The document identifies seven variables that can make E85 profitable and weighs their influence using a model NREL created based on a discounted cash flow analysis. These variables are:

• E85 equipment configuration
• E85 throughput
• Equipment costs
• Return on investment
• Maintenance and operation costs
• Base taxable income
• Annual throughput of mid-grade and premium

Knowing the relative influence of these variables helps retailers assess whether they are good candidates for an E85 project. The model also helps them estimate the minimum margin that they would need to make on each gallon of E85 in order to make their investment profitable.

ConocoPhillips announced today that it has signed a $5 million, multi-year sponsored research agreement with the Colorado Center for Biorefining and Biofuels (C2B2), a research center of the Colorado Renewable Energy Collaboratory, to develop new ways to convert biomass into low-carbon transportation fuels.

The Collaboratory, a joint venture of the University of Colorado at Boulder, Colorado State University, the Colorado School of Mines, and the National Renewable Energy Laboratory (NREL) formed C2B2 in March 2007, to conduct research at all four institutions. The new collaboration will build on a variety of active research projects being conducted by Colorado scientists and students to develop new sources of transportation biofuels. The first project will involve converting algae into renewable fuel.

Sponsored by the DOE, these initiatives are focused on the development of pretreatment technologies for processing a wide range of biomass types into a single, uniform feedstock of similar consistency and character. Experts note that reliable feeding systems must be engineered to accommodate different forms of biomass, a significant barrier that continues to hinder the global deployment of biomass-based energy production. Presently, some abundant biomass materials are not feasible energy feedstocks by virtue of the difficulty or cost of handling and preparing them for use.

"The over-riding interest is to expand the versatility of new and existing biomass processing facilities by providing them with the ability to accept multiple feedstocks," says GTI Project Manager, Larry Felix. "Our goal is an economical process to normalize the format of the feedstock and thereby directly encourage the use of energy-rich wastes and other sources of renewable energy that might otherwise be untapped."

• Green wood chips were successfully co-fired in blends with coal between 8% and 15%
  wood by weight. Of the input fuel energy, 2.8% and 5.5% was from wood, and represented about 2.0 MW to 3.8 MW biomass power.
  
• Sulfur emissions were reduced, and particulates were no higher with co-firing. At normal operating condition, carbon monoxide emissions were unchanged. The measured impact on NOx emissions was small.
  
• With 10% co-firing, boiler efficiency was about the same as coal alone, while there was a slight reduction in efficiency with 15% wood.
  
• Higher moisture losses due to high wood moisture were offset or nearly offset by reduced dry gas losses up the stack.
  
• High moisture of the wood coal mixtures resulted in low mill temperatures and high mill bowl under pressures. This caused a 5% load derate when co-firing 15%.
  
• The coal-wood mixtures had much lower fuel energy to volume ratio than the baseline coal. The issues appear to have been related to the installation of new automatic controls. Stability issues were corrected in subsequent tests by tuning the fuel-steam pressure automatic controls.

• Placing a hard cap on ethanol made from corn and on biodiesel made from refined vegetable oil.
• Target tax credits and fuel standards depending on the impact each biofuel feedstock has on food prices.
• Fund further research programs for biofuel feedstocks.