1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA...
Transcript of 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA...
![Page 1: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/1.jpg)
SLIDE 1CONFIDENTIAL
Conservation BiomassMatt Rudolf
Advanced Bioeconomy Feedstocks ConferenceJune 8, 2016
![Page 2: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/2.jpg)
The Earth Partners LP is a land restoration company
• Portfolio of businesses and assets reflect a commitment to land restoration and economic value creation• Insect infested forest management• Invasive removal and mitigation of encroachment• Wetlands mitigation
• Investors, partners, and management team focused on building a world class bio energy • Extensive experience in a variety of crops and
commercialization technologies• Partnerships with top companies across a number of
pathways/technologies• Strong policy capability with on-going affiliations (Forest
Trends, Rocky Mountain Institute, White House)
• Integrated financing strategy • Long-term investor group, Vision Ridge, with capacity and
interest to fund catalytic projects • Sustainable Asset Fund managed by Vision Ridge
About The Earth Partners LP (TEP)
• Staff and operating assets spread across the US
• Developing sustainable business models around conservation activities, including biomass
Partner Organizations
CONFIDENTIAL
![Page 3: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/3.jpg)
Portfolio of The Earth Partners Activities
Texas Conservation Bioenergy• Rangeland brush
pellets & wood chips Louisiana RCPP“Restoring Coastal Prairie through Biofuels”
• Warm season perennial grass• establishment
Mountain Pine ManagementRapid City, South Dakota
Beetle-kill pine wood pellets
CONFIDENTIAL
Mitigation Capital1st Investment, Houston, TXWetlands Mitigation Fund
![Page 4: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/4.jpg)
What is conservation biomass?• Biomass feedstock that has land
restoration benefits and can be used in the production of bioproducts (i.e., industrial, energy, and consumer products)
• Production and harvest creates environmental benefits
– Enhanced water resources– Soil carbon– Reduced soil erosion– Improved biodiversity– Improved wildlife habitat– Reduced wildfire risks
• Also produces economic value to landowners and rural communiteis
Harvestinginvasive brush/ diseased trees
Growingperennial
native grassesBiomass
Feedstock
The production of “conservation biomass” feedstock is a pathway restore degraded landscapes at scale
Example conservation biomass models
![Page 5: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/5.jpg)
SLIDE 5CONFIDENTIAL
Regulated energy or commodity market allow for scaling 100x
Non-regulated
Heating
Animal litter
Animal bedding
Absorbents
Packaging
Soil amendment
$800
$2,000
$200
$100
$2,000
$1,000
$25,000
$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000Size of US market, $million
The target markets include existing and growing non-regulated markets, plus large-scale energy & commodities
ILLUSTRATIVE ESTIMATES
Bioenegy & chemical
$6bn market (more with add’l product conversions)
$25bn includes current US biofuel market—category would exceed $100bn with cellulosic biofuels, biopower, biochemical
![Page 6: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/6.jpg)
TEP is promoting Conservation Biomass in national policy to build this market
UK• Recognized
“biomassremovedforecologicalreasons”
• NotrequiredtomeetsustainableforestmanagementorUKTimberStandardrequirements
Netherlands• Recognized
“biomassresiduesfromlandscapeandnaturalrestoration”
• Notrequiredtomeetlandusechange/carbondebt;sustainableforestmanagement;soilqualitycriteria
United States • Strong White House
and EPA engagement around domestic co-fire and 111(d)
• California/ Washington state beginning to recognize incremental value of bioenergy and ecosystem services (i.e., conservation biomass) for LCFS and cap-and-trade
Belgium• Considering
additional incentives for power plants burning conservation biomass
• Avoids conflict with the local wood products industry
TEP is in continuing conversations with governments to recognize and provide incentives for conservation biomass categories
![Page 7: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/7.jpg)
SLIDE 7CONFIDENTIAL
TexasConservationBioenergy• Grasslandinvasionbywoodyspecies
(Mesquite,Juniper,Huisache)• Densityincreasesdueto(1)reduction
ofnaturalfires,(2)decimationofprairiedogsand(3)overgrazing
• Largenegativeimpactsonwateravailabilitybyextendinglongtaprootsandoutcompetingnativegrasses
• Objective- Managewoodyinvasivesthroughbiomassmarkets– EuropeanCo-Firing– DomesticCo-Fire(CPP?)– Othernovelopportunities
• Bedding,Roughage,etc…
![Page 8: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/8.jpg)
SLIDE 8CONFIDENTIAL
MountainPineManagement• PelletmillinRapidCity,SD
http://mountainpinemgmt.com
– WorkwithUSFStothinpinebeetleinfestedtreestoincreasestandresilience
• Movingfromenergymarketstoconsumerbrandedproducts
• Marketpartnershipstoincreaseconsumersaleschannels
Contrast betweenathinnedponderosapinestand(outlinedinred)andsurrounding highdensitystandswithinsect-inflictedmortality
![Page 9: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/9.jpg)
SLIDE 9CONFIDENTIAL
SWLouisiana- ATrueMarginalandDegradedLandOpportunity
• InFeb2016TEPwasawardeda$612,000NRCSRCPPgranttocoverestablishmentcostsofwarmseasongrassesinSWLouisiana
• Thousandsofacresidle,creatinganecosystemproblemduetoinvasivepressure• Landleaseratesat$15/acre,largetractscanbeaggregated• TEPisworkingwithFDCEnterprisesandUSDAtoestablishpolyculture,warm
seasongrasses(switchgrass,bigbluestemandforbbuffers)outsideofLakeCharles,LA
• Primarypurposeistopreventinvasiveencroachment,biomassmarketsbeingdevelopedtoexpandtheprogramandsupportalong-termpresence
![Page 10: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/10.jpg)
SLIDE 10CONFIDENTIAL
HistoricalCoastalPrairie
• Priortothelate1800s,aproximately2.5millionacresofcoastalprairieexistedinSWLouisiana
• Only~1,000acresleftintheirnaturalstate
![Page 11: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/11.jpg)
SLIDE 11CONFIDENTIAL
Aconvertedlandscape…• Coastalprairieconsistedmostlyof
grassesandadiversityofwildflowers(1,000+species).
• Overthepast100yearstheecosystemwasconvertedtoagriculture(primarilysugarcane,rice,soyandcattlegrazing).
• Regionwasunabletocompetewithglobalagriculturalmarkets,withaglandabandonmentbeginningwhenricepriceshithistoricallowsinthe80s
• Aslandusewasabandoned,largetracksoflandwereinvadedbynon-nativewoodyspecies(e.g.ChineseTallow)
• LargetracksoflandinsouthwestLAareunderutilizedduetolackofcompetitiveness,poorlandquality,andinvasivespeciesovertakingfield.
![Page 12: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/12.jpg)
SLIDE 12CONFIDENTIAL
…leadingtoChineseTallowinvasion
• Chinesetallowisanaggressive,invasivetreefromChinathathasrapidlyspreadthroughtheSEUSA.
• OnTNClistof“DirtyDozen,”mostharmfulalienplant&animalspecies
• Outcompetesnativeplantsanddestroyslocalfaunanativehabitat
• From1991to2005,ChinesetallowinvasioninLAincreasedover500%.
• Prairiegrassrestorationcoupledwitharegularmowing/harvestregimenisaneffectivestrategytoreducetallowencroachment.
![Page 13: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/13.jpg)
SLIDE 13CONFIDENTIAL
PrairieGrassEstablishmentBenefits
• PreventsfurtherencroachmentofChineseTallowandotherinvasivespecies
• Improvestheecologicalqualityoftheland,preventingerosionandbuildingsoilhealth
• Improvestheeconomicproductivityoftheland,providingnear-termimprovedgrazing,whileTEPworkstobuildhighervaluelong-termmarkets
![Page 14: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/14.jpg)
The bioeconomy’s role in climate change policyA strong bioeconomy can reduce emissions and increase soil carbon sequestration to build a national carbon sink & meet US carbon reduction goals• The US made a climate commitment in Paris to reduce carbon
emissions by 26-28%, compared to 2005 levels• The scientific consensus is that bioenergy and bioproducts are a critical
part of a CO2 mitigation strategy, assuming the right sustainability frameworks and rigorous lifecycle greenhouse gas accounting
• Land sector offsets 16 percent of all U.S. emissions (i.e., a “carbon sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing to reduce GHG emissions and increasing carbon in forests and soils by over 120 million tons/year by 2025
Land sector carbon sink offsets emissions by 16%
• The bioeconomy is one of the major levers within existing policy frameworks to incentivize land-based carbon sequestration
![Page 15: 1135 Matt Rudolph ABFC 2016 PPT - Ascension Publishing · 2016. 6. 8. · sink”) and USDA released a roadmap, Ten Building Blocks for Climate Smart Agriculture and Forestry, committing](https://reader034.fdocuments.in/reader034/viewer/2022051902/5ff165ab69e9b71bc5521ea7/html5/thumbnails/15.jpg)
SLIDE 15CONFIDENTIAL
MattRudolfBusinessDevelopmentandPartnerships
www.theearthpartners.comwww.mountainpinemgmt.commatthew.rudolf@teplp.com
+19195334886