Market drivers and incentives for production of Avello petroleum and fossil replacement products include:
- Oil prices: Rising energy costs reinforce the feasibility of cost-effective petroleum replacement products in transportation, boilers, petrochemicals and other non-fuel sectors.
- Asphalt shortage: Refineries utilize coking units to maximize hydrocarbon value from crude oil at the expense of petroleum asphalt cement.
- Federal and State Policy: Major drivers for biofuels and petroleum replacement feedstocks.
- Renewable Fuels Standard (RFS2): RFS2 requires the use of 36 billion gallons of biofuels in transportation by 2022.
- Renewable Portfolio Standards (RPS): Many states require the production and use of a specified amount of renewable power which is marginalizing coal. Coal-based power generators are searching for ways to reduce CO2 emissions from existing coal plants.
- Executive Orders (EO 13514): Strengthen and support demand for renewable energy and products through federal agencies.
- Low Sulfur: State and marine organizations phasing in low sulfur fuels for heating oil and marine fuel.
- Low Carbon: Federal and State agencies putting pressure on coal power generation.
- Energy Security: Converting domestic resources reduces dependence on foreign sourced petroleum.
- Infrastructure investment: US transportation infrastructure is aging and in need of replacement or repair. The American Society of Civil Engineers estimates that a $1.6 trillion investment is needed to repair highway infrastructure over the next 5 years. Asphalt is a major input for highway maintenance and reconstruction.
- Boiler fuels: Rising oil prices are creating an urgent need for low cost alternatives to heating oil and residual fuel oil in the boiler market.
- Petrochemicals: Petrochemicals is the fastest growing segment of the hydrocarbon market and typically exceeds economic growth in most major economies. High oil prices and strong demand growth create opportunities for cost effective feedstocks and components.
- Product and feedstock diversification: High oil prices increase the market risk for conventional petroleum feedstocks and products. Bio-components dilute market risk and facilitate new market and business opportunities.
- GM corn: With predicted 300 bu/acre corn yields removing stover will create a waste disposal problem for farmers and new product opportunity. Soils cannot absorb the full production of stover from the expected higher corn yields.
- Rural development: Low capital cost, distributed biomass conversion facilities create rural jobs and spur economic development while providing a value-added revenue stream for a farmer’s biomass.
Avello®FRAC is a feedstock flexible, low-cost, fast pyrolysis based process which converts non-food biomass sources into petroleum replacement products.