Energy

The US Department of Agriculture (USDA) released a report this month detailing the US’s production and consumption capacities for biofuels. New US Renewable Fuel Standards (RFS2), which take effect July 1, mandate the use of 36 billion gallons of bio-based transportation fuels by 2022. The EPA estimates that 15 billion gallons could come from conventional biofuel sources and, as required by law, 16 billion gallons must come from advanced cellulosic biofuels. A USDA feedstock production scenario for meeting the advanced cellulosic biofuels goal foresees switchgrass (7.9 billion gallons), crop residues (5.5 billion gallons), municipal solid waste (2.6 billion gallons) and imports (2.2 billion gallons) as the largest contributors. Based on the estimate that an average biorefinery could produce 40 million gallons annually, and excluding any technology challenges, 527 biorefineries would need to be built at a cost of $168 billion to meet RFS2 goals.

Source: USDA

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