and technologies that change the correlations of scale with cost Technologies That Scale Up Often Do Not Economically Scale Down 40 Bioenergy Technologies Office

The Bioeconomy Concept Revenue and economic growth Broad spectrum of new jobs Rural development Advanced technologies and manufacturing Reduced emissions and Environmental Sustainability Export potential of technology and products Positive societal changes Investments and new infrastructure 41 Bioenergy Technologies Office

The Baseline Bioeconomy Biofuels Ethanol based, transitioning to drop-in Policy driven Biopower Mostly wood wastes and wood Historically industrial heat, steam, and electricity Bioproducts Initially starch-based, transitioning to cellulosic Bioeconomy Parameter Biomass Utilization Current 200 million DMT 2015 Agricultural Outlook Forum, February 20, 2015, Growing the Bioeconomy Biopower Production (EIA) Biofuels Production Bioproducts Production Direct Revenue Total (Direct + Indirect) Revenue 30 billion kwh 15 billion gallons 2.5 billion pounds $40 billion $100 billion Direct Jobs 150,000 Total (Direct + Indirect) Jobs 480,000 Estimated CO 2 e Reduction 35 million tons Estimates are 2011 and based on various assumptions and sources that may not be consistent with other published sources. 42 Bioenergy Technologies Office

Potential Impacts of One Possible Bioeconomy Scenario 43 Bioenergy Technologies Office

Bioenergy 2015 The upcoming Bioenergy 2015 conference is one month earlier this year! Planned for June 23-24, 2015 returning to the Washington Convention Center. Bioenergy 2015 will convene key representatives from across the bioenergy supply chain, including industry, federal agencies, and Congress. Focus on what is needed to sustain the growth and success of the advanced bioenergy industry now, and into the future. 44 Bioenergy Technologies Office