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“An Update on Range Fuels’ Soperton Plant Project”
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Range Fuels’ Focus
Commercial production of cellulosic biofuels, including cellulosic ethanol, and clean renewable power from renewable biomass that cannot be used for food, and is sustainable, low cost and in excess supply.
22
Range Fuels History
Formed in June 2006 by Khosla Ventures to commercialize cellulosic biofuels
Access to $82MM in federal and state funds and $80MM loan guarantee
Broke ground in Soperton, GA in November 2007 for first U.S. commercial cellulosic biofuels plant utilizing woody biomass
On April 1, 2008 announced the completion of an oversubscribed Series B round of private financing greater than $100 million
33
Range Fuels History
In January 2009 the U.S. Department of Agriculture awarded the company a conditional commitment for an $80 million loan guarantee. AgSouth Farm Credit, a leader in agricultural and rural loans and part of Farm Credit Services, will be the lead lending agency on the loan
In 2009 Range Fuels personnel are moving to Georgia and operating personnel will be hired
Cellulosic biofuels production from the Soperton Plant scheduled to commence Q2 2010
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Partners are Crucial
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Limitations of Current Technology
Current production technologies use corn or sugarcane― Limited max. capacity (U.S. corn 15 BGY); tight margins― Import tax of $0.54/gallon for Brazilian ethanol
Food versus fuel― Low land efficiency for fuel production ― Sharp increase in feedstock prices ― Depleting water tables― Wide price fluctuations due to weather― Resistance from grocery and livestock industriesLower fossil energy ratio― Corn at 1:1.4― Sugarcane at 1:8― Cellulosic ethanol at 1:10
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2005 Energy Policy Act Title XVII― Established aggressive support for renewables through RFS1
2007 Energy and Independence Security Act― RFS2 with emphasis on growth in cellulosic biofuels ― 36 BGY “renewable fuels” mandated by 2022
Includes 21 BGY “advanced biofuels,” with 16 BGY from “cellulosic biofuels
2008 U.S. Farm Bill― Programs targeted to all facets along the biofuels supply chain
Growers, harvesters, transporters and producers
Increasing Biofuels Support
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Strategic Advantages
Cheaper, less volatile feedstockFlexible “high volume” feedstock supply
Producer of low carbon biofuels
Sources: Bloomberg and Timber-Mart South
0
50
100
150
200
250
2000 2001 2002 2003 2004 2005 2006 2007 2008
Volatility: Corn vs. Pulp Prices$ / Ton
CornDelivered Pulpwood – GA
― Wood chips― Municipal waste― Industrial waste― Manure
― Switchgrass― Corn stover― Olive pits― Coal
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Stable Pricing, Large Availability Using Woody Biomass
High land efficiency for cellulosic crops; low water and fertilizer inputsCellulosic availability fits demand; fewer transportation issues
U.S. Ethanol Biorefinery Locations
Source: Renewable Fuels Association
- Corn-Ethanol Production
- Major Gasoline Consumption
- Biorefineries in Production
- Biorefineries under Construction - 95% or more Federal area
- 25,000 acres of Forest Land per dot
Non-Federal Forest Land Density, 1997
Source: U.S. Department of Agriculture
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The Technology
1010
Technology Development
4 generations of biomass conversion testing Pilot-scale― K2A Optimization Plant
~ 5,500 hours on wood feedstock> 2,200 hours alcohol production
Catalyst systems― CC10s (2)― CC100― ~ 30,400 test hours
K2A Optimization Plant CC1000 Catalyst Reactor
― CC400― CC1000
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Technology vs. Competition
Dependent on supplier enzyme costs; High energy costs LowExternal Dependency
Locked in to initial feedstockAbility to utilize lowest-cost feedstock
Feedstock Cost
Limited by enzymesMultiple syngas derivativesProduct Options
Dilute solutions for fermentation increase total water usage
Competitive with advanced corn ethanol plants
Water Usage
Challenged by ability to process only a portion of biomass
Ability to process entirety of biomassYield (gallons/ton)
Enzymes feedstock-tailored; non-trivial to switch feedstock
Can vary by type, size, mix, moisture content; polyculture compatible
Feedstock Flexibility
Bio-Chemical ProcessesRange Fuels
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The technology can utilizei. Pine and hardwoodsii. Pulpwoodiii. Tops and limbs (slash)iv. Understoryv. Pre-commercial thinningsvi. Urban debrisvii. Herbaceous energy cropsviii. Other
Benefits of Technology Extend to Flexibility in Feedstock Use
• Fiber structure is unimportant
• Focus on delivered energy cost ($/mmBtu)
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Range Fuels’ Soperton Plant - The Right Location
Soperton, GA
1414
Range Fuels Soperton Plant
Plant is permitted for 100MM GPY cellulosic biofuels
Project will be completed in phases
Phase 1― Construction is underway
Equipment is being delivered to the siteConstruction activities increasing weekly
― Mechanical completion in Q1 2010 and commissioning in Q2 2010― Consumption of ~ 250 tons of renewable biomass per day
beginning with “clean chips”
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Aerial View of Soperton Plant
Range Fuels DrCommerce Dr
Warehouse/Offices
Process Area
Woodyard Area
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Soperton Plant Phase 1 - Process Area
Devolatilization Section
Reformer Section
Quench Section
Catalytic Conversion
Section
Pressure Boundary Feed
System
Gas Cleanup Section
Product Storage
Area
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Soperton Plant Phase 1 - Woodyard
Dryer
Truck DumpScale
ReclaimerChip Pad
Hammermill
Day Storage
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Today – existing forestry resources― Pulpwood― Fuel chips ― Mill residuals
Additional phases and future plants― Getting more out of what’s there
o In forest residue and un-merchantable timbero Pre-commercial thinnings
― New sources of renewable biomasso Purpose grown trees o Herbaceous energy crops
― Other non-food biomass feedstocks― Maintain focus
Feedstock Supply - The Supply Chain Will Evolve and Grow…
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Range Fuels’ Focus
Commercial production of cellulosic biofuels, including cellulosic ethanol, and clean renewable power from renewable biomass that cannot be used for food, and is sustainable, low cost and in excess supply.