Large-Scale Biomass Thermal: District Energy and CHP

Transcription

1 Large-Scale Biomass Thermal Large-Scale Biomass Thermal: District Energy and CHP This Webinar is brought to you by: Biomass Thermal Energy Council (BTEC) With the generous support of the U.S. Forest Service Wood Education Resource Center 2 PM ET, May 25, 2011 The work upon which this publication is based was funded in whole or in part through a grant awarded by the Wood Education and Resource Center, Northeastern Area State and Private Forestry, U.S. Forest Service. This institution is an equal opportunity provider. 1

2 Large-Scale Biomass Thermal Quick Notes - Seymour Quick Notes Two Audio Options: Streaming Audio and Dial-In. 1. Streaming Audio/Computer Speakers (Default) 2. Dial-In: Use the Audio Panel (right side of screen) to see dial-in instructions. Call-in separately from your telephone. Ask questions using the Questions Panel on the right side of your screen. The recording of the webinar and the slides will be available after the event. Registrants will be notified by . 2

3 Large-Scale Biomass Thermal I. Event Introduction - Seymour Presentation Outline I. Introduction Joseph Seymour II. Technology Overview John Cuttica III. Lessons Learned Jonathan Wilkinson IV. District Energy Michael Burns V. Q & A, Next Events Joseph Seymour [Full presentation will be available online, 3

4 Large-Scale Biomass Thermal I. Event Introduction - Seymour Speakers John Cuttica, Director, Midwest Regional CHP Application Center, and Director, Energy Resource Center, University of Illinois at Chicago Jonathan Wilkinson, Senior Vice President, Business Development, Nexterra Systems Corp. Michael Burns, Senior Vice President of Operations and Engineering Group, Ever-Green Energy Moderator Joseph Seymour, Program Coordinator Policy and Government Affairs, Biomass Thermal Energy Council 4

5 Large-Scale Biomass Thermal I. Introducing BTEC Seymour Joseph Seymour - Moderator Program Coordinator Policy and Government Affairs Biomass Thermal Energy Council Project Coordinator, Technology Transition Corporation ( 5

6 Large-Scale Biomass Thermal I. Introducing BTEC - Seymour About BTEC Mission & Composition The Biomass Thermal Energy Council (BTEC) is a nonprofit association dedicated to advancing the use of biomass for heat and other thermal energy applications. BTEC engages in research, education, and public advocacy for the fast growing biomass thermal energy industry. Formed in January 2009 by eight companies, BTEC currently has 85+ members from 34 U.S. states, Canada, and Austria Includes landowners, handling equipment manufacturers, fuel refiners, appliance manufacturers, project developers, investment companies, nonprofits, universities, associations, and others 6

7 Large-Scale Biomass Thermal I. Introducing BTEC - Seymour BTEC Membership Abundant Power Froling Energy Public Policy Virginia ACT Bioenergy Fröling GmbH Rainforest Alliance Alliance for Green Heat Fuel Pellet Technologies Ray Albrecht/The Fulton Companies Alternative Energy Solutions International, Inc. FutureMetrics Renewable Energy Resources American Agriculture Movement Gavilon Group Resource Professionals Group American Wood Fibers Green Clean Heat Sandri Companies APEX Indeck Ladysmith Santa Energy Corporation Bear Mountain Forest Products Innovative Natural Resource Solutions Sewall Company Beaver Wood Energy International Renewable Energy Technology Institute Skanden Energy Biomass Combustion Systems International WoodFuels State of Montana Department of Natural Resources and Conservation Biomass Commodities Corporation Jesse E. Lyman Pellets State University of New York Biomass Energy Resource Center Krieg DeVault Tarm Biomass Biomass Energy Works Lignetics of Virginia Twin Ports Testing Bionera Resources Inc. Maine Energy Systems Vapor Locomotive Company Biowood Energy Maine Pellet Fuels Association Vecoplan Chip Energy Marth Vermont Wood Pellet Clean Power Development Missouri Corn Growers Association Viessmann Comact Equipment Montana Community Development Corporation West Oregon Wood Products Confluence Energy National Network of Forest Practitioners Western Ag Enterprises Continental Biomass Industries New England Wood Pellet Westervelt Renewable Energy Control Labs Northeast Mill Services Wilson Engineering Services Corinth Wood Pellet Oregon Forest Industries Council Wisconsin Energy Conservation Corporation Cousineau Forest Products PA Pellets WoodFuels Virginia LLC Dejno's Pellet Technology USA Woodmaster Ecostrat Pelletco WoodPellets.com Enviva LP Plum Creek Zilkha Biomass Energy Ernst Biomass Pratt & Whitney Power Systems Turboden Forest Energy Corporation Proe Power Systems 7

8 Large-Scale Biomass Thermal I. Sponsoring Entity - Seymour Project made possible by the USDA FS WERC BTEC awarded a grant from the USDA Forest Service s Wood Education and Resource Center (WERC) in June 2010 to advance education and outreach on biomass thermal energy The Center's mission is to work with the forest products industry toward sustainable forest products production for the eastern hardwood forest region. Previous webinar - Biomass Air Quality: Measuring, Controlling, and Regulation Emissions, Next webinar Biomass Abroad: The European Experience on Thermal Energy All questions and attendee feedback will help form future activities. Remember to answer the survey at the webinar s conclusion! 8

9 Large-Scale Biomass Thermal II. CHP/DE Overview - Cuttica John Cuttica Director, Midwest Regional CHP Application Center, and Director, Energy Resource Center, University of Illinois at Chicago CHP and District Energy Overview 9

10 CHP and District Energy Overview John Cuttica U.S. DOE Midwest Clean Energy Application Center Presentation to: Large-Scale Biomass Thermal: CHP & District Energy Systems May 25 th, 2011

11 Conventional Energy System 100 units fuel input Central Station 70 units thermal rejected / lost 30 units electric Customer purchases power from grid (central station) Power plant economy of scale 100 units input = 30 units of power Remainder of energy lost (heat) 11

12 Conventional Energy System 100 units fuel input Furnace / Boiler 20 units thermal rejected / lost 80 units thermal On-site generation of steam/hot water/hot air (boilers/furnaces) 100 units input = 60 to 80 units of heat 12

13 Conventional Energy System 100 units fuel input 100 units fuel input Central Station Furnace / Boiler 70 units thermal rejected / lost 20 units thermal rejected / lost 30 units electric 80 units thermal Customer purchases power from grid (central station) Power plant economy of scale 100 units input = 30 units of power Remainder of energy lost (heat) On-site generation of steam/hot water (boilers/furnaces) 100 units input = 60 to 80 units of heat Typical grid power + onsite heat Efficiency depends on heat/power ratio 40% to 55% combined efficiency is common 13

14 CHP System Produce the power on-site and recycle the waste heat from the prime mover units thermal rejected / lost Natural Gas Propane Biomass Waste Products Others 100 units fuel input Prime Mover Heat Exchanger Generator units thermal recovered units electric Thermal System 70 % to 85% combined efficiency is common 14

15 Combined Heat and Power Concepts Conventional CHP Waste Heat to Power District Energy CHP The sequential production of useful electric and thermal power from a single dedicated fuel source Captures heat otherwise wasted in an industrial / commercial process and utilizes it to produce electric power. These systems may or may not produce additional thermal energy Central heating & cooling plants that incorporate electricity generation along with thermal distribution piping networks for multiple buildings (campus / downtown area) 15

16 District Energy CHP System Electricity 16

17 Biomass Fuels and the Environment forest / mill residues agricultural crops & wastes wood & wood wastes animal wastes aquatic plants fast-growing trees & plant food wastes municipal & industrial wastes The combustion of biomass does not contribute additional greenhouse gases to the atmosphere, it merely returns the CO 2 that was absorbed during the growth of the biomass, resulting in zero net contribution of greenhouse gases 17

18 Basic Steps Biomass to Electricity Evaluate the availability of suitable biomass resources Determine the economics of collection, storage, and transportation Biomass Conversion Technologies (biomass to energy: combustion, gasification, anaerobic digestion, land fill gas) Power Generation Technologies (steam turbines, reciprocating engines, gas turbines, fuel cells) Good Reference Document U.S. EPA Combined Heat and Power Partnership Biomass Combined Heat and Power Catalog of Technologies 18

19 Converting Biomass Feedstocks to Energy Solid Biomass Feedstocks Combustion (steam) Solid Biomass Feedstocks Gasification (syngas) Animal Waste Wastewater Food Processing Waste Anaerobic Digester (biogas) MSW (landfills) Landfill Gas (LFG) 19

20 Direct Fired Biomass Systems Biomass combusted in a boiler to produce highpressure steam. The steam can be utilized for heating, cooling, or generating electricity (steam turbine) Co-firing - Biomass is combusted in conjunction with another fuel in a boiler (usually coal) Reduces SO 2, NOx, CO 2 and other air pollutants Normally biomass can substitute in excess of 20 t0 30% of the prime fuel 20

21 Biomass Fuel to Electricity / Heat Steam Tap Off Biomass Biomass Boiler Steam Steam turbine Generator Cofiring Coal Biomass Coal Boiler Condensate Return Prime Movers Steam Turbine 21

22 Gasification Heating solid biomass in an oxygen-starved environment to produce syngas (100Btu/cf to 500 Btu/cf) Syngas is typically CO and hydrogen produced by the gasification process Pyrolysis (~ 1,100 o F) thermal decomposition of solid biomass (oxygen starved) to produce: Gas Liquids (tar) Char -- Steam and/or Partial Combustion converts tars and chars into CO 22

23 Anaerobic Digestion (AD) Anaerobic Anaerobic Digester Digester A process where organic waste is broken down in a controlled, oxygen free environment by naturally occurring bacteria in the waste material The digester produces: Biogas (anaerobic digester gas) that can be used to generate electricity, produce heat, be cleaned up & injected into the pipeline, or all of the above Liquid (methanogenic digestate) that can be used as fertilizer Solid fiber (acidogenic digestate) that can be used as a compost, animal bedding, or to make low grade building products 23

24 Feedstock for Digesters Dairy Operations Swine Operations Cattle that are not land grazed Poultry Operations (to a lesser degree) Food processing residues vegetable and dairy Fats, oils, grease Sewage (Human waste & food waste) 24 24

25 Biomass Fuel to Electricity / Heat Syngas Gasifier Biomass Anaerobic Digester Biogas Prime Movers Recip engine Gas turbine Land Fill LFG Microturbine Fuel Cell 25

26 Biomass Fuel to Electricity / Heat Boiler Steam Turbine Electric Generator electricity Syngas Gasifier Biomass Anaerobic Digester Biogas Prime Movers Recip engine Gas turbine Land Fill LFG Microturbine Fuel Cell 26

27 Things to Think About Long term availability of the biomass at reasonable cost Onsite fuel (feedstock) management Electric utility interface Grid Interconnection Rate structures Long term power purchase agreements at reasonable price (export systems) Financing 27

28 Biomass CHP Data Total CHP = 85,000 MW Total Biomass CHP = 6,600 MW (7.7%) Total CHP = 3,600 units Total Biomass CHP = 512 units (14.2%) 28

29 Contact Information: John Cuttica Director, Energy Resources Center University of Illinois at Chicago 312/ U.S. DOE Midwest Clean Energy Application Center 29

30 Large-Scale Biomass Thermal III. CHP Systems - Wilkinson Jonathan Wilkinson Senior Vice President, Business Development, Nexterra Systems Corp. Biomass District Energy and CHP: Considerations and Lesson Learned 30

31 Biomass District Energy and CHP: Considerations and Lesson Learned BTEC Webinar May 25, 2011

32 Nexterra Overview Company Global leader in biomass gasification technology and systems Supplies turnkey biomass gasification systems for public institutions and industrial customers Enables customers to generate, clean renewable energy from low cost biomass Ultra low emissions, high efficiency and solution package ideally suited to urban environments World class partners, well capitalized with an experienced team Strategic Relationships Product Partner Channel Partner Channel Partner Combined heat and power ( CHP ) system North American public institution market BC public institutions Tolko Industries Kamloops 38 MMBtu/hr plywood plant heating system Displaces natural gas CO2e reduction: 12,000 tpy Commissioned 2006 University of South Carolina 72 MMBtu/hr campus heat & power CO2e reduction 20,000 tpy Commissioned 2008 Dockside Green, Victoria 7 MMBtu/hr district heating system Heating & Hot Water for residential complex CO2e reduction 3,400 tpy Commissioned May 2009 US DOE Oak Ridge National Labs 60 MMBtu/hr steam system JCI/Nexterra selected by DOE CO2e reduction: 23,000 tpy Startup: 2011 Kruger Products (Scott Paper) 40 MMBtu/hr steam system Gas displacement in a boiler Commissioned: Q4/2009 CO 2 e Reduction: 22,000 tpy UNBC, Prince George 15 MMBtu/hr campus heat CO2e reduction: 3,500tpy Startup: Private & Confidential

33 Why Do Biomass for District Energy/CHP? Reduce energy costs Reduce carbon footprint Demonstrate leadership in sustainability Satisfy requirements to produce renewable power Utilize locally sourced fuel Divert material from landfills Monetize carbon credits Replace aging/inefficient/failing existing boiler infrastructure 33 Private & Confidential

34 Key Considerations for Biomass System Existing anchor tenant significant heat requirement Economics need to understand the bark spread Business model - how will project be financed and who will operate system Biomass availability quantity, type, size, moisture Technology what technology will best meet your needs? (fuel types, emissions) Public Acceptance must engage and listen early to alleviate misconceptions System sizing match system to baseload for best displacement System location truck traffic, footprint, proximity to existing infrastructure 34 Private & Confidential

35 How Biomass DE/CHP Projects Get Financed 1. BOOM Utility Model (Build-Own-Operate-Maintain) 3 rd party finances, owns and operates and sells the energy to multiple/single end users 2. Energy Services Performance Contract (ESPC) ESCO installs and operates energy equipment and guarantees savings 3. End User Self-Financing End user customer self-finances the project based on internal capital hurdle rates (e.g. corporate balance sheet, muni bond, etc.) Note: Government funding (direct grants, loan guarantees, infrastructure funding and tax credits) apply to all models 35 Private & Confidential

36 District Energy Example

37 Dockside Green 1.3 million sq/ft of residential, office, and retail space Located in the heart of the City of Victoria Triple bottom-line development Developed by Vancity and Windmill Developments First greenhouse gas neutral community in Canada 37 Private & Confidential

38 Dockside Green: Requirements Cleanest technology available Community acceptance No dust or odor Aesthetic designs Minimal truck traffic Economically viable Ability to handle variable fuel Fully automated & operator friendly Potential to convert to power (future) 38 Private & Confidential

39 Dockside Green Victoria BC District Heating & Hot Water 8 MMBtu/hr Fueled with Urban Wood Waste Operated by Utility Services Company Recognized by Clinton Climate Initiative Started up May 2009 / 39

40 University Example

41 UNBC Prince George British Columbia 15 MMBtu/hr central heating plant Hub of UNBC s Bioenergy Innovation Center 3,500 tonnes per year GHG reduction Phase 1 Thermal, Phase 2 GE CHP

42 UNBC Objectives Displace >80% of the natural used to heat the campus Reduce fuel costs, GHG emissions Design system for highest air emissions performance, especially PM 2.5 No negative impact on local air shed Positions UNBC as a bioenergy leader in the high education market Learning lab tied to engineering faculty Create new partnerships, R&D and economic development opportunities 42 Private & Confidential

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44 Oak Ridge National Labs 60,000 lbs/hr steam plant Annual Savings: $4.0 MM GHG Reduction: 22,000 tpy Operational Q3/ Private & Confidential

45 University of Montana 45 Private & Confidential

46 CHP Example

47 UBC Objectives Advance UBC s sustainability goals and demonstrate leadership in clean-energy innovation Establish a living laboratory that integrates research, teaching and demonstration Demonstrate first global, commercial, demonstration of innovative bioenergy system producing heat and power Lower UBC Vancouver s taxable greenhouse gas emissions and fossil fuel consumption ($55/tonne) Strengthen UBC s interaction and relationship with the private sector Establish the Province of BC as centre of clean technology innovation and commercialization 47 Private & Confidential

48 UBC CHP Demo Project UBC 2 MW Biomass CHP Project Fuel Req d: 12,500 BDMT/year (2/3 trucks/day) Gross Power: 1.95 MW Net Thermal: 10 MMBtu/hr (80,000 MMBtu/yr) CO2 Red: 4,000 tpy (thermal only) Footprint: 180 X 90

49 Requirements for a Successful District Energy System Existing anchor tenant significant heat requirement Located in close proximity to energy users Biomass available in the local area (at reasonable cost) Designed to meet public expectations Open and transparent public consultation process Strong and consistent political/community leadership Business model to allow for execution and operation 49 Private & Confidential

50 Large-Scale Biomass Thermal IV. District Energy St. Paul - Burns Michael Burns Senior Vice President of Operations and Engineering Group, Ever-Green Energy Case Study District Energy St. Paul 50

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52 Our Mission Be the preferred provider of community energy services that benefit our customers, the community and the environment.

53 Heating and Cooling Saint Paul

54 Saint Paul s Integrated Energy System Oil Electricity Natural Gas Biomass Solar Distribution Infrastructure Centralized Community Heating & Cooling System Commercial Industrial Coal Future Energy Sources Thermal Storage Residential

55 Saint Paul s Integrated Energy System Heats more than 80 percent of the downtown area - over 31 million sq. ft. Primary fuels are renewable, clean, urban wood and forest residuals Combined heat and power 25 MW of electricity; 65 MW thermal energy Reduced fuel consumption Increased efficiency

56 Benefits of Hot Water Distribution Efficient less distribution loss Network dispersed plants and solutions Collect waste/surplus thermal energy Facilitates storage of thermal energy

57 District Cooling

58 District Cooling Chilled-water demand is 29,000 tons Serves more than 60% of the downtown area approximately 19 million sq. ft. Chilled water system includes 6.5 million gallons of storage capacity Thermal storage reduced peak-electric demand by as much as 9,000 kilowatts

59 Bringing green energy to Saint Paul - Combined Heat and Power Saint Paul uses up to 300,000 tons per year of clean, renewable wood residuals

60 St. Paul Cogeneration 25 MW of electricity Renewable, clean, urban wood and forest residuals Double the efficiency of conventional electricity-only power plants Greenhouse gas CO 2 reduced by 280,000 tons per year

61 Fuel diversification (2009) Before and after wood-fired CHP project 100% 80% 60% 40% Biomass Oil Gas Coal 20% 0% Before After

62 Why wood waste? Large quantities in Twin Cities Disposal problem Economically viable Community based

63 Wood Waste Processing

64 Where does the wood come from? Tree Waste: Municipal parks and forestry operations DNR projects Land clearers (large developments) Tree removal contractors Storm damage Diseased trees Forest residuals

65 Challenges Biomass Fuel Availability/location/sustainability Quality Variability/seasonality of supply Competition Logistics - transportation and storage Fuel handling system design

66 Solar Thermal Integration 2010: Solar America Cities (DOE) Special Project

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68 Benefit: Energy Conservation Fuel Fuel Consumption per per Service Square Area Foot (kbtu/ft (kbtu/ft 2 ) 2 ) Fuel use per square Unit Area foot (kbtu/sq ft) ft)

69 Benefit: Rate Stability $ Per kwh $0.080 $0.060 District Energy St. Paul Combined Rate Summary, FY-1998 to 2010 $0.040 $0.020 District Cooling St. Paul $0.000 Combined Rate Summary, FY-1998 to $0.40 $ Per Ton-Hour at 1200 Utilization Hours Demand Charges Fiscal Energy Year Charges $0.30 $0.20 $0.10 $ Fiscal Year Demand Charges Energy Charges

70 Thank You! 76 Kellogg Blvd W, Saint Paul MN

71 Large-Scale Biomass Thermal V. Discussion - Seymour Q & A Ask questions using the Questions Panel on the right side of your screen. All questions and comments will be recorded and incorporated in the webinar summary report. Also, please take a few moments to answer the survey questions. 71

72 Large-Scale Biomass Thermal V. Other Resources - Seymour Other Resources Next webinar - June 15, 12 PM ET: Brits, Brussels, and Biomass: The European Path Towards Renewable Heating Sign up: Speakers: Günter Hörmandinger, First Counselor Environment, Delegation of the European Union to the United States of America Andrej Miller, Office for Renewable Energy Deployment, UK Department of Energy and Climate Change Christiane Egger, Deputy Director, Upper Austrian Renewable Energy Agency Joseph Seymour, Policy and Government Affairs, BTEC Moderated by Emanuel Wagner, Outreach, Education and External Affairs, BTEC 72

73 Large-Scale Biomass Thermal V. Other Resources - Seymour Other Resources Planned webinars: --June 24, 2011: Financing Biomass Thermal Projects More resources (biomassthermal.org/resources) -- Interviews (6+, also on itunes Podcasts) -- Factsheets -- Presentation 73

74 Large-Scale Biomass Thermal V. Upcoming Events - Seymour Upcoming Events Argus Renewables Trading Summit Americas June 7-8, NYC argusrenewables.com/ Congressional Renewable Energy & Energy Efficiency EXPO + Forum June 16, DC sustainableenergycoalition.org/eere_expo/ 74

75 Large-Scale Biomass Thermal V. More Information - Seymour More Information This Webinar will be available by Tuesday, May 31. Sign up to receive BTEC news at on our website. Consider Joining BTEC --Receive regulatory and policy intelligence --Connect with other biomass leaders --Support the market s growth and outreach 75

76 Large-Scale Biomass Thermal BTEC Board of Directors Thank you! If you want to learn more about the biomass thermal industry, BTEC, or membership, visit 76

77 Large-Scale Biomass Thermal 77