How the Forester and Farmer Can Save America

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1 How the Forester and Farmer Can Save America Dick Carmical, General Manager February, A simple perspective Past: We developed problems.

2 A simple perspective Past: We developed problems. Today: Admit the problems. A simple perspective Past: We developed problems. Today: Admit the problems. Future: Turn these problems into opportunities.

3 We Developed Problems We became addicted to oil. As 5% of the world s population we consume 25% of the world s oil. Trade deficit energy imports top $300 Billion in Environmental concerns. Spent $1.8 Trillion in past 14 years to protect Middle Eastern oil. Rural exodus due to lack of j obs % of the population lived on a farm less than 2% live on a farm. Lack of value added to wood products causes loss of jobs. Admit the problem Focus groups form to advance ideas of biomass for fuel 25 x 25 AF&PA s Agenda 2020 U.S. DOE/EERE (Energy Efficiency and Renewable Energy) Rocky Mt. Institute ACORE s Biomass Coordinating Council Pro Environment Congress and Senate elected. President offers Twenty in Ten plan in State of the Union.

4 Turn These Problems Into Opportunities New uses for black liquor and biomass. Purchaser of 8 gigawatts to seller of 24. Sale of energy exceeds traditional products. Woody BIOstock for Cellulosic Ethanol Cellulose and hemicellulose are polymers of sugars. Bonds can be broken down for fermentation into ethanol and other valuable fuels and chemicals

5 Forest products biorefinery Kraft pulp mill with input of 2,089tpd bone dry hardwood, 1,122tpd bone dry softwood and 318tpd unbleached pulp. Agenda 2020 Technology Alliance and American Forest and Paper Association 7/2006 Forest products biorefinery Agenda 2020 Technology Alliance and American Forest and Paper Association 7/2006

6 Turn These Problems Into Opportunities New uses for black liquor and biomass. Reduce military presence in the Middle East. Military surcharge for oil America s Strategic Imperative: A Manhattan Project for Energy National Defense University

7 Turn These Problems Into Opportunities New uses for black liquor and biomass. Reduce military presence in the Middle East. Produce 25% of vehicle fuel from biomass. BioEnergy: Energy from BIOstock What is biomass feedstock? Agricultural - cultivated energy crops, grains, ag waste, corn stover, rice straw Forestry -healthy & diseased trees, underbrush, sawdust, wood chips, wood pulp, black liquor Urban -tires, municipal solid wastes, unrecyclables

8 U.S. biomass potential U.S. DOE EERE, 8/2005 BIOstock conversion technologies to produce biofuels: First generation - food crops Sugar fermentation Second generation - homogenous biomass cellulosic breakdown to sugars using acid or Enzyme hydrolysis, then sugar fermentation Third generation - heterogenous biomass gasify biomass to syngas (CO + H 2 ), then Syngas fermentation to biofuels + co-generation of green electricity

9 Conversion to ethanol Conversion Process Feedstock Sugar fermentation Homogenous sugar/starch - corn, sugarcane Enzyme/Acid hydrolysis Homogenous cellulosic - incl. ag, wood Syngas fermentation Heterogenous cellulosic -incl. ag, wood, MSW Workflow Batch Batch Continuous Speed 2 days 4 days 7 minutes EROIE Positive Good - Depends on Feedstock Water Usage gal./ gal. of ethanol gal./ gal. of ethanol Better - Depends on Feedstock <1 gal./ gal. of ethanol By-Products DDG DDG & Chemicals Syngas/Electricity Progress 101 commercialscale U.S. plants Pilot plants - NREL, Iogen, SunOpta, Arkenol, Celunol Pilot plants - BRI, Fuel Frontiers, American Process Turn These Problems Into Opportunities New uses for black liquor and biomass. Reduce military presence in the Middle East. Produce 25% of vehicle fuel from biomass. Trade deficit becomes a surplus. Profits from new economy trigger tax cuts. Entire process is environmentally friendly.

10 Call to action Recognize the urgency of the problem. Read. MANPOWER VISION Search the DEVELOPMENT internet. Join associations. Lobby your state and national legislatures. Develop Manhattan Project type focus. Leaving this country financially secure and environmentally sustainable is the most noble legacy that we can leave our children.

11 How things are in 2007 BioEnergy - #1 U.S. Renewable Energy! 47% of all renewable energy is from biomass 4% of total energy in U.S. is bioenergy Paper mill residue most common BIOstock 48% of bioenergy consumed by pulp & paper comes exclusively from using black liquor 500 Million dry tons of biomass available = 50 Billion gal. of ethanol (25% of gas demand)