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Satisfying State & Federal Renewable Energy Standards with Biomass Energy
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Satisfying State & FederalSatisfying State & FederalRenewable Energy StandardsRenewable Energy Standardswith Biomasswith Biomass
Scott MillerPrice BIOstock, Marketing DirectorDecember, 2009
Victoria, Australia
Paper & Pulp
PBS Headquarters
14 million tonsper year
Price BIOstock
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
OverviewOverview
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
State renewable portfolio standard
State renewable portfolio goal
Solar water heating eligible *† Extra credit for solar or customer-sited renewables
Includes separate tier of non-renewable alternative resources
WA: 15% by 2020*
CA: 20% by 2010
☼ NV: 25% by 2025*
☼ AZ: 15% by 2025
☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)
HI: 40% by 2030
☼ Minimum solar or customer-sited requirement
TX: 5,880 MW by 2015
UT: 20% by 2025*
☼ CO: 20% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*
MT: 15% by 2015
ND: 10% by 2015
SD: 10% by 2015
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
☼ MO: 15% by 2021
IL: 25% by 2025
WI: Varies by utility;10% by 2015 goal
MI: 10% + 1,100 MWby 2015*
☼ OH: 25% by 2025†
ME: 30% by 2000New RE: 10% by 2017
☼ NH: 23.8% by 2025
☼ MA: 15% by 2020+ 1% annual increase(Class I Renewables)
RI: 16% by 2020
CT: 23% by 2020
☼ NY: 24% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18% by 2020†
☼ MD: 20% by 2022
☼ DE: 20% by 2019*
☼ DC: 20% by 2020
VA: 15% by 2025*
☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)
VT: (1) RE meets any increasein retail sales by 2012;
(2) 20% RE & CHP by 2017
29 states & DChave an RPS
5 states have goals
KS: 20% by 2020
☼ OR: 25% by 2025 (large utilities)*5% - 10% by 2025 (smaller utilities)
1. State Renewable Portfolio Standards (RPS)
DOE / EERE DSIRE website - August 2009
August 2009
State resources to meet RPS mandates
PEW Center on Global Climate Change
Solar
WindBioPower
Pulp & Paper
+$
‘70’s “Cradle-to-grave” material value cycle
Natural Gas Boilersfor Power &Biomass Conversion
Wood Biomass& Grid Power
Wasteto
Landfill
+$
Waste asan EnergyFeedstock
- Black liquor- Sawdust- Wood residues- Bark
‘80’s “Cradle-to-cradle” bioenergy value cycle
Tomlinson Boilersfor Power &Biomass Conversion
Wood Biomass
Pulp & Paper
6GW by 1990’s56% plant power
2. Biomass Power options
Biomass power plant– Wood chips and biomass - <75MW per plant
Logistics Challenge
Green wood is 50%moisture
Hauling costs about$.12 per ton per mile
Feedstock deliveriesmust be to the plant
The greater thevolume, the moreoptions needed
The number oftruckloads/day
75 Miles
50 Miles
25 Miles
One dot = 5,000 acres
Federal land
23,000,000 acresvs. 7,300,000 acres
Before EISA RFS
After RFS
Georgia’s qualifying biomass
USDA Forest Service - Forest Inventory and Analysis National Program
USDA Forest Service - Forest Inventory and Analysis National Program
One dot = 5,000 acres
Federal land
19,000,000 acresvs. 500,000 acres
Before EISA RFS
After RFS
California’s qualifying biomass
Thinnings & salvage
6 of the 7 worst fire seasons
National Interagency Fire Center, 2008
Cone Fire - 2002
U.S. Forest Fires1960-2007
2. Biomass Power options
Biomass power plant– Wood chips and biomass - <75MW– Pellets - wood or energy crops– Syngas replacement for natural gas
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
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
3. The cost of wood - industry “byproducts”
There is very little valueless waste
– C&D waste
– Understory on federal lands
– Logging waste
– Sawmill byproducts
– Papermill byproducts
– Urban and yard waste
The cost of harvested wood - stumpage prices
BioPower
Example: $25/ton biomass delivered to mill
$13Harvesting
$5Freight
$7Stumpage
Procurement
Still using the same methods that have beentime tested by the forest industry:
A combination oflong and short term agreements
as a baseand purchasing on the open market
for the rest.
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
4. Handling - Set up a woodyard with chipping
All chip handlers
Every logger in haul distance
Lessons to be learned
There is very little valueless waste
Location and feedstock flexibilitydetermine wood cost
Professionals pay for themselves andhelp ease investor worry
A chip buying facility is vulnerable toloss of suppliers and low volumes
>1,000 tpd - Plant should includechipping capabilities
Scott MillerMarketing [email protected]
Scott MillerPrice BIOstock, Marketing DirectorDecember, 2009