Clarkson Class lecture 070903

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Lena Hansen Rocky Mountain Institute Biofuels: Considerations and Potential Clarkson University 5 September 2007

Transcript of Clarkson Class lecture 070903

Page 1: Clarkson Class lecture 070903

Len a Han se nRocky Mou ntain Inst itu te

Biofuels:Considerations and Potential

Clarkson Univ ersi ty5 Sep tember 2007

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Abundance by DesignTM

Understanding the Goal

• President Bush’s goal– Produce 35 billion

gallons of alternativefuel by 2017

• Several possibleunderlying motivators:– Increase energy

security– Decrease fuel price

volatility– Increase sustainability

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Where does a car’s gasoline go?

• 6% accelerates the car, <1% moves the driver

• Three-fourths of the fuel use is weight-related

• Each unit of energy saved at the wheels saves ~7-8 units ofgasoline in the tank (or ~3-4 with a hybrid)

• So first make the car much lighter! (safer, ~free)

Rolling Resistance

Braking Resistance

Aerodynamic drag

Accessory lossEngine Loss

Idling Loss

Drivetrain Loss

87% of the fuel energy is wasted13% tractive load

0% 20% 40% 60% 80% 100%

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The future of high efficiency vehicles

•Heavy trucks use 12% of all US oil

•Could save 65% of that for the equivalentof $0.25/gallon of diesel

•Move from 6.2 mpg to 11.8 mpg

•Airplanes can become 2-3x more efficient

•Could save 45% of 2025 demand for theequivalent of $0.45/gallon of jet fuel

•Personal cars are largest users of US oil

•Could save 69% of that for the equivalentof $0.46/gallon of gasoline

•Move from ~20 mpg to 66 mpg

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After efficiency…alternative supply

Conventional Wisdom

Conventional Wisdom

State of the Art

State of the Art

Net Imports

Total Petroleum Use

mill

ion

barr

els/

day

1950 1975 2000 2025

30

20

10

U.S. petroleum product consumption and net petroleum imports What are the choices?

Hydrogen

Compressed natural gas

Synthetic fuel

Electricity

Biofuels

What are the choices?

Hydrogen

Compressed natural gas

Synthetic fuel

Electricity

Biofuels

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How do we use transportation oil?

Source: EIA Annual Energy Outlook

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Different types of biofuels for different needs

Need:

Alternative:

Chemicalstructure:

Feedstocks:

US production:

Substitute for Diesel

Biodiesel

Oil

Waste veggieoil, soy beans,jatropha, palm

Substitute for Gasoline

Ethanol

Alcohol

Corn, sugar,cellulose

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Current production reflects demand

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Detail on: Ethanol

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Types of Ethanol:not all ethanol is created equal

Can be grown onmarginal lands,

potentially high yields

Energy-intensive,competes with food

Key Characteristics

Pilot projectsCommercial scaleStatus

Enzymatic hydrolysis,thermochemicalFermentation

Conversion process

Switchgrass, poplarSugarcane, cornFeedstockexamples

CelluloseSugar/starchFeedstocks

State ofthe Art

Conventional

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Market reality: biofuels must be cost-competitive

Current tax exemption ends

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Key drivers of costState of the ArtConventional WisdomCost Element

DOE grants

$2.50/gal (current)

~100-120 gal/ton(target)

5 (current)-10 (target)tons/acre

Site specific

?

Cellulose

State incentives, renewable fuel standards, fuelingstation incentives, etc

Many others

n/aResearch &Development

$0.51/galProduction Tax Credit

Incentives

$1.40/galTotal Production Cost

~100-110 gal/tonProcess efficiency

Conversion

~7 tons grain/acreYield

Site specificTransportation

ExpensiveCrop Cost

CornFeedstock

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Detail on: Biodiesel

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Types of Biodiesel

Dedicated CropsDedicated CropsWaste OilType

International

Not established in U.S.

Commercialized

Transesterification,gasification

Jatropha, palm oil,cellulose

State of the Art

DomesticDomesticLocation

High cost feedstock,competes with food

Low cost, reducesinput to landfills

KeyCharacteristics

CommercializedCommercializedStatus

TransesterificationTransesterificationConversion

process

Soy bean oilUsed cooking oilFeedstockexamples

Conventional

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Market reality: biofuels must be cost-competitive

EPACT subsidy ends

CCC subsidy ends

CCC subsidy starts

EPACT subsidy starts

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Key drivers of cost

•Conversion process is well understood andreasonably inexpensive

•Cost is in the feedstock

•Oil crops generally have low yields

•Exceptions are tree crops like palm and jatropha

•Costs of these crops is unclear…very few fieldtests in the U.S.

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Non-economic factors

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Benefits of Biofuels

?

?

~80%

SOA

~70%

CWWasteSOACW

?

~80%?

Biodiesel

Energy Security

New Revenues

Jobs

Agricultural Revitalization

~85%~25%GHG reduction

Ethanol

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Pitfalls of Biofuels

Competition with food crops

?

?

SOA

CWWasteSOACW

Biodiesel

Labor Exploitation

?Damage to Ecosystem Services &

Preservation

Water use

Ag Impacts (toxics, soil erosion,

water pollution)

Ethanol

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Key Barriers to Biofuels Adoption:the biofuels value chain

Agriculture End UseDistributionConversion

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Key Barriers to Biofuels Adoption:the biofuels value chain

Agriculture End UseDistributionConversion

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And wait, there’re more barriers

Agriculture End UseDistributionConversion

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Key questions to consider

• Is the goal energy security, fuel price hedge,agricultural revitalization, or climate change mitigation?

• How much biofuel do we really need?

• How do you distinguish between sustainable andunsustainable biofuels?

• How quickly will R&D efforts progress?

• What policy interventions are necessary and possible?

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Lena [email protected](970) 927-7344