DOE Announces Up to $15 Million to Research Biomass-Based Supplements for Traditional Fuels

The Energy Department recently announced up to $15 million available to demonstrate biomass-based oil supplements that can be blended with petroleum, helping the United States to reduce foreign oil use, diversify the nation's energy portfolio, and create jobs for American workers. Known as "bio-oils," these precursors for fully renewable transportation fuels could be integrated into the oil refining processes that make conventional gasoline, diesel, and jet fuels without requiring modifications to existing fuel distribution networks or engines.

The Department expects to fully fund between five to ten projects in fiscal year 2012 to produce bio-oil prototypes that can be tested in oil refineries and used to develop comprehensive technical and economic analyses of how bio-oils could work. The proto-type bio-oils will be produced from a range of feedstocks that could include algae, corn and wheat stovers, dedicated energy crops or wood residues. Domestic industry, universities, and laboratories are all eligible to apply.