Energizing Appalachia:Energizing Appalachia: A Regional Energy BlueprintA Regional Energy Blueprint 

for Economic and Energy for Economic and Energy DevelopmentDevelopment

Presentation toPresentation toAppalachian Woody Biomass to Ethanol Appalachian Woody Biomass to Ethanol 

ConferenceConferencebyby

Greg BischakGreg BischakARC Senior EconomistARC Senior Economist

June 5, 2007June 5, 2007

Energy Blueprint for AppalachiaEnergy Blueprint for AppalachiaInitiated by 13 Appalachian Initiated by 13 Appalachian Governors in February 2006 to set Governors in February 2006 to set forth a regional energy plan.forth a regional energy plan.Blueprint was developed through Blueprint was developed through by conducting 3 regional by conducting 3 regional roundtables and 4 research roundtables and 4 research studies.studies.Energizing AppalachiaEnergizing Appalachia, released , released by ARC at its annual conference by ARC at its annual conference in Pikeville, KY Oct. 2007, with a in Pikeville, KY Oct. 2007, with a strategic regional focus on:strategic regional focus on:

Efficiency gainsEfficiency gainsRenewable energy potentialRenewable energy potentialClean coal potential.Clean coal potential.

Key Energy Reports: Inputs for BlueprintKey Energy Reports: Inputs for Blueprint

National and State Energy Policy Trends: National and State Energy Policy Trends: Appalachian Regional Energy Blueprint Research Appalachian Regional Energy Blueprint Research BriefBrief, , by The Keystone Research Center, August 2006.by The Keystone Research Center, August 2006.

NonNon--Renewable Energy Innovation, Research to Renewable Energy Innovation, Research to Support the Appalachian Energy InitiativeSupport the Appalachian Energy Initiative, , Global Global Insight Inc. July 2006.Insight Inc. July 2006.

Energy Efficiency and Renewable Energy in Energy Efficiency and Renewable Energy in Appalachia: Policy and PotentialAppalachia: Policy and Potential by Center on Business by Center on Business and Economic Research, Marshall University, WV, Aug. 2006. and Economic Research, Marshall University, WV, Aug. 2006. 

Economic Development Potential of Conventional Economic Development Potential of Conventional and Alternative Energy Sources in Appalachian and Alternative Energy Sources in Appalachian CountiesCounties, , by Dr. Amy Glasmeier, Penn State University, June by Dr. Amy Glasmeier, Penn State University, June 21, 2006.21, 2006.

Energy Efficiency GainsEnergy Efficiency GainsResidential efficiencies low in Residential efficiencies low in Region:Region:

NearNear--term innovation in new lowterm innovation in new low--income housing and retrofits with income housing and retrofits with new energy cores.new energy cores.

Savings improve standard of Savings improve standard of living. living. 

Public buildings and public Public buildings and public works savings potentially as works savings potentially as great as 25% to 30%.great as 25% to 30%.

Key examples water and Key examples water and wastewater plants.wastewater plants.Savings help extend services.Savings help extend services.

Clean Coal Regional Value ChainClean Coal Regional Value ChainCoal IGCC with carbon Coal IGCC with carbon capture.capture.DOEDOE--Industry Industry technology partnership technology partnership underway.underway.

Future GenFuture GenRegional sequestration Regional sequestration partnerships.partnerships.High regional potential.High regional potential.

Carbon & environmental Carbon & environmental policy uncertainty.policy uncertainty.

Wind Energy TechnologiesWind Energy Technologies

Wind energy is industry Wind energy is industry driven, spurred by govt. driven, spurred by govt. incentives.incentives.

Technological change Technological change incremental.incremental.

Regional potential Regional potential moderate; constrained moderate; constrained by regulatory and by regulatory and environmental issues.environmental issues.

Solar Energy TechnologiesSolar Energy Technologies

Solar technological Solar technological change driven by both change driven by both federal and industry federal and industry R&D.R&D.

Regional potential Regional potential moderate, largely linked moderate, largely linked to existing industry to existing industry driven deployment.driven deployment.

Incremental change vs. Incremental change vs. long term breakthrough.long term breakthrough.

BiofuelsBiofuels Energy TechnologiesEnergy TechnologiesCornCorn--based ethanol is industry based ethanol is industry driven, spurred by govt. driven, spurred by govt. incentives.incentives.

Incremental tech. change.Incremental tech. change.

CellulosicCellulosic ethanol technology ethanol technology has potential for breakthrough has potential for breakthrough in 3in 3--5 yrs.5 yrs.

SwitchgrassSwitchgrass, hardwood feedstock., hardwood feedstock.Potential regional value chain for Potential regional value chain for first mover.first mover.

CellulosicCellulosic diesel (3diesel (3--5 yrs)5 yrs)FeedstocksFeedstocks (i.e., softwoods, (i.e., softwoods, poultry, and paper mill wastes).poultry, and paper mill wastes).

Biomass Production PotentialBiomass Production Potential

Blueprint Action Agenda:Blueprint Action Agenda:Pubic sector investmentPubic sector investment to reduce risk, to reduce risk, uncertainty and long development time for uncertainty and long development time for emerging regional energy technologies.emerging regional energy technologies.Research on Research on regional opportunitiesregional opportunities for efficiency for efficiency potential and expansion of renewable and potential and expansion of renewable and conventional energy sectors.conventional energy sectors.Workforce developmentWorkforce development in key energy sectors.in key energy sectors.Pubic awarenessPubic awareness and outreach to improve and outreach to improve efficiency and promote alternative development.efficiency and promote alternative development.Supportive policiesSupportive policies to stimulate diffusion of best to stimulate diffusion of best practices and emerging technologies.practices and emerging technologies.

2007 Energy Initiatives2007 Energy InitiativesRFP issued for Efficiency & Renewable Energy grants RFP issued for Efficiency & Renewable Energy grants competition issued: competition issued: 

43 applications received from 12 states covering energy efficien43 applications received from 12 states covering energy efficient t buildings with LEED certification, buildings with LEED certification, biofuelbiofuel productions, biomass productions, biomass collection and generation, clean energy incubators, and other collection and generation, clean energy incubators, and other topics.topics.Awards expected for 12 grantees totaling $605,000.Awards expected for 12 grantees totaling $605,000.

Two Two RFPsRFPs issued for research on:issued for research on:An Assessment of Potential Energy Efficiency Gains in the An Assessment of Potential Energy Efficiency Gains in the Appalachian RegionAppalachian RegionWind and Solar Energy Manufacturers: Opportunities for Supply Wind and Solar Energy Manufacturers: Opportunities for Supply Chain Development in AppalachiaChain Development in Appalachia

Clean Coal conference convened on April 24Clean Coal conference convened on April 24--25, 2007 in 25, 2007 in Lexington, KYLexington, KY

Examined technological, financial, regulatory and policy issues Examined technological, financial, regulatory and policy issues shaping clean coal development potential in the Region; shaping clean coal development potential in the Region; Carbon capture and sequestration issues.Carbon capture and sequestration issues.

Research on Sustainable Research on Sustainable CellulosicCellulosic Biomass in AppalachiaBiomass in Appalachia

PSUPSU--ARC research project to improve on ARC research project to improve on NRELNREL’’ss county level methodology for estimating county level methodology for estimating cellulosiccellulosic potential from biomass production and recovery.potential from biomass production and recovery.

Includes estimates from dedicated energy crops Includes estimates from dedicated energy crops and and feedstocksfeedstocks from agricultural, forest, from agricultural, forest, industrial, construction and urban waste streams.industrial, construction and urban waste streams.

Calculation of distributed Calculation of distributed cellulosiccellulosic ethanol ethanol potential based upon technology for fermentation, potential based upon technology for fermentation, fast fast pyrolysispyrolysis, on, on--site agricultural production.site agricultural production.

Greg BischakGreg Bischak Senior EconomistSenior Economist 

Appalachian Regional CommissionAppalachian Regional Commission gbischak@arc.govgbischak@arc.gov

www.arc.govwww.arc.gov

- Energizing Appalachia:�A Regional Energy Blueprint�for Economic and Energy Development
- Energy Blueprint for Appalachia
- Key Energy Reports: Inputs for Blueprint
- Energy Efficiency Gains
- Clean Coal Regional Value Chain
- Wind Energy Technologies
- Solar Energy Technologies
- Biofuels Energy Technologies
- Biomass Production Potential
- Blueprint Action Agenda:
- 2007 Energy Initiatives
- Research on Sustainable Cellulosic Biomass in Appalachia
- Slide Number 13