Policy

The US Administration is taking steps to boost the development of biofuels and clean coal.

President Barack Obama yesterday announced three measures to advance biofuels, the first of which will mandate a long-term renewable fuels standard of 36 billion gallons by 2022. The move will more than triple current levels of around 11 billion gallons.

The increase in biofuels will be supported by the Department of Agriculture’s Biomass Crop Assistance Program (BCAP), which will provide financing for projects converting biomass to biofuel.

Meanwhile, a report from the President’s Biofuels Interagency Working Group outlines an overall strategy to meet the new target and create a sustainable commercial biofuel industry.

A new strategy is also on the cards for carbon capture and storage. The President announced the creation of an Interagency Task Force on Carbon Capture and Storage to develop a comprehensive ten-year plan for the deployment of clean coal, including 5-10 commercial demonstration projects by 2016.

In his announcement, Obama reconfirmed the US’ continued reliance on coal for many decades to come – a statement that has been welcomed by the American Coalition for Clean Coal Electricity (ACCCE).

“It is clear that we do not need to choose between affordable, reliable energy and a clean environment. With new, advanced technology, we can have both,” said a statement from the organisation.

Yet the possibility of one of the major incentives for driving the deployment of an expensive technology like CCS, namely cap-and-trade legislation, is receding.

In what could be a telling sign, the White House has omitted potential revenue from a cap-and-trade scheme from its 2011 budget proposal. Commentators have suggested that removing the cap-and-trade part of Obama’s climate change bill could aid its path through Congress.

The budget request for 2011 does, however, include a possible $760.4 million for the Government’s fossil fuels programmes. While the request includes $143 million for the Department of Energy’s carbon sequestration programme, it does not ask for any new funding the FutureGen initiative, which was originally launched in 2003 with the intention of investing in CCS for a coal power plant.

For further information:
www.whitehouse.gov/
www.whitehouse.gov/the-press-office/presidential-memorandum-a-comprehensive-federal-strategy-carbon-capture-and-storage
www.cleancoalusa.org
www.whitehouse.gov/omb/

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Obama 2011 budget request backs energy efficiency (2-Feb)
Food or fuel? The biofuel debate rumbles on… (26-Jan)
US invests $80 million in advanced biofuels, but is policy flawed? (14-Jan)
US announces $3 billion investment in clean coal (7-Dec 2009)
US Department of Energy releases first phase of $1.4 billion CCS funds (5-Oct 2009)
Chu pledges US$2.4bn CCS package (19-May 2009)
DOE earmarks $1.3 billion for carbon capture and storage (1-Jul 2008)