Bush administration updates US bioenergy 'vision'

Washington (Platts)--28Nov2006

The Bush administration on Tuesday updated a renewable energy strategy it
hopes will lead the US from an oil-based economy to one based on ethanol,
green power and bio-based plastics and chemicals made without petroleum.

The advisory panel that wrote the "vision" document made it available
after being ordered by the White House not to publicize it because of a
planned December announcement, presumably by President Bush. The White House
is developing an initiative to further support biofuels and reduce oil use.

The paper spells out in the broadest possible terms why it makes sense to
reduce "untenable" oil-import levels with biofuels. It said increased adoption
of alternative fuels would reduce the US trade deficit, which is expected to
top $300 billion in 2006, largely because of oil imports; improve the economy
and environment; and increase energy security.

The paper, which Congress ordered in the 2005 Energy Policy Act, said the
US is at a "critical point in determining its energy future." It leaves
unchanged 2010, 2020 and 2030 goals for bioenergy, biopower and bioproducts in
a prior version of the report, but adds 2015 targets.

The 'vision' said in 2015 the US should consume 13 billion gallons of
renewable fuels, compared with the 6 billion gallons of ethanol and biodiesel
used today; meet 3.2% of total electricity demand from biomass, up from 0.5%
today; and use 26 billion pounds of bioproducts, compared with almost 18
billion pounds at present.

The report, developed by a federal advisory committee with heavy industry
representation, makes several recommendations. It calls on the government to
develop long-term policies and financial incentives to continue the rapid
growth of bioenergy, and fund commercial-scale demonstration projects that
prove the "techno-economic viability" of bio-based technologies.

The document also urges the administration to lead a national education
and outreach campaign to make the public aware of the benefits of biofuels and
the "real costs" of fossil fuels.

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