Project Management Center: Managing the Biofuels Portfolio

Transcription

1 Project Management Center: Managing the Biofuels Portfolio April 25, 2007 James Spaeth U.S. Dept. of Energy Golden, Colorado Agenda Need for Project Management Center Key Functions Organizational Approach RDD&D Management Implementation of EPAct 2005 Example Projects

2 The President s State of the Union Address Strengthening America s Energy Security Tonight, I ask Congress to join me in pursuing a great goal. Let us build on the work we've done and reduce gasoline usage in the United States by 20 percent in the next 10 years. Old Way Communications & Outreach Deputy Assistant Secretary for Technology Development Assistant Secretary Principal Deputy Board of Directors Deputy Assistant Secretary for Business Administration Wind & Biomass DEER Solar Hydropower FreedomCAR & Vehicles Geothermal Hydrogen, Fuel Cells Industry FEMP Weatherization & Intergovernmental Buildings Headquarters Field HQ Procurement AL NV ID 8 FTEs CH 5 FTEs OAK OR 1 FTE RL NETL 12* FTEs GO 58 FTEs 6 Regional Offices 117 FTEs Program Implementers SNL LANL INEEL ANL Private BNL LBNL LLNL ORNL PNNL Industry NREL WFO States Estimated Laboratory Personnel: 2,400 Staff *NETL non-eere employees working primarily for EERE Note: 3,300 actions per year

3 What is the PMC? A dedicated field implementation capability with the sole purpose of providing common comprehensive management services (project, financial, legal, procurement) for the EERE Programs New Way Dedicated EERE Project Management Center One way of doing business Common project management practices employed across EERE Number of DOE implementation organizations reduced Result: Integrated project management; well defined roles/responsibilities Better responsiveness; more personnel dedicated one-way practice Improved timeliness, accountability, and quality Appropriate Federal oversight role Reduced costs to DOE EERE a better partner with stakeholders and customers

4 Roles & Responsibilities Program Management Project Management Planning Plans and develops the overall Initiates and oversees the program project Budget Prepares, justifies, and defends Develops and submits the Formulation the program budget project budget to the Program Manager Program Executes the program budget Implements the Implementation and implements the program projects Program Analysis Analyzes and evaluates the overall Analyzes and evaluates detailed and Evaluation performance of the program performance of the project Source: EERE SMS Overview Melding Program Manager and Project Manager Functions P R O J E C T M A N A G E R Solicitation Planning Procurement Requests Merit Review Chair, Tech Evaluations 0% 100% Strategic Planning Manage cost/schedule/technical progress Multi-yr Plan, AOP Oversight, Reporting, Reviews, Modifications Program Manager s % of Effort Project Manager s % of Effort Budget Request and Defense Facilitating, Collaborating New Ideas Technology Promotion Opportunity Analysis Project Selection (SO) Project Continuation or Renewal 100% 0% P R O G R A M M A N A G E R

5 Office of the Biomass Program Operational Organization to meet Functional Needs Biomass Team Systems Integrator Feedstock Interface Core R&D Sugar Platform Core R&D Thermochemical Platform Core R&D Products Core R&D Integrated Biorefineries Program Management Headquarters Biomass Team Staff Project Management Center Biomass Team Staff Performers of R&D and Program Plans INEEL ORNL NREL NREL PNNL NREL PNNL ANL NREL PNNL All Labs Private Sector Industry & Academia PMC for Office of the Biomass Program Functional Roles Office of the Biomass Program PMC Biomass Lead Feedstock Interface Core R&D Sugar Platform Core R&D Thermochemical Platform Core R&D Products Core R&D Integrated Biorefineries Program Management Solicitation planning Merit reviews and chairing MR Committees Technical evaluation and procurement processing Manage costs, schedule, technical performance Report reviews & award modifications Interface and interaction with the National Bioenergy Center and other DOE facilities and laboratories as needed to perform operations and planning Quarterly reports Input to strategic planning Annual Operating Plan Assist with Outreach & Education Partnership Development Input to spend plans

6 Project Management Manage project progress against SOW/milestones Conduct site visits and project reviews Maintain on-going relationship/communications with Principal Investigator and team members Review invoices/reimbursements Review and analyze progress reports Maintain project financial database Work with Systems Integrator to extract results for program analyses Keep HQ Program Manager apprised of progress and concerns Close out project Ensures projects are conducted within the requirements and regulations Project Timeline Pre-Selection Negotiation Project Management Announcement 1. PMC prepares 2. HQ approves Gather Applications (IIPS) Preliminary Review (PMC) Selection Official Merit Review Evaluation Plan Programmatic Review (HQ) Source Selection Briefing Program Policy Factors Selection Gather Missing or Required Info. Technical Evaluation (Review & Recommendations for Scope and Budget) Required Forms & Certifications 1. Company Info. 2. No Discriminating 3. No Lobbying 4. NEPA - Environmental Impact (FONSI) 5. U.S. Benefits (EPAct) Contracting Officer Award Agreement (Terms & Conditions) Payment (Invoicing or Auto Withdrawal) Periodic Reporting Amendments 1. Revisions 2. Incremental Funding 3. No-Cost Extensions 4. Deobligations 5. Administrative Final Technical Report (Public) Closeout 1. Forms 2. Deliverables 3. Square Up 4. Box & Archive or De -Bar

7 Collaborative Research, Development, and Demonstration Fundamental and Applied R&D Feedstocks: integration of feedstocks with conversion processes Conversion Technologies: biochemical and thermochemical Integrated Biorefineries: systems integration, demonstrations, infrastructure development Integrated Biorefineries Systems Integration: feedstocks, conversion, biopower, infrastructure Demonstration: pilot scale, commercial scale DOE efforts are paving the way for a strong, domestic bioenergy industry with commercial success possible in the next six years The Energy Policy Act of 2005 Accelerates Market Penetration Of Biofuels Section 932: Commercial Integrated Biorefinery 6 Projects selected: DOE value up to $385 million Total project value over $1.2 billion $72 million in FY 2007 budget request Section 941: Revisions to Biomass R&D Act of 2000 Vision document released November 2006; updated Roadmap due May 2007 Section 942: Cellulosic Ethanol Reverse Auction Request For Information and Options papers completed Sections 1510, 1511, and Title XVII: Loan Guarantees DOE issued guidelines under Title XVII in August 2006 Energy Policy Act of 2005 goals are integrated into core technology platform priorities

8 Stage Gate Project Management Independent Commercial Developments Platform R&D Products Solicitation CRADA S & Projects Biorefinery Solicitation 2008 Solicitation Concept Development Concept Proof Technical Viability Commercial Viability Delays in attainment of performance criteria Commercial Sustainability Core Research And Development 100% / 0% Technology Development (Bench Scale) Proof of Concept (Pilot Scale) Commercially Viable Demo (Demonstration Scale Plant) 80% / 20% 50% / 50% 20% / 80% Permitting Engineering Construction Operation Loan Guarantee and/or Risk Mitigation Deployment Barriers Development Costs Private Cost-Share: OBP Cost-Share: Project Timeline: Development Stages: Unexpected Cost: Risk Mitigation: Secure Demo Financing Secure First Plant Financing First Commercial Plant Procurement Mechanical completion Commissioning Attainment of performance criteria Delays in attainment of performance criteria Basic R&D 100% / 0% Technology Development Proof of Concept Commercially Viable Demo Permitting & Engineering Construction Operation 80% / 20% 50% / 50% 20% / 80% Loan Guarantee Program/Risk Mitigation Pool

9 EPAct 932 Anticipated Project Timelines Abengoa Iogen Broin BlueFire Alico Range Fuels Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 DOE Conducted Permitting Review DOE Conducted Stage Gate on Pilot Plant FY 08 FY 09 FY 10 Q 2 Q 3 Q 4 Q 1 Q 2 FY 11 FY 12 Design, Engineeering, and Permitting Construction Start-Up, Commissioning, and Operation Additional Slides

10 Cellulosic Biorefinery Solicitation EPAct Section 932(d) Design, build, construct and operate a commercial-scale integrated cellulosic biorefinery 40% Federal cost share of project 6 projects selected $72 million planned for FY 07 $385 million in total Demonstration Scale Solicitation Release is TBD Biofuels Loan Guarantees under EPAct Loan Guarantees for the construction of cellulosic biorefineries 1510, 1511, Title 17 Common Characteristic of Loan Guarantees Project must be able to produce revenues to meet debt service Must be innovative & commercially viable Guarantees debt no greater than 80% of project costs Applicant must pay DOE guarantee fee to cover administrative costs DOE must provide a default fund from its appropriations for each project

11 Collaborative R&D is producing results in both biofuels and bioproducts Achievements Substantial increases in yield of ethanol per ton of feedstock over last five years Development of enzymes with best-inclass performance in conversion of sugars from corn grain and stover to ethanol Development of high-value adhesives, plastics, foams, and coatings from oil crops and grain sugars Cell phone casings made from bio-based polymers developed through DOEindustry cost-shared R&D Using biomass for both biofuels and high-value bioproducts will enable more cost-effective operation of integrated biorefineries. DuPont GO13146: Integrated Corn-Based Bio-Refinery (ICBR) Project Description Objectives, Drivers & Impacts 9/30/ /31/2007 Total DOE Budget: $18,185,238 Total Cost-Share: $18,997,832 Obligations to Date: $15,834,674 Plans for FY07 Obligations: $2,300,000 Partners: NREL, Diversa Corp., Deere & Company, and Michigan State University The ICBR process will bring new technology to the conversion of corn and stover into fermentable sugars for parallel production of added value chemicals such as 1,3 propanediol and fuel ethanol. Demonstrate 95% and 90% yields on glucose and xylose, respectively, and 80 g/l titer in the presence of 8 g/l acetate. Results Discovery of a mutant that allows for cofermentation of glucose and xylose rather than sequential fermentation Major systems test run at NREL prepilot/pilot scale spring 2007 Loudin, TN - PDO Facility

12 PMC Biomass Database Retains current and historic project information including: Contact information, project identifiers (CPS, CID), WBS Financial information including Data from STARS financial system (non-lab only) Data from Quarterly Financial plans (all projects) Annual OBP spend plans Allows GO the ability to answer HQ data calls quickly and accurately. Produces monthly uncosted reports and monthly STARS accruals. 20 in 10 Summary Increase supply of renewable and alternative fuels Set Alternative Fuels Standards (AFS) at 35 billion gallons per year by X the current Renewable Fuels Standard for % of projected annual gasoline use in 2017 Increase vehicle efficiency Reform and modernize CAFÉ 5% of projected annual gasoline use in 2017