Production facilities for second‐generation biofuels in the <scp>USA</scp> and the <scp>EU</scp> – current status and future perspectives

Abstract

Abstract Second‐generation biofuel production facilities have been slower to reach large‐scale production than was anticipated a few years ago even though in Europe, the Renewable Energy Directive provides incentives; in the United States there are also financial incentives and the Energy Independence and Security Act of 2007 has targets for second‐generation biofuels. But starting in 2013 it appears that significant quantities of second‐generation biofuels will be produced. A variety of conversion processes, thermochemical and biological, as well as hybrids of the two is being utilized. There will be a variety of fuels – ethanol, drop‐in fuels (e.g. gasoline, diesel), biodiesel, steam, electricity, bio‐oil, sugars, and chemicals; and a variety of feedstocks – crop residues, wood, wood wastes, energy crops, waste oils and municipal solid waste ( MSW ). One approach to reducing the risk of moving from first‐ to second‐generation biofuel production has been to take incremental steps such as converting the cellulosic part of grains into ethanol in addition to the starch portion. Many of the second‐generation biofuel facilities are co‐located with first‐generation biofuel production facilities to share infrastructure as well as trade by‐products (e.g. excess steam). One of the challenges has been financing, but both private and government sources are being utilized. Private sources include internal corporate funds and debt offerings, and venture capital. Government sources include the US federal government, the European Union, European national governments, and state and local governments. © 2013 Society of Chemical Industry and John Wiley &amp; Sons, Ltd