American Chemcial Society Presentation - September 11, 2013
1. Integrated Energy
Parks as a Model for
Rural Economic
Development and
Energy
Diversification in
the Appalachian
Coalfields
Roger Ford, CEO
Patriot Bioenergy Corporation
2. The Problem
• Rural communities have been negatively impacted by declining coal
production; Lowest coal industry employment level since 1950
• Failure to properly prepare for declining mining industrial activity by local
leaders, relying on the next ‘coal boom’
• Lack of governmental policy development that focuses on rural regions to
spur investment, R&D, and commercialization of biomass technologies
• Dependence on monolithic economy has led to outmigration, brain-drain,
and a collapsing economy
• 89% of post-mining land is NOT developed (NRDC)
3. The Potential:
Integrated Development
• Our model is based on idea that integrates
various, available resources within Central
Appalachia
• Our upcoming report on potential for industrial
hemp production on post-mining land will
examine potential to off-set coal-related job
losses, economic stagnation in rural economies,
and industrial hemp compares as a feedstock
for bio-chemical and bio-energy production.
4. Identified Sites
• We have identified nearly 75 preliminary sites in
West Virginia and Kentucky that represent a
separate site for an Integrated Energy Park™
• The sites would provide sufficient acreage for
biomass production, solar arrays, and modular
systems to process biomass for power
generation, alternative fuel production, and other
industrial/agriculture processes
5. Integrated Energy Parks™
• Integrated Energy Parks™ provide a closed-loop model that
targets energy production to aid in the complimentary
operations which use industrial hemp (or similar feedstock)
for value-added products. Hemp is the preferred biomass
feedstock based on renewable solar energy, and fossil fuels.
• The model allows for continual duplication
• Both NATO and DoD have examined Smart-Grid/Micro-Grid
deployment for base security
• Civilian application works similar objectives that provides for
1) distributive generation and 2) stable energy supply for
other manufacturing activities
9. Viability of Hybrid Energy Beets
•
The US Congress, under the Energy Independence and Security Act, has established a mandate for 36
Billion GPY from Alternative Energy Sources by 2022.
– Corn EtOH Expected Peak Is 15 Billion GPY in 2015
– Beets do not require tax credits or incentives to be economically feasible.
– BCAP (Biomass Crop Assistance Program) eligible.
•
EPA recognizes sugar beet as an “ADVANCED BIO-FUEL after recognizing -- based on scientific studies -that it reduces the emission of greenhouse gases by over 60% (corn ~-30% - RFA) when compared to
gasoline.
•
Corn/Grain is not a good EtOH crop for many of the southern regions.
•
Coastal regions – high population areas – of the US and CAN have very few corn ethanol plants.
•
Gen 2.0 - Beets (like sugar cane) qualify as 2nd generation biofuels including cellulosic ethanol.
•
Ethanol from cellulosic materials like switch grass and wood products cost 3x more than ethanol from
sugar products. This is an increase in production/operations costs, making them presently cost
prohibitive.
10. Why Energy Beets?
• Advanced and Cellulosic Biofuel classification – Beets are not food
product until fully processed.
• Plant breeding programs already include genetic engineering
• Provide greater environmental values in the production of
alternative fuels. (Nitrogen scavenger, reduces salts & excess H20,
others)
• ~Double the yield of ethanol / acre compared to corn grain. (26-30
gal/ton and 800-1500 gal/a)
• Unlike Corn and sorghum, energy beets produce higher sugar
content with minimal nitrogen, a key contributor to GHG
• Shortened fermenting process timeline
• High value bi-products – livestock feed with similar total feed value
as corn.
11. Why Energy Beets? (Continued)
• No need for Pilot or Demonstration plants – we’ve been processing
beets for sugar for 100 years and, making Alcohol from sugar for
100 years
• Focus on Farmer/Rural economy - creates new high value crop
option for local farmers and communities.
• Offers opportunity for double cropping – beets can be a fall planted
winter crop.
• Beets can be stored, in addition to flexible harvest options.
• Sustainable crop with tremendous flexibility to growing
environment
• Increase rural prosperity with the addition of another added value
crop – JOBS!
• “Sugar is the new Crude”
12. Available Marginal Farmland
Produce 11.9 MTY to 14.6 MTY of Production per Year
Cropland
Harvested
Pastured
Other
Woodland
Rangeland
CRP
Total
West
2,899,629
734,671
493,870
1,101,705
471,144
348,264
6,049,284
Central
1,848,973
1,600,940
281,417
1,357,147
967,817
49,987
6,106,281
East
230,380
241,339
76,741
652,758
174,718
5,471
1,381,410
Total
4,978,983
2,576,950
852,031
3,111,610
1,613,678
403,724
13,536,975
Source: http://www.nass.usda.gov/Census/Create_Census_US.jsp
13. The Hemp Solution
• Industrial Hemp/Cellulosic Feedstock
– Cheaper to produce because inputs are reduced
• No pesticides
• Better yield per acre: cash value provides 5:1 in comparison to
tobacco
• Durable: Little Water, Able to Grow on Very Marginal Land
– Process Hemp:
• Bio-Plastics
• Bio-Fuels: Cellulosic Ethanol/Bio-Diesel
• Bio-Chemical Streams
– Sugar Streams & Conversion for Bio-Pharmaceuticals
– Carbon Sequestration/Soil Conditioning
– Blending with coal to reduce emissions
14. Canadian Model
• All commercial industrial hemp crops are planted using
only certified seed from varieties listed in Health
Canada's list of approved cultivars.
• Seed saving and the use of common seed are currently
not allowed under the regulation.
• Canadian plant breeding programs have developed a
number of high yielding cultivars that are suitable to a
wide range of growing conditions.
• The most common varieties that are presently being
contracted and grown in Canada are Alyssa, Anka, CRS1, CFX-1, CFX-2, Delores and Finola.
15. Positive First Steps in Canada
• As with many new crops, there has been considerable
fluctuation in hemp production area.
• In 1998, about 241 licenses were issued.
• In 1999, the number of applications to grow hemp
jumped dramatically to 545 with the area of hemp
production increasing six-fold to nearly 35,086 acres
(14,205 hectares). Much of this production was driven
by the promise of the development of large scale
industrial fiber plants in Manitoba.
16. Yields Per Acre Hemp
• The highest seed yield recorded to date in Canada has
topped 2,000 lbs per acre; an average yield is between 600
to 800 lbs per acre. (Canadian Hemp Trade Alliance).
• An acre will also produce an average of 5,300 lbs of straw,
which can be transformed into about 1,300 lbs of fiber.
• Hemp grain yields range from 100 to 1,200 lbs per acre
while yield for crops grown and managed solely as fiber
crops, range from 1 to 6 tons per acre (Manitoba
Agriculture, Food and Rural Initiatives online report).
17. Coal-Hemp Blending
• Our report focuses on the effects of blending industrial
hemp material with lower quality coal in a ratio to
reduce emissions while maintain Btu for direct
combustion
“The opportunities for biomass co-firing are great
because large scale coal-powered boilers represent 310
GW of generating capacity. Co-firing biomass with coal
offers several environmental benefits.”
NREL Fact Sheet on Biomass Co-Firing
22. Virginia Hybrid Energy Center
• The Virginia City Hybrid
Energy Center generates
585 MW from co-firing
lower quality coal and
biomass.
• The low costs, versatility,
high per-acre yield and
potential to be grown on
post-mining land makes
industrial
hemp
an
attractive
option
for
blending with Appalachian
coal at the source.
23. Renewable Solar Helps Coal
• Virtual rooftop aggregation of solar on
undeveloped land
– Economies of scale
– Cost per watt falling at an exponential rate
• Company IP regarding the algorithms coupling
generation from natural gas and solar make us
an first-adopter
• Enable transition as mining is completed
• Defined post-mining land use will enable fasttrack release of bond permits funds
24. Emergent Utility-Scale Solar
• From 2010 to 2011 the average size of a
distributed PV installation, i.e. residential and
commercial-scale PV systems, grew by 46 percent
to 18 kW, and the average size of a utility-scale PV
installation increased by 250 percent to 4.62 MW
• The rise of utility-scale solar projects — defined
here as systems 1 MW+ in capacity — began with
an increase from almost 0 percent to 15 percent
of all grid installed PV capacity in 2009, then to 32
percent in 2010, and then to 38 percent in 2011
http://www.renewableenergyworld.com/rea/blog/post/2013/08/uti
lity-scale-solar-and-the-probable-rise-of-virtual-rooftop-solar
25. Report & Project Goals
• Identify best path forward for deployment
• Power generation through integration of fossil
fuels, solar, and biomass
• Produce transportation fuel, bio-chemical
feedstock or bio-plastics through modular
facilities from feedstock within 60-70 mile radius
of facilities
• Monetize byproducts to increase profitability
• Monetize Carbon Credits and Provide
Sequestration Opportunities
26. Contact Info
237 2nd Street, Suite 5
Pikeville, Kentucky 41501
www.patriotbioenergy.com
