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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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Large-Scale Biomass Thermal
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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Large-Scale Biomass Thermal
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
20 units thermal rejected / lost
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
70 units thermal rejected / lost
Furnace / Boiler
80 units thermal
20 units thermal rejected / lost
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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Biomass Fuel to Electricity / Heat
Gasifier
Biomass
Syngas
Prime Movers
• Recip engine
• Gas turbine
• Microturbine
• Fuel Cell
Anaerobic Digester
Biogas
Land FillLFG
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Biomass Fuel to Electricity / Heat
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
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
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Strategic Relationships
33│ Private & Confidential
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
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34│ Private & Confidential
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
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35│ Private & Confidential
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
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District Energy Example
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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
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• 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
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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
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Oak Ridge National Labs• 60,000 lbs/hr steam plant• Annual Savings: $4.0 MM• GHG Reduction: 22,000 tpy• Operational Q3/2011
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University of Montana
CHP Example
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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’
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• 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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