Question 3:
1. Should we include costs for the required Go/No Go review meetings in the budget? (See p. 40 in the FOA)
2. Pages 12-13 in the FOA describe several items that successful applicants will do. Items 5 & 6 are clearly technology demonstration tasks. However the technical economic analyses described in items 7 & 8 seem to be R&D type activities rather than purely demonstration. Because the required cost share is different for the two types of tasks, can we consider tasks related to items 7 & 8 as R&D? Assuming yes, can we exceed the suggested 10% limit of R&D activities in the project?
Answer 3:
1. Yes, the costs for the required Go/No-Go review meeting can be included in the budget.
2. Per the FOA, I.3. “A limited amount of preparatory work to support the design of the proposed project system will be permitted within the scope of the project. Typically, up to 10% of the total project budget may be proposed for the preparatory R&D, but the amount is subject to negotiation after notification of selection for negotiation of an Award. Preparatory work may include limited R&D, including expenses for equipment, salaries, and supplies.” The applicant must decide how to present the work in their proposal, including related cost share percentages, which may be subject to negotiations. The 10% guideline for R&D is not meant as an absolute upper limit.
Question 8:
The Densification Workshop Report referenced in the FOA presents liquefaction as viable feedstock densification strategy. However, the FOA generally is built around solid format feedstock supply systems concepts. That leaves of with three questions:
1) Is distributed liquefaction (i.e. depot based) considered a compliant densification technology for this FOA?
2) Is a supply system delivering a liquid intermediate to the "conversion reactor throat" as stated in the FOA consider compliant to the technical objectives? The "conversion reactor throat" specifically being an industry heat or power application, or a residential heating market application in the case of this conceptual liquid format supply system.
3) If the supply system delivers a liquid intermediate which requires significantly less "conversion" to reach the desired end state energy product, is it possible to shift the cost target split between the logistics system and the conversion system? Restating this question, if the overall target of $3/GGE is achieved and the logistics system is producing an intermediate product (i.e. stable bio-oil) which requires less conversion costs, is it compliant with the FOA objectives to have a logistics system cost greater than $80/DT?
Answer 8:
1) Yes
2) Yes, but only if the biorefinery produces a cellulosic biofuel, as defined in Appendix A. This definition comes directly from the Energy Independence and Security Act of 2007, which defines a Renewable Fuel Standard for liquid transportation fuels.
3) As stated in Section I.5, Technical Barrier Area 2, if you can convincingly demonstrate in the proposal that the overall value chain, including the feedstock supply system, can produce liquid transportation fuel at less than $3/GGE, then the $80/DT target does not apply. However, the proposal must still demonstrate an integrated feedstock supply system and document the economics around that system.