Toso Bozic Bioenergy specialist Alberta Agriculture and Forestry

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1 Toso Bozic Bioenergy specialist Alberta Agriculture and Forestry

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3 Alberta Climate Leadership Plan All emissions from facilities with emissions over 100,000 tonne/year will effectively be priced Carbon tax Gasoline Natural Gas Electricity

4 Alberta Climate Leadership Plan by 2018 would lead to net revenues reaching approximately $3 billion once the end-use emissions pricing has been fully phased-in, by 2030 potentially rise to over $5 billion

5 Alberta Electricity Portfolio

6 Historical Price of Electricity

7 Renewable alternatives to replace AB coal

8 Forest Biomass Power Plant

9 Wood/Biomass Waste is NOT waste. It is a Commodity.

10 Bioenergy facilities

11 Key components of Bioenergy project

12 Appropriate Technology Appropriate technology Ability to convert local fuel supply into heat/power Must meet local permitting specifications Technology must be proven: Commercially available Operates efficiently on available fuel supply Operates cleanly on available fuel supply Appropriate for site and local resources

13 RISKS -Technology Mostly European technology some of it unfamiliar here; more expensive but more reliable and proven to work Ability to handle contamination, various wood chips sizes

14 RISKS -Technology Services o Provider must provide training o Very few dealers in Alberta for wood biomass technology o Can they train or subcontract local trade people? o Can they be on-line 24 hours to control from their side? o How long it will take to fix it in worse case scenario? o What guarantees can they provide if their system is not functioning? o What is their history of company services? Always ask for references o How complex or idiot proof is the technology? o Safety issues

15 Feedstock supply WHO CONTROLS FEEDSTOCK SUPPLY Myth free feedstock such a thing does not exist Feedstock supply is KEY in bioenergy project: Feedstock supply chain collecting, chipping, transport, storage Quality is an issue : size of particles, moisture, not uniform supply Storage and handling plenty of issues Transportation can make or break project Price variable, unpredictable and all over the place Estimation of feedstock Competition with natural gas

16 Fuel handling

17 Legal work DO NOT UNDER ESTIMATE THIS WORK -- Can be very vague and cumbersome to obtain all necessary permits Insurance is still hard to obtain Understand all contracts Understand funding requirements Understand AB power regulations- Get to the grid getting easier but still lots of work Deal with current energy provider Contracts for sale of heat to local business Long term contract with farmers for wood supply

18 Financing At beginning very skeptical and not interested Long-term payback Most of local financial institutions know very little about financing bioenergy projects Many projects are driven by emotions, not really by real business scenario There is NO competition within the world market price Locally controlled supply, and end user Heat is less hassle with Regulations eg. electricity

19 Financing Corporate Sustainability is standard for many large companies, including banks so green energy becomes part of their portfolio Project range from $ 250,000 up to $ 5 million dollars easier to get money for multi-million dollar projects Many government grants are still available Foreign investors are very keen in investing in bioenergy projects in Alberta Local banks and agricultural financial institutions (AFSC, FCC, etc) are willing to invest and provide loan to project

20 Biggest Challenge of All Human Resources Lots of people are interested in renewable energy projects it is kind of sexy Lot of instant expertise in the subject matter Lack of education and pilot projects was impeding progress Project manager with skill and knowledge in the bioenergy project is almost impossible to find Some pilot projects struggle immensely but don t say so publicly

21 Human Resources continued Unfortunately many bioenergy projects are given to people that have very little or no knowledge about all aspect of project TIME seems to me everybody doesn t have time outside of their regular work Training is still inadequate for operators, suppliers, builders, codes, permits, etc.

22 Human Resources continued Political or company leaders get very excited while administration doesn't care or in some cases will do everything to stop the project more work No understanding of legal, financial or technical requirements for project Somebody has to fill out grant application No communication between various company departments

23 Key Considerations Possible bioenergy project for landfill Cost of woodchips - $ 50 per tonne 1 tonne at 50 % moisture = 2.23 MW/h or 8.2 GJ/tonne 1 tonne at 20 % moisture = 4.1 MW/h or 14.7 GJ/tonne Cost of electricity to grid - $ 90 MW per hour Cost of GJ of heat - $ 5.25 GJ Working operating hours 8000 per year

24 Key Considerations Possible bioenergy project for landfill Moisture of woodchips % Return on investment at 8 % rate Overhead at 25 % of total cost for building Maintenance 10 % Life of project 25 years Carbon credits are a BONUS

25 Some tips for landfill bioenergy project Secure Wood waste/biomass supply be sure that you know how much you have Put appropriate person in charge of project full time person is best Visit already facility that are operating ask, ask and ask about project Involved local bank or investor if you can

26 Some tips for landfill bioenergy project Be careful of sales people Develop proper bioenergy project template with specific timelines, and deliveries Project must stand alone without any subsidies Obtain support from people who have knowledge and experience Landfills are in best position to succeed in bioenergy project

27 Contact and more information Web site: dex.html Toso Bozic Phone : (780) toso.bozic@gov.ab.ca

28 Thank you!!