By 2017, advanced biofuel industry in North America is estimated to produce 1.7 billion gallons of fuel, doubling the current capacity, says a new report from Environmental Entrepreneurs (E2).
Advanced biofuel are liquid fuels made from non-petroleum sources that achieve a 50-percent reduction in carbon intensity compared to a petroleum-fuel baseline.
In 2014, the industry has reached a production capacity of more than 800 million gallons, up from the previous year and almost double the capacity in 2011, E2 report said. In 2014, the industry produced 787 million gallons.
Advanced biofuels are on track to meet emission reduction targets in both California and Oregon, according to E3.
By 2017, as many as 180 companies are expected to contribute to this market.
“The advanced biofuel industry is meeting the growing demand for cleaner-burning transportation fuels,” said report co-author Mary Solecki. “Americans who want more local jobs, cleaner air, and more homegrown energy should demand elected officials enact policies, right now, that will promote the growth of advanced biofuel.”
“If state and federal leaders want to reduce our dependence on foreign oil – and support American farmers, businesses, and entrepreneurs – they should ensure this clean, cutting-edge industry can expand,” Solecki said.
The report comes at a time when various initiatives are taking shape in the U.S., especially in Pacific Northwest and in California, to spur the adoption of biofuels, E2 said.
In Oregon, the state’s Environmental Quality Commission meets in Portland Jan. 7-8. DEQ staff will present proposed rules for Phase 2 of the Clean Fuels Program.
The legislature is also considering a move to decide whether or not to remove the sunset date for the Clean Fuels Program, which is expected to create as many as 29,000 jobs and save Oregon consumers and businesses up to $1.6 billion in fuel costs.
In Washington State, Gov. Jay Inslee has asked the state’s Department of Ecology to recommend a proposed clean-fuel standard that, through executive order, would increase the use of advanced biofuel, creating local jobs and keeping hard-earned money in-state by reducing the billions of dollars Washington spends annually on out-of-state oil.
In California, the Low Carbon Fuel Standard (LCFS) has been in place since 2009 and has lowered carbon emissions since 2011, but last year during a re-adoption period the LCFS was frozen at 2013 levels, forcing several promising facilities to delay or idle production.
E2 partnered in the release of this report showing how the LCFS is both achievable and growing the state’s economy. E2 also co-authored this report on the biodiesel value chain in California.
In Washington, D.C., the Environmental Protection Agency (EPA) in 2015 is expected to finalize federal renewable fuel requirements, after delaying its announcement on the Renewable Fuel Standard (RFS) through last year. The regulatory uncertainty caused by the delay reined in 2014’s production capacity and investment levels, according to the report.
The new E2 report found that nationwide, the private sector has since 2007 invested $4 billion in active advanced biofuel producers and companies along the advanced biofuel value chain, with more than $200 million of that coming in the past year. An additional$848 million in grants have been distributed to advanced biofuel producers since 2007.
Rajani Baburajan