Review of the Research Strategy for Biomass-Derived Transportation Fuels (1999) / Chapter Skim
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2 Context for Biomass-Derived Fuels
2 Context for Biomass-Derived Fuels
Pages 11-21
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From page 11... ...
ADVANTAGES AND DISADVANTAGES OF BIOFUELS Air Quality The Clean Air Act Amendments of 1990 included the implementation of Environmental Protection Agency (EPA) regulations for reformulated gasoline to mitigate nearground ozone pollution, a principal component of smog in the United States.
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From page 12... ...
A key factor influencing vehicle emissions is the air-to-fuel ratio.2 Additional oxygen in the combustion mixture of fuel and air in the engine decreases the amount of carbon monoxide emitted from the tailpipe. In older vehicles with open loop controls, the addition of ethanol to the fuel is necessary to increase the oxygen level in the combustion chamber and lower carbon monoxide emissions.
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From page 13... ...
In a presentation to the committee by an industrial firm, Arkenol, Inc., on its efforts to develop international business prospects in China, Russia, Brazil, and Europe, the limits on market opportunities for biomass-derived transportation fuels were apparent (Miller, 1999~. Based on this presentation, as well as Brazil's past experiences with ethanol as a motor vehicle fuel, the committee concluded that markets throughout the world for bioethanol are less influenced by currently available technologies than by tax incentives, availability, and the cost of petroleum fuels, as well as a significant market share of vehicles that can effectively use the alternate fuel.
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From page 14... ...
Renewable Fuels Biomass-based fuels are renewable energy sources that could contribute to a domestic source of liquid transportation fuels, and cellulosic bioethanol could help reduce U.S. dependence on foreign sources of oil.
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From page 15... ...
Technological improvements and cost reductions achieved by the program may be very important in the midterm and long term. If competitive costs can be achieved, fuel ethanol produced from cellulose could potentially compete in the following auto fuel markets (see Table 2-1~: the current subsidized market, in which bioethanol is blended with gasoline generally at about 10 percent concentration to satisfy oxygenate and octane requirements a future unsubsidized market, in which bioethanol is blended with gasoline to satisfy octane requirements a long-term market, in which bioethanol is used as an
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From page 16... ...
The ethanol values determined for internal combustion engines are based on the assumption that no significant changes in market fundamentals would impact the price differential between crude oil and gasoline, the relative octane value, and the gasoline vapor pressure specifications. Actual market prices vary over time depending on supply and demand.
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From page 17... ...
as a replacement for some of this fuel must be based on the properties of the fuel, the 5 These ethanol values are based on the following assumptions: no significant changes in market fundamentals that would impact the differential between crude oil and gasoline, average fuel octane value and gasoline vapor pressure specifications; estimated values would provide a reasonable return on investment; and industry would make the necessary investments in pipeline infrastructure to permit transporting ethanol-gasoline blends from refineries. The correlation of gasoline price to crude oil price is based on recent historical U.S.
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From page 18... ...
Prior Estimate In June 1991, an assessment of ethanol manufacturing costs based on the best available technology was made by the Fuels and Chemicals Research and Engineering Division of the Solar Energy Research Institute (SERI, the predecessor of NREL)
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From page 19... ...
(Wooley et al., 1999~: a yield increase of 21 percent to 112 gallons of ethanol per ton of feedstock resulting in a manufacturing increase of 21 percent to 87.5 million gallons of ethanol per year a capital-cost increase of 2 percent to $131 million a manufacturing cost reduction from $0.76 to $0.70 per gallon of ethanol at $25 per ton of feedstock a manufacturing cost reduction from $0.95 to $0.86 per gallon of ethanol at $42 per ton of feedstock OFD's cost estimates are based on potentially lower cost technologies that are being developed outside of its own program. Even lower cost technologies than these may become available.
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From page 20... ...
NOTE: These calculated ethanol values are based on the following assumptions: no significant changes occurred in market fundamentals that would affect the differential between crude oil and gasoline, average fuel octane value, and gasoline vapor pressure specifications; estimated values provide a reasonable return on investment; and industry makes the necessary investments in pipeline infrastructure to transport ethanol-gasoline blends from refineries. The correlation of gasoline price to crude oil price is based on recent historical U.S.
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From page 21... ...
Conclusion. In the near term, the primary market for ethanol fuel will be as a gasoline blend agent.
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