Alan F. Rozich, Ph.D., P.E., DEE Chairman & CEO BioConversion Solutions Exton, Pennsylvania Boston, Massachusetts ww

1. Other Inconvenient Truths - The Agricultural, Water, Energy Nexus Alan F. Rozich, Ph.D., P.E., DEE Chairman & CEO BioConversion Solutions Exton, Pennsylvania Boston, Massachusetts www.bioconversionsolutions.com

2. Contents • Other Inconvenient Truths Beyond Global Warming • Sustainable Resource Challenges and Tools • The Agricultural, Water, Energy Nexus • Case Study and Example • Paths Forward

3. “The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane.”, Marcus Aurelius, Roman Emperor, 161- 180 A.D.

4. Other Inconvenient Truths Beyond Global Warming • Global warming is a symptom. Although real, there are “other inconvenient truths” that will likely do us in much sooner unless we change societal functionality • A problematic, inconvenient triad, or “super nexus”, has emerged: • Population and economic expansion • Depletion of resources resulting in increased resource cost • The need for economic and environmental sustainability

5. Economic and Environmental Sustainability Depletion of Resources and Increased Cost & Decreased Availability Economic and population expansion An Inconvenient Triad

6. Tangible Examples • Economic expansion means that China and India will increase the world middle class by 3 billion people • A huge increased demand for all resources putting price pressure on these resources: • Energy • Water • Agriculture and food • Simultaneous population and economic expansion has a multiplicative impact on resource demand, not linear

7. Sustainable Resource Challenges and Tools • Energy • Water

8. Energy “But at last his heart changed-and rising one morning with the rosy dawn, he went before the sun, and spake thus unto it: ‘Thou great star! What would be thy happiness if thou hadst not those for whom thou shinest!’”, Zarathustra, from Friedrich Nietzsche, Thus Spake Zarathustra • All energy comes from the sun. All energy sources on the planet are basically solar energy vectors. • Traditional energy resources are finite. It is not a question of if these resources will run out but when. • Renewable energy sources and energy efficiency will be a must. A blended fossil fuel/renewable mix can provide for a societal transition to renewables. • Both fossil fuel and renewable can be graded on “energy returned on investment” or EROI. It is a simple maxim whose goal is to “grade” energy initiatives to determine real benefit.

9. Daily Energy Consumption Per Capita for Different Levels of Civilization(adopted from Cook (1971)) • Food • Home & Commerce • Industry & Farming • Transportation Total Daily Per Capita per Day Energy Consumption (1,000 Kilocalories) Primitive Hunting Primitive Agricultural Advanced Agricultural Industrial Technological

10. Water “Nothing is softer or more flexible than water, yet nothing can resist it.”, Lao Tzu, 6th Century B.C. • The dual increases in population and technological complexity of society are imposing more demand on water resources with a 40% “water gap” by 2030. • “Intra-societal” competing and conflicting demands for water are increasing as water is needed for energy and food production and human consumption. • There is only a finite amount of water on the planet. Human use cannot intrude on “peak ecological water” without causing irreparable damage to ecosystems.

11. Current and Predicted Global Water Needs DEFICIT Billions m3 Water EXISTING

12. Tools • Engineering and Scientific Concepts • Microbiological and Biochemical Concepts

13. Engineering and Scientific Concepts • Understanding mass and energy balances, “No matter where you go, there you are!”, Dr. Banzai • Energy fundamentals • Units • Difference between energy and power • Latent heat of vaporization • EROI – Energy Returned on Investment • Important aspects of chemistry

14. Microbiological and Biochemical Concepts “And scattered about it, … were the Martians--dead!-- slain as the red weed was being slain; slain, after all man's devices had failed, by the humblest things that God, in his wisdom, has put upon this earth.” H.G. Wells, The War of the Worlds • Appreciating and understanding the power of microorganisms • Microbes manufacture their own very efficient “chemicals”, enzymes, to process materials. • Enzymes are special because they facilitate reactions quickly without the need for other chemicals or reaction conditions. • Microbial systems are predictable and can be engineered in a manner similar to physical or chemical reaction systems.

15. The Agricultural, Water, Energy Nexus

16. Agriculture & Food Water Supply Water Resources Energy The Agricultural, Water, and Energy Nexus

17. “Out here in the fields. I farm for my meals. I get my back into my living.”, Pete Townshend, “Baba O’Riley” • Farming is the soul of agriculture going back almost 10,000 years. Current societal functionality is not possible without modern agriculture. • Interlinkages of resources create the nexus. Increased population and affluence increase resource demand. Water is needed for energy production. Energy is needed for water production. Water and energy are both needed for agriculture. • There is also a looming fertilizer crisis. Phosphorus mines are likely to be exhausted in a matter of decades. Without phosphorus, agriculture as we know it cannot function.

20. Case Study and Example – Potential Solutions • Most agricultural and food byproducts have organics, nutrients (nitrogen and phosphorus), and water. This means that these byproducts have multiple renewable products. • High rate conversion biological systems have the ability to get high conversion rates of feedstock and produce recoverable water and fertilizer. • An Australian meat processor saw the potential of the application of this technology to provide energy and water security and to increase profitability (http://www.tonywindsor.com.au/releases/130703.pdf). • The processor, Bindaree Beef of Inverell began engineering of the system and development of a project to implement the technology.

21. Case Study and Example • One of Australia’s largest meat processors, Bindaree Beef of Inverell, capable of processing 1,300 cattle per day is in the process of implementing AFC2 technology. The purpose of this project is to implement this technology to process feedstock (waste) and make renewable energy, fertilizer, and water. • The facility has been designated as a major CO2e generator under the Carbon Tax law that went into effect July, 2012. The major CO2e sources are methane that is emitted from lagoons and CO2 that is emitted from a coal-fired boiler. • Company management saw the implementation of AFC2 as an opportunity to be compliant with the new Carbon Tax law AND to generate additional revenue through energy generation (electricity) and fertilizer production. • Engineering analysis showed that implementation of AFC2 technology can be achieved economically without having to rely heavily on subsidies, credits, etc.

22. Case Study and Example • The implementation of the system will produce electricity, high quality fertilizer for sale, and Class A water create about 200 new jobs • About 90% of the organic by-product/feedstock waste will be converted into renewable products • Eliminate the need for landfill and the need to burn 7,200 tons of coal per year • Generate about 2 MW of renewable electricity

23. Bindaree Beef,Australian Meat Processor

24. AFC2 Pilot Plant at Bindaree Beef

25. 3D Depiction of Planned AFC2 System for Bindaree Beef

26. Paths Forward “Oh friends, not these tones! Let us raise our voices in more pleasing and more joyful sounds!” – Ludwig van Beethoven, Symphony #9, 4thMovement, “Ode to Joy”, 1825. • “Mine” waste streams and other feedstocks to obtain resources previously obtained from current sources. For example, phosphorus can be obtained from biomass. • BREAK RESOURCE INTERLINKAGES. • Gradually transition to energy renewables using EROI methods and being cognizant of nexus considerations. • Make more use of biomass, the “multi-tasking renewable”. Biomass can produce energy, fertilizer, and water.

27. Finis

28. Selected References McKinsey Global Institute, Resource Revolution: Meeting the World’s Energy, Food, and Water Needs, McKinsey and Company, San Francisco, November, 2011. SAIC, Life Cycle Assessment: Principles and Practice, USEPA, Cincinnati, Ohio, 2006. Cook, E., “The Flow of Energy in an Industrial Society”, Scientific American, September, 1971. Janhardhan, V. and Fesmire, B., Energy Explained, Volume 1: Conventional Energy, Rowman & Littlefield Publishers, Inc., New York, 2011. Hubbert, M., “The Energy Resources of the Earth”, Scientific American, September, 1971

29. Selected References Oloman, Colin, Material and Energy Balances for Engineers and Environmentalists, Imperial College Press, London, 2009. Bothamley, J., Dictionary of Theories, Visible Ink Press, Canton, Minnesota, USA, 2002. Henry, J. G. and Heinke, G.W., Environmental Science and Engineering, Prentice Hall, Englewood Cliffs, New Jersey, 1989. Pankow, J.F., Aquatic Chemistry Concepts, CRC Press, Boca Raton, Florida, 1991. Rozich, A. F. and Gaudy, A. F., Jr., Design and Operation of Activated Sludge Process Using Respirometry, Ann Arbor Science, Ann Arbor, Michigan, 1992. Water Resources Group, Charting Our Water Future, 2030 Water Resources Group, 2009.

30. Selected References Gleick, P. and Palaniappan, M., “Peak water limits to freshwater withdrawal and use”, Proceedings of the National Academy of Sciences,107, (25): 11155–11162, 2010. Hoornweg, D. and PerinazBhada-Tata, P., What a Waste: A Global Review of Solid Waste Management, World Bank, Washington, D.C., 2012. Frankx, L., et. al., Optimising Markets for Recycling, ARCADIS Report for the European Commission – DG Environment, Antwerp, Belgium, 2008. Hoff, H., “Understanding the Nexus”, Stockholm Environment Institute, Presented, Bonn2011 Conference The Water, Energy and Food Security Nexus, November, 2011. Schnepf, R., Energy Use in Agriculture: Background and Issues, CRS Report for Congress,CRS and Library of Congress, November 19, 2004. Younos, T., R. Hill, and H. Poole, Water Dependency of Energy Production andPower Generation Systems, VWRRC Special Report No. SR46-2009, Virginia Tech, Blacksburg, VA, July, 2009.