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Biofuel will require lots of green

Advocates say the president's plan to ween the United States off foreign oil is possible, if the money is put behind the effort.

By DAVID ADAMS
Published February 2, 2006

MIAMI - When President Bush vowed Tuesday in his State of the Union address to dramatically reduce American dependence on Middle East oil, he got plenty of applause.

"America is addicted to oil, which is often imported from unstable parts of the world," the president said.

Outside Capitol Hill the applause was more muted among alternative energy advocates, who praised the president for raising awareness while questioning his willingness to commit federal dollars.

Analysts concede the White House has been listening more attentively lately to proponents of homegrown biofuels like ethanol as rising gasoline prices have hastened the quest for "energy independence."

But the president's plan - what he called his Advanced Energy Initiative - to increase funding for clean-energy research by 22 percent, isn't sufficient to get the job done, say experts. While Bush touched on a number of energy alternatives - including solar power, hybrid and hydrogen cars, and biofuels - they also complain he made no mention of conservation or the need to control greenhouse gas emissions. The president's goal - replacing 75 percent of our oil imports from the Middle East by 2025 - is actually quite modest. These days the United States gets more oil and petroleum products from Venezuela, Mexico and Canada than from the Middle East.

"It only represents 20 percent of our fuel needs," said Stephen Reich, director of the Center for Urban Transportation Research at the University of South Florida. "But it's a start. Something is percolating."

The alternative fuel industry welcomed the president's mention of new, "cutting-edge methods of producing ethanol," not just from corn, but from agricultural waste such as wood chips and switch grass. The president said his goal was to make this kind of ethanol - known in the industry as cellulosic ethanol - commercially competitive within six years.

"This concept of cellulosic ethanol is becoming more and more real," said Bradley Krohn, president of Tampa-based U.S. Envirofuels, which is starting construction this summer on the first of two ethanol plants in the Tampa Bay area.

While cellulosic ethanol involves a technological leap in order to break down the plant matter, several major companies in the United States and Europe are working on pilot schemes in conjunction with the Department of Energy.

But Krohn and others say the president's goal of commercial viability in six years may be impossible without major federal investment. They point to the 2005 Energy Policy Act which set a 250-million gallon requirement for cellulosic ethanol starting in 2013. Experts say it would require two or three large new plants operating at full capacity to achieve that goal. But Bush's 22 percent funding increase would raise spending on cellulosic ethanol research by only $59-million to $150-million.

"The government has to go a step beyond," said Krohn, whose company plans to start producing corn-based ethanol by 2007, before moving into cellulosic ethanol using local plant waste. "The government has to fund these cellulosic bio-refineries. (But) $50-million isn't going to get us there. It needs to be $500-million."

He and others note that biofuel use could have a positive economic impact for Florida, which is a large agricultural state and imports all its fuel. Scientists at the University of Florida have led research into bacterial conversion of plant waste to ethanol.

Last month, Florida Gov. Jeb Bush issued a state energy plan that highlighted encouragement of the use of alternative fuel vehicles by local government fleets. The St. Petersburg Police Department is considering converting its fleet of 350 police cars to Ford's new "ethanol-ready" Crown Victoria.

Analysts say they are waiting to see the Department of Energy's proposed 2007 budget. "That's where we will see how big a push the White House really has in mind," said Keith Collins, chief economist at the U.S. Department of Agriculture.

But even if funding falls short of what proponents say is needed, alternative energy advocates believe momentum is building. "I think there's a buzz going on now," said Reid Detchon, director of the Energy Future Coalition, which advocates use of alternative fuels. "Even if the president does not take the lead, nonetheless I think Congress may pick up and run with it."

David Adams can be reached at dadams@sptimes.com or 305 361-6393.

[Last modified February 2, 2006, 02:15:36]