Opportunity for NC. January 25, Alex Hobbs, PhD, PE NC Solar Center. ncsu Advancing Renewable Energy for a Sustainable Economy

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1 Biomass & CHP Opportunity for NC Energy Policy Council January 25, 2010 Alex Hobbs, PhD, PE NC Solar Center ncsu

2 NC REPS Definition of Biomass The NCUC decided not to expand the definition of biomass specified in N.C. Gen. Stat (a)(8): agricultural waste, animal waste, wood waste, spent pulping p liquors, combustible residues, combustible liquids, combustible gases, energy crops, or landfill methane; or waste heat derived from a renewable energy resource. Further determination of what constitutes a qualifying biomass resource may be made on a case-by-case basis.

3 Mission: To promote economic development, a reduction in greenhouse gas and other emissions, and energy security through the utilization of biomass, including both bioproducts and bioenergy, in the State of North Carolina. Made up of members from Industry, State Government and Academia

4 NC Biomass Council Estimated 260 trillion Btu s or 76 billion kw t hr of biomass resource in NC nergy/docs/nc_biomass_roadmap.p df

5 Biomass Thermal Fuel Value 199x10 12 Btu/yr 6650 Mw t 1662 Mwe

6 Current Forest Productivity TPO for NC 2007 data indicate we are generating about 12 million green tons of logging residue and 11.5 million other removals, 25% more than enough to satisfy the 17.6 million tons of forest residue (equivalent to 8.8 BDT or 55% of the RPS total need) from the full implementation of the RPS From Chris Hopkins 10/6/09 presentation to EMC

7 Agricultural Residues Corn stover and wheat straw are the main sources of potential agricultural residues in NC. Corn stover is about 74% of the agricultural residues (0.659 million BDT) and wheat straw is the bulk of the remainder (0.238 million BDT) Hay is not a residue product, but may be available for use (1.589 million tons) From Chris Hopkins 10/6/09 presentation to EMC

8 DOE Opportunity Fuels Anaerobic digester gas (ADG) Land fill gas (LFG) Waste treatment plant gas Biomass Construction and demolition (C&D) Municipal waste or refuse derived fuels Shredded tires

9 Opportunity fuels

10 La Capra Study recommended 93MWyr swine AD and 102MWyr poultry waste REPS requires 0.2% swine waste by 2018; 900,000 MWh of poultry waste by 2014

11 Anaerobic Digester fuels CHP Nutrients reduction Biogas production 16 MM BTU/day Radiator and Exhaust heat exchangers 10,000 gallons hot water storage Assume 50 kwe generator

12 Poultry litter electricity & fertilizer

13 LFG to Energy The Landfill Energy Delivery End User (MBTU) High BTU Project (HBTU) Pipeline Usually larger project and increased capital requirements. Requires HBTU 950 btu/scf spec for sales to local Natural Gas (NG) distribution or transmission company Electricity Production-(Electric) Requires interconnect with local co-op or major power company Economically dependant on long-term price per kw for support

14 Market Options for Biogas Clean to pipeline natural gas H 2 S, H 2 O and CO 2 removal Direct combustion Boiler Space heater Electricity Generation Reciprocating engine Microturbine Fuel cell

15 Consider CHP for efficiently using biomass for power production Promote distributed generation using available opportunity fuels Utilize waste heat from the natural inefficiency of power generation Strive to reduce carbon emissions to the atmosphere Need to develop policies that allow change to occur

16 Efficiency Benefits of CHP For Biomass REPS Kwt=Kwe

17 Do we have some questions? Alex Hobbs NC Solar Center

18 Energy Conversion Technologies Energy Products and Processes for Biomass Process Heat Hot Gas or Steam Bio-Power Direct Combustion Electricity or Combined Heat and Power (CHP) Turbines Simple Sugars Acids & Enzymes Logging Residue, Waste Wood, Tops & Branches Torrefaction 300ºC Pyrolitic Conversion Torrefied Wood Bio-Char Hydrolysis Pyrolysis 400ºC Bio-Oil Alcohols Fermentation & Gasification Syngas (CO H CH Distillation ) ºC Alcohol, Fischer- Tropsch Liquids Bio-Fuels & Bio-Products Chris Hopkins-NCSU

19 Renewable Energy and Energy Efficiency Portfolio Standard Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Hydrogen, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy Applicable Sectors: Municipal Utility, Investor-Owned Utility, Rural Electric Cooperative Standard: 12.5% of 2020 retail sales by 2021 for investorowned utilities; 10% of 2017 retail sales by 2018 for electric cooperatives and municipal utilities Technology Minimum: 0.2% solar electricity and thermal energy by 2018; 0.2% swine waste by 2018; 900,000 MWh of poultry waste by

20 SESSION LAW SENATE BILL 1465

21 Implementation Each electric public utility that serves a swine farm that is selected for participation in the pilot program is required to purchase all electricity generated by the use of captured methane as a fuel by pilot program participants for seven years. The total of all electric power purchases under the program will not exceed 25 megawatts at any point in time. The seven-year period begins on the date the swine farm first sells electricity to the electric public utility and ends seven years after the date on which the period begins. The Commission will set a suggested purchase price that would allow program participants to recover reasonably and prudently incurred capital and operating costs and that would minimize the impact of the pilot program on ratepayers. The price of power purchased under the program shall be determined by agreement between each program participant and the electric public utility.

22 Purchase Price Agreements Each purchase price agreement shall take into account the extent to which any capital or operating costs are paid to the program participant from any other source, including grants. A purchase price agreement may be revised at any time by agreement between the parties. If a program participant and an electric public utility cannot agree on a purchase price, the Commission will set the purchase price. A purchase price cannot exceed eighteen cents (18 ) per kilowatt hour. The Commission, with the advice of the Public Staff, may review any agreement between a program participant and an electric public utility. All costs incurred by an electric public utility to comply with the provisions of this section may be recovered as costs of fuel pursuant to G.S

23 Funding The Swine Farm Waste Management System Conversion Account is located within the Division of Soil and Water Conservation of the Department of Environment and Natural Resources Funds in the account shall be used only as provided in subsection (b) of Section 2 of this act. Lagoon Conversion Program The account consists of funds appropriated by the General Assembly; any federal funds available for this purpose; and any grants, gifts, or contributions to the State for this purpose. Funds in the Account shall not revert.

24 Wood residues The conversion of woody biomass to energy in the NC poses a unique opportunity to address three issues: Restoration of forest health GHG reduction by using renewable energy alternatives Provide economic development in rural communities

25 There is a significant proportion of the 10% NC REPS available from gleaning g logging g residues.

26 Biomass harvests can reduce site preparation costs.

27 Wood Biomass to Electricity 45 MWe Craven County Wood Energy (CCWE) Operating since 1990 at 95% availability