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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