Field day presentation


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Given at Freedom Field Day, Jan 13, 2011.

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Field day presentation

  1. 1. Commercializing Miscanthus as a Feedstock Freedom Field Day Jan 13, 2011
  2. 2. Demand for Biomass
  3. 3. The Future Requires Biomass <ul><li>Government mandates </li></ul><ul><ul><li>36 billion gal by 2022, with 15 billion cap on corn ethanol </li></ul></ul><ul><ul><li>Electricity from renewables mandated </li></ul></ul><ul><li>Billion Ton Supply: grown in various areas using best-suited crops </li></ul><ul><li>Put this problem to the farmers & landowners, we’ll solve it </li></ul>
  4. 4. Electricity from Biomass Demand is MANDATED State renewable portfolio standard State renewable portfolio goal <ul><li>Electricity Generation Mandates </li></ul><ul><li>29 States + DC have RPS </li></ul><ul><li>Proposed Waxman Bill (June 09) </li></ul><ul><ul><li>Federal mandate </li></ul></ul><ul><ul><li>20% RPS by 2020 </li></ul></ul><ul><ul><li>Would require 370 million tons per year of biomass </li></ul></ul><ul><li>Federal Mandates for entire US are thought to be coming in some form </li></ul>
  5. 6. Liquid Biofuels Demand is MANDATED <ul><li>Energy Independence Act of 2007 </li></ul><ul><li>RFS2 (Renewable Fuel Standard 2) </li></ul><ul><li>36 billion gallons biofuel by 2022 </li></ul><ul><li>15 billion corn-based ethanol cap </li></ul><ul><li>21 billion advanced biofuels </li></ul><ul><li>Will require 1 Billion Tons of Biomass </li></ul>
  6. 7. Forecasted US Biomass Demand U.S. demand expected to grow from 33 mtpa to 157 mtpa by early 20’s CAGR = compounded annual growth rate MTPA = million tons per year
  7. 8. Current Renewable Sources are Limited <ul><li>Electricity Generation </li></ul><ul><li>Wind and solar were 1 st generation, but limited and/or expensive alternatives for future </li></ul><ul><li>Biomass (wood, grasses, sugarcane, waste and residue) </li></ul><ul><li>Natural resource, with potential for abundant supply and cost advantages </li></ul><ul><li>Low impact and environmentally friendly alternatives </li></ul>Biomass expected to capture lion-share of market growth
  8. 9. Land Cost Drives Biomass Economics Land cost and suitability drastically impact price per ton ($/mm btu = dollars per million btu’s) Confidential Information
  9. 10. Billion Ton Supply <ul><li>“ Significant parts of the needed supply chain have received little attention, including varieties of dedicated biomass crops suited to different growing environments across the country.” </li></ul><ul><li>-- Growing America’s Fuel : An Innovation Approach to Achieving the President’s Biofuels Target </li></ul>
  10. 11. Giant Miscanthus 101
  11. 12. Miscanthus x giganteus Perennial Energy Grass, Yielding 20+ Tons/Acre
  12. 13. Giant Miscanthus <ul><li>The best crop in the SE for growth of cellulosic material </li></ul><ul><li>Many benefits: </li></ul><ul><ul><li>Environmental </li></ul></ul><ul><ul><li>High Yield & Profit Potential </li></ul></ul><ul><ul><li>Government Benefits & Cost Sharing (BCAP) </li></ul></ul><ul><ul><li>Low Inputs & Production Costs </li></ul></ul><ul><ul><li>Care-free Growth </li></ul></ul>
  13. 14. <ul><li>Giant miscanthus identified as a C4 perennial crop with huge biomass potential: up to 25 tons/acre/yr, dependent upon: </li></ul><ul><ul><ul><ul><li>Variety </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Culture practices </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Geographical location </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Soil Class </li></ul></ul></ul></ul><ul><li>Height up to 15 ft </li></ul><ul><li>Dormant harvest: nutrients & moisture senesce back to roots </li></ul><ul><ul><li>10-15% Moisture Content at harvest </li></ul></ul><ul><ul><li>Sequesters Carbon </li></ul></ul><ul><ul><li>Returns minerals back to roots </li></ul></ul>Giant Miscanthus:
  14. 16. Miscanthus is not switchgrass.
  15. 17. <ul><li>Developed by Dr. Brian Baldwin at MSU, through 12 years of biomass crop study and selection for superior traits. </li></ul><ul><li>The only variety MEANT FOR the Southeast. </li></ul><ul><li>Freedom is the only University-released, named, certified strain of giant miscanthus. </li></ul>
  16. 18. <ul><li>“ We see a lot of potential in Freedom giant miscanthus --it’s the most promising of the hundreds of miscanthus cultivars we’ve evaluated over the years, and it’s light years ahead of any of the other grasses.” </li></ul><ul><li>--Dr. Brian Baldwin, MSU </li></ul>
  17. 19. The Brief Story: <ul><li>Began with small amount of rhizomes </li></ul><ul><li>Decided on certified “Foundation Stock” because of importance of purity </li></ul><ul><li>Began propagating commercially </li></ul><ul><li>Now licensing growers throughout SE </li></ul><ul><li>Began talks with end-users on contracted biomass </li></ul><ul><li>Now, in 2010: </li></ul><ul><ul><li>500 acres of Foundation -- and over 5,000,000 rhizomes planted to date </li></ul></ul>
  18. 20. Yield Model: Year 1-5 2-3 Tons/Acre 1 8 Tons/Acre 2 13-15 Tons/Acre 3 18-22 Tons/Acre 4 22-25 Tons/Acre 5 <ul><li>Establishment </li></ul><ul><li>Fertilizer </li></ul><ul><li>Herbicides </li></ul><ul><li>Little Fertilizer </li></ul><ul><li>Little Herbicides </li></ul><ul><li>Full Yield </li></ul><ul><li>20+ Year Life </li></ul>Stem Crown Size at Ground
  19. 21. At Planting Time, Marginal Soil Example
  20. 22. 1st Year Plot, August & October
  21. 23. Same plot, 2nd year June, 2010 July, 2010
  22. 24. 6th Year Plot. Growing at MSU. No fertilizer.
  23. 25. <ul><li>Little to no fertilizer needs </li></ul><ul><li>Highly drought tolerant </li></ul><ul><li>No known pests </li></ul><ul><li>Dense growth crowds out weeds </li></ul><ul><li>Nutrients returned to soil each year </li></ul><ul><li>Can grow on Marginal Soils </li></ul><ul><li>CO 2 neutral, or negative energy source: Carbon credits </li></ul><ul><li>~ 12% Moisture Content at Harvest </li></ul><ul><li>Up to 25 tons per acre yield </li></ul>Attributes & Benefits Driving Growth
  24. 26. <ul><li>New growth from rhizomes </li></ul><ul><li>Plant is sterile </li></ul><ul><ul><li>Triploid = seed sterile </li></ul></ul><ul><li>Multiplication is by plant division </li></ul><ul><li>5,000 rhizomes per acre </li></ul>Giant Miscanthus Growth
  25. 27. Rhizomes
  26. 28. Freedom Material Characteristics Moisture Content At Harvest ~ 12% BTU Values: As Harvested ~ 7,250/lb Dry Basis ~ 8,200/lb Wood as harvested: ~ 4,600/lb Ash Content: ~ 3%
  27. 29. Yield Comparisons
  28. 31. Biomass Yields for SE <ul><li>3-5X the yield of timber & switchgrass </li></ul><ul><li>Almost double the yield of other giant miscanthus </li></ul>
  29. 32. 1 Acre of Freedom 28 tons total over first three years 20-25 tons/yr each year thereafter 288 tons after 16-years of harvest 18+ tons/year cumulative yield 12-15% Moisture Content
  30. 33. Grower Economics
  31. 34. Grower Economics
  32. 35. Grower Economics
  33. 36. Grower Economics
  34. 37. Scaling-Up: Our Growth Model
  35. 38. The Innovator’s Dilemma: <ul><li>You can always tell who the pioneers are… </li></ul><ul><li>They’re the ones with the arrows in their backs. </li></ul>
  36. 39. Efforts Going Forward: <ul><li>500+ acres of Foundation planted </li></ul><ul><li>Demo plots in 10 states </li></ul><ul><ul><li>Monitor, research growth & yields </li></ul></ul><ul><ul><li>Learn best approach for each region </li></ul></ul><ul><li>Ongoing Research with MSU </li></ul><ul><li>2011: We can plant 20-30,000 acres from rhizomes </li></ul><ul><li>2012+: Exponential growth in acreage </li></ul>
  37. 40. Greenhouse for Trials/Research Also utilized greenhouses and fields to accelerate propagation
  38. 41. 500 Acres of Foundation Stock
  39. 42. Southeast Demo Plots
  40. 43. Supply Chain Logistics
  41. 44. The Supply Chain Doesn’t Exist <ul><li>Must create a supply chain, not just acreage </li></ul><ul><li>Harvest, propagation equipment </li></ul><ul><li>Storage and transportation </li></ul><ul><li>Intermediary forms: pellets, briquettes, torrefied </li></ul><ul><li>We’re participating and innovating at each of these steps </li></ul>
  42. 45. Harvesting <ul><li>In-field bailing – varies by equipment </li></ul><ul><ul><li>Up to 4’x4’x8’ </li></ul></ul><ul><ul><li>650 to 1,400 lbs per bale </li></ul></ul><ul><li>Modified existing equipment and specialized equipment under development </li></ul>
  43. 46. Storage Requirements & Options <ul><li>Ease of storage allows for year-around supply </li></ul><ul><ul><li>Annual storage in-field with cover </li></ul></ul><ul><ul><li>Covered bales increase longevity </li></ul></ul><ul><li>Minimal risk of internal combustion or rot/loss (low moisture content) </li></ul><ul><li>Bale handled with traditional tractors and forklifts </li></ul>
  44. 47. Handling and Conveyance
  45. 48. Transportation Efficiencies
  46. 49. Densification <ul><li>Shreds and Briquettes </li></ul><ul><li>Pellets </li></ul><ul><li>Shredding, Hammer-milling and pelletizing </li></ul><ul><li>EU Pellet Standards </li></ul><ul><li>Torrefied </li></ul><ul><li>Hydrophobic / Inert = outside storage </li></ul><ul><li>~20% yield loss; ~30% boost in btu value </li></ul>
  47. 50. Field of Freedom Giant Miscanthus
  48. 51. Thank you for your time. Contact: Phillip Jennings [email_address]
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