Full proceedings paper at: http://www.extension.org/72854 The great Texas Oil Boom, also referred to as the Gusher Age, provided for dramatic economic growth in the US in the early 20th century, and ushered in rapid development and industrial growth. Although we typically think of the Middle East when we consider the impacts of oil discoveries on local economies (reference Dubai), at the time of its discovery, the oil finds in Texas were unprecedented; and the US quickly became the world’s top producer of petroleum. As we all know, the rest of the world came to the party, and the US was soon falling in the ranks of top petroleum producers. Though the US oil reserves are vast, increasing concerns over the environmental impacts of finding, mining, extracting, refining, and consuming fossil fuels has incentivized the development of renewable energy resources, such as solar, wind, hydro, and bioenergy. Of these forms of renewable energy, bioenergy holds the promise for replacement of fossil fuels for transportation use.

1. The Great Biogas Gusher
Presented by: Gus Simmons
Cavanaugh & Associates, P.A.
Waste to Worth Conference, Seattle, WA
March 31st, 2015

2. Context:
The Great Texas Oil Boom or “Gusher Age”
 Provided for dramatic economic growth in the U.S.
 U.S. became the world’s top producer of petroleum
 The oil finds in Texas were unprecedented
 Propelled the U.S. to indisputable Super Economy
 Soon, the rest of the world was producing oil
 Production in the Middle East became dominant
 U.S., who was the top producer, soon began
falling in the ranks of top petroleum producers

3. This presentation will
1.Compare and contrast the historical development of fossil fuel
reserves with the potential for development of bioenergy
2.Identify and discuss the US energy potential from these resources,
and current development inhibitions/barriers.
3.Discuss the lessens we should have learned from oil boom that we
didn’t (apparently)
4.Offer insights into overcoming the obstacles to bioenergy
development

4. Will Bioenergy be the next Gusher?
 Bioenergy can be described as fuels derived from organic materials, such as
agricultural/municipal/food wastes, through processes like anaerobic digestion.
 Though the U.S. oil reserves are vast,
increasing concerns over the environ-
mental impacts of finding, mining,
extracting, refining. and consuming fossil
fuels has incentivized the development
of Renewable Energy.

5. BIOENERGY
The U.S. has more organic resources
“Above the Dirt” than are identified
in the petroleum and natural gas
deposits yet to be exploited*, yet we
are progressing at a snail’s pace, as
compared to the Big Oil Boom. Why?
*(http://www.cavanaughsolutions.com/above-the-dirt)

6. Bioenergy vs. Fossil fuels
• Positive environmental impacts
• Bioenergy provides better air quality by
recycling atmospheric carbon
• Using waste to generate energy such as
compressed natural gas or electricity
eliminates those wastes from landfill
disposal, prolonging landfill life, deferring
new builds
• Biomass can produce useful chemicals as
part of an integrated process and also
provide co-products such as fertilizers,
nutraceuticals, petrochemical
replacements, and bedding to the farmers
• It takes millions of years to
create fossil fuels from carbon.
• Fossil fuels release trapped
carbon from beneath the earth’s
surface to the atmosphere
(GHG’s)
• Petroleum-based fuels are finite
• Fossil Fuels use is projected to
decline, bioenergy use is
projected to increase.

7. Affect of Organic Recycling on Simple Carbon Cycle
Millions of Years

8. Energy Consumption to 2050, based on spreadsheet data from http://www.2052.info
Greatest
Growth in
Renewables!

9. Agricultural wastes and crop residues in America are plentiful.
Organic wastes from food spoilage are also a source of bioenergy.
The bioenergy potential in the United States is…
Enormous

10. Methane Capture Potential – Combined Sources
Municipal WWTPs, Landfills, Agriculture

11. Food Spoilage
Total Municipal Solid Waste Discards by material, 2012
164 Million Tons (after recycling and composting).
Food makes up the largest percentage of Waste going
to landfills.
Source: www.epa.gov/solidwaste/nonhaz/municipal/pubs/
2012_msw_fs.pdf
Some major cities and states in the United
States are banning organic waste from
landfills for top waste producers like large
supermarkets and restaurants
They are encouraging anaerobic digestion
to harvest energy value from waste. 1 lbs of Coal = 9,000 Btu’s
1 lbs of “trash” = about 5,500 Btu’s

12. 0% 20% 40% 60% 80% 100%
United States
Germany
Netherlands
Austria
Belgium
Sweden
European Union
European nations - A model for waste
management
Recycling/Composting Energy from Waste Landfilled
Source: Biocycle and the Earth Engineering Center of Columbia University; Confederation of European Waste-to-Energy Plants.

13. The Biogas Frontier
29 States in the US have
Renewable Energy Portfolio
Standards; 4 states and 4
major cities have adopted
food waste bans. A disposal
problem or energy
opportunity?

14. States Adopting Food Waste Bans for
Landfills 14

15. Cleaner Energy via Biogas
• According to the US EPA, agriculture contributes
about 24% of the global carbon emissions, trailing
power generation at approx. 30%
• We endeavor to reduce power plant emissions,
promoting widespread adoption of solar power. But
repurposing waste carbon for power and fuel
recycles existing carbon, having a positive affect on
emissions from agriculture and power sectors.
• “Double-dipping”, in a good way.

16. So, What are the Barriers?

17. Barrier #1: The Nexus
Food, Energy, Water Nexus
One resource management
strategy affects the others.
As the US works toward energy
independence, we have to make
sure that we are making the
right choices, so that we will
have enough resources (Energy,
Water, and Food) for the future.

18. What do solar panels taste like?

19. The U.S. has incentivized Renewable Energy generation, but has
relied on the venture capital markets for much of its
development, particularly bioenergy. This reinforces its
perceived riskiness; while we consider the development of
traditional power a ‘public infrastructure’? 3 year ROI vs 50
year ROI???
Bank financing for “new” and “atypical processes”, requires
30%-40% cash equity investment, plus redundant personal
guarantees, plus , plus, plus, plus… Can you imagine financing a
coal plant, nuclear plant, or gas turbine this way?
Barrier #2: Bioenergy upstart is costly
Fostering investment in biogas systems

20. Barrier #3: Black hole of information -
Education and Understanding
•The U.S. Bioenergy Roadmap committed the USDA,
EPA, and DOE to create a working group to
collaborate with industry to prioritize policies to
expand the US biogas industry.
•How will this information get to the public and
elected leaders?
•Who will push this initiative through the States?
•Who will get bioenergy education to the public so
we can make informed decisions?
These are currently roadblocks on our roadmap.

21. Barrier #4: Standards are lacking
•Lack of Federal performance standards; state
standards are inconsistent
•Regional, state, and local biogas market analysis
and policies lacking (compared to other
resource plans, such as water, natural gas, etc.)
•Barriers to injection of purified biogas into the
existing natural gas pipeline network

22. Barrier #5: Risk imposed by Fossil
Fuel Markets
•Short-term drops in petroleum prices take our
eyes off the long-term prize; creates market
instability and market risk.
•Fossil fuel prices greatly impacted by speculated
risk and foreign politics; biogas prices are set
and fixed for 10, 15, or 20 years – this creates
market stability.

23. US Petroleum and Other Liquid Fuels Supply
But we are developing Natural Gas!!! 23

24. Barrier #6: Competition and priority
for funding needs.
Infrastructure funding: must choose between funding “gotta haves” and
“nice to haves”. Right now, we consider bioenergy a “nicety” –
nearsightedness stifles innovation.
Energy Utilities must assess risks of ‘entrepreneurs’ as compared to
costlier exploration for conventional fuels; though, in many cases,
bioenergy fuels can be a direct replacement.
Quantify fossil fuel deposits or ‘above the dirt’ organics?
Biofueled vehicles have very limited range (nationally) and resale markets
due to lack of fuling infrastructure.

25. Barrier #7: Which ROI?
 The “Triple Bottom Line” is often discussed, but most decisions are
made on the obvious one (or the only one that really matters...)
 Bioenergy system ROI’s are compared to conventional fuels; however
the cost abatement realized through reduced emissions, reduced
landfill life, reduced price volatility, etc. are not factored into the
economic returns.
 Conventional infrastructure ROI’s based on 20, 30, and 50 years.
How do the economics compare at 10-15 year?
 Value of sustaining agriculture? Value of utilization of existing WWTP
Infrastructure? Value of lost arable lands? Value of deferred landfill?

26. Summary
The BURNING QUESTION ? ? ? Why Not?
 We have infinite supply of renewable sources of organic materials that may be
used to generate bioenergy
 Production of biogas and bioenergy can hedge against increasing energy costs
 Thought leadership change from “waste” to “resource”
 Bioenergy is a domestic source of “clean” energy,
 Reduced reliance on foreign sources of fuel / increased energy independence
 Extended landfill life
 State Regulatory and Federal policy drivers
 What has your state done to be a good steward of
bioenergy resources???

27. More Information, including a bioenergy blog, can be found at:
http://www.cavanaughsolutions.com/contact
Final Thought…
It took several hundred thousand
years for the Earth to make crude
oil, but we can convert organic
waste into natural gas (biogas) in
less than 2 days