A $114 million investment program covering four small-scale biorefinery projects was announced by the US Department of Energy (DOE) today (29th January).  The program, to be delivered over four years (Fiscal Years 2007-2010), will fund the development of plants located in Commerce City, Colorado; St. Joseph, Missouri; Boardman, Oregon; and Wisconsin Rapids, Wisconsin.

Building on President Bush’s goal of making cellulosic ethanol cost-competitive by 2012, these ten-percent of commercial-scale biorefineries will use a wide variety of feedstocks and test novel conversion technologies to provide data necessary to bring online full-size, commercial-scale biorefineries.  On average, commercial-scale biorefineries input 700 tons of feedstock per day, with an output of approximately 20-30 million gallons a year (MMGY); these small-scale facilities will input approximately 70 tons of feedstock per day, with an estimated 2.5 MMGY.

Due to an overwhelming response to this solicitation, the Department anticipates selecting a second round of small-scale projects later this spring, bringing DOE total investment up to $200 million should a second round of selections be made.  Secretary Bodman made today’s announcement while delivering keynote remarks at the US Chamber of Commerce Biofuels Dialogue Series, “Outlook for an Emerging Global Biofuels Market.”

“These project proposals were innovative and represent the geographic diversity that we strive for when making the widespread use of clean, renewable fuels commercially viable,” Secretary Bodman said.  “Spurred by the President’s ambitious plan to reduce projected US gas consumption by twenty percent by 2017, our goal is to aggressively push these technologies forward to get them out into the marketplace as quickly as possible, so they can have a real impact.  Advanced biofuels offer tremendous promise for helping our nation to bring about a new, cleaner, more secure and affordable energy future.”

Expected to be operational in four years, the selected small-scale biorefineries projects will produce liquid transportation fuels such as cellulosic ethanol, as well as bio-based chemicals and bio-based products used in industrial applications.  Combined with industry cost share, more than $331 million will be invested in these four projects.  DOE is also working with these companies, and other research partners, to develop methods for reducing water and fertilizer needs associated with production of these fuels.  With all of these projects, the amount of fossil fuel used to produce the biofuels is significantly less than that associated with gasoline – on average as much as 90 percent less over the lifecycle.

Negotiations between the selected companies and DOE will begin immediately to determine final project plans and funding levels.  Funding is subject to appropriations from Congress. The four projects selected were: ICM Incorporated of Colwich, Kansas; Lignol Innovations Inc., of Berwyn, Pennsylvania; Pacific Ethanol Inc., of Sacramento, California; and Stora Enso, North America, of Wisconsin Rapids, Wisconsin.