Mega Money Headed toward BioFuel R&D

The potential opportunity for bio-based fuels to supplement or supplant some of the nations fossil fuel addiction has enticed two entities with deep pockets – one public, one private – to separately offer $750 million to support research in the growing field. Working independently, both entities are planning to concentrate their investments in only 1-2 research institutions, creating instant anchors for growing localized clusters for the new industry.

On Aug. 2, the U.S. Department of Energy launched a competition for proposals to select two new bioenergy research centers as part of the Office of Science Genomics program. The winning centers will receive up to $125 million over a period of five years $25 million in the first year for start-up costs and up to $25 million per year for operations during the subsequent four years.

While a major emphasis will be on developing cost-effective means to produce ethanol from inedible plant fiber such as cellulose, to replace gasoline, DOE also is interested in supporting well directed research on other biofuels from biomass, including biodiesel, biofuels for aviation, and biologically-based hydrogen and other fuels from sunlight.

Universities, national laboratories, nonprofit agencies, private firms and consortia comprised of partnerships of two or more such institutions will be eligible for funding to establish and operate a bioenergy research center.

Meanwhile, one of the worlds largest oil companies, BP, announced in June it is working to identify a single U.S. or U.K. research university to locate an Energy Biosciences Institute. The selected institution will receive $500 million from BP over 10 years to support new biofuel component development and new technologies to enhance conversion of organic matter into biofuel molecules.

The institute also will conduct research to develop plant species that can produce a higher yield of energy molecules and be grown on land not suitable for food production. The need for more efficient and environmentally benign plant sources for biofuels is of increasing importance, with studies showing corn-derived ethanol – the most politically popular source of the alternative fuel – is only 35 percent more efficient than gasoline and reduces greenhouse gas emissions by only 15 percent.

BP is already in discussions with several institutions, with the aim of launching its program by the end of 2007. DOE will announce its center selections before the end of the 2007 fiscal year.

More information on the Energy solicitation is available at: http://www.doe.gov/news/3872.htm. The BP announcement is available at: http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7018719

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