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Giuliano Grassi

Phase II of Renewable Energy in America

National Policy Conference

November 28-29

Cannon Caucus Room, Washington, DC

American Council On Renewable Energy (ACORE)

This transcript was produced from a recording of a subject with a heavy accent. As a result there are more "______"s and "<inaudible>"s than in a normal transcript. -- Production Transcripts.

Thank you Mr. chairman and Ladies and Gentlemen.  My representation concerns Bio-energy.  Bio-energy is a very complicated topic.  The potentialities are very huge.  You will be able to penetrate your own market, but I shall concentrate my speech on three topics.  One, how to get a- concerning the fuel fuel stock resouce and the practical way to cut through the immense amount of agri-forest residue because this is already a <inaudible>, is a difficult to recover economically and also for the supply to the <inaudible> conversion plant, logistic. The second is related to the electricity bio-fuel <inaudible> more interesting commodity for the future.  What we are trying is association to identify opportunity, identify a practical solution.  Second, to try to implement, to happen- technology supply investor energy organization to realize, I should mention something that is relative novelty, more a curiosity and it is:  We try in the frame of an international corporation because, today globalization is underway so we are already a good corporation Russia federation, India, China and it started to sound [ph?] collaboration of organized data [ph?] organization for Ethanol <inaudible> renewed bio-energy.  I shall try to go fast because the time is limited, so I shall concentrate on what I believe is the most interesting- there is- there is not much need <inaudible>.  It is a general contest [ph?] _______ already been given a different presentation.  It is interesting to see the <inaudible> bio-electricity [ph?] <inaudible>.  It is the situation remarkable, Bio-fuel today and what will be, so one interesting point is that Ethanol will be the sinner bio-fuel form for many reasons.  Just- the first topic, how to recover the huge amount of the <inaudible?  In Europe we have a 1.5 million agricultural forest <inaudible>, of course <inaudible> water, some must be left for ________________conservation so <inaudible> conservation but; there is a huge amount that is building containing quite a lot of humidity so emitting carbon dioxide.  First is to try to block this bio-degradation and we have to at least identify the one solution, the first worldwide, where there is a huge interest now where we discuss how to cooperate with the country, how to make a deployment of the new technology.  The new technology is the- is what we call “agroprere” [ph?] transformation of all kind of biomass or mixture [ph?] to inform like _____________ but it has been quite a lot <inaudible> utilized ever since one century, there are seventy-five technology businesses considered in Europe and <inaudible> 7 million ______ but the agroprere could go out.  The dimension is a 100 million because I say the <inaudible> half of what is our labor ready [ph?] will be represented: 300 million tons of LSU [ph?], and so indicated which kind of <inaudible> which are the main advantages of the new technology.  First- it’s the only technology that is able to process directly with the bio-mass.  In general you need to make it <inaudible> consumed <inaudible> energy  at 14% after you make polarizations [ph?] and reduce 10% with high density, however, the new technology is a mechanical triumph [ph?] not a <inaudible>.  So it’s dramatically reduced, the energy and one felt half of what is existing, this is the first amount [ph?].  The second amount, you can make a mix of any kind of bios.  We have tested about 90 types of bio-mass out- on forestry and mixing together without any binding or mechanically, that uses a normal amount because; if you have some material who have micro-element you can make a blending and reduce the composition like for  Power generation, <inaudible>, chlorine [ph?], <inaudible>.  You can have each.  It is only mechanical without any.  The other is the increased energy content because; you use it- bio-mass, humidity, you have <inaudible> 2000 kilo ___________________, by this process you bring 4000 consuming only 350, just to give you the answer, so you double the __________ value so you reduce dramatic the use of a result [ph?].  The volume is reduced considerably so it makes a supply, easy transportation and a reduction of the cost of logistics.  It is a typical <inaudible>, it’s a five tons per hour, existing at 10 ton per hour machines, able to feed a power generator of 50 megawatts [ph?] but; it will be much bigger in the future.  This is the kind of sound example we have tested from- results from South Asia, from South America, from Siberia from; we have tested emissions [ph?] from DDG [ph?] from the United States.  Corn stalk [ph?], this could be an interesting possibility to improve the efficiency and energy efficiency, just the logistics, just the technology and not labor but because it does not need a mechanical <inaudible> it’s very compact.  So we are now, already in the side [ph?] of the mobile unit [ph?] to go to clear forest like in Russia or clean the countryside or collective corn stalks where you have a plantation of Ethanol like in the United States together, we have discussed a few weeks ago with some United States companies. You can transport it like a liquid so as to make it logistically much simpler.  Vis a vis [ph?] what we are discussing, of course, we have- what we are trying, in Russia we have immense activity in the forest: 24% of the whole forest in _______ in Russia so we have a problem with maintenance so this technology especially the mobile units will be very important.  The other is sugar cane, 1.5 billion tons of cane produced is not wasted.  It’s not realized that this is sometimes bad [ph?], this could be dramatically cut to-- in half a billion tons of sugar cane residue.  The other is corn stalk [ph?], it’s in the United States like in China where we have 20 million <inaudible> representing half a billion corn stalk [ph?].  It is to be- I have some samples for the curiousity to see the product that is coming from Minnesota; it could be a very good fuel.  It is just to mention- which could be the first interest applications for bio-mass for <inaudible> because we are working with the __________ power plant in England since two years. [ph?]  If they charge <inaudible>, one reason is because it’s dry. You can go with old technology <inaudible> no corrections now.  You can make a ______________ of 20% if you use humid bio-mass it’s only 7 - 8% and consider the 20% of __________ is possible today with all systems for power plants; it could be a dramatic effort here too because the 20% of the ____________ means reduction of emissions at the level of using a __________ gas everybody is looking at it now to go to ____________, so 20% perhaps could be generalized and the potential in the United States, in China, in India- the economic course because coal firing [ph?] is much more efficient generation from the power plants so you have quite a lot of benefits.  <inaudible> the largest European- you see that we have the potential 15 new power plants immediately in Europe and worldwide it’s 200 megawatt--  It will utilize _________________ 20% so <inaudible> but 1 billion tons of CO2 - also another <inaudible> there has been also to produce _________ , agro Elle [ph?] 50% of mineral, 50% without any bonding, only mechanically so we are waiting for <inaudible> there United States program some year.  But we have found a solution without any addition, although, we are working on this problem on coal firing [ph?] with the Russian Federation, with India.  We are of course, in Europe and we are discussing- we start to discuss with the United States and perhaps it could be a good topic for corporations.  The third topic I mentioned is the bio-finery <inaudible> because everybody knows <inaudible>, Brazil have been indicators are the best in the world.  We are going to compete with Brazil very soon in Europe by <inaudible> and in integration project of technology <inaudible> so we start now.  We invest in _______ and <inaudible> we call because now it’s the rudimental bio-fine [ph?] it’s mass production of the Butynol [ph?] and power generation.  It’s <inaudible>, tomorrow from <inaudible> you can do everything depending on the capacity of the plant etcetera. You can go to the second generation to make hydrogen, biomatter, etcetera will be free market with the demand and what will be the economics.  <inaudible> is a big advantage [ph?] compared with the sugar cane.  You can grow with one-third of the water which is important use for the future, second; you can grow in semi-arid land.  You don’t need good agricultural land and it’s very fast.  One hundred forty days of growing produces a huge amount of bio-mass and diversify, so the new variety for our one in China, one in India and one in Europe can produce just say, 6 or 7 tons of grains.  Six or 8 tons of sugar and 20 tons of ______________, this is a dramatic, good economic crop for to use in the area so it can be grown on our continent also mass produced in- these are some samples of what we have done this summer.  <inaudible> you see how we tried to make it the same.  We take out the- but you see, last year there was 30 thousand _______________ plantation which means 80 thousand acres of plantation, not only <inaudible>.  It is a <inaudible> so you make a ________________ from sugar, from the grain you make Ethanol if you want, or it remains DDG [ph?] if the other is power generation; you can get the gross model quite- the operation of Ethanol is sacrificed, because if you don’t use something else, so you can go from 3 or 5 months, three at the minimum, 5 months could be already good enough.  But you have to have the power generation massive power production for the operating of all of the ______________ utilize the agropele [ph?], because bio-mass is stabalized so you can leave it <inaudible>.  The other, you have also _______, in tropical areas it’s tremendous because; you can make two crop.  One hundred forty-eight days, so you could have a tremendous productivity, 12,000 cubic meters, you must look to the visibility from the environmental project/budget too but technically you can do 12 cubic meters to start and 60,000 kilo hectares, so this is what is already possible.  Of course the second generation bio-fine; you can do the rest.  We are making huge demands of Corporation because we have been working the third year. We started the Commission with <inaudible> to create the first European Network so never have we abandoned it because; we knew that at some time it will come and now he have.  We are making the first project in Portugal.  We’re starting now, it’s about 22,000 acres. We are too small enough <inaudible>.  We have to discuss a bigger industry in Eastern Europe.  We are in discussion with India.  We are in discussion with some United States organizations, especially we are interested in the South but also the North will take some years just for biotechnology to be able to export the crop to <inaudible>.  <inaudible> we can produce now, hydrogen today on the commercial basis we are preparing to propose it because we have <inaudible>.  The first commercial demonstration and if because it is possible and also economically today; it is matching the natural gas price of a <inaudible> one thousand hundred Euro [ph?] without carbon [ph?] credit.  Because of the new technology of polarizations [ph?] because it’s very efficient, so you can get hydrogen, high efficiency over 40% if you don’t have the old, other technology you could drop it to 26, 27 so it would not be enough to propose that.  If you produce hydrogen at such a cost, in this way utilize the plant tomorrow. A big plant- produce Ethanol, can produce in parallel bio-methanol, for each liter of Ethanol you can produce 0.7 this bio-methanol, utilizes part of the rest [ph?].  Alright, I finish this because- <inaudible> the anticipated cost without carbon treating [ph?] compares with the cost from natural gas, of course, the GEP [ph?] price on this _________ if you take a special price, it would be different, but this is already near the competitive the possibility to produce the co- production.  Just to finish, we have the- we are inside the organization of the New European Conference in ________________ in June, in Spain so everybody is invited to come.  We will take more than 1000 people there from 80 countries so it is a big event specializing in bio-mass; it is a recession [ph?] but it is important to the commercialization finance [ph?].  Thank you very much for your attention.