Biomass Sample Proposal Editing

8/13/2019 Biomass Sample Proposal Editing

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Biomass Power Plant Developmentin North America,Overview andLessons Learned

Renewable Energy

Adrian Wilson nternational Associates


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Pioneering E!!orts " Biomass#tili$ation !or the Prod%ction o!

Energy Prod%cts


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What is Biomass&

* Biomass any solid,

nonhazardous, cellulosicmaterial derived from:forest-related resources,solid wood wastes,agricultural wastes, andplants grown exclusivelyas a fuel.*

*basedonthedefinitionof

biomassinthe2!"nergy#ct


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Woody Biomass#tili$ation# variety of value-added end uses have evolved overtime $ome are commercially proven and some arestill in the %& ' & (hases

* )umber products, composite panels, pulp* $oil amendments* )andscapelandfill cover

* +io-based products plastics, solvents, etc.* +iofuels ethanol, renewable diesel* +iomass power


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BiomassPower 'echnology

wo main components:

*#nenergyconversionsystemthat convertsbiomasstousefulsteam,heat,orcombustiblegases

*# prime mover that uses the steam, heat, or combustiblegas to produce power


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(omb%stion 'echnology


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)asi!ication "'he *%t%re&"lectricity/eat

+iofuels

(otential


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Advantages o! Biomass When

(ompared to Wind and +olar Energy

* (rovides base-load renewable energy 201

on a cost effective basis.

* /as numerous societal benefits: $upports hazardous fuels reduction and healthy forests

et improvement in air 3uality

(rovides employment 0.4 5obs67

%educes waste material destined for landfills


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Economic Bene!its o! Biomass

#tili$ation

* %ural economic development and stability.- he 8$ spends 9! billion each year in oil importation. +iomass could replacehalf of the said energy source and direct a minimum 92! billion to local economy

and not to foreign oil marets

* ;ncrease of


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Environmental Bene!its

* (reservation of agricultural land.

* $ustainable agricultural techni3ues.- he crops can restore and ensure soil stability and health along with minimizingchemical residues and habitat destruction.

* %eduction of >reenhouse gas.- ?apturing methane from producers such as cows or rice fields and applying it forfuel will significantly reduce methane which is 2 times more potent than ?@2.

*;ncreased carbon se3uestering from the crops grown for

biomass.*#n estimated A! million tons of waste that goes to landfills

could be used for energy production.

*o net increase in atmospheric carbon dioxide.


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mproving Air %ality


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New n!l%encing *actors E!!ecting

Biomass Plants -old and new.

* >rowing waste disposal issuesopportunities

* %enewable energy government mandatesincentives* ew Binancial and @wner >roups looing for renewable energy

business deals

* Bossil fuel pricing abrupt current and future price increases

* #cceleration in the development of new biomass to energyconversion technologies

* >reenhouse gas reduction opportunities

*based on data DSIRE:www.dsir eusa.org January 2008
http://www.dsireusa.org/http://www.dsireusa.org/http://www.dsireusa.org/http://www.dsireusa.org/


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g J y

ncentives / Renewable Port!olio

+tandards

0WA1 234 by 5656

7N1 534 by 5653-8cel1 964 by 5656.

&: =C by 2=!

D: %" meets loadgrowth by 2=2

7E1 964 by 5666264 by 562: / new RE

E N;1 59


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#long ?omes (8%(#

* (ublic 8tilities %egulatory (olicy #ct of =41F:

%e3uires that investor owned utilities mustpurchase privately produced power at GavoidedcostH rates.

?reated the maret context that stimulated thedevelopment of the independent power industry in

the 8$.


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@ther ;ncentives

* %enewable energy incentives of =41Is and=4FIs caused renewed interest anddevelopment:

;nvestment tax credits

"nergy tax credits

ax incentives


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(rivate $ector %esponse* 7ithin =! years approximately =, 67 of biomass

power was developed and brought into service in

?alifornia alone. "nough renewable energy for about1!, homes.

* ;n =442 +iomass generated 9=.Fbillion in personal andcorporate income and employed JJ, worers.

* ?onsumed biomass fuel at the rate of around

=!,, >year:* Borest products manufacturing residuals

* Borest sourced biomass

*#gricultural waste

* 8rban wood


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(8%(# ?ontracts $tandard @ffer 0

and the +oom Kears

* A year contracts. * Kear == A, rates are

* Birst = years at fixed

rates 9.1 -.=A7h.

* Kear =- = rates basedon energy forecastswith prices escalating

well into future.

based on wholesale

energy rates mostfloated based onnatural gas rates.

* (ower producers need

to meet certain firmdelivery standards to beconsidered a 3ualifyingfacility LB.


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#fter the +ust

* 8tilities provide cash * (lants that transitionedincentives to buy bac into year == sought out

$@ 0 contracts. cheaper fuel sources.* $ome plants went

down, some curtailed

operations

* #ttempt at electrical utilityderegulation implemented

* (lants that weresmaller, less efficient orhad poor access to fuelwere closed.


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orth #merica"xperience?urrent$ituation

* here are approximately F operational biomass plantsin the 8nited $tates.

* (roduce almost =,J1J 67 of generating capacity."nough to power around =.A million homes

* ?onsume around =,, >year:* forest biomass

* agricultural biomass

* urban biomass

* >enerate revenue based upon a variety of powerpurchase agreements non-(8%(# rates most on afixed rate of around 9.J0!7h. ?urrent pricingschedule terms out in


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* #bout A!C of the sales generation biomassplants are located in ?alifornia. hree states,

?alifornia, 6aine, and 6ichigan, provide !JC ofthe biomass sales generation capacity.

* #pproximately FFC of the biomasssales capacity is located in ten

states:* he average size of the sales-

generation biomass plants is2=67.


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?# imber /arvest 3666

@366

@666

9366

9666

5366

5666

2366

2666

366

6

77B*

2A=6 2A=9 2A=C 2A=A 2AA5 2AA3 2AA=

P%blic

Priva

te 'ota

l


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umber of sawmills in ?#

966

536

566

236

266

36

6

2C= 2:5 2:C 2=5 2=3 2== 25 2@ 5666


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Cone Fire


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Cone Fire

Unthinned Thinned


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Biomass Power in (ali!ornia(%rrent nd%strial 'echnology

* early =, 8.$.megawatts

* #lmost all systems arecombustion steam turbine

* 6ost are grate stoers.

* !-== 67 avg. 2 67.

* /eat rate ==,-2,+87h.

* ;nstalled cost 9=1-9A!per 7.


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Biomass*acility EJample* 2 67 plant produces enough power for about

2, homes

* ew plant construction cost M 90 to 0! million N* ?onsumes about =J, +&yr =+&67hour

burn rate

* +iomass transported up to ! miles maybe farther

* &elivered +iomass valued at 9=! - ! per +&* #verage electrical energy production cost

P 9.J - 9.47h


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+itingKn!rastr%ct%re/ Part * ?o-locate with existing commercial or

industrial pro5ect Borest products manufacturing facility that has on site demand

for heat and power

*#d5acent to power transmissiondistributionsystem

* ypical pro5ect re3uires at least F acre site


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+itingKn!rastr%ct%re /Part

* 7ater readily available = N gpm minimum

*

)ocation incentives "nterprise zones* ransportation system

/ighway

%ail

* #sh7aste water disposal

* (ublic concerns Bugitive emissions

oise

@dor


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Biomass Proect Development " *atal

*law ss%es to (onsider

* Buel $upply

* ?ommunity $upport

* (ro5ect "conomics

* #ppropriate echnology

*

$iting;nfrastructure


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Woody Biomass+%pply +o%rces

* imber harvest residuals

* Borest fuels treatment residuals

* 8rban wood waste

* Borest products manufacturing residuals

*#gricultural byproducts


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*%el +%pply

* $ustainable long term supply located within closeproximity 2! to ! mile radius

* "conomically available* "nvironmentally available

* 6eets 3uality specifications

* #vailable in 3uantities and from diverse sources that

support pro5ect financing: 6inimum = year supply, 1C under contract

#t least 2.! A times facility usage fuel supply coverage ratio


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(omm%nity +%pport

* +est to have grass roots support

* (oll ey staeholders: ?ounty ?ommissioners

ribal ?ouncils

?hamber of ?ommerce

?onservation ?ommunity

)ocal, $tate and Bederal agency representatives (rivate sector resource managers, landowners


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Potential PowerK;eat P%rchasers

* %egulated utility companies*

6unicipal 8tility &istricts* Borest products manufacturing facility* #gricultural processing facility* ?ommunity buildings* @thers


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(entsKMWh

Electricity PricesPaci!ic )as F Electric +hort R%n Avoided (ost

Gan%ary 2: / November 566:

4.

F.

1.

J.

!.

0.

A.

2.

=.

.

=441 =44F =444 2 2= 22 2A 20 2! 2J 21Date


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Appropriate 'echnology

* $earch for most appropriate technology consideringpro5ect location and fuel supply

#bility to convert local fuel supply into heatpower 6ust meet local permitting specifications

* echnology must be proven: ?ommercially available

@perates efficiently on available fuel supply

@perates cleanly on available fuel supply #ppropriate for site and local resources


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Proect Development +teps

Part

z = - ?onduct preliminaryfeasibility study Batal Blaw

#nalysis

z 2 - ?onfirm community supportz A - #ssess fuel resource

availability

z 0 - ?onsider siting andinfrastructure issues, includingenvironmental permit review

z ! - ?omplete due diligenceBeasibility $tudy

z J - $ecure developer andorinvestment baner


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Proect Development +tepsPart

z 1 - ?omplete powerpurchasethermal delivery

agreementz F - "nlist e3uity partners

z 4 - $ecure financing

z = - $elect "(? firm

z == - "ngineerconstruct

pro5ectz =2 - >enerate renewable

energy


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%estions& (omments&

#wiai

"aston /ouse

"leuthera, +ahamas

[email protected]

www.Awiai.com
mailto:[email protected]://www.awiai.com/mailto:[email protected]://www.awiai.com/

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Biomass Sample Proposal Editing