Bio-energy May 10, 2007 Recommendations for a Bioenergy Plan for California ; CEC-600-2006-004-F APRIL 2006 http://energy.ca.gov/2006publications/CEC-600-2006-004/CEC-600-2006-004-F.PDF 1 Conversion Pathways Recommendations for a Bioenergy Plan for California ; CEC-600-2006-004-F APRIL 2006 http://energy.ca.gov/2006publications/CEC-600-2006-004/CEC-600-2006-004-F.PDF 2 Pipeline-Quality Biogas Benefits • California has 1.7 million cows in 2,100 dairies – 75% in Northern California – 50% in San Joaquin Valley • Methane normally escapes to atmosphere from open lagoons at dairies • Methane and other reactive organic gases (ROGs) cause air nonattainment status for San Joaquin Valley • Methane is 21 times as potent as CO2 as a Greenhouse Gas • Central generating plants are cleaner and more efficient than small, distributed generators that would be used at dairies • Pipeline transport to cleanest, most efficient central plant cleans up valley air and destroys a potent greenhouse gas • PG&E will produce more renewable energy without the need for electric transmission reinforcements 3 Biomass Sources and Existing Power Facilities Source: CEC Report A roadmap for Biomass in California, CEC-500-2006-095-D, November 2006 http://biomass.ucdavis.edu/pages/reports/Roadmap.doc 4 Recommendations for a Bioenergy Plan for California ; CEC-600-2006-004-F APRIL 2006 http://energy.ca.gov/2006publications/CEC-600-2006-004/CEC-600-2006-004-F.PDF 5 Overview of Conventional Processes Source: Office Biomass Program Presentation to Technical Adisory Committee March 11, 2004 http://www.brdisolutions.com/site%20docs/FACAGasification.pdf 6 Promising Technology: Great Point Energy’s Catalytic Methanation • Claims to produce $2.50-$3.50/MMbtu methane from coal without subsidies or tax credits • Key to process is proprietary catalyst that allows low temperature gasification/methanation process with steam – Large avoided capital infrastructure – Significant reduction in operating costs from operating at lower temperatures – Lower maintenance requirements • Demo project at O’Hare airport • Investor backing includes Draper Firsher Jurvelson, Kleiner Perkins • Management team includes serial entrepreneurs, gasification and refining veterans Source www.greatpointenergy.com 7