DuPont Pleads Case

OMAHA (DTN) -- As the final countdown begins on the expected release of the Renewable Fuel Standard volumes in November, one big player in the development of second-generation biofuels is fighting back against efforts to repeal the corn-based portion of the law.

DuPont is slated to celebrate the grand opening of a commercial cellulosic ethanol plant this month near Nevada, Iowa, at a time when the U.S. Environmental Protection Agency is expected to cut the mandated blending of biofuels volumes by some 1.6 billion gallons, including corn and cellulosic ethanol.

Senator Pat Toomey, R-Penn., has been one of the most aggressive opponents of the RFS in Congress. Just last week he offered an amendment to legislation to re-open U.S. crude oil to export that would repeal the corn-based portion of the RFS. The amendment was defeated.

DuPont executives and scientists sent Toomey a letter last week, expressing their disappointment about his efforts.

"As Pennsylvania residents, registered voters and DuPont biofuels employees that support science-driven innovation to solve some of the world's most serious challenges, we absolutely oppose your efforts to repeal the corn ethanol mandate in the RFS and any other legislative initiatives to repeal or modify the RFS," the letter said. "Proposals to modify the RFS will undercut the existing U.S. biofuels industry, preventing all new opportunities for investments in cellulosic ethanol and advanced biofuels.

"These new technologies are not dependent on additional sources of food-based feedstocks and will significantly reduce the environmental footprint of the U.S. transportation sector."

As EPA has continued to cut back on RFS volumes, cellulosic ethanol companies have announced they are halting plans for additional U.S. facilities, choosing to consider future cellulosic ethanol plants in other countries such as China and Brazil. By one industry estimate, RFS doubt has caused some $19 billion in lost investment in advanced technologies.

DuPont and BP also have entered into a joint venture called Butamax, which is developing so-called drop-in fuel biobutanol, which is made with bio-feedstocks and virtually is identical to gasoline. That means it can be distributed via existing gasoline infrastructure including pipelines.

DuPont said in the letter the corn-based ethanol industry and a developing advanced biofuels industry is contributing to growth in rural America.

"The existing biofuels industry has had a significant impact on an improved agriculture economy and ethanol is less expensive than gasoline, reducing gas prices," the lettter said. "In Pennsylvania alone, the renewable fuels sector generates $3.6 billion of total economic output, supports 17,714 direct and indirect jobs and generates $917 million in wages annually, contributing $121.3 million in Federal taxes and $84.5 million in state taxes each year. Nationwide, the biofuels industry supports $184.5 billion of economic output, 852,056 direct and indirect jobs, $46.2 billion in wages and $14.5 billion in taxes."

The DuPont employees wrote that repealing the corn-based ethanol portion of the RFS would have "significantly negative economic impacts for Pennsylvania and the U.S. and prevent additional growth in biofuels."

DuPont said its cellulosic ethanol reduces greenhouse gas emissions by more than 90% compared to gasoline.

"To realize these benefits, rather than gift these investments to China and Brazil, businesses and investors need stable and predictable policies," the letter said.

"We implore you to reconsider your stance on the RFS and work with us to create the right incentives for the biofuels industry to move beyond current technologies. New investments will create jobs, reduce impacts to the environment, and reduce our reliance on foreign oil that will inevitably impact our economy and national security."

The letter is signed by 40 DuPont employees including James C. Collins, executive vice president of DuPont, William F. Feehery, president of DuPont Industrial Biosciences, and Jan Koninckx, global director of biorefineries at DuPont Industrial Biosciences.

Read the letter here, http://tinyurl.com/…

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on Twitter @ToddNeeleyDTN

(CZ/GH)

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