C A L I F O R N I AE N E R G YC O M M I S S I O NStatus of Biofuel Production Facilities in CaliforniaSeptember 2009Energy Commission Staff Update2010-11 Investment PlantJim McKinneyEmerging Fuels and Technologies OfficeCalifornia Energy CommissionAB 118 INVESTMENT PLAN BIOFUELS WORKSHOPSacramento, CaliforniaSeptember 14 and 15, 2009C A L I F O R N I AE N E R G YC O M M I S S I O NExisting California Ethanol Plant Status Report:Sept. 2009Plant/CompanyNameLocationCapacityMMGPY1stproductionyearStatusFeedstockParallel ProductsRanchoCucamonga51984Only plant currentlyoperatingfood andbeverageindustry wastesAltra31.52005Production ceased 11/07IdleMidwest CornCalgrenRenewable FuelsPixley52.52008Prod. ceased 1/09, plantmodifications underwayMidwest cornCilionKeyes552008Production ceased 3/09IdleMidwest CornPacific EthanolStockton602008Production ceased 3/09IdleMidwest andCalifornia cornPacific EthanolMadera402006Production ceased 1/09IdleMidwest andCalifornia cornGolden CheeseCompanyCorona3.51985Production ceased 1/08Closed permanentlycheese wastesInstalledCapacity247.5Capacity operating598 % of California’sEthanol Production Capacity Is IdleCapacity Idle242.7C A L I F O R N I AE N E R G YC O M M I S S I O NCalifornia Ethanol Production•Dry mill ethanol plants in California are “Destination Model Plants”meaning that the ethanol is made at the destination market from importedfeedstocks.•All plants produce distillers wet grainsas animal feed to destinations dailywithin 50 miles of the plant (when operating)•Economics – at a disadvantage to Midwest plants that are larger. Costbenefits from not drying grains and reduced transportation costs.•All can be candidates for “front-end” retrofit to process waste biomass,cellulose and purpose grown California crops.•Some plants are planning or undertaking value added processing such asextraction of corn oil for biodiesel•Improvements are necessary to remain competitive without of everimproving plants in the Midwest and other statesC A L I F O R N I AE N E R G YC O M M I S S I O NCalifornia Ethanol Demand Relative To InState Production Capacity(Approximate)AnnualDemandMMGal/Yr20049002005950200694520079302008960•Existing In-State Production Capacity – 247.5 MM gal/year•If all existing capacity was operational, 25 % of 2008ethanol demand would be achieved•With the shift to 10 % ethanol blending in Californiagasoline on January 1, 2010, and ethanol demand well overone billion gallons per year, existing plants might meet the20 % production and use Bioenergy Action Plan goal, butonly if all plants are fully operational•With additional growth in the E-85 market, even that goalwill be hard to achieve in the near term.•Bottom Line – New in-state production capacity will beneeded to assure adequate ethanol supplies as California’sethanol demand increasesC A L I F O R N I AE N E R G YC O M M I S S I O NCalifornia Biodiesel Plant Status(February 2009 EFTO Staff Survey)Existing Plants - Production andCapacity SummaryMillion gallons per year(2009 / 2010 are projections)20062007200820092010AverageCapacity1.672.004.969.4611.78AverageProduction0.790.993.576.1610.95Production %of Capacity48%50%72%65%93%C A L I F O R N I AE N E R G YC O M M I S S I O NCalifornia Biodiesel Plant NotesFebruary 2009•12 operating plants with annual capacities ranging from 4 to30 million gallons per year•About 105 million gallons of capacity in 2009 (projected)•Largest is located in Bakersfield, and smallest in Oakland•Five plants intend to add capacity in 2009/2010 with onefacility doubling its capacity.•Two new plants in Los Angeles and Chilcoot to come on linein 2009 – 10 million gal/yr combined capacity•Focus of industry effort is improved capacity utilization whichstood at about 50 percent in 2006/2007 and is projected to beover 90 percent in 2010.C A L I F O R N I AE N E R G YC O M M I S S I O NCalifornia Nation-State Statistics•Population: 36.8 million•GDP: $1.8 trillion - 8thlargest economy•GHG Emissions: 440 MMT (2004)–7.2% of U.S. Emissions (Pew Center)–10thlargest emitter on global scale–Transportation accounts for 38 % of all GHG emissions•Vehicles: 26.3 million cars + 0.92 million trucks•Annual Fuel Consumption: 20 billion gallons–16 billion gallons gasoline (~1 billion gallons ethanol E6)–4 billion gallons diesel– 3rdlargest consumer of vehicle fuels after China and USC A L I F O R N I AE N E R G YC O M M I S S I O NState and Federal Policy Drivers to ReduceGHGs Will Increase Demand for Biofuels•California’s Climate Change Reduction Goals – AB 32–1990 Levels by 2020 (~30% reduction)–80 percent reduction by 2050•California’s Low Carbon Fuel Standard–10 % reduction in carbon intensity of transportation fuels by 2020•BioEnergy Action Plan (Executive Order S-06-06)–“Maximize the contributions of bioenergy toward achieving the state’s petroleumreduction, climate change, renewable energy, and environmental goals.”–Policy goal to increase in-state production of biofuels2010 – 20% 2020 – 40% 2050 – 70%C A L I F O R N I AE N E R G YC O M M I S S I O N•Federal Renewable Fuels Standards I and II–2007 Energy Independence and Security ActC A L I F O R N I AE N E R G YC O M M I S S I O NAB 118 Investment Plan Projections for GHG Reductions2050 VisionFuel Mix40% electricity/ hydrogen30% biofuels30% petroleumKeyLow Carbon =40% ReductionUltra Low Carbon= 60%Super UltraLow Carbon =82% ReductionC A L I F O R N I AE N E R G YC O M M I S S I O NAB 118 Investment Plan FundingAllocations – First Two YearsFuel / Technology2-Year FundingAllocation (million)Electric Drive$46Hydrogen$40Ethanol (waste stream feedstocks)$12Renewable Diesel / Biodiesel (waste stream)$6Natural Gas (Includes $10 M biomethane)$43Propane$2Non-GHG Support$27Includes $4 million for sustainability researchTotal$176Sub-total Biofuels (ethanol, biodiesel, biomethane)$28