Bio-energy

May 10, 2007

2Recommendations 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

3

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

4

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 non-attainment 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

5

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

6Recommendations 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

7

Overview of Conventional Processes

Source: Office Biomass Program Presentation to Technical Adisory Committee March 11, 2004

http://www.brdisolutions.com/site%20docs/FACAGasification.pdf

8

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