Bioenergy in California

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Bioenergy in California Rob Williams, Stephen Kaffka California Biomass Collaborative and Department of Biological and Agricultural Engineering, UC Davis; Department of Plant Sciences, UC Davis & California Biomass Collaborative Policy Institute for Energy, Environment and the Economy June 7, 2013

WHAT IS BIOMASS? Strict definition: living (or recently living) plant or animal material General Federal statute (Energy Policy Act of 2005): Any organic matter that is available on a renewable or recurring basis, including agricultural crops and trees, wood and wood wastes and residues, plants (including aquatic plants), grasses, residues, fibers, and animal wastes, municipal wastes, and other waste materials. Excludes oldgrowth timber. Many revisions since, but generally similar (may exclude material from public lands)

DEFINITIONS Anaerobic Digestion (AD) A process by which biomass is sealed in an airtight vessel, which promotes microbial production of methanerich biogas. Billion Cubic Feet (BCF) Measurement of natural gas or digester gas, when used for natural gas, roughly enough energy to supply 10,000 homes for over one year. Landfill Gas (LFG) Methane-rich gas produced by naturally anaerobic conditions deep in a landfill. Wastewater Treatment Plant (WWTP) Often use anaerobic digesters to help remove organic matter from water, the biogas can be used for heat or power. Combined Heat and Power (CHP) A system which generates electricity and useable heat.

California Biomass Resources Are Diverse Agriculture Forestry Potential Feedstock Gross Biomass Urban Total + 137 BCF/year landfill and digester gas 0 20 40 60 80 100 Biomass (Million BDT/year) Landfill Gas, 61 TBtu, 11% Waste-water Treatment, 10 TBtu, 2% Agriculture, 137 TBtu, 24% Urban, 128 TBtu, 22% Potential Feedstock Energy in Biomass 507 Trillion Btu/year Forestry, 242 TBtu, 41% Jenkins et al. (2006) A roadmap for the development of biomass in California

OUR SPEAKERS Rob Williams, P.E. Development Engineer, Bio. & Agr. Engineering Member of Technical Staff, Biomass Collaborative Extensive experience with conversion technologies and bioenergy systems. Stephen Kaffka PhD Cornell University MS & PhD in Agronomy Extension Specialist Department of Plant Sciences Director of Biomass Collaborative Extensive experience with potential energy crops

Bioenergy in California Part 2: How is biomass transformed to energy and bio-products? What state policies affect/regulate the use of biomass in California? What are the prospects for increased use of biomass in California? Policy Institute for Energy, Environment and the Economy June 7, 2013 Part 1: May 17, 2013. What is biomass? How much is there in California? Is it being used? Could more be used? How will this come about?

Themes/Questions for Part 2: Biomass Energy in California How is biomass transformed to energy and bio-products? What state policies affect/regulate the use of biomass in California? What are the prospects for increased use of biomass in California?

WHAT IS BIOENERGY Heat Biopower (electricity) Biofuels Solid Fuels Wood pellets or cubes for heating or cofiring Torrefied biomass (for cofiring at coal facilities) Char/charcoal for cooking Gaseous Fuels biogas, biomethane, compressed biomethane (like CNG), Renewable synthetic natural gas (RSNG) Liquid Fuels Ethanol (conventional starch/sugar derived, or from lignocellulosic processes) Methanol Butanol Biodiesel (from vegetable or waste oils. Specifically: fatty-acid-methyl-ester (FAME)) Renewable diesel and gasoline (e.g., drop-in fuels or hydrocarbons, biomass-toliquid (BTL), Fischer Tropsch liquids, etc.)

Principal Biomass Conversion Pathways Feedstock Production Collection Processing Storage Transportation Conversion Thermochemical Conversion Combustion Gasification Pyrolysis Bioconversion Anaerobic/Fermentation Aerobic Processing Biophotolysis Physicochemical Heat/Pressure/Catalysts Hydrotreating/Cracking/Refining Products Energy Heat Electricity Fuels Solids Liquids Gases Products Chemicals Materials

Thermal Pathways (Combustion, Gasification, Pyrolysis) Characterized by high temperature and high rates of conversion, Ability to convert essentially all of the biomass feedstock (cellulose, hemicellulose & lignin) Dryer feedstocks preferred

Biochemical Pathways (Aerobic [i.e., composting], Anaerobic Digestion, Anaerobic Fermentation [ethanol]) Characterized by lower temperature and lower rates, Starch and sugar feedstocks (corn, grains, sugar beets, sugar cane ) : Conventional fuel ethanol Lignocellulosic biomass (Woody biomass, Straws, stovers, non food materials) : Advanced fuel ethanol / biofuel pathways The lignin portion of lignocellulosic biomass is not available to bioconversion (the lignin energy can be recovered by thermal means) Food and green wastes, fats, oils, greases Generally higher moisture materials preferred (or moisture is added) http://www.layne.com

Basic Thermochemical Pathways Combustion Heat Boiler Steam, Heat Electricity or CHP

Basic Thermochemical Pathways Combustion Heat Boiler Steam, Heat Engine Gasification Fuel Gas Gas Turbine Electricity or CHP With appropriate gas cleaning and conditioning Fuel Cell Syngas (CO & H 2 ) Liquid or Gaseous Fuels

Basic Thermochemical Pathways Combustion Heat Boiler Steam, Heat Engine Gasification Fuel Gas Gas Turbine Electricity or CHP With appropriate gas cleaning and conditioning Fuel Cell Syngas Liquid or Gaseous Fuels Pyrolysis Char (biochar) Bio-oil Torrified Biomass Transport To Soils? To combustion or gasification Pyrolysis gas Upgrade to liquid fuel

Basic Thermochemical Pathways Combustion Heat Boiler Steam, Heat Engine Gasification Fuel Gas Gas Turbine Electricity or CHP With appropriate gas cleaning and conditioning Fuel Cell Syngas Liquid or Gaseous Fuels Pyrolysis Char (biochar) Bio-oil Torrified Biomass Transport To Soils? To combustion or gasification Pyrolysis gas Upgrade to liquid fuel

Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Sugarbeet Sugarcane Plant oils, waste fats/oils, (Algae, not yet commercial) Municipal / Industrial higher moisture: food and processor residues, manures, green and mixed waste, landfill and digester gas, etc. Lignocellulosic matls. Stover, cobs, straws, etc. wood residue & Energy crops: switchgrass etc., short rotation trees, etc. Starch & Sugar Fermentation (biochemical) Transesterification (Physicochemical) Anaerobic Digestion Cellulosic Ethanol: Hydrolysis (Enzymatic/Acid) followed by Sugar Fermentation Gasification (with post processing) Pyrolysis (Bio-Oils) Hydrotreatment/Cracking (i.e., Petroleum Refinery Operations) Ethanol (Butanol also possible) Conventional Biodiesel (fatty-acid alkyl-esters) Compressed Biomethane (renewable natural gas) Hydrogen Fischer-Tropsch Liquids (Hydrocarbons:Diesel/ Gasoline) Methanol or mixed alcohols Synthetic Natural Gas (compressed) Diesel and Gasoline

Conventional Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Sugarcane Sugarbeet Starch & Sugar Fermentation (biochemical) Ethanol (Butanol also possible) Starch and sugar fermentation to ethanol is the conventional (and currently commercial) route.

Conventional Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Sugarbeet Sugarcane Plant oils, waste fats/oils, (Algal oil, not yet commercial) Starch & Sugar Fermentation (biochemical) Transesterification (Physicochemical) Ethanol (Butanol also possible) Conventional Biodiesel (fatty-acid alkyl-esters, aka FAME)

Conventional Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Sugarbeet Sugarcane Plant oils, waste fats/oils, (Algae, not yet commercial) Municipal / Industrial higher moisture: food and processor residues, manures, green and mixed waste, landfill and digester gas, etc. Starch & Sugar Fermentation (biochemical) Transesterification (Physicochemical) Anaerobic Digestion (landfills, waste water treatment, engineered digesters) Gas upgrading (remove the CO 2 ) Ethanol (Butanol also possible) Conventional Biodiesel (fatty-acid alkyl-esters) Compressed Biomethane (renewable natural gas)

Advanced * Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Sugarbeet Sugarcane Plant oils, waste fats/oils, (Algae, not yet commercial) Municipal / Industrial higher moisture: food and processor residues, green and mixed waste, landfill and digester gas, etc. Lignocellulosic matls. Stover, cobs, straws, etc. wood residue & Energy crops: switchgrass etc., short rotation trees, etc. Starch & Sugar Fermentation (biochemical) Transesterification (Physicochemical) Anaerobic Digestion Cellulosic Ethanol: Hydrolysis (Enzymatic/Acid) followed by Sugar Fermentation Ethanol (Butanol also possible) Conventional Biodiesel (fatty-acid alkyl-esters) Compressed Biomethane (renewable natural gas) *Sometimes called second and third generation biofuels Second Generation = derived from lignocellulosic feedstocks Third Generation often refers to algae feedstocks

Advanced * Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Starch & Sugar Fermentation (biochemical) Ethanol (Butanol also possible) Sugarbeet Sugarcane v Plant oils, waste fats/oils, (Algae, not yet commercial) Municipal / Industrial higher moisture: food and processor residues, green and mixed v waste, landfill and digester gas, etc. v Transesterification (Physicochemical) Anaerobic Digestion v Conventional Biodiesel (fatty-acid alkyl-esters) Compressed Biomethane (renewable natural gas) v Hydrogen Lignocellulosic matls. Stover, cobs, straws, etc. wood residue & Energy crops: switchgrass etc., short rotation trees, etc. Gasification (with post processing) Syngas (CO & H 2 ) Fischer-Tropsch Liquids (Hydrocarbons:Diesel/ Gasoline) Methanol or mixed alcohols Synthetic Natural Gas (compressed)

Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. v Sugarbeet Sugarcane Plant oils, waste fats/oils, (Algae, not yet commercial) Starch & Sugar Fermentation (biochemical) Transesterification (Physicochemical) Ethanol (Butanol also possible) Conventional Biodiesel (fatty-acid alkyl-esters) Municipal / Industrial higher moisture: food and processor residues, green and mixed v waste, landfill and digester gas, etc. v v Anaerobic Digestion Compressed Biomethane (renewable natural gas) v Hydrogen Lignocellulosic matls. Stover, cobs, straws, etc. wood residue & Energy crops: switchgrass etc., short rotation trees, etc. Gasification (with post processing) Pyrolysis (Bio-Oils) Syngas (CO & H 2 ) Fischer-Tropsch Liquids (Hydrocarbons:Diesel/ Gasoline) Methanol or mixed alcohols Synthetic Natural Gas (compressed) Hydrotreatment/Cracking (i.e., Petroleum Refinery Operations) Diesel and Gasoline (Physicochemical)

Biofuel Pathways Feedstocks Conversion Fuel Product Grains: Corn, Wheat, Rice, etc. Sugarbeet Sugarcane Plant oils, waste fats/oils, (Algae, not yet commercial) Municipal / Industrial higher moisture: food and processor residues, manures, green and mixed waste, landfill and digester gas, etc. Lignocellulosic matls. Stover, cobs, straws, etc. wood residue & Energy crops: switchgrass etc., short rotation trees, etc. Starch & Sugar Fermentation (biochemical) Transesterification (Physicochemical) Anaerobic Digestion Cellulosic Ethanol: Hydrolysis (Enzymatic/Acid) followed by Sugar Fermentation Gasification (with post processing) Pyrolysis (Bio-Oils) Hydrotreatment/Cracking (i.e., Petroleum Refinery Operations) Ethanol (Butanol also possible) Conventional Biodiesel (fatty-acid alkyl-esters) Compressed Biomethane (renewable natural gas) Hydrogen Fischer-Tropsch Liquids (Hydrocarbons:Diesel/ Gasoline) Methanol or mixed alcohols Synthetic Natural Gas (compressed) Diesel and Gasoline

Themes/Questions for Part 2: Biomass Energy in California How is biomass transformed to energy and bio-products? What state policies affect/regulate the use of biomass in California? What are the prospects for increased use of biomass in California?

Policies related Task to 2: Bioenergy Biomass in California Governor Brown s Clean Energy Jobs Plan 20 GW new renewable generation by 2020 (12 GW distr. gen., 8 GW large scale 20MW) AB 32 (Global Warming Solutions Act) Generally CO 2 emissions from biomass energy and fuels are exempt from cap and trade reporting Scoping Plan: Waste Management Sector Workshop on June 18, 2013 (CalEPA building) ( http://www.calrecycle.ca.gov/actions/publicnoticedetail.aspx?id=986&aiid=900 ) Low Carbon Fuel Standard (LCFS) Reduce carbon intensity of transportation fuel by 10% by 2020 Biofuels/bioenergy could play important part

120 Relative Greenhouse Gas Emissions of Alt. Fuels compared to conventional gasoline/diesel GHG Emissions (% of petroleum fuel) 100 80 60 40 20 0 Fuel Land-use change 150-200% Coal to liquids -20 Petroleum Fuel Midwest Corn EtOH CA drymill EtOH, wet DGS Brazil Cane EtOH Cellulosic EtOH (farmed trees) Soy Biodiesel Biodiesel (tallow) Biodiesel (used oil) BTL - FischerTropsch (forest waste) CTL- Fischer Tropsch (Coal CNG LFG CNG Biomethane (dairy) AD of Food&Green Ethanol Fuels Biodiesel/Renewable Diesel Natural Gas / Biomethane California Air Resources Board LCFS various reports- see: http://www.arb.ca.gov/fuels/lcfs/lcfs.htm WELL-TO-WHEELS ANALYSIS OF FUTURE AUTOMOTIVE FUELS AND POWERTRAINS IN THE EUROPEAN CONTEXT http://ies.jrc.cec.eu.int/media/scripts/getfile.php?file=fileadmin/h04/well_to_wheels/wtt/wtt_report_030506.pdf

Policies related Task to 2: Bioenergy Biomass in California 2012 Bioenergy Action Plan Goals and recommendations of a state agency working group Electric Program Investment Charge (EPIC) -20% set aside for bioenergy in technology demonstration area SB 1122 (Rubio, 2012) CPUC to direct electrical corporations (IOUs) to procure 250 MW (cumulative) of new small biopower ( 3 MW) in a separate IOU feed-in tariff program. Allocated by resource type: 110 MW for biogas from wastewater treatment, municipal organic waste diversion, food processing, and codigestion 90 MW for dairy and other agricultural bioenergy 50 MW for bioenergy using byproducts of sustainable forest management CPUC workshop May 2 reviewed consultant report on small scale bioenergy resource potential and costs

Policies related Task to 2: Bioenergy Biomass in California Biomethane Related: AB 2196 (Chesbro, 2012) Clarifies RPS eligibility for biomethane delivered by pipeline and essentially re-certifies pipeline biomethane as RPS eligible AB 1900 (Gatto, 2012) Directs state agencies to develop health and safety standards and test protocols for biomethane injection into pipelines. Addresses pipeline access issue for landfill gas which is currently not allowed by major pipeline operators (in California) Requires CPUC to adopt standards by Dec 31, 2013 for biomethane injected into the common carrier pipeline that: (1) protects public health (2) ensures pipeline integrity and safety CPUC Rulemaking 13-02-008 ARB proposed health based standards for constituents of concern in biomethane May 15, 2013 ARB also provided recommendations on monitoring, testing, reporting, and recordkeeping requirement

Policies related Task to 2: Biopower Biomass in California Solid Waste / MSW: AB 323 (Chesbro) : Phase-out diversion credit for greenwaste used as alternate daily cover (ADC) by 2020 Appropriations suspense file 5/24/2013 AB 1126 (Gordon) : Defines MSW Conversion as beneficial use of low moisture waste (i.e., < 25% moisture ) where it supplements or replaces fossil fuel. Stipulates no diversion credit for material converted Is silent on RPS eligibility Caps facility size at 500 tons per day (landfills don t have this universal size restriction) MSW Conversion excluded from Recycling Definition Not clear if fossil fuel supplementation/replacement must occur at the facility Does displacement of fossil electricity or fuels elsewhere count (i.e., fuel product that displaces petroleum fuel)? Can the material be dried to 25% using waste process heat?? Passed out of Assembly 78-0

Themes/Questions for Part 2: Biomass Energy in California How is biomass transformed to energy and bio-products? What state policies affect/regulate the use of biomass in California? What are the prospects for increased use of biomass in California?

What are the prospects for increased use of biomass in California? Large potential Biopower is relatively expensive Existing solid fuel bioenergy fleet operating on very thin margins Small biopower Emissions issues for many biogas systems in South Coast and San Joaquin Valley Air Districts There is concern that the 250 MW biopower IOU feed-in tariff program (SB 1122) won t yield economic prices and will be undersubscribed Many of the targeted small biopower systems not yet commercial in California Biofuels Conventional in-state ethanol facilities are affected by national/international economic trends and federal as well as state policies Advanced biofuels proposed for California are still developmental, but several are promising and could develop in the near term..

Societal Benefits / Ancillary Services from Bioenergy There are perceived societal benefits or services that accrue from use of biomass residues and possibly purpose grown crops for energy and fuels Ecosystem benefits Reduced forest fire severity and improved forest health Improved air and water quality Possibly reduced fire suppression costs Diverts material from landfill Rural jobs and other economic development Locally sourced or distributed renewable energy

Societal Benefits / Ancillary Services from Bioenergy Can these (perceived) societal benefits be monetized to improve bioenergy economics? What are they worth? Difficult to determine Not all agree they exist (or could be a cost?) If a value can be determined, who should pay, who can pay? Energy users (rate payers, vehicle owners)? Taxpayers? Segments of society that directly benefit? Other?

Ongoing Issue with Solid Waste Policy Transformation (solid waste combustion with energy recovery): Three facilities in the state circa 1980 s Limited diversion credit No RPS eligibility for the biogenic fraction* No RPS eligibility for a new transformation facility Effectively the same as landfilling per policy Must use gasification to be RPS eligible Problematic statutory definition for gasification No air emissions, including greenhouse gases Disagreement on interpretation of definition for real projects developers have withdrawn from California Policy basis for proscribing technology (rather than performance standards) is not clear (possibly out of date) Highest and Best Use of MSW residuals equates energy recovery with landfilling in California * The Covanta-Stanislaus facility has RPS status per statute (even for fossil components of feedstock). The facilities in Long Beach and Commerce do not.

California has a large bioenergy potential Currently: 5.8 TWh of in-state biopower production (17% of in-state renewable power and 2% of full California power mix [~290 GWh/y]) 1.5 billion gallons per year fuel ethanol consumed in California (10% of gasoline - - E10) Approximately 170 million gallons/year instate ethanol production (11% of demand) ~ 26 million gallons/year of biodiesel currently produced in state (Midwest soy and waste oils) Annual Potential (Million BDT/year) 50 45 40 35 30 25 20 15 10 5 0 Unused, Loss Margin, and Bioproducts 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Year Biofuels Biomethane Electricity/CHP Resource Potential Hydrogen Annual Energy (Trillion Btu/year) 500 450 400 350 300 250 200 150 100 50 0 Biofuels 1.6 BGY Biomethane Potential Heat from CHP Electricity Hydrogen 91 BCF/y 1.3 M tons/y 2450 MW 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Year One Energy Scenario Jenkins et al. (2006) A roadmap for the development of biomass in California

Path Forward Better economics Monetize the societal benefits (if any) Would help Biopower LCFS is one way this adds value to biofuels Technology development Congruent policy

For more information: California Biomass Collaborative Biomass.ucdavis.edu UC Davis Policy Institute for Energy, Environment and the Economy Policyinstitute.ucdavis.edu Rob Williams rbwilliams@ucdavis.edu Stephen Kaffka srkaffka@ucdavis.edu Colin Murphy cwmurphy@ucdavis.edu