Biofuels Public / Private Initiatives CESE Grand Opening April 8, 2010 Paul Hoar AgriFuels LLC
Overview Public Policy Enablers Public / Private Initiatives Potential Regional Opportunities
Public Policy Enablers National Initiatives EPA RFS2 Biofuels Use Mandate : NBB DOE Alternative Fuels: Clean Cities Regional Initiatives CT: Laboratory (CESE / AgriFuels) Northeast States Bioheat Mandates Commercial Initiatives Department of Defense
NREL 2007 Biodiesel Quality Results Samples are representative of biodiesel market in US: 56 out of 107 producers provided samples 89.9% of B100 samples passed the ASTM D6751 specification 94% of the volume from large producers: >50MGY 68% of the volume from medium producers: 20-50MGY 28% of the volume from small producers: <20MGY BQ-9000 producers have very low failure rate regardless of production volume Small producers failed specifications more often than medium or large producers Source: Teresa L Alleman, National Renewable Energy Laboratory - NBB Conference February 2008
Connecticut Fuel Quality Laboratory University of Connecticut CESE (www.cese.uconn.edu) Certified by EPA and State of CT Department of Health Rec d $600K in April 09 to purchase ASTM D6751 equipment ASTM capability (16 of 19 properties) April 2010 In Process of being designated State Fuel Quality Lab by CT W&M (DCP) AgriFuels LLC / UCONN Sponsored Research Agreement (SRA) 2009 UCONN to provide low cost testing and results analysis UCONN to mentor/round robin with other state labs AgriFuels to acquire biodiesel samples and provide BQ 9000 Accreditation assistance
Connecticut Quality Compliance Model CT Department of Consumer Protection (W&M) Has authority and personnel to obtain samples Insufficient funding to conduct ASTM Tier II Testing CT biodiesel producers and marketers Have agreed to pay for periodic W&M compliance testing at CESE & use results for their own business purposes CT DCP Establishes Chain of Custody (COC) of samples and brings to CESE Performs compliance function for biodiesel at minimal cost to the state CESE completes Certificate of Analysis (COA) Results are sent to CT DCP, owner of sample (producer, marketer) and AgriFuels Owner, CESE and AgriFuels determine root cause, corrective action and trending (BQTS)
Most Important Factors for Reviving Biodiesel Production Mandates 32% Tax Credits 21% Alternative Feed stocks 21% >Biodiesel-Friendly Cars/Trucks 26% Source: Online Surveys by Constant Contact
Northeast States Bioheat Mandates September 2009, 23 NORA states selling heating oil agreed to utilize Bioheat to compete with natural gas: ICPA-CT Northeast States have introduced sulfur / bioheat mandate bills/regulations: PA, MA, NY, CT, RI, VT, ME, NJ
Commercial Initiatives-PWA January 2009: Successful flight of JAL 747 having PW JT9D engines used a biofuel blend of jatropha, algae and camolina in a 50/50 mix with normal Jet-A (support from Boeing) My aim is to engineer fuel flexible engines that can run on biofuels derived from different feedstock providing that the fuel meets the required specifications Source: Alan Epstein, VP Technology & Development, PWA, World Jet Fuel Report, July 2009
Department Of Defense Goals Emissions reduction: The DOD is the world s largest single customer of diesel fuels. Saving lives: I in 6 military casualties occur delivering supplies with fuel being the most dangerous Reducing the complexity and length of supply lines: Cost of fuel delivered to the battlefield as high as $418 per gallon Bioenergy grown locally, offers an alternative supply, and reduced dependence on unreliable transportation Independent energy supply: The US military has limited capacity to wage extended wars without access to foreign oilfields unless alternative energy sources can be developed Source: Biofuels Digest, April 1, 2010
USN Biofuels Goals By 2012, the demonstration of its new, fossil-fuel independent Green Strike Group, using hybrid electric-diesel systems, nuclear power, and biofuels powering both fleet and aircraft. By 2016, Group demonstration of US military power independent of the geopolitics of oil Navy s 2020 goal: for land and sea operationscut fossil fuel usage by half Source: Biofuels Digest, April 1, 2010
First Supersonic Biofuels Flight On April 22, an F/A-18 Super Hornet from Air Test and Evaluation Squadron (VX 23) will be testing the full envelope of the Super Hornet with a drop-in replacement of biofuel in an effort to certify alternative fuels for naval aviation using 50% camelina biofuels. Source: Biofuels Digest, April 1, 2010 NAVAIR has issued an RFP for JP-5 jet fuel made from non-food biomass-pointing the RFP towards algae, jatropha and camelina.
USN / USDA In 2009, the Navy announced its goal of establishing a Great Green Fleet, consisting of energy self-sufficient facilities and ships run by nuclear and alternative fuels. Established a partnership to develop a sustainable, cost effective energy infrastructure, through development of synthetic fuels and energy efficiencies. Source: Biofuels Digest, April 1, 2010
New Paradigm in Algal Biofuels Technologies Sustainability requirements emerge Major companies developing green crude in micro refineries as petroleum substitutes Utilize synthetic biology employing microbes such as bacteria and algae to produce advanced biofuels Microbes become the mini-processor of biomass feedstock directly into fuels Arizona State University (ASU) has engineered cyanobacteria to utilize CO2 from smokestacks as the algae serves as micro-processors to secrete a fuel with very similar properties to kerosene and aviation fuel. Ref: Will Thurmond, Algae2020, CEO Emerging Markets Online
USAF / USN / DARPA Sponsoring algal fuel acquisition Two projects one led by General Atomics and the other by SAIC, have a goal of producing $3 fuel from algae. US Navy s Mid Atlantic Coast section is going to release RFP s for 30-year contracts to produce biomass and/or fuel on Navy property. Source: Biofuels Digest, April 1, 2010
Potential Connecticut Opportunities UCONN biofuels leadership Grow University Regional Consortium Develop Local Feedstock Jobs Growth Team with local Industry Increase funded research & development efforts Provide quality assurance of new biodiesel feedstock
Questions? For more information: Paul Hoar AgriFuels LLC (860) 633-9811 paulhoar@agrifuels.com www.agrifuels.com