THE SOUTH

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THE SOUTHS FORESTPRODUCTS INDUSTRY of the
FUTURE LUMBER-VENEER-POLESCOMPOSITE
PRODUCTSPULP AND PAPERENERGYBIO-CHEMICALS
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THE GLOBAL ECONOMY BRINGS NEW CHALLENGES TO THE
FOREST PRODUCTS INDUSTRY. HOW WILL WE DEAL WITH
THEM?
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Humanitys Top Ten Problemsfor next 50 years

• ENERGY
• WATER
• FOOD
• ENVIRONMENT
• POVERTY
• TERRORISM
• WAR
• DISEASE
• EDUCATION
• DEMOCRACY
• POPULATION

Taken form Dr. Smalley, Rice University
2003 6.5 Billion People 2050 8-10
Billion People
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(No Transcript)
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ENERGY SHORTAGE OUR OPPORTUNITY

• Current worldwide demand for oil
• 81MM barrels/day
• Production at 95 capacity
• Demand in 20 years
• 121MM barrels/day
• Where will it come from?
• Unstable countries and alternative sources
• Source balance will change over time
• Natural gas
• Shortage in 10 years
• Price high and climbing- up 17 last week

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THE WOOD ENERGY andBIO-CHEMICALS MARKET

• High volume
• Non-cyclical
• Primarily small diameter planted pine
• Manage forests to include new uses
• Success will put more acres in trees
• Failure will take acres out of trees

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THE TIMBER RESOURCE

• Abundant
• Renewable, Sustainable, Expandable
• Grow pine trees faster and bigger
• Harvesting capacity in place and under-utilized
• Growing and harvesting more trees improves the
  environment
• Long history of success

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TREES CAN BE USED FOR ENERGY AND BIO-CHEMICALS

• Co-fire with coal
• Should be our first priority
• Proven at up to 10 mix, sawdust size
• Georgia utilities use about 30MM tons/yr.
• Utilities have little incentive to include wood
• 250 year coal supply, relatively cheap - PRB
• We need to help with legislation to provide
  financial incentive for utilities to use wood as
  fuel
• Convert to bio-oil
• More dense (higher BTU/lb)
• MS State got 1.4MM grant wood preservative
• Gasify
• High capital cost

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THE SOUTHERN ALLIANCE FOR THE UTILIZATION
OF BIOMASS RESOURCES(SAUBR)A Partnership for
Rural Development Through the Production of
Energy and Chemicals from Forests and Farms in
the Southern United States
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Purpose of the Alliance

• Create a new industry which will use bio-mass as
  an energy and chemicals feedstock new high
  volume, non-cyclical USES for forest and farm
  crops TREES
• Small diameter trees
• Logging residue(Limbs, tops, un-merchantable)
• Stimulate rural development
• Restore jobs lost
• Create new jobs, in the woods and in plants
• Decrease dependence on fossil fuels

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Why an Alliance is necessary

• Conventional market forces too slow and currently
  in the wrong direction
• Get our arms around IT
• Put the pieces together
• Need combined effort for political power and
  efficiency
• Quicker COMMERCIALIZATION

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What SAUBR Will Do

• Combine strengths and resources of members
• Assist in legislative process
• Is a center for communications, co-operation,
  collaboration
• Conduit for information exchange
• Eliminate duplication
• Joint projects by members

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Current Members

• The Alabama Forestry Association
• The South Carolina Forestry Commission
• The Georgia Forestry Commission
• The Alabama Forestry Commission
• The Alabama Department of Agriculture and
  Industries
• The Alabama Department of Economic Community
  Affairs (ADECA)
• The Alabama Development Office (ADO)
• Auburn University Department of Agronomy and
  Soils
• Auburn University Forest Products Development
  Center
• Forest Energy Associates
• Forest Investment Associates
• The Gas Technology Institute
• Mississippi State University Department of Forest
  Products
• The South Carolina Forestry Association
• The South Carolina Department of Commerce
• The Sugar Processing Research Institute
• The University of Alabama Center for Economic
  Development
• The University of Alabama at Huntsville Alabama
  Technology Network

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Current Members - continued

• Green Energy Technologies
• The Texas Forestry Association
• The University of Georgia Warnell School of
  Forest Resources
• Vinyard Technology Company, Inc.
• The Alabama Treasure Forest Association
• Jasper Lumber Company
• Alliance Biomass Energy
• Forestry Unlimited
• Earth Resources
• Farley Forest Products
• Taylor-Made Transportation
• Timberland Harvesters, Inc.
• Southeastern Lumber Manufacturers Association
• Cooper T. Smith Timberlands
• Miller and Company
• B.A.S. Timber Company
• The Forest Landowners Association
• Power Generating, Inc
• U.S. Forest Service, Forest Products Laboratory

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Current Members - continued

• Forest Resource Consultants, Inc
• The Mississippi Forestry Association
• Eprida
• Mississippi Alternative Energy Enterprise
• Santee Cooper
• Southern Region Extension Forestry
• Stuckey Timberlands, Inc.
• Southern U.S. Timber Properties, Inc.
• Mainstream Business Enterprises, LLC
• Fulghum FibreFuels, LTD
• Sterling Planet
• The Mississippi Biomass Council
• Southern Company
• Crain Consulting
• The University of Alabama Department of Chemical
  and Biological Engineering
• US Forest Service, Southern Research Station
• University of Tennessee

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Leadership

• Chair Dr. Liam Leightley, MS State
• Chair Elect Mr. Gene Quick, Forest Energy
  Associates
• Secretary Mr. Freddy Thompson, Jasper Lumber
  Company
• Treasurer, Dr. Scott Spear, Univ. of AL
• 12 Other Directors
• Dr. Dale Threadgill, UGA Faculty of Eng.
• Fred Allen

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Home Base

• University of Alabama in Tuscaloosa
• Alabama Institute for Manufacturing
  Excellence(AIME)
• We owe these people!!

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Mode of Operation

• Not-for-profit(501)(c)(3). UA Capstone Fnd.
• Maximum effectiveness and efficiency
• Cost - 200-250M/year for South
• With free internal support
• Enormous return for taxpayers investment
• Georgia pulpwood, 1999 21MM tons
• Souths pulpwood, 1999 135.9MM tons
• Stumpage price up 0.10/ton, payback is
• - 2.1MM in Georgia, 13.9MM in South
• Not a long-term organization 10 yrs.

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Working Groups

• Legislative Education
• Public Education/Outreach
• Technology/Technology Transfer
• Research
• Funding
• Policy
• Economic/Rural Development
• Forest Related Industry
• Agriculture Related Industry
• Membership

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Whats Next?

• SAUBR now formed must deliver
• PUT CONVERSION PLANT IN PLACE
• Develop and implement Strategic Plan
• Well coordinated Southern regional political
  strategy is first priority
• Build congressional, state and local support
• Get operational funding - 200-250M/yr.
• Need part-time Director
• First Conference October 25-26, 2004
• Joint (SFRP) Conference August, 2005
• Spread the word, add votes

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WHAT SHOULD WE DO?

• Have industry summit meeting(s)
• Areas within Georgia?
• State
• Regional(Southeastern US)
• Build support
• Be active in SAUBR Working Groups
• Sub-group in Georgia
• Let industry associations work for us
• First results will be politically driven

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Your Thoughts?

• Need your thoughts and suggestions
• Please give me a note
• Whatever we do Must do it ourselves
• Must speed up the change process
• YOU CAN HELP!!