A Novel Framework to Evaluate the Costs and Potential of Bioenergy in Decarbonization of the U.S. Economy

Abstract

The long-term strategy of the United States targets reaching economy-wide net-zero emissions by 2050 and a carbon-neutral electricity grid by 2035 (U.S. Department of State and U.S. Executive Office of the President, 2021). Meeting these targets would require considerable changes to the energy system. Some key characteristics of illustrative net-zero energy systems include increased penetration of renewable energy and carbon sources, use of CO2 capture and storage (CCS) in hard-to-abate sectors, and a greater role for energy carriers such as electricity and hydrogen (Davis et al, 2018). Another common feature of such energy systems is the need for carbon dioxide removal (CDR) approaches (Horowitz et al, 2022). Across all these characteristics of net-zero energy systems, bioenergy and biomass feedstock is anticipated to play an important role. Biomass feedstock serves as a renewable carbon source. This can enable conversion of such feedstock into fuels and energy carriers for hard-to-abate sectors such as aviation. Indeed, the U.S. Government has a target to meet all jet fuel demand by 2050 from sustainable aviation fuel (SAF), where biofuel pathways are likely to have an important role (EERE, 2020). Bioenergy is also highly versatile with the possibility to convert feedstock into electricity, hydrogen, liquid fuels, heat or high-value products, based on biomass type, demand and technology availability (Clarke et al, 2022). Combination of bioenergy with CCS can also nominally deliver CDR (Fuhrman et al, 2023). As such, the share of bioenergy is expected to grow by at least five time across scenarios studied for the long-term strategy of the U.S. between 2020 and 2050 (Horowitz et al, 2022). Notwithstanding the role of bioenergy in the energy systems, its deployment, costs and scalability are influenced by a number of factors. Some of these factors pertain to policy interventions such as imposition of a binding decarbonization target either at an economy-wide level or the sectoral level. Resource availability and type of biomass feedstock also varies considerably across regions. From a technological perspective, the readiness of bioenergy conversion pathways is subject to high variability. This influences the costs of deployment. Moreover, the sourcing of feedstock, grid carbon intensity, and co-product handling approaches all affect the life cycle efficacy of bioenergy. The latter, in turn, is particularly important in determining the extent to which bioenergy with CCS or BECCS can effectively deliver CDR (Fajardy and Mac Dowell, 2017).