Rps Biopower Options Slides
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Satisfying State & FederalSatisfying State & FederalRenewable Energy StandardsRenewable Energy Standardswith Biomasswith Biomass
Scott MillerPrice BIOstock, Marketing DirectorDecember, 2009
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Victoria, Australia
Paper & Pulp
PBS Headquarters
14 million tonsper year
Price BIOstock
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The Price Companies business model
Suppliers receive:– A fair price for feedstock– A preferred delivery point
Client specifies:– Woodchip or other product– Site of the receiving/processing yard
Price provides:– Feedstock procurement and delivery– Design/construction of receiving yard– Management of preparation facility
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OverviewOverview
1. State and Federal RPS and RES legislation
2. Bioenergy options available to power companies
and utilities
3. Factors affecting the price of wood
4. Handling options - buying chips vs. siting wood
yards
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State renewable portfolio standard
State renewable portfolio goal
Solar water heating eligible *† Extra credit for solar or customer-sited renewables
Includes separate tier of non-renewable alternative resources
WA: 15% by 2020*
CA: 20% by 2010
☼ NV: 25% by 2025*
☼ AZ: 15% by 2025
☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops)
HI: 40% by 2030
☼ Minimum solar or customer-sited requirement
TX: 5,880 MW by 2015
UT: 20% by 2025*
☼ CO: 20% by 2020 (IOUs)10% by 2020 (co-ops & large munis)*
MT: 15% by 2015
ND: 10% by 2015
SD: 10% by 2015
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
☼ MO: 15% by 2021
IL: 25% by 2025
WI: Varies by utility;10% by 2015 goal
MI: 10% + 1,100 MWby 2015*
☼ OH: 25% by 2025†
ME: 30% by 2000New RE: 10% by 2017
☼ NH: 23.8% by 2025
☼ MA: 15% by 2020+ 1% annual increase(Class I Renewables)
RI: 16% by 2020
CT: 23% by 2020
☼ NY: 24% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18% by 2020†
☼ MD: 20% by 2022
☼ DE: 20% by 2019*
☼ DC: 20% by 2020
VA: 15% by 2025*
☼ NC: 12.5% by 2021 (IOUs)10% by 2018 (co-ops & munis)
VT: (1) RE meets any increasein retail sales by 2012;
(2) 20% RE & CHP by 2017
29 states & DChave an RPS
5 states have goals
KS: 20% by 2020
☼ OR: 25% by 2025 (large utilities)*5% - 10% by 2025 (smaller utilities)
1. State Renewable Portfolio Standards (RPS)
DOE / EERE DSIRE website - August 2009
August 2009
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State resources to meet RPS mandates
PEW Center on Global Climate Change
Solar
WindBioPower
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Pulp & Paper
+$
‘70’s “Cradle-to-grave” material value cycle
Natural Gas Boilersfor Power &Biomass Conversion
Wood Biomass& Grid Power
Wasteto
Landfill
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+$
Waste asan EnergyFeedstock
- Black liquor- Sawdust- Wood residues- Bark
‘80’s “Cradle-to-cradle” bioenergy value cycle
Tomlinson Boilersfor Power &Biomass Conversion
Wood Biomass
Pulp & Paper
6GW by 1990’s56% plant power
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2. Biomass Power options
Biomass power plant– Wood chips and biomass - <75MW per plant
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Logistics Challenge
Green wood is 50%moisture
Hauling costs about$.12 per ton per mile
Feedstock deliveriesmust be to the plant
The greater thevolume, the moreoptions needed
The number oftruckloads/day
75 Miles
50 Miles
25 Miles
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One dot = 5,000 acres
Federal land
23,000,000 acresvs. 7,300,000 acres
Before EISA RFS
After RFS
Georgia’s qualifying biomass
USDA Forest Service - Forest Inventory and Analysis National Program
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USDA Forest Service - Forest Inventory and Analysis National Program
One dot = 5,000 acres
Federal land
19,000,000 acresvs. 500,000 acres
Before EISA RFS
After RFS
California’s qualifying biomass
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Thinnings & salvage
6 of the 7 worst fire seasons
National Interagency Fire Center, 2008
Cone Fire - 2002
U.S. Forest Fires1960-2007
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2. Biomass Power options
Biomass power plant– Wood chips and biomass - <75MW– Pellets - wood or energy crops– Syngas replacement for natural gas
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2. Biomass Power options
Biomass power plant– Wood chips and biomass - <75MW– Pellets - wood or energy crops– Syngas replacement for natural gas
Co-firing -– Biomass & energy crops -
<15% of feedstock volume
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2. Biomass Power options
Biomass power plant– Wood chips and biomass - <75MW– Pellets - wood or energy crops– Syngas replacement for natural gas
Co-firing -– Biomass & energy crops -
<15% of feedstock volume– Torrefied pellets -
up to 100% of feedstock volume
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3. The cost of wood - industry “byproducts”
There is very little valueless waste
– C&D waste
– Understory on federal lands
– Logging waste
– Sawmill byproducts
– Papermill byproducts
– Urban and yard waste
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The cost of harvested wood - stumpage prices
BioPower
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Example: $25/ton biomass delivered to mill
$13Harvesting
$5Freight
$7Stumpage
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Procurement
Still using the same methods that have beentime tested by the forest industry:
A combination oflong and short term agreements
as a baseand purchasing on the open market
for the rest.
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4. Handling - Receive from chip handlers
Buy from chipmill suppliers +$10 Byproducts from solid wood products mills -$5 Grinders/chippers in landfills, right-of-ways, roads -$10 Field chippers in the woods - only 1 of 40 loggers
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4. Handling - Set up a woodyard with chipping
All chip handlers
Every logger in haul distance
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Lessons to be learned
There is very little valueless waste
Location and feedstock flexibilitydetermine wood cost
Professionals pay for themselves andhelp ease investor worry
A chip buying facility is vulnerable toloss of suppliers and low volumes
>1,000 tpd - Plant should includechipping capabilities
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Scott MillerMarketing [email protected]
Scott MillerPrice BIOstock, Marketing DirectorDecember, 2009