1. Biomass Producer Opportunities for the Next Ten Years At Bioenergy 101 November 24, 2008 University of Central Missouri Campus

2. Samuel J. Orr Far More Consulting, LLC 1315 Dixon Drive Jefferson City, Missouri 65101 573-821-3747samorr@embarqmail.com

3. What We’ll Cover  Bioenergy Markets  Bioenergy Supplies  Processing of Feedstocks and What Ifs

4. Bioenergy Markets  Electricity Generation  Liquid Motor Fuels  Institutional and Commercial Heat and Power  BioOil and Refined BioChemicals

5. Electricity Generation  National Projections  Missouri Projections  How Much Biomass Could Be Used?  One Way of Making Fuel

6. EIA Projections

10. Missouri Projections  Investor Owned Utilities –Currently, see need for 310 MW by 2012, even AFTER a 700 MW jump in 2010  Missouri Joint Municipal Electric Utility Commission – (MJMEUC )  Associated Electric –Approximately 3,800 MW now –50% Increase in Electricity Demand by 2025 –So 900+ MW Additional Needs

11. Biomass Dry Tonnages and Btu Content for Forest Residues and Forest Thinnings, Annualized for Morgan and Surrounding Counties, Missouri Logging Residues Timber Thinning (20 Yr. Rotation) CountyTons (dry)MBTUTons (dry)MBTU Benton2,06535,308 141,5712,420,857 Camden6,826116,719 124,7862,133,836 Cooper1,31822,537 29,803509,629 Miller4,78781,858 92,6601,584,482 Moniteau71312,195 25,875442,458 Morgan2,14236,623 94,3561,613,482 Pettis3886,627 27,841476,073 Totals18,238311,868 536,8929,180,816

12. One Way of Making Fuel

13. It takes approximately 83,000 Million BTU to fuel 1 MW of electric generation capacity

14. Liquid Motor Fuels  Ethanol – Corn and Cellulosic  Biodiesel – Bean, Oil and Other  Butanol – Gasoline Alternative – From Bio-Refineries

15. EIA Projections

17. Current Missouri Fuel Use  Gasoline - 250 MMG per Month –3 Billion Gallons per Year  Includes 300 MMG of Ethanol  Diesel – 90 MMG per Month –1.08 Billion Gallons per Year  At a 5% blend would use 54 MMG of Biodiesel  At 20% blend would use 216 MMG of Biodiesel

18. Missouri Biofuel Production  Ethanol –6 Plants and 278 MGY Production –No New Plants Currently Expected –Nearly all of Missouri’s Mandated Use  Biodiesel –8 Plants and 150 MGY Production –Two New Plants being considered  Potentially 35 to 50 MGY –Could Essentially Supply a B-20 Mandate

20. Gas Technologies Institute Diagram

21. Gasification Air (0.3) O 2 (0.3) Steam Heat Producer Gas (mol%) CO24 H 2 13 CH 4 3 CO 2 8 N 2 52 (tars & particulate) Synthesis Gas (mol%) CO39 H 2 20 CH 4 17 C 2 H 2 6 CO 2 18 N 2 0 (tars & particulate) Fuel Gases C 6 H 10 O 5

22. Institutional and Commercial Heat and Power  Northwest Missouri State  Houston, Missouri High School  Mount Wachusett Community College

23. Northwest Missouri State Univ.  1982 Adopted Wood Chips  1993 Added Paper Pellets  2001 Pelletized Animal Wastes  85% of Thermal Energy  Saved over $12.5 million dollars!

24. Houston Missouri High School  1981 Installed Sawdust-Fueled Boiler –113 Horsepower –Very Low Maintenance  Uses ~105 Cubic Yards of Dust per Week  @ $3.07/gallon for Oil Saves $3,100/Wk.  Use 20 Weeks/Year Saves $62,000!

25. Mount Wachusett Community College COMBINED HEAT & POWER PROJECT

26. BioOil and Refined BioChemicals  Dynamotive –Credit Crunch Crunched their Missouri Plans  Pyromex –Induction Gasification – Biomass and Waste –Inert by-product and High H2 Gas Stream  Renewable Oil International –Fast Pyrolysis – Multiple Biomass Feedstocks –Oil, Char and Gas

27. 2008 Farm Bill Definitions  `(3) ADVANCED BIOFUEL-  `(A) IN GENERAL- The term `advanced biofuel' means fuel derived from renewable biomass other than corn kernel starch.  `(B) INCLUSIONS- Subject to subparagraph (A), the term `advanced biofuel' includes--  `(i) biofuel derived from cellulose, hemicellulose, or lignin;  `(ii) biofuel derived from sugar and starch (other than ethanol derived from corn kernel starch);  `(iii) biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste, food waste, and yard waste;  `(iv) diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat;  `(v) biogas (including landfill gas and sewage waste treatment gas) produced through the conversion of organic matter from renewable biomass;  `(vi) butanol or other alcohols produced through the conversion of organic matter from renewable biomass; and  `(vii) other fuel derived from cellulosic biomass.

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

29. Yep, More Definitions  `(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 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--  `(i) renewable plant material, including--  `(I) feed grains;  `(II) other agricultural commodities;  `(III) other plants and trees; and  `(IV) algae; and  `(ii) waste material, including--  `(I) crop residue;  `(II) other vegetative waste material (including wood waste and wood residues);  `(III) animal waste and byproducts (including fats, oils, greases, and manure); and  `(IV) food waste and yard waste.  `(13) RENEWABLE ENERGY- The term `renewable energy' means energy derived from--  `(A) a wind, solar, renewable biomass, ocean (including tidal, wave, current, and thermal), geothermal, or hydroelectric source; or  `(B) hydrogen derived from renewable biomass or water using an energy source described in subparagraph (A).

31. ROI 5 dry ton per day plant in NW Alabama © ROI 2003

32. MeOH BIOMASS Cofiring/Reburn Combined Cycle Cat: Ni/Mg Cat: Mixed Bases Na, Ca CaCN Cat: Cu-ZnO Cat: Zeolite HYDROGEN ETHANOL, MIXED ALCOHOLS METHANOL, DME OLEFINS FTL LPG NAPHTHA KEROSENE/DIESEL LUBES WAXES GASOLINE OXOCHEMICALS e.g., KETONES AMMONIA SNG 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

33. Bioenergy Supplies  DNR Biomass Inventory Data –http://www.dnr.mo.gov/energy/ http://www.dnr.mo.gov/energy/ renewables/biomass-inventory2005-07.pdf  Total Annual Missouri Waste Biomass ~ 462,500,000 Million BTU   20% of this =1,100 MW Electric

34. Crop Residue Biomass

35. All Biomass Sources

36. Processing of Feedstocks and What Ifs  CRP Economics  Competing Feedstock Values  Local Economic Impacts  Ownership Configurations –Processing Requirements  Photosynthesis – The Anti-Entropy

37. Processing Requirements

38. Questions ? Samuel J. Orr Far More Consulting, LLC 1315 Dixon Drive Jefferson City, Missouri 65101 573-821-3747samorr@embarqmail.com