CAG Concerns Regarding Proposed Energy Research Park Gratiot - - PowerPoint PPT Presentation

CAG Concerns Regarding Proposed Energy Research Park Gratiot County, MI

CAG General Meeting June 21, 2006

What Do We Know At Present?

• 2 Sets of investors looking at alternative energy park

in/around Alma region

• 1 investment would be Ethanol Plant

– Local (state-wide) investors – Utilizing corn locally grown and processed – $ in the millions/tens of millions

• 1 Investment would be clean coal plant with

alternative energy research

– Out-of-state investors – $ in the billions

CAG’s Concerns

• Support local economy and monitor the environment

at the same time

• Learn from our past
• Maintain a strong, working relationship with both

industry and regulators along with maintaining strong ties with all of our representatives - federal/state/local

• Maintain a focus on wellness and sustainability

whenever we approach a situation

Brief Discussion of the Pros and Cons of Ethanol and Clean Coal Facilities

Ethanol - Basic Facts

• Ethanol (ethyl alcohol) is a combustible liquid

made from the fermentation and distillation of plant material - starches/sugars

• Ethanol is added to gasoline to increase oxidation

(raise octane rating) for slower, cleaner burn

• Ethanol can be made from a variety of plant

materials (mostly corn) and therefore is a renewable fuel

• Cars CANNOT run on pure ethanol at present

Ethanol - Basic Facts

• 30% of gas supply has ethanol blend
• 13% of corn grown in U.S. went to ethanol

manufacturing in 2005

• Other ethanol stock: sorghum, some grasses,

grain and ‘biofuels’ such as corn stalks, vegetable matter

• Wet and dry mill processes available:

– Wet mill - produces products in addition to ethanol such as corn gluten, corn meal, corn oil, corn syrup – Dry mill - produces mostly ethanol and feed for cattle

Ethanol - Dry Mill Plants

Ethanol - Pros

• Renewable fuel
• Extends gasoline supplies
• Makes gasoline burn ‘much’ cleaner
• Highly biodegradable - all aspects of process
• Can be utilized right now in cars and trucks
• Is good for Michigan and particularly Gratiot

County as this county produces more corn/acre than anywhere else in state

• With more research, may be solution to bio-matter

waste disposal

Ethanol - Cons

• Objectionable odor during processing
• Uses large volumes of water
• Some air contaminants are produced including:

– VOCs – Nitrous oxides – Methane – CO

• Will require air and water permits from MDEQ

Ethanol - Economically Viable?

• David Pimentel from Cornell University says:

– Energy in ≠ energy out – For ethanol to become a ‘substitute’ for gas, 97% of all farmland would need to grow corn

• So…how can ethanol be profitable?

– Large government subsidies for farmers – Large government subsidies for alternative energy implementation

Clean Coal Technology Integrated Gasification and Carbon Cycling IGCC

IGCC vs. Traditional Coal

• How is “coal” technology ‘alternative?’

– Coal is not burned as in traditional coal plants – Hydrogen is produced and captured – Main problem contaminants in traditional coal plants are captured (some sold as by-products) before entering the environment - including sulfur dioxide, nitrous oxides, mercury

• Traditional coal is pulverized and burned to create

steam --> turn a turbine --> generate electricity

IGCC

Pressure + Steam + Heat breaks down Coal to CO, Syngas, H Removal of Sulfur and Mercury / nitrous oxides Expanding syngas burned Turns turbine and heats Water producing steam

IGCC - Pros

• Uses a fossil fuel that is “plentiful” in the U.S.
• Produces significantly less particulate and other air

pollutants than traditional coal burning plants

• Is much more efficient than traditional coal burning

plants (42% and maybe as high as 60% in future)

• Uses about 40% less water than a traditional coal

burning plant

• Produces 20% less carbon dioxide
• More expensive per Kwh than traditional coal

burning but cheaper than natural gas plants

• Carbon dioxide sequestration is possible and CO2

waste can be utilized in oil recovery

IGCC - Cons

• Still produce enough air pollutants to warrant

permits including: nitrous oxides, particulates and CO

• Noisy
• A little higher cost per Kwh than traditional coal

burning plants but can be competitive if working with other energy sources

• Slag produced is inert but needs to be disposed of or

reused

• Trucking coal slurry in and waste sulfur and

mercury out presents risk

Proposed CAG Agenda

Work With Our Strengths

• Stay in touch with investors, city officials,

county officials and state and federal representatives on this issue

• Establish working relationship based on the

model CAG has developed with regulatory agencies, industry and government

• Maintain relationship with academic community

(Alma College) to emphasize alternative energy research and reduce environmental impact

• Learn from our past and promote environmental

stewardship, planning and sustainability