**Biomass and Biorefinery Systems R&D**

**Annual Performance Results and Targets**

+-----------+-----------+-----------+-----------+-----------+-----------+
| FY 2003   | FY 2004   | FY 2005   | FY 2006   | FY 2007   | FY 2008   |
| Results   | Results   | Results   | Results   | Results   | Results   |
+===========+===========+===========+===========+===========+===========+
| GPRA Unit |           |           |           |           |           |
| Program   |           |           |           |           |           |
| Goal      |           |           |           |           |           |
| 1.1.06.00 |           |           |           |           |           |
| (Biomass  |           |           |           |           |           |
| and       |           |           |           |           |           |
| Bi        |           |           |           |           |           |
| orefinery |           |           |           |           |           |
| Systems   |           |           |           |           |           |
| R&D)      |           |           |           |           |           |
|           |           |           |           |           |           |
| Feedstock |           |           |           |           |           |
| Infra     |           |           |           |           |           |
| structure |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           |           |           |           | Complete  | Conduct   |
|           |           |           |           | a core    | r         |
|           |           |           |           | R&D       | eplicated |
|           |           |           |           | en        | field     |
|           |           |           |           | gineering | trials    |
|           |           |           |           | design    | across    |
|           |           |           |           | and       | regions   |
|           |           |           |           | techno    | to        |
|           |           |           |           | -economic | determine |
|           |           |           |           | a         | the       |
|           |           |           |           | ssessment | impact of |
|           |           |           |           | of an     | residue   |
|           |           |           |           | i         | removal   |
|           |           |           |           | ntegrated | on grain  |
|           |           |           |           | wet       | yield (in |
|           |           |           |           | storage - | s         |
|           |           |           |           | biomass   | ubsequent |
|           |           |           |           | field     | years);   |
|           |           |           |           | pre-p     | field     |
|           |           |           |           | rocessing | trials    |
|           |           |           |           | assembly  | (         |
|           |           |           |           | system    | including |
|           |           |           |           | with a    | genetic   |
|           |           |           |           | pre       | eva       |
|           |           |           |           | treatment | luations) |
|           |           |           |           | process   | to        |
|           |           |           |           | that      | develop   |
|           |           |           |           | could     | energy    |
|           |           |           |           | po        | crops     |
|           |           |           |           | tentially | within a  |
|           |           |           |           | be scaled | geo       |
|           |           |           |           | up to     | graphical |
|           |           |           |           | produce   | region;   |
|           |           |           |           | f         | resource  |
|           |           |           |           | eedstocks | as        |
|           |           |           |           | to        | sessments |
|           |           |           |           | achieve a | to        |
|           |           |           |           | reduction | determine |
|           |           |           |           | to \$35   | regional  |
|           |           |           |           | per ton   | feedstock |
|           |           |           |           | by 2012   | supply    |
|           |           |           |           | from \$53 | curves    |
|           |           |           |           | per ton   | (variable |
|           |           |           |           | as of     | costs of  |
|           |           |           |           | 2003.     | feedstock |
|           |           |           |           |           | across    |
|           |           |           |           |           | various   |
|           |           |           |           |           | sites);   |
|           |           |           |           |           | and       |
|           |           |           |           |           | economic  |
|           |           |           |           |           | studies   |
|           |           |           |           |           | that      |
|           |           |           |           |           | identify  |
|           |           |           |           |           | the best  |
|           |           |           |           |           | site      |
|           |           |           |           |           | c         |
|           |           |           |           |           | onditions |
|           |           |           |           |           | and       |
|           |           |           |           |           | general   |
|           |           |           |           |           | locations |
|           |           |           |           |           | for       |
|           |           |           |           |           | bior      |
|           |           |           |           |           | efineries |
|           |           |           |           |           | within a  |
|           |           |           |           |           | region,   |
|           |           |           |           |           | all of    |
|           |           |           |           |           | which can |
|           |           |           |           |           | dem       |
|           |           |           |           |           | onstrably |
|           |           |           |           |           | c         |
|           |           |           |           |           | ontribute |
|           |           |           |           |           | to the    |
|           |           |           |           |           | goal of   |
|           |           |           |           |           | producing |
|           |           |           |           |           | f         |
|           |           |           |           |           | eedstocks |
|           |           |           |           |           | at \$35   |
|           |           |           |           |           | per dry   |
|           |           |           |           |           | ton by    |
|           |           |           |           |           | 2012.     |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Platforms |           |           |           |           |           |
| Research  |           |           |           |           |           |
| and       |           |           |           |           |           |
| De        |           |           |           |           |           |
| velopment |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Completed |           | Completed | Number    | Complete  | Achieve a |
| the       |           | a         | range     | i         | modeled   |
| therm     |           | technical | CHAPTE    | ntegrated | cost      |
| ochemical |           | and       | RComplete | tests of  | target of |
| options   |           | economic  | l         | pre       | \$0.11    |
| analysis  |           | e         | aboratory | treatment | per pound |
| to assess |           | valuation | and       | and       | of sugars |
| various   |           | of        | economic  | enzymatic | (e        |
| process   |           | i         | a         | h         | quivalent |
| pathways  |           | ntegrated | ssessment | ydrolysis | to \$2.09 |
| to fuels  |           | biomass   | of 2      | in        | per       |
| (e.g.,    |           | to fuels  | different | co        | gallon of |
| F-T,      |           | systems   | fe        | njunction | c         |
| gasoline, |           | to        | edstocks, | with      | ellulosic |
| diesel,   |           | validate  | id        | existing  | ethanol)  |
| a         |           | the sugar | entifying | fer       | through   |
| lcohols). |           | cost of   | operating | mentation | the       |
| \[MET\]   |           | \$0.135   | c         | organisms | fo        |
|           |           | per pound | onditions | at        | rmulation |
| Developed |           | and       | that link | be        | of        |
| an        |           | syngas    | pre       | nch-scale | improved  |
| improved  |           | cost of   | treatment | on com    | enzyme    |
| enzyme    |           | \$6.13    | with      | stover    | mixtures  |
| pr        |           | per       | enzymes   | that      | and       |
| eparation |           | million   | that      | validate  | pretr     |
| for       |           | Btu.      | could be  | \$0.125   | eatments. |
| reducing  |           | \[MET\]   | scaled-up | per pound |           |
| the cost  |           |           | and have  | sugars on | Achieve a |
| of        |           |           | the       | the       | modeled   |
| producing |           |           | potential | pathway   | cost      |
| ethanol   |           |           | of        | to        | target of |
| from      |           |           | achieving | achieving | \$        |
| biomass.  |           |           | the goal  | \$0.064   | 6.88/MBtu |
| Evaluate  |           |           | of        | per pound | of        |
| its       |           |           | \$0.125   | in 2012.  | biomas    |
| impact on |           |           | per pound |           | s-derived |
| p         |           |           | sugar by  | De        | syngas or |
| roduction |           |           | 2007.     | monstrate | oils by   |
| costs     |           |           | \[ME      | c         | demo      |
| using an  |           |           | T\]Number | onversion | nstrating |
| updated   |           |           | range     | of 50     | pi        |
| computer  |           |           | CHAPTER   | percent   | lot-scale |
| model of  |           |           |           | of        | t         |
| the       |           |           |           | no        | echnology |
| p         |           |           |           | n-methane | capable   |
| roduction |           |           |           | (C2+      | of        |
| process.  |           |           |           | higher)   | eco       |
| \[MET\]   |           |           |           | hyd       | nomically |
|           |           |           |           | rocarbons | c         |
|           |           |           |           | that      | onverting |
|           |           |           |           | result in | biomass   |
|           |           |           |           | a syngas  | residues, |
|           |           |           |           | cost of   | pulping   |
|           |           |           |           | \$        | liquors,  |
|           |           |           |           | 7.15/MBtu | or waste  |
|           |           |           |           | in 2007.  | fats and  |
|           |           |           |           |           | greases.  |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Ut        |           |           |           |           |           |
| ilization |           |           |           |           |           |
| of        |           |           |           |           |           |
| Platform  |           |           |           |           |           |
| Outputs   |           |           |           |           |           |
| R&D       |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| Es        | Dem       |           |           | Complete  | Approve a |
| tablished | onstrated |           |           | a         | final     |
| testing   | clean     |           |           | pr        | en        |
| program   | syngas    |           |           | eliminary | gineering |
| at three  | p         |           |           | en        | design    |
| existing  | roduction |           |           | gineering | package   |
| gasifiers | in three  |           |           | design    | of at     |
| at        | therm     |           |           | package,  | least one |
| partners' | ochemical |           |           | market    | c         |
| sites for | c         |           |           | analysis, | ommercial |
| the       | onversion |           |           | and       | scale     |
| de        | systems.  |           |           | financial | bi        |
| velopment | \[MET\]   |           |           | p         | orefinery |
| and       |           |           |           | rojection | capable   |
| ap        | Completed |           |           | for at    | of        |
| plication | testing   |           |           | least one | p         |
| of        | of        |           |           | industr   | rocessing |
| t         | ethanol   |           |           | ial-scale | up to 700 |
| echnology | p         |           |           | project   | metric    |
| c         | roduction |           |           | for near  | tones per |
| omponents | from corn |           |           | term      | day of    |
| (e.g.,    | fiber in  |           |           | agr       | lignoc    |
| gas       | pa        |           |           | icultural | ellulosic |
| clean-up, | rtnership |           |           | pathways  | fe        |
| gas       | with      |           |           | (corn wet | edstocks. |
| engines,  | industry  |           |           | mill,     | The       |
| fuel      | in order  |           |           | corn dry  | approved  |
| cells,    | to        |           |           | mill,     | design    |
| etc.)     | achieve a |           |           | oilseed)  | package   |
| that      | 3 percent |           |           | to        | must      |
| needed to | increase  |           |           | produce a | address   |
| be        | in        |           |           | minimum   | any       |
| i         | ethanol   |           |           | of 15     | findings  |
| ntegrated | p         |           |           | million   | from an   |
| with the  | roduction |           |           | gallons   | in        |
| gas       | from each |           |           | of        | dependent |
| ification | corn      |           |           | biofuels  | en        |
| c         | ethanol   |           |           | per year  | gineering |
| omponents | plant     |           |           | (as       | review to |
| to        | that      |           |           | mandated  | validate  |
| produce   | suc       |           |           | by the    | c         |
| power,    | cessfully |           |           | Energy    | ontractor |
| fuels,    | i         |           |           | Policy    | costs and |
| and       | mplements |           |           | Act.      | scheduled |
| c         | the       |           |           |           | timeline. |
| hemicals. | t         |           |           |           |           |
| \[MET:    | echnology |           |           |           |           |
| Greater   | without   |           |           |           |           |
| than 80   | requiring |           |           |           |           |
| percent   | a         |           |           |           |           |
| but less  | dditional |           |           |           |           |
| than 100  | corn      |           |           |           |           |
| percent   | f         |           |           |           |           |
| --        | eedstock. |           |           |           |           |
| C         | \[MET\]   |           |           |           |           |
| ompletion |           |           |           |           |           |
| was       |           |           |           |           |           |
| delayed   |           |           |           |           |           |
| by 5      |           |           |           |           |           |
| months.\] |           |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
| In        | Completed | Es        | Number    |           |           |
| pa        | v         | tablished | range     |           |           |
| rtnership | alidation | the       | CHAPTE    |           |           |
| with      | of one    | technical | RIdentify |           |           |
| industry, | new       | and       | at least  |           |           |
| completed | biobased  | market    | one       |           |           |
| pi        | product   | potential | suga      |           |           |
| lot-scale | te        | of a new  | r-derived |           |           |
| demo      | chnology, | biobased  | or        |           |           |
| nstration | with      | product.  | biomass   |           |           |
| of two    | long-term | \[MET\]   | oi        |           |           |
| new       | potential |           | l-derived |           |           |
| biobased  | of        |           | bio-based |           |           |
| product   | greater   |           | chemical  |           |           |
| tec       | than 2    |           | or        |           |           |
| hnologies | billion   |           | material  |           |           |
| for       | lbs. /yr. |           | (among    |           |           |
| economic, | sales, at |           | those     |           |           |
| t         | the       |           | being     |           |           |
| echnical, | pi        |           | e         |           |           |
| and       | lot-scale |           | valuated) |           |           |
| product   | for       |           | that      |           |           |
| per       | economic, |           | possesses |           |           |
| formance. | t         |           | s         |           |           |
| \[MET\]   | echnical, |           | ufficient |           |           |
|           | and       |           | potential |           |           |
| A 2-cycle | product   |           | to enter  |           |           |
| engine    | viability |           | into the  |           |           |
| oil       | in        |           | scaled-up |           |           |
| derived   | pa        |           | deve      |           |           |
| from soy  | rtnership |           | lopmental |           |           |
| oil was   | with      |           | phase of  |           |           |
| comme     | industry. |           | R&D from  |           |           |
| rcialized | \[MET\]   |           | the       |           |           |
| for the   |           |           | previous  |           |           |
| emerging  | With      |           | be        |           |           |
| bi        | industry  |           | nch-scale |           |           |
| oproducts | partners, |           | phase.    |           |           |
| industry. | a new     |           | \[MET\]   |           |           |
| \[NOT     | biobased  |           |           |           |           |
| MET:      | product   |           |           |           |           |
| 2-cycle   | t         |           |           |           |           |
| engine    | echnology |           |           |           |           |
| oil       | advanced  |           |           |           |           |
| comme     | to        |           |           |           |           |
| rcialized | scale-up  |           |           |           |           |
| in FY     | partners' |           |           |           |           |
| 2004\]    | intention |           |           |           |           |
|           | to        |           |           |           |           |
|           | comm      |           |           |           |           |
|           | ercialize |           |           |           |           |
|           | in a new  |           |           |           |           |
|           | i         |           |           |           |           |
|           | ndustrial |           |           |           |           |
|           | bi        |           |           |           |           |
|           | orefinery |           |           |           |           |
|           | by FY     |           |           |           |           |
|           | 2008. The |           |           |           |           |
|           | bi        |           |           |           |           |
|           | orefinery |           |           |           |           |
|           | will be   |           |           |           |           |
|           | at        |           |           |           |           |
|           | pil       |           |           |           |           |
|           | ot-scale. |           |           |           |           |
|           | \[MET\]   |           |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+
|           | [Co       | [Co       | [Maintain | [Maintain | [Maintain |
|           | ntributed | ntributed | total     | total     | total     |
|           | propor    | propor    | admin     | admin     | admin     |
|           | tionately | tionately | istrative | istrative | istrative |
|           | to EERE's | to EERE's | overhead  | overhead  | costs in  |
|           | corporate | corporate | costs     | costs     | relation  |
|           | goal of   | goal of   | (defined  | (defined  | to total  |
|           | reducing  | reducing  | as        | as        | program   |
|           | corporate | corporate | program   | program   | costs of  |
|           | and       | and       | direction | direction | less than |
|           | program   | program   | and       | and       | 12        |
|           | uncosteds | adjusted  | program   | program   | percent.  |
|           | to a      | uncosted  | support   | support   | Baseline  |
|           | range of  | obligated | excluding | excluding | for       |
|           | 20-25     | balances  | earmarks) | earmarks) | admin     |
|           | percent   | to a      | in        | in        | istrative |
|           | by        | range of  | relation  | relation  | overhead  |
|           | reducing  | 20-25     | to total  | to total  | rate      |
|           | program   | percent   | program   | program   | currently |
|           | annual    | by        | costs of  | costs of  | being     |
|           | uncosteds | reducing  | less than | less than | valid     |
|           | by 10     | program   | 12        | 12        | ated.]{.u |
|           | percent   | annual    | percent.  | per       | nderline} |
|           | in 2004   | adjusted  | ]{.underl | cent.]{.u |           |
|           | relative  | uncosteds | ine} [^1] | nderline} |           |
|           | to the    | by 10     | \[MET\]   |           |           |
|           | program   | percent   |           |           |           |
|           | uncosted  | in 2005   |           |           |           |
|           | baseline  | relative  |           |           |           |
|           | (in 2003) | to the    |           |           |           |
|           | until the | Biomass & |           |           |           |
|           | target    | Biomass   |           |           |           |
|           | range is  | Refinery  |           |           |           |
|           | met.]{.u  | Systems   |           |           |           |
|           | nderline} | Program   |           |           |           |
|           | \[NOT     | FY 2004   |           |           |           |
|           | MET: EERE | end of    |           |           |           |
|           | actively  | year      |           |           |           |
|           | acc       | adjusted  |           |           |           |
|           | elerating | uncosted  |           |           |           |
|           | costing   | baseline  |           |           |           |
|           | of        | (\        |           |           |           |
|           | funds\]   | $62,235K) |           |           |           |
|           |           | until the |           |           |           |
|           |           | target    |           |           |           |
|           |           | range is  |           |           |           |
|           |           | met.]{.u  |           |           |           |
|           |           | nderline} |           |           |           |
|           |           | \[MET\]   |           |           |           |
+-----------+-----------+-----------+-----------+-----------+-----------+

[^1]: Baseline for administrative overhead rate currently being
    validated.