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This report provides a status of the markets and technology development involved in growing a domestic bioenergy economy as it existed at the end of calendar year 2013. It compiles and integrates information to provide a snapshot of the current state and historical trends influencing the development of bioenergy markets. This information is intended for policy-makers as well as technology developers and investors tracking bioenergy developments. It also highlights some of the key energy and regulatory drivers of bioenergy markets.

The Biomass Program is one of the nine technology development programs within the Office of Energy Efficiency and Renewable Energy (EERE) at the U.S. Department of Energy (DOE). This 2011 Multi-Year Program Plan (MYPP) sets forth the goals and structure of the Biomass Program. It identifies the research, development, demonstration, and deployment (RDD&D) activities the Program will focus on over the next five years, and outlines why these activities are important to meeting the energy and sustainability challenges facing the nation.

This report discusses the development of greenhouse gas (GHG) emissions estimates for the production of Fischer-Tropsch (FT) derived fuels (in particular, FT diesel), makes comparisons of these estimates to reported literature values for petroleum-derived diesel, and outlines strategies for substantially reducing these emissions.

Despite a rapid worldwide expansion of the biofuel industry, there is a lack of consensus within the scientific community about the potential of biofuels to reduce reliance on petroleum and decrease greenhouse gas (GHG) emissions. Although life cycle assessment provides a means to quantify these potential benefits and environmental impacts, existing methods limit direct comparison within and between different biofuel systems because of inconsistencies in performance metrics, system boundaries, and underlying parameter values.

Traffic flows in the U.S. have been affected by the substantial increase and, as of January 2009, decrease in biofuel production and use. This paper considers a framework to study the effect on grain transportation flows of the 2005 Energy Act and subsequent legislation, which mandated higher production levels of biofuels, e.g. ethanol and biodiesels. Future research will incorporate changes due to the recent economic slowdown.

This paper examines the possibilities of breaking into the cellulosic ethanol market in south Louisiana via strategic feedstock choices and the leveraging of the area’s competitive advantages. A small plant strategy is devised whereby the first-mover problem might be solved, and several scenarios are tested using Net Present Value analysis.

This paper introduces a spatial bioeconomic model for study of potential cellulosic biomass supply at regional scale. By modeling the profitability of alternative crop production practices, it captures the opportunity cost of replacing current crops by cellulosic biomass crops. The model draws upon biophysical crop input-output coefficients, price and cost data, and spatial transportation costs in the context of profit maximization theory. Yields are simulated using temperature, precipitation and soil quality data with various commercial crops and potential new cellulosic biomass crops.

Events external to agriculture have set in motion the conditions for structural change in the marketing of corn in the U.S. These included a rapid increase in the price of crude oil from $40 per barrel to over $100 caused by hurricanes, geopolitical events, an increased global demand for energy from countries like China and India, and in December 2007, the U.S. raising the renewable fuel standards. The results of this research show that there could be significant changes in the historical utilization and marketing of corn in the U.S.

In this study we use data envelopment analysis to decompose the overall economic efficiency of a sample of ethanol plants into three subcomponents: technical efficiency, allocative efficiency and a new component we call marketing efficiency. The relative importance of these sources of efficiency is of particular interest given the recent history of bankruptcies, plant closings and ownership change in the industry. Results reveal that observed production units are very efficient from a technical point of view as suggested by a standard deviation of 1% in technical efficiency.

In the last decade biofuel production has been driven by governmental policies. This article reviews the national strategy plans of the world’s leading producers. Particular attention is dedicated to blending targets, support schemes and feedstock use. Individual country profiles are grouped by continent and include North America (Canada and the US), South America (Argentina, Brazil, and Colombia), Europe (the European Union, France, and Germany), Asia (China, India, Indonesia, Malaysia, and Thailand) and Australia.

Enhanced environmental quality, fuel security, and economic development along with reduced prices of ethanol-gasoline blends are often used as justifications for the U.S. federal excise tax exemption on ethanol fuels. However, the possible effect of increased overall consumption of fuel in response to lower total price, mitigating the environmental and fuel security benefits, are generally not considered. Taking this price response into account, the optimal U.S. ethanol subsidy is derived.