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Its production is currently more expensive than corn ethanol, even with a $1.01/gal subsidy (set to expire at the end of 2012); however, it has lower lifecycle GHG emissions.hh The EPA reduced early year production mandates (2010–2012) from the RFS for cellulose-derived biofuels due to a lack of production; many technological and economic hurdles still exist for these biofuels.107 4.2.2 Alternative Blended Fuels A variety of fuels are being developed that require petroleum blending and/or changes to infrastructure to be widely utilized; these fuels are most economically produced using hydrocarbon feedstocks but can also be sourced renewably. Biodiesel, produced by converting food oils and fats, can be blended at up to 20% with petroleum diesel in newer engines without any required engine modifications;108 the United States currently produces approximately 2 billion gallons per year; renewable biodiesel technologies are being actively pursued.109 Methanol can be blended in manners similar to ethanol; if produced by conversion of hydrocarbons like natural gas or coal, it has very low production costs.110 Butanol is another alternative that blends well with gasoline and ethanol; it is produced most economically from natural gas but can also be sourced renewably.111 Dimethyl ether (DME) is a potential alternative to diesel fuel; it can be produced from cellulosic and hydrocarbon feedstocks and has significant emissions advantages over gasoline, even when sourced from hydrocarbon feedstocks.112 In general, more research is needed to understand the impacts and implications of these fuels.113 4.2.3 Drop-In Biofuels Drop-in biofuels are designed to be consumed alone or at high levels of gasoline blending without any changes to engines. Many potential pathways are being explored, including conversion of renewable synthesis gas, sugars, and algal oils, though none have been economically demonstrated in the United States. Federally funded research efforts are focused on drop-in biofuels intended to replace aviation and trucking fuels because electrification is not feasible for those applications.114 4.2.4 Plug-In Electric and Plug-In Hybrid-Electric Vehicles Plug-in electric vehicles (PEV) and plug-in hybrid electric vehicles (PHEV) are becoming technically and economically viable options for light duty transport. In recent years, vehicle electrification efforts have enjoyed significant federal support. The Obama administration has called for 1 million electric vehicles to be on the road by 2015 and has provided extensive tax credits and stimulus grants to help accomplish that goal. The most significant impediments to115 market penetration are the cost, limited range, and long recharge times of battery technology. Advanced battery technology, manufacturing techniques, and supply chains are still in their infancy. As a result, upfront costs for these vehicles are quite high, with the cost being largely attributable to the cost of the battery packs. While battery cost data is confidential, Ford Motor Company’s CEO Alan Mulally was recently quoted to have said battery packs for the PEV Ford Focus Electric cost “around $12,000 to $15,000,” or 30%–38% of the retail price of the $39,200 vehicle.116 Fuel costs, on the other hand, are significantly lower for electric vehicles than gasoline vehicles. hh The RFS mandates that qualifying cellulosic ethanol must reduce life cycle GHG emissions by at least 60% relative to gasoline. 29PDF Image | Opportunities Synergy Natural Gas and Renewable Energy
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