How to Approach a Biomass Project

Transcription

1 How to Approach a Biomass Project Adirondack North Country Biomass 101 Workshop The Wild Center, Tupper lake, New York Kamalesh Doshi, Senior Program Director Biomass Energy Resource Center April 19, 2011

2 Biomass Energy Resource Center (BERC) Founded in 2001, BERC is a national not-for-profit organization working to promote responsible use of biomass for energy. BERC s mission is to achieve a healthier environment, strengthen local economies, and increase energy security across the United States by developing sustainable biomass systems at the community scale. BERC partners include communities, colleges and universities, local state and federal governments, businesses, utilities, schools, institutions, other conservation and energy nonprofits, energy offices, and federal organizations.

3 Understanding If a Biomass System is Right for Your Facility Prequalification Questions: Area of Heated Space: The number of buildings and their size (in square feet) Future expansion/renovation plans Type and annual consumption of heating fuel currently used Average and current price paid for current fuel and purchasing method Type of heat distribution system (steam, hot water, or hot air)

4 Important Steps for Facility Owners Considering a Biomass Project Visit existing biomass systems and talk to operators and facility managers Select a consultant to conduct a preliminary feasibility study Contact biomass fuel suppliers Determine permitting requirements and regulations Evaluate financing options and any incentives Conduct an engineering-level feasibility study Develop performance specifications and go to bid (RFP process) Evaluate bids and select contractors and vendors Implement the project

5 Why Visit Existing? See the technology at work Better understand your options (design & technology) Evaluate the pros and cons Benefit from lessons learned by operators and owners of these systems

6 What will a Preliminary Feasibility Study Tell You? Appropriate system sizing and technology options Site assessment and space requirements Biomass fuel supply availability and pricing Permitting requirements and environmental considerations Estimates of capital costs and life cycle cost analysis Provide important answers to stakeholders questions

7 Why Should You Establish an Early Relationship with Biomass Fuel Suppliers? Developing a relationship with multiple fuel suppliers provides reliability More suppliers = competitive pricing Evaluate long-term fuel supply opportunities Understanding delivery capabilities (truck dimensions, tonnage, mileage) Important in the design & construction phase of storage facility, bin, or silo

8 Why Will Early Communication with the Local Air Quality Department Be Helpful? Air quality departments often provide pre-application assistance to help you get started Guidance on conducting necessary air dispersion modeling to correctly site and size the biomass system s exhaust stack Understand how the permitting process works (steps, timelines, fees) Gain better knowledge of state implementation plans and federal regulations from local experts Understanding regulations will help with issuing performance specifications when selecting equipment vendors

9 What are your financing options? State Grants (NYSERDA, VT-CEDF, Connecticut CEF, etc.) Federal Grants (USDA, DOE, USFS, etc.) Loans (Private & Public, Revolving Loan Funds) Bonds (Clean Energy Bonds, School Bonds, Municipal Bonds, etc.) ESCOs Tax Incentives

10 Universe of Technology Options for Biomass Energy BIOMASS FEEDSTOCKS TECHNOLOGY PATHWAYS INTERMITTENT PRODUCT USES OF ENERGY Forest Residues Thermal Thermal Heating Combustion Steam Agriculture Gasification Hot Water Cooling Resources Pyrolysis Chilled Water Energy Crops Steam Reforming Hot Combustion gases Lighting Municipal Waste Biological Anaerobic Digestion Liquid Bio-oil Motive Power Animal Manure Fermentation Bio-diesel Cellulosic Ethanol Transportation Physio-chemical Hydrolysis Transesterification Gas Syn. Gas Biogas Electricity Hydrogen

11 Universe of Technology Options for Biomass Heating Systems BIOMASS FEEDSTOCKS FEEDSTOCK STORAGE FEEDSTOCK HANDLING HEAT DISTRIBUTION Woodchips (hardwood, softwood, bole, whole-tree chips) Pellets (Grass, sawdust, agricultural residues) Below-grade bin Above-grade (on slab storage) Silo (inside, under a roof, or outside) Fully -automated Semi -automated Manual Hot water Steam Hot air Cordwood Agricultural crops (corn)

12 Components of Fuel Sources Fuel Transport and Delivery Fuel Storage at Facility Fuel Handling Combustion System

13 Modern Biomass Heating Systems Increased efficiency Lower emissions Lower time requirements Reliable operation Automated fuel handling Hot water boiler and heat distribution Used for heating, cooling, and co-generation

14 CHP Technology Description Recommended for systems with a year-round heat load. Steam CHP Biomass Gas Turbine Gasifier Organic Rankine Cycle System Has highest efficiency when sized to meet the thermal load.

15 District Heating Concept

16 Customer Energy Transfer Station

17 Wood Fuel Comparison: Best Applications for Woodchips Larger facilities/districts, generally over 2.0 MMBtu/hour systems Where fuel cost savings are very important Where there s room for: new boiler, fuel storage bin, tractor trailer access In/near forested areas with active forest products industry, usually within 50-mile radius Can acquire a wider range of fuel qualities

18 Wood Fuel Comparison: Best Applications for Wood Pellets Residential use (stoves & central heat) Smaller commercial facilities, less than 2.0 MMBtu/hour Locations with limited space Sites not far from a pellet plant

19 Wood Fuel Comparison: Best Applications for Cordwood Facilities with small to moderate heat loads Where fuel cost savings are very important Where facility managers can handle the increased labor time In/near forested areas with active forest products industry Where high quality fuel is not often available, or facility has access to scrap wood, agricultural feedstocks, etc.

20 Sizing a Biomass System Building Size (square feet) 25,000 50,000 50, ,000 > 100,000 System Size (likely) MMBtu/hr MMBtu/hr MMBtu/hr Fuel Type (likely) Pellets Pellets or Woodchips Woodchips System Type (likely) Fully automatic Fully or Semi-automatic Fully automatic Storage (likely) Outdoor silo Outdoor silo or slab-on-grade Below-grade concrete bin

21 Site and Economic Assessment Existing site plans and engineered drawings, if available Heating requirements on hourly, weekly, monthly, yearly basis as available, and consumption of heating fuel Present heating system details Present fuel used with average annual fuel price Expansion plans Site-specific restrictions which may affect the integration of a new heating system DELIVERY TRUCK SCHEMATIC

22 Ways to Analyze Cost Effectiveness All about: Amount of savings generated At what project cost Methods: Simple payback Cash flow analysis Life cycle cost analysis

23 Life Cycle Cost Analysis A tool that compares the cost of owning and operating the existing heating system to the cost of purchasing, installing, and operating a new wood pellet heating system. Set assumptions Collect data Define the project and its costs Equipment Construction Professionals fees and permits Annual fuel costs

24 Case Studies INSTITUTIONAL WOODCHIP DISTRICT HEATING SYSTEM Crotched Mountain Rehabilitation Center GREENFIELD, NEW HAMPSHIRE, UNITED STATES Heating Capacity (output): One 1.2 MW (4 MMBtu/hr) boiler and one 2.3 MW 8 MMBtu/hr) boiler Emissions Reduction and Combustion Control Equipment: Baghouse, cyclone Year Installed: 2007 Thermal Output: Hot water

25 Case Studies GOVERNMENT FACILITY WOODCHIP HEATING SYSTEM Quabbin Administration Building BELCHERTOWN, MASSACHUSETTS, UNITED STATES Heating Capacity (output): 587 kw (2 MMBtu/hr) Emissions Reduction and Combustion Control Equipment: Multi-cyclone Annual Woodchip Use: 350 tons Year Installed: 2008

26 Contact Information Kamalesh Doshi Senior Program Director (802) ext. 126 Biomass Energy Resource Center 43 State Street, Montpelier, VT