1. America’s Energy Future Presented to: Forum On Climate Change, Forests, & Bioenergy January 26, 2007 Washington, D.C

2. America’s Energy Future Energy: The Linchpin of Our Economy Fundamental to our prosperity Contributes to our quality of life Historically has been abundant and affordable

3. America’s Energy Future Fossil based energy systems are not sustainable World oil reserves are limited in supply and located in volatile parts of the world Dependence on foreign oil is increasing Costs of oil, natural gas and electricity are skyrocketing Emissions from burning of fossil fuels are impacting the environment

4. America’s Energy Future 25x’25 INITIATIVE Renewable energy initiative involving the agriculture and forestry sectors Supported by the Energy Future Coalition Seeks to forge consensus on a new energy future Focuses on economic, national security and environmental benefits

5. America’s Energy Future 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. THE VISION 25x’25

6. America’s Energy Future Renewable Energy Components: Producing transportation fuels Harnessing wind energy Converting biogas emissions Capturing solar energy Providing biomass for generating heat and power

7. America’s Energy Future What’s in it for Rural Communities? Increased farm & forest 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 commodity payments Enhanced rural economies

8. America’s Energy Future What’s in it for the Nation? Enhanced national security Improved environment Revitalized economy

9. America’s Energy Future Skeptics say renewable energy: Won’t amount to anything Costs too much We believe renewable energy: Can supply 25% of U.S. needs Could cost less than business as usual

10. America’s Energy Future Our Conclusions: America’s farms, forests and ranches can play a significant role in meeting the country’s energy needs. The 25x’25 goal can be met while continuing to provide safe, abundant and affordable food, feed and fiber.

11. America’s Energy Future U.S. Energy Overview − 45% Hydroelectric − 2% Wind − 5% Geothermal − 47% Biomass − 1% Solar Source: From the Energy Information Administration, Annual Energy Review for 2003 Total = 70.5 Quadrillion Btu Total = 6.2 Quadrillion Btu Domestic Energy Consumption = 98 Quadrillion Btu

12. America’s Energy Future Biomass: The Basic Resource Fuels Electric Power Chemical Products

13. America’s Energy Future

15. Feedstocks Used to Reach 25x’25 0.00 200.00 400.00 600.00 800.00 1,000.00 1,200.00 1,400.00 2006200820102012201420162018202020222024 Year Million tons Soybeans Corn Grain Wood Residue Straw Stover Dedicated Energy Crops

16. America’s Energy Future Annual Biomass Potential from Forest and Agricultural Resources

17. America’s Energy Future Conversion Processes Forest Biomass Feedstock - Forest Residues - Hazardous Fuel Treatments - Short Rotation Woody Crops - Wood Waste USES Fuels: − Renewable Diesel − Ethanol Electricity and Heat Biobased Products – Composites – Specialty Products – New Products – Chemicals – Traditional Products – Manufacturing – Co-firing – Combustion – Gasification – Enzymatic Fermentation – Gas/liquid Fermentation – Acid Hydrolysis/Fermentation The Opportunity & Potential

18. America’s Energy Future Woody Biomass Available year round from multiple sources Not dependent on single source material Net energy ratios for bio-energy and bioproducts including biofuels are large and positive More energy output than fossil fuel input Can be sustainably managed and produced while simultaneously providing environmental and socioeconomic benefits Physical-chemical characteristics of woody biomass are fairly consistent from multiple sources Forest products industry & wood-based renewable energy Industry have developed technical and engineering competencies to manage woody biomass

19. America’s Energy Future Forest Woody Biomass National net annual growth of forest woody biomass on almost 500 million acres of US timberland exceeds removals by almost 50% North Central States – 95% Northeastern States – 125% New York State – 300%

20. America’s Energy Future Short-Rotation Woody Crops Hybrid Poplars Willows Cottonwood Southern Pines Sycamore Natural Forests

21. America’s Energy Future Forest Resource Analysis The sustainable forest resource potential is nearly 370 million dry tons annually

22. America’s Energy Future Forest Resource Summary The sustainable forest resource potential ~ 368 million dry tons per year

23. America’s Energy Future Forest Resources Analysis Residues from fuel treatment operations on timberlands and other forestlands ~ 60 million dry tons/year potential

24. America’s Energy Future Forest Resource Analysis this is

25. America’s Energy Future Woody Biomass Feedstock Potential (Millions of BDTs Annually) Electricity: 8,500 Bone Dry Tons = One Megawatt/Hour for an entire Year of Electricity (1 MWY) 368 Million BDT = 43,294 MW Years One Megawatt = 1000 Households 43,294 MWY = 43.3 Million Households Ethanol*: One BDT = 80 gallons (Range 65-100 gallons) 368 million BDT = 29.4 Billion Gallons of Ethanol per Year Current production is about 6 billion gallons per year (mostly corn) * Potential only, further research and technology development needed

26. America’s Energy Future Based on ORNL & USDA Resource Assessment Study by Perlach et.al. (April 2005) http://www.eere.energy.gov/biomass/pdfs/final_billionton_vision_report2.pdf The 1.3 Billion Ton Biomass Scenario Billion Barrel of Oil Equivalents

27. America’s Energy Future Additional Forest Resource Analysis Change Assumptions Improve recovery of logging residues and other removals –Logging residues – 65% to 85% –Other removals – 50% to 85% –Adds another 16 million dry tons annually Increase biomass component for treatments –Change from 30% to 60% for timberland –Adds another 55 million dry tons annually Recover part of forest mortality Add thinnings Beyond the Billion-Ton Report – Wood for Energy

28. America’s Energy Future New Totals ItemMillion Dry Tons per Year Original368 Utilization and Recovery Assumptions 71 Recover Mortality47 Thinnings18 Total504 Note: Half of current mortality and 3x southern thinning projections Beyond the Billion-Ton Report – Wood for Energy

29. America’s Energy Future Wood in Agricultural Analysis Short Rotation Woody Crops in High Yield/Land Change Scenario Not in forestry assessment – in agriculture Wood Fiber 5.1 millions acres 8 dry tons per acre per year 25 percent of annual harvest is allocated to energy biomass Total is 9.2 million dry tons annually Additional CRP Trees 2.2 million dry tons per year Total Wood in Agricultural Analysis 11 – 146/368 million dry tons per year Potential as a Perennial Crop Part or all of 146 million dry tons per year under moderate yield/land change scenario Part or all of 368 million dry tons per year under high yield/ land change Beyond the Billion-Ton Report – Wood for Energy

30. America’s Energy Future Fuels from Syngas

31. America’s Energy Future An Evolving Biorefinery Model For the Pulp and Paper Industry  BL Gasifier  Wood Residual Gasifier  Process to manufacture Liquid Fuels and Chemicals Syngas Liquid Fuels and Chemicals Steam, Power & Chemicals Pulp Manufacturing Black Liquor & Residuals  Extract Hemicellulose  Produce chemicals and ethanol

32. America’s Energy Future Agenda 2020 “Princeton Study” Integrated Forest Products Biorefineries 2 Billion Gallons of Ethanol Annually/3X possible 10 Billion Gallons of Other Transportation Fuels 20,000 Megawatts of Biomass Power Fossil Fuel Savings 16 Quads (16,000 Billion BTU’s) Reduce 100 million tons of carbon emissions IRR 14%-18% at 25 yr levelized world oil price of $50/bbl IRR exceeds 45% at $78/bbl when environmental attributes are also monetized

33. America’s Energy Future THE FIRST U.S. PULP AND PAPER-BASED BIOREFINERY has moved another step closer to reality with Flambeau River cellulosic ethanol biorefinery to be constructed adjacent to the Flambeau River Papers mill in Park Falls, Wis. The mill produces 400 tpd of book printing and copy grades on three paper machines. It plans to replace its natural gas boilers with a biomass boiler or gasifier, making Flambeau River Papers the first energy independent integrated mill in North America. The biorefinery will be designed to produce 20 million gal of cellulosic ethanol per year from the mill's spent pulping liquor. Technology selected for the project enables production of ethanol without putting additional pressure on the wood basket and without fossil fuel consumption. As designed, the new biorefinery will have a positive carbon impact of ~140,000 tpy, i.e., it will displace carbon dioxide from the atmosphere. Once in operation, expected to begin in 2009, it will increase employment at the Park Falls area by approximately 100 people.

34. America’s Energy Future Decentralized Biomass Liquids Scenario Alternate Feedstock to Power Plant or Petroleum Refinery

35. America’s Energy Future Current Status Rising fuel/energy costs and advances in technology are improving the economy of forest- based biorefineries Currently, thermal conversion technologies better suited for forestry resources than biochemical conversion Forestry industry well-poised to participate in emerging domestic biorefining/biofuels industry Oil industry beginning to express interest in fuels or alternative crude oils from biomass

36. America’s Energy Future Our Conclusions: Ag and forestry can play a major role in helping the nation achieve energy independence. An enormous and historic opportunity is on the horizon. It is time to come together and work collaboratively to capitalize on these opportunities.

37. America’s Energy Future By 2025, America’s farms, forests and ranches can annually produce: 86 billion gallons of ethanol 1.1 billion gallons of biodiesel 932 billion kwh of electricity 15.45 quads of energy from biomass

38. America’s Energy Future “25x’25 Co-Chairs “We believe the framework laid down by the 25x'25 vision is the most beneficial and sustainable path to an energy-secure America. According to the University of Tennessee, the 25x'25 renewable energy vision will create 5 million new jobs and boost economic activity by $700 billion, while reducing global warming emissions and strengthening our national security.”University of Tennessee

39. America’s Energy Future The 25x’25 Vision: Is achievable Provides a positive impact on the national and rural economies Reduces our reliance on foreign oil and improves national security Creates important environmental benefits

40. America’s Energy Future We have the technology, capacity and leadership to offer new energy solutions. These solutions will enhance farm income and strengthen rural communities. The public is behind us. Why now?

41. America’s Energy Future Voters say they support a new energy policy even if it costs billions more. The country is facing an energy crisis. Having reliable energy is fundamental to economic prosperity, our national security, and protecting the environment. We need more ambitious and creative thinking behind a new energy policy for the future. There is no energy crisis facing this country. We are meeting our energy needs and prices have stabilized. Radically changing our energy policy would require billions of dollars, and there are simply too many other important priorities right now.

42. America’s Energy Future. Do you believe this goal is achievable or not achievable? How important is this goal of 25% of our domestic energy needs met by renewable energy sources by the year 2025 for our country? Actually, renewable energy sources contribute 7% to our domestic energy needs today. Some people have suggested that we need to rely more on these renewable energy sources to meet more of our domestic energy needs. One goal is to have 25% of our domestic energy needs met by using renewable energy by the year 2025.

43. America’s Energy Future www.25x25.org