BioEnergy : Powering Prosperity Clean Energy Dialogue A Business and Policy Forum

BioEnergy: Powering ProsperityClean Energy Dialogue

A Business and Policy Forum

Power Center for Utility Exploration (PCUE)

Increased demand for electricity


Data: Energy Information Agency

(1) What is Palm Beach County’s potential in the biofuel and biomass to energy industry?

(2) What are the current barriers or obstacles (regulatory or other) to seeing that potential realized?

(3) What steps must be taken by the private sector and by the public sector (city/county/state) to capitalize on that potential?


Three Questions

Palm Beach County perfectly positioned to be a global leader in bioenergy◦ Florida is the Saudi Arabia of biomass◦ Florida ~9% of US biomass◦ Palm Beach is second richest agriculture county in US◦ 12 month growing season

Existing skilled agriculture workforce & academic infrastructure◦ Scripps, University of Florida and Palm Beach State College◦ USDA regional offices

Attracting innovative companies:◦ Amyris (California): ranked No. 1 ‘hottest’ biofuel company in America◦ Expanding to Florida◦ Lates total revenues for the first quarter:$37.2M versus $29.7M the

prior quarter


(1) Palm Beach Potential

Permitting◦ Great need to incentivize approval process◦ Federal mandates and financial incentives

promoting biofuels, but permitting roadblock◦ Eg., Ag Oil: biodiesel facility denied “with prejudice”

Education and Understanding◦ Biofuels are cheaper and cleaner than petroleum◦ Never closed a beach or fought a war over biofuels◦ Midwest ethanol still good; invest in midwest than

middle east◦ Per captia, we are growing more corn than ever

before


(2) Current Barriers or Obstacles

Government must provide certainty to permitting process

Public – Private Partnerships mitigate risk to investors

Municipal bonds tied into Federal loan guarantees, grants, and tax incentives

Public Relations: “Branding” – Promote locally grown fuels like Florida grown agriculture

Do not tax new biofuels facilities Soft landing coordinator


(3) What can the private and public sector (city/county/state) do to capitalize on that potential?

Federal Renewable Fuel Standard (RFS2; 75 FR 14670)◦Clean Air Act Section 211(o); (40 CFR Part 80)

◦ 7.5 MGY by end of this year (2012)◦ 36 BGY by year 2022◦ ½ projected to come from advanced biofuels – cellulosic◦ EPA authorized the use of E15% for 2006 cars and

newer Florida Renewable Fuel Standard

◦ E-10 standard in place since Dec. 31,2010◦ Applies to almost all retail gas sold*Permitting: “one stop shop” and expedited for Florida

biofuels and other renewables


Government Mandates

Feedstock infrastructure: ◦ FL richest state in the nation for biomass◦ Already growing energy cane, sorghum, jatropha,

eucalyptus, camalina, canola Real Infrastructure:

◦ Kinder Morgan pipeline connecting Tampa to Orlando

◦ State-of-the-art blending facilities at FL ports Vehicles and public fueling stations

◦ ~600,000 FFVs◦ 44 E85 stations across 34 cities◦ Over 40 more 85 stations recently funded


Florida Infrastructure Since 2008

$36M Florida Clean Energy Investment Opportunity Fund

~$2M grant program for E85 retail pumps◦ Over 40 E85 stations initially deployed◦ USDA grants for retail blending stations

USDA and US DOE loan guarantees and grants State mandate: E-10 by 2010 Governor Scott pledges to eliminate the

business tax: half way there “Right to Work State” coupled with twelve

month growing season


State of Florida Incentives

Florida Crystals (FC)◦ Home to one of world’s largest biomass plant; largest in North America◦ Fuel from FC’s crops and biomass waste◦ Powers sugar operations and 60,000 homes

LS9◦ Cellulosic ethanol process in Okeechobee ◦ Using waste biomass to produce 100,000 gallons

INEOS◦ Cellulosic process in Vero◦ Using waste biomass for fuel and electricity

Genuine Biofuels◦ Biodiesel facility in Indiantown; CEO resident WPB◦ Using waste grease◦ Running up to ~6MPY

Ag Oil◦ Biodiesel crushing and blending facility planned in Palm Beach County◦ Using Jatropha: nut providing natural oil◦ County denied permit “with prejudice”


Local Projects

Solid Waste Authority of Palm Beach◦ Increased capacity from 2,500 tons per day to over 5,500 TPD by

2014◦ Doubled energy output; located off Jog road

St. Lucie County–Renewable Energy Project◦ Fuel: Municipal Solid Waste (MSW) ◦ Process: Plasma Arc Gasification ◦ Power Production: 18 MW ◦ Location: St. Lucie County

American Renewables Gainesville Renewable Energy Center–Bio-Energy Production ◦ Contract with Gainesville Regional Utilities (GRU) ◦ Fuel: Woody Biomass ◦ Process: Fluidized Bed Boilers ◦ Power Production:~100MW ◦ Location: GRU Deerhaven Generation Station


Florida BioEnergy Projects

Southeastern Renewable Fuels◦ Application filed mid-March ◦ sweet sorghum to produce 22 MGY ethanol and 30 MW electricity

INEOS New Planet Bioenergy, ◦ Recently broke ground February 2011◦ waste biomass to produce 8 (up to 50) MGY ethanol and electricity

BP Biofuels◦ Permit issued 3/22/2010; under construction ◦ (energy cane and forage sorghum to produce 40 MGY ethanol)

University of Florida Ethanol Testing Facility, ◦ 165KGY ethanol and organic acid

Coskata, Inc., and U.S. Sugar Corp., ◦ Cellulosic ethanol from bagasse; 100 MGY

US Envirofuels◦ Sugarcane to ethanol; ~40MGY and 5MW

Vision/FL, LLC, ◦ sweet sorghum to ethanol, 30 MGY and 50 MW of electricity


Six Projected Production Facilities: ~270 MGY

SmartFuels, Lake County – ◦ Permit issued 12/4/2009 ◦ waste vegetable oil to produce 2.74 MGY biodiesel

Agri-Source Fuels, LLC, Dade City, Pasco County◦ Permit issued 10/1/2009 ◦ not producing yet; animal fats and plant oils (12 - 60 MYG)

Clean Fuel Lakeland, LLC, Lakeland, Polk County,◦ Permit issued 7/18/2008 ◦ (not producing yet; vegetable oil/animal feedstock to produce

18.25 MGY biodiesel) Genuine Biofuels, Indiantown,

◦ 3MGY biodiesel (currently producing/uses waste grease)


Four Biodiesel Production Facilities


Florida Projected Electric Capacity

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

SMW 56615.55 57181.7055

57753.522555

58331.05778055

58914.368358355

5

60092.655725522

6

61294.508840033

1

62520.399016833

7

63770.806997170

4

65046.223137113

6

66347.147599856

67674.090551853

2

1% 566.1555 571.81705499999

8

577.53522554999

9

583.31057780549

8

589.14368358355

5

600.92655725522

6

612.94508840033

625.20399016833

8

637.70806997170

4

650.46223137113

8

663.47147599856

1

676.74090551853

3

5% 2830.7775

2859.085275

2887.67612775

2916.5528890275

2945.7184179177

8

3004.6327862761

3

3064.7254420016

5

3126.0199508416

9

3188.5403498585

2

3252.3111568556

9

3317.3573799928

1

3383.7045275926

6

10% 5661.555 5718.17055

5775.3522555

5833.105778055

5891.4368358355

5

6009.2655725522

6

6129.4508840033

1

6252.0399016833

7

6377.0806997170

4

6504.6223137113

8

6634.7147599856

1

6767.4090551853

2

5,000

15,000

25,000

35,000

45,000

55,000

65,000

Florida Generation Capacity - Forecasted 2010-2021

SM

W

www.facebook.com/pages/Florida-Bioenergy-

Association/

BioEnergy : Powering Prosperity Clean Energy Dialogue A Business and Policy Forum

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