“Focus on Energy: Using Biomass for
Fuel”

Making ethanol work for the world.
™
Larry Johnson
Business & Project Development

Collection Handling Storage


“Green Energy” Mandates www.dsireusa.org
☼
WA:
OR
15% by 2020*
: 25% by 2025
MT: 15% by 2015
(large utilities
5% - 10% by 2025 (smaller utilities)
)*
ND: 10% by 2015
SD: 10% by 2015
MN: 25% by 2025
(Xcel: 30% by 2020)
VT: (1) RE meets any increase in retail sales by 2012;
(2) 20% RE & CHP by 2017
MI: 10% + 1,100 MW by 2015*
WI : Varies by utility;
10% by 2015 goal
☼ NY: 24% by 2013
☼ NV : 25% by 2025*
CA: 20% by 2010
☼ AZ:
UT: 20% by 2025*
15% by 2025
☼
☼ CO: 20% by 2020 (IOUs)
10% by 2020 (co-ops & large munis)*
NM: 20% by 2020 (IOUs)
10% by 2020 (co-ops)
IA:
KS: 20% by 2020
☼
105 MW
☼ IL:
MO: 15
☼
OH : 25% by 2025 †
25% by 2025
% by 2021
WV: 25% by 2025*
VA: 15% by 2025*
†
☼ NC : 12.5% by 2021 (IOUs)
10% by 2018 (co-ops & munis)
☼ PA: 18% by 2020
☼ NJ: 22.5% by 2021
☼ MD: 20% by 2022
☼
☼
ME: 30% by 2000
New RE: 10% by 2017
☼
☼
RI: 16% by 2020
CT: 23% by 2020
DE:
DC:
NH:
MA:
23.8% by 2025
15% by 2020
+ 1% annual increase
(Class I Renewables)
20% by 2020
†
20% by 2019*
TX: 5,880 MW by 2015
HI: 40% by 2030
29 States have an RPS
6 states have goals
State renewable portfolio standard
State renewable portfolio goal
Solar water heating eligible
☼
Minimum solar or customer-sited requirement
*
†
Extra credit for solar or customer-sited renewables
Includes non-renewable alternative resources

BioFuels Production and RFS2

Development and consumption of biomass by DONG Energy starting from
1989.

Inbicon’s raw material know-how:
DONG Energy’s 100% biomass-fired power plant.


368MMDT/Y - Forest Products

998MMDY/Y- Agricultural

1,368,000,000 Total Dry Tons Available

Potential for > 100 Billion Gallons of Ethanol

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Woody Biomass
Designated Energy Crops
MSW and Industrial Wastes
Crop Residues

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Lumber Harvest Residues
Milling Byproducts
Tree Plantations
Orchard Trimmings
Forest Management
Urban Green Wastes

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Sorghum
Sugarcane
Miscanthus
Switchgrass
Poplars/Willows
Algae
Exotics

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Grain Processing Byproducts
Industrial Wastes
Consumer Wastes
Food and Beverage Byproducts

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Wheat and Barley Straw
Rice Straw
Corn Stover
Corn Cobs
Bagasse
Grasses

Straw/Stover/Cob
Inbicon Biomass
Refinery lignin 50MT/hr (20Mgpy)
Steam Power
Ethanol
C5 Molasses
Multi-fuel (as req’d)
On-Site
CHP Plant
Steam
Power
Energy Reduction of
50-100%+
Existing
100Mgpy
Grain-based
Ethanol Facility

1,200 MT/day – 20Mgpy

Baler from Krone capable of pressing
4’X4’X8’ bales weighing about 1300 lbs.

Tarp Covering U.S.

Wheat Straw Storage: Stokervarme, DK

Property (%bdb) Corn Stover
ASH CONTENT
CELLULOSE (C6 sugars)
HEMI‐ CELLULOSE
CONTENT (C5 sugars)
LIGNIN CONTENT
8.13%
37.49%
26.54%
16.74%
Corn Cobs
3.78%
43.50%
36.50%
11.60%

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Higher capital costs
Lower operating costs
Very clean product
Contains all the cobs
Reduced volume per acre
Less moisture control
Compliments farmers’ schedule

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Lower capital costs
Higher operating costs
May contain 10% dirt
Contains very few cobs
Greater volume per acre
More moisture control
Requires farmer scheduling

One Pass Stover Bale with Cobs

One Pass System

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200,000 acres @ 2.5 tons/acre
500 farmer contracts @400 acres/farmer
Each contract will have options/variables
$15 million in inventory @ $30/ton
250 acres for storage sites

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800,000 bales @ 13 pound density
20,000 bales/day in a 40 day harvest season
555 semi-loads per day @ 36 bales/load
50 balers required @ 100 acres/day

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What does the plant need?
 Cob/stalk ratio
What will the plant accept?
 Moisture content
What is the pricing formula?
 Contract specifications

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Use GIS analysis and regional crop history
Coordinate radius with road delivery system
Estimate tons harvested per acre
Calculate % of total available acres needed

Defined 25 mile radius of selected plants

Tracking of biomass bales per field

• Feedstock Supply Analysis
• Create Procurement Company
• Develop Procurement Model
• Initiate Procurement Contracts
• Define Collection and Storage Logistics
• Implement Program

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Procurement and delivery contracts
Define logistical and timing details
Credit-worthy feedstock supplier
Financing of procurement company
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 Staffing - personnel
Equipment requirements
Deposit on farmer contracts
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 feedstock payment
Fuel purchase and storage
Regional Storage Sites
Insurance

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Host plant subsidiary
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Farmer owned cooperative
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Independent company

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Identify and contact growers
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FCS office (USDA)
Host plant customers
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Grain elevators
Farm groups and associations

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Local weather reporting system
GPS field locations
ID and quantify product at harvest
Match harvest with each contract
Identify and coordinate storage sites

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Federal (BCAP)
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State (Economic Development)
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Local (TIF – Utilities)

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Form a local advisory committee
Identify and contact growers
 FCS office (USDA)
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Host plant customers
Grain elevators
Farm groups and associations

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Negotiate harvest schedule with growers
Quality control and land use details
Incentives and penalties
Payment guarantees
On farm storage where applicable

Full time staffing activities
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 General Mgr. and CFO (1)
Office and clerical (1)
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 Acquire and service contracts (3)
Scheduling and coordinating harvest (1)
Staff hiring and training (1)
Manage harvest crews (1)
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 Equipment maintenance (2)
Fuel supply infrastructure (1)
Manage feedstock inventories (1)

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Part time staffing (harvest)
 Harvest and collection (~50)
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Trucking from field to storage (~45)
Manage fuel delivery (1)
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Collect and coordinate data (~5)
Miscellaneous “Gofer” (1)

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Identify all growers within a plant radius
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Conduct grower informational meetings
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Negotiate and sign contracts for delivery

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Balers, semis, loaders, stackers, wagons, fuel trucks, choppers, windrowers
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Purchase
Lease
 Custom Contract

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Harvesting: Balers, Tractors, Loaders
Trucking: To Plant and Regional Storage Sites
Stacking: Roadside and Regional Storage

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Grading and Drainage
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Road Access
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Zoning and Permitting

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Roadside storage
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Farmer storage
Tempering
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Bale covering
Weighing and accounting

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Field location and harvest date
Bale count, moisture and density
Ownership recording and receipt
Reconciliation with Contract
Storage site destination

Inventory Management
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Storage specifications
Fire Protection
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Transport from Storage to Plant
Permitting and Zoning
Dust Control
Feedstock Security

Can it be done?
Absolutely!

Will it happen?
Absolutely!

When will it happen?
When we get technology, government, and financing working together.

Making ethanol work for the world.
™