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Before proceeding to a brief discussion of GRI and its research 

 efforts in marine biomass, I want to commend the subcommittee 

 for holding a series of hearings calling attention to the potential 

 that ocean energy resources have to contribute toward improving 

 our domestic energy supplies. It is important in the push to develop 

 synthetic fuels that all supply options be given consideration in 

 determining the future U.S. energy product mix. Certainly, fuels 

 from renewable biomass resources in general, and clean substitute 

 natural gas from marine biomass feedstock in particular, can help 

 to lessen U.S. dependence on foreign oil, as can the clean use of 

 fossil fuels and conservation. 



In the case of GRI, our R. & D. program aggressively seeks to 

 develop both new gas supplies and more efficient gas using equip- 

 ment. The GRI charter requires this balanced approach to serve 

 both gas customers, who ultimately pay for the research and the 

 gas transmission and distribution companies, who are our mem- 

 bers. GRI is unique in that its R. & D. plan is formulated with the 

 advice and consent of four advisory groups representing consumer, 

 labor, environmental, engineering, scientific, and industry inter- 

 ests. Its activities are funded through a mechanism that subjects 

 the annual R. & D. program to critical review and subsequent 

 approval by the Federal Energy Regulatory Commission and State 

 utility regulatory commissions. This mechanism provides for a uni- 

 form funding unit to be attached on a one-time basis to all volumes 

 sold. The criteria established to judge the GRI program allows only 

 R. & D. which will clearly benefit gas ratepayers. In 1979, this 

 research effort was approved at a $40 million level. 



I would like to now turn to a review of the marine biomass 

 project. It has been my pleasure to manage this program since its 

 inception in 1974. This program was started by the gas industry 5 

 years ago in recognition of the fact that a renewable source of 

 methane was essential to the long-range future of adequate gas 

 supplies from domestic resources. 



Why biomass? Biomass, as a source of carbon for the production 

 of fuels, and specifically substitute natural gas (SNG), has several 

 attractive features. The primary energy source — the Sun — is inex- 

 haustible and the source of carbon is, therefore, renewable since we 

 are growing the fuel resource. The Gas Research Institute, as well 

 as the DOE and other agencies, has studied alternate concepts for 

 the production of biomass which could be suitable for conversion to 

 substitute natural gas. These studies have all shown a practical 

 upper limit of 7 to 11 quads per year of energy may be available by 

 utilizing all of the potentially available land. Because land-based 

 forms of biomass would be competing with food, feed, and fiber 

 crops for valuable acreage and water supplies, an ocean source of 

 feedstock was the preferable approach for long-term consideration. 



It was from this perspective that the marine biomass project was 

 initiated. The project has as its primary objective to determine the 

 technical and economic feasibility of a system for the production of 

 methane — or substitute natural gas — from giant California kelp, or 

 Macrocystis pyrifera, grown on manmade structures in the open 

 ocean. Giant California kelp was selected as the marine biomass to 

 be used as the result of a study conducted by the California Insti- 

 tute of Technology in 1974. The characteristics which led to its 



