Transcript Development of Biomass Energy Projects

Development of Biomass
Electricity Projects
William S. Bulpitt, P.E.
Sterling Energy Assets
October 7, 2010
AWMA Conference
Overview of Sterling Planet, Inc.
• We are the largest marketer of renewable energy in North America
– winning the US Department of Energy Renewable Energy
Marketer of the Year award in both 2007 and 2008
• We have a strong, experienced leadership team with many decades
of electric utility and entrepreneurial experience
• We work with electricity generators – helping to qualify the
facilities to sell RECs, and buying historical RECs and future
RECs to remarket to our customers.
• We have a broad client base that includes Fortune 500 companies,
universities, government agencies, and individuals
• We are active participants in nearly every mandated and voluntary
market for RECs, Carbon credits, and energy efficiency credits
(a.k.a. White Tags)
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Sterling Energy Assets, Inc.
• Develops and acquires renewable generation facilities supported
by power purchase agreements with utilities and/or steam sales
to industrial facilities
• Targets opportunities to:
– Acquire and convert fossil generation to green generation
– Develop green field biomass power projects
– Develop industrial cogeneration projects
• Leverages knowledge, relationships and deal flow generated by
core carbon credit and REC marketing business
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U.S. Electricity Generation by
Fuel
Source: EIA
INTEREST IN RENEWABLES
BY ELECTRIC UTILITIES
Type
Source: Black & Veatch
Renewable Portfolio Standards
www.dsireusa.org / April 2009
WA: 15% by 2020*
MT: 15% by 2015
(Xcel: 30% by 2020)
MI: 10% + 1,100 MW
ND: 10% by 2015
OR: 25% by 2025 (large utilities)
VT: (1) RE meets any increase
in retail sales by 2012;
(2) 20% RE & CHP by 2017
MN: 25% by 2025
SD: 10% by 2015
WI: Varies by utility;
10% by 2015 goal
☼ NV: 20% by 2015*
IA: 105 MW
UT: 20% by 2025*
CA: 20% by 2010
☼ CO: 20% by 2020
(IOUs)
10% by 2020 (co-ops & large munis)*
☼ AZ: 15% by 2025
(Class I Renewables)
☼ NY: 24% by 2013
RI: 16% by 2020
CT: 23% by 2020
☼ PA: 18% by 2020†
VA: 15% by 2025*
☼ NJ: 22.5% by 2021
☼ MD: 20% by 2022
☼ MO: 15% by 2021
☼ DE: 20% by 2019*
☼ NC: 12.5% by 2021
(IOUs)
10% by 2018 (co-ops & munis)
☼ NM: 20% by 2020 (IOUs)
☼ NH: 23.8% by 2025
+ 1% annual increase
☼ OH: 25% by 2025†
IL: 25% by 2025
New RE: 10% by 2017
☼ MA: 15% by 2020
by 2015*
5% - 10% by 2025 (smaller utilities)
ME: 30% by 2000
☼ DC: 20% by 2020
10% by 2020 (co-ops)
TX: 5,880 MW by 2015
HI: 20% by 2020
28 states
& DC
have an RPS
State renewable portfolio standard
State renewable portfolio goal
Solar water heating eligible
☼ Minimum solar or customer-sited requirement
*†
5 states have goals
Extra credit for solar or customer-sited renewables
Includes separate tier of non-renewable alternative resources
RECENT POWER PLANT
COST DATA
Renewables
Conventional Technology
Wind
Solar
Trough
Biomass
(wood
waste)
Geothermal
Natural
Gas
Combined
Cycle
Pulverized
Coal
IGCC
PRB
Nuclear
Plant Capital
Cost ($/kW)
1,700
4,000
2,500
3,500
700
2,400
3,000
4,000
Capacity
Factor
33%
25%
85%
90%
65%
85%
80%
85%
-
-
-
-
7,000
8,700
9,400
-
71
280
97
76
68
58
65
89
Technology
Specifications
Heat Rate
(MM
Btu/MWh)
Total Levelized
Costs ($/MWh)
Source: IEA
•
Mills And
• Power Plants
• In Georgia
Source:
Georgia Forestry
Commission
Southern Pine Resource
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Agricultural wood
resource underutilized
18+ million green tons
unused southern pine available per year
(sustainable)
– ~730 million gallons
ethanol equivalent
– ~20% of GA’s gasoline use
Source: Georgia Forestry Commission
FORESTRY BIOMASS - USA
Source: USDA
TOTAL BIOMASS
AVAILABILITY - USA
Source: USDA
Project Overview – Project A
Southeastern U.S.
• Existing fully integrated Pulp & Paper Mill
• Mill Vintage – 1951
• Motivation
– Aging power plant facilities
– State Renewable Energy Standards
– Adequate Wood Supply
Project A (Cont’d)
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Steam Supply to Mill – 350,000 lb/hr
Electricity to offtaker – 46.5 MW @ 115 KV
Electrical & Thermal RECs to Offtaker
Operations – Existing Mill Personnel
Wood Supply – managed by Mill
Permitting – New stand alone permit
Financing – Equity and Institution Loans
Stand Alone Capability
Source: Babcock & Wilcox
Project Overview – Project B
• Existing Integrated Pulp & Paper Mill
• Mill Vintage – 1929
• Motivation
– Need for Power Plant improvements
– State Renewable Energy Standards
– Adequate local wood supply
Project B (Cont’d)
• Steam Production – 250,000 lb/hr
• Turbine/Generator addition – 24 MW
• Upgraded emission control equipment
• Operations by Mill Personnel
• Sale of RECs to Offtaker
Biomass Project Issues
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Renewable Energy Standards
Power Purchase Agreements
Perception of Biomass
Fuel Risks
Biomass Definitions
• Thank You
• [email protected]
• 678-325-7106