Biomass     Power & CHP SystemsWhat Are They & What Makes Them Work?             Bill Carlson   Carlson Small Power Consul...
Definition of Terms• Biomass-any form of organic material, in  this case a subset consisting of:  –   Mill residual materi...
How Do They Work?       Backpressure Turbine
How Do They Work?    Extraction/Condensing Turbine
What Are the Technologies? Stoker fueled grate boiler
What Are the Technologies?FluidizedBed Boiler
What Are the Technologies?  Biomass  Gasification
Offshoots of These Technologies• Biochar  – Energy plus a fertilizer and carbon    sequestration agent• Torrefaction  – Pr...
Traditional Mill
Addition of Combined Heat & Power
Final Arrangement (Another User)
What Situations Are You Looking For?• Heavy fossil fuel use for  heating/cooling/drying• Excess fuel availability/no serio...
What Situations Do You Seek toAvoid?• Fuels that are questionable or require  additional pollution control equipment  (tre...
In What Sequence Do We Evaluate theOpportunity?1. Potential steam/hot water/hot   gas/chilled water customers2. Available ...
Potential Heating/Cooling Customers• Size, seasonality, concentration, stability• Fuels currently used   – Fossil fuel dis...
Available Fuel Supply• Quantities and types of fuels available• Estimated gathering/processing/delivery  costs• Ability to...
To Generate or Not to Generate• Varying seasonal customer heat loads  encourages generation to fully utilize  equipment, f...
Available Incentives• Check available front end grant funds,  loan guarantees, low cost loan pools• Check carbon credit ma...
Project Ownership Structure• Public ownership typically cannot use tax  credits, accelerated depreciation, federal  grant•...
A Renewable Future Creates Great Opportunities
Biomass Energy in a RenewableEnergy/Carbon Constrained World• All renewables offset fossil fuel emissions• Biomass power a...
Biopower and GHG Emissions• Depending on fuels used, biopower can  be a source of negative greenhouse gas  emissions (less...
Atmospheric GHG Burden Associated with Production of 1 million bdt of Forest Fuels                         9,000          ...
Biomass for CHP Applications• Has typically revolved around forest  products facility (lumber, plywood, pulp &  paper) as ...
Potential Applications in Midwest• Any forest products facility   – Drying need (lumber, veneer, paper)   – On site biomas...
Potential Applications in Midwest (Cont.)• District Heating System   – Collection of Offices/commercial buildings   – Stea...
Why Add Power Generation toSimple Boiler Heating/CoolingSystem?• Maximize use of invested capital by  adding insatiable el...
What Do Utilities Think of BiomassPower?• It is renewable power that meets their  Portfolio Standard (RPS) Requirements• I...
Potential Utility Co-firing With Coal • Can be used to reduce emissions of coal   plants • Difficult in pulverized coal un...
A Closer Look - Size• Big enough to be economic• Small enough to not stress fuel supply or  sustainability• Big enough to ...
A Closer Look At A 25 MW ProjectInvestment• $80 million Project   – 70% materials and equipment   – 30% local construction...
A Closer Look - Jobs• 18 permanent jobs at plant   – 4 Admin/fuel   – 9 Operations   – 5 Maintenance• 40+ fuel supply jobs...
A Closer Look – Operations &Maintenance•   $800,000 annual property tax•   $1.2 Million annual payroll & benefits•   $1.3 ...
A Closer Look – Fuel Supply• Home for harvest residues,  precommercial thinnings now  burned/piled• Outlet for local green...
Environment – Local• Eliminate much slash pile burning/open  burning (97% reduction in emissions)• Potential to lower fire...
Environment – State/Region• Displace fossil fuel use for generation• Help Holland and Michigan meet  Renewable Portfolio S...
Bottom LineDone correctly, biomass CHP plant is:• Complement to local forest industry• Catalyst to improve forest health, ...
Bill Carlson - October 13, 2011
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Bill Carlson - October 13, 2011

  1. 1. Biomass Power & CHP SystemsWhat Are They & What Makes Them Work? Bill Carlson Carlson Small Power Consultants CPSC@shasta.com Power for the 21st Century October 13, 2011 Holland, Michigan
  2. 2. Definition of Terms• Biomass-any form of organic material, in this case a subset consisting of: – Mill residual material – Forest waste – Urban wood – Agricultural residual material – Energy crops• Combined Heat & Power (CHP) Simultaneous production of thermal and electrical energy from a single fuel source (e.g. power and district heating)
  3. 3. How Do They Work? Backpressure Turbine
  4. 4. How Do They Work? Extraction/Condensing Turbine
  5. 5. What Are the Technologies? Stoker fueled grate boiler
  6. 6. What Are the Technologies?FluidizedBed Boiler
  7. 7. What Are the Technologies? Biomass Gasification
  8. 8. Offshoots of These Technologies• Biochar – Energy plus a fertilizer and carbon sequestration agent• Torrefaction – Production of a coal substitute from biomass with similar hauling/processing/combustion characteristics
  9. 9. Traditional Mill
  10. 10. Addition of Combined Heat & Power
  11. 11. Final Arrangement (Another User)
  12. 12. What Situations Are You Looking For?• Heavy fossil fuel use for heating/cooling/drying• Excess fuel availability/no serious competition• Existing distribution network such as district heating/aging steam facilities• Enlightened regulatory environment that values renewables, firm generation, fossil fuel displacement• Available state/federal incentives that significantly boost revenues, avoid taxes• A utility that actually wants your power/heat.
  13. 13. What Situations Do You Seek toAvoid?• Fuels that are questionable or require additional pollution control equipment (treated, contaminated wood)• Unreasonable air regulatory environment that unnecessarily raises capital/operating costs• Lack of reasonable long term offtake or fuel agreements• Significant early public opposition that cannot be changed by public education
  14. 14. In What Sequence Do We Evaluate theOpportunity?1. Potential steam/hot water/hot gas/chilled water customers2. Available fuel supply/cost3. Should electrical generation be part of the project?4. What are the available incentives5. What ownership structure can create most value in this circumstance
  15. 15. Potential Heating/Cooling Customers• Size, seasonality, concentration, stability• Fuels currently used – Fossil fuel displacement generates carbon credits• Low pressure/temperature use generates greater cogeneration opportunity• Size heat source substantially larger than peak customer load – Allow customer growth – Allow new customers
  16. 16. Available Fuel Supply• Quantities and types of fuels available• Estimated gathering/processing/delivery costs• Ability to get long term commitments to deliver• Try not to size project for greater than 50% of available fuel unless you control it• Situation with competitors for fuel• How do fuels mesh with regulatory environment?
  17. 17. To Generate or Not to Generate• Varying seasonal customer heat loads encourages generation to fully utilize equipment, fuel – Marginal generation cost only slightly above marginal fuel cost• Steady heat loads encourage backpressure generation• Varying heat loads encourage extraction/condensing generation• Evaluate local power sales opportunities and wheeling options to other RPS states• Typically would not supply heat customer its electrical load
  18. 18. Available Incentives• Check available front end grant funds, loan guarantees, low cost loan pools• Check carbon credit markets and possibility of national cap & trade legislation• Check availability of Federal Production Tax Credit, state tax incentives, continuation of federal grant• Check smaller programs such as Enterprise Zone, New Market Tax Credits
  19. 19. Project Ownership Structure• Public ownership typically cannot use tax credits, accelerated depreciation, federal grant• Tax equity partners available for good solid projects• Tax equity partners will exit once target return is reached• Utility purchase option after 5 years increasingly popular
  20. 20. A Renewable Future Creates Great Opportunities
  21. 21. Biomass Energy in a RenewableEnergy/Carbon Constrained World• All renewables offset fossil fuel emissions• Biomass power assumed to be “carbon neutral” by various scientific bodies – Biogenic vs. anthropogenic carbon• “Sustainability” key to carbon neutrality of biomass
  22. 22. Biopower and GHG Emissions• Depending on fuels used, biopower can be a source of negative greenhouse gas emissions (less than zero)• Typical forest residue or urban wood disposal generates a portion of carbon released as methane rather than CO2 (methane 25 times more damaging) – Open burning 5% C as CH4 – Surface decomposition 12.5% C as CH4 – Landfilling 50% C as CH4
  23. 23. Atmospheric GHG Burden Associated with Production of 1 million bdt of Forest Fuels 9,000 Fossil Carbon Displacement Net Biogenic Carbon Overgrown Forest Thinned Forest 7,000 Biomass Energy 5,000thous. tons CO2 equiv. 3,000 1,000 (1,000) (3,000) 2005 2015 2025 2035 2045 2055 2065 2075 2085 2095 2105
  24. 24. Biomass for CHP Applications• Has typically revolved around forest products facility (lumber, plywood, pulp & paper) as they have fuel, steam need, electric need
  25. 25. Potential Applications in Midwest• Any forest products facility – Drying need (lumber, veneer, paper) – On site biomass fuel• College/University/Hospital Complex – Seasonal heating/cooling load – Maximize power generation in summer
  26. 26. Potential Applications in Midwest (Cont.)• District Heating System – Collection of Offices/commercial buildings – Steam or hot water• Other Industrial Applications – Food processing – Large consumer of fossil fuels• Ethanol Industry – Now depend on natural gas for process heat
  27. 27. Why Add Power Generation toSimple Boiler Heating/CoolingSystem?• Maximize use of invested capital by adding insatiable electric market• Dramatic improvement in efficiency of electric production (2050/60%)• Many incentives only available for electric production or CHP, not heating• Lower cost of heating/cooling application
  28. 28. What Do Utilities Think of BiomassPower?• It is renewable power that meets their Portfolio Standard (RPS) Requirements• It is a firm, base load resource as opposed to intermittent wind/solar• It is available in small, disbursed increments• It is typically end of line, providing valuable voltage control/reliability• It typically does not require transmission upgrades• It offers local economic development, assistance with forest restoration, potential carbon offsets
  29. 29. Potential Utility Co-firing With Coal • Can be used to reduce emissions of coal plants • Difficult in pulverized coal units as wood cannot be “pulverized” • Totally compatible with stoker fed grate boilers or fluidized beds • Torrefaction attempts to duplicate coal’s handling characteristics with biomass • Good retrofit opportunity for smaller, older coal boilers
  30. 30. A Closer Look - Size• Big enough to be economic• Small enough to not stress fuel supply or sustainability• Big enough to be steam supplier to multiple future businesses/green industrial park• Small enough to not stress existing infrastructure – Transmission, roads, water/sewer
  31. 31. A Closer Look At A 25 MW ProjectInvestment• $80 million Project – 70% materials and equipment – 30% local construction• 60 construction jobs over 18 months – $¾ million in upfront studies, permitting, design
  32. 32. A Closer Look - Jobs• 18 permanent jobs at plant – 4 Admin/fuel – 9 Operations – 5 Maintenance• 40+ fuel supply jobs – 5 chipping/grinding “sides” • 8 Jobs each • Additional drivers for mill byproducts, urban wood
  33. 33. A Closer Look – Operations &Maintenance• $800,000 annual property tax• $1.2 Million annual payroll & benefits• $1.3 Million annual local O&M purchases• $5 Million annual local fuel purchase
  34. 34. A Closer Look – Fuel Supply• Home for harvest residues, precommercial thinnings now burned/piled• Outlet for local green waste, urban wood fraction, right-of-way thinnings• Reverse loss of markets when pulp mills left• New markets for low valued wood help “keep forests as forests”
  35. 35. Environment – Local• Eliminate much slash pile burning/open burning (97% reduction in emissions)• Potential to lower fire risk around communities• Fuel hauled to central site for combustion – BACT required for pollution controls – Electrostatic precipitator – Multiple levels of heated overfire air – Probable selective non catalytic removal (SNCR) for NOx – Local ash disposal/use as fertilizer – Water consumption/sewer use
  36. 36. Environment – State/Region• Displace fossil fuel use for generation• Help Holland and Michigan meet Renewable Portfolio Standards (RPS)• Help retain “forests as forests” by creating markets for low valued wood
  37. 37. Bottom LineDone correctly, biomass CHP plant is:• Complement to local forest industry• Catalyst to improve forest health, lower fire risk, keep “forests as forests”• Place for community to safely dispose of woody materials• Local source of thermal and electrical green energy for Holland• Minor source of emissions, use of other resources• Economic engine for community

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