Transcript Realizing Plants’ Full Potential: Electricity from Biomass By Becky Schanz and Megan Garvey

Realizing Plants’ Full Potential:
Electricity from Biomass
By Becky Schanz and
Megan Garvey
Chicago-Kent College of Law
Energy Law Presentation*
[email protected]
[email protected]
Overview of Presentation




Introduction and Background
Technologies that Produce Electricity from
Biomass
Legal Aspects
Conclusion
Biomass:


Biomass is plant matter or other biological
material, such as trees, grasses, or agricultural
crops.
On average, biomass is made of 75%
carbohydrates and 25% lignin.
–
Lignin forms the woody cell walls of the plants.
Biomass

Wood and Wood
products
Biomass

Agricultural Biproducts
and Residues
Biomass

Trees, shrubs, grasses
and other energy crops

Typically fast growing
Bioenergy:


Bioenergy or biomass energy is any fuel,
electric power, or useful chemical product
derived from organic matter.
Bioenergy can be derived either directly from
the plants or indirectly from plant-derived
wastes and residues.
Environmental Factors



Generates same amount of heat and carbon
dioxide as from natural processes.
Renewable energy source
Reduces erosion by preserving soil
Environmental Factors



Provides a habitat for wildlife species
Provides moisture retention and shade, which
cools our atmosphere.
Most wood used is remnants from the logging
industry, such as tree tops and wood chips.
Reliability




The United States has an estimated 65-90
billion tons of dry matter.
At 2000 energy use levels, this biomass could
supply 14-19 years of energy.
The Department of Energy states that all of the
biomass available now has an energy content
that would produce an estimated 2,740 Quads.
1 Quad = 1,000,000,000,000,000 Btus
US Sources of Biomass
US Electricity Generation
U.S. Energy Consumption and Electricity Generation, 2001
Consumption...................
Energy Source
(Quads *)
Electricity Generation.......
(% Total)
(Bill. kWh **)
(% Total)
Total
97.1
Coal/Coal Coke
21.9
22.6
1,904.0
51.2
Petroleum
38.2
39.4
126.0
3.4
Natural Gas
23.2
23.9
627.1
16.9
8.0
8.0
768.8
20.7
Nuclear
Hydro Pumped Storage
3,719.4
-0.09
-8.8
Renewables (Total)
5.7
5.9
297.3
7.9
Hydro
2.4
2.5
217.5
5.6
Biomass/Biofuels
2.9
2.9
59.7
1.6
Geothermal
0.32
0.32
13.8
0.37
Solar
0.06
0.07
0.5
0.01
Wind
0.06
0.06
5.8
0.16
_______________________________________________________________
Note: values are rounded.
* A quad is quadrillion British Thermal Units (Btu), and is the equivalent of about 180 million barrels of crude oil.
** Bill. kWh = a billion kilowatt-hours; One kilowatt-hour (kWh) is the equivalent of running a 100 Watt light bulb for 10 hours.
US Biomass Generation



The US is the largest biopower generator. It
produces 37 billion kWh of biomass electricity
which requires about 60 million tons of
biomass a year.
The US has more than 7,000 MW of installed
capacity.
We have about $15 billion invested and 66,000
jobs.
Biomass Potential in Illinois
Biomass Usage
Marketing & Incentives


Green Power Marketing provides choices for
consumers to purchase power from renewable
or environmentally friendly sources.
Customers also pay a premium to support
investment in renewable energy technologies.
Marketing & Incentives

The EPA Combined Heat and Power
Partnership program is a voluntary partnership
between EPA, combined heat and power
(CHP) industry, utilities, and state and local
governments that create CHP programs.
Biomass Uses for Energy




Heating – stoves, process heat
Cooking – developing world
Transportation – ethanol
Electric Power Production
Technologies used to Produce
Electricity from Biomass

Direct Combustion burning biomass with
excess air to produce
steam
Technologies (cont.)

Co-Firing – replaces part
of the coal with biomass,
as a supplementary
energy source.
Technologies (cont.)

Gasification – heat
biomass without oxygen
to produce a calorific gas
Technologies (cont.)

Small Modular BioPower – develops small,
efficient, clean biopower
systems
Direct-Fired Combustion



Oxidation of air and biomass
Produces hot flue gases that produce steam
Steam generates electricity in generators
Direct-Fired Biomass System
Small-Modular Systems




Less than 5 MW
Potential to power villages
Consist of power generation attached to the
transmission and distribution grid, which is
close to the end consumer.
Potential to supply 2.5 billion people who are
currently without electricity.
Gasification

Two processes:
–
Pyrolysis – releases volatile compounds of the fuel

–
Bigger role here than in coal fired plants
Char Conversion – carbon remaining after pyrolysis
reacts with steam and/or oxygen (combustion)

Biomass has high reactivity
Types of Gasifiers

Direct Gasifier

Indirect Gasifier
Direct Gasifier
Indirect Gasifier
Gasification Process – Direct
Gasifier





Plant gets wood chips
Biomass is gasified
Air is extracted from the gas turbine and fed
into the gasifier
Gasification steam is extracted.
Remaining fuel gases are cooled.
Gasification Process – Direct
Gasifier



Fuel gas combusts and produces electric
power and a high temperature exhaust steam
Exhaust steam expands in a steam turbine to
produce additional power
Steam is extracted and electricity is sent to a
substation
Generating Capacity


The United States has about 7 GW of gridconnected biomass generating capacity.
Coal-fired electric units are 297 GW of
capacity, which is about 43% of total
generating capacity.
Vermont Project




Vermont has the first industrial biomass
gasification process located in Burlington.
The process integrates a high-throughput
gasifier with a high-efficiency gas turbine.
Circulating hot sand surrounds the biomass
particles and the particles break down and
produce gas.
This project uses an indirect gasifier system.
Vermont Project
Hawaii Project




Hawaii Biomass Gasifier is part of the DOE’s
initiative to demonstrate a gasification system
to turn biomass into electricity.
Its goal is to provide competitive electric power.
The plant uses maple wood chips, California
highway clippings, paddy rice straw, fuel from
refuse, bark, paper mill sludge, and alfalfa.
This project uses a direct gasifier system.
Advantages of Gasification


Biomass closes the
carbon system and
therefore reduces
emissions.
Biomass is low in sulfur
–
–
Biomass contains .05 to
.20 % of weight is sulfur
Coal contains 2-3% of
weight is sulfur
Advantages of Gasification





Operates at a lower temperature and wider variety
of feedstocks than direct combustion systems.
Can produce a Btu gas that is interchangeable with
natural gas.
Produces nitrogen free gas.
Less landfill waste.
Future technologies are being developed
–
Fuel Cell Systems
Disadvantages of Gasification



Some biomass plants have closed because of
deregulation of the electric utility industry.
Hard to compete with cheaper sources, such
as coal, oil, and nuclear.
Small amounts of tar are released in the gas.
The tar can coat parts of the pipe or the
equipment.
–
Catalyst reactor has been developed to decrease
the amount of tar to parts-per-million.
Disadvantages of Gasfication


Still a new technology and the Vermont Plant
has not been able to operate continuously yet
for a sustained period of days or weeks.
Over storage of wood fuel can lead to odor
problems and spontaneous combustion.
Present and Future Costs
Steam Turbine
Advanced
Gasification
2.63 cents/kWh
Capital
3-5 cents/kWh
Operating
(excluding fuel)
Biomass
Feedstock
TOTAL
2.2-2.8 cents/kWh .4 cents/kWh
1.2-3.5 cents/kWh 1.62 cents/kWh
6.4-11.3
cents/kWh
4.65 cents/kWh
Costs


Capital costs of building a biomass-fired steam
turbine plant is about $2000-2500 per KW of
installed capacity.
These costs are expected to decrease in the
future.
Future of Gasification


Gasification has a bright future, once the
technology is fine-tuned.
If the cost of the process decreases as
expected, it will be able to compete
economically with current energy sources.
Co-Firing Biomass with Coal and
the Legal/Governmental Incentives
for Biomass as a Renewable
Co-firing Biomass with Coal to
produce Electricity

What is Co-firing?
–
–
The simultaneous combustion of biomass and coal in a preexisting boiler of a traditional coal-fired power plant
2 Methods

Blending
–
(+) Least expensive
– (-) Limited amounts; higher possibility of damage

Separate Feed
–
(+) greater emission reductions; greater amounts of biomass
tolerates; less harmful to existing boiler
– (-) requires more resources (equipment, $)

One form of “blending” is
directly adding biomass
to the coal-belt.
Advantages of Co-firing:
“Something for Everyone”
The Existing Power Plant
–
–
–
Existing equipment is still utilized
Easier to meet environmental regulations and hedge
future regulations
Cost savings


–
Tax incentives
Fuel supply options
Good PR
Advantages of Co-firing:
“Something for Everyone”
Biomass
–
Encourages development
of feedstock infrastructure
–
Creates a market for
residues and energy crops
Advantages of Co-firing:
“Something for Everyone”
The Environment
–
–
–
–
Reduces GHG emissions
(CO2; CH4)
Reduces SO2 and NOX
emissions
Reduces burden on
landfills
Extends the life of coaluse for electricity
generation
Advantages of Co-firing:
“Something for Everyone”
The Economy $$$





Provides an end use for low
value/negative value products
Maintains existing market for
coal
Increases domestic economic
growth and job creation
Increase economic activity in
rural/agricultural areas
Increase business for
equipment suppliers
Disadvantages of Co-firing
Technological issues
–
Existing boilers/systems designed (exclusively) for
fossil fuels



Negative impact on existing boilers
CL-based corrosion
Negative impact on boiler capacity
Disadvantages
Diverse feedstock
–
Range of different fuel
characteristics




Woody – Grassy
Residues – energy crops
Ash content
Fuel nitrogen content
Uncertainties due to different biomass
properties
Differences between biomass and coal
–
–
–
–
–
Higher moisture content (= low net calorific value)
Higher CL content
Low heating value
Low bulk density
Higher content of volatile matter (80%:coal 30%)
Disadvantages

Feeding methods
–

Fuel preparation and handling
Ash-related issues
–
–
Biomass = source of aerosols
Pure-coal ash required for concrete use
Just a couple more…disadvantages


Engineering to commercial/economical issues?
Requires incentives
–

Might require additional investments
–
–

Less incentives for small-scale plants
Equipment
Biomass material
Dependant on the availability and price of lowcost biomass feedstocks
Co-Firing Programs
DOE’s Biopower Program
Goals:
 Promote biomass using the
least-cost approach
 Broaden the base of utilities
employing co-firing
 Increase the # and type of cofiring techniques
 Provide the underpinning for
advanced designs
–
Accomplishments





Switchgrass; willow = successful bio-material
Biomass co-firing = technologically successful
Viability demonstrated
Pollutant emission reductions verified
Economic models/feeding techniques developed
Co-Firing Programs

Regional Biomass Energy Program (RBEP)
–
–
Federally-funded; located in 5 regions of U.S.
Goal = to increase the production and use of bioenergy
resources


–
Best candidates
Full-scale analysis
Accomplishments:

Successful biomass co-firing operations from an operational and
performance perspective requires…


Biomass price 20% less than that of coal
Reliable and automated procedures
Co-Firing Programs

Co-firing project at
Hawaii Commercial
Sugar
–
Result:

Sugar cane (bio-material)
+ coal = less NOX
emissions!
Co-Firing Programs

Co-firing program for
urban wood waste
–
–
Northern Indiana Pub.
Service Co + Electric
Power Research Institute
+ DOE
Urban wood waste + coal
(W. bituminous and
Powder River Basin)
Current Power Plants Using CoFiring Method on a Regular Basis

Northern States Power (NSP)
–

Tacoma Public Utitlies
–

Wood waste + coal
Southern Company
–

Wood wastes and garbage + coal
TVA
–

Wood residues + coal
Wood residues (grnd pallets/hurricane-damaged trees) + coal
NY State Electric and Gas (NYSEG)
–
Sawdust; furniture factory waste + coal
Furthermore, Numerous Other
Power Plants are Exploring the
Benefits of Co-Firing





Niagara Mohawk Power
Co.
GPU GENCO
Madison Gas & Electric
Atlantic Electric
American Electric Power





Illinois Power Company
Plains Electric
IES Utilities
Northern Indiana Public
Service Co.
And MANY more!!
Summary
Co-Firing biomass capitalizes on the large
investment and infrastructure associated with
the existing coal-fired power plants while
traditional pollutants (SO2; NOX) and net
GHGs (CO2; CH4) are decreased!!
Legal Aspects and Governmental
Incentives pertaining to Biomass
as a renewable form of energy
Federal
State
Federal
1. Energy Policy Act of 2003 (Energy Bill/S. 2095)
–
–
–
Title II: renewable energy incentives
Title XIII: energy tax incentives
Section 206
2. Biomass R&D Initiative of 2003
3. Bioenery Initiative
–
Exec. Order 13134
Federal (cont)
4. Ag. Risk Protection Act of 2000 (P.L. 106-224);
Title III. Biomass R&D Act
5. Green Power Purchasing Goal
–
Exec. Order 13123
6. Renewable Energy Systems and Energy
Efficiency Improvement Program
7. CAA amendments
(1) Energy Policy Act of 2003
Energy Bill (S. 2095)

Title II: renewable energy incentives
–
–
–
–
New incentives for development and use of
renewables
Mandates assessments to assist in long-term plans
Reauthorizes the Renewable energy Production
Incentive Program
Grants for turning forest material into biomass
energy
Energy Bill (S. 2095)

Title XII: Energy tax incentives
–
–
Previous “Renewable Electricity (and Energy) Production
Credit” expired for all new projects on 12/31/2003
Creates a NEW Tax incentive!!
Extends placed-in service date for…closed-loop biomass and
poultry waste facilities
 Adds open-looped biomass, municipal bio-solids, and recycled
sludge…as qualifying energy resources
 Credit = 1.8 cents/kWh (no inflation adjustment)
 Allows for tradable tax credits for tax-exempt entities, co-ops, and
municipal utilities
 Effective: 10/1/2004
www.energy.senate.gov

Energy Bill (S. 2095)

Section 206
–
–
Grants to improve the commercial value of forest
biomass for electric energy…and other commercial
purposes
The government found that:

Risk
–


(wildfire; insect infestation; tree mortality; drought)
…requires preventive measures
=by-products of biomass BUT no suitable market
Energy Bill (S. 2095)

Section 206 (cont.)
–
Therefore, the U.S. should:

Promote economic and entrepreneurial opportunities in
using these by-products

Develop and expand markets
(2) Biomass R&D Initiative of 2003

DOE and USDA
–
$23 million allocated to 19 different biomass
projects
(3) Bioenergy Initiative

Exec. Order 13134: Developing and Promoting
Bio-based Products and Bioenergy
–
Policy = national strategy to stimulate the creation
and early adoption of technologies needed to make
biobased products and bioenergy cost-competitive




Expand employment opportunities
Create new market
Reduce Nation’s dependence on foreign resources
Decrease pollution
Bioenergy Initiative

President’s goal = triple U.S. use of bio-based
products and bioenergy by 2010

DOE + federal organizations = national
partnership to develop an integrated industry to
produce power…from biomass
(4) Agricultural Risk Protection Act
of 2000 (P.L. 106-224)
Title III. Biomass R&D Act



Recognition that biomass has outstanding potential to
benefit the national interest
Combined efforts of DOA and DOE
Purposes:
1.
2.
3.
4.
To understand biomass
To develop new and cost-effective technologies that would
result in large-scale commercial production
To ensure economic and energy security and environmental
benefits of bio-products
To promote the development and use of agricultural and
energy crops for conversion
(5) Green Power Purchasing
Program




Applicable sector: federal government
Goal = 2.5% renewables by 2005
Effective: 6/2000
Authority: Exec. Order 13123
–
–
Requires federal agencies to increase their use of
renewable energy
Biomass systems installed after 1990 apply as
“new” renewable energy resources (emphasis on
“new” to reach goal)
Green Power Purchasing Program
2000:
–
obtaining 13% of goal
March 2004:
–
77% of goal !!!
(6) Renewable Energy Systems
and Energy Efficiency Improvement
Program




Federal grant program through the USDA
Commercial/agricultural producers
Grants provided for 25% of eligible project
costs
Producer must demonstrate “financial need”
(7) 1990 Amendments to CAA
(7)
Lowered baseline limitations for SO2
emissions
–
= increase in market-price of air emission
allowances
–
= electricity generators will turn to bio-energy to
reduce costs and meet stricter regulations
State Law/Incentives
Illinois
State
1.
2.
Mainstay Energy Rewards Program
IL Clean Energy Community Foundation Grants
(ICECF)

3.
Renewable Energy Resources Trust Fund

4.
5.
220 ILCS 5/16-111.1
220 ILCS 687/6-4
Renewable Energy Resources Program Grants
(RERP)
Renewables Portfolio Goal

220 ILCS 5/16-111.1
(1) Mainstay Energy Rewards
Program

Green Tag Purchase Program = production incentive
–
–
Private company buys the green tags (RECs) which are
brought to the market as “Green-e” certified products
Participating companies receive regular, recurring payments

–
–
–
–
–
Dependant on type of renewable; production of energy; length of
K
Biomass is eligible
Commercial and residential sectors
Amount = .1-1cent/kWh (for biomass)
Certification fee and requirements
200 current participants!
(2) IL Clean Energy Community
Foundation (ICECF) Grants

State grant program
–
–


Grants, loans, other financial support
$250 million endowment from ComEd
Non-profit; schools, state and local governments
serving IL
Authority = 20 ILCS 5/16-111.1
–
IL Resource Development and Energy Security Act

Purposes: “Enhance the state’s energy security by ensuring
that…(iv) pilot projects are undertaken to explore the capacity of
new, often renewable sources of energy…”
(2) ICECF Grants (cont)


Effective 2001
How to apply?
–

Submit proposal (competitive basis)
Between 2001-2002:
–
ICECF awarded more than $17 million in grants for
renewable energy projects in IL!!
(3) Renewable Energy Resources
Trust Fund




Public benefits fund required in 220 ILCS
687/6-4
Available for the general public/consumer
$50 million for 10 years
Collection
–
–
$.50 cents/month from residential and small
commercial electric and gas customers
$37.50/month from large commercial electricity
customers
(4) Renewable Energy Resources
Program (RERP) Grants



State grant program funded by the Renewable
Energy Resources Trust Fund
Distributed in the form of grants (for large
systems) and rebates (for small systems)
Involves an annual RFP process
(5) Renewables Portfolio Goal





Specific standard to IL
Applies to Utilities
5% by 2010…15% by 2020
Effective: 7/2001
Authority: 220 ILCS 5/16-111.1
–
Contains a “goal” but NO implementation schedule,
compliance verification or credit-trading provisions
Biomass Utilization for Electricity
Production =
SOMETHING
FOR
EVERYONE!!!