Growing the Bioeconomy

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Growing the Bioeconomy

• Michael Ott
• BIOWA

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Overview

• BIOWA
• BIOWA Capital
• Biobased products
• Energy information
• Biorefinery example

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Research Institutions
Commodity Manufacturers
Entrepreneurs
Producers
BIOWA
BIOWA Capital
Economic Developers
Biotechnology Companies
Environmental Groups
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What does BIOWA do?

• Makes it easier for companies to do business
• Strategic partnerships
• Business to business
• University to business
• Investors
• Business planning
• BIOWA Business Services
• Healthcare
• Insurance
• Retirement planning
• Equipment and Supplies

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What does BIOWA do?

• Facilitate projects
• Biorefinery
• Input/Output database
• Increase awareness of biobased products
• Public speaking
• Legislative input
• Biobased certification (coming soon)

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What does BIOWA do?

• Consulting
• Technology
• Finding best technology for individual situations
• Establishing win-wins
• Capital
• Links to appropriate investors
• Advice on capital formation

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Business Problem Solving

• Solving unique problems is fun and valuable
• Contingency planning
• Examples
• Rail car shortage
• Licensing technology
• Screening acquisitions

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New New Thing

• BIOWA Capital is looking to make investments in
  the bioeconomy
• Ethanol or Biodiesel plants
• New technologies
• Infrastructure

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Biobased Products

• Biofuels are the best known example
• New fuels from byproducts
• Home building products
• Perceived to be higher priced, lower quality
• THATS NOT TRUE ANYMORE!

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Fun Facts

• Compared to petroleum, per unit of energy,
  biofuels production creates 100X jobs
• If you harnessed all the waste from a city of one
  million people, you could make enough ethanol
  for
• 56,000 Americans
• 360,000 French
• 2,600,000 Chinese

World Bank Study
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Why do we need biorefineries?

• In 2005 the US produced 4 billion gallons of
  ethanol in 2005
• However, we consumed 140 billion gallons of
  gasoline
• If we produce more than 15-20 billion gallons
  from grain, the demand for corn will dramatically
  rise and adversely affect the farm economy
• Much larger volumes can be made from cellulosic
  feedstocks

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Ethanol and Biodiesel

• Iowa is the leading producer of corn, soybeans,
  ethanol, biodiesel, pork and biomass
• Syzygy of efficient technology, cheap feedstock
  and high oil prices leads to very profitable
  biofuel production
• BIOWA makes it better

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Map of Ethanol Plants
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Map of Biodiesel Plants
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Energy Balance

• Fuel
• Ethanol
• Biodiesel
• Gasoline
• Cellulosic Ethanol

• Energy Balance
• 1.4
• 3.2
• 0.88
• 22?

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Biorefinery

• Complex project with many entities who have
  different timelines, motivations and goals.
• Legislative input is required
• BIOWA helps principals manage their risk and use
  their time more effectively

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Biorefinery Products

• Break down to a common source build up from
  there
• Fuel is the main product
• Byproducts
• Commodity chemicals
• Natural fibers
• Electricity
• Feedstock dependent

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Why is a biorefinery right for Iowa?

• Much infrastructure is in place
• Talented, experienced workforce
• The evolution of biofuel processing
• Co-products, feedstocks and logistics need to be
  solved

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Example 1

• In an area with high density of corn, stover can
  be harvested rather easily
• BIOWA partners with equipment makers to create
  new farm equipment that harvests according to the
  needs of the biorefinery
• Vast majority of cellulose is converted to
  ethanol
• Fibers in corn stover can be used in furniture,
  ceiling tiles, etc
• Therefore a process that saves long fibers will
  be utilized, rather than one that burns waste
  products

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Example 2

• On an island with large concentrations of MSW or
  other carbon based waste
• Gasification is more efficient because it handles
  feedstocks with variable composition
• Vast majority of waste is converted to ethanol
• Electricity can be created as a byproduct
• On an island, so electrical prices are much
  higher than in the Midwest
• Therefore economics make much better sense using
  this technology for this example.

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Stage 1 of integrated operations

• DDGs from ethanol plant feed cattle
• Anaerobic digester creates biogas from cow manure
• Biogas heats ethanol plant, reducing operating
  costs and increasing profitability

• www.e3biofuels.com

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Biorefinery Schematic
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Conclusion

• Biobased products are here to stay and are
  fundamentally better than petroleum based
  products
• BIOWA works with all players to create the best
  biorefinery for any given area
• Variables are interdependent, so a global view is
  essential
• Energy vs. Information

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Websites to visit

• www.biowa.us
• www.biowacapital.com
• (coming soon)
• www.bioeconomyconference.org
• Feel free to contact me with any questions at
• biowa.us_at_gmail.com