Transcript Renewable Energy Generation: About Telogia Power, LLC

Renewable Energy Generation
About Telogia Power, LLC
• Designed and constructed by the General Electric Company at
a cost of $12,000,000 the 14 megawatt Timber Energy
Resources, Inc. renewable energy plant was the first
Qualifying Facility of its type operated in Florida.
Supply all of the training (off-line and on-line)
• Over its operating life the Telogia asset has changed hands
seven (7) times and is now owned and operated by CQ Inc. of
Blairsville, Pennsylvania.
• Single boiler / Single Turbine – Generator alignment with Best
Available Air Control Technology comprising a Cyclone
Separator in combination with an Electrostatic Precipitator.
The plant is in substantial compliance and on the emissions
side of the equation operates at between 33% and 50% of the
regulatory threshold.
About Telogia Power, LLC
(cont’d.)
• Base biomass fuels include bark, green chips, sander dust, sawdust,
hogged fuel from land clearing acitivities, yard waste and peanut
hulls. Alternate fuels comprise mixed non-recyclable fibers, suitable
manufacutring residues, confidential documents and off-specification
commodity wastes. Alternate fuels are shredded and then densified
into a cube at a dedicated Paper Processing Facility preparatory to
combustion with the biomass fuels.
• Telogia Power, LLC purchases all of its biomass fuels (for between
$3.00 and $12.00 per ton depending on quality) and is paid to destroy
alternate fuels at tipping fees ranging from $5.00 to $15.00 per ton.
Overall fuel consumption averages approximately 200,000 tons
annually.
• The current mix of materials combusted for renewable energy
generation at Telogia comprises 90% biomass fuel and 10% alternate
materials
What it takes to make power
• CASE 1 – With the present mix of fuels comprising bark, green chips,
hogged fuel, yard wastes, sander dust, sawdust and non-recyclable
fibers it takes 2.2 tons of fuel to produce One (1) megawatt hour of
electrical energy.
• CASE 2 – By eliminating the use of lower-end fuels such as yard
wastes and hogged fuels (from land clearing activities etc.) fuels
consumption drops from 2.2 tons per megawatt to 1.75 tons per
megawatt hour produced.
• Average fuel costs in CASE 1 – are approximately $8.50 per ton
meaning that fuel costs per megawatt hour produced are $18.70.
• Average fuel cost in CASE 2 – are approximately $12.00 per ton
meaning that fuel costs per megawatt hour produced are $21.00.
What it takes to make power
(cont’d.)
• On the average, annual fuel costs, labor, salaries, along with fixed and
variable expenses for the Telogia plant totals approximately
$3,860,000 which equates to a production cost of $41.06 per megawatt
hour.
• Absent any Federal Production Credits, Telogia Power, LLC sells its
net electrical generation for an all-in price of $43.00 per megawatt
hour for total annual revenues of approximately $4,000,000 meaning
that the only way to increase profit is to reduce fuel costs via tipping
fees / avoided costs from accepting alternate fuels at Telogia.
• Managing the “Business of the Operation” in the current market
environment has become of equal importance to administrating the
“Operation of the Business.”
What are the Pros and Cons
• There has been no meaningful development of biomass-to-energy
facilities in Florida over the last decade due largely to the absence of
Federal and State incentives and enabling legislation that would
serve to sponsor what presently amounts to the “tight spark gap”
business opportunity. In short, some pioneers left but very few new
settlers.
• Most recent tax and production credit legislation is seen as an
incentive for developing new biomass-to-energy capacity and not
necessarily to sustain existing generation facilities.
• Combusting a carbon neutral fuel in preference over conventional
fossil fuels absolutely reduces greenhouse emissions.
What are the Pros and Cons
(cont’d.)
• Biomass fuel utilization makes good sense, whereas landfilling a fuel
source does not. Estimates are that as much as 75% of the available
renewable fuel sources in Florida are actually never used in
renewable energy applications.
• Monitor and control new development. Too great a concentration of
new facilities could serve to outpace the fuel shed availability ina
given region, thus driving production prices up as the “fuel
harvesting” radius increases.
What needs to be done for the common good
• Approve “bankable” Power Purchase Agreements. Green Energy can
cost more to produce therefore Utilities should receive regulatory
compensation that enables them to pay more to acquire it if necessary.
Can the Florida Public Service Commission be the facilitator that
levels the playing field as it applies to environmental benefit versus
public benefit?
• Encourage greater flexibility and cooperation at the regulatory level to
stimulate industry growth. Most permits and/or petitions still take
years to acquire in Florida. The aim is not to circumvent the issues,
more to view the biomass-to-energy industry as part of the solution,
not part of the problem.
What needs to be done for the cmmon good
(cont’d.)
• Legislate the controlled supplemental combustion of select Floridagenerated treated wood wastes at Florida biomass-to-energy facilities
rather than sending to Alabama and the Carolinas for disposal.
Available tipping fees would significantly reduce overall fuel costs at
participating facilities, while in parallel handling a Florida waste
management problem in Florida.
• Sponsor legislation to place meaningful subsidies behind the United
States Forestry Service’s Clean Forests Program. Apalachicola, Ocala
and Osceola National Forests are named in the program but due to the
expense involved do not participate in generating any renewable fuels
for use at this juncture.
What needs to be done for the common good
(cont’d.)
• Sponsor “real time” research and development and subsidize
energy crop farming to stabilize biomass fuel availability.
Most renewable energy facilities are at the mercy of the
economy. Slow production or demand at the Pulp and Paper
Mill is often the precursor to limited fuel availability at the
power plant as Chip Mills and Sawmills likewise slow or halt
production. Lets up the ante now!
Contact Information
David E. (Ted) Hill
President
CQ Specialty Materials Group
12063 Cranefoot Court
Jacksonville, Florida 32223
Tel: (904) 292-9980
Cell: (904) 866-1570
E Mail: [email protected]