Applications: Examples. SmallWood 2012 Flagstaff, AZ May 1, 2012
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1 Biomass for Thermal Applications: Examples SmallWood 2012 Flagstaff, AZ May 1, 2012 Jennifer Hedrick, Executive Director
2 Agenda 1. Introduction to the Pellet Fuels Institute 2. Review of Major Applications 3. Industry Highlights
3 PFI Mission A North American Trade Association Promoting Energy Independence through the Efficient Use of Clean, Renewable, Densified Biomass Fuel. Emphasis on Densified Biomass (e.g. pellets) for Thermal Applications
4 Founded in 1985 Located in Arlington, VA Quick Facts on PFI Membership Comprised of: Densified Biomass Manufacturers Industry Suppliers Associate Members (e.g. NGOs, universities)
5 America s Energy Usage
6 America s Energy Usage Transportation 29% Electricity 40% Heating (thermal) 31% Source: EIA
7 Biomass for Thermal = Most Efficient Use
8 Thermal Applications Residential Commercial/Industrial
9 Thermal Applications: Residential Heating Stoves and Inserts Boilers and Furnaces
10 Thermal Applications: Residential Heating Stoves/Inserts Wood Pellet Blend High Efficiency, Clean Burning, Advanced Technologies Not your Mother s stove
11 Own Fireplace/Stove in Primary Residence 2010 Own Fireplace only: 75% Gas Fireplace Owners Own Both Fireplace and Stove: 10% Fireplace Owners (n=1,996) Gas stove 33% Total Respondents (n=3,560) Own stove only: 15% Fireplace/Stove Owners (n=2,500) Approximately 112 Million Households in the U.S. Wood stove 46% Other 10% Stove Owners (n=504) Pellet stove 11% Natural gas 76% Source: HPBA Gas Stove Owners Propane 24%
12 U.S. Stove Ownership 2010 ~ 112 Million Households in U.S. 58 million own fireplace/stove 14.5 million households own stove 667m m m Other m 4.8 wood pellet (coal, ag, corn, gas etc.) Source: HPBA
13 U.S. Hearth Appliance Shipments in 2011* Cordwood 197,181 Gas** 573,468 Pellet 62,451 TOTAL 833,100 Source: HPBA * Does not include Electric Hearth Appliance Shipments, which total 1.5 million in 2011 ** Includes Gas Log Estimated Data (279,400)
14 U.S. Pellet Appliance Shipments , , , ,000 80,000 60,000 40,000 20,
15 Historical Oil Prices January January 2012 Pellet Stove Shipments rise/fall with oil prices Source: U.S. Energy Information Administration
16 Thermal Applications: Residential Heating Boilers/Furnaces Wood Pellet Multi-Fuel Whole home or hot water heating Small segment of market
17 U.S. Residential Pellet Market Residential Market = Primarily Bagged Market Using gpellets as primary or secondary heat source; zone heating 1.6 million homes heating with pellets
18 Thermal Applications: Residential Heating Bulk Delivery The norm in the E.U. Gaining Traction in the U.S.
19 Thermal Applications: Commercial/Industrial Market Large-scale boilers Generally > 250, BTU/hr Schools Hospitals Government Buildings Communities Process Heating New markets
20 Commercial/Industrial Market: Examples Mineral Community Hospital, Superior, MT Pellet burning system (180 tons/year) 885,000 BTUs per hour Replaces 36 year-old fuel-oil system Lower costs by $48,000 p/a Grants fund ½ of project s costs
21 Commercial/Industrial Market: Examples Barron School District, Barron, WI Multiple systems include pellet burning system Pelco Boiler = Middle School 2.5 MM BTU/hr Fuel supplied by Indeck Energy
22 Commercial/Industrial Market: Examples Locally Eagar Town Hall (~ 1 hr outside of Flagstaff)--boiler using pellets,.5 million BTU/hr Fairplay High School (CO)--boiler using chips from Beetle infested trees, 3 million BTU/hr Both are projects of Forest Energy Corporation (Show Low, AZ)
23 Larger Scale Utilization Combined Heat and Power Applications working well in Europe Opportunities to follow their lead District Heating Supplying heat for multiple buildings from a single location
24 Thermal Applications: New Markets Confined Animal Feeding Operations (CAFOs) Fuel switch from LP gas to pellets
25 Thermal Applications: New Markets Green Houses
26 Thermal Applications: US U.S. Department of Defense Energy Requirements: New Markets largest consumer of energy in the U.S. 300,000 buildings 2.2 billion square feet 25% of energy from renewables by 2025
27 Thermal Applications: New Markets Opportunities for Thermal DoD/Renewables = hot topic in Washington New projects in place or under development by U.S. Coast Guard Alaska Maine
28 Source: RISI Impact on Wood Fiber Markets
29 Source: RISI North American Pellet Industry Capacity
30 North American Market: Year in Review 2011 North American Capacity: 7.7 m tons U.S. Capacity Canadian Capacity 5.1 m tons 2.6 m tons North American Production: 5.2 m tons U.S. Production 3.33 m tons Domestic 2.0 Export 1.3 Canadian Production 1.9 m tons Domestic 0.2 Export 1.7 Source: RISI
31 Source: RISI Exports
32 Hot Topics: Industry Standards New Source Performance Standard for Residential Wood Heaters (NSPS) PFI Standards Program Development of Standards for Storage Handling
33 Public Policy Radar Impact of Election Year Policy/Regulations Farm Bill Energy Title Tax Extenders Boiler MACT Loss of Key Industry Advocates in Congress Grassroots Increased collaboration between interest groups
34 Biomass for Thermal: The Message Renewable Sustainable Highly efficient Provides for job development, particularly in rural areas aeas Local Homegrown
35 THANK YOU! Jennifer Hedrick Hdik
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