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What We Need to Know About Biomass Opportunities and Obstacles. Larry Mason University of Washington College of Forest Resources. COASTAL BIO-ENERGY WORKSHOP – June 19,2007. New Sources of Energy Are Needed: Oil Costs Are Too High!!. Oil is a Threat to National Security.
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What We Need to Know About Biomass Opportunities and Obstacles Larry Mason University of Washington College of Forest Resources COASTAL BIO-ENERGY WORKSHOP – June 19,2007
Oil is a Threat to National Security Peter Menzel
Fossil Fuels are Polluting the Environment Peter Menzel
“America is Addicted to Oil” President George Bush, State of the Union 2006
WA Ambitious Energy Objectives • I-937 Renewable Portfolio Standard – 15% by 2020 • Renewable fuels standard – 2% ethanol & biodiesel • Cut emissions to 1990 levels by 2020 and to 50% below 1990 levels by 2050
WSU Biomass and Bioenergy Inventory Forest Biomass equals all others combined Source: WSU, WA DOE
$87 Million/year to support research at the National Renewable Energy Laboratory National Renewable Energy Laboratory
?Questions? • Who owns the biomass? • Where is it? • Is sufficient supply reliably available? • What role should public lands play?
Source: Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The technical feasibility of a billion-ton annual supply. Perlack et al. 2005.
Source: Biomass as Feedstock for a Bioenergy and Bioproducts Industry: The technical feasibility of a billion-ton annual supply. Perlack et al. 2005.
A sensitivity analysis to inform public policy could show potential biomass availability under different options
?Questions? • While there appears broad agreement that bioenergy development and climate change mitigation are important… • How important? • What is it worth? • How do we compensate for ancillary benefits and avoided costs not currently traded in the market place?
An Eastside Example: THIS? Or THIS?
2006 Forest Fires Total WA ~ 400,000 acres Total US > 9.8 millionacres Source: NOAA, EPA, US Census, NIFC, RTI, DNR
Source: TSS Consultants, http://www.cc.state.az.us/utility/electric/EPS-TSSC.pdf
Non-market values, avoided costs, and environmental services are important to the public and should be included in cost/benefit analysis Source: Investigation of Alternative Strategies for Design, Layout and Administration of Fuel Removal Projects. Mason et al. 2003.
Life Cycle Analysis and carbon accounting can help assess biomass utilization effectiveness Carbon sequestration, storage, offset, and displacement from forest management and products manufacture. Carbon sequestration and storage with no management. CORRIM http://www.corrim.org/
CO2 emissions from product alternatives International Energy Agency, British Columbia Pellet Manufacturers Association, NREL, EPA
?Questions? • With all the apparent benefits of bioenergy, why isn’t more happening?
Historical Roadblock Example: Biomass Fuel Cost to Electricity Price retail price wholesale price McNeil Technologies
Estimated value of environmental benefits from biomass energy= $0.114/kWh Retail Wholesale Avoided Costs, Non-market Values, and Econ Development? • Fossil Fuel Displacement • Energy Diversity and Security • Transmission Line Loss • Landfills • Greenhouse Emissions • Forest Improvements • Tax Revenues • Economic Development Morris, NREL McNeil Technologies
Incentives, Tax Benefits, and Green Markets are being developed to support energy policy ambitions…
States with Renewable Portfolio Standards Renewables PortfolioStandards MN: 10% by 2015 Goal + Xcel mandate of 1,125 MW wind by 2010 VT: RE meets load growth by 2012 ME: 30% by 2000; 10% by 2017 goal - new RE *WA: 15% by 2020 WI: requirement varies by utility; 10% by 2015 Goal MT: 15% by 2015 MA: 4% by 2009 + 1% annual increase RI: 15% by 2020 CT: 10% by 2010 CA: 20% by 2010 IA: 105 MW • NY: 24% by 2013 • NJ: 22.5% by 2021 IL: 8% by 2013 • NV: 20% by 2015 • CO: 10% by 2015 • PA: 18%¹ by 2020 *MD: 7.5% by 2019 • AZ: 15% by 2025 *NM: 10% by 2011 *DE: 10% by 2019 • DC: 11% by 2022 TX: 5,880 MW by 2015 HI: 20% by 2020 State RPS State Goal • Minimum solar or customer-sited requirement * Increased credit for solar or customer-sited • ¹PA: 8% Tier I, 10% Tier II (includes non-renewable sources) Solar water heating eligible DSIRE: www.dsireusa.org January 2007
Production of Electricity from Renewable Energy Environmental Attributes Commodity Electricity Renewable Energy Credits Growing recognition that electricity and transportation fuels generated from renewable energy sources comprise TWOdistinct tradable commodities – the electricity and the “green” environmental attributes.
?Questions? • What are the biomass-to-energy options?
Biomass can be used many ways • USES • Fuels: • BioDiesel • Ethanol • Electricity and Heat • Biobased Products • Composites • Specialty Products • New Products • Chemicals • Traditional Products • Forest • Biomass • Feedstock • Forest Residues • Hazardous Fuel • Treatments • - Short Rotation • Woody Crops • - Wood Waste • Manufacturing • Co-firing • Combustion • Gasification • Enzymatic Fermentation • Gas/liquid Fermentation • Acid Hydrolysis/Fermentation
?Questions? • How should bioenergy applications be prioritized to maximize benefits?
Magnitude and Source of Peninsula CO2 Emissions Source: Carbon Budget Analysis for the Olympic Peninsula. Hevner. 2007
Net Energy Balance Comparisons Source: Carbon-negative biofuels from low-input high-diversity grassland biomass. Tilman et al. 2006 Environmental, economic, and energetic costs and benefits of biodiesel and ethanol biofuels. Hil et al. 2006
Biomass – 3% Forest Industries – 1.5% Bio-Energy is the largest US EnergyRenewable
Pulp and paper mills are currently struggling PaperAge.Oct.2004
Pulp and Paper Industry: significant renewable energy infrastructure 7,400 Pulp and paper workers in Washington Annual Payroll = $450 million
For some locations, combined heat and power may be the best energy option Avista Corp.
Small scale projects can work where resources are limited Biomass costs are competitive for public heating projects.
What have we learned? • Biomass is the source of renewable transportation fuel • Wood equals all other biomass sources combined • Substantive Renewable Energy and Pollution Reduction can not be met without utilization of wood • New energy and public value paradigms will require new market understandings and compensation mechanisms
Conclusions: • New collaboration amongst research disciplines is needed to address complex energy challenges and advise policy choices • The Olympic Peninsula will play an increasingly important role in WA energy future