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Uniting Leaders for a Common Energy Goal Oklahoma Renewable Energy Council November 14, 2007 Oklahoma City, OK Brent Bailey 25x’25 Facilitator. Energy Use Projections. U.S. imports nearly 65% of our petroleum needs; predicted to only increase. America’s Energy Future. U.S. Energy Use.
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Uniting Leaders for a Common Energy Goal Oklahoma Renewable Energy Council November 14, 2007 Oklahoma City, OK Brent Bailey 25x’25 Facilitator
Energy Use Projections U.S. imports nearly 65% of our petroleum needs; predicted to only increase
America’s Energy Future U.S. Energy Use Total = 7 Quadrillion Btu Total = 100.2 Quadrillion Btu 4% Wind Natural Gas 23% Coal 23% 42% Hydroelectric Renewable Energy 5% Geothermal 7% 48% Biomass Nuclear Electric 8% 1% Solar Petroleum 40% Source: From the Energy Information Administration, Annual Ener gy Review for 2006
Oklahoma Energy Consumption by Source, 2003
Ranked 11th in the nation for per capita energy consumption and ranked 25th for total energy consumption, despite being ranked 47th for per capita income. Large industrial and transportation use; ~25% of households have electricity as primary heating source; all coal comes from out of state; no nuclear. Oklahoma’s Energy Use Source: EIA
The 13 Southeastern states use 40% of total energy consumed in the U.S. Texas leads nation in coal, nat gas, and petroleum use Total consumption per capita: 9 of top 15 states are Southeastern states Southeast Energy Use
Judged in six categories: carbon footprint, air quality, water quality, hazardous waste management, energy efficiency policy initiatives, and energy consumption. Botton 10: MO, ND, TN, AR, KY, MS, LA, AL, IN, and WV – “lots of pollution and consumption and no clear plans to do anything about it.” Oklahoma - #38 on list Forbes Green State Rankings
Source: State of Georgia Energy Strategy Development Materials
Energy Information Administration has projected costs to increase 4 to 22 percent for natural gas, heating oil, propane, and electricity this winter. The International Energy Agency (IEA) projects a 50 percent increase in worldwide demand for energy between now and 2030. Other Concerns
The U.S. Department of Energy (DOE) estimates that America's total energy demand will increase 30 percent by 2030. All the more reasons to strongly support U.S. bioenergy production and use Other Concerns
U.S. accounts for 25% of global consumption, but holds 3% of reserves and has 4% of global population. Demand is nearly equal to supply + global political unrest = volatile prices. Oil price: $96+/barrel But…..what other country has the standard of living that we enjoy? Drinking water, waste water, mobility, heating/cooling, food production…..all takes energy! U.S. Oil Addiction
Pres. Bush declares America is “addicted to oil” Cellulosic and biomass on public stage Venture capital investments set new record while federal funding for renewable energy programs were cut Biofuel production ahead of RFS Wind energy surpassed 10 GW Solar efficiency breakthroughs (>40%) Prior to end of 109th Cong., Cong. passed legislation extending important TCs until 2008 Congressional leadership shifts A Look Back on 2006
Pres. Bush issues a new biofuels challenge – “20 in 10” DOE issues $400+M in grants to facilities that will utilize cellulosic ethanol conversion technologies Venture capital investments in renewable energy continue – here and abroad House passes Farm Bill and Energy Bill; Senate debating Farm Bill and Senate passed Energy Bill 25x’25 Action Plan introduced 2007….Thus Far
25x’25 Initiative: Renewable energy initiative born in the ag and forestry sectors; formed in 2004 Seeks to forge consensus on a new energy future Organized to explore agriculture and forestry’s role in energy production
25x’25 Initiative: Four-phase project Create the Vision Tested the Vision/Built an Alliance Created a pathway to the Vision Implement the Vision
Our Vision: By the year 2025, America’s farms, ranches and forests will provide 25 percent of the total energy consumed in the U.S. while continuing to produce safe, abundant and affordable food, feed and fiber. 25x’25
25x’25 Today (2006) Goal (2025) 31.75 Quads Renewable Energy = 25% ~7 Quads Renewable Energy = 7% 100.2 Quads Total Energy Consumed EIA predicts consumption of 127 Quads by 2025
We will meet this goal by: • Producing transportation fuels • Harnessing wind energy • Converting biogas emissions • Utilizing geothermal resources • Capturing solar energy • Providing biomass for generating heat, power, and biofuels (~half of RE needs) • Observing the benefits to the environment and increasing energy efficiency
Over 600 farm, business, energy and environmental organizations! American Farm Bureau Federation National Corn Growers Association American Soybean Association Forest Landowners Association National Association of State Departments of Agriculture Monsanto Deere & Company “Big 3” Automakers – Ford, Daimler Chrysler, GM American Wind Energy Association Natural Resources Defense Council
OK-based farm, business, energy and environmental organizations • Oklahoma Farm Bureau Federation
22 Governors MT KY NE VT ID MN IL KS AL SD PA NM MI NH TN IN WI CA VA CO ND GA 6 Former Governors FLMD ID IA NY OH
12 State Legislatures Colorado Florida Nebraska North Dakota Vermont Georgia Kansas Mississippi Montana Alabama Louisiana California
State alliance activity: Formed in CO, KS, LA, MS, FL, SC, KY, NE, TX, NY, OH, PA, WA, OR, ID, and VT Forming in AL, AR, CA, GA, TN, VA, IA, AZ, NM, WY, and MT Action pending in NC, OK, IL, IN, MO, WI, MN, ND, SD, NV, and ME
Role of alliances: • Ensure grass roots participation and ownership • Vehicle to unite state level champions • Channel support to national and stateinitiatives that: • Increase renewable energy production • Expand the renewable energy market
Identify primary leaders/share the “vision” Secure commitments Organize state level Steering Committee Identify and recruit partners Form an alliance Develop a state action plan Organizing Model
What’s in it for ag and forestry? • Increased farm income • Added value uses • Alternative enterprises • More productive uses of marginal lands • Assist in resolution of air, water and soil quality problems • Reduced reliance on government payments • Enhanced rural economies
25x’25’s number one renewable fuel priority The key to reaching our goal Farm Bill and Energy Bill will have significant impacts to research, development, and deployment Key to the Future: CellulosicBioenergy Development
209 million acres of forestland 86 million acres of traditional cropland 120 million acres of pasture/hayland 8.5 million acres of CRP land 7.5 billion head of poultry 43 million head of livestock 151 million tons of municipal solid waste Many other unique biomass resources Southeast Biomass Resources
The Opportunity & Potential • USES • Fuels: • Bio/Renewable Diesel • Ethanol • Electricity and Heat • Biobased Products • Composites • Specialty Products • New Products • Chemicals • Traditional Products Conversion Processes • Biomass • Feedstock • Ded. Energy Crops • Ag and Forest Residues • Hazardous Fuel • Treatments • - Short Rotation • Woody Crops • - Wood Waste • Manufacturing • Co-firing • Combustion • Gasification Fermentation • Enzymatic Fermentation • Acid Hydrolysis/Fermentation • Catalytic Cracking
Key Steps to Success Feedstocks Collection Conversion Distribution Pricing Availability Form Harvest Storage Transport Pre-Processing Technology Efficiency Inputs Method Distance Acceptance Co-products
Cost improvement past 20 years: 57% Projected improvement next 20 years: 45% Source: National Renewable Energy Laboratory Energy Analysis Office NREL: Renewable Cost Trends
Univ. of Tennessee Study Objectives Determine the ability of America’s farms, forests and ranches to provide 25% of U.S. total energy needs in 2025 Assess the economic impacts of achieving the 25x’25 goal on the ag sector and the overall economy
87 billion gallons of biofuels (Assuming that cellulosic technologies will be available and competitive by 2012) 932 billion kwh of electricity 15.45 quads of energy from biomass (Remainder of renewable energy to come from solar, wind, geothermal, hydro, etc.) By 2025, America’s farms, forests and ranches can annually produce: Source: UT Study
Impacts on national economy in 2025 Economic Activity$700 billion annually Jobs5.1 million All for only an investment equal to 5% of what America spent on imported oil in 2006.
2.42 billion gallons of biofuels 43.3 billion kwhr of electricity (plus 44.1 bkwh from wind and solar!) While creating 133,676 new jobs and $13.6 billion in economic activity (42.0 million dry tons of cellulosic feedstocks will be needed) By 2025, Oklahoma’s farms, forests and ranches can annually produce: Source: UT Study
National goal: June 7, 2006 – Bipartisan group of Senators and Representatives introduced concurrent Congressional resolutions calling for a new national renewable energy goal of 25x’25 109th: 28 Senate; 94 House 110th: SCR 3 has 34 co-sponsors; HCR 25 has 72 co-sponsors (Rep. Lucas)
Why establish this National Goal? Sets a benchmark for our nation Help to unify leaders behind a common goal We think it is achievable
Congress has spoken and adopted the 25x’25 vision as a national goal Senate: S. Con. Res. 3 adopted June 15, 2007 House: H. Con. Res. 25 adopted October 15, 2007
Improving Energy Efficiency and Productivity (policy option of first choice) Increasing Renewable Energy Production Delivering Energy to Markets Expanding Renewable Energy Markets Strengthening Conservation of Natural Resources and the Environment 25x’25 Action Plan: Charting America’s Energy Future
Increased funding for RDD&D Expansion of current production incentives New Feedstock Residue Management Program Exploring a permanent counter-cyclical incentive system for biofuels in relation to oil Incentives to build new transmission lines Mechanism to get to 50% flex-fuel vehicles Expanding conservation and energy programs in the Farm Bill Action Plan calls for: