Transcript Document
Biomass Energy and its
future in Wisconsin
David Donovan
Manager, Regulatory Policy
“When I look ahead to the future of my
industry, I see electric production that will
be highly efficient, harness diverse
resources, and be nearly emission-free. I
believe this future is possible. But we need
to support both smart policy and new
technology today to make it happen
tomorrow.”
Dick Kelly
Xcel Energy President and CEO
November 2006
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Northern States
Power CompanyMinnesota
Northern States
Power CompanyWisconsin
Public Service
Company of
Colorado
Southwestern
Public Service
Xcel Energy
Electric Customers
Gas Customers
3.3 million
1.8 million
NSP-Wisconsin
Electric Customers
Gas Customers
245,000
104,000
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A Leader in Renewables
#1 Wind Power Provider in U.S.
#5 Solar Power Provider in U.S.
#1 Renewables Provider in Wisconsin
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A Leader in Renewables
14% renewables (2008)
19 hydroelectric plants
2 biomass plants
Large amounts of
purchased wind
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Bay Front History
Constructed in 1916 by Ashland Light & Power
and Street Railway Company
Improvements increased to five boilers and six
turbines for a capacity of 92 MW
In 1979, first investor-owned, electric utility
plant in the nation to burn waste wood
In 1986, began $15 million life extension
resulting in current configuration of three
boilers and turbines with capacity of 74 MW
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Bay Front Operations
35 full-time employees
Wood purchases of $5.0 million in 2008
$20 million+ local economic impact
Generates an average of 325,000 MWh/year
Helps meet Wisconsin’s RPS
Beneficial use of fly ash to construct “pad
sites” to aid local farmers, ranchers, others
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Fuels at Bay Front
Waste wood
Natural gas
Coal
Shredded tires
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Bay Front Operations
Installed nitrous oxide (NOx) reduction system
to meet Clean Air Interstate Rules
Reissuance of Clean Air Mercury Rule
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Bay Front Gasification Project
Need for long-term plan for Bay Front
Financial and environmental considerations
Convert remaining coal-fired boiler to use
biomass gasification technology
Project allows plant to use 100% biomass
Approx. $58 million
Adds 200,00-250,000 tons of biomass per year
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Biomass Gasification Process
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Major Environmental Improvements
NOx: 60%
SO2:
80%
Particulate Matter:
80%
Avoids 100,000 tons coal per year
Avoids 200,000 tons CO2 emissions per year
Reduction in mercury emissions
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Regulatory Process
Feb. 2009 – Filed Application with PSCW
Certificate of Authority vs. CPCN
March-April 2009 – MPUC, NDPSC applications
Spring - Summer 2009 – Environmental
Assessment
Fall 2009 – Public hearings
Fall or Winter 2009 – PSCW decision
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Review Process
Impact on electric rates
Emissions reductions
Construction schedule
Regulatory approval process
Fuel availability
WNDR sustainable biomass harvest guidelines
Biomass fuel flexibility, energy plantations,
grower cooperatives
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Customer and Community Impacts
Eco-municipality goals of Chequamegon Bay
Retain fuel costs in Wisconsin
Support local economic development
Achieve carbon management goals
Meet renewable portfolio standards
Support local agricultural industry
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