Purpose-Grown Trees as a Sustainable Renewable Energy Source€¦ · Renewable Energy. Advantages...
Transcript of Purpose-Grown Trees as a Sustainable Renewable Energy Source€¦ · Renewable Energy. Advantages...
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MORE WOOD. LESS LAND. ™
Purpose-Grown Trees as a Sustainable Renewable Energy SourceShort Rotation Crops International ConferenceMichael CunninghamArborGen, LLC
ArborGen Confidential
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ArborGen Confidential 2
Agenda
Opportunities for
Renewable Energy
The Advantages
of Trees
Current and Future
Opportunities
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ArborGen Confidential 3
Several Drivers are Pushing Bioenergy
• Cost• Energy Independence and Security• Rural Development• Environmental Sustainability
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 4
Biomass Feedstock Consumption
Biomass ConsumptionForest products industry
Wood residues 44Pulping liquors 52
Urban wood and food & other process residues 35Fuelwood (residential/commercial & electric utilities) 35Biofuels 18Bioproducts 6
Total 190
Million dry tons/yearBiomass ConsumptionForest products industry
Wood residues 44Pulping liquors 52
Urban wood and food & other process residues 35Fuelwood (residential/commercial & electric utilities) 35Biofuels 18Bioproducts 6
Total 190
Million dry tons/year
Biomass, 47%Biomass, 47%
Hydroelectric, 45%Hydroelectric, 45%
Geothermal, 5%Geothermal, 5%Wind, 2%Wind, 2%Solar, 1%Solar, 1%
Natural Gas24%
Coal23%
Petroleum39%
Nuclear8%
Renewable Energy
6%
Natural Gas24%
Coal23%
Petroleum39%
Nuclear8%
Renewable Energy
6%
Source: EIA 2004
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 5
• The 2007 Renewable Fuels Standard mandates new sources
New Sources of Feedstock are Needed
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Source: 2007 Renewable Fuels Standard from Energy Independence and Security Act of 2007#Advanced biofuels includes “cellulosic biofuels” category
Corn-based Ethanol
Cellulosic Ethanol
2007 Renewable Fuels Standard
0
5101520
25
303540
2008 2010 2012 2014 2016 2018 2020 2022Eth
anol
Vol
ume
(Bill
ion
Gal
lons
)
Conventional Advanced*
Therefore, renewable sources of cellulosic feedstock must be identified in order for the Renewable Fuels Standard to be met.
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 6
Agenda
Opportunities for
Renewable Energy
The Advantages
of Trees
Current and Future
Opportunities
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ArborGen Confidential 7
• Multi-Purpose• High Biomass Quality
Trees Have Substantial System Benefits
Delivered Cost
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• High Productivity Potential (Tons/Acre)
FeedstockProduction
• Year-Round Harvest• Transport• Storage
Logistics
Processing
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 8
Feedstock Needs are Possible with Trees
*Different conversion processes may have different quality definitions#Assumes 80-100 gallons of EtOH/dry ton of biomass
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High Productivity10-15+ dry
tons/acre/yr800-1,500+
gal/acre/year#
Feedstock Requirements
FeedstockProduction
Logistics
Processing
Short Rotation
5-7 years or less
Cost Efficient
$35-50/dry ton
High Quality*
Consistent optimized
composition
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 9
Acres Needed to Produce 100MM Gallons of EtOH Annually
0
2040
6080
100120
140
Trees Annually Harvested Crop
Acr
es X
1,0
00
Total Annual
Deployment More Feasible with Trees
Sources: ArborGen Estimates; Biomass 2 (1982) 75-79Biorefinery
FeedstockProduction
Logistics
Processing
20 Miles 40 Miles80 1,250,000 10 6 125,000 20,833 28% 4%100 1,000,000 15 4 66,667 16,667 15% 2%
Rotation Length (years)
Gallons EtOH/Dry Ton of Biomass
Area Needed to Produce 100MM Gallons of EtOH AnnuallyMAI (dry
tons/acre/ year)
Total Acres
Needed
Acres Planted
Annually
% of Area in RadiusBiomass Needed (dry tons/year)
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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Infrastructure is More Feasible and Efficient
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Forest-based feedstocks offer a 15xreduction in transportation infrastructure
15X
ArborGen Confidential
Peak Monthly Logistical Considerations
Logistics
Feedstock Production
Processing
Annually-Harvested Feedstock Trees
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 11
Trees Provide Landowner Flexibility
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Forest Products/
Pulp & Paper
Purpose- Grown Trees
Different wood quality
characteristics for various conversion
technologiesProcessing
Feedstock Production
Logistics
Cellulosic Ethanol
Direct Firing/ Co-
Firing
Gasification/ Pyrolysis
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 12
Agenda
Opportunities for
Renewable Energy
The Advantages
of Trees
Current and Future
Opportunities
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ArborGen Confidential 13
Global Leader in Tree Improvement
• World’s largest producer of trees for planting.
Production, sales and distribution 300+ million annual tree stock salesExtensive customer basePipeline of world-class elite germplasm
• Today our business spans 20 locations in four countries and includes more than 300 employees
Summerville, SC – Global HQ
Campinas, SP, BR– S. America HQ
Whakatane, NZ – Australasia HQ
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 14
Industry Leading Genetic Resources
• Largest owner of Germplasm in forest industry
1st, 2nd, and 3rd generation open-pollinated seedlingsElite familiesMCP crossesVarietal seedlings
a) First large scale production in 2007b) Scale-up to millions is ongoing
Union Camp
Champion
International Paper MeadWestvaco
Federal
Hammermill
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 15
ArborGen Opportunities Related to Energy
BioEnergy Science Center
DOE-Biofuels
ScionAdvanced
Biomaterials and Wood
Quality
Wood-to- Ethanol
ResearchNCSU – Pulp
Mill Re- Purposing
Eucalyptus Genome
Next Generation
TraitsInternal DevelopmentLignin ReductionStress Tolerance
Faster GrowthWood Quality
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 16
Technology Can Create Significant Value for Landowners
Seedlings• Elite Pine & Hardwood Material• Mass-Control Pollinated (MCP) Seed for Improved Performance
Time and Product Testing
Valu
e
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Varieties• Genetic Uniformity• Increased Productivity• Improved Product Mix•Management Efficiency
Value-Enhanced Traits• Increased Growth Rates• Shorter Rotations• Improved Wood Quality• Breakthrough Applications
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 17
Eucalyptus An Ideal Fiber and Energy Crop
• One of the world’s fastest growing tree species• Improved through extensive breeding• Extensive field-testing is building experience in the Southeast• Growth rates are comparable to those in Brazil
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8 Months 18 Months
3.5-4.5 ft/month
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 18
Freeze-Tolerance Achieved
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• Unable to withstand temperatures in Southeast USA … until now!
Field results from first product indicate freezing tolerance to ~16°F (- 8° to - 9°C)
Control Biotech Tree
Lead Lines + Control
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 19
Gro
wth
Rat
e
Dry
Ton
s/A
cre/
Yr
Rotation Length
3
Populus (Aspen)
20 yrs10 yrs 30 yrs
9
6
15
12
Loblolly Pine
Growth Rates Vary by Species
Eucalyptus
5 yrs
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 20
Faster Growing Hardwoods and Pine are a Reality
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• Multiple approaches• Multiple species
Pine
> 100% Volume
GainControl
Improved
Control
Improved
Hardwood
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 21
Gro
wth
Rat
e
Dry
Ton
s/A
cre/
Yr
Rotation Length
3
Populus (Aspen)
20 yrs10 yrs 30 yrs
9
6
15
12
Loblolly Pine
ArborGen Can Increase Growth and Shorten Rotations
Eucalyptus
5 yrs
ArborGen Varietals
ArborGen SR Loblolly
ArborGen SR Populus
ArborGen SR Eucalyptus
MORE WOOD. LESS LAND. ™
Opportunities for Renewable Energy Advantages of Trees Current and Future
Opportunities
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ArborGen Confidential 22
Summary
• Trees have numerous feedstock advantagesProductivity potential equivalent to alternativesLogistical benefits from year-round harvestMulti-purpose
• ArborGen technology can revolutionize productivity potential
Increased yieldsShorter rotationsIncreased environmental adaptabilityHigher quality wood
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