Biofuel Projects in the Northwest An Overview Nikola Davidson October 2, 2008

Who We Represent NW biodiesel and ethanol businesses Idaho, Montana, Oregon, and Washington What We Do Promote the growth of NW biofuels Serve as the voice of the industry

Building Successful Biofuel Projects in the Northwest Biodiesel and Ethanol What’s unique about the Northwest Models that work Challenges Opportunities What’s needed Future trends

Northwest Biofuels Biodiesel Vegetable or fruit oil Animal fat Ethanol Starch/sugar Cellulosic

What’s Unique About the Northwest Support for NW Biofuels –Uniting political and geographical divides –Research Labs (PNNL, Batelle, BESL) Universities (UofI, WSU, Sun Grant, MSU) –Strong investment in green/clean industry –History of innovation –Consumer use –Policy/tax incentives City and state

Successful NW Biofuel Models Small, distributed biorefineries – scaled to feedstock Multiple feedstocks using flexible technology Vertical integration (control of feedstocks) Feedstocks with co-products Rotation crops that use marginal land, low inputs Flexible technology Maximize waste streams Strategic co-locations Valuable processor co-products

What’s Unique About the Northwest Feedstocks What we don’t have What we do have Competing with high value crops Biorefineries Scale Technology

Challenges Feedstock –Availability –Price –Collection Sustainability Concerns –Public support –Policy implications Policy Mixed Messages

Cellulosic Ethanol Challenges –Technology –Cost –Expensive, volatile biomass –Distributed feedstock –Transportation costs –Economy of scale

Cellulosic Ethanol

Biofuel Project Opportunities Biodiesel Feedstocks Oilseeds (camelina) Algae Maximize waste streams Used cooking oil Industrial oil Trap grease Tallow Glycerin Alternative land – airports, highways Strategic co-locations

Biofuel Project Opportunities Ethanol Feedstocks –Other starch-based New feedstocks - Russian dandelion, sweet sorghum Waste streams – culled potatoes, distressed wheat, blueberry water –Cellulosic Switchgrass, hybrid poplars Forest thinnings Municipal solid waste Building on current plants Pulp and paper mills Improvements in harvesting/collecting Strategic co-locations Alternative lands

Cellulosic Ethanol

Opportunities - Carbon and Biofuels Low Carbon Fuel Standard –Technology neutral –Rewards fuels with lowest carbon footprint –Metrics to get there – “brutal” –Watch California Carbon credit market

What’s Needed For a Robust Local Industry Coordinated state policy –Renewable fuel standard/mandate –Tax credits –Funding for infrastructure (including retail) –Expedited permitting –Incentives for local feedstock production –Mandatory fleet use Research in coordination with industry Partnership between agricultural community and industry Capitalize on capturing carbon credits

Future Trends Next generation feedstocks Competing technologies

Biofuel Projects in the Northwest An Overview Nikola Davidson