Transcript Slide 1

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
HERTY – accelerates a good idea to a great commercial success
Founded in 1938 to honor Charles
Herty, father of the Southern pulp and
paper industry
Charter broadened in 2005 to
cover all “Materials Manufacturing
Industries”
Georgia State Agency.
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Confidentiality assured.
Independent
Non-profit organization
Commercialization Center
Staff:
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40 people in Lab and Pilot Plant
HERTY - reduces the risk of product innovation
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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
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We need long term self sufficiency
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Years
Proven Oil Reserve life
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.
Copyright © 2007 Herty Advanced Materials Development Center
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
• Broken ground on Phase 1 of 100 Million gallons
per 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
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Locally Grown – Locally Converted – Locally Consumed
Transportation of Biomass
• One of the largest costs of biomass is transportation
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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
20%
Renewable
Millions $ Economic Impact
4000
Economic Impact Value Added by Investment in
Georgia Biofuels Commercialization Center and
associated marketing, distribution and incentive
programs
3500
3000
10%
Renewable
2500
Economic Impact With Biofuel Commercialization
Center and package of marketing, communication
and incentives
2000
1500
Economic Impact Without Biofuel
Commercialization Center and package of
marketing, communication and incentives
1000
500
0
2008
2009
2010
2011
2012
2013
Year
Copyright © 2007 Herty Advanced Materials Development Center
2014
2015
2016
2017
2018
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.
Landowners
• Langdale
• Tarbutton
• Gillis
Partners and Customers
• Hopkins
• Plum Creek
• Barrs
Associations
• GA Forestry Assoc.
• P2E
• GA Conservancy
• Peanut Growers Assoc.
Companies
• Range Fuels
• JCB
• Yellow Pine
• Yancey/Pioneer
• Price
• Xethanol
• FRAM
Renewable
Universities and Agencies
• Georgia Institute of Technology
• University of Georgia
• GEFA and Dept Eco Dev
Copyright © 2007 Herty Advanced Materials Development Center
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