Renewable Power from Poultry Renewable Power from Poultry LitterLitter

PresentationPresentation

by Eric Jenkinsby Eric JenkinsVP Commercial Development, Fibrowatt LLCVP Commercial Development, Fibrowatt LLC

February 2007February 2007

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OutlineOutline

1. What we do

2. How we do it

3. How to structure projects

4. Why it is worth doing

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1.1.

Fibrowatt has Fibrowatt has commissioned commissioned America’s firstAmerica’s first

Poultry Litter Fuelled Poultry Litter Fuelled Power PlantPower Plant

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The 55MW Fibrominn The 55MW Fibrominn PlantPlant

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Commissioning began in May 2007

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Poultry Litter Fueled Power PlantsPoultry Litter Fueled Power Plants

• Generating renewable electricity from poultry litter

• Well proven technology (14 year operating record in the UK)

• Carbon neutral

• Improves and protects water resources

• Improves sustainability and biosecurity for poultry farmers

• Recovering value from the nutrients by selling the ash fertilizer

Biomass power has an important place in rural communities

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Who is Fibrowatt?Who is Fibrowatt?

• Fibrowatt LLC, based in PA

• The founders built the world’s first three poultry litter fuelled power plants in the UK

• Fibrowatt’s Minnesota plant is currently being commissioned

– A 55 megawatt, 700,000 ton/year turkey litter plant– The first in the US– Development work began 1999– Financed with $202m of investment grade rated debt in December 2004– Commercial Operations will commence in August 2007

50MW Projects under development in North Carolina, Arkansas, Mississippi and Maryland

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2.2.

How Power From Poultry How Power From Poultry Litter WorksLitter Works

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Poultry HousesPoultry Houses

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Covered ConveyorCovered Conveyor

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Loading the TruckLoading the Truck

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Tarpaulin CoverTarpaulin Cover

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Truck on ScalesTruck on Scales

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Fuel DeliveryFuel Delivery

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Trucks UnloadingTrucks Unloading

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Thetford Fuel HallThetford Fuel Hall

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TruckTruckCleaningCleaning

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How it WorksHow it Works

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Inside Inside the the

BoilerBoiler

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3.3.

How to Jump-Start How to Jump-Start ProjectsProjects

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How Long Does It Take?How Long Does It Take?

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1. Development phase2 - 4 years

2. Construction phase2 – 3 years

TOTAL 4 – 7 YEARS

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What Does It Cost?What Does It Cost?

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1. Development phase: $3-10M

2. Construction phase: $150-200M

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What are the key requirements?What are the key requirements?

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1. Fuel – adequate fuel already available

2. Sites – multiple sites already offered

3. Electricity contracts – federal incentives needed

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Facilitating the ProjectsFacilitating the Projects

• 1.9 ¢/kWh Production Tax Credit (§45)– To level the playing field

– Poultry Litter should get the same incentives as Wind

• Placed-in-Service Deadline needs to be 7-10 years out– Our plants take 2-4 years to develop, design, permit & finance

– Construction takes at least a further 2½ years

• Option to select 30% Investment Tax Credit– Same incentive as Solar Power

• Ability to utilize tax-exempt bonds

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4.4.

Why it is worth doing Why it is worth doing

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Multiple Benefits of our PlantsMultiple Benefits of our Plants

• Renewable Energy– Producing green, carbon-neutral power from domestic resources

– 750MW of identifiable projects

• Pollution Reduction– Reducing groundwater contamination from excess animal waste

• Agricultural Sustainability– Rural economic development

– Enabling the poultry industry to maintain sustainable growth

– Enhancing bio-security for poultry farmers

– Supporting the Family Farmer

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Challenge & OpportunityChallenge & Opportunity

• Renewable Power from Poultry Litter is (currently) more expensive than Coal

• There is significant potential– The poultry industry is concentrated in Southern States, which have little wind resource

• A viable renewable energy option for Southern States28

Projects Currently Planned

North Carolina 3 plants 155MW

Arkansas 2 plants 110MW

Georgia 2 plants 110MW

Alabama 2 plants 105MW

Mississippi 1 plant 55MW

Maryland 1 plant 45MW

Other States 4 plants 160MW

Total 15 plants 750MW

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NUTRIENTS

CARBON (CO2)

Flue Gases

Ash

ELECTRICITY

EN

ER

GY

BIOMASSBEDDING

& FEED

MANURE

The Carbon CycleThe Carbon Cycle