Biofuel Projects in the Northwest An Overview

Nikola Davidson

October 2, 2008

Who We Represent

NW biodiesel and ethanol businesses

Idaho, Montana, Oregon, and Washington

What We Do

Promote the growth of NW biofuels

Serve as the voice of the industry

Building Successful Biofuel Projects in the Northwest

Biodiesel and Ethanol

• What’s unique about the Northwest

• Models that work

• Challenges

• Opportunities

• What’s needed

• Future trends

Northwest Biofuels

Biodiesel

Vegetable or fruit oil

Animal fat

Ethanol

Starch/sugar

Cellulosic

What’s Unique About the Northwest

Support for NW Biofuels– Uniting political and geographical divides– Research

• Labs (PNNL, Batelle, BESL)• Universities (UofI, WSU, Sun Grant, MSU)

– Strong investment in green/clean industry– History of innovation– Consumer use– Policy/tax incentives

• City and state

Successful NW Biofuel Models• Small, distributed biorefineries – scaled to

feedstock

• Multiple feedstocks using flexible technology

• Vertical integration (control of feedstocks)

• Feedstocks with co-products

• Rotation crops that use marginal land, low inputs

• Flexible technology

• Maximize waste streams

• Strategic co-locations

• Valuable processor co-products

What’s Unique About the Northwest

Feedstocks

What we don’t have

What we do have

Competing with high value crops

Biorefineries

Scale

Technology

Challenges• Feedstock

– Availability

– Price

– Collection

• Sustainability Concerns– Public support

– Policy implications

• Policy Mixed Messages

Cellulosic Ethanol

• Challenges– Technology– Cost– Expensive, volatile

biomass– Distributed feedstock– Transportation costs– Economy of scale

Cellulosic Ethanol

Biofuel Project OpportunitiesBiodiesel

FeedstocksOilseeds (camelina)Algae

Maximize waste streamsUsed cooking oilIndustrial oilTrap greaseTallowGlycerin

Alternative land – airports, highways

Strategic co-locations

Biofuel Project OpportunitiesEthanol

Feedstocks– Other starch-based

• New feedstocks - Russian dandelion, sweet sorghum

• Waste streams – culled potatoes, distressed wheat, blueberry water

– Cellulosic• Switchgrass, hybrid poplars• Forest thinnings• Municipal solid waste• Building on current plants• Pulp and paper mills• Improvements in

harvesting/collecting

Strategic co-locations

Alternative lands

Cellulosic Ethanol

Cellulosic Ethanol

Opportunities - Carbon and Biofuels

• Low Carbon Fuel Standard– Technology neutral– Rewards fuels with

lowest carbon footprint– Metrics to get there –

“brutal”– Watch California

• Carbon credit market

What’s Needed For a Robust Local Industry

• Coordinated state policy– Renewable fuel standard/mandate– Tax credits– Funding for infrastructure (including retail)– Expedited permitting– Incentives for local feedstock production– Mandatory fleet use

• Research in coordination with industry

• Partnership between agricultural community and industry

• Capitalize on capturing carbon credits

Future Trends

• Next generation feedstocks

• Competing technologies

Biofuel Projects in the Northwest

An Overview

Nikola Davidson

206.389.8660

nikola@nwbiofuels.org

www.nwbiofuels.org