Sonoma County Biomass Utilization Opportunities

Transcription

1 Santa Rosa, July Sonoma County Biomass Utilization Opportunities Gareth J Mayhead University of California Berkeley In partnership with: USDA Forest Service Region 5

2 Purpose: Interested in alternatives for woody biomass utilization based on challenges and opportunities that will work today

3 Outline California trends and context Local context Utilization basics Technology/product options Resources available Questions and discussion

4 Context - National Increased Federal interest in wood to energy and bioenergy based on: Desire for energy independence A belief that conversion technologies for liquid fuel production are market ready? A belief that prices for feedstock are high enough to move material from the forest? USDA 3 Under Secretary s MOU Oct 2010 All lands, forest restoration, value, jobs, climate

5 More community and institutional groups Collaborative forest management Reducing fire risk Local economic development Biomass utilization

6 Biomass Power Plants Most facilities of any state (~28 operational) ~620 MW capacity 4-50 MW 20 MW average 28% CHP (cogen)

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8 Power plants may or may not be suffering It depends Cogen or stand alone Location Feedstock cost Feedstock availability PPA terms and price = Structural issues

9 Negatives 27 primary wood processing mills closed from Jan June 2009 Reduced availability of residuals (price increases) Structural issues for biomass power Electricity is a relatively low value market Positives Lumber market picking up (slowly) mills reopening Export market for logs and lumber New investments on the ground (post and pole, shavings) Power plants New build Transactions Restarts Coal conversions Gasification projects

10 Sonoma County Biomass Utilization Infrastructure Key: Electricity Gasification Pellets

11 Assumptions Hardwoods and softwoods More private forest land? Timberland and non-industrial Air quality maybe an issue Limited existing markets for woody biomass Woody biomass sources: Agricultural (wineries) Timber harvest residue Fuels reduction/forest health projects Sudden oak death clean-up (transportation issues) Landfill diversion Green waste

12 Overview: Value chain considerations Resource : quality, price, availability Transport: mode, distance, terrain Process Product (technology) Transport Market

13 Woody biomass in California

14 Key criteria: Raw material form is important Every process has a raw material specification

15 Value helps to move residuals from the forest Slash $ Pulp log $$ Slash $ Saw log $$$$ Slash $ Pulp log $$

16 Leverage existing industry Existing infrastructure is an important opportunity: Contractors Primary processing (sawmills etc) Powerplants What do they pay? Feedstock specification? Opportunity to adapt to changing feedstock? Infrastructure is difficult to bring back when it is gone it is gone

17 Scale Scale of markets vs biomass availability Bulk (100,000+ ton/yr) A monster to feed? Long term (~10+ years) supply commitments required Small-medium markets (<60,000 ton/yr) Less risk Less controversial Socially acceptable

18 Technology Wood technology can do almost anything There are many existing proven technologies Even more emerging technologies Carry out due diligence Silver bullets do not exist

19 Processing small logs More logs to process for same output Higher transportation costs More handling in mill Less valuable products Defects have a greater impact (knots, juvenile wood etc) Efficiency is very important Speed and volume Eg: 6 vs 10 diameter

20 Lumber from small logs may be low quality

21 Breaking wood down into particles minimizes the impact of defects (knots, juvenile wood, insect galleries etc.)

22 Creating uniformity Plywood Densified Paper Engineered lumber OSB Fiber-Plastic Composites MDF/Particleboard

23 Value helps to move residuals Slash $ What product or process could add value? Pulp log $$ Slash $ Saw log $$$$ Slash $ Pulp log $$ Oak logs $

24 Technology black boxes My Process (patent pending) Be wary and ask questions Gold Liquids (oil) Char Syngas H2 Pellets etc.

25 Craft (low tech) and niche products

26 Use products on site/internally Sell direct Feel good factor

27 Adding value

28 Adding value

29 Problems Labor intensive Small scale Costs of moving logs/lumber Storage Timescales for drying Commitment Economics does it pay?

30 Positives Low investment Raw material supply is easier Creates jobs/value Satisfaction Educates the public

31 Firewood a valuable product

32 Post and Pole Low tech Low investment Good market in California eg grape sticks Need to treat

33 Woodchip and bark Hog fuel Landscaping products (bark, mulches, compost etc)

34 Animal bedding Animal bedding (shavings ~$1m) Chunk chip (cattle corrals ~$60k)

35 Bio-filtration Ground wood as an air filter

36 Energy Heat Pellets Electricity

37 Heat - scale 10,000 ft 2-1 million+ ft million BTU/hr-10 million+ BTU/hr Heat only Campfire Powerplant

38 Heating systems Can be cheaper than alternatives it is easy to calculate simple payback 75%+ efficient Local market Opportunities for public buildings (10,000 sq ft to 1m+ sq ft) Air quality permitting can be an issue Long payback period may be a problem (5-15+ yrs) $ per MMBtu $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 Heating Fuel Cost Comparison (Av National Prices) Wood Chips Wood Pellets Natural Gas Fuel Type Electricity Propane Heating Oil Source: US DOE Energy Information Administration, Sept 08

39 Air Quality Considerations Air Emissions CO CO 2 fossil Biomass Fueled Boiler lb/million Btu CO 2 non fossil NO x SO x VOC Methane Particulates Open Field Burning Natural Gas Boiler

40 Heating - cordwood

41 Heating - pellet

42 Heating chip based

43 Heat Resources Wood Heat Solutions:

44 Densified Wood Products Firelogs Fuel Pellets

45 Example: 40,000 ton/yr pellet facility 100 BDT/day $5.5-$7m build cost 24/7 operation 3-5 acre site jobs Densified Wood Products Fact sheet coming soon!

46 Utility Scale Biomass power 20 MW plant provides electricity to 15-20,000 homes New plant construction cost = $50-60m+ Processes 160,000 tons/yr (1BDT/MW/hour burn rate) Biomass transported up to 50 miles Delivered biomass valued at $15 60/BDT Average production cost ~ $0.07- $0.10/kWh Installed cost $1700-$3500 per kw 20-30% efficient (60% + CHP)

47 An alternative: gasification Biomass used to produce fuel gas (typically downdraft gasifier) Fuel gas (producer or synthesis gas) burnt in engine or microturbine to generate heat and electricity Smaller scale Could apply where electricity prices are high or there are frequent power outages BIOMASS AIR AIR GAS ASH

48 Gasification Projects

49 Gasification An emerging technology Costs $5,000-10,000/kWh installed (may make sense for off-grid areas) Operations and maintenance (who will do this?) Reliability Fuel specification (can be very specific) Is the technology proven?

50 Electricity components for success 1. Fuel supply Fuels reduction Timber residuals Urban sources 2. Off-take market Regulated utility Unregulated utility Other 3. Finance

51 Selected funding sources Earmarks ( regional priorities ) Forest Service Grant Community Wood Energy Program SBIR (R+D) USDA RBEG USDA RBOG USDA VAPG call for proposals now USDA loan guarantees (B&I, REAP etc) USFS/DOE FEMP

52 Information Resources 10 biomass to energy feasibility studies funded by USFS and CARC&DC: Hardwood utilization information: Value added matrix (online soon):

53 Summary Smaller scale technologies exist Each situation is unique The value chain needs to be complete (feedstockmarket) Find your niche Silver bullets do not exist Carry out due diligence on projects and technologies Low cost options: Low volume niche Firewood Chip - landscaping Post and pole Higher cost options: Shavings Heat Pellets Electricity

54 Thank you (510) Help with: Grants Technology Markets Networks Healthy skepticism