The Truth about Alternative Energy

1. The Truth about Alternative Energy Michael Ott Director, Iowa BioDevelopment Indian Hills Community College otterm@gmail.com August 19th, 2005

2. Overview • Eddyville facility • Why are alternative fuels important? • Ethanol • Biodiesel • Wind and solar • Q & A

3. Eddyville Complex

4. Why Alternative Fuels? • 312 Billion gallons of oil were consumed in the US in 2004, 138 Billion gallons of motor gasoline¹ • By 2008, 8 Billion gallons of ethanol will be produced • Global production of oil continually increases, so far outpacing demand • Hubbert’s peak has yet to be reached ¹ http://www.eia.doe.gov/emeu/cabs/usa.html

5. Ethanol • Corn vs. Sorghum vs. Organic Waste • Wet vs. Dry Milling • Input • Byproducts • Cellulosic ethanol • Genetic modifications to corn • It does NOT take more energy to produce than it creates, allowing for the sun • Zero Net emissions occur

6. Ethanol Process

7. Can I use ethanol in my car? • Ethanol increases octane rating • E10 vs. E20 vs. E85 • On older cars or lawnmowers, it can be rough on lines and seals • Burns cooler and slightly less efficiently • Flex-fueled cars can recognize the fuel and adjust accordingly

8. Ethanol at Gas Stations • Ethanol is subsidized in Iowa by a tax credit to gas stations • Ethanol cannot travel through pipelines with regular gasoline • At $2.40/gallon, ethanol is price competitive

9. Ethanol and Biodiesel • Carbon Dioxide (CO2) and Dried Distiller’s Grains (DDGs) are byproducts of the dry milling process • DDGs are used in cattle feed • This helps farmers realize a return on their investment • The oil in DDGs can be extracted, and then turned into diesel fuel

10. Biodiesel • Only 50 Million gallons of biodiesel were made in 2004, twice the output of 2003 • A new plant in Iowa Falls will make 37.5 million gallons • Vegetable oil is reacted with alcohol, giving glycerin as a byproduct • 3.2:1 energy balance makes it the most efficient alternative fuel

11. Biodiesel facts • It can be used in any ratio • B2 vs. B5 vs. B20 vs. B100 • It has a natural lubricating effect • Zero sulfur emissions • It has a solvent effect • Microbial growth problems just like regular diesel • It is less toxic than NaCl

12. Biodiesel usage • All new tractors made by John Deere • Many cars in the Canadian government fleet use biodiesel • Buses in Atlanta and Chicago • It’s easy to make at home, but remember to pay your taxes or dye it red • EU regulations support biodiesel, but no standards have been set

13. Wind and Solar • Wind power works well in certain suitable local areas • Self optimizing turbines • Environmental concerns • Solar power is becoming much more efficient • Rooftop panels • Focused beam units

14. Wind & Solar • Engineering advances will decrease price and increase adoption by the general public • Typically takes between 3-12 years to recoup investments, and environmental concerns aren’t a factor for the general populace

15. Conclusion • Obviously, energy problems are on the horizon • Alternative fuels offer near term solutions • Ethanol and biodiesel offer great environmental benefits and decent economic benefits • Off-the-grid solutions are emerging

16. Websites to visit www.ethanol.org www.ethanoltoday.com www.biodiesel.org Feel free to contact me with any questions at: otterm@gmail.com