Conference Summary (by Mr. Owen)
Alternative Energy Solutions
From Alabama's Natural Resources
A Summary of the Conference
Held at Auburn University
October 23-24, 2006
By
Carlton N. Owen
The Environmental Edge, LLC
In Dr. Richardson's opening remarks he reminded us of the importance of building
responses that cut across disciplines and build/strengthen partnerships.
He noted that sound stewardship of the initial $3 million investment is critical
to getting additional funding support - especially when appealing to the legislative
delegation.
Among the drivers for the initiative he noted the importance of:
- Helping the public acknowledge the need and prepare to make sacrificial change
- The power to drive economic development - especially in rural areas;
- The potential to reduce operating costs for business - especially small business;
- The potential to turn waste into raw materials;
- The power of spin-offs; and
- All done compatibly with a land grant institution's responsibilities and mission.
Dr. Gale Buchanan pointed to the power of extending the reach of agriculture
and forestry from food and fiber to FOOD, FIBER & FUEL.
In painting a picture of changing players in global energy consumption and the
impacts on prices, quality of life and sustainability, he reminded us that while
the time for change is now ... we still have time ... since we won't run out of fossil
fuels in the near-term.
In what might be called "the Nike approach," he said, even if near-term prices
of oil on world markets dips below $40/barrel "we must make a decision to do something now."
In this venture, Auburn and Alabama are not alone - most states are setting an
agenda to engage in renewable energy. Yet, Dr. Buchanan didn't see this as duplication;
rather, as part of the way to ensure that we find ways to optimize the use of
biomass close to where it is grown.
Buchanan concluded that EVERYBODY WINS when we go from non-renewable to renewable
energy generation.
Dr. Cugini of NETL provided an overview of several decades of work to take coal
to liquids to take advantage of the more than 250 year supply of U.S. coal. We
learned that the type of coal - whether high- or low-sulfur - has little to do
with yield in liquefaction systems. However, the very high and centralized cost
of development -- $2-4 billion/plant - is dependent upon oil staying in the $50
and above range. Globally, the South Africans have already commercialized the
technology.
He noted that there are perhaps big environmental gains from infusing biomass
into the process to reduce CO2 and that current handling systems could potentially gain from technology common
to the pulp and paper industry.
Ernie Shae shared an exciting vision emerging from bi-partisan leadership in
DC to set a bold goal of providing 25% of the nation's energy needs from renewable
sources by 2025. This huge increase is from a current base of 6%.
Rather than exporting $1 billion/day to OPEC nation's the Energy Futures Coalition
envisions the potential to put farms, ranches and forests at the center of a plan
that - for the south wouldn't be built on solar or wind energy - rather, would
extend Gale Buchanan's food, fiber and fuel concept to food, feed, fiber and fuel.
25 by '25 seems to be founded on strong public support with more than 98% of
those polled saying the initiative is "totally important."
David Bransby in introducing Senator Sessions noted Auburn's strengths in alternative
energy as:
- A long history in the area - with more than 20 years study in switchgrass alone;
- Strong academic programs in the field; and
- A wide array of existing public/private partnerships.
In looking at potential areas of focus, Bransby noted that:
- In the near-term, wood and boiler litter hold promise; and
- In the longer-term, swithgrass and other alternatives come into view.
He noted that, in his view, the approach should be on "systems" not "components"
with perhaps both "small" and "large" bio-refineries as the vehicles.
Senator Sessions urged us to look at the hunt for alternative energy like the
push to put a man on the moon not just for research but for gains to national
security, jobs/rural development and the environment.
He reminded us in that meeting a demand that will grow by 40% just by 2025 there
aren't any silver bullets; rather, lots of solutions.
Recognizing that corn-based ethanol is a mature and perhaps peaking technology,
the Senator looked to the potential of cellulosic conversion to hold a big part
of our hope. And, in a state that is heavily forested and where the forest products
industry is a leader, he urged linking with the forestry sector in seeking solutions.
He noted that leaders as divergent as President Bush and Richard Branson have
noted the need to focus on cellulose. Branson has even committed $3 billion of
his profits over the next ten years to the cause.
In one more tip of the hat to the importance of Auburn - not just in the research
arena - but also in the educational area, he noted the growing need for an educated
workforce that, if not addressed, threatens progress in alternative fuels.
In one last rejoinder, the Senator reminded us of the humanitarian under girding
of the move to alternative energy as life spans double in areas with ready access
to electricity which can support basic water, food and health care gains.
The "real" PROGRESSIVE FARMER - a great face/image for all of America's farmers
-- Annie Dees - shared her experience with conversion to biodiesel along with
gains in power, mileage and reduced maintenance. Her only complaint -- the difficulty
in obtaining fuel locally.
If you missed it, while she said she'd grow/produce anything that was profitable
and sustainable she drew the line on anything that would deplete her soils.
I'd say, Mrs. Dees understands the real foundation of her wealth.
If Rudy Giuliani. is America's mayor, Tony Petelos is clearly Alabama's mayor.
From his inspiring story of a growing community we learned of the value of having
fueling options. Hoover's decision to go flex fuel for its police fleet of more
than 100 vehicles paid immediate benefits when Katrina cut the supply of gasoline.
With reasons for the change that range from the patriotic - "we want to be independent
of OPEC" - to aiding in local development in an air quality non-attainment area;
ethanol led to fewer oil changes; fewer maintenance problems, strong support from
the vehicle drivers and an outstanding public image for a small city.
A small but important experiment with ethanol in cars has them thinking about
other potentials such as diversion of the city's tree waste to potential energy
production.
In looking at the range of university research and experience in alternative
energy, Dr. Moriarity noted that the university's strategy includes:
- Developing an interdisciplinary approach;
- Diversify funding sources:
- Establishing partnerships; and
- Addressing real problems
Research has included biomass feedstocks, ag feedstocks, poultry litter as well
as looks at distributed systems and biorefineries.
At the University of Alabama, the focus appears to be distinctive from that at
Auburn in its approach to fuel efficiency, fuel cells, and emissions technology
with an emphasis on fuels for cars and fuels for homes.
Dr. Veres of AUM reviewed his university's linkages with a range of state agencies.
Too, he noted the importance of education in addressing the gap in public understanding
about the importance and need for alternative fuels.
In case we aren't aware of the macro economics of energy, Dr. Veres reminded
us of the link between spikes in oil prices and every economic recession in the
past 30 years.
Liam Lightly of Mississippi State and SAUBR spoke of the rapid emergence of a
growing alliance linking the southern states on utilization on biomass resources.
While most southern states have no commitment to renewable energy in the power
production portfolio, rural development through energy and chemicals provides
a vision for sustainable development.
Ryan Adolphson reports that the University of Georgia, operating in a state that
imports 98% of its energy, is aggressively working to develop fuels including
ethanol from biochemical systems; biodiesel from peanuts; and a pilot biorefinery.
Too, they are partnering to produce hydrogen.
In one-liners that would do that other Georgina, Jeff Foxworthy, proud, he noted
that while we can lead a man to congress we can't make him think. And, that
we should send money to mid-west farmer; not mid-east terrorists.
What about a new slogan for the south? - stick it to a mid-east terrorist; buy a gallon of shine from a southern forester,
farmer or rancher.
Dr. Ork from Alabama A & M reminded us that we sit just 33 years and a few
days past the first real warning of a new world order -- the first OPEC embargo.
That warning shot has led to all-too-little change. Yet, she noted that canola
and other oil seeds may hold a double cropping opportunity to make a dent in local
production while providing another value crop for Alabama farmers.
BIOMASS PANEL
In our biomass panel we learned that while there is a long list of advantages
to short-rotation woody crops, including the potential of 10 tons/ac/year of production
readily available, two problems - boom & bust research cycles that negate
long-term advances and the high cost of harvest and transportation remain as barriers.
We were reminded that when forest operations use best management practices the
application of herbicides and fertilizers as well as harvesting have minimal environmental
impacts. The real area of concern centers on roads and stream crossings.
We learned that the most cost effective way to get small diameter/low value wood
out is to have it hitch a ride on a higher value product - the proverbial 4" stick
on top of the 8" one. Too, that the best and most cost effective source of woody
biomass will be logging residues.
Farmer Wilson, echoed what farmer Dees told us in that "if it doesn't pay; it
won't stay" on the farm.
LARGE SYSTEMS PANEL
In our session on "large systems" we were reminded that those who work in the
forest products industry already are employed in the biggest conversion of non-ag
biomass in the world. And, that biomass is simply a solar energy storage mechanism.
A major biorefinery attached to a pulp and paper facility offers very attractive
potential economic returns by generating a new suite of value-added products while
at the same time reducing the need for outside energy and enhancing base product
output.
The challenge in gas-to-liquid conversion comes primarily in finding way to scale
the systems down to reduce the raw material procurement radius. Bob Wilson suggested
that there was hope for a 5-10 ton/day plant as a cooperative venture with Auburn.
We were reminded of the inherent advantages of cellulose over corn - the fact
that cellulose is produced in all 50 states whereas corn comes primarily from
5; and the potential yield of energy that is perhaps 3-5 times greater from cellulose
than from corn.
Tim Judge gave hope to the great waste producers of the world - whether of solid
waste or sewer sludge - as a source of ethanol. This same technology could be
applied to pulp and paper and other woody biomass.
Large scale systems when applied to major pulp and paper facilities are often
viewed skeptically as costly and still unproven - and perhaps even yielding products
that are far below the value of current outputs. One player, Alabama River, after
much study, has entered the fray by opting for its own soybean-oil-based biodiesel
facility.
Following the theme of soyoil biodiesel we were reminded that conversion to biodiesel
requires no infrastructure change barriers as do other technologies and fuels.
.
SMALL SYSTEMS PANEL
In our small systems session we reviewed a range of potential technologies and
systems including 5-10 barrel/day gasification systems. These systems have been
proven in other parts of the world and GTI suggested two opportunities for Auburn
- one in the creation of an Alabama Energy Research Lab and the other of placing
sabbatical staff with the company.
Fast pyrolysis offers the potential to develop small size and perhaps mobile
systems that would go right to the raw material sources such as logging sites
to produce bio-oil, syngas and char. Challenges remain in sizing units cost-effectively
to the raw material.
We were urged not to view universities as the vector of all creativity and ideas;
instead to look upon them as facilitators to aid entrepreneurs - especially small
business people who are innovating daily just to survive.
David James brought religious fervor the proceedings when he reminded us that
cooking oil, soybean oil and corn have many limits and other competing human uses.
He urged the development of several methanol facilities that would take advantage
of landfill gasses on one hand and grow algae as a food stock for high-value methanol
on the other.
POLICY/EDUCATION PANEL
In our policy/education panel, Dr. Henderson urged us to create a map of all
the things happening in the alternative energy field to look for synergies and
gaps. He saw net-metering and renewable fuel standards as important to build
a foundation of support for alternative energy.
While the adult public has strong support for alternative energy as a concept,
if they are like their children they have little information and knowledge upon
which to base their belief. Perhaps "hands on summer programs" or an "Alabama
Alternative Fuels Day" could help address the gap in the schools.
Dr. Deravi urged us not to focus too much on the raw-material supply-side of
the model - rather to focus on demand. He did a good job of summarizing the key
operating context for our conference echoing many of our early speakers pointing
that change, perhaps while unclear, is assured. He projected small scale demand
to full-scale holistic implementation and noted the limits of trying to convert
to an all biomass-based system. He concluded by noting that biomass will only
work if combined with conservation leading to significant demand reductions and smart
growth.
Summary
In summary, when we look for common themes or building blocks coming from our
two days together, we see:
- There are no silver bullets in our quest for energy self-sufficiency. Indeed,
success will likely come through dozens and perhaps hundreds of home grown ideas
each implemented to take advantage of local or regional advantages.
- There is growing understanding of the importance to national security, rural
development and profitability of alternative energy beyond just its environmental
benefits.
- Alternative energy holds the potential to dramatically alter the model of rural
landscapes and production systems - yielding food, fiber, feed and fuel.
- There is a great deal of enthusiasm - yet still somewhat dampened by experiences
of past boom/bust cycles - that this time is or will be different as we enter
the emerging post-petroleum era.
- There appears to be growing appreciation that corn, soybeans and other food crops
have significant limits both in terms of competitive uses (e.g. food) and energy
gain for energy invested.
- There are many niche potentials for other fuels from chicken litter to cotton-seed
oil but few things that cut across the entire state and nation.
- Our farmers and forest managers were clear in that they can and will produce
what we need - if we will yield a profit - and if it doesn't overtax the underlying
productivity of the land.
- While cellulosic biomass seems to be the holy grail of a true foundational renewable
energy portfolio there remain significant challenges including low-value raw material
with limited haul distance capabilities; questions about profitable production
systems, and difficulties in instituting efficient harvesting and transportations
systems - not to mention a range of fairly expensive conversion processes.
- To achieve the potential of cellulosic biomass we can and must use a range of
small and large conversion systems that will yield ethanol, methanol and a range
of high-value chemical stocks. Forest-based biorefineries appear to have some
limited application especially when aligned with certain pulp and paper facilities.
But their large size, huge financial costs and requirement of massive amounts
of feedstock, may limit their application.
- Additionally, conversion to biodiesel and ethanol is just at the cusp of real
operational implementation. There are a number of research, pilot and now just
emerging, a few operational plants in place.
- While some would suggest that more basic research is needed - and to some extent
that is always true - others would suggest that the vital need is to take what
we already know and gain more learnings from operational systems.
- Two questions are before us ... Where can we get the most gain or leverage? And,
in the context of Dr. Richardson's charge as specifically relates to the Auburn
Alternative Fuels Initiative what does all of this mean?
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