BIOENERGY TECHNOLOGIES OFFICE EXECUTIVE SUMMARY PEER RE IEW 2013 REPORT REVIEW PANEL SUMMARY REPORT AND PROJECT RESULTS February 2014 U.S. DEPARTMENT OF ENERGY / BIOENERGY TECHNOLOGIES OFFICE 2013 PEERM RayE V20I–E2W4, A RleExaPnOdrRiaT, VA July 30, Washington, D.C. 1 This page is intentionally left blank EXECUTIVE SUMMARY CONTENTS INTRODUCTORY LETTER .......................................................................................................................................................ii EXECUTIVE SUMMARY ..........................................................................................................................................................iii ACRONYM GUIDE ....................................................................................................................................................................v INTRODUCTION .......................................................................................................................................................................1 ALGAE .......................................................................................................................................................................................11 ANALYSIS AND SUSTAINABILITY ....................................................................................................................................107 BIOCHEMICAL CONVERSION ..........................................................................................................................................203 BIODIESEL ............................................................................................................................................................................281 BIO-OIL ..................................................................................................................................................................................313 FEEDSTOCK SUPPLY AND LOGISTICS ............................................................................................................................419 GASIFICATION ......................................................................................................................................................................511 HEAT AND POWER ............................................................................................................................................................567 INTEGRATED BIOREFINERIES .........................................................................................................................................601 STEERING COMMITTEE FINAL REPORT AND OVERALL PROGRAMMATIC RESPONSE .....................................659 2013 PEER REVIEW REPORT i Dear colleagues, In the spring and summer of 2013, the Office of Energy Efficiency and Renewable Energy’s (EERE’s) Bioenergy Technologies Office (BETO or the Office) implemented a comprehensive external review of its research, development, demonstration, and deployment portfolio. The BETO Project Peer Review was held May 20–24, 2013, at the Hilton Mark Center, in Alexandria, Virginia, and was followed by a higher-level, Program Management Review on July 30, 2013, at the Renaissance Hotel, in downtown Washington, D.C. The review was conducted in accordance with the EERE peer review guidelines, and it was designed to provide an external assessment of the projects in BETO’s portfolio and collect external stakeholder recommendations on the overall scope, focus, and strategic direction of the Office. Results from the peer review process are used to inform programmatic decision making; to enhance active project management; and to modify, expand, or discontinue existing projects. In total, 219 projects across nine key technology areas—representing a total BETO investment of approximately $1.6 billion—were reviewed by 42 external experts from industry, academia, and government. The key technology areas reviewed during the 2013 review were as follows: • Algae • Biodiesel • Gasification • Analysis and Sustainability • Bio-Oil • Heat and Power • Biochemical Conversion • Feedstock Production • Integrated Biorefinery. and Logistics The 2013 Peer Review comprised three levels of review: (1) individual projects were scored on the basis of accomplishment, relevance, approach, future plans, and critical success factors; (2) each technology area portfolio was evaluated for overall potential impact, synergies, and effective project management; and (3) the structure and overall strategic direction of the Office was reviewed by an external Steering Committee. This report contains the results of each level of review, and represents the culmination of a 14-month peer review process. This report is inclusive of the inputs of approximately 300 participants in the peer review process, including principal investigators, reviewers, Steering Committee members, BETO staff, and contractors from BCS, Incorporated. The Office would like to thank all of the reviewers and members of the Steering Committee who participated in this review. BETO is appreciative of the valuable insights and contributions that have been provided throughout the peer review process. Achieving the objectives of the Office is dependent on the effective management of all the projects in BETO’s existing portfolio and on the appropriate focus and structure of future initiatives. BETO values the input of all the stakeholders in the bioenergy sector and looks forward to working with them in the years ahead to continue progress on the path toward building a successful advanced bioenergy industry. Sincerely, Dr. Jonathan Male Director, Bioenergy Technologies Office EXECUTIVE SUMMARY EXECUTIVE SUMMARY The 2013 peer review process yielded a number of important results for the Bioenergy Technologies Office (BETO or the Office). External reviewers and Steering Committee members delivered a positive overall assessment of the Office and validated much of BETO’s current research approach and technical strategy. The shift in focus from research and development in ethanol to hydrocarbon fuels was broadly supported as an appropriately timed transition in technical emphasis, and the Steering Committee commended the diverse mix of feedstocks, conversion pathways, targeted end products, and technology scales on which the Office portfolio is built. Project portfolios were found to be actively managed and appropriately oriented toward those projects that exhibited high degrees of innovation and held the potential for significant industrial impact. Many of the integrated biorefinery projects were seen to be nearing completion and on the verge of adding significant production volumes to industry capacity. BETO’s high-tonnage feedstock logistics projects were identified as a key asset, and several of the consortia projects, including the National Advanced Biofuels Consortium, were expected to yield significant technological dividends. In general, projects from the national laboratories and those that were the result of competitive selection scored well, and a number of the public-private partnerships that leveraged the resources of both sectors stood out as exemplary projects. In contrast, generally most, but not all, of the Congressionally directed projects scored on the lower end of the project spectrum. Key recommendations included an expanded focus on understanding insertion points for hydrocarbon intermediates and increased coordination with the petroleum industry. The Steering Committee recommended steps to develop a better understanding of compatibility and blending requirements for hydrocarbon fuels and the fuel registration process. Reviewers recommended that the Office standardize assumptions and methodology for techno-economic analysis and life-cycle assessments, which should be used for cross-portfolio analysis and funding opportunity announcements (FOAs). Of the new potential areas of interest presented to the Steering Committee (natural gas-biomass to liquids, waste-to-energy conversion, carbon fiber, and an incubator program), the strongest, near-unanimous support was voiced for an incubator program that would allow BETO to develop potentially disruptive accelerator technologies. The Steering Committee also recognized the potential for low-cost natural gas to either enhance or inhibit the development of an advanced biofuels industry, and they urged the Office to continue to explore BETO’s role in the emerging natural gas-biomass to liquids sector. Finally, reviewers ex- pressed concern over the future budget profile of the Office and the continuing need for cost-share support for the construction of first-of-a-kind demonstration and commercial projects. As a result of the 2013 Peer Review, BETO is moving forward with many of the recommendations provided by the Steering Committee and individual review panels. The Office is planning to establish a petroleum industry coordinating group and explore additional ways to interface with the petroleum and refining industry. Pending available funding, BETO is planning to issue a FOA in fiscal year 2014 for proposals outside of the Office’s current portfolio to be included in an incubator program. In September 2013, BETO organized a Natural Gas-Biomass to Liquids Workshop to collect stakeholder inputs on an appropriate role for BETO, and the Office plans to contin- ue work with the Office of Fossil Energy and the Advanced Research Projects Agency-Energy on research in this emerging area. At the portfolio level, the peer review provided a number of invaluable insights and specific recom- mendations that will continue to be utilized in managing specific projects and ongoing improvements in portfolio planning and oversight. 2013 PEER REVIEW REPORT iii ACRONYM GUIDE ACRONYM GUIDE $/MT Dollars per metric ton ABPDU Advanced Biofuels Process Demonstration Unit AD Anaerobic digestion AFDW Ash-free dry weight AFEX Ammonia fiber expansion ALD Atomic-layer deposition ALM Algae Logistics Model ALU Algal lipid upgrading ANL Argonne National Laboratory AOP Annual operating plan ARRA American Recovery and Reinvestment Act of 2009 ARPA-E Advanced Research Projects Agency-Energy ASTM American Society for Testing and Materials ATP3 Algae Testbed Public–Private Partnership BAT Biomass Assessment Tool BDO Butanediol BETO Bioenergy Technologies Office BMP Best management practices BPT Bale-picking truck BSM Biomass Scenario Model Btu British thermal unit °C Degrees Celsius CABComm Consortium for Algal Biofuels Commercialization CAPEX Capital expenditure CBM Cellulose-binding module CBP Consolidated bioprocessing CDP Congressionally directed projects CH Methane 4 CHASE Carbon, Hydrogen, and Separation Efficiencies in Bio-Oil Conversion Pathways CHG Catalytic hydrothermal gasification cm Centimeter CO Carbon monoxide CO Carbon dioxide 2 CPBR Consortium for Plant Biotechnology Research, Incorporated CRADA Cooperative research and development agreements CRP Conservation Reserve Program DARPA Defense Advanced Research Projects Agency DCR Davison circulating riser 2013 PEER REVIEW REPORT v BIOENERGY TECHNOLOGIES OFFICE DOD Department of Defense DOE Department of Energy DT Dry ton EERE Office of Energy Efficiency and Renewable Energy EISA Energy Independence and Security Act of 2007 EMWD Eastern Municipal Water District EPA Environmental Protection Agency ePBR Electronic photobioreactor EtOH Ethanol °F Degrees Fahrenheit FOA Funding opportunity announcement FCC Fluid catalytic cracking FFA Free fatty acid FLS Feedstock logistics systems FT-ICR-MS Fourier transform ion cyclotron resonance mass spectrometry FT Fischer-Tropsch gal Gallon gal/acre/yr Gallon per acre per year GBEP Global Bioenergy Partnership GCAM Global Change Assessment Model gge Gallon of gasoline equivalent GHG Greenhouse gas GIS Geographic information systems g/l Grams per liter g/m2 Grams per square meter GMO Genetically modified organism GPS Global positioning system GREET Greenhouse Gasses, Regulated Emissions, and Energy Use in Transportation GTAP Global Trade Analysis Project GTI Gas Technology Institute H Hydrogen 2 HDO Hydrodeoxygenation HTL Hydrothermal liquefaction IABR Integrated algal biorefinery IAF Integrated Assessment Framework IBR Integrated biorefinery IBSAL Integrated Biomass Supply Analysis and Logistics IEA International Energy Agency IES Institute of Environmental Stewardship vi 2013 PEER REVIEW REPORT ACRONYM GUIDE IH2 Integrated hydropyrolysis plus hydroconversion technology INL Idaho National Laboratory IP Intellectual property IPCC Intergovernmental Panel on Climate Change ISO International Organization for Standardization JBEI Joint BioEnergy Institute KDF Knowledge Discovery Framework kg Kilogram L or l Liter LBNL Lawrence Berkeley National Laboratory LCA Life-cycle assessment LEA Lipid-extracted algae LUC Land-use change MBI Michigan Biotechnology Institute MESP Minimum ethanol selling price Mg Magnesium mgpy Million gallons per year MoS Molybdenum disulfide 2 MSW Municipal solid waste MWh/hectare/ Megawatt hours per hectare per year yr MYPP Multi-Year Program Plan MySAB Myriant succinic acid biorefinery NAABB National Alliance for Advanced Biofuels and Bioproducts NABC National Advanced Biofuels Consortium NaSICON Sodium Super Ionic Conductors NC A&T North Carolina Agricultural & Technical State University NDA Non-disclosure agreement NGO Nongovernmental organization NIR Near infrared N O Nitrous oxide 2 NREL National Renewable Energy Laboratory OEM Original equipment manufacturer OPEX Operational expenditure ORNL Oak Ridge National Laboratory PBR Photobioreactor PDU Process demonstration unit PHB Polyhydroxbutyrate PI Principal investigator 2013 PEER REVIEW REPORT vii BIOENERGY TECHNOLOGIES OFFICE PNNL Pacific Northwest National Laboratory POLYSYS Policy Analysis System model R&D Research and development RD&D Research, development, and demonstration RDD&D Research, development, demonstration, and deployment REAP Resilient Energy Agricultural Practices REII Renewable Energy Institute International RFP Regional Feedstock Partnership RFS or RFS2 Renewable Fuel Standard RINS or RIN Renewable Identification Number R&TD Research and technology development RTI Research Technology Institute RTP Rapid thermal processing SABC Sustainable Algal Biofuels Consortium SEO State energy office SLT Self-loading trailer SOT State of technology SPB Self-propelled baler SRWC Short-rotation woody crops SWAT Soil and Water Assessment Tool SzIBR Solazyme integrated biorefinery TAG Triacylglycerol TAN Total acid number TCR Targeted conversion research TEA Techno-economic analyses or assessment TEES Texas Engineering Experiment Station TRL Technology readiness level UCSD University of California, San Diego UNCP University of North Carolina at Pembroke USDA U.S. Department of Agriculture USDA-ARS U.S. Department of Agriculture’s Agricultural Research Service VBI Vermont BioFuels Initiative VSJF Vermont Sustainable Jobs Fund VTT Technical Research Centre of Finland WSU Washington State University wt% Weight percent WTE Waste to energy XI Xylose Isomerase viii 2013 PEER REVIEW REPORT