The Need for Government Program in Alternative Feedstock

Each year, the U.S. manufacturing sector consumes over 8 quadrillion Btu/year in the form of feedstocks, which is equivalent to the energy in 50% of U.S. annual motor gasoline consumption. Industrial feedstocks are raw materials used to make industrial products and thousands of consumer goods. Chemical feedstocks account for over 70% of the production cost for most chemical plants. Many industrial products are made from oil and natural gas feedstocks, which are by their nature direct energy that could otherwise be used as fuel to heat homes, run vehicles, and power manufacturing processes. The rising costs and volatility of oil and gas has compelled the U.S. Chemical industry, in particular, to recognize the need for alternative feedstock. Government must step in to reduce the risk and provide in R&D for alternative feedstock production or it may never happen. Additional government sponsored R&D is needed to enable the sustainable and cost-effective substitution of conventional feedstocks for alternative feedstocks in the production of goods, such as chemical products and others. Alternative feedstocks will provide flexibility and reduce industry's dependence on conventional oil and gas feedstock, enhance security, competitiveness, environmental performance, green jobs, energy, and carbon reductions. This presentation will discuss what the Industrial Technologies Program in the Office of Energy Efficiency and Renewable Energy is doing to establish a program in Alternative Industrial Feedstock.