The Victory Plant: bringing on advanced biofuels better, faster, cheaper

Readers, stakeholders provide key feedback on Victory Plant project for commercializing advanced biofuels at scale

Last week, we wrote about the launch of a collaborative industry dialogue, and a Biofuels Council of Advisors on Science and Technology, that will set companion goals for advanced manufacturing in biofuels in April 2012, at the Advanced Biofuels Leadership Conference, to dramatically reduce the investment, timelines, and risk for building advanced bioenergy projects – both in the US and around the globe.

And, fundamentally, to simplify the dialogue about advanced biofuels, chemicals and biomaterials, and thereby secure broader, more sustained community support.

The Digest outlined what we call The Victory Plant – “a low-cost, low-risk, high-speed manufacturing that would reduce in half, by 2022, the time necessary to plan, finance, build, and commission an advanced bioenergy plant, from 36 months to 18 months.”

Why “Victory”? Representing victory over carbon, and a victory of the innovative spirit.  In the Second World War, 20 million victory gardens were planted, according to the USDA. By 1945, half of the US fruit and vegetables harvest (as much as 10 million tons) came from home and community Victory Gardens.

We have heard from a number of bio-neers who have volunteered time, knowledge and perspective on the Victory Plant. You can join in too – register your interest here.

Feedback from Stakeholders

Neutrality. One thing is clear – stakeholders have said, emphatically that they support the concept as long as it is technology, feedstock and fuel-neutral, and focused on cost reduction as much as time reduction. Cost savings, you say, are the real key to meeting Renewable Fuel Standard goals.

Non-prescriptive – inclusive of multiple projects. Another thing is clear – stakeholders want specific targets, and support the certification of any and all designs as Victory Plants, so long as they meet the overall cost goals, and meet the low-carbon targets established under the US Energy Security & Independence Act.

Global scope. Stakeholders felt that, while the low carbon targets are specific to the US, Victory Plants can and should be built and certified globally.

Economics plus science. Stakeholders want a Biofuels Council of Advisors on Science and Technology to certify plants that meet Victory Plant goals, to supervise and adjust Victory Plant standards as necessary, and to establish the standards on feedstock contracting that would ensure that Victory Plants can sustainably produce fuels and biomaterials over the long-term. They also wanted a Council to add “economics” to its title, to ensure that it reflected not only sound science, but sound business sense.

Broad industry support. Stakeholders wanted to ensure that an industry effort of this magnitude received broad industry support – there was a resistance to “sideshows” or efforts that had issued white papers with worthy goals that were broadly ignored. The effort must be practical, stakeholders said, and to become so, it needed broad support.

Specific benefits. Stakeholders wanted the benefits of bringing a Victory Plant to a specific community to be well understood, specific, and accurate. Stakeholders felt that it was essential that benefits be clear – making projects better understood buy communities and stakeholders outside the industry was a benefit in the designation as a Victory Plant. Benefits? Direct and indirect job and economic impact, the benefit in carbon mitigation, and direct contribution to energy independence.

Specific standards and targets. Stakeholders proposed different standards or targets for the Victory Plant. To be considered a Victory Plant, stakeholders generally believed in the following thresholds:

1. Operating Cost. A Victory Plant would produce fuels for $1.50 per US gallon (ethanol-equivalent BTUs, at the refinery gate) – this would include operating cost plus a contracted (or otherwise  suitably established) feedstock supply cost.

2. Capital Cost. A Victory Plant would be constructed for no more than $4 per installed gallon of capacity.

3. Timeline. A Victory Plant could be constructed in less than 24 months from initial agreements to commissioning.

4. Carbon. A Victory Plant would produce a fuels that met the low-carbon thresholds as defined in the Renewable Fuel Standard, and perform according to an accepted ASTM specification.

5. Flexibility. To help ensure viability,  Victory Plant would be able to produce at least two fuels or biomaterials, and utilize at least two feedstocks.

6. No net contribution to food feedstock consumption. A Victory Plant would utilize available residues, or divert feedstock from existing production, or utilize non-food feedstocks.

7. No subsidies – incentives welcome. Governments that wished to accelerate the development of these plants could offer capital cost-sharing or other up-front incentives, or assist in the up-front capital cost associated with providing sustainable, affordable, reliable, available (SARA) supplies of feedstock.

Establishing and revising standards

Are these the correct standards? A Biofuels & Biomaterials Council of Advisors on Science, Technology and Economics would ensure that standards were adjusted to represent achievable goals for industry.

What action can you take? You can register your interest here – for joining the Biofuels Council of Advisors on Science, Technology and Economics or otherwise supporting, monitoring, or learning more about its activities.

Scientists, engineers, financiers, consultants, company execs are among those specifically invited to join the Council, which would organize itself to oversee standards.

Companies will also be welcome to register as Council associates, supporting the standards. Our goal is to run this as long as possible on a volunteer, cost-free basis.

The Digest will add speakers, content, and collaborative discussion on Advanced Manufacturing Leadership and Innovation at the Advanced Biofuels Markets conference in San Francisco, November 8-10, 2011.