Establishing a Repository for Feedstock Readiness Level Evaluations

with Farm to Fly 2.0

Todd CampbellPolicy Advisor, USDA

A D VA N C E D B I O E C O N O M Y F E E D S TO C K C O N F E R E N C EJ U N E 1 0 T H , 2 0 1 5

Bioeconomy Definition

The bioeconomy is defined as: The global industrial transition of sustainably

utilizing renewable aquatic and terrestrial biomass resources in energy, intermediate, and

final products for economic, environmental, social, and national security benefits.

--From 2014 Report commissioned by USDA BioPreferred: Why Biobased? Opportunities in the Emerging Bioeconomy

The Bioeconomy Concept

• Revenue and economic growth

• Broad spectrum of new jobs

• Rural development• Advanced technologies

and manufacturing• Reduced emissions and

Environmental Sustainability

• Export potential of technology and products

• Positive societal changes

• Investments and new infrastructure

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Determining Biomass Availability in 2030

• Based on the U.S. Billion-Ton Update, modified to use the 2013 USDA Long-Term Forecast.

• Modified biomass supply curves to include transportation, preprocessing, and storage/handling.

• Used an average cost of $60 per dry ton to the mouth of the convertor.

• Included all feedstock types as well as “currently used” and “potential.”

• Applied a 10% loss factor.

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Supply Curve Results

2012 Baseline scenarioat $80 per dry ton

Supply Curve Results

2030 Baseline scenario at $60 per dry ton

Opportunities across the Supply Chain

Agricultural Act of 2014 - Title IX – Energy and Beyond

• Biobased Markets Program (9002)• Biorefinery, Renewable Chemical, and Biobased

Product Manufacturing Program (9003)• Repowering Assistance Program (9004)• Bioenergy Program for Advanced Biofuels (9005)• Biodiesel Fuel Education program (9006)

• Rural Energy for America Program (REAP - 9007)• Biomass Research and Development (9008)• Feedstock Flexibility Program (9009)

• Biomass Crop Assistance Program (9010)• Community Wood Energy Program (9012)

Establishment, Harvest, Storage, TransportationRisk Mitigation for Growers

• Through the Biomass Crop Assistance Program, USDA has incentivized more than 800 producers on over 47,000 acres across 188 counties in 12 states to establish and produce seven different dedicated energy crops since 2009, $8M for 2015 existing expansion; NEW Project Area Proposals this summer with submission period through November

• In 2014, Farm Service Agency county offices supported BCAP contract approvals for $4.4M to deliver approximately 220,000 dry tons to 19 facilities in 10 states, $11.5M through December 2015

• USDA offers insurance coverage for farmers growing biofuel crops like switch grass and camelina and we are helping identify farmland most suitable for energy crops.

• Noninsured Crop Disaster Assistance Program expanded in 2014 Farm Bill for bioenergy crops not covered under crop insurance program.

• USDA invested $332M since 2009 to accelerate research under NIFA AFRI ranging from genomic research on bioenergy crops, to development of conversion processes and costs/benefit analysis

Construction and Fuel ProductionHelping to Power the Military

• Rural Development supporting efforts to build six new pioneer plants, in addition to two existing facilities previously supported by the 9003 Program; New regulation due out in near future

• To encourage the production of advanced biofuels, USDA has made payments through the Advanced Biofuel Payment Program for over $286M to over 300 companies in 47 states since 2009.

• Updated Rural Energy for America Program Regulation make ~$280 million available with Loan Guarantees up to $25M open year round; partnered in over 4 billion gallons capacity since 2003

• In 2010, USDA partnered with the DOE and Navy to speed the development of domestic, competitively-priced drop-in diesel and jet fuel substitutes, Agencies jointly committed up to $510M

• Three award made under Defense Production Act for $70M each, 100MMG Capacity; Farm to Fleet program announced Dec. 2013, makes biofuel part of regular bulk fuel purchase and use.

USDA Institutes for Biobased Manufacturing Innovation Bolstering New Markets• President’s 2016 Budget includes $80M for USDA public-private

partnerships to establish two Innovation Institutes which engage industry, leverage funding, and facilitate tech transfer. BioManufacturing- Building the scientific foundation, processes, and workforce capacity to move bioenergy and biobased product research from development to deployment and commercialization. Nanocellulosics- Focused on utilization of cellulose to be turned into a renewable supply of industrial materials, ensuring that the United States is the leading global source of commercial cellulosic nanomaterials research, innovation, production, and commercialization.

• $100M to boost infrastructure for renewable fuel use, seeking to double number of higher blend renewable fuel pumps; June NOSA

• USDA is strengthening markets for biobased products with ~2,000 products carrying the BioPreferred label, 150 more in process; Represents companies in over 40 countries on six continents

• USDA has forged a partnership with the commercial aviation enterprise to enable, commercially-viable aviation biofuel supply chains that are able to support one billion gallons of production capacity, use by 2018.

• DOE formally joined effort in 2014• Regional and state level, connecting partners to develop

successful supply chains and bring product to market. • Market beginning to develop with multiple airlines

having flown domestic flights powered by biofuels; established offtake agreements with fuel suppliers; Military biofuel testing, bulk fuel solicitation and use.

Farm to Fly 2.0 (F2F2)

• Goals:– Benchmark current feedstock readiness status– Create repository of FSRL evaluations– Create guidance for executing FSRL evaluations

• Potential users:– Policy makers and R&D funding organizations identifying

gaps that require additional R&D funding or incentives;– Fuel purchasers (e.g., airlines) looking to evaluate

proposals for fuel procurement;– Fuel producers looking to identify feedstock options.

F2F2 FSRL Subteam

FSRL uses the same Technology Readiness Level (TRL) scale as the Fuel Readiness Level (FRL) tool

FSRL descriptions are parallel with FRL (fuel conversion process readiness level)

FSRL is described by four readiness components: (1) Production; (2) Market; (3) Policy; and (4) Linkage

Feedstock Readiness Level (FSRL) Tool Components

FSRL tool modeled after and designed to complement the CAAFI Fuel Readiness Level (FRL) tool.

FSRL developed jointly by USDA/CAAFI (FAA/Volpe) at CAAFI’s request

Feedstock Readiness Level (FSRL) Components

Fuel Readiness Level (FRL)

Feedstock Readiness

Level #

FSRL Description (1) PROD (2) MARK (3) POLY (4) LINK Conversion Process

• Specific to feedstock, conversion process, region

• Two checklist versions – Dedicated crops and woody

species– Agricultural and forest residues

• Summary table – Includes current and anticipated

FSRL status– Provides opportunity to describe

rationale for rating for each component

FSRL ChecklistFornax, 1988

• Instructions Sheet

• FSRL Checklist for Dedicated Crops and Woody Species

• FSRL Checklist for Agricultural and Forest Residues

• Summary Table Template

• FSRL Checklist Example (filled out)

• Summary Table Example (filled out)

FSRL Checklist Structure

• Instructions Seet• FSRL Checklist for Crops and Woody Species• FSRL Checklist for Agricultural and Forest

Residues• Summary Table Template• FSRL Checklist Example (filled out)• Sumary Table Example (filled out)

FSRL Checklist Structure

Request for Evaluations

Please contact us if you would like help performing or sharing an evaluation:

Kristin LewisVolpe National Transportation Systems Centerkristin.lewis@dot.gov 617-494-2130

Thank you!

For more information on USDA Energy and Bioeconomy Programs, visit:

www.usda.gov/energytodd.campbell@osec.usda.gov