WIND ENERGY ~ NAFTA Institute ~ Praxis Strategy Group Presentation 6 12 09

ALTERNATIVE ENERGY

Dave RobyChief Operating Officer

Praxis Strategy Group is a growth strategy company that works with

communities, economic development corporations and agencies, research

and development organizations, and companies to develop and implement

strategic initiatives and business ventures.Financial challenges & risk

profile of new industries

An eight-time winner in the Small Business Innovation Research program

and a 1997 winner of SBA’s National Tibbetts award for contributions to and

success in the SBIR Program.

Business Consulting & funds sourcing

Military Base Assessment & Realignment projects

Managing Center for the Red River Valley Research Corridor – founded by

Senior Senator Byron Dorgan

Have developed & executed over 20 Action Summits

Praxis Energy Group LLC

NewGeography.com

Current International projects in London & Ghana

Sister company to Flint Communications (ad agency) & Media Productions

(event planning and execution unit)

400+ million People

In the USA by 2050

Source: Bureau of the Census, CensusScope

0

20

40

60

80

100

120

140

1980 1990 2000 2010 2020 2030

Renewable/Other

Hydropower

Nuclear

Coal

Natural Gas

Petroleum

Source: Annual Energy Outlook. Report #:DOE/EIA-0383(2006)

US Energy Consumption by Source: 1980-2030 (quadrillion Btu)

OPEC Remains Largest Oil

Source in 2030 on Current Path

0%

10%

20%

30%

40%

50%

Canada Mexico North

Sea

OPEC Other

Middle

East

Other

Latin

America

Other

Africa

Other

Asia

% Total Imports in 2030

National Security

ConcernsOur growing dependence on unstable parts of the world

Dangerous and costly military commitments connected to energy needs

Vulnerability of energy flows at global choke points

Goals of North American

Energy Community

Independence from unstable authoritarian governments via a full energy mix of pooled resources from US, Canada & Mexico

Reduction in fossil fuel emissions, boosting alternatives + efficiency and conservation improvements go green both ways

Creating basis for sustainable economic growth for all of North America

When Oil Alternatives are Viable

Biodiesel * $80

US Corn-based ethanol * $60

Shale Oil $50

Tar sands, Brazilian cane-based ethanol,

Gas-to-liquids, Coal-to-liquids $40

Cambridge Energy Research Associates; The Economist. April 22nd, 2006. *Excludes the impact of tax credits

Biomass Resource Capacity Available by County

Biomass Fuels the Economy

Federal Renewable Fuels Standards Impactrequiring production of 7.5 billion gallons by 2012.

the reduction of crude oil imports by 2 billion barrels

reduce payments to foreign oil producers by $64 billion.

potential to create 234,840 new jobs in all sectors of the economy

increase household income by $43 billion

add $200 billion to GDP between 2005-2012

create $6 billion in new investment in renewable fuel production facilities

Bio-fuel Potential In U.S.

5.6 billion gallons of ethanol now in production

6 billion gallon capacity under construction

Cellulosic potential is enormous - provided technical

challenges are overcome

DOE and USDA

goal of replacing 30% of

transportation petroleum

used in US by 2030

Projected Corn Ethanol Production. . . accounts for <10% of motor fuel needs

0

2

4

6

8

10

12

14

2007/08 2009/10 2011/12 2013/14 2015/16

Bil

lio

n g

all

on

s

With credit/tariff W/O credit/tariffUSDA analysis

Biodiesel Plants

CARD: Iowa State University 5/2007

Projected Soy Biodiesel Production. . .w/o tax credit (USDA analysis)

0

100

200

300

400

500

600

700

800

2007/08 2009/10 2011/12 2013/14 2015/16

Millio

n g

allo

ns

With credit W/O creditUSDA analysis

The Most Plentiful Resource

275 billion tons of Recoverable Coal

Coal is Electrifying

50+% electricity generated from coal in US

Abundant, cheap, widely distributed

Clean coal technologies available now

Carbon capture and sequestration

Can be mixed with biomass to lessen emissionsCoal = high rank biomass

Can be gasified and liquifiedCoal = heavy oil

Hydro Power #1 Renewable

in North America

0

200

400

600

800

1000

1200

Canada US Mexico

Fossil/Nuke

Other Renew

Hydro

Total Gigawatt Electricity Generating Capacity (2005)

National Center for Hydrogen Technology

University of North Dakota

Energy and Environmental Research Center

Solar Potential is Regional

Wind could generate as much as

11 trillion kilowatt-hours of electricity each

year on the Great Plains, Great Lakes,

Rocky and Appalachian Mountains.

50,000 megawatts in Canada

Department of Energy Announces $93

million to Support Wind Energy – April

2009

Cross Border Transmission ~ MATL

It Can Be Done!

Current Transmission in Mexico

Barriers & Bottlenecks Uncertainty about the future

Financial challenges & risk profile of

new industries

Materials and construction

– Escalating costs and shortages

– Contractors running at full capacity

Distribution and transmission

– Highly complex, highly integrated

Siting and permitting

TRANSMISSION

What Government Can Do Increase incentives for domestic production of

energy, with gradual but steady focus on renewable and clean production

More investment in and incentives for energy efficiency technologies and conservation methods

Early adopter of new technologies, e.g. hydrogen, bio jet fuels

New investment in transmission lines for energy, particularly wind, solar and other renewable forms

Communities, Regions

& States Take the Initiative

• State tax incentives, credits & goals

• Community-based energy & economic development initiatives

• Multi-jurisidictional energy initiatives, e.g. Plug-In Partners National Campaign

Wenatchee, Washington

“If you want to have good ideas you must have many ideas.”

Linus PaulingQuantum chemist & biochemist

Nobel Prize Winner (2 times)

Become a possibility factory!High Throughput – Combinatorial

Questions and Comment