Bio-energy May 10, 2007

1 Recommendations for a Bioenergy Plan for California ; CEC F APRIL

2 Conversion Pathways Recommendations for a Bioenergy Plan for California ; CEC F APRIL

3 Pipeline-Quality Biogas Benefits California has 1.7 million cows in 2,100 dairies –75% in Northern California –50% in San Joaquin Valley Methane normally escapes to atmosphere from open lagoons at dairies Methane and other reactive organic gases (ROGs) cause air non- attainment status for San Joaquin Valley Methane is 21 times as potent as CO 2 as a Greenhouse Gas Central generating plants are cleaner and more efficient than small, distributed generators that would be used at dairies Pipeline transport to cleanest, most efficient central plant cleans up valley air and destroys a potent greenhouse gas PG&E will produce more renewable energy without the need for electric transmission reinforcements

4 Biomass Sources and Existing Power Facilities Source: CEC Report A roadmap for Biomass in California, CEC D, November

5 Recommendations for a Bioenergy Plan for California ; CEC F APRIL

6 Overview of Conventional Processes Source: Office Biomass Program Presentation to Technical Adisory Committee March 11,

7 Promising Technology: Great Point Energy’s Catalytic Methanation Claims to produce $2.50-$3.50/MMbtu methane from coal without subsidies or tax credits Key to process is proprietary catalyst that allows low temperature gasification/methanation process with steam –Large avoided capital infrastructure –Significant reduction in operating costs from operating at lower temperatures –Lower maintenance requirements Demo project at O’Hare airport Investor backing includes Draper Firsher Jurvelson, Kleiner Perkins Management team includes serial entrepreneurs, gasification and refining veterans Source