Biomass Energy in North America Opportuni6es and Challenges. IEA Bioenergy ExCo72 Jeju Korea

Transcription

1 Biomass Energy in North America Opportuni6es and Challenges IEA Bioenergy ExCo72 Jeju Korea

2 BPA at a Glance Founded in members in 22 states 51 power plants 1500 MW Most grid connected Organic fuels woody biomass, ag residuals, urban wood Most are IPP s vs. unlines/paper mills 2

3 History of the Industry Enactment of Public UNlity Regulatory Policy Act of mandated to buy from IPPs at avoided rate Long term contracts allowed financing Cheap fuel, above market contracts DeregulaNon, emergence of state RPS ProducNon Tax Credit/2009 snmulus RegulaNon of carbon, controversy over biomass, AdministraNon efforts to phase out coal, shale gas 3

4 The Industry Today 4

5 Biomass and US Energy Policy petroleum natural gas coal nuclear renewables US Primary Energy Use By Source, EIA % 8% 37% 21% 25% 5

6 Biomass as a Percentage of Total Renewables 6

7 The Biomass Sector Predominant biomass fuel is paper mill residue i.e. black liquor. Remaining 25% is wood residuals, forestry by- products, agricultural residues, forest thinnings, urban wood. 7

8 Industry Snapshot No. Facili6es MW OperaNng 121 3,031 Planned 54 2,247 Under ConstrucNon Closed/Idle Total 213 6,203 3,500 3,000 MW installed capacity 2,500 2,000 1,500 1, plants 54 plants 18 plants 20 plants - OperaNng Planned Under Constr. Closed/idle Status as of November

9 Biomass Tax Policy 9

10 Produc6on Tax Credits Lack Parity 10

11 Renewables Under AVack and State Based Policy Not Uniform ProducNon Tax Credit expires 12/31/13 Investment Tax Credit expires 12/31/13 Master Limited Partnerships 2014? State RPS programs in half states Some support biomass, others do not Massachuseds and ConnecNcut as example. No federal feed- in tariff or nanonal energy policy. 11

12 12

13 Shale Gas Revolu6on 13

14 1. Technology Breakthrough Fully Commercialized in Economic Collapse 3. Decreasing Marginal Costs 14

15 1. Market Recogni6on that Horizontal Drilling and Fracturing is here to stay 2. Pricing by 2014 exceeds Full Produc6on Cost 3. Supply Risk Factors included a[er

16 Berlin New Hampshire 75MW Biomass Facility Prior to Construction After Construction Complete 16

17 Berlin Mill Long History

18 Conversion of Recovery Boiler- Repurposing and Exis6ng Asset Process Recovery boiler from paper mill (1993) Modifica6ons to exis6ng boiler (2012) Biomass- fired BFB boiler (2013) 18

19 Low Cost Conversion B&W s design maximizes boiler capacity and plant efficiency; while minimizing modificanons. Bubbling Fluidized Bed (BFB) technology will be integrated into exisnng boiler. Looking upward into exisnng boiler aker removal of bodom secnon Upgrading Exis6ng Boiler Steam Flow 575,000 lb/hr 40% increase Steam Pressure 900 PSIG 6% increase New Superheater 925F 12% increase 19

20 State- of- the- Art Design SCR Condensers PJFF Baghouse B&W Core Scope: EPC Services BFB Boiler Conversion SCR PJFF Baghouse BFB Boiler Turbine / Generator Wood Yard Dry Sorbent InjecNon System Ash Handling System ConNnuous Emissions Monitoring Long- Term OperaNon & Maintenance B&W Non- Core Scope: Turbine / Generator Cooling Tower Condensers Feedwater Heaters Main Transformer DCS Boiler Feed Pumps Condensate Pumps CirculaNng Water Pumps Demineralizer / Water Treatment System Auxiliary Cooling Water System Turbine Building Crane Truck Scales Switch Gear Motor Control Centers Dead End Structure Truck Dumpers Wood Hogs Fire ProtecNon System Fuel Stack Out and Reclaim System 20

21 Key Elements to Success 20 year PPA $83 MWh subject to fuel adjustment clause 1.8 GT per MWh Class I RECs at sliding scale of ACP Capacity payment of $4.25 per kw month Valued at $1.43 billion over 20 years All in price of $143 MWh Federal Investment Tax Credit (30%, 1603 grant) New Market tax credits SupporNng polincal environment 21

22 Black River Fort Drum, New York 22

23 Summary of Project Inside the fence at U.S. Army installanon Fort Drum, near Watertown, NY 60 MW generanng capacity Idled coal- burning facility Purchased by ReEnergy December 2011 Selected to sell RECs through 10- year contract with NYSERDA $34 million retrofit $11 million annual fuel purchase 23

24 Gainesville, Florida 24

25 Overview 100 MW Locally sourced, sustainability requirements 1 million green tons annually 30 year PPA $500 million; 1,100 construcnon jobs, and 700 permanent 25

26 GREC TECHNOLOGY Bubbling fluidized bed boiler with advanced emissions controls (SCR, baghouse) ConNnuous emission monitoring Efficient combusnon No burning wood smell Clean ash which can be beneficially reused Negligible sulfur emissions ConvenNonal steam turbine generator 26

27 GREC BIOMASS FUEL SOURCES GREC will need approximately 1 million green tons of biomass fuel per year Forestry Wood (425k to 625k green tons/yr) Low- value trees, tree tops, and branches remaining aker commercial tree harvest and land clearing Urban Wood (375k to 425k green tons/yr) Clean wood waste consisnng of urban tree, limbs, brush, pallets, and structural lumber Mill Residues (30k to 50k green tons/yr) Residues from primary and secondary wood processing (bark, saw dust, shavings, scraps, and wood chips) 27

28 Elements to Success Improves reliability of poruolio average age of fleet is 28 years. Diversity of fuel 60% from coal Need for long- term stability Reduces GHG emissions 28

29 BETTER TO BE LUCKY THAN GOOD 9/23/02 City Commission Authorized GRU to explore a new coal facility ($3.87) 5/12/08 GREC selected from formal RFP process to negonate with GRU ($11.38) 10/8/07 GRU ininated two step formal RFP process ($6.69) 4/29/09 and 5/7/09 GRU/GREC PPA was executed and unanimously approved by City Commission ($4.16) 29

30 Significant US Poten6al 680 million tons annually. 54 billion gallons of ethanol, or 732 billion kwh of electricity 19% of total power consumpnon 400 million in energy crops 155 million tons ag residue 35 million tons waste biomass 20 million tons forest waste biomass 30

31 Will Biomass be Considered Carbon Friendly? Manomet Study States taking another look EPA Science Advisory Board AdministraNon policies What is the end game? 31

32 Key Elements for Growth Policy Support (biomass not dirner than coal ) NaNonal energy policy Carbon price/regulanon in some form Favorable Tax treatment SupporNve NGO s (no more are forests aren t fuel campaigns ) CompeNNve with natural gas 32

33 For More Informa6on Contact Robert E. Cleaves, IV President Biomass Power AssociaNon P.O. Box 9729 Portland, ME (207)