U.S. Energy Department Invests $46 Million in Biofuel Technologies

The U.S. Energy Department on Aug. 31 announced $46 million in funding for 22 biofuel projects to help reduce carbon emissions in the transportation and power sector. The grant aims to lower the cost of fuels and products made from algal feedstocks while increasing the positive greenhouse gas impacts that could be achieved by deploying algae-based technologies. These innovative projects will convert biomass and waste streams into fuels and capture carbon through algal systems for alternative clean energy. Researchers and developers selected for the project will help advance the bio-economy’s growth by:

• Turning waste streams into valuable bioenergy resources through the development of improved organisms and inorganic catalysts; and
• Enhancing the ability of algal systems to capture carbon dioxide and utilize it to produce biofuels and bioproducts.

The department underscored the potential of bioenergy to decarbonize high-emitting sectors and address barriers on the path to a clean energy future. The projects are funded by the department’s Bioenergy Technologies Office and the Office of Fossil Energy and Carbon Management.

Earlier on June 1, 2022, the department announced $59 million to fast-track the production of biofuels and bioproducts to decrease emissions in hard-to-decarbonize sectors. The initiative will help decrease costs and technical risks associated with the biofuels sector, making it feasible to deploy commercial-scale integrated biorefineries. The funding will help the agency achieve its Sustainable Aviation Fuel Grand Challenge goal of producing 3 billion gallons of sustainable aviation fuel annually by 2030, and 35 billion gallons by 2050, sufficient to meet 100 percent of U.S. aviation fuel demand.

The Biden administration considers biofuels as an important pathway to meet climate goals for a cleaner future by expanding the volume of low-carbon biofuels available across the entire transportation sector. The recently passed Inflation Reduction Act is expected to make advancements in the biofuels sector by providing grants and tax credits. This initiative is expected to help advance the Biden administration’s goals to achieve an equitable, clean energy future, and put the country on a path to achieve net-zero emissions by 2050.