Realizing Plants Full Potential: Electricity from Biomass

By Becky Schanz and Megan Garvey

Chicago-Kent College of Law Energy Law Presentation* bjschanz@earthlink.net mgarvey03@aol.com

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 Total Coal/Coal Coke Petroleum Natural Gas Nuclear Hydro Pumped Storage Renewables (Total) Hydro Biomass/Biofuels Geothermal Solar Wind (Quads *) 97.1 21.9 38.2 23.2 8.0 -0.09 5.7 2.4 2.9 0.32 0.06 0.06 5.9 2.5 2.9 0.32 0.07 0.06 22.6 39.4 23.9 8.0 (% Total) Electricity Generation....... (Bill. kWh **) 3,719.4 1,904.0 126.0 627.1 768.8 -8.8 297.3 217.5 59.7 13.8 0.5 5.8 7.9 5.6 1.6 0.37 0.01 0.16 51.2 3.4 16.9 20.7 (% Total)

_______________________________________________________________
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 DOEs 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 Capital Operating (excluding fuel) Biomass Feedstock TOTAL 3-5 cents/kWh Advanced Gasification 2.63 cents/kWh

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 (+) greater emission reductions; greater amounts of biomass tolerates; less harmful to existing boiler (-) requires more resources (equipment, $)

Separate Feed

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 moredisadvantages

  

Engineering to commercial/economical issues? Requires incentives

Less incentives for small-scale plants Equipment Biomass material

Might require additional investments

Dependant on the availability and price of lowcost biomass feedstocks

Co-Firing Programs
DOEs 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 Successful biomass co-firing operations from an operational and performance perspective requires
 

Accomplishments:


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)

Wood residues + coal Wood wastes and garbage + coal Wood waste + coal Wood residues (grnd pallets/hurricane-damaged trees) + coal Sawdust; furniture factory waste + coal

Tacoma Public Utitlies

TVA

Southern Company

NY State Electric and Gas (NYSEG)

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 forclosed-loop biomass and poultry waste facilities  Adds open-looped biomass, municipal bio-solids, and recycled sludgeas 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 energyand 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 Nations dependence on foreign resources Decrease pollution

Bioenergy Initiative


Presidents 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 powerfrom 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)


220 ILCS 5/16-111.1 220 ILCS 687/6-4

3. 4. 5.

Renewable Energy Resources Trust Fund



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 states 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) ICECF awarded more than $17 million in grants for renewable energy projects in IL!!

Between 2001-2002:

(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 201015% 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!!!