By Charles Bensinger Vice President EDDORADO BIOFUELS LLC WORKFORCE TRAINING FOR THE GREEN ECONOMY Santa Fe Community College June 25, 2008 A New Generation.

by Charles Bensingerby Charles BensingerVice PresidentVice President

EDDORADO BIOFUELS LLCEDDORADO BIOFUELS LLC

WORKFORCE TRAINING FOR THE GREEN ECONOMYWORKFORCE TRAINING FOR THE GREEN ECONOMY

Santa Fe Community CollegeSanta Fe Community CollegeJune 25, 2008June 25, 2008

A New Generation of Biofuels A New Generation of Biofuels for New Mexicofor New Mexico

Common Biofuels MythsCommon Biofuels Myths

Myth #1: We have to choose between biofuels and food. It’s Food vs. Fuel.

Fact: A recent USDA analysis concluded: given an anticipated 40% increase in

world food prices, increased demand for biofuels feedstocks is responsible for only 3% of that increase.

Myth #2: Corn diverted to make ethanol is depriving people of critical food products.

Fact: Most U.S. corn is grown for animal feed. Ethanol is produced from field corn, not sweet corn. Field corn is indigestible to humans in its raw form.

Fact: 87% of U.S. corn is fed to animals. 1.5% is used for cereals. Human uses account for about 10% of US corn use.

Fact: Alcohol is not protein.

When field corn is processed for ethanol, only the starch portion is used to make the alcohol. The fat, protein, vitamins, minerals and other vital nutrients are passed along to the animal feed co-product known as “Distillers Grains.”

The U.S. Food DollarThe U.S. Food Dollar

Food input is 19¢ labor is 38¢ Marketing is 43¢

Real Causes of Food CrisisReal Causes of Food Crisis

• Hedge fund commodities speculation on grains resulting from Australian drought

• Hedge fund speculation on crude oil, forcing crude oil prices to escalate

• Bad weather and weak dollar

• 200 million more meat eaters in Asia

• Increases in labor costs

• Increased biofuel feedstock production

If you have to single out the greatest contributor to higher prices, it is ENERGY. Fuel contributes cost to food at every step: growing , production, packaging and shipping -- Ed Maxiner, editor of the Kiplinger Agricultural Journal

Oil industry insiders recently noted that commodity speculation likely accounts for 25% to 50% of the price of fuel. That’s $1 to $2 per gallon.

Both food and fuel are critical components of survival. Both must be affordable and accessible to all. Really, we are now confronting a Food AND Fuel Crisis.

We need to regulate financial commodities speculation and immediately begin to develop local food and fuel production.

The Food AND Fuel Crisis

The Benefits of BiofuelsThe Benefits of Biofuels• U.S. ethanol production has

reduced foreign oil imports by 140,000 barrels/day, representing a savings to American motorists of $6.6 billion a year.

• Merrill Lynch, financial analysts, concluded that ethanol is helping to keep gasoline prices 15% to 27% lower than they otherwise would be.

Benefits of Biofuel Production in Benefits of Biofuel Production in New MexicoNew Mexico

• New job creation

• Pride in developing new advances in use of unconventional feedstocks

• Greater fuel self-sufficiency

• Lower fuel costs

• Bolstering of rural economies

• Conversion of “waste materials” to value- added products

Potential NM Biofuel FeedstocksPotential NM Biofuel Feedstocks

• Sweet Sorghum: 500 – 1,000 gals/acre

• Wild cattails: 1,075 gals/acre

• Sugar beets: 400 -770 gals/acre

• Buffalo Gourd: 900 gals/acre

• Jerusalem artichokes: 550 -750 gals/acre

• Algae: 5,000 – 30,000 gals/acre

• For comparison: corn is 200-400 gals/acre; soy is 60 gals/acre

Regional Algae to Biofuel ProjectsRegional Algae to Biofuel Projects

New Mexico Center for Excellence in Carlsbad uses open pond system

Valcent Vertigro SystemValcent Vertigro SystemEl Paso, TXEl Paso, TX

• Valcent “Vertigro” algae vertical bag greenhouse growing system

• Claims potential of 30,000 gals of biodiesel/acre

Colorado State University Colorado State University Algae BioreactorAlgae Bioreactor

VM Technology, Santa FeVM Technology, Santa Fe

Algae Production Field Bioreactor

EldoradoEldorado Biofuels, Santa Fe Biofuels, Santa Fe

Research and Development project underway in Santa Fe with intention to:

• Develop low-cost, high efficiency conversion process of algae to biodiesel and algae to ethanol

• Design and develop commercial algae to biofuels production centers

• Create training programs for operators

Eldorado Biofuels R&D Center

Algae Production in Lab

Alcohol Fermenter & Distiller

Eldorado Biofuels LLC

Biofuels in Santa FeBiofuels in Santa FeBiofuels

Pumps in Santa Fe:

Installed and Operated by Renewable Energy Partners of New Mexico

Horseman’s Haven Baca Street

Nambe Falls Travel Center Nambe Falls Travel Center Biofuels StationBiofuels Station

E85 ConverterE85 Converter

Installed in Subaru Impreza

Order from www.whitelightning.net

Typical Biodiesel Users in Santa Fe Typical Biodiesel Users in Santa Fe

• Federal Express Co.• City of Santa Fe• Santa Fe Southern Railroad• PNM• Pueblo school buses• Wide range of diesel vehicles

The RailRunnerThe RailRunnerFirst US Commuter Train running on Biodiesel B20First US Commuter Train running on Biodiesel B20

Cellulosic Conversion to Ethanol Cellulosic Conversion to Ethanol

Gasifier

Wood Chips

AlcoholSynthesizer

MRF

Ethanol

MSW

Natural Gas Electricity

Feedlot Manure

Fertilizer Processor Markets

• Pyrolytic Reforming Gasifier

– Wide Range of Applications;• Municipal Solid Waste (MSW) • Forest and Wood Waste• Agricultural Waste

(Pecan Shells, Rice Hulls, Wheat Straw, Bagasse, etc.)• Animal Waste

(Hog and Cow Manure, Offal, etc.)• Biosolids • Coal and Coal Shale• Plastics• Carbonaceous or Petro Chemicals

– Waste Streams can be mixed

What’s Needed to make New Mexico a What’s Needed to make New Mexico a National Center for New Generation National Center for New Generation

Biofuels Production?Biofuels Production?

• Basic biochemical biofuels research by NM Universities and National Labs

• Programs established at SFCC to train skilled operators for employment at future biofuels facilities

• Non-conventional feedstock field research undertaken by state colleges and state agricultural agencies

• Financial and business assistance for entrepreneurs

Contact Info for Eldorado Biofuels:Contact Info for Eldorado Biofuels:

• Charles Bensinger, Vice President, 505-466-4259

• Paul Laur, President, 505-670-8490