Biomass Challenges for Federal Agencies Presented to the

Biomass Challenges for Federal Agencies Presented to the Renewable Energy Working Group September, 2002

• Fort Stewart, GA • Hampton Roads, VA • Bio-Diesel for Transportation Existing and Pending Biomass Use in Agencies • E-85 for Transportation • Gasohol for Transportation • Mc. Murdo Sound • NASA and LFG

• Build Projects that Use Biomass Energy • Buy Green Power that Uses Biomass Energy Three Approaches • Facilitate the Use or Development of Biomass on Federal Lands or Through Federal Programs

• Electric or thermal - solid fuel or gasification – Small-scale systems, distributed generation Bioenergy Technologies – Large scale generation or cogeneration – Co-firing (biomass and coal or natural gas) • Liquid Biofuels – Ethanol, methanol, bio-oil, bio-diesel • Chemicals and biobased products

• Fuel can be stored, unlike wind or solar, therefore: – Biomass can be dispatched when needed Biomass Fuel Flexibility – Biomass plants can have high capacity factors • Biomass can be: – substituted for natural gas, – blended with conventional fuels – biodiesel and ethanol – blended with coal

• Small-scale power or cogeneration systems • Large-scale biomass generating plants – Combined heat and power Applications for Bioenergy – Stand-alone power plants (usually 20 MW or larger) • Wood heating at small facilities – schools, hospitals, housing • Co-fire in industrial or utility boilers • Liquid fuels, specialty chemicals • Green power purchases

Microgeneration – Performance 15 k. We gasifier/engine 55 k. We gasifier/engine 280 k. We gasifier/engine Capacity (k. We) 15 55 280 Thermal (k. Wth) ? 120 600 Company CPC, USA Xylowatt Yrs in business 7 7 7 Number of units 3 built, 7 coming 10 demos Status Demo/Com Biomass GT/yr 100 -200 400 2000 Footprint 10 x 6 x 7 ? ? Installed cost ($) $150, 000 (full demo costs) $300, 000 $800, 000 (12 h/day; 50% MC, 4000 Btu/lb)

Community Power Corp - Biomax 15

Xylowatt SA (Swiss) 55 k. W electric 120 k. W thermal 450 tons/year fuel

Facility Heating System Performance Wood furnace Wood gasifier/burner Thermal capacity 0. 03 – 1 MWth (115 k – 1 MMBtu/hr) 0. 1 - 3 MWth (. 5 – 14 MMBtu/hr) 0. 6 – 12 MWth (2 – 40 MMBtu/hr) Company Taylor Waterstoves Chiptec Converta Kiln Installed cost $4, 500 - $65, 000 $30, 000 – $275, 000 (gasifier only) ? ? Status Commercial Years in business Not Known 16 Not known Biomass use (GT/year) 50 – 3, 000 330 – 10, 000 2, 000 – 40, 000 # systems in operation 1000 s >125 in NA 300 -400 Note: Biomass use estimates assume 0. 90 capacity, 33, 475 Btu-h/boiler hp, and 4, 000 Btu/wet lb biomass heat content

Chiptec Systems, Vermont • • • Heat only or CHP 5 – 45% MC Wide range of sizes Turnkey systems Co-gen (35 k. W – 5 MW) Automated fuel handling

• Messersmith Manufacturers (Michigan) Other Wood Heating System Manufacturers • Grove Wood Heating, Inc (Canada) • Industrial Boiler Company (Georgia) • KMW Energy Systems, Inc (Canada)

Category Units Biomass (Mc. Neil Tech) Biomass (EPRI / FERCO) Coal Co-Fire Coal / Biomass Natural Gas Direct Fire Pulveriz ed coal Pulverized coal Combined cycle Technology Cost Comparisons: Biomass vs. Fossil Fuels Capacity MW 20 50 300 100 Installed Cost $/kw $2, 200 $1, 965 $1, 195 $271 $500 Heat Rate Btu/k Wh 20, 000 14, 483 9, 830 10, 440 6, 500 Capacity Factor % 90 80 80 Fuel Cost $/MM Btu $2. 24 $2. 63 $0. 77 N/A $2. 85 Levelized Cost $/k. Wh $0. 061 $0. 075 $0. 044 N/A $0. 041

• • Facilitated Project Potential Millions of tons of biomass will either fuel wildfires or be removed Agencies helping private sector use thinnings for energy would be significant for the Federal goal, and for U. S. bioenergy development • USDA Forest Service and Interior are the 800 pound gorillas in this situation • Do. D, DOE and others with landholdings to manage have specific local opportunities • DOES NOT HAVE TO BE CONSUMED BY THE AGENCY TO COUNT!

Current Situation and Issues • Fires continue to threaten communities • Increased interest and debate over forestoration – mechanical treatment vs. prescribed burn – diameter limits – community defense only vs. landscape treatment • Mitigation efforts are expensive, but not as costly as fires • Market outlets for small diameter trees can help defer thinning costs

• 46, 000 acres targeted for mechanical thinning under National Fire Plan in 2001, just in Urban-Wildland Interface (UWI) and areas to reduce fire threats to communities USFS Example • Conservatively, could have supported 436 MW of biomass capacity and over 3000 GWh of generation • Excludes acres with prescribed burns, or a combination of treatments

• DRAFT NREL Assessment of RE Potential on Federal Lands, including biomass BLM Example • Used satellite data showing Normalized Difference Vegetation Index (NDVI) above 4, proximity to communities at fire risk, population centers. • Identified Planning Units in the Following States: • • • Arizona California Colorado • • Montana New Mexico Oregon Washington

• Biomass fuel prices generally stable – hedge against fuel cost variability • Biomass $ stay in state and local economies Benefits of Bioenergy • Rural economic development and job creation (CA = 5 jobs/MW capacity) • Biomass fuel costs not subject to control of a single supplier

• Biomass is a baseload renewable resource • Reduce SOx and fossil CO 2 emissions Benefits of Bioenergy (con’t) • Biomass systems are easy to convert to other fuels • Outlet forest health restoration activities • Landfill diversion of urban wood wastes

Why Isn’t It Happening? • Uncertainty – Environmental opposition, distrust – When, where, how much thinning, and how long must be known to develop supply curve • Wildfire is overwhelming focus – not benefits of using thinnings • Little coordination among agency, state and community plans and investments • Small-scale technologies adaptable to supply uncertainty are just becoming commercial • Interconnection , stand-by and buy-back rates

Electricity Sales: Breakeven Price vs. Biomass Fuel

• In contracts seek proposals for energy reuse of removed biomass and industry input on structure of requests for proposals Modest Proposals • Work in coordination with States, communities and environmentalists in promising areas to create reliable supply • Support demonstrations of modular technologies that address supply issues

• USFS Supported Work with Nevada Tahoe Conservation District, small-scale system • Pending CEC Project on Distributed Biomass Generation with Truckee-Donner PUD • CEC-Funded Analysis of RE Distributed Generation and Public Benefits Interesting Projects • Four Corners sustainable forest partnership bioenergy project • Front range biomass energy assessment • Summit and Eagle county biomass energy assessment • Yavapai Apache Feasibility Study

Kevin De. Groat Mc. Neil Technologies 6564 Loisdale Court, S-800 Springfield, VA 22150 Phone: 703 -921 -1632 Fax: 703 -921 -1610 Email: kdegroat@mcneiltech. com www. mcneiltech. com Contacts Scott Haase Mc. Neil Technologies 143 Union Blvd. , Suite 900 Lakewood, CO 80228 Phone: 303 -273 -0071 Fax: 303 -273 -0074 Email: shaase@mcneiltechco. com www. mcneiltech. com