A Utility Perspective on Renewables and Biomass Doug Boylan – Southern Company

A Utility Perspective on Renewables and Biomass

Doug Boylan – Southern Company

Traditional Utility

•Goals– Low cost, reliable energy provider

•Selected technologies– Hydro, nuclear, coal, natural gas

Drivers Toward Renewables

• Green house gas mitigation• Market demand for Green

Power• Government mandated

Renewable Portfolio Standards (RPS)

• Seeking lowest cost renewable energy options

Seeking Low Cost Large Scale Options for RPS

(Southeast US)• Solar - $$$• Wind – Good, but limited in resource• Landfill gas – Good, but limited resource• Small hydro – Good, but limited resource• Biomass – Good? • Purchase Credits – Sets renewable cost

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Biomass OptionsCo-firing

•Uses existing plant•Displaces coal directly•Reduced capital costs•Application limited by ash and

operational considerations•Co-Mill – limited percentage (3-

5%)•Direct Injection – Higher

percentage (10 - 20%), higher cost

Biomass OptionsGasification

• Higher capital cost• Higher efficiency• Displaces a higher

cost fuel• Greater potential

to meet large RPS generation needs

Grass Wood

Fuel Cost ($/MMBtu) 3 – 4 2 – 3.5

Moisture 10-15% 20-60%

Metals Low Low

Sulfur Low Low

NOx Moderate N Low N

Slagging and Fouling High K Moderate K

Catalyst effect High?Moderate?

Ash sales ? Non-spec Low Non-spec

Co-fire ¢/kWh (Est.) 2.6 – 3.0 0 – 2.6

Gasification ¢/kWh (Est.) ? 1.0 – 3.0

Grass Wood

Fuel Cost ($/MMBtu) 3 – 4 2 – 3.5

Moisture 10-15% 20-60%

Metals Low Low

Sulfur Low Low

NOx Moderate N Low N

Slagging and Fouling High K Moderate K

Catalyst effect High?Moderate?

Ash sales ? Non-spec Low Non-spec

Co-fire ¢/kWh (Est.) 2.6 – 3.0 0 – 2.6

Gasification ¢/kWh (Est.) ? 1.0 – 3.0

Contrast Wood and Grass as Fuels

Biomass - Closed and Open Loop

• Biomass will probably need tax or other incentives to compete

• Tax incentives have tended to favor Closed Loop

• Grass probably has the best opportunity to be Closed Loop

ConclusionsFrom the Utility perspective:

•Biomass has potential to supply RPS requirements

•Grasses and wood each have advantages and disadvantages

•Utility desire is to keep funds in our service area

•Biomass will probably need tax credits or other support to be viable for renewable energy

Questions?

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grass benefits co-mill benefits dir inj benefits

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milling energy cost

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fuel diff cost

Costs of Co-Fire