Focus on Renewable Fuels

Developing Biofuels: Federal Programs

by Roger K. Conway, Director, Office of Energy, USDA, Washington, DC; Richard Moorer, Director of Biofuels Systems Division, Office of Alternative Fuels, U.S. Department of Energy, Washington, DC; and Mark Dungan, Executive Assistant to the Secretary, USDA, Washington, DC.

One of the most promising nonfood markets for farm commodities is transportation fuels.

Concern for the Nation's environment and energy security is growing. Through the 1990 Clean Air Act amendments and the President's National Energy Strategy, President George Bush has urged the Nation to step up its development and use of domestically produced biofuels because they improve environmental quality, reduce dependence on foreign oil, and strengthen national security.

USDA is committed to assisting the President's pursuit of these goals by establishing a cost-competitive, stable supply of environmentally beneficial biofuels. USDA recently developed a biofuels initiative for FY 93 and beyond. And USDA is not alone. The U.S. Department of Energy (DOE), the Environmental Protection Agency, farmers, and industries are important participants in seeing the President's goals fulfilled. For example, USDA and DOE recently signed a Memorandum of Understanding that will greatly facilitate cooperation between the two departments in this area.

USDA Biofuels Initiative

The USDA Biofuels Initiative reflects Secretary Madigan's strong interest in and commitment to helping farmers by increasing the demand for agricultural commodities. Oil imports exacerbate the U.S. trade deficit and reduce energy security, providing even more incentive for an expanded biofuels industry using domestically produced feedstocks.

The initiative focuses on the two primary biofuels: ethanol and biodiesel. The goal of the initiative is to facilitate work on all aspects of biofuel development, including feedstock development, biofuel production, and utilization. To achieve this goal, the initiative identifies three major components: research and development, economic analysis, and information and education.

Marvin Bagby, an ARS scientist, demonstrates the viscosity difference in various alternative fuels produced from oilseed crops. USDA is committed to pursuing a cost-competitive, stable supply of environmentally beneficial biofuels. USDA 0487X390-9

Research and Development. USDA proposes a major research and development plan to provide the basis for economically viable biofuel production. The research and development areas include: feedstock, conversion, coproducts, product evaluation, and technology transfer.

Most of the feedstock research, which is primarily sponsored by DOE, has focused on biomass, particularly woody and herbaceous crops. An expanded research effort will include oilseed crops. Conventional and biotechnological techniques offer the opportunity to develop plants with potential for producing more fuel. Improved production, harvesting, and storage technologies would also reduce feedstock costs.

Research is progressing in improving technology to convert feedstocks to fuel. Genetic engineering of microorganisms holds promise for improving yields, reducing fermentation times, eliminating undesirable coproducts, and improving separation efficiencies. Improved distillation and dehydration will reduce processing time and energy needed to produce biofuels.

Moreover, making new conversion technologies commercially viable in existing or proposed new facilities requires research to determine what is cost-effective. Several technologies make biodiesel technically equivalent to diesel fuel, but long-term testing also is needed to assess biodiesel engine performance and durability.

Coproduct research focuses on developing a broader range of marketable high-value coproducts, including food uses and high-volume industrial products, such as biopesticides, building materials, glues, and solvents. Coproduct development is a very important factor in lowering the cost of producing biofuels.

The research and development program reflects the joint planning and information exchange with DOE during the budget process.

Economic Analysis. The economic viability of a new technology must be assessed to determine whether it will be commercially viable. This assessment includes analysis of the feedstock market, as well as the market for products produced. As demand for biofuels increases, the price of feedstocks will rise and farm resources will be reallocated to energy crop production. This response raises two points: Enough additional feedstock must be produced to maintain the cost-competitiveness of the new technology; and sufficient agricultural resources must be available to meet the Nation's other food and fiber demands.

Regarding resources, particular interest has been given to land. Although some cropland may be replaced with energy crops, the precise effect is unclear because nonfood energy crops can be grown on a wide range of lands, such as pasture or forest lands that are in abundant supply. Economic analysis also includes assessing the expansion of feedstocks on rural economies.

Analyzing biofuel markets is another component of economic analysis. With the expanding oxygenate market, analysis will address how future biofuels could compete with high-oxygen fuels made from petroleum. Moreover, another important task will be to identify key economic factors to develop a new market for biodiesel.