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KENTUCKY’S ENERGY FUTURE

Kentucky Association of Electric Cooperatives. KENTUCKY’S ENERGY FUTURE. Frank Moore Director of Biofuels Dept. for Energy Development & Independence October 13, 2009. Intelligent Energy Choices for Kentucky ’ s Future. Kentucky ’ s 7-Point Strategy for Energy Independence.

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KENTUCKY’S ENERGY FUTURE

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  1. Kentucky Association of Electric Cooperatives KENTUCKY’S ENERGY FUTURE Frank Moore Director of Biofuels Dept. for Energy Development & Independence October 13, 2009

  2. Intelligent Energy Choices for Kentucky’s Future Kentucky’s 7-Point Strategy for Energy Independence

  3. The Strategy in a Nutshell Stimulate economic development & preserve energy cost relationships for Kentuckians in a carbon-limited environment.

  4. Bold Efficiency & Renewable Energy Initiatives • Renewable and Efficiency Portfolio Standard (REPS) • By 2025, twenty five percent of Kentucky’s energy needs will be met by efficiency gains, and renewable resources such as solar, wind, hydro, and biofuels. • REPS will help us to diversify our energy portfolio, help consumers save on energy costs, and provide “green collar” jobs. • REPS: Strategies 1, 2 & 3

  5. Kentucky Fuels Our Own Transportation Needs • Alternative Transportation Fuel Standard (ATFS) • By 2025, sixty percent of transportation fuels used in Kentucky will be derived from biofuels, coal-based liquids, electricity via hybrid engine technologies, and compressed natural gas. • ATFS: Strategies 1, 3, and 4

  6. Strategy 1 Goal:Energy efficiency will offset at least 18 percent of Kentucky’s projected 2025 energy demand. Energy efficiency is the fastest, cleanest, most-cost effective way to reduce our growing demand for energy and to address climate change issues. Improve the energy efficiency of Kentucky’s homes, buildings, industries, and transportation fleet.

  7. Strategy 2 Goal:By 2025, Kentucky's renewable energy generation will triple to provide the equivalent of 1,000 megawatts of clean energy while continuing to produce safe, abundant, and affordable food, feed and fiber. With less than 3 % of our electricity generated from renewable sources today, Kentucky should aggressively pursue renewable energy to reduce GHG emissions and to diversify our energy portfolio. Increase Kentucky’s Use of Renewable Energy

  8. Strategy 3 Goal: By 2025, Kentucky will derive from biofuels 12 percent of its motor fuels demand (775 million gallons/year, which represents approximately 20 percent of Kentucky’s current transportation fuels demand), while continuing to produce safe, abundant, and affordable food, feed and fiber. Today, Kentucky uses less than 10% of its potential resources for production of biofuels. We can significantly grow our agricultural and forestry resources in a sustainable way to provide biofuels for transportation. Sustainably Grow Kentucky’s Production of Biofuels

  9. Strategy 4 Goal: Kentucky will develop a CTL industry that will use 50 million tons of coal per year to produce 4 billion gallons of liquid fuel per year by 2025. Key to achieving energy security is use of our domestic resources. Building on recent legislative support for CTL facilities, Kentucky will develop a vibrant CTL industry that will provide jobs and economic opportunities. Develop a Coal-to-Liquids Industry in Kentucky to Replace Petroleum-Based Liquids

  10. Strategy 5 Goal: Kentucky will produce the equivalent of 100 percent of our annual natural gas requirement by 2025 by augmenting in-state natural gas production with synthetic natural gas (SNG) from coal-to-gas (CTG) processing. Kentuckians have become increasingly vulnerable to natural gas supply uncertainties and price increases in recent years. A strong CTG industry will provide energy security and economic development opportunities. Implement a Major and Comprehensive Effort to Increase Gas Supplies, Including Coal-to-Gas

  11. Strategy 6 Goal: By 2025, Kentucky will have evaluated and deployed technologies for carbon management, with use in 50 percent of our coal-based energy applications. Kentucky’s energy future depends on the success of carbon capture and storage projects at coal-based facilities. Initiate Aggressive Carbon Capture/Sequestration Projects for Coal-Generated Electricity in Kentucky

  12. Strategy 7 Goal: Nuclear power will be an important and growing component of the nation’s energy mix, and Kentucky must decide whether nuclear power will become a significant part of meeting the state’s energy needs by 2025. With major increases in energy efficiency, renewables, and cleaner coal technologies, we still will not be able to achieve GHG reduction goals and meet projected energy demands. Kentuckians must decide whether nuclear power will be an option in our energy future. Examine the Use of Nuclear Power for Electricity Generation in Kentucky

  13. InSummary: • With this action plan, by 2025 Kentucky will: • Maintain current per capita energy use despite major energy growth demands. • Fully utilize our renewable energy resources. • Maintain coal production in Kentucky at current levels. • Produce approximately 4 billion gallons of liquid fuels from coal. • Produce annually 135 billion cubic feet of SNG to augment Kentucky’s natural gas supply.

  14. In Summary • With this action plan, by 2025 Kentucky will: • Provide 40,000 new Kentucky jobs by diversifying our energy sector. • Achieve energy independence for Kentucky from imported oil. • Reduce the net carbon emissions by 50 percent. • Assure the viability of Kentucky’s coal industry in a carbon-constrained world.

  15. Where do we start? Executive branch reorganization Energy efficiency & ARRA Focus on biofuels (Biomass Task Force)

  16. Biomass Task Force:Laying the Foundation Establish “official” supply-demand potential Estimate the economic impact and capitalization requirements of a biomass industry Develop a vision on how such large volumes will be handled Assess Kentucky’s ability to support the biotechnology Ensure that Kentucky can make the right business structures available Recommend a realistic incentive package that will encourage farmers to plant, foresters to harvest, and developers to build.

  17. Kentucky’s Biomass Future

  18. Our Vision 25 Million Tons of Biomass by 2025

  19. Our Challenge $1 Billion Initiative to get things started!!

  20. Intelligent Energy Choices for Kentucky’s Future Kentucky’s 7-Point Strategy for Energy Independence

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