World of Algae Newsletter Volume 1, Issue 2 - February 10 2010

Obama Reorganizes Biofuels Policy

WASHINGTON, Feb. 5 - A decision by the Obama Andministration from Washington on the clean-energy future for biofuels supports industry findings.

The new set of rules and directives regarding US biofuels policy, are unlike any previous policy. The new approach, will include the release of the revised Renewable Fuel Standard from EPA, and a new set of “Lead Agency” assignments to support first-generation biofuels while driving the development and commercialization of advanced fuels, with a focus on fuels for aviation and ground transportation.

The announcement followed 14-page report from the Biofuels Policy Working Group — chaired by Agriculture Secretary Vilsack, Energy Secretary Chu, and EPA Administrator Jackson — that found that US biofuels targets for 2022 will not be met – as the 2010 cellulosic ethanol targets will not be met – unless the US government undertakes to re-organize its development effort.

The announcement is in step with a move by U.S. President Barack Obama and the EPA to reach a comprehensive climate deal. The EPA in its Renewable Fuels Standard found that biofuels could have a significant impact on efforts to reduce greenhouse gas emissions when compared with gasoline or diesel fuel.

Mary Rosenthal, executive director of the Algal Biomass Organization, praised the leadership in Washington for looking to alternative and unconventional resources.

"But most important to our industry is the recognition by EPA that algae-based fuels reduce overall CO2 emissions on a lifecycle basis," she said. "This supports what we've been saying all along."

The EPA said algae-based biodiesel and algae-based renewable diesel could reduce emissions by more than 50 percent compared with conventional fuels.

Exxon Mobil said algae-based biofuels could generate as much as 2,000 gallons of fuel per acre per year, eclipsing palm tree, corn and sugar cane alternatives.