Water And Renewable Fuels Ross Harding Albany Water Summit Xiv – Tuesday 17 June 2008

Water and Renewable Fuels Ross Harding Albany Water Summit XIV – Tuesday 17th June 2008 Copyright © 2007 Herty Advanced Materials Development Center

Outline

Renewable Flues – an overview Renewable Fuel Drivers Growth of Biomass Energy and potential Water Consumption Impacts Issues and Opportunities

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Renewable Fuels Overview

Renewable Fuels 101 A (Ross) definition – fuels made from natural sources which can regenerate in less than a life time. For example:

• Solar, Wind, Wave, Hydro, Biomass Biomass (another Ross) definition– any organic material that once was green….trees, grasses, sugar cane, corn. Biomass Uses as fuel

• Combustion for heat and electricity production • Gasification for syn gas production • Burn the gas as a fossil fuel replacement • Convert the gas into liquid transportation fuels

• Fermentation • Break the biomass down into sugar and ferment the sugar into liquid fuels

No Single Solution

There is plenty of renewable energy sources. Our challenge is to convert to so that it can be in the right place, in the right form at the right time and at the right price. Oil has been a ubiquitous solution to our energy and manufacturing needs Renewable Energy will come from many sources Each geographic location, based on its natural resources, has a “primary” potential renewable energy source and a number of secondary sources.

Solar

http://nationalatlas.gov/articles/people/a_energy.html#two

Wind

http://nationalatlas.gov/articles/people/a_energy.html#two

Geothermal

http://nationalatlas.gov/articles/people/a_energy.html#two

Corn Ethanol

http://www.card.iastate.edu/research/bio/tools/ethanol.aspx

Total Potential Biomass

http://nationalatlas.gov/articles/people/a_energy.html#two

Forest Biomass

Georgia has a strong position in forest based biomass Georgia not only has large areas of forest land but over 24 million acres (2/3 of total Georgia land area) are privately owned, forested and accessible for logging 7-10 million acres are cultivated as plantations The largest regional impact will be from Biomass based cellulosic ethanol, electricity, heat and power production

Drivers Economic Environmental National Security & Quality of Life

Forget Global Warming – lets talk about $money$

The key driver for renewable fuels is the wholesale cost of fossil fuels. In Brazil Ethanol sells for US$2.20 per gallon and Gasoline sells for $4.40 per gallon – its easy to be Green Everything is possible at half the price of gasoline

Some Useful Comparisons and Trigger Points

• Biomass • At $75/barrel oil $10/Million BTU Natural Gas and $0.06kwh economics of Forest based Biomass at $35 per dry ton as a feed stock start to make sense. • It takes VAST amounts of biomass and VAST acreage to replace even small quantities of fossil fuels consumed • Good plantations can produce 10 Green Tons/Acer/Year • Ethanol yields of 50 gallons per green ton are possible • Electricity can be produced at 10,000 tons biomass per MW

Get Specific – What is the impact on the US? A growing imbalance

Energy use and quality of life are inexorably linked Cheap Oil made the US competitive but inefficient – we need to get efficient to compete in an energy starved world. As 3rd world countries advance – energy consumption will boom Per Capita 1.7kW/Person

The message is - The US runs out first!

We need short term efficiency AND

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The Federal Government understands the impact - The “Energy Independence and Security Act 2007” – targets 16 Billion Gallons of Ethanol from Cellulose by 2022

Georgia can produce 1.6 Billion Gallons from waste and surplus forest materials alone. We need to target 10% minimum as “our” share.

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The FARM BILL 2008 further supports the rapid development of renewable fuels Energy:

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• PROMOTES BIOMASS CROP PRODUCTION, HARVESTING, PROCESSING: The bill creates and fully funds a program to encourage farmers to establish and grow biomass crops in areas around biomass facilities such as biorefineries. It also provides matching payments to producers for harvest, transport and storage of biomass delivered to such a facility.

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• PROVIDES BIOMASS LOAN GUARANTEES: The bill provides $320 million in mandatory funding for loan guarantees for commercial scale biorefineries for advanced biofuels. The maximum guaranteed loan amount is $250 million and 80 percent of total project costs, with up to 90 percent of that guaranteed.

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• SUPPORTS RURAL RENEWABLE ENERGY AND ENERGY EFFICIENCY: The energy title provides $250 million in mandatory funding to provide grants and loan guarantees for renewable energy and energy efficiency systems for farmers, ranchers and rural small businesses. This program leverages on average ten times the federal funding it receives. The mandatory funding in the bill will more than double the amount previously spent on these projects.

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• ASSISTS CONVERSTION TO BIOMASS ENERGY: The bill provides $35 million in mandatory funding for grants to support repowering of existing biorefineries with biomass energy systems.

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• ENCOURAGES PRODUCTION OF ADVANCED BIOFUELS: Included in the energy title is $300 million in mandatory funding for payments to support the production of advanced biofuels, including biodiesel and cellulosic biofuels.

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• EXPANDS BIOMASS RESEARCH AND DEVELOPMENT: The Biomass Research and Development program is the premier biomass energy research program; it is administered jointly with the Department of Energy. The bill continues this program and provides $118 million in mandatory funding, which more than doubles current funding.

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• CONTINUES BIODIESEL FUEL EDUCATION INITIATIVE: Competitive grants to educate the public about effective biodiesel use and the benefits of biodiesel are continued with funding of $1 million per year.

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• STRENGTHENS THE FEDERAL PROCUREMENT AND LABELING PROGRAM FOR BIOBASED PRODUCTS: The energy title amends the current biobased products federal purchase preference and labeling programs to include intermediate ingredients and feedstocks and provide for automatic designation for items composed of high levels of these feedstocks. Also sets a deadline for implementation of the biobased product labeling program and increases funding for this program to $2 million per year.

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Decreases production tax credit on corn ethanol from $0.51 to $0.45 and increases provides $1.01 for cellulosic ethanol

When Will it happen in Georgia It is happening already

• Davis Oil • Fermenting millions of gallons of waste soda and juice into 6 Million Gallons of Ethanol In Perry and selling it as E85 in their gas stations

• FRAM Renewable Fuels • Converting saw dust into 300,000 tons/year wood pellets for co firing to replace coal

• Range Fuels per • Broken ground on Phase 1 of 100 Million gallons year (3000/ton/day pine) Gasification to ethanol plant in Soperton

• Yellow Pine • 50MW wood fired power plant Fort Gaines

• Weyerhaeuser • 1000 ton/day waste fuel boilers Port Wentworth

The Impact on Water Consumption of Biomass Based Fuels

Disclaimer – each and every process is different and unique, each track of land has different production rates, different harvest needs…..I hate when people approximate, generalize and then draw conclusion around renewable fuels……that being said let me approximate, generalize and draw conclusions……..

Targets for Georgia by 2020 • GEFA estimates in the “Meeting Future Electricity Demand” briefing paper to the Governors Energy Policy Council that approximately 1000 MW of electricity/heat/power will be required from renewable biomass • Meeting a target of 20% of gasoline demand will require 1.6 Billion Gallons of cellulosic ethanol

A new regional model – think in circles Availability of Sustainable Biomass and Transport Costs are driving the solution to a smaller regional model inside a 25-50 mile collection and distribution circle •

Locally Grown – Locally Converted – Locally Consumed

Transportation of Biomass • One of the largest costs of biomass is transportation •

Current costs $0.14 per ton per mile min 50 miles

• 50% of trees are water – but in a form that is costly to deal with and most often a negative cost Consumption of Biomass • •

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10,000 tons per MW 50 gallons of ethanol per green ton

A 50 Million gallon ethanol plant or 100 MW power facility will consume 1 Million green tons of biomass annually Availability of Biomass • At forest production rates of 7 tons/acre/year and a 16 year rotation you need 150,000 acres year to sustain production of 1 Million tons per year • Assumes no irrigation • A 25 mile radius circle contains approx 1.3 Million acres

Total and net water consumption estimates vary on technology:

• Electricity production from combustion and steam – same as for coal based generation • 0.5 gallons per kWh end consumption • 13 Million Gallons per MW per year • Gasification will use a fraction of this amount

• Cellulosic Ethanol • 2 gallons per gallons produced by thermal path • 6 gallons per gallons produced by fermentation path

• FYI • Oil Refining to produce gasoline uses 2.5 gallons of water per gallon of gasoline • Corn ethanol 3-4 gallons water per gallon ethanol produced

Annual Consumption of Resources For Each 25 - 50 mile circle

• 50 Million Gallons Cellulosic Ethanol Plant • 1 Million green tons of biomass per year • 100 - 300 Million gallons of water per year

• 100 MW electricity from steam • 1 Million green tons of biomass per year • 1300 Million gallons of water per year • NOTE: Gasification and combustion of syn gas will use a faction of this water consumption

Bio based fuels could change the face of rural US

Illustration only: Georgia at 10% US production 35 cellulose ethanol plants producing 50 Million gallons with $100 Million capital investment each at 25 mile radius 1.6 Billion Gallons 5 Million acres 50 Million Tons Biomass Replace 20% of Georgia’s gasoline needs by 2022

Georgia can accelerate the speed, scale and value of a new set of bio fuels industries by investments designed to accelerate the implementation of decisions to build new plants and operate them at peak production Georgia Economic Value Added by Accellerated Commercilization 4500

Millions $ Economic Impact

4000

20% Renewable

3500 3000

Economic Impact With Biofuel Commercialization Center and package of marketing, communication and incentives

2500

10% Renewable

2000 1500

Economic Impact Without Biofuel Commercialization Center and package of marketing, communication and incentives

1000 500 0 2008

Economic Impact Value Added by Investment in Georgia Biofuels Commercialization Center and associated marketing, distribution and incentive programs

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2013 Year

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Herty and Renewable Fuels

Feedstock Optimization – cost effective, abundant and reliable fuel. Each “energy conversion process” requires different and unique feedstock for optimum cost effective energy production Supply Chain Optimization Process Integration Commercialization and Scale Up - Herty is an industry trusted independent third party commercialization center. Herty provides a hub location to develop at pilot scale, the processes and equipment required to develop this new and growing industry.

Partners and Customers

Associations • GA Forestry Assoc. • P2E • GA Conservancy • Peanut Growers Assoc.

Universities and Agencies • Georgia Institute of Technology • University of Georgia • GEFA and Dept Eco Dev

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