Download - New Business Model Fiber, Fuel and Energy?

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Page 1: New Business Model Fiber, Fuel  and Energy?

New Business ModelFiber, Fuel and Energy?

Rob DavisForest Energy Corp

BTEC May 25, 2010

Scottsdale, AZ

Page 2: New Business Model Fiber, Fuel  and Energy?

Renewable EnergyWindSolarGeothermal

Biomass

Page 3: New Business Model Fiber, Fuel  and Energy?

What is Biomass? Any Organic material not derived from fossil fuel.

FERC PURPA ‘80-

Page 4: New Business Model Fiber, Fuel  and Energy?

And then there was politics ‘08 Farm BillRenewable Fuels BillBCAPAmerican Power ActEach State IndividuallyDictating forest or air policy w/ energy policy

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Do you have biomass?ExtraConsistent SupplyConsistent QualityCost

Biomass advantage - constant

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CharacteristicsSpeciesForms

BarkSlashHog FuelChipsPelletsBriquettes

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CharacteristicsMoistureAshAsh Fusion TempContaminantsEnergy Content - Btu

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SourceWhere does it come from?

RenewableSustainable

Will there be a Recapture of carbon?

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What can you do with it?Use itSell itProduce a productProduce an Energy product

FuelElectricityTransportation FuelsThermal Energy

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Processing

PhysicalSizeMoistureDensifying

Doesn’t change energy content, makes consistent and more economical to handle.

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ProcessingPyrolysisGasificationTorrificationHydrolysisCombustion

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ProductsEthanolHydrogenMethane CO2LigninChar

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Markets – Selling Fuel or Selling Energy?

In - House Residential Commercial Industrial Utility

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ValueIn – House Elec, Thermal, CHPResidential Thermal vs. NG, FO, Prop,

Elec Commercial Thermal vs. NG, oil,

propane, elecIndustrial Elec, Thermal vs. NG,

coal Utility Elec vs coal

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IncentivesFederal & State

Electricity RECFuelsPTCITCBCAP Moving target even after legislation passesHow will it be administered e.g. BCAP

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Emissionsgood and bad

Particulate -Nox +-Sox +Other -Carbon ?

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EfficiencyThe Prudent Use of our Resources

Perhaps a move in this direction

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Economics

Biomass Supply - acceptable quality and sourceBiomass Cost Markets near youSelect Process / ProductActual CostReliance on incentives

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Opportunity Low cost of assured biomass

supply Renewable demand Lower cost biomass energy Mandates / Incentives / Credits Future Carbon reduction incentives Consolidate resources

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Rob DavisForest Energy Corporation

Show Low, AZ928-537-1647

[email protected]

BTECBiomass Thermal Energy Council

1211 Connecticut Ave NW, Suite 600 Washington, DC 20036-2701

202-596-3974 tel • 202-223-5537 fax • www.biomassthermal.org