Woody Biomass for Bioenergy in Australia. Liz Hamilton, Senior Bioenergy Industry Officer

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1 Woody Biomass for Bioenergy in Australia Liz Hamilton, Senior Bioenergy Industry Officer

2 Bioenergy * Renewable energy from organic matter, (biomass). * Stored energy in biomass - natures solar batteries. * Includes food processing waste, manures, crops, woody residues, weeds and sewage which are then converted into heat, electricity or liquid biofuels. * Woody biomass refers to plant derived biomass that is composed of cellulose, hemicellulose and lignin - lignocellulosics. Focus of this talk

3 Woody biomass can be used to produce Liquid biofuels e.g. 2nd generation lignocellulosic ethanol or Stationary Bioenergy: e.g. electricity, heating & cooling

4 Share of bioenergy in the world primary bioenergy mix in % of the world s primary energy comes from biomass = ~ 50 Exajoules = joules Source: IEA 2006 & IPCC 2007

5 Bioenergy generation by country Source: IEA Bioenergy/ Geoscience Australia, 2007)

6 CO 2 Photosynthesis Processing Biofuels CO 2 Slide courtesy: Steve schuck, Bioenergy Australia

7 GHG Emissions from various fuel types Bioenergy reduces greenhouse gas emissions. Constructed using data from the National Greenhouse and Energy Reporting System 2007 TABLE: Courtesy of the Clean Energy Council Bioenergy Roadmap

8 Life Cycle Emissions of Various Renewable Technologies g/kwh CO 2 SO 2 NOx Black Coal Gas CCGT Bioenergy Straw - steam cycle Forestry residues steam cycle Forestry residues gasification Poultry litter gasification Animal slurries anaerobic dig Landfill gas Sewage gas MSW incineration Other renewables Decentralised PV new homes Wind on shore Hydro existing large Source: IEA/DTI UK report via Bioenergy Australia

9 Generated Renewable Energy in Victoria Installed renewable energy capacity technology in Victoria, 2010 Actual Generated Renewable Energy in Victoria, 2008 Table:. Source: Clean Energy Council Renewable Energy Database, ABARE, 2010 Chart: Source: Parliamentary Inquiry into Approvals Process for Renewable Energy, 2010

10 Delta Energy NSW Mallee sp. co firing project * DE - Australia s largest power generator undertook analysis comparing costs of meeting their 20% RET requirements using various renewables. * Investigating potential for mallee production for biomass. * Trialling Crucible Carbon pyrolyser at Vale Power Station Typical $A Capital Costs of Projects Option Base/$KW Capacity factor Factored cost/kw Coal $ $3050 Biomass $ $5850 Geothermal $ $6500 Wind $ $8000 Solar $ (?) $14000

11 Opportunities for woody biomass to bioenergy CEC Bioenergy Roadmap states bioenergy could provide 4% by 2020 & between % of Australia s electricity needs by Federal government mandated 20% renewable energy by 2020; New SRES and LRET breakdown will help bring REC prices up to encourage large bioenergy project developments. Increasing electricity prices & grid upgrades, landfill price increases and tightening of EPA regulations will help increase the viability of bioenergy. Regional employment opportunities.

12 Full time equivalent ren. energy industry jobs Source: Clean Energy Council Report, Clean Energy Australia, 2010, from SKMMMA, 2010

13 Barriers to Bioenergy - Clean Energy Council Report Specific barriers to the bioenergy sector are: * The lack of an adequate carbon price signal. * Low price for RECs: disincentive for new projects. * Regulatory gaps affecting eligibility & accreditation * The high cost of arranging connection to the grid. * The lack of general information on the value of embedded generation to the network makes it costly to screen projects for viable options and to optimise project location. * Community support for local bioenergy projects. Only Vic. has a feed-in tariff for bioenergy for generating up to 100 kw from wind, solar, hydro & biomass sources. Also, no rebates like solar hot water.

14 Nevertheless. Considerable activity around Australia in the area of woody biomass to bioenergy projects. Most development where large thermal energy needs & cheap, free or problematic waste biomass streams. Opportunities for exporting biomass e.g. pellets to Asia and Europe, and for building up local biomassusing industries e.g. in hospitals and other public institutions, new housing developments and to encourage group pellet heater buy ups.

15 Operating Woody Biomass to Bioenergy Projects in Victoria Note: this is just an example of some of the operating woody biomass to bioenergy projects - the list is by no means complete!

16 Australian Paper, Maryvale - Black Liquor to Power * Black liquor- by product of pulp & paper making industry * The Maryvale power station is the largest industrial producer of renewable energy in Victoria. * Generates ~ 200,000 MWh/year or 23 MWe average + over 2 million tonnes/year of process steam or about 1.5 million MWh of thermal energy for their processes. * In 2007, 69.5 % of Maryvale Mill s energy input was produced from waste black liquor. * Also potential to convert black liquor into bio-oil or gasified into transport fuel.

17 Thermal bioenergy production in Victoria Reid Bros. Sawmill Yarra Junction Photo and information: David Coote 1MW(thermal) bioenergy plant at their sawmill. Burning tonnes of wood milling waste /week to run their kilns. Cost $350,000 to install in 2004, (nowadays maybe $500,000). Saving $300k/annum compared to LPG they used to use.

18 Thermal energy production Carter Holt Harvey Pine mill Morwell Producing nearly 20MWth from one large boiler Runs 24/7 Used to produce steam for their kilns. Most larger Vic sawmills use their waste wood to produce heat & steam for their kilns 65% of their mill s energy is from renewable sources

19 Bioenergy Projects In Australia under development Focus on woody biomass to energy projects under development mostly Victorian. Again, this list is by no means complete, and; Apologies to anyone who is developing woody biomass to energy projects I have omitted.

20 Visy Paper recycling & RCR Energy: Campbellfield Currently installing a Bubbling Fluidised Bed boiler with 30.8MWth & 3.0 MWe capacity. Will use up to 11.3 tonnes/hr of fuel ~ 50% unrecycleable short paper/cardboard fibres, ~ 50% plastics (not PVC s). Will also use urban wood waste

21 Norske Skog Biomass/Gas Cogeneration, Albury Currently produces ~ 270,000 t/yr of newsprint 24/7 from recycled paper & pine which are both processed onsite. NS is in final study phase of a biomass/gas cogeneration proposal to supply process steam and electrical power. Boiler to be fuelled by mill & local regional waste steams: * Hog Fuel from the debarking and processing of pine * Recycled Paper Deinking & Water Treatment Sludges * Local Council construction timber waste * Forest residues 8 MW generated on-site: 5 new jobs in biomass supply chain + up to 100 construction jobs. 75% reduction in natural gas use.

22 Plantation Energy Australia PEA is Australia s only industrial scale Densified Biomass Fuel (DBF) pellet manufacturer using plantation residues. Currently, one DBF plant in Albany 250,000 tonnes/yr; one plant planned for Heywood & one in Mt. Gambier. New 4 yr supply deal with Mitsui company worth > $70 million. Brings them one step closer to developing these new plants.

23 New Royal Children s Hospital - Melbourne Aim to be Australia s greenest hospital & reduce GHG s by 45%. Various energy efficiency measures include a recently installed 600 kw, 90% efficient, wood boiler to help heat ~ 10% of hospital. Capital cost of around $700K to install. Will use 10,040 t/yr pellets, initially from PEA, Albany.

24 D&R Henderson, Benalla, Particle Board Plant Plan to install downdraft, fluidised bed gasifier(s) to generate heat & syngas to dry chips for particle board manufacturing. Up to 18,000t/yr particle board sander dust & wood waste. Reduced energy costs and avoids cost of sending 6,000t/yr of sander dust to landfill (flammable, hazardous product). Project cost - $1,950,000, RDV Support - $877,500 Reducing GHG emissions by up to 10,310 t/yr (not including avoided landfill emissions same for all projects outlined). Staged project, achieving energy savings of up to 200,000 gigajoules of natural gas/yr & net savings of > $200,000/yr. Creating up to 6 new FTE positions through implementation

25 Real Power Systems Gasifiers & Wannon Water Five projects have approval in principle in Victoria. First gasifier recently commissioned near Hamilton, Vic. to maintain heat in anaerobic sludge digester of Wannon Water s recycled water processing facility partially heated with LPG. Using dried sewerage sludge & wood chip for heat & biochar. Gas flow rate aim was 300m 3 /hr but system producing 700m 3 /hr Est. power available kWe or 1320kWth

26 Ararat Shire gasification project for local pool Looking to purchase a 60kW Ankur gasifier to help supplement > half of the gas heating of the YMCA pool from wood waste. Around 50kg of fuel/hr to generate 622 MJ heat/hr. ~ 400 tonne per annum operating 8,000 hours per year. Currently pool heating costs ~ $40,000/year on natural gas. Total capital cost: gasifier, new syngas suitable boiler, automated feed in system and storage ~ $100,000. Expected pay back period of ~ 5 years

27 Hancock Victorian Plantations Trialing a Bruks Mobile Chipper in post harvest plantation slash. Currently contracted in the NE in 20 yr old fire damaged pine. Carter Holt Harvey using chip in their boiler at Myrtleford mill. Interest from other industries to use the chip including particle board manufacturer.

28 Second Generation, Lignocellulosic, Biofuels Utilizing wood and crop residues unlike 1 st gen. biofuels More than 150 second gen. projects worldwide. Two main technologies for making 2 nd gen. ethanol - Biochemical: conversion via hydrolysis to release sugars & fermentation to alcohol fuels - difficult process cf. 1 st gen. biofuel production. - Thermochemical: gasification to syngas and synthesis to fuels.

29 Coskata Inc. Plasma Gasification to Ethanol Project Vic. govt facilitating a $400 million, ethanol prod. facility to produce 225 million litres of ethanol/yr for blending with petrol. High temp. plasma gasification of biomass to syngas. Can be based on any MSW or biomass waste streams. Bio-fermentation of syngas with proprietary micro-organisms. Recent $250 million US loan guarantee for 250,000 tonne/yr pulplog based plant.

30 Bioenergy Activity in Victoria Victorian Bioenergy Network - (DPI and SV) network, regular Bioenergy Business Breakfasts, other events Various grants and incentives - eg. * DPI s ETIS doubling of grant $ to $82 million in * Federal govt $1.4 billion Regional Development Aust. Fund Vic. Timber Industry Strategy - lifts the ban on the sale of renewable energy generated by burning native forest waste. DPI Biofuel Crop Potential in Victoria Project potential for 33 biofuel crops in Victoria now and in Feasability for Biochar Production in Victoria: Sensitivity Analysis undertaken by DPI in 2009.

31 Victorian Biomass Audit (TBC mid 2011)

32 Victorian Biomass Audit Funded & managed by Regional Development Victoria. Detailed mapping of available biomass to better inform investors of scale & scope for resource recovery initiatives. Drivers include: * Incomplete data sets and lack of source specifics * Increasing landfill levies * Renewed EPA vigilance * Pre-emptive assessment to identify industry and community sustainability issues/options e.g. susceptibility of regional industries to impending waste management bottlenecks. Provide the basis for considered, prioritised industry and energy facilitation. Timber industry component of Audit completed late 2010.

33 Victorian Bioenergy Website

34 Thank you Senior Bioenergy Industry Officer Department of Primary Industries, Victoria