R&D Funding Update: DOE, USDA Announce Loans & Grants to Drop-in Fuels, Waste-to-Energy, Feedstocks

On July 10, the U.S. Department of Energy (DOE) opened the Renewable Energy and Efficient Energy solicitation, a $4 billion loan guarantee for commercial-scale projects that reduce, avoid, or sequester carbon dioxide (CO2).  The loans are authorized by Title XVII of the Energy Policy Act of 2005 through Section 1703 of the Loan Guarantee Program, and were announced in April. The DOE oversees a $30 billion loan portfolio of more than 30 projects across the United States.  This solicitation covers five energy technology areas that DOE identifies as “catalytic, replicable, and market ready.”  Technologies include: grid integration and energy storage, drop-in biofuels, waste-to-energy facilities, existing facility improvements and energy efficiency. 

Drop-in biofuels are chemical equivalents for gasoline and oil and no additional modifications to engines or infrastructure are required in order to distribute and use these fuels.  According to DOE, projects may include, “new bio-refineries that produce gasoline, diesel fuel, and/or jet fuel; bio-crude refining processes; and modifications to existing ethanol facilities to gasoline, diesel fuel, and/or jet fuel.”  As for waste-to-energy, qualified projects include biodigesters, landfill methane, and crop and forest residue to energy.  Significantly, all eligible projects must reduce or sequester anthropogenic CO2. The loan guarantees are for up to 80 percent of total costs, and the length of the loans are between 12 and 30 years. The deadline for initial applications is October 1.

Additionally, DOE’s office of Energy Efficiency and Renewable Energy (EERE) announced two grants for research on drop-in fuels on July 16, furthering the agency’s goal of cost-competitive renewable biofuels by 2017.  A total of $3.2 million was granted to SRI International’s work in California on biofuels in order to produce bio-crude sourced from algae, and $3.1 million was granted to the Research Triangle Institute (RTI) to maximize energy recovery in bio-fuels production. 

The U.S. Department of Agriculture (USDA) and DOE also announced on Thursday that they have jointly awarded $12.6 million to 10 projects focusing on feedstock development for biofuels as well as biobased products.  The projects are part of a USDA DOE partnership that began in 2006 to develop new feedstocks for biofuels and biobased chemicals.  Funded projects are investigating the genetics of diverse feedstocks such as sorghum, switchgrass, pennycress, camelina, and miscanthus.  According to Secretary of Energy Ernest Moniz, "Biofuels and bio-based products offer the potential of homegrown American resources that can reduce our dependence on imported oil and also cut carbon emissions… This advanced research is helping us to lay the groundwork for biomass as an important part of the low-carbon future."

For more information see:

Renewable Energy and Efficient Energy Projects Loan Guarantee Solicitation, U.S. Department of Energy, Loan Programs Office

Energy Department Awards $6 Million to Advance Cost-Competitive Biofuels, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy

DOE loan guarantee program targets biofuels, waste-to-energy, Ethanol Producer Magazine 

Gettin’ yer Benjamins: DOE finalizes $4B loan guarantee program for renewables, Biofuels Digest 

USDA, DOE funding supports bioenergy feedstock development, Biomass Magazine 

Authors:

Yi Xu and Jessie Stolark