Last week, Secretary Chu announcen nearly $300 million in Clean Cities grants to support clean fuels, vehicles, and infrastructure development. The projects are designed to create jobs, limit pollution, and reduce America’s dependence on foreign oil.

The excitement surrounding the biofuels market opportunity has been tempered somewhat by its many challenges, which include ethical questions of food versus fuel, limited availability of inexpensive feedstocks, petroleum price volatility, overcapacity of production and the global recession. However, a two recent reports from both Pike Research and Bio Economic Research Associates forecast that, despite these significant challenges, the combined biodiesel and ethanol markets will reach $247 billion in sales by 2020, up from just $76 billion in 2010. Total job creation, accounting for economic multiplier effects, could reach 123,000 in 2012, 383,000 in 2016, and 807,000 by 2022.

This the third article in the series The Two-Headed Dragon ~ Energy/Water/Food Scarcity and Climate Change. Top Ten Policies that Feed it, and Two New Technologies that Could Enable us to Slay It and Save the Planet focuses on the issue of big agribusiness; how it is is dominated by a very few very large corporations; the big problems this dominance is creating for farmers and the environment and some things we can do to restore our agricultural system to one more in tune with nature and that serves the interests of most citizens.

Algenol Biofuels, a Florida biofuels startup and DOW Chemical Company announced a pilot-scale algae-based integrated biorefinery that will convert CO2 into ethanol. The patented technology developed by Algenol Biofuels uses CO2, salt water, sunlight and non-arable land to produce ethanol, which can be used as a fuel or as a feedstock, replacing natural gas in the production of plastic. The algae is grown in long plastic covered troughs, called bioreactors that are filled with salt water that has been saturated with carbon dioxide gas, which provides the carbon the algae needs for photosynthesis.

Scientists are examining biomass – plant matter that’s grown and used to generate energy – as a potential power source. Two biomass technologies involve ethanol and electricity. Biomass converted into ethanol, a corn-based fuel, can power internal combustion vehicles. Biomass converted into electricity can fuel a vehicle powered by an electric battery. A study by University of California, Merced, Assistant Professor Elliott Campbell and two other researchers in the online edition of this week’s Science journal suggests that biomass used to generate electricity could be the more efficient solution.

US Department of Energy Secretary Chu announced plans to provide nearly $800 million from the American Recovery and Reinvestment Act targeted towards advancing biofuels research and development and for commercial-scale biorefinery demonstration projects. The $786.5 million in Recovery Act funding a mix of new funding opportunities and additional funding for existing projects, will be allocated over four main areas. Integrated pilot- and demonstration-scale biorefineries projects are to receive the bulk of the funding with the remainder going to commercial-scale biorefinery projects, fundamental research in key areas to advance cutting-edge conversion technologies, including generating more desirable catalysts, fuel-producing microbes, and feedstocks and to ethanol research.

In this first post of the BIOFUEL UPDATE — a newly introduced feature of The Green Economy Post — I write about how so called first generation Biofuels such as Corn Ethanol that are derived from food crops or grown on land that otherwise would be used for food crops may be worse for global warming than burning gasoline is! This reconfirms in my mind the pressing need for the biofuel sector to move towards non-food biofuel crops that also are grown on marginal land; crops such as algae, switchgrass, jatropha etc. In other news the Danforth Science Center in Saint Ls. MO gets $15 million in federal funds. Fedex announces plans to get 30% of its fuel from second generation non-food crop biofuels by 2030. OriginOil has developed a simpler and more efficient way to extract oil from algae.

Researchers from North Carolina State University have shown that Duckweed, a tiny aquatic plant much loved by Ducks can thrive in the effluent waste water produced by large feedlots, such as hog farming operations and potentially in urban sewage water as well. This hardworking little plant not only cleans the waste water of the excess nutrients, but in the process it produces large quantities of valuable starchy biomass. Biomas that can be harvested and used to produce ethonol in the same types of facilities that are currently being used to make ethanol from corn starch.