January 12, 2010 Rotary Club of LaBelle

1. Hendry County Sustainable Biofuels Center Public-Private Partnership John C. Capece, Ph.D. Intelligentsia International, Inc. Edward A. Hanlon, Ph.D. University of Florida IFAS January 12, 2010 Rotary Club of LaBelle

2. What Are Biofuels? • Food for People & Livestock • Energy for Society: • Biomass combustion for heat and cooking • Biomass combustion for electrical power • Ethanol (alcohol) from fermentation • Biodiesel (oil) production • Biogas (methane) anaerobic digestion • 2nd generation (isobutanol, cellulosic, syngas) • 3rd generation (from algae feedstock)

3. Why Produce Biofuels? • Energy Security • The USA imports much of its oilfrom unstable nations such asNigeria and Venezuela • Europe and the Far East nations import oil from the Middle East • Climate Change Concerns • Biofuels are how we can recycle the waste product of combustion energy, carbon dioxide. • Plants remove CO2 from the atmosphere and convert it into biomass for fuel.

4. What are the Components of the Biofuels Process? • Production of Biomass • Farms grow the material (sugarcane, corn, wood, algae, etc.) • Organic waste products collection(restaurant oil, storm wood debris) • Conversion of Biomass to Fuel • Ethanol, Biodiesel, Gasification (Syngas), etc. • Conversion of Fuel to Energy • Combustion of ethanol in vehicle engines

5. What are Sustainable Biofuels? • Biofuels produced in ways that: • Generate sufficient cash flow • Do not deplete the natural resources base of the production system (soil, water, air, etc.) • Continually benefit the community/society over the long term. • Generally requires the gradual substitution of intellectual capital for resources exploitation(doing things smarter).

6. The Three Pillars of Sustainability:Economic, Environmental, & Social

7. Hendry Co. Sustainable Biofuels Center • Funded by U.S. Department of Energy • Federal appropriation requested by Hendry County, Office of Grants & Special Projects ($1 million) • Developed with Rep. Mahoney (later Rep. Rooney) • Two years with possible renewal & expansion • Ties in with new initiatives by DOE, EPA, USDA(a variety of secondary grant opportunities) • Partners include: • University of Florida IFAS • Edison State College • Intelligentsia International, Inc. • other public and private groups are invited to join

8. Hendry Co. Sustainable Biofuels Center Biofuels Systems Evaluation - Sustainability Indexing - Technology & Farming Sys. Workforce Development - Secondary & College Economic Development - Assisting All Companies - Attract Biofuels Investment - Develop the Center Demonstration Projects - New Production Systems Research - Comparison Methodologies - Economics - Energetics - Greenhouse Gas Balance - Natural Resources Balance - Compensation Mechanisms - Sustainability

9. Research & Development Components

10. Categories of Economic Benefits from this Department of Energy Project • Direct employment by the center its cooperators • Expansion of post-secondary school programs(Edison State College, UF/IFAS and FGCU) • Expansion of secondary school programs (LaBelle H.S. Agriscience Academic Academy) • Preservation of farming jobs & support industries • Creation of new agricultural jobs for biomass • Creation of biofuels conversion industry jobs

11. How To Evaluate the Merits of Biofuels? • Various criteria: • CASH FLOW • ENERGETICS • ENVIRONMENTAL • NATIONAL SECURITY • OTHER ECONOMICISSUES (Employment) • OTHER SOCIALISSUES (Food Supply)

12. Evaluating Biofuels by Cash Flow“Free Markets” • Traditionally thought to integrate all system costs with social costs moderated through the political & law enforcement process. • Includes subsidies & tariffs • Excludes externalized costs • The low-cost producer isn’t always the most efficient. Rather, it is often the most externalized. • Tends to push systems towards high-yield monocultures to the exclusion of other considerations (natural resources depletion).

13. Evaluating Biofuels by CO2 Emissions Evaluating the attributes of biofuels farming and conversion

14. Evaluating Biofuels by Inputs % of U.S. farm land required to meet half of U.S. demand.Table from Groom, Gray & Townsend in Conservation Biology.

15. Evaluating Biofuels Sustainablility by Environmental Impact Assessments • Environmental Sustainability Index (ESI) • Environmental Loading Ratio (ELR) • Ecological Footprint • Composite Sustainability Performance Index • Green Biofuels Index

16. Evaluating Biofuels by Energetics(Total Energy Budget) • Energy accounting or the flows & storage of energy into and out of a system. • H.T. Odum work at UF (with others including Mark T. Brown) • Provides a more comprehensive analysis if, like traditional economics, all input, output, and impact categories are included. • Like traditional economics, an energetics model can neglect some cost categories and social considerations.

17. Emergy (Embodied Energy) EMERGY (Embodied Energy) Analysis of Farming Systems What are the energy inputs to our food & fuel production systems?

18. Emergy (Embodied Energy) EMERGY Analysis of Sugarcane–Ethanol Production

19. Emergy (Embodied Energy) Net energy of biomass is barely 1/1

20. Net Energy from Renewable Fuels (society currently requires an EYR of 4

21. Net Energy from Renewable Fuels (society currently requires an EYR of 4

22. Biofuels as One Component of a Sustainable Farming System • Analyzing the sustainability of biofuels farming systems can help all south Florida agriculture become more compatible with regional ecosystem restoration goals. • The new farming systems require revenues derived from multiple income streams: • crop sales, waste by-products • energy generation, carbon credits • water storage, nutrient removal, wildlife habitat • ECOSYSTEM SERVICES

23. Promoting Farming Systems Research 2010 Everglades Coalition Conference Session January 8, 2010 Transforming Farming System on Public Lands to Support Everglades Restoration Presentation Topiocs: 1. Sustainable Farming Systems for the EAA [Concept & Ideas] 2. Natural Resources Optimization & Accountings [Framework] 3. Water Quality and Drainage Issues [Water Objectives] 4. Accelerated Soil Subsidence in the EAA [Soil Objectives] 5. UsingSugarcane for Nutrient Removal [Nutrient Objectives] 6. Developing Flood-tolerant Sugarcane Varieties [New Crops] 7. Program Development [R&D Requirements]

24. Historic vs. Current Water Flow

25. Lake OtoEAAtoSTAstoWCAstoEverglades

26. Land Swap for Flow Way(Reservoirs and Wetland STAs)

27. Why Pursue Alternatives to STAs? • Threats to our ecosystem are global, not just local. • These globally-influenced threats to the Everglades include migratory species vulnerability and long-term climate change combined with sea level rise. • Eliminating Florida farms simply moves agricultural production overseas to nations using less environmentally-sensitive practices and promoting more land clearing (20% of GHG emissions). • Substituting overseas agricultural for domestic production contributes to global environmental threats and thus yields no net ecological benefit.

28. Sustainable Farming Systems as an Alternative to Reservoirs & STAs • Based on flood-tolerant sugarcane & other crops. • Greater water flow-through and/or storage on farms. (Recyclable Water Containment Areas) • Reduction of muck soil loss (subsidence), a major factor in the carbon balance of EAA. • Requires changes in many aspects of horticultural practices: crop rotations, fertility management, diseases & pests, farm operations & equipment.

29. Farming Systems Research Programs Water Storage Services from New Farming Systems

30. Farming System Research Programs Water Storage Services from New Farming Systems - potential dual use as flow way and farm land - taking advantage of flood-tolerant sugarcane varieties

31. Hendry County Sustainable Biofuels Center Public-Private Partnership John C. Capece, Ph.D. Intelligentsia International, Inc. Edward A. Hanlon, Ph.D. University of Florida IFAS January 12, 2010 Rotary Club of LaBelle