Modern Wood Heating Market Development in Vermont

Transcription

1 Modern Wood Heating Market Development in Vermont International Bioenergy Conference 2016 Prince George, British Columbia June 17th, 2016 Adam Sherman Biomass Energy Resource Center

2 Biomass Energy Resource Center (BERC) Advancing the use of Modern Wood Heat and CHP in North America Technical Consulting Project feasibility studies Fuel supply assessments and procurement Third-party expert review Develop and review of standards Market Assessments Program Design & Implementation Wood heat market expansion potential assessments Program design and implementation support Training, and advisory support services Advocacy Showcasing best practices and case studies of successful projects Tracking market growth and impacts BERC is a program of the Vermont Energy Investment Corporation A mission-driven non-for-profit whose mission is to reduce the economic and environmental impacts of energy production and consumption

3 US Forest Resources

4 Natural Gas Pipelines Service

5 Heating Fuel Mix by Region

6 Complied by: Alliance for Green Heat

7 Vermont is Known for Small Communities in Rural Areas Working Landscape and Local Food Systems Beautiful Mountains, Great Skiing & Hiking Specialty foods like craft beer and maple syrup

8 Vermont is also Known for Local Heating Solutions National Leaders in Energy Efficiency and Local Heating Solutions for: Institutional buildings Commercial buildings Homes Downtown communities

9 Percent of Residences Households with Primary Wood Heat by State 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Source: 2010 US Census Data

10 Technology Cordwood Boilers Pellet Boilers Single Facility Woodchip Heating District Heating w/woodchip Boilers Industrial CHP Typical heat output capacity 20kW 100kW 20kW - 1MW 500kW 9MW 1.5MW 15MW 8MW - 150MW Applications Home heating and farm buildings Home heating & small commercial buildings Schools, hospitals, office buildings, etc. College campuses and downtown communities Merchant Power Plants Fuel Type Annual Fuel Use 2-15 cords 2-20 tons ,000 tons ,000 tons 1, ,000 tons Installed Systems in VT Average Efficiency >500 > 400 > % 80% 75% 75% 28% - 40%

11 Bulk Pellet Fueled Central Heating

12 New Wood Fuel Option Dry woodchips

13 Vermont Public School Sector

14 Vermont College/University Sector Castleton State Lyndon State 9% 6% Johnson State 6% Saint Michael's 9% Middlebury 28% of Undergraduates 10% Bennington attend a wood-heated 3% University GMC 3% Goddard 3% Norwich 8% University of Vermont 43%

15 Vermont Multi-family Affordable Housing

16 An Integrated Approach for Developing Wood Heat Market in Vermont Boiler codes Air quality rules Forest management Legislative Action 90% Renewables for Total Energy by 2050 New Energy Law that includes system for Fossil Fuel Displacement BERC State Agencies Efficiency Vermont Program Support Regulatory Framework Financial Support Pellet boiler rebates New financing programs Wood stove change outs & Inspiration (MOU with Upper Austria Trade/policy Delegations)

17 Regional Dependence on Oil for Heating Annual Gallons of Heating Oil Population Gallons Oil/ Capita Connecticut 473,000,000 3,500, Maine 263,000,000 1,300, Massachusetts 596,000,000 6,646, New Hampshire 137,000,000 1,320, New York 1,308,000,000 19,570, Pennsylvania 757,000,000 12,763, Rhode Island 131,000,000 1,050, Vermont 89,000, , Total/Average 3,753,000,000 46,775, Source: Energy Information Administration (EIA) and 2010 US Census Data

18 Our Goal: Dramatically Reduce Heating Oil use by Expanding Modern Wood Heat in Vermont 2014 Expanded Use of Wood Fuel in 2030 Electricity and Other, 3% LPG, 15% Natural Gas, 18% Wood, 15% Heating Oil, 49% Electricity and Other 3% LPG 15% Natural Gas 18% Heating Oil 29% Wood 35% Source: EIA consumption data and BERC analysis

19 Economic Impacts of Expanded Use of Modern Wood Heating in Vermont Heating Oil Expenditures $310 Million Wood Fuel Expenditures $145 Million $183 Million $80 Million 75 Million Retained in VT Economy $146 Million Retained in VT Economy = $131 Million Less Economic Drain = $70 Million More Invested Source: BERC analysis using EIA and regional fuel price data

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21 Adam Sherman, Manager Biomass Energy Resource Center at VEIC Check out new video on Modern Wood Heating -

22 Extra Slides For Q&A

23 Spectrum of Policies and Incentives Offered in NE NY VT NH ME MA Flexible Boiler Regulations Sales Tax Exemption on Wood Heating Appliances Partial Partial Sales Tax Exemption on Wood Fuel Residential only Residential only State Income Tax Credit on Installed N/A systems Pellet Boiler Incentives Property Assessment Financing Thermal Renewable Portfolio Standards State Grants for Wood Heat Projects Government Lead by Example for Biomass Thermal System Benefits Charge Mandatory Renewable Energy Targets Applied to Building Codes Weatherization only Source:

24 Carbon Benefits of the 35% by 2030 Goal 1,200,000 1,000, , ,126 Annual Tons of CO 2 Emitted 351,376 Ton Annual Reduction! 600, , ,750 Oil Heating Wood Heating 200, , ,000 Based on pounds per MMBtu for heating oil and pounds per MMBtu for wood

25 Advancements in Modern Combustion Peak Efficiency (%) Source: Dr. Christian Rakos, ProPellet, Austria

26 POUNDS OF PM PER YEAR Annual PM Emissions for a Typical Residential Heating System propane boilers new oil boilers modern pellet boilers modern pellet stove modern certified wood stove old non-certified wood stove or OWB Source: EPA Burnwise program

27 PM Emission Change (lbs/ year) 150 Air Quality Impacts of Boiler Fuel Switching & Stove Change-outs (50) 1 Woodstove changeout to modern certified wood stove 68 modern pellet boilers replacing propane boilers Net air quality change (100) (150) (200) (250)

28 Policy Options for Overcoming Market Barriers Barrier Potential Policy Solution High capital costs Federal 30% tax credit State income tax credits State funded rebate programs Thermal inclusion in RPS in a way that creates credit worthy thermal RECs used toward capital costs Public awareness Adopt policies such as lead by example programs by state and local government Provide program support services to show case best in class projects using modern, efficient biomass thermal technologies Support education, outreach, and training for architectural, building construction, insurance, real estate, and engineering professions Lack of regulatory framework for thermal sector Develop comprehensive total energy approach including electrical, thermal, and transportation energy Expand RPS to include thermal energy Apply SBC to heating fuels Expanded natural gas service into new jurisdictions Apply a SBC to natural gas to further fund thermal efficiency and renewables such as biomass Expanded use of electric powered air source heat pumps Create policies to encourage the combined use of biomass boilers and heat pumps as back-up systems

29 Northeastern US Pellet Production Lauzon Ashland Lauzon Energex Corinth Curran Strong Athens Dry Creek Creek Addison NEWP NEWP VWP Queston NEWP Over 1.4 Million Tons of Annual Production Capacity