Satisfying State & Federal
Renewable Energy Standards
with Biomass




Scott Miller
Price BIOstock, Marketing Director
Dec...
14 million tons
                                                         per year




Victoria, Australia



             ...
The Price Companies business model

                    Suppliers receive:
                      – A fair price for feeds...
Overview


 1.   State and Federal RPS and RES legislation

 2.   Bioenergy options available to power companies
      and...
1. State Renewable Portfolio Standards (RPS)
           August 2009
 WA: 15% by 2020*                                     ...
State resources to meet RPS mandates




      Solar




                                                    BioPower
    ...
‘70’s “Cradle-to-grave” material value cycle



Wood Biomass         +$
& Grid Power




                                 ...
‘80’s “Cradle-to-cradle” bioenergy value cycle



Wood Biomass          +$


  Waste as
  an Energy                       ...
2. Biomass Power options


     Biomass power plant
      – Wood chips and biomass - <75MW per plant
Logistics Challenge
                            75 Miles

   Green wood is 50%
    moisture                50 Miles

   ...
Georgia’s qualifying biomass



                              Before EISA RFS
                             23,000,000 acre...
California’s qualifying biomass



                                Before EISA RFS
                               19,000,0...
Thinnings & salvage

                         6 of the 7 worst fire seasons


                    U.S. Forest Fires
      ...
2. Biomass Power options


     Biomass power plant
      – Wood chips and biomass - <75MW
      – Pellets - wood or ener...
2. Biomass Power options


     Biomass power plant
      – Wood chips and biomass - <75MW
      – Pellets - wood or ener...
2. Biomass Power options


     Biomass power plant
      – Wood chips and biomass - <75MW
      – Pellets - wood or ener...
3. The cost of wood - industry “byproducts”

   There is very little valueless waste
     – Sawmill byproducts      – C&D...
The cost of harvested wood - stumpage prices




                      BioPower
Example: $25/ton biomass delivered to mill



                               $7
                            Stumpage

    ...
Procurement



   Still using the same methods that have been
         time tested by the forest industry:


             ...
4. Handling - Receive from chip handlers

   Buy from chipmill suppliers +$10
   Byproducts from solid wood products mil...
4. Handling - Set up a woodyard with chipping

                       All chip handlers
                       Every log...
Lessons to be learned

                 There is very little valueless waste
                 Location and feedstock fle...
Scott Miller
Marketing Director
scott@pricebiostock.com
818-439-0239




Scott Miller
Price BIOstock, Marketing Director
D...
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Rps Biopower Options Slides

  1. 1. Satisfying State & Federal Renewable Energy Standards with Biomass Scott Miller Price BIOstock, Marketing Director December, 2009
  2. 2. 14 million tons per year Victoria, Australia PBS Headquarters Paper & Pulp Price BIOstock
  3. 3. The Price Companies business model  Suppliers receive: – A fair price for feedstock – A preferred delivery point  Client specifies: – Woodchip or other product – Site of the receiving/processing yard  Price provides: – Feedstock procurement and delivery – Design/construction of receiving yard – Management of preparation facility
  4. 4. Overview 1. State and Federal RPS and RES legislation 2. Bioenergy options available to power companies and utilities 3. Factors affecting the price of wood 4. Handling options - buying chips vs. siting wood yards
  5. 5. 1. State Renewable Portfolio Standards (RPS) August 2009 WA: 15% by 2020* VT: (1) RE meets any increase ME: 30% by 2000 New RE: 10% by 2017 MN: 25% by 2025 in retail sales by 2012; MT: 15% by 2015 (2) 20% RE & CHP by 2017 ☼ NH: 23.8% by 2025 (Xcel: 30% by 2020) ND: 10% by 2015 MI: 10% + 1,100 MW ☼ MA: 15% by 2020 ☼ OR: 25% by 2025 (large utilities)* by 2015* + 1% annual increase 5% - 10% by 2025 (smaller utilities) (Class I Renewables) SD: 10% by 2015 WI: Varies by utility; ☼ NY: 24% by 2013 10% by 2015 goal RI: 16% by 2020 ☼ NV: 25% by 2025* CT: 23% by 2020 IA: 105 MW ☼ OH: 25% by 2025† ☼ CO: 20% by 2020 (IOUs) ☼ PA: 18% by 2020† 10% by 2020 (co-ops & large munis)* CA: 20% by 2010 IL: 25% by 2025 VA: 15% by 2025* ☼ NJ: 22.5% by 2021 UT: 20% by 2025* KS: 20% by 2020 ☼ MD: 20% by 2022 ☼ MO: 15% by 2021 ☼ AZ: 15% by 2025 ☼ DE: 20% by 2019* ☼ NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) ☼ DC: 20% by 2020 ☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) TX: 5,880 MW by 2015 HI: 40% by 2030 29 states & DC have an RPS 5 states have goals State renewable portfolio standard ☼ Minimum solar or customer-sited requirement State renewable portfolio goal Solar water heating eligible * † Extra credit for solar or customer-sited renewables Includes separate tier of non-renewable alternative resources DOE / EERE DSIRE website - August 2009
  6. 6. State resources to meet RPS mandates Solar BioPower Wind PEW Center on Global Climate Change
  7. 7. ‘70’s “Cradle-to-grave” material value cycle Wood Biomass +$ & Grid Power Natural Gas Boilers for Power & Biomass Conversion Waste to Pulp & Paper Landfill
  8. 8. ‘80’s “Cradle-to-cradle” bioenergy value cycle Wood Biomass +$ Waste as an Energy Tomlinson Boilers Feedstock 6GW by 1990’s for Power & 56% plant power Biomass Conversion - Black liquor - Sawdust - Wood residues - Bark Pulp & Paper
  9. 9. 2. Biomass Power options  Biomass power plant – Wood chips and biomass - <75MW per plant
  10. 10. Logistics Challenge 75 Miles  Green wood is 50% moisture 50 Miles  Hauling costs about $.12 per ton per mile 25 Miles  Feedstock deliveries must be to the plant  The greater the volume, the more options needed  The number of truckloads/day
  11. 11. Georgia’s qualifying biomass Before EISA RFS 23,000,000 acres vs. 7,300,000 acres After RFS One dot = 5,000 acres Federal land USDA Forest Service - Forest Inventory and Analysis National Program
  12. 12. California’s qualifying biomass Before EISA RFS 19,000,000 acres vs. 500,000 acres After RFS One dot = 5,000 acres Federal land USDA Forest Service - Forest Inventory and Analysis National Program
  13. 13. Thinnings & salvage 6 of the 7 worst fire seasons U.S. Forest Fires 1960-2007 Cone Fire - 2002 National Interagency Fire Center, 2008
  14. 14. 2. Biomass Power options  Biomass power plant – Wood chips and biomass - <75MW – Pellets - wood or energy crops – Syngas replacement for natural gas
  15. 15. 2. Biomass Power options  Biomass power plant – Wood chips and biomass - <75MW – Pellets - wood or energy crops – Syngas replacement for natural gas  Co-firing - – Biomass & energy crops - <15% of feedstock volume
  16. 16. 2. Biomass Power options  Biomass power plant – Wood chips and biomass - <75MW – Pellets - wood or energy crops – Syngas replacement for natural gas  Co-firing - – Biomass & energy crops - <15% of feedstock volume – Torrefied pellets - up to 100% of feedstock volume
  17. 17. 3. The cost of wood - industry “byproducts”  There is very little valueless waste – Sawmill byproducts – C&D waste – Papermill byproducts – Understory on federal lands – Urban and yard waste – Logging waste
  18. 18. The cost of harvested wood - stumpage prices BioPower
  19. 19. Example: $25/ton biomass delivered to mill $7 Stumpage $13 Harvesting $5 Freight
  20. 20. Procurement Still using the same methods that have been time tested by the forest industry: A combination of long and short term agreements as a base and purchasing on the open market for the rest.
  21. 21. 4. Handling - Receive from chip handlers  Buy from chipmill suppliers +$10  Byproducts from solid wood products mills -$5  Grinders/chippers in landfills, right-of-ways, roads -$10  Field chippers in the woods - only 1 of 40 loggers
  22. 22. 4. Handling - Set up a woodyard with chipping  All chip handlers  Every logger in haul distance
  23. 23. Lessons to be learned  There is very little valueless waste  Location and feedstock flexibility determine wood cost  Professionals pay for themselves and help ease investor worry  A chip buying facility is vulnerable to loss of suppliers and low volumes  >1,000 tpd - Plant should include chipping capabilities
  24. 24. Scott Miller Marketing Director scott@pricebiostock.com 818-439-0239 Scott Miller Price BIOstock, Marketing Director December, 2009

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