Papernol Technical, Economic and Environmental aspects of converting waste paper into Ethanol

February 26, 2008

Outline Ethanol facts Ethanol sources Comparison to Papernol Papernol process

Hydrolysis Fermentation Purification

Full scale outlook

Fossil Fuel Burden

Fossil Fuel BurdenU.S. Average Annual Gasoline Price 1973-2007

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

Year

$/g

allo

n

Source: US DOE, Energy Information Admin.

U.S.NigeriaLibyaRussiaVenezuelaU.A.E.KuwaitIraqIranCanadaSaudi Arabia

2%2%

3%5%

6%8%8%

9%10%

14%21%

Rate of Use

FranceS. KoreaBrazilCanadaIndiaRussiaGermanyChina

U.S.Japan

Mexico

0% 10% 15% 20%5% 25%

Oil Reserves

Updated July 2005. Source: International Energy Annual 2003 (EIA), Tables 1.2 and 8.1-O&GJ. Canada’s reserves include tar sands.

The United States uses more oil than the next five highest-consuming nations combined.3%

3%3%3%3%3%3%

7%

25%7%

3%

U.S. Dependence on Foreign OilU.S. Dependence on Foreign Oil

Fossil Fuel

Comes From Politically Unstable Parts of the World

Weakening Pressure on the Dollar High CO2 Emissions Fixed Availability

50 -100 years of supply left

Acres to Replace Gasoline

Farmland Available vs. Farmland Required

310 330

580

0

100

200

300

400

500

600

700

1

Mill

ion

Acre

s

Irrigable Land

Switchgrass

Corn grain

U.S. Ethanol ProductionU.S. Ethanol ProductionRFA, 4/3/07

Currently: 6.5 bgy capacity at 124 biorefineries (purple dots)

Near Future: Additional 6.4 bgy capacity at 76 biorefineries under construction and 7 under expansion (yellow)

TOTAL: More than 12.8 bgy capacity

Source: Renewable Fuels Association, 8/1/07

FAR

FARTHER

VERY FAR

U.S. Ethanol ProductionU.S. Ethanol ProductionRFA, 4/3/07

Currently: 6.5 bgy capacity at 124 biorefineries (purple dots)

Near Future: Additional 6.4 bgy capacity at 76 biorefineries under construction and 7 under expansion (yellow)

TOTAL: More than 12.8 bgy capacity

Source: Renewable Fuels Association, 8/1/07

Increase in the Price of Corn

Bio-Fuel Draw Backs:Dead Zone in Gulf of Mexico

Starving the Poor

http://www.msnbc.msn.com/

id/22902512/

They Have What We Don’t

Paper Corn SwitchgrassLand x x

Fertilizer x xTilling x x

Harvesting x xTransportation x xEnergy Input x x xProcessing x x x

Requirements for Each Source of Ethanol

Papernol over Ethanol/ Gas

No Transportation or Farm land Lower Energy cost Lower Dollar Cost

Takes Advantage of Waste Local: No Foreign Out Sourcing Improves Local Economy Fills in Gaps in Bio-Ethanol Map

Papernol

Preparation andHydrolysis

Fermentation Purification

Three Steps to Papernol

Acid Hydrolysis Dilute acid to generate glucose from

cellulose Fermentation

Converting Glucose into Ethanol Distillation

Separating Ethanol from water

Stages of Project DevelopmentLabConcept ProofMedium

Small DemonstrationPilot

Integrated Processing

Orange GroveFull Unit

Lab Scale – Proof of ConceptCurrently in process at UTCAvailable budget: $500Restricted Testing

Medium Scale: 2008-2009Small DemonstrationBudget needed: $150,000Tested using UTC ENGR labs

Pilot Scale: 2009-2010

Integrated ProcessingUtilize TVA/UTC Chickamauga siteEstimated budget needed: $1,000,000

Orange Grove: 2010-2011

Full Unit – Skid MountedModularEstimated budget needed: $3,000,000

Parallel Development

Analysis of Development of: Process Equipment Materials Economics

Energy Equivalent Prices of Gas

Equivalent $/gallon gas (1.6:1)

$1.59$2.05

$4.70

$2.60

$3.35

$7.69

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

Corn EtOH (nosub)

Switchgrass Corn EtOH

Fuels

Dollar CostEtOH $/gallon

Gas $/gallon

Visioning the Energy FutureVisioning the Energy Future

25x’25 By 2025, America’s farms, ranches and forests will

provide 25% of the total energy consumed in the U.S.while continuing to produce safe, abundant and affordable food, feed and fiber

20 in 10 Goal in President’s 2007 State of the Union Address to replace

20% of our transportation fuels with renewable sources by 2017

30 by ’30 DOE’s 2002 “Vision”: goal of replacing 30% of our energy use

with renewable sources in 30 years 36 bgy RFS by 2022

New legislation proposed to increase the RFS from 7.5 bgy in 2012 to 36 bgy in 10 more years, 21 bgy from advanced ethanol sources

Economic Outlook

Economic Outlook

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$/gall

on

Source: US DOE, Energy Information Admin.

10 Year Price History of Ethanol

Thank You For Having us !

What Would the Chattanooga Energy Hub Want From Papernol ?