New Business Model Fiber, Fuel and Energy? Rob Davis Forest Energy Corp BTEC May 25, 2010 Scottsdale, AZ.

New Business ModelFiber, Fuel and Energy?

Rob DavisForest Energy Corp

BTEC May 25, 2010

Scottsdale, AZ

Renewable EnergyWindSolarGeothermal

Biomass

What is Biomass?

Any Organic material not derived from fossil fuel.

FERC PURPA ‘80-

And then there was politics ‘08 Farm BillRenewable Fuels BillBCAPAmerican Power ActEach State IndividuallyDictating forest or air policy w/ energy policy

Do you have biomass?ExtraConsistent SupplyConsistent QualityCost

Biomass advantage - constant

CharacteristicsSpeciesForms

BarkSlashHog FuelChipsPelletsBriquettes

Characteristics

MoistureAshAsh Fusion TempContaminantsEnergy Content - Btu

SourceWhere does it come from?

RenewableSustainable

Will there be a Recapture of carbon?

What can you do with it?Use itSell itProduce a productProduce an Energy product

FuelElectricityTransportation FuelsThermal Energy

Processing

PhysicalSizeMoistureDensifying

Doesn’t change energy content, makes consistent and more economical to handle.

ProcessingPyrolysisGasificationTorrificationHydrolysisCombustion

ProductsEthanolHydrogenMethane CO2LigninChar

Markets – Selling Fuel or Selling Energy?

In - House Residential Commercial Industrial Utility

ValueIn – House Elec, Thermal, CHPResidential Thermal vs. NG, FO, Prop,

Elec Commercial Thermal vs. NG, oil,

propane, elecIndustrial Elec, Thermal vs. NG,

coal Utility Elec vs coal

IncentivesFederal & State

Electricity RECFuelsPTCITCBCAP Moving target even after legislation passesHow will it be administered e.g. BCAP

Emissionsgood and bad

Particulate -Nox +-Sox +Other -Carbon ?

EfficiencyThe Prudent Use of our Resources

Perhaps a move in this direction

Economics

Biomass Supply - acceptable quality and source

Biomass Cost Markets near youSelect Process / ProductActual CostReliance on incentives

Opportunity Low cost of assured biomass

supply Renewable demand Lower cost biomass energy Mandates / Incentives / Credits Future Carbon reduction incentives Consolidate resources

Rob DavisForest Energy Corporation

Show Low, AZ928-537-1647

[email protected]

BTECBiomass Thermal Energy Council

1211 Connecticut Ave NW, Suite 600 Washington, DC 20036-2701

202-596-3974 tel • 202-223-5537 fax • www.biomassthermal.org