DEC 7, 2012 Biomass Project Partnership

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1 DEC 7, 2012 Biomass Project Partnership Part 2 Miscanthus Economics Air Permitting Status / Strategy Mark Maxwell Biomass Project Strategic Considerations Opportunity Fuels & Managed Lands Lyle Asell Photo credit: Ferman Milster

2 Miscanthus Economics Establishment costs are high, due to vegetative propagation techniques. Harvesting techniques need to be optimized. Bale or silage Storage methods and processes need to be developed Minimum economical field size needs to be defined. 2

3 Corn (per acre) Year Corn Miscanthus $ Comparison Machinery for Growing and harvesting $ Seed, Chemicals, Fertilizer, etc. $ Ag Decision Maker, File A1 21, August 2012, ISU extension Labor $ Land $ Total $ Expected corn yield 176 Cost per bushel $ 4.49 Farm Gate price ($/bu) $ 6.23 Return per acre $ 305 $ 305 $ 305 $ 305 $ 305 $ 305 $ 305 $ 305 $ 305 $ year return $ 3,055 Miscanthus (per acre) Establishment Cost (year 1) $ 1, Weed Control (year 1) $ Harvest (year 2 onward) $ Labor $ Land $ Yield at maturity (tons) Farm Gate price ($/ton) $ Return (per acre) $ (1,215) $ 83 $ 440 $ 440 $ 440 $ 440 $ 440 $ 440 $ 440 $ year return $ 2,388 3

4 Permit Application Status Estimated Comments Air Permitting Status/Strategy Complete Plant-wide Applicability Limit (PAL) Submitted to DNR JUN 30 Mid-2013 Replaces requirement for NSR, Caps emissions for 10-years Boiler 11 Wood Chips Submitted to DNR NOV 22 UNK Wood available for continuous supply, Trial burn till APR 30, Stack test in trial burn, Permit engineer assigned Boiler 10 Wood Chips, paper sludge, yard trimmings Scheduled to be submitted to DNR on DEC 10 FEB/MAR 2013 Wood available for continuous supply Boiler 11 grasses, sludge, seeds, energy pellets, others Not yet started UNK Developing permitting strategy for additional fuels, may limit number initially permitted. Boiler 10 Miscanthus Grass Not yet started UNK Needed by Fall 2014, if we proceed with miscanthus trial planting Boiler 10 Gas Burners Complete - OCT 18 N/A Project has bid, install Spring 2013 Backup gas engines Complete - OCT 12 N/A Project expected to start Fall

5 Biomass Project Strategic Considerations Maintain fuel diversification Maintain ability to burn coal into the foreseeable future Increase renewables by blending with coal Minimize Main Power Plant capital modifications The higher the blend percentage of biomass with coal, the more the biomass needs to look and act like coal. Transition from truck transport to rail Do not adversely impact existing markets and businesses. 5

6 Opportunity Fuels Tree debris from storms, stuff that can be turned into wood chips Liaison with county emergency managers Discuss capabilities and capacity at UI FEMA Public Assistance Debris Management Guide FEMA-325 / July

7 Public Lands in Area of Interest 148,000 acres 7

8 Public Lands in Area of Interest Owner Acres ACE Total 53,021 DNR Total 37,323 FWS Total 13,066 State of Iowa Total 12,530 Linn CCB Total 6,022 Scott CCB Total 2,413 Louisa CCB Total 2,192 Keokuk CCB Total 2,038 Washington CCB Total 1,965 Poweshiek CCB Total 1,602 Johnson CCB Total 1,561 City of Iowa City Total 1,479 Tama CCB Total 1,453 Clinton CCB Total 1,273 Muscatine CCB Total 1,267 Benton CCB Total 1,085 Iowa CCB Total 1,046 TNC Total 884 Cedar CCB Total 812 Jefferson CCB Total 811 University of Iowa Total 773 City of Coralville Total 723 Cedar Rapids Total 722 Henry CCB Total 425 City of Davenport Total 305 Jones CCB Total 305 Dubuque CCB Total 291 Johnson County Heritage Trust Total 218 NPS Total 187 Linn County Trails Association Total 123 City of Fairfield Total 69 CM&SP Railroad Total 67 City of Solon Total 58 Black Hawk CCB Total 55 JCHT Total 47 City of Tiffin Total 37 Audubon Society Total 36 Johnson County Total 29 Private Total 22 Mt. Pleasant Utility Total 17 State Historical Society of IA Total 9 Grand Total 148,362 8

9 Iowa DNR Managed Lands (Hawkeye Wildlife and Iowa River Corridor) Owner Acres Army Corp of Engineers 13,694 Iowa DNR 1,264 Fish & Wildlife Service 9,536 Total 24,494 9

10 Reed Canary Grass Potential biomass fuel source Perennial Well adapted to wet soils Tall (up to 6 ft.) cool season grass Strain native to North America but crossed with European strain to create highly invasive species Takes over and chokes out other species Currently harvesting 200 to 400 acres per year, normal yield three to five tons per acre National Park Service Photo 10

11 DNR Managed Lands UI Geography Department developing high resolution remote sensing technology to be able to characterize vegetation species. Investigate pilot project to convert reed canary grass into suitable form for combustion. Need funding. DNR, FWS, NRCS developing data for UI Sustainability Index. 11