BIOBUTANOL that. Everything has a little bit different chemical make-up, and by narrowing that just a little bit, it gives us a narrower range of chemistry that we have to deal with in the gasifier and the catalyst unit.” Oregon currently has an estimated 9.8 million bone-dry tons of woody biomass resources and 1.5 million bone-dry tons of agricultural Kevin Caldwell residues available for energy use each year. The chief operations state also has many renewable energy incen- officer, Diesel tives, such as a business tax credit of 50 percent Brewing of eligible project costs (up to $10 million in credits) for facilities that use renewable energy resources and plants that manufacture equipment used for renewable energy projects. In addition to fuel, electricity will be generated at the site of Diesel Brewing’s biobutanol plants. “We’ll have our own internal electrical needs, so we’ll use what we need and sell the balance of it,” Caldwell says. Out of the estimated 5 megawatts (MW) generated, Diesel Brewing facilities will require 1 to 1.5 MW. “Oregon’s a unique state in that we can either wheel it to the grid as a small producer under the PURPA (Public Utility Regulatory Policies Act) or, if we have a neighbor or a local co-op or public utility district, we can actually execute private power contracts,” Caldwell says. “Our preference will be to sell it to a local co-op to distribute it locally, but there are a lot of options in Oregon for what we can do with the balance of the electricity.” Under state regulations, Oregon utilities must meet a percentage of their retail electricity loads with renewable resources. For the three largest utilities—Portland General Electric, Pacific Power and Eugene Water and Electric Board—the targets are 5 percent in 2011 and 25 percent by 2025. For the other utilities in the state, the targets are 5 percent or 10 percent by 2025, depending on the size of the utility. If any of these utilities builds or signs a new contract with a coal-fired plant, the targets for the large utilities apply.
A Map of the Future Diesel Brewing intends to roll out its plans quickly. After the start-up of its pilot facility in December, work will begin on a 10ton per day production unit in Boardman, Ore., which will demonstrate production yields, fuel ratios, gas cleanup procedures, and will allow the company to further fine-tune and balance the processes. Completion of that project is slated for October 2010. Based on the findings of the two preliminary test plants, a commercial-scale plant that would use at least 100 dry tons of biomass per day will be constructed; more will be built across the state when all the kinks are worked out. “The bottom line is we’re not transporting biomass into our communities and transporting liquid fuels out,” Stapleton says. “Our whole business philosophy is to establish small, rural plants near where we get our feedstock, and then produce and consume the biofuels within that same community.” BIO Anna Austin is a Biomass Magazine associate editor. Reach her at 42 BIOMASS MAGAZINE 7|2009