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Christopher S. Galik Robert C. Abt Ronalds W. Gonzalez SOFAC Annual Meeting, August 8, 2013 Durham, NC Economics, Carbon Scores, and Market Impacts of Woody Biomass

Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

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Page 1: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Christopher S. GalikRobert C. Abt

Ronalds W. GonzalezSOFAC Annual Meeting, August 8, 2013

Durham, NC

Economics, Carbon Scores, and Market Impacts of Woody Biomass

Page 2: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

• Overview of recent research

– An investigation of drivers of GHG balance in an applied setting

• Glimpse into new research

– Interaction between EU demand and US forest condition

• Status update on ongoing research

– USDA AFRI

Page 3: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Recent Research: Feedstock Source and Facility GHG Dynamics

• Partnership between Duke, NCSU, Southern Company, and EPRI

• Sought to examine the drivers of GHG dynamics, particularly feedstock sourcing decisions

Page 4: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Assumed woody biomass supply region for Georgia Power’s Plant Mitchell, Albany, Georgia

Page 5: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Feedstock Options

Parameter

Scenario

Market Allocation Specified Feedstock

Feedstock Endogenous (SRTS-allocated)

- 35% forest residues

- 15% whole tree

- 50% waste

Plantation establishment/

maintenanceEmissions estimated for softwood plantations only

Harvest Emissions estimated for all feedstock, regardless of species or component

Transportation Assumes mean travel distance of 50km

Residue Decay Emissions estimated for all residues, regardless of species

Landfill Emissions N/A

Calculates alternate fate of waste

feedstock stream in baseline

scenario. Assumes that 15% of

decayed carbon is emitted (10% as

CO2; 5% as CH4)

Page 6: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Annual GHG benefit of biomass conversion assuming market allocation of feedstock

Page 7: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Annual GHG benefit of biomass conversion assuming specified feedstock allocation

Page 8: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Annual GHG benefits of SRTS-allocated and defined-feedstock examples

Page 9: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Cumulative GHG benefits of SRTS-allocated and defined-feedstock examples

Page 10: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Conclusions and Next Steps• Counter-intuitively, seeking out “anyway tons” leads

to reduced GHG benefit as compared to market allocation

• Again, price signal and corresponding planting/ forestland maintenance behavior drives the finding

• Timing of emissions is important when burning an otherwise-degrading feedstock

• Publication in process…

Page 11: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

New Research: EU Demand and US Forest Condition

• What are the implications of expected EU pellet demand?

• How do changes in US forest condition align with EU sustainability requirements?

• How do alternative levels of demand or different sustainability criteria affect outcome?

• Funds will support applied analysis, outreach, and partnership development

Page 12: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Biomass emission intensity against a 60% reduction in average GHG intensity

Page 13: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

EU Demand and US Forest Condition

From: Goh et al., Biofuels, Bioprod. Bioref. 7:24–42 (2013)

Page 14: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Ongoing Work: USDA/NIFA Grant

• Technical work to focus on increased linkage between regional (SRTS) and national (FASOMGHG) modeling efforts

• Applied analysis to include three “novel” policy options:– Regional public/private biomass supply partnerships– Regional biomass reserve program– Integrated regional renewable energy standard

• First results expected Winter 2013

Page 15: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Questions…?

[email protected]

+919.681.7193

Page 16: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Extra Material

Page 17: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Drivers of variation in bioenergy GHG determinations as reported by a subset of bioenergy LCA studies (n=16)

Page 18: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Cumulative GHG benefit of conversion assuming market allocation of feedstock

Page 19: Economics, Carbon Scores, and Market Impacts of Woody Biomass€¦ · Economics, Carbon Scores, and Market Impacts of Woody Biomass •Overview of recent research –An investigation

Cumulative GHG benefit of conversion assuming specified feedstock allocation