february 10, 2006 jeff passmore, executive vice president iogen corporation
DESCRIPTION
Presentation to: Governor’s Ethanol Coalition & US EPA Environmental Meeting “Ethanol and the Environment”. February 10, 2006 Jeff Passmore, Executive Vice President Iogen Corporation. The Leading Firm in Cellulose Ethanol Technology. Pioneer in making ethanol from “biomass” - PowerPoint PPT PresentationTRANSCRIPT
February 10, 2006Jeff Passmore, Executive Vice President
Iogen Corporation
Presentation to:Governor’s Ethanol Coalition & US EPA Environmental Meeting“Ethanol and the Environment”
2
The Leading Firm in Cellulose Ethanol Technology
Pioneer in making ethanol from “biomass” Active since late 1970s $120 million spent in development $30 million annual revenue in related businesses
A leading position 178 employees focused in this area $40 million demonstration plant… the world’s first Competitive commercial manufacturer of enzymes
Alliances:
$60m $21m $16m
3
Iogen’s cellulose ethanolprocess
4
Iogen’s Ottawa demo plant - The world’s most advanced cellulose ethanol facility
5
Demonstration Scale Prototype Cellulose Ethanol Plant
6
Demonstration Scale Prototype Cellulose Ethanol Plant
7
Demonstration Scale Prototype Cellulose Ethanol Plant
8
Demonstration Scale Prototype Cellulose Ethanol Plant
9
Steady production underway since April ‘04
10
First cellulose ethanol shipment - April 21, 2004
11
The 9,000 mile launch of cellulose fuelled E85 Yukon – Aug. 2004
12
Iogen cellulose ethanol fuels G8 leaders’ vehicles Gleneagles, Scotland, July 2005
13
Iogen cellulose ethanol fuels delegates’ flex fuel fleet at COP11, Montreal
November 28 – December 9, 2005
14
Straw and stover - Our oil Farmers often burn or plow-under the residue that could be used as
feedstock. In certain black soil zones, straw burning would be eliminated.
15
DOE: Cellulose ethanol could deliver 20% savings in gasoline consumption
16
“The purpose of this report is to determine whether the land resources of the United States are capable of producing a sustainable supply of biomass sufficient to displace 30% of the country’s present petroleum consumption (i.e. 60 billion gallons per year)…1 billion dry tons of biomass feedstock per year
The short answer to the question … is yes.”
DOE & USDA: Cellulose ethanol could displace over 30% of the country’s present petroleum consumption
Source: USDOE / USDA April 2005
17
States capable of supporting a cellulose ethanol industry
20
1119
7 1410
6
8
18
16
49
135
3 12
15
17
1
2
Iogen Cellulose Ethanol PlantPreliminary U.S. Feedstock Availability Assessment
Based on total wheat and barley straw averages for 1999/2000drawn within a 100 km radius (metric tonnes)
1. MN-ND South (2.3)
2. MN-ND-North (2.3)
3. NE Montana (2.2)
4. Whitman-Lata (2.2)
5. North Central Montana (2.2)
6. South Central Kansas (2.0)
7. Western KS -Eastern CO (1.9)
8. North Central OK (1.9)
9. Lincoln-Adams-Grant (WA) (1.8)
10. North Central Kansas (1.8)
11. NW Kansas -S. Central NE (1.8)
14. Hodgeman (1.4)
15. Central North Dakota (1.4)
16. OK Panhandle (KS,CO,OK,TX) (1.2)
17. North Central South Dakota (1.2)
18. SW Oklahoma (1.1)
19. North East Colorado (1.0)
20. Chase County (.67) (by request)
12. NW-ND (1.6)
13. Walla-Walla-
Umatilla (WA-OR) (1.5)
Not Estimated
<10,000
10,000 -24,999
25,000-49,999
50,000-99,999
100,000-149,999
150,000+
ACRES
Reference: Superimposed on the USDA Map - All Wheat 1999 - Harvested Acres by County created by USDA National Agricultural Statistics Service.
29 J
anua
ry 0
2n
Iogen Cellulose Ethanol PlantPreliminary U.S. Feedstock Availability Assessment
Based on total corn stover averages for 1999/2000drawn within a 100 km radius (metric tonnes)
Reference: Superimposed on the USDA Map - All Corn for Grain 1999 - Harvested Acres by County created by USDA National Agricultural Statistics Service.
Not Estimated
<10,000
10,000 -24,999
25,000-49,999
50,000-99,999
100,000-149,999
150,000+
ACRES
7 4
10
13
8
11 6 3
2 1 9
15
14
51216
17
18
19
20
21
22 2324
1. E. Central IL - W. Central IN (11.7)
2. W. Central IL (11.0)
3. North IL (10.9)
4. N. Central IA – S.Central MN (9.6)
5. S. Eastern NE (8.9)
6. East Central IA (8.6)
7. NW Iowa – SW MN (8.4)
8. Central MN (8.3)
9. Central Indiana (7.8)
10. West Central Iowa (7.7)
11. S. Central Iowa (7.5)
12. S. Central NE (6.6)
13. NE Iowa – SE MN (6.3)
14. NE Nebraska (5.9)
15. South Illinois (3.6)
16. SW NE – Chase County (3.4)
17. OK Panhandle (KS,CO,OK,TX) (2.9)
18. NW KS – S. West NE (2.5)
19. MN-ND South (2.5)
20. N. Central SD (2.3)
21. NE Colorado (2.2)
22. W. Kansas – Eastern CO (1.9)
23. Hodgeman (1.6)
24. S. Central KS (.84)
29 J
anua
ry 0
2
- - supporting E4 to E7supporting E4 to E7
21
Benefits to energy security
Cellulose ethanol can have a significant impact
Over a billion tons of agriculture and forestry residue plus dedicated crop material is available in the US, according to recent DOE/USDA estimates
Using Iogen yields, a billion tons of cellulosic material equates to the production of ~75 billion gallons of cellulose ethanol or, on an energy basis, over 40% of the US current gasoline consumption
22
Benefits to the environment DOE: Ethanol made from cellulose has
virtually no net CO2 emissions
Gasoline Ethanol from Corn Ethanol from Cellulose
23
• Puts $ in farmer’s pockets
• Keeps jobs on the farm and in the community
• Represents a living example of sustainable development • Eliminates the need for straw burning (certain soil zones)
Benefits to agriculture
24
Commercial plant rollout: What are the site evaluation criteria?
Assess commercial/country risk using factors such as:Feedstocks
Type, availability, cost, ease of collection
Government Policy Tax situation, fuel mandates, financial incentives
Infrastructure Issues Water availability/cost, road network, rail, power and natural gas price
Investment Climate Tax rates, industrial development incentives, financing options
Ethanol & Co-Product Sales Off-take customers, refinery locations, market proximity
25
2007 Construction start targeted Pursuing a disciplined Front End
Development Process Staged commercial and technical
milestones
Working closely with Shell
Straw procurement underway 320 contracts (382,000 t/yr) in place
27
A commercial biorefinery will look like…
Project Developer: Iogen Shell Global Solutions
Lead Equity Investors: Royal Dutch/Shell Iogen Energy
Lead Candidate Locations: Idaho Saskatchewan Alberta
• Project Data:• $350 M project cost• ~ 500,000 t/yr feedstock • ~ 30 million gal/yr production• Associated power plant and
enzyme plant
28
The US Energy Policy Act of 2005 aggressively pursues cellulose ethanol
• 7.5 billion gallons of renewable fuel by 2012
• A $1 billion loan guarantee program• 80% non-recourse loan guarantee for first four plants up to max of• $250 mm/plant
• A 2.5:1 trading ratio for cellulose ethanol
• 250 million gallon minimum annual required volume of cellulose ethanol beginning in 2013
29
The President’s ’06 State of the Union Address put wind in the sails of the ’05 Energy Policy Act
“Keeping America competitive requires affordable energy. Here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world.
We will also fund additional research in cutting-edge methods of producing ethanol, not just from corn but from wood chips, stalks, or switch grass.
Our goal is to make this new kind of ethanol practical and competitive within six years. Breakthroughs on this and other new technologies will help us reach another great goal: to replace more than 75 percent of our oil imports from the Middle East by 2025.”
- President Bush, Jan. 31 State of the Union Address