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Obama’s big three on biofuels

US president Barack Obama has established three steps to boost the production of biofuels.

Firstly, the Environmental Protection Agency (EPA) has finalised a rule to implement the long-term renewable fuels standard of 36 billion gallons by 2022 established by Congress.

Second, the U.S. Department of Agriculture has also proposed a rule on the Biomass Crop Assistance Program (BCAP) that would provide financing to increase the conversion of biomass to bioenergy.

And thirdly Obama announced a Presidential Memorandum establishing an Interagency Task Force on Carbon Capture and Storage to develop a comprehensive and coordinated federal strategy to speed the development and deployment of clean coal technologies.

The US economy will continue to rely on the availability and affordability of domestic coal for decades to meet its energy needs, and these advances are necessary to reduce pollution in the meantime. The president calls for five to ten commercial demonstration projects to be up and running by 2016.

The Biofuels Interagency Working Group also released its first report ‘Growing America’s Fuel’. The report lays out a strategy to advance the development and commercialisation of a sustainable biofuels industry to meet or exceed the nation’s biofuels targets.

‘Now, I happen to believe that we should pass a comprehensive energy and climate bill. It will make clean energy the profitable kind of energy, and the decision by other nations to do this is already giving their businesses a leg up on developing clean energy jobs and technologies. But even if you disagree on the threat posed by climate change, investing in clean energy jobs and businesses is still the right thing to do for our economy. Reducing our dependence on foreign oil is still the right thing to do for our security. We can’t afford to spin our wheels while the rest of the world speeds ahead,’ Obama says.

The EPA published guidance directing refiners to ensure that the petrol pool contains 8.25% ethanol.

However, it would seem second generation ethanol has hit the brakes.

The new requirement for cellulosic biofuel production in 2010 is reduced to 6.5 million ethanol, equivalent gallons in the Renewable Fuel Standard 2 (RFS2), down significantly from the 100 million gallons established in RFS1, included in the Energy Policy Act of 2005.

While the required total volume of renewable fuels produced this year remains the same at 12.95 billion gallons, changes within the requirements for different types of fuels are drastic.

The struggling biodiesel industry has seen its biomass-based diesel programme jump to 1.15 billion gallons, a combination of standards for 2009 and 2010, to be applied in 2010.The advanced biofuel requirement remains the same at 950 million gallons.




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