District Energy and CHP - Biomass Thermal Energy Council

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Large-Scale Biomass Thermal

Large-Scale Biomass Thermal:District Energy and CHP

This Webinar is brought to you by:

Biomass Thermal Energy Council (BTEC)

With the generous support of the U.S. Forest Service

Wood Education Resource Center

2 PM ET, May 25, 2011

“The work upon which this publication is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. This institution is an equal

opportunity provider.”

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Quick NotesTwo Audio Options: Streaming Audio and Dial-In.1. Streaming Audio/Computer Speakers (Default)

2. Dial-In: Use the Audio Panel (right side of screen) to see dial-in instructions. Call-in separately from your telephone.

Ask questions using the Questions Panel on the right side of your screen.

The recording of the webinar and the slides will be available after the event. Registrants will be notified by email.

Quick Notes - Seymour

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Presentation OutlineI. Introduction – Joseph SeymourII. Technology Overview – John CutticaIII. Lessons Learned – Jonathan WilkinsonIV. District Energy – Michael BurnsV. Q & A, Next Events – Joseph Seymour

[Full presentation will be available online, www.biomassthermal.org/resource/webinars.asp]

I. Event Introduction - Seymour

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Speakers

John Cuttica,Director, Midwest Regional CHP Application Center, and Director, Energy Resource Center, University of Illinois at Chicago

Jonathan Wilkinson, Senior Vice President, Business Development, Nexterra Systems Corp.

Michael Burns, Senior Vice President of Operations and Engineering Group, Ever-Green Energy

Joseph Seymour, Program Coordinator – Policy and Government Affairs, Biomass Thermal Energy Council

Moderator

I. Event Introduction - Seymour

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Joseph Seymour - Moderator

Program Coordinator –Policy and Government Affairs Biomass Thermal Energy Council

Project Coordinator, Technology Transition Corporation (www.ttcorp.com)

I. Introducing BTEC – Seymour

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About BTEC – Mission & CompositionThe Biomass Thermal Energy Council (BTEC) is a nonprofit association dedicated to advancing the use of biomass for heatand other thermal energy applications.

BTEC engages in research, education, and public advocacy for thefast growing biomass thermal energy industry.

Formed in January 2009 by eight companies, BTEC currently has 85+ members from 34 U.S. states, Canada, and Austria

Includes landowners, handling equipment manufacturers, fuel refiners, appliance manufacturers, project developers, investment companies, nonprofits, universities, associations, and others

I. Introducing BTEC - Seymour

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BTEC Membership

I. Introducing BTEC - Seymour

Abundant Power Froling Energy Public Policy VirginiaACT Bioenergy Fröling GmbH Rainforest AllianceAlliance for Green Heat Fuel Pellet Technologies Ray Albrecht/The Fulton CompaniesAlternative Energy Solutions International, Inc. FutureMetrics Renewable Energy ResourcesAmerican Agriculture Movement Gavilon Group Resource Professionals GroupAmerican Wood Fibers Green Clean Heat Sandri CompaniesAPEX Indeck Ladysmith Santa Energy CorporationBear Mountain Forest Products Innovative Natural Resource Solutions Sewall CompanyBeaver Wood Energy International Renewable Energy Technology Institute Skanden EnergyBiomass Combustion Systems International WoodFuels State of Montana Department of Natural Resources and Conservation

Biomass Commodities Corporation Jesse E. Lyman Pellets State University of New YorkBiomass Energy Resource Center Krieg DeVault Tarm BiomassBiomass Energy Works Lignetics of Virginia Twin Ports TestingBionera Resources Inc. Maine Energy Systems Vapor Locomotive CompanyBiowood Energy Maine Pellet Fuels Association VecoplanChip Energy Marth Vermont Wood PelletClean Power Development Missouri Corn Growers Association ViessmannComact Equipment Montana Community Development Corporation West Oregon Wood ProductsConfluence Energy National Network of Forest Practitioners Western Ag EnterprisesContinental Biomass Industries New England Wood Pellet Westervelt Renewable EnergyControl Labs Northeast Mill Services Wilson Engineering ServicesCorinth Wood Pellet Oregon Forest Industries Council Wisconsin Energy Conservation CorporationCousineau Forest Products PA Pellets WoodFuels Virginia LLCDejno's Pellet Technology USA WoodmasterEcostrat Pelletco WoodPellets.comEnviva LP Plum Creek Zilkha Biomass EnergyErnst Biomass Pratt & Whitney Power Systems ‐ TurbodenForest Energy Corporation Proe Power Systems

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Project made possible by the USDA FS WERCBTEC awarded a grant from the USDA Forest Service’s Wood Education and Resource Center (WERC) in June 2010 to advance education and outreach on biomass thermal energy

The Center's mission is to work with the forest products industry toward sustainable forest products production for the eastern hardwood forest region.

Previous webinar - “Biomass Air Quality: Measuring, Controlling, and Regulation Emissions”, www.biomassthermal.org/resource.

Next webinar – Biomass Abroad: The European Experience on Thermal Energy

All questions and attendee feedback will help form future activities.

Remember to answer the survey at the webinar’s conclusion!

I. Sponsoring Entity - Seymour

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John Cuttica

Director, Midwest Regional CHP Application Center, and Director, Energy Resource Center, University of Illinois at Chicago

CHP and District Energy Overview

II. CHP/DE Overview - Cuttica

CHP and District Energy Overview

John CutticaU.S. DOE Midwest Clean Energy Application Center

Presentation to:Large-Scale Biomass Thermal: CHP & District

Energy Systems

May 25th, 2011

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Conventional Energy System• Customer purchases power

from grid (central station)• Power plant economy of scale• 100 units input = 30 units of power• Remainder of energy lost (heat)

Central Station

100 units fuel input 30 units electric

70 units thermal rejected / lost

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Conventional Energy System

• On-site generation of steam/hot water/hot air (boilers/furnaces)• 100 units input = 60 to 80 units of heat

Furnace /Boiler

80 units thermal


100 units fuel input

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Conventional Energy System• Customer purchases power

from grid (central station)• Power plant economy of scale• 100 units input = 30 units of power• Remainder of energy lost (heat)

• On-site generation of steam/hot water (boilers/furnaces)• 100 units input = 60 to 80 units of heat

• Typical grid power + onsite heat• Efficiency depends on heat/power ratio• 40% to 55% combined efficiency is

common

Central Station

100 units fuel input 30 units electric


Furnace / Boiler

80 units thermal


100 units fuel input

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CHP System

Prime Mover

100 units fuel input 30 -35 units electric

15 - 30 units thermal rejected / lost

Generator

Heat Exchanger

Thermal System

40 – 50 units thermal recovered

Natural GasPropaneBiomassWaste ProductsOthers

70 % to 85% combined efficiency is common

Produce the power on-site and recycle the waste heat from the prime mover

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Combined Heat and Power ConceptsDistrict Energy CHPDistrict Energy CHPConventional CHPConventional CHP Waste Heat to PowerWaste Heat to Power

The sequential production of useful electric and thermal power from a single

dedicated fuel source

Captures heat otherwise wasted in an industrial / commercial process and

utilizes it to produce electric power. These

systems may or may not produce additional

thermal energy

Central heating & cooling plants that incorporate electricity generation along with thermal distribution piping

networks for multiple buildings (campus /

downtown area)

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Electricity

District Energy CHP System

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Biomass Fuels and the Environmentforest / mill residues agricultural crops & wasteswood & wood wastes animal wastesaquatic plants fast-growing trees & plantfood wastes municipal & industrial wastes

The combustion of biomass does not contribute additional greenhouse gases to the atmosphere,

it merely returns the CO2 that was absorbed during the growth of the biomass, resulting in

zero net contribution of greenhouse gases

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Basic Steps – Biomass to ElectricityEvaluate the availability of suitable biomass resources

Determine the economics of collection, storage, and transportation

Biomass Conversion Technologies (biomass to energy: combustion, gasification, anaerobic digestion, land fill gas)

Power Generation Technologies (steam turbines, reciprocating engines, gas turbines, fuel cells)

Good Reference DocumentU.S. EPA Combined Heat and Power Partnership

Biomass Combined Heat and Power Catalog of Technologies

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Converting Biomass Feedstocks to Energy

Solid Biomass Feedstocks Combustion (steam)

Solid Biomass Feedstocks Gasification (syngas)

Animal Waste

Wastewater Anaerobic Digester (biogas)

Food Processing Waste

MSW (landfills) Landfill Gas (LFG)

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Direct Fired Biomass SystemsBiomass combusted in a boiler to produce high-pressure steam. – The steam can be utilized for heating, cooling, or

generating electricity (steam turbine)

“Co-firing” - Biomass is combusted in conjunction with another fuel in a boiler (usually coal)– Reduces SO2, NOx, CO2 and other air pollutants– Normally biomass can substitute in excess of 20 t0 30%

of the prime fuel

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Biomass Fuel to Electricity / Heat

BiomassBoiler

BiomassSteam

Prime Movers

• Steam Turbine

Steam turbine Generator

Condensate Return

Steam Tap Off

Coal Boiler

Biomass

Coal

Cofiring

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GasificationHeating solid biomass in an oxygen-starved environment to produce syngas (100Btu/cf to 500 Btu/cf)Syngas is typically CO and hydrogen produced by the gasification process– Pyrolysis (~ 1,100oF) thermal decomposition of

solid biomass (oxygen starved) to produce:Gas Liquids (tar) Char-- Steam and/or Partial Combustion converts tars

and chars into CO

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Anaerobic Digestion (AD)

A process where organic waste is broken down in a controlled, oxygen free environment by naturally occurring bacteria in the waste materialThe digester produces:– Biogas (anaerobic digester gas) that can be used to

generate electricity, produce heat, be cleaned up & injected into the pipeline, or all of the above

– Liquid (methanogenic digestate) that can be used as fertilizer

– Solid fiber (acidogenic digestate) that can be used as a compost, animal bedding, or to make low grade building products

AnaerobicDigester

AnaerobicDigester

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Feedstock for DigestersDairy OperationsSwine OperationsCattle that are not land grazedPoultry Operations (to a lesser degree)Food processing residues– vegetable and dairy– Fats, oils, grease

Sewage (Human waste & food waste)

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Gasifier

Biomass

Syngas

Prime Movers

• Recip engine

• Gas turbine

• Microturbine

• Fuel Cell

Anaerobic Digester

Biogas

Land FillLFG

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Gasifier

Biomass

Syngas

Prime Movers

• Recip engine

• Gas turbine

• Microturbine

• Fuel Cell

Anaerobic Digester

Biogas

Land FillLFG

Boiler Steam Turbine ElectricGenerator electricity

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Things to Think AboutLong term availability of the biomass at reasonable cost

Onsite fuel (feedstock) management

Electric utility interface– Grid Interconnection– Rate structures– Long term power purchase agreements at reasonable

price (export systems)

Financing

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Biomass CHP DataTotal CHP = 85,000 MWTotal Biomass CHP = 6,600 MW (7.7%)

Total CHP = 3,600 unitsTotal Biomass CHP = 512 units (14.2%)

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Contact Information:

John Cuttica

Director, Energy Resources Center

University of Illinois at Chicago

312/996-4382

[email protected]

U.S. DOE Midwest Clean Energy Application Center

www.midwestcleanenergy.org

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Jonathan WilkinsonSenior Vice President, Business Development, Nexterra Systems Corp.

Biomass District Energy and CHP: Considerations and Lesson Learned

III. CHP Systems - Wilkinson

Biomass District Energy and CHP: Considerations and Lesson Learned

BTEC WebinarMay 25, 2011

32│ Private & Confidential

• Global leader in biomass gasification technology and systems

• Supplies turnkey biomass gasification systems for public institutions and industrial customers

• Enables customers to generate, clean renewable energy from low cost biomass

• Ultra low emissions, high efficiency and solution package ideally suited to urban environments

• World class partners , well capitalized with an experienced team

Tolko Industries – Kamloops•38 MMBtu/hr plywood plant heating system•Displaces natural gas•CO2e reduction: 12,000 tpy•Commissioned 2006

University of South Carolina•72 MMBtu/hr campus heat & power•CO2e reduction 20,000 tpy•Commissioned 2008

Dockside Green, Victoria•7 MMBtu/hr district heating system•Heating & Hot Water for residential complex•CO2e reduction 3,400 tpy•Commissioned May 2009

US DOE Oak Ridge National Labs•60 MMBtu/hr steam system•JCI/Nexterra selected by DOE•CO2e reduction: 23,000 tpy•Startup: 2011

Kruger Products (Scott Paper)•40 MMBtu/hr steam system•Gas displacement in a boiler•Commissioned: Q4/2009•CO2e Reduction: 22,000 tpy

UNBC, Prince George• 15 MMBtu/hr campus heat• CO2e reduction: 3,500tpy• Startup: 2010

Product Partner Combined heat and power (“CHP”) system

Channel Partner North American public institution market

Channel Partner BC public institutions

Nexterra OverviewCompany


Strategic Relationships


Why Do Biomass for District Energy/CHP?

• Reduce energy costs• Reduce carbon footprint • Demonstrate leadership in sustainability • Satisfy requirements to produce renewable power• Utilize locally sourced fuel • Divert material from landfills• Monetize carbon credits• Replace aging/inefficient/failing existing boiler infrastructure



Key Considerations for Biomass System

• Existing anchor tenant – significant heat requirement• Economics – need to understand the bark spread • Business model - how will project be financed and who will operate

system • Biomass availability –quantity, type, size, moisture• Technology – what technology will best meet your needs? (fuel types,

emissions)• Public Acceptance – must engage and listen early to alleviate

misconceptions • System sizing – match system to baseload for best displacement• System location – truck traffic, footprint, proximity to existing

infrastructure



How Biomass DE/CHP Projects Get Financed

1. BOOM Utility Model (Build-Own-Operate-Maintain) – 3rd party finances, owns and operates and sells the energy to multiple/single end users

2. Energy Services Performance Contract (ESPC) – ESCO installs and operates energy equipment and guarantees savings

3. End User Self-Financing – End user customer self-finances the project based on internal capital hurdle rates (e.g. corporate balance sheet, muni bond, etc.)

Note: • Government funding (direct grants, loan guarantees, infrastructure funding and tax

credits) apply to all models


District Energy Example


Dockside Green

• 1.3 million sq/ft of residential, office, and retail space• Located in the heart of the City of Victoria• Triple bottom-line development• Developed by Vancity and Windmill Developments• First greenhouse gas neutral community in Canada


• Cleanest technology available• Community acceptance• No dust or odor • Aesthetic designs• Minimal truck traffic• Economically viable• Ability to handle variable fuel• Fully automated & operator friendly• Potential to convert to power (future)

Dockside Green: Requirements

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Dockside Green – Victoria BC• District Heating & Hot Water – 8 MMBtu/hr• Fueled with Urban Wood Waste• Operated by Utility Services Company• Recognized by Clinton Climate Initiative• Started up May 2009

University Example

UNBC – Prince George British Columbia • 15 MMBtu/hr central heating plant• Hub of UNBC’s Bioenergy Innovation Center• 3,500 tonnes per year GHG reduction• Phase 1 Thermal, Phase 2 GE CHP


UNBC Objectives

• Displace >80% of the natural used to heat the campus• Reduce fuel costs, GHG emissions • Design system for highest air emissions performance, especially

PM 2.5• No negative impact on local air shed• Positions UNBC as a bioenergy leader in the high education market• “Learning lab” tied to engineering faculty• Create new partnerships, R&D and economic development

opportunities



Oak Ridge National Labs• 60,000 lbs/hr steam plant• Annual Savings: $4.0 MM• GHG Reduction: 22,000 tpy• Operational Q3/2011


University of Montana

CHP Example


UBC Objectives

• Advance UBC’s sustainability goals and demonstrate leadership in clean-energy innovation

• Establish a living laboratory that integrates research, teaching and demonstration

• Demonstrate first global, commercial, demonstration of innovative bioenergy system producing heat and power

• Lower UBC Vancouver’s taxable greenhouse gas emissions and fossil fuel consumption ($55/tonne)

• Strengthen UBC’s interaction and relationship with the private sector

• Establish the Province of BC as centre of clean technology innovation and commercialization

UBC CHP Demo Project

UBC – 2 MW Biomass CHP Project• Fuel Req’d: 12,500 BDMT/year (2/3 trucks/day)• Gross Power: 1.95 MW• Net Thermal: 10 MMBtu/hr (80,000 MMBtu/yr)• CO2 Red: 4,000 tpy (thermal only) • Footprint: 180’ X 90’


• Existing anchor tenant – significant heat requirement• Located in close proximity to energy users• Biomass available in the local area (at reasonable cost)• Designed to meet public expectations• Open and transparent public consultation process• Strong and consistent political/community leadership• Business model to allow for execution and operation

Requirements for a Successful District Energy System

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Michael Burns

Senior Vice President of Operations and Engineering Group, Ever-Green Energy

Case Study – District Energy St. Paul

IV. District Energy St. Paul - Burns

Be the preferred provider ofcommunity energy servicesthat benefit our customers,

the community and the environment.

Our Mission

Heating and Cooling Saint Paul

Saint Paul’s Integrated Energy System

OilElectricity

Biomass

Natural Gas

Coal

Future Energy Sources

Residential

Industrial

Commercial

Thermal Storage

DistributionInfrastructure

Solar

Centralized CommunityHeating & Cooling System

Saint Paul’s Integrated Energy System

Heats more than 80 percent of the downtown area - over 31 million sq. ft.Primary fuels are renewable, clean, urban wood and forest residuals Combined heat and power– 25 MW of electricity; 65 MW thermal energy

– Reduced fuel consumption

– Increased efficiency

Benefits of Hot Water Distribution

Efficient – less distribution loss Network dispersed plants and solutionsCollect waste/surplus thermal energyFacilitates storage of thermal energy

District Cooling

District Cooling

Chilled-water demand is 29,000 tons

– Serves more than 60% of the downtown area –approximately 19 million sq. ft.

Chilled water system includes 6.5 million gallons of storage capacity

Thermal storage reduced peak-electric demand by as much as 9,000 kilowatts

Bringing “green energy” to Saint Paul -Combined Heat and Power

Saint Paul uses up to 300,000 tons per year of clean, renewable wood residuals

St. Paul Cogeneration

25 MW of electricity

Renewable, clean, urban wood and forest residuals

Double the efficiency of conventional electricity-only power plants

Greenhouse gas CO2 reduced by 280,000 tons per year

Fuel diversification (2009)

0%

20%

40%

60%

80%

100%

Before After

BiomassOilGasCoal

Before and after wood-fired CHP project…

Why wood waste?

Large quantities in Twin Cities

Disposal problemEconomically viable

Community based

Wood Waste Processing

Where does the wood come from?Tree Waste:

Municipal parks and forestry operationsDNR projectsLand clearers (large developments)Tree removal contractorsStorm damageDiseased treesForest residuals

Challenges

Biomass Fuel• Availability/location/sustainability• Quality• Variability/seasonality of supply• Competition• Logistics - transportation and storage• Fuel handling system design

Solar Thermal Integration

2010: Solar America Cities (DOE) Special Project

Benefit: Energy Conservation

52.3

48.5

43.3

35.0

40.0

45.0

50.0

55.0

1989 1999 2009

Fuel Consumption per Service Area (kBtu/ft2)

Fuel use per Unit Area (kBtu/sq ft)

Fuel Consumption per Square Foot(kBTU/ft2)

Fuel use per square foot(kBtu/sq ft)

Benefit: Rate Stability

$0.000

$0.020

$0.040

$0.060

$0.080

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Fiscal YearDemand Charges Energy Charges

Combined Rate Summary, FY-1998 to 2010$ Per kWh

District Energy St. Paul

$0.00

$0.10

$0.20

$0.30

$0.4019

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

10

Fiscal YearDemand Charges Energy Charges

$ Per Ton-Hour at 1200 Utilization Hours

Combined Rate Summary, FY-1998 to 2010

District Cooling St. Paul

Thank You!

76 Kellogg Blvd W, Saint Paul MN 55102www.districtenergy.com

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Q & A

V. Discussion - Seymour

Ask questions using the Questions Panel on the right side of your screen.

All questions and comments will be recorded and incorporated in the webinar summary report.

Also, please take a few moments to answer the survey questions.

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Other Resources

Next webinar - June 15, 12 PM ET:Brits, Brussels, and Biomass: The European Path Towards Renewable HeatingSign up: https://www2.gotomeeting.com/register/825689098

Speakers:

Günter Hörmandinger, First Counselor – Environment, Delegation of the European Union to the United States of America

Andrej Miller, Office for Renewable Energy Deployment, UK Department of Energy and Climate Change

Christiane Egger, Deputy Director, Upper Austrian Renewable Energy Agency

Joseph Seymour, Policy and Government Affairs, BTEC

Moderated by Emanuel Wagner, Outreach, Education and External Affairs, BTEC

V. Other Resources - Seymour

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Other Resources

Planned webinars:

--June 24, 2011: Financing Biomass Thermal Projects

More resources (biomassthermal.org/resources)-- Interviews (6+, also on iTunes Podcasts)-- Factsheets-- Presentation

V. Other Resources - Seymour

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Upcoming Events

Argus Renewables Trading Summit AmericasJune 7-8, NYC

argusrenewables.com/

Congressional Renewable Energy & Energy Efficiency EXPO + Forum

June 16, DCsustainableenergycoalition.org/eere_expo/

V. Upcoming Events - Seymour

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More Information

This Webinar will be available by Tuesday, May 31.

Sign up to receive BTEC news at on our website.

Consider Joining BTEC--Receive regulatory and policy intelligence--Connect with other biomass leaders--Support the market’s growth and outreach

V. More Information - Seymour

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Thank you!

BTEC Board of Directors

If you want to learn more about the biomass thermal industry, BTEC, or membership, visit

www.biomassthermal.org

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Documents

District Energy and CHP - Biomass Thermal Energy Council