Regional Developments of Biomass Energy...State University of New York ‐ Environmental Science and...

Regional Development: The Midwest

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Regional Developments of Biomass Energy:

The MidwestThis Webinar is brought to you by:

Biomass Thermal Energy Council (BTEC) and Heating the Midwest

With the generous support of the U.S. Forest Service

Wood Education Resource Center

2 PM ET, November 21, 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.”

Regional Development: The Midwest

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Joseph Seymour - Introductions

Executive Director - Biomass Thermal Energy Council (BTEC)

I. Introduction - Seymour

Regional Development: The Midwest

Quick notes

Two 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.

I. Introduction - Seymour

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Speakers

Michael Curci, Business Development Manager and Retail Sales Consultant, Indeck EnergyBecky Philipp, Project Development Coordinator, Agricultural Utilization Research Institute Pamela Porter, Midwest Office Director, Biomass Energy Resource Center

Gregg Mast, V.P. - Agriculture & Biomass Business Cluster, BioBusiness Alliance of MinnesotaTM

Moderator

I. Event Introduction - Seymour

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Presentation OutlineI. Introduction – Joe SeymourII. Overview of the Midwest –

Gregg Mast

III. Demographics –

Michael Curci

IV. Resources –

Becky Philipp

V. Policy and Advocacy –

Pamela Porter

VI. Round Table Discussion –

Led by Gregg Mast

VII. Audience Q & A –

Gregg Mast

VIII.Next Events – Joe Seymour

[Full presentation will be available online, www.biomassthermal.org/resource/webinars.asp]

I. Event Introduction - Seymour

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Introduction BTEC

Introduction to BTEC

The Biomass Thermal Energy Council (BTEC) is the industry trade association dedicated to advancing the use of biomass for heat and other thermal energy applications.

Why was BTEC established?

1. To advocate for and promote the industry in the national energy policy debate

2. To reach out to and educate the public and decision makers on the benefits and advantages of using biomass for heat

3. To develop biomass energy research and analysis that enables sound investment and policy decisions

Regional Development: The Midwest

BTEC’s membership* * As of November 13, 2011

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Introduction BTEC

Regional Development: The Midwest

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BTEC Membership

I. Introducing BTEC - Seymour

Abundant Power Ernst Biomass Public Policy VirginiaACT Bioenergy Forest Energy  Rainforest AllianceAFS Energy Systems FutureMetrics Ray AlbrightAlliance for Green Heat Green Clean Heat Recast EnergyAlternative Energy Solutions International Indeck Ladysmith Renewable Energy ResourcesAmerican Agriculture Movement Innovative Natural Resource Solutions Resource Professionals GroupAmerican Biomass Integrated Biomass Resources Richmond Energy AssociatesAmerican Wood Fibers International Renewable Energy Technology Institute Sandri CompaniesAPEX International WoodFuels Santa Energy CorporationBear Mountain Forest Products Jesse E. Lyman Pellets Sewall CompanyBiomass Combustion Systems Lignetics of Virginia Skanden EnergyBiomass Commodities Corporation Maine Energy Systems State University of New York ‐ Environmental Science and Forestry

Biomass Energy Resource Center Maine Pellet Fuels Association Tarm BiomassBiomass Energy Works Marth Twin Ports TestingBionera Resources Missouri Corn Merchandising Council University of British ColumbiaBiowood Energy Montana Community Development Corporation Vapor Locomotive CompanyChip Energy National Network of Forest Practitioners VecoplanClean Power Development New England Wood Pellet Vermont Sustainable Jobs FundComact Equipment New Horizon Vermont Wood PelletConfluence Energy Northeast Mill Services ViessmannContinental Biomass Industries PA Pellets West Oregon Wood ProductsControl Labs Pellet Technology USA Western Ag EnterprisesCorinth Wood Pellet Pelletco Westervelt Renewable EnergyCousineau Forest Products Piney Wood Pellets Wilson Engineering ServicesDejno's Plum Creek Wisconsin Energy Conservation CorporationEcostrat Pratt & Whitney Power Systems ‐ Turboden WoodmasterEnviva Materials Proe Power Systems Zilkha Biomass Energy

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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 webinars available at: www.biomassthermal.org/resource.

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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Gregg Mast - ModeratorV.P. Agriculture & Biomass Business Cluster, BioBusiness Alliance of MinnesotaTM

Overview of the Midwest

II. Overview of the Midwest - Mast

BTEC Webinar - November 21, 2011

Overview:• Volunteers representing industry, government,

non-profit, university and tribal organizations• Seek to grow awareness and usage of sustainable

biomass for heating and CHP

Mission: “To advance biomass thermal heating in the Midwest for a more sustainable future, while improving the economic, environmental and social well-being of the region.”

Michael Curci, Indeck

Energy, LLC (chairperson); mcurci@indeckenergy.com

Scott Bagley, Center for Cooperative Forest Enterprises; scott@nnfp.org

Jeff Borling, Area Partnership for Economic Expansion; jborling@apexgetsbusiness.com

Brian Brashaw, University of Minnesota Duluth NRRI; bbrashaw@nrri.umn.edu

Per Carlsson, ABioNova; per.carlsson@abionova.se

Julie Goetz, Hearth & Home Technologies; goetzj@hearthnhome.com

Fred Iutzi, Illinois Institute for Rural Affairs, Western Illinois University; F‐Iutzi@wiu.edu

Gregg Mast, The BioBusiness

Alliance of Minnesota; gmast@biobusinessalliance.org

T.J. Morice, Marth

Wood Shaving Supply, Inc.; tj@marthwood.com

Becky Philipp, Agricultural Utilization Research Institute; bphilipp@auri.org

Pam Porter, Biomass Energy Resource Center ‐Midwest Office; paporter@sbcglobal.net

Chris Wiberg, Timber Products Inspection; cwiberg@tpinspection.com

Bruno Zagar, Fond du Lac Band of Lake Superior Chippewa; BrunoZagar@FDLREZ.COM

Steering Committee

Demographics Action Team

Biomass Resources Action Team

Biomass Combustion Technology Action Team

Benefits & ConsequencesAction Team

Public Policy Action Team

Affiliated and Supported by:Biomass Energy Resource CenterBiomass Thermal Energy CouncilPellet Fuels Institute

Economic:• Potential to create good jobs –

expand

rural economic development• Price of biomass must be competitive with

the regional price of fossil fuels (natural gas, LPG, heating oil)

• Requires reliable cost, quality, and long- term availability of feedstock

Environmental:• Sustain health and productivity of forest

and agricultural-based industries• Enhanced carbon advantages• CO2

reduction cost

Social:• Build healthy and vibrant communities• Increase awareness, education, and

availability of biomass thermal conversion technology

• Expand support for public policy to grow the biomass thermal industry

Source: U.S. Census Bureau

652,894 units

Source: U.S. Census Bureau

592,324 units54,493 units

Pop(millions) Nat Gas Fuel Oil Elec LPG Other

US 330 51% 9% 30% 7% 2%

MN 5.3 68% 6% 12% 10% 4%WI 5.7 66% 8% 11% 11% 4%MI 10.0 78% 4% 7% 9% 2%ND 0.6 43% 9% 29% 16% 3%SD 0.8 48% 7% 20% 22% 3%IA 3.0 67% 2% 13% 16% 2%

25.4 70% 5% 11% 11% 3%

*2000 data per: www.eia.doe.gov/state/state energy profiles

Home Heating –

Share of Households*

Source: Chuck Hartley, LHB, 2011

In the Midwest Region…• Residents consume 941 trillion BTU/yr heating 9.6

million homes with only 3% coming from renewable sources

If 25% of home heating from renewable resourcesand 75% coming from sustainable biomass…• 9.4 mil TPY pellet equivalent would be consumed• $1.2B new dollars per year injected into regional

economy• $4.3B reduction in non-renewable fossil fuel costs

Source: Chuck Hartley, LHB, 2011

www.heatingthemidwest.org

1st

Annual“Heating the Midwest with Renewable Biomass”

Conference & Expo

Eau Claire, WIApril 25 –

27, 2012

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Michael CurciBusiness Development Manager and Retail Sales Consultant, Indeck Energy

Demographics

III. Demographics – Curci

BTEC Webinar - November 21, 2011

2000 Census2000 Census◦

Iowa 2.9 million◦

Illinois 12.4 million◦

Michigan 10 million◦

Minnesota 5.3 million◦

Wisconsin 5.7 millionTotal Population 36.3

2010 Census2010 Census◦

Iowa 3 million◦

Illinois 12.8 million◦

Michigan 9.9 million◦

Minnesota 5.3 million◦

Wisconsin 5.7 millionTotal Population 36.7

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Source: U.S. Census

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*Source: U.S. Energy Information Administration

Wisconsin Minnesota Michigan Iowa Illinois

Natural Gas

66% 68%` 78% 67% 81%

LPG 11% 10% 9% 16% 6.5%

Fuel Oil 8% 6% 4% 2% 1%

Electricity 11% 12% 7% 13% 12%

Wood 4% 4% 2% 2% 1%

Wisconsin Minnesota Michigan Iowa Illinois U.S.

Natural Gas

65.8% 67.7% 77.7% 65.2% 80.7% 49.7%

LPG 11.0% 10.1% 9.0% 13.6% 4.2% 5.2%

Fuel Oil 4.0% 3.4% 1.9% 1.0% 0.3% 6.8%

Wood 4.5% 2.6% 3.1% 1.7% 0.5% 2.0%

Electricity 13.3% 14.4% 7.3% 17.1% 13.6 34.8%

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*Source: U.S. Census

Population % of PopulationTotal 86,505 100%Natural Gas 38,062 44%LPG 11,525 13.3%Electric 14,380 16.6%Fuel Oil 14,004 16.2%Wood 4,130 4.8%Other 4,404 5.1%

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*Source: U.S. Census

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#2 Fuel oil = $3.29 per gallon ◦

$29.80 per mmbtu

@ 80 efficiency

LPG = $2.9 per gallon ◦

$37.76 per mmbtu

@80% efficiency

Natural Gas = $9.72 per thousand cubic feet ◦

$9.48 per mmbtu

@ 80% efficiency

Wood Pellets = $200.00 per ton retail◦

$13.55 per mmbtu

@ 90% efficiency

What is the total energy consumption of our region and how is it distributed.

How much fossil fuel are we using (gallons of fuel oil, ___ of natural gas) and where do these fossil fuels come from.

How does biomass thermal compare with solar and geothermal (others?) in our region as a reasonable renewable solution?

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Contact:

Mike Curci, Indeck

Energy(850)557-7674

mcurci@indeckenergy.com

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Becky Philipp Project Development, Coordinator, Agricultural Research Utilization Institute

Resources

IV. Resources– Philipp

Becky PhilippProject Development Director

Agricultural Utilization Research Institute (AURI)

BTEC Webinar - November 21, 2011

Overarching goal of the Team:◦

Determine what the overall assets are for thermal heating for the Midwest.

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Team Members: ◦

35 groups from industry, government, non-profits and tribal organizations representing IL, IA, MI, MN, ND, SD & WI

Action Team Leaders: ◦

Alan Doering, Senior Associate Scientist Co-Products, AURI◦

Becky Philipp, Project Development Director, AURI

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Immediate Goal:◦

Midwest Biomass Resources Inventory

Desired Outcome:◦

“Snap shot”

of Midwest biomass resources for

the 2012 HTM Conference and furthering the HTM Vision.

Future Goal:o Expanding the regional biomass industry &

infrastructure

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Midwest Biomass Resources Inventory Project◦

Assembly of existing regional resources and project estimates into one database

◦

Project Funders: Agricultural Utilization Research Institute (AURI), Crookston/Waseca/Marshall, MinnesotaJoint Economic Development Commission (JEDC), Bemidji, MinnesotaMinnesota Power, Duluth, Minnesota

Project Leads:AURI, Alan Doering, Co-Products Utilization, Waseca, MNNorth Dakota State University (NDSU), David Ripplinger, Dept. of Agribusiness & Applied Economics, Fargo, ND

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Stover Poplar Chips

Switchgrass

Ash 10% 1.5% 6%Percent Volatiles

75% 82% 76%

HHV 7967 8431 7956Density 8 lb/ft3 13 lb/ft3 7 lb/ft3

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Sources: National Renewable Energy Lab & Pennsylvania State University

State Forest Crop Residue Mill WasteIllinois 802,576 22,747,306 329,102 Iowa 246,176 24,256,741 179,618 Michigan 1,749,172 3,857,551 1,704,938 Minnesota 2,904,227 13,901,763 1,208,444 North Dakota 29,194 7,338,291 7,056 South Dakota 133,858 7,213,061 196,794 Wisconsin 3,693,441 4,367,612 1,591,889

Source: National Renewable Energy Laboratory

Forest Residue –

Dry Tonnes Per Year Agricultural Residue –

Dry Tonnes Per Year

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The project’s scope is large, but we are building on the work of others… …and as a team.

Assembled current biomass feedstock availability research (national and Midwest studies)

Studies also shared with the broader bioenergy community via KDF Knowledge Library

Developed regional biomass inventory database consisting of existing datasets

Identified preliminary methods for estimating technical and economical feasibility supplies of forest, agricultural and dedicated energy biomass

Begun drafting the preliminary report

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Work is underway◦

Anticipated Completion of Preliminary Draft –

January 2012◦

Final Report “Roll Out”

-

Heating the Midwest

Conference, April 2012

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Contact: Becky Philipp, AURIbphilipp@auri.org(218) 281-7600

...Leading Agriculture Innovation from Idea to Reality

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Pamela Porter

Midwest Office Director, Biomass Energy Resource Center

Regional Policy and Practical Approaches

V. Regional Policy and Practical Approaches - Porter

Pam PorterMidwest Director

Biomass Energy Resource Center

BTEC Webinar - November 21, 2011

Advance biomass thermal energy heating in the Midwest through policy development and implementation.

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Co-Chair, Pam Porter, Biomass Energy Resource CenterCo-Chair. Dennis Becker, University of MinnesotaBrian Brashaw, University of Minnesota-Duluth, NRRI (MN)Don Fosnacht, University of Minnesota-Duluth, NRRI (MN)Wayne Dupuis, Fond du Lac Band of Lake Superior Chippewa (MN)Nancy Lange, Izaak Walton League (MN).Kevin Maki, Fond du Lac Tribal and Community College (MN)Mark Lindquist, MN Department of Natural Resources (MN)Kari Howe, Office of Business Development, State of Minnesota (MN)Heather Rand, MN Dept of Employment and Economic Development (MN)Tony Mancuso, St. Louis County (MN)Fred Iutzi, Illinois Institute for Rural Affairs, Western Illinois Univ (IL)Gary Radloff, Wisconsin Bioenergy Initiative, University of Wisconsin (WI)

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1.

State and national energy policy must include thermal energy to be comprehensive.

2.

Biomass is versatile but not limitless.3.

Midwest bioenergy facilities must be appropriately scaled to be sustainable.

4.

Provide economic development opportunities through distributed energy generation.

State and national energy policy must include thermal energy to be comprehensive.

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1.

State and federal renewable energy policies should set goals for thermal energy production

2.

Develop statewide wood change-out programs 3.

Remove barriers to biomass in the Low Income Heating Assistance Program (LIHEAP)

4.

Set standards for biomass thermal in green building standards

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Biomass is versatile but not limitless. Must use biomass strategically; enable high-efficiency applications that reduce fossil fuel use, maintain air quality and are economically competitive.

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1.

Develop statewide databases of energy use by fuel type and location.

2.

Provide greater access to investment capital for conversions

3.

Partner with state agencies and University extension to develop I&E programs that help businesses and households assess economic opportunities for biomass fuel

4.

Promote combination of renewable fuels to maximize efficiency (ie

solar thermal and

biomass heating)

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Midwest bioenergy facilities must be appropriately scaled to be sustainable. Biomass thermal systems produce fewer emissions than electricity or fuel. To maximize sustainability, we recommend a mix of agricultural and woody feedstocks.

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1.

Develop state & regional assessments of forest and agricultural feedstocks

2.

Develop state sustainable harvesting guidelines for woody and agricultural energy

3.

Conduct technical assistance and market development toward community-scale users also.

4.

Create a check-off program to support biomass thermal market promotion and research

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Provide economic development opportunities through distributed energy generation. CHP facilities are advantageous, producing heat and power from a single fuel.

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1.

Urge USDOE and USEPA to expand R&D of CHP technologies and train state staff

2.

Develop statewide case studies of successful heating and CHP projects

3.

Conduct or update CHP site potential studies for Midwest states

4.

Promote partnerships for utilities to co-locate thermal and CHP production with manufacturing

5.

Reform state policies to remove barriers to distributed generation

State No of CHP Install

ations

CHP Generation Capacity, % of Total

CHP Generation Capacity

Potential Community-Scale (<1 MW)

Illinois 139 3.2% 1367Michigan 89 10.2% 3101Wisconsin 80 8.7% 1527Minnesota 49 5.3% 754 842 MWOhio 49 2.2% 752

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Cite: USDOE Midwest Clean Energy Application Center;Kattner

FVP District Energy

“The Midwest appears to be leading the way in promoting the deployment of CHP.”

Pam Porter, Midwest DirectorBiomass Energy Resource Center

608-241-8640paporter@sbcglobal.net

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Round Table

VI. Round Table - Mast

Gregg Mast will now lead a round-table discussion, addressing markets, financing opportunities and technological advancement in the Midwest.

Questions for panelists can be written in the side bar and will be addressed in the following Q & A session.

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Q & A

VII. Discussion - Mast

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 after the conclusion of the webcast.

Regional Development: The Midwest

Interviews with key industry leaders (10+, also on iTunes Podcasts)

Factsheets (biomass background, job data, technology, etc.)

Presentation (comprehensive program information)

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Other Resources

VIII. Other Resources - Seymour

All Resources are available here: biomassthermal.org/resources

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Upcoming Events

Northeast Biomass Heating Expo –March 21 - 23, 2012 in Saratoga Springs, New York

Come see what Biomass Heat can do for your customers, your clients, and your community!

Call for Abstracts Deadline: December 1, 2011!

More information is available at: www.nebiomassheat.com

VI. Upcoming Events - Seymour

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Upcoming Events

Heating the Midwest with Renewable Biomass Conference and Expo –April 25-27, 2012 in Eau Claire, WI

Join us for this inaugural event!

More information is available at: www.heatingthemidwest.org

VI. Upcoming Events - Seymour

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Upcoming Webinars

Next Webinars:

•

The Future of Biomass Thermal Energy –

Advanced Technologies

•

Early December, 2011

•

Featuring Tom Miles from TR Miles Consulting•

Other Speakers TBA

Attendees of today’s webinar will receive timely notification of these webinars.

VI. Upcoming Events - Seymour

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More Information

This Webinar will be available by Wednesday, Nov. 23.

Sign up to receive BTEC news at on our website.

Join BTEC for:

--

Frequent and timely regulatory, policy and market intelligence updates

--

Business Development opportunities and networking with other biomass leaders

--

Visibility as a supporter of the market’s growth

--

Discounts to nearly all major biomass industry events in the U.S.

For more info or to join, go to: www.biomassthermal.org/membership

VI. 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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