The Department of Energy has awarded up to $24 million for three research groups to work out how to make algae-based biofuels commercially viable. DOE says algae has great potential, but several major technical and economic challenges remain, which are outlined in its National Algal Biofuels Technology Roadmap.
The report says the Energy Independence and Security Act of 2007 requires transportation fuel sold in the United States to contain a minimum of 36 billion gallons of renewable fuels, including biomass-based diesel, by 2022. DOE confirms that cellulosic ethanol is expected to play a large role in meeting that target, and "next-generation biofuels" such as those derived from algae show "significant promise."
In response, three new algae research projects have been launched. Following on from the algae research funding, USDA has released a report outlining regional strategies to increase biofuel production, calling for substantial investment in biorefineries. These will be given a further boost by the new renewable fuel standard (RFS2), which came into force July 1.
More than 500 new biorefineries would be needed to meet the goal of tripling biofuel consumption by 2022, according to the study. The report estimates the additional plants would cost about $168 billion, a price tag USDA admits is "substantial."
Meeting the 2022 target will require building facilities that can convert a wide range of new biofuel feedstocks, including crop residues, forest thinnings, municipal waste, and perennial grasses such as switchgrass. However, these would cost more than four times as much to build as a conventional corn ethanol facility, based on USDA estimates.
Industry officials also point out that it has become virtually impossible to find investors for advanced biofuel projects. The Renewable Fuels Association, Growth Energy and other industry groups have been pressing the Obama administration to relax restrictions on loan guarantee programs. "Right now few if any banks are willing to work with biofuels," said Matt Hartwig, an RFA spokesman.
