Biomass Producer Biomass Producer Opportunities for the Opportunities for the

Next Ten YearsNext Ten YearsAtAt

Bioenergy 101Bioenergy 101

November 24, 2008November 24, 2008University of Central Missouri CampusUniversity of Central Missouri Campus

Samuel J. OrrSamuel J. Orr

Far More Consulting, LLCFar More Consulting, LLC

1315 Dixon Drive1315 Dixon Drive

Jefferson City, Missouri 65101Jefferson City, Missouri 65101

573-821-3747573-821-3747

samorr@embarqmail.comsamorr@embarqmail.com

What We’ll CoverWhat We’ll Cover Bioenergy MarketsBioenergy Markets

Bioenergy SuppliesBioenergy Supplies

Processing of Feedstocks and What IfsProcessing of Feedstocks and What Ifs

Bioenergy MarketsBioenergy Markets Electricity GenerationElectricity Generation

Liquid Motor FuelsLiquid Motor Fuels

Institutional and Commercial Heat and Institutional and Commercial Heat and PowerPower

BioOil and Refined BioChemicalsBioOil and Refined BioChemicals

Electricity GenerationElectricity Generation National ProjectionsNational Projections

Missouri ProjectionsMissouri Projections

How Much Biomass Could Be Used?How Much Biomass Could Be Used?

One Way of Making FuelOne Way of Making Fuel

EIA ProjectionsEIA Projections

EIA ProjectionsEIA Projections

EIA ProjectionsEIA Projections

EIA ProjectionsEIA Projections

Missouri ProjectionsMissouri Projections

Investor Owned UtilitiesInvestor Owned Utilities– Currently, see need for Currently, see need for 310 MW310 MW by 2012, by 2012, even even

AFTER a 700 MW jump in 2010AFTER a 700 MW jump in 2010 Missouri Joint Municipal Electric Utility Missouri Joint Municipal Electric Utility

Commission – (MJMEUCCommission – (MJMEUC))

Associated ElectricAssociated Electric– Approximately 3,800 MW now Approximately 3,800 MW now – 50% Increase in Electricity Demand by 202550% Increase in Electricity Demand by 2025– So 900+ MW Additional Needs So 900+ MW Additional Needs

Biomass Dry Tonnages and Btu Content for Forest Residues and Biomass Dry Tonnages and Btu Content for Forest Residues and Forest Thinnings, Annualized for Morgan and Surrounding Forest Thinnings, Annualized for Morgan and Surrounding

Counties, MissouriCounties, Missouri

  Logging ResiduesTimber Thinning

(20 Yr. Rotation)

County Tons (dry) MBTU Tons (dry) MBTU

Benton 2,065 35,308 141,571 2,420,857

Camden 6,826 116,719 124,786 2,133,836

Cooper 1,318 22,537 29,803 509,629

Miller 4,787 81,858 92,660 1,584,482

Moniteau 713 12,195 25,875 442,458

Morgan 2,142 36,623 94,356 1,613,482

Pettis 388 6,627 27,841 476,073

Totals 18,238 311,868 536,892 9,180,816

One Way of Making FuelOne Way of Making Fuel

It takes approximately It takes approximately 83,000 Million BTU83,000 Million BTU

to fuel 1 MW of electric to fuel 1 MW of electric generation capacitygeneration capacity

Liquid Motor FuelsLiquid Motor Fuels

Ethanol – Corn and CellulosicEthanol – Corn and Cellulosic

Biodiesel – Bean, Oil and OtherBiodiesel – Bean, Oil and Other

Butanol – Gasoline AlternativeButanol – Gasoline Alternative– From Bio-RefineriesFrom Bio-Refineries

EIA ProjectionsEIA Projections

EIA ProjectionsEIA Projections

Current Missouri Fuel UseCurrent Missouri Fuel Use

Gasoline - 250 MMG per MonthGasoline - 250 MMG per Month– 3 Billion Gallons per Year3 Billion Gallons per Year

Includes Includes 300 MMG of Ethanol300 MMG of Ethanol

Diesel – 90 MMG per MonthDiesel – 90 MMG per Month– 1.08 Billion Gallons per Year1.08 Billion Gallons per Year

At a 5% blend would use At a 5% blend would use 54 MMG 54 MMG of Biodieselof BiodieselAt 20% blend would use At 20% blend would use 216 MMG216 MMG of Biodiesel of Biodiesel

Missouri Biofuel ProductionMissouri Biofuel Production

Ethanol Ethanol – 6 Plants and 278 MGY Production6 Plants and 278 MGY Production– No New Plants Currently ExpectedNo New Plants Currently Expected– Nearly all of Missouri’s Mandated UseNearly all of Missouri’s Mandated Use

BiodieselBiodiesel– 8 Plants and 150 MGY Production8 Plants and 150 MGY Production– Two New Plants being consideredTwo New Plants being considered

Potentially 35 to 50 MGYPotentially 35 to 50 MGY

– Could Essentially Supply a B-20 MandateCould Essentially Supply a B-20 Mandate

Gas Gas Technologies Technologies

Institute Institute DiagramDiagram

GasificationGasification

Air (0.3)O2 (0.3)Steam

Heat

Producer Gas (mol%)

CO 24H2 13CH4 3CO2 8N2 52

(tars & particulate)

Synthesis Gas (mol%)

CO 39H2 20CH4 17C2H2 6CO2 18N2 0

(tars & particulate)

Fuel Gases

C6H10O5

Institutional and Commercial Institutional and Commercial Heat and PowerHeat and Power

Northwest Missouri StateNorthwest Missouri State

Houston, Missouri High SchoolHouston, Missouri High School

Mount Wachusett Community CollegeMount Wachusett Community College

Northwest Missouri State Univ.Northwest Missouri State Univ.

1982 Adopted Wood Chips1982 Adopted Wood Chips

1993 Added Paper Pellets1993 Added Paper Pellets

2001 Pelletized Animal Wastes2001 Pelletized Animal Wastes

85% of Thermal Energy85% of Thermal Energy

Saved over $12.5 million dollars!Saved over $12.5 million dollars!

Houston Missouri High SchoolHouston Missouri High School 1981 Installed Sawdust-Fueled Boiler1981 Installed Sawdust-Fueled Boiler

– 113 Horsepower 113 Horsepower – Very Low MaintenanceVery Low Maintenance

Uses ~105 Cubic Yards of Dust per WeekUses ~105 Cubic Yards of Dust per Week

@ $3.07/gallon for Oil Saves $3,100/Wk.@ $3.07/gallon for Oil Saves $3,100/Wk.

Use 20 Weeks/Year Saves $62,000!Use 20 Weeks/Year Saves $62,000!

Mount Wachusett Community CollegeMount Wachusett Community CollegeCOMBINED HEAT & POWER PROJECTCOMBINED HEAT & POWER PROJECT

BioOil and Refined BioOil and Refined BioChemicalsBioChemicals

DynamotiveDynamotive– Credit Crunch Crunched their Missouri PlansCredit Crunch Crunched their Missouri Plans

PyromexPyromex– Induction Gasification – Biomass and WasteInduction Gasification – Biomass and Waste– Inert by-product and High H2 Gas StreamInert by-product and High H2 Gas Stream

Renewable Oil InternationalRenewable Oil International– Fast Pyrolysis – Multiple Biomass FeedstocksFast Pyrolysis – Multiple Biomass Feedstocks– Oil, Char and GasOil, Char and Gas

2008 Farm Bill Definitions2008 Farm Bill Definitions `(3) ADVANCED BIOFUEL-`(3) ADVANCED BIOFUEL- `(A) IN GENERAL- The term `advanced biofuel' means fuel derived from `(A) IN GENERAL- The term `advanced biofuel' means fuel derived from

renewable biomass other than corn kernel starch.renewable biomass other than corn kernel starch. `(B) INCLUSIONS- Subject to subparagraph (A), the term `advanced biofuel' `(B) INCLUSIONS- Subject to subparagraph (A), the term `advanced biofuel'

includes--includes-- `(i) biofuel derived from cellulose, hemicellulose, or lignin;`(i) biofuel derived from cellulose, hemicellulose, or lignin; `(ii) `(ii) biofuel derived from sugar and starch (other than ethanol derived from biofuel derived from sugar and starch (other than ethanol derived from

corn kernel starch);corn kernel starch); `(iii) biofuel derived from waste material, including crop residue, other `(iii) biofuel derived from waste material, including crop residue, other

vegetative waste material, animal waste, food waste, and yard waste;vegetative waste material, animal waste, food waste, and yard waste; `(iv) diesel-equivalent fuel derived from renewable biomass, including `(iv) diesel-equivalent fuel derived from renewable biomass, including

vegetable oil and animal fat;vegetable oil and animal fat; `(v) biogas (including landfill gas and sewage waste treatment gas) `(v) biogas (including landfill gas and sewage waste treatment gas)

produced through the conversion of organic matter from renewable produced through the conversion of organic matter from renewable biomass;biomass;

`(vi) `(vi) butanol or other alcohols produced through the conversion of organic butanol or other alcohols produced through the conversion of organic matter from renewable biomassmatter from renewable biomass; and; and

`(vii) `(vii) other fuel derived from cellulosic biomassother fuel derived from cellulosic biomass..

More DefinitionsMore Definitions

`(11) INTERMEDIATE INGREDIENT OR `(11) INTERMEDIATE INGREDIENT OR FEEDSTOCK- The term `intermediate FEEDSTOCK- The term `intermediate ingredient or feedstock' means ingredient or feedstock' means a material a material or compound made in whole or in or compound made in whole or in significant part from biological productssignificant part from biological products, , including renewable agricultural materials including renewable agricultural materials (including plant, animal, and marine (including plant, animal, and marine materials) or forestry materials, that are materials) or forestry materials, that are subsequently used to make a more subsequently used to make a more complex compound or productcomplex compound or product..

Yep, More DefinitionsYep, More Definitions `(12) RENEWABLE BIOMASS- The term `renewable biomass' means--`(B) any organic `(12) RENEWABLE BIOMASS- The term `renewable biomass' means--`(B) any organic

matter that is available on a renewable or recurring basis from non-Federal land or matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian tribe that is held in trust by the United States or land belonging to an Indian or Indian tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including--subject to a restriction against alienation imposed by the United States, including--

`(i) renewable plant material, including--`(i) renewable plant material, including-- `(I) feed grains;`(I) feed grains; `(II) other agricultural commodities;`(II) other agricultural commodities; `(III) other plants and trees; and`(III) other plants and trees; and `(IV) algae; and`(IV) algae; and `(ii) waste material, including--`(ii) waste material, including-- `(I) crop residue;`(I) crop residue; `(II) other vegetative waste material (including wood waste and wood residues);`(II) other vegetative waste material (including wood waste and wood residues); `(III) animal waste and byproducts (including fats, oils, greases, and manure); and`(III) animal waste and byproducts (including fats, oils, greases, and manure); and `(IV) food waste and yard waste.`(IV) food waste and yard waste. `(13) `(13) RENEWABLE ENERGY-RENEWABLE ENERGY- The term `renewable energy' means energy derived The term `renewable energy' means energy derived

from--from-- `(A) a wind, solar, renewable biomass, ocean (including tidal, wave, current, and `(A) a wind, solar, renewable biomass, ocean (including tidal, wave, current, and

thermal), geothermal, or hydroelectric source; orthermal), geothermal, or hydroelectric source; or `(B) `(B) hydrogen derived from renewable biomasshydrogen derived from renewable biomass or water using an energy source or water using an energy source

described in subparagraph (A).described in subparagraph (A).

ROI 5 dry ton per day plant in NW Alabama

© ROI 2003

MeOH

BIOMASSBIOMASS

Cofiring/Reburn

CombinedCycle

Cat: Ni/Mg

Cat: Mixed BasesNa, Ca

CaCN

Cat: Cu-ZnO Cat: Zeolite

HYDROGEN

ETHANOL,MIXED ALCOHOLS

METHANOL, DME

OLEFINS

FTL

LPG

NAPHTHA

KEROSENE/DIESEL

LUBES

WAXES

GASOLINE

OXOCHEMICALSe.g., KETONES

AMMONIA

SNG

CHP

CHP

SYNGAS

FEED PREP

GASIFICATION

CLEANUP

Cat = Catalytic Conversion Process

Cat: Ni, Fe, Cu-Zn

Cat: Ni

Cat: Cu-Zn,Cu-Co

Cat: Cu-ZnO

Cat: H3PO4, Cr2O3

Cat: Fe

Cat: Co/K

UPGRADING

Synthesis Gas to Products

Bioenergy SuppliesBioenergy Supplies DNR Biomass Inventory DataDNR Biomass Inventory Data

– http://www.dnr.mo.gov/energy/

renewables/biomass-inventory2005-07.pdf

Total Annual Missouri Waste BiomassTotal Annual Missouri Waste Biomass

~462,500,000 Million BTU

20% of this =1,100 MW Electric

Crop Residue BiomassCrop Residue Biomass

All Biomass SourcesAll Biomass Sources

Processing of Feedstocks Processing of Feedstocks and What Ifsand What Ifs

CRP EconomicsCRP Economics

Competing Feedstock ValuesCompeting Feedstock Values

Local Economic ImpactsLocal Economic Impacts

Ownership ConfigurationsOwnership Configurations– Processing RequirementsProcessing Requirements

Photosynthesis – The Anti-EntropyPhotosynthesis – The Anti-Entropy

Processing RequirementsProcessing Requirements

QuestionsQuestions??

Samuel J. OrrSamuel J. Orr

Far More Consulting, LLCFar More Consulting, LLC

1315 Dixon Drive1315 Dixon DriveJefferson City, Missouri 65101Jefferson City, Missouri 65101

573-821-3747573-821-3747

samorr@embarqmail.comsamorr@embarqmail.com