Overview of the Emerging Bioeconomy

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Overview of the Emerging Bioeconomy

• Badger AgVest

Will Hughes c/o Gena Cooper and Roger
Kasper Department of Agriculture, Trade
Consumer Protection
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Todays Objectives

• Overview of BioIndustry Trends
• BioFuels
• BioPower
• BioProducts
• Wisconsins Vision

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Scope of BioIndustry
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Long Term Vision
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When Will the BioIndustry Happen?

• Achieving the vision will require an entirely new
  toolbox a set of technologies that is unique
  from that of the petroleum-based chemical
  industry.

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Fast uptake
10
Slow uptake
Time
2010
2000
Today
Source McKinsey and Company, 2003
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Clean Energy Projected Growth2005 2015
US Billions
Biofuels
52.5
15.7
Wind Power
48.5
11.8
Solar Power
51.1
11.2
Fuel Cells
15.1
1.2
0
20
40
60
80
100
120
140
160
TOTAL
167.2
39.9
Source Clean Energy Trends 2006
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Biofuels

• Ethanol Biodiesel Future Tech

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U.S. Ethanol Volume Trajectory
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Wisconsin Ethanol Plants

• 5 Operating Ethanol Plants
• Current Production 200 million gallons
• Badger Ethanol Monroe
• Ace Ethanol Stanley
• Utica Energy Utica
• United WI Grain Producers Freisland
• Western WI Wheeler

Ace
WWRE
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Utica
1
4
8 Proposed Ethanol Plants Proposed Production
605 million gallons 1. Necedah 2. Jefferson
3. Belmont 4. Sparta 5. Milton 6.
Arena 7. Wisconsin Rapids 8. Cambria
UWGP
6
2
8
5
3
Badger
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51 Wisconsin E85 Stations!
1 E85 Station Dispensing or Coming Soon
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Total US Corn Domestic Usage
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World Corn Production Consumption and Stocks
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Cellulosic Potential

• 2050US will consume 290 billion gallons of
  unleaded gas for transportation
• Grow switchgrass on 114 million acres
• Makes 165 billion gallons of cellulosic ethanol
• Cellulosic ethanol displays greenhouse gas
  emission reduction of 80
• Corn ethanol show reductions of 20-30

Source Argonne National Lab
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US Biodiesel Capacity Outlook
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Wisconsin Biodiesel Plants

• 2 Operating Biodiesel Producers
• Current production
• 2 million gallons
• Renewable Alternatives
• Green Bay
• WRR Environmental Services
• Eau Claire
• 4 Planned Biodiesel Facilities
• Proposed Production
• 105 million gallons
• Sanimax Energy Services De Forest
• North Prairie Evansville
• Didion Energy Cambria

Owen
WRR
Renewable
Cambria
Sanimax
NP
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Wisconsin BioFuels Production
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BioPower

• Energy Report Card
• Farm Power
• Wind Power

Source Larry Krom, Focus on Energy
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US Energy Consumption by Energy Source
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Renewable Energy Report Card
Source US Energy Information Agency
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Wisconsin Farm Power

• 16 farm digesters currently operational
• Representing 5,975 kW of rated capacity
• 5 farm digesters under construction
• Representing 1,850 kW of rated capacity, plus 400
  kW of peak capacity
• 15 additional farm digesters are planned

Source Larry Krom, Focus on Energy
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Beyond BioEnergy and BioFuels
Polyurethanes
Polyesters
Nylon
Lignin
Polyols
Polymers
Ethanol
BioFuels
Organic Acids
Monomers
Green Solvents (ethyl lactate)
Fibers
Specialty Chemicals
Biorefining
Agriculture
Amino Acids
High Performance Materials
Feed Additives
Pharmaceutical Precursors
Source Argonne National Laboratory
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BioProducts

• Chemicals
• Materials

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Substantial Influence of Industrial Biotechnology
in Selected Markets
160 - 280 billion
Biotech Inroads today Examples Biopharmaceuticals
3GT, polylactic acid Ethanol, adipic
acid, acrylamide Detergents, lubricants,
Fragrances, food chemicals
60 10-15 10-15 0-50 2010 Share
CAGR 5.5 3.5 2.0 3.0
1,400
Market Size USD billion
90 370 380
560
1,000
Fine Polymers Bulk Specialties
50
250
300
400
2000 2010
Source McKinsey and Company, 2003
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Renewable Product Matrix
DOE Biomass Program Multi-Year Technical Plan,
2003
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BioMaterials
BioMaterials include novel applications and
traditional items.
PLA A corn based polymer can be used as fabric
or compostable plastic.
Pine Sol Common household cleaner made from
natural Pine Oil.
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Ag Forestry Value Chain
Seed Development
Crop Production
Crop Processing
Crop Utilization
Food Fuels Pharm Automotive Aerospace Electronics

Food Feed Chemicals Materials
Pest control Quality Post-harvest Stress mgmt
Input traits Output traits Process traits Plants
as factories
BIOTECHNOLOGY
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Our plan for the emerging bio-based economy
will rely on our natural and agricultural
resources, historic strengths in manufacturing,
research and quality workforce. These world
class assets are what sets Wisconsin apart from
competitors. We hold local and producer ownership
as a significant priority in the development of
the bio-economy. Rod Nilsestuen, Secretary
Wisconsin Department of Agriculture,
Trade Consumer Protection
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Wisconsins Vision

• Green Growing
• Renewable Energy and Bioproducts
• Clean Technologies
• Distributed Ownership Benefits

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Wisconsins Resources
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Wisconsin Strengths

• Agriculture, Food, and Forestry
• Existing Manufacturing Infrastructure
• Food Processing
• Paper
• Major Manufacturers-engines/electronic
  systems/building material/plastics
• Emerging Ethanol and Biodiesel Industry
• World Class University
• Plant genome
• Engineering
• Licensing
• Quality Workforce

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Wisconsin Strategies

• Apply Technologies to Existing Industries
• Reduce energy costs
• Make new coproducts
• Increase competitiveness
• Strengthen Emerging Industries to Leadership
  Positions
• E.g. Ethanol, Biodiesel
• Develop Leap Frog Technologies
• E.g. enzymes, hydrogen

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Current Initiatives

• BIO Grant Program
• Energy Independence Program

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BIO Grants

• 2006 BioGrants
• 64 applicants
• Over 7 million requested.
• 12 proposals funded
• 1 million awarded
• Project Foci
• Biofuels
• Biopower
• Bioproducts

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Energy Independence Program

• WI Energy Independence Fund
• 50 million in low interest loans for WI
  businesses to expand production use of
  renewable energy.
• WI Energy Independence Tax Incentives
• Tax credits available to gas stations vehicle
  fleets to invest in E85 biodieselincreasing
  availability by more than 400.
• WI Energy Independence Grant Program
• 20 million in grants available for companies
  researchers developing new technology to increase
  renewable energy.

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Farm Business Based Opportunities

• Energy Efficiency/ Waste to Energy
• Anaerobic Digesters
• - BioGas
• - Electricity
• BioFuels and BioPower
• Current and future crops grass woody
• Other Renewable Energy
• Wind, Solar, Geothermal
• Future Biochemicals and Products