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Pioneer Renewable Energy Project Overview June 2009. Project Overview.
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Pioneer Renewable EnergyProject Overview June 2009
Project Overview Madera Energy, Inc. is developing a biomass power plant, called Pioneer Renewable Energy (PRE). PRE will be located on ~65 acres in Greenfield, MA. Capacity of the project is 47 megawatt (“MW”), which will generate nearly 400,000 MWh of renewable electricity per year for sale into the wholesale market. This is equivalent of powering more than 45,000 homes (or >150% of the households in Franklin County) . Project cost is expected to total approximately $250M. It is expected that development will take ~18-24 months and construction will take ~30-36 months. The project will result in hundreds of jobs for Greenfield and the surrounding community, as well as millions of dollars in additional economic activity.
What is Biomass Power Biomass power is the conversion of organic material (trees, plants, or other sources) into electricity. Biomass is a renewable source of energy. In utility-scale applications, the electricity is sold to the wholesale market (also known as the “grid”). Biomass power is CO2 neutral (or a “low carbon alternative”) and therefore an important tool in combating climate change. Consumers Biomass Material Power Plant Transmission Lines (“the grid”) Wood Chips
Why Biomass High Energy Prices (and Rising) Climate Change Concerns Energy Security Economic Development Environmental Stewardship Resource Availability
Why Biomass – Economic Development According to a study conducted by UMASS Amherst, the MA DOER, and the MA DCR, the development of biomass energy “holds substantial economic promise”. Study shows that 165 MW of new biomass results in thousands of jobs and billions of dollars in economic output. Economic Impact of 165 MW of New Biomass Power Generation by 2015 Source: Massachusetts Sustainable Forest Bioenergy Initiative
Why Biomass – Economic Development • A 47 MW facility would make a significantly positive impact on the local economy. • 20 - 25 permanent, direct employment opportunities • 100 - 150 project-related jobs for local businesses, including foresters, loggers and truckers • 250 - 300 construction jobs over the 24 - 30 month construction period • ~$250M facility would significantly add to the local tax base • Additional revenue to the DPW (new water and sewer fees) • Create market for low-grade wood • Create demand for ~500,000 tons of clean wood fuel annually • Support potential renewable energy “cluster” • Act as a “magnet” for additional industrial development • Provide region with reliable, economical, and sustainable energy
Project Overview • 47 MW power generating facility (net) • Generate nearly 400,000 MWh of power • Enough to power the equivalent of ~45,000 homes - equivalent to powering >150% of the households in Franklin County • Low emission advanced biomass conversion technology • Qualifies as renewable energy under federal and state requirements • Fuel consists of ~500,000 tons per year of clean wood • NO painted or treated wood – permits/economics don’t allow it • Truck Traffic – Draft of traffic study complete • Average of ~60 truck loads per day (120 truck trips) • Significant truck traffic already travels thru Adams Rd/Route 2 intersection • Total project cost -~$250,000,000 • Stack height of 250’(not highest structure on property)
Where the Fuel (Clean Wood) Comes From • Massachusetts is the 8th most forested state in the country, with forest-lands constituting more than 3 million acres (or >62% of the land). • Commercial Forest Operations • Clean, low-grade material from commercial operations – normally remains in the forest • Timber Stand Improvements • Clean, low-grade material from conservation lands managed for environmental or wildlife purposes and “cleaning cuts” on commercial forest lands. • Clean Wood Waste • Clean wood waste from real estate development (land conversion), ice storms, transmission lines, municipal trimmings, etc. NO PAINTED OR TREATED MATERIAL. • Secondary Wood Manufactures • Clean wood waste from sawmills, pallet recyclers, etc.
Sustainable Fuel Supply The area surrounding the proposed site has a rich supply of wood. A study performed INRS estimated that new growth of biomass exceeds harvest and mortality by >3M tons per year. 55-mile Radius of Greenfield, MA, with 90-minute drive time indicated in blue Greenfield, MA Source: INRS
Sustainable Fuel Supply There is very little current demand for low grade wood within a 55 mile radius of Greenfield, which makes the site a very attractive location for a biomass facility. Greenfield, MA Source: INRS
Project Overview – Technology Pioneer Renewable Energy will utilize advanced biomass conversion technologies, including state of the art emission control systems and an advanced stoker boiler.
Project Overview – Air Quality Pioneer Renewable Energy has performed an air modeling analysis and results show that air quality, with or without the project, will remain essentially unchanged.
Project Overview – Air Quality Pioneer Renewable Energy has performed an air modeling analysis and results show that any impacts of emissions from the stack will be below Significant Impact Levels (SILs). SILs are the EPA-defined levels under which impacts are considered insignificant. The SIL is 2 micrograms per cubic meter of air, or ug/M3 for PM 2.5.
Air Quality - Comparison to Wood Stoves Particulate emissions from PRE will be nearly 150 times lower than a typical residential wood stove.
Air Quality - Biomass vs. Coal Mount Tom has historically had emissions more than 5 times higher than those proposed by Pioneer Renewable Energy. After upgrades currently underway, Mount Tom will continue to have emissions nearly 3 times higher than Pioneer. Sources: Mt. Tom emissions based on discussions with plant manager, recent regulatory approvals, and standard EPA factors. PRE emissions based on proposed permit limits.
Project Overview – Traffic A detailed traffic impact analysis conducted for the project concluded that project-generated traffic will utilize well-established truck routes and will not negatively impact area roadways and intersections.
Project Overview – Water & Utility Information • Water • Wet cooling would require estimated ~700,000 gpd • 90 - 95% for cooling, 5 - 10% for boiler/potable • Source of cooling water will be grey water from treatment plant – located 5.1 miles away – will access via Town roads • ~49,000 gpd of water needed for boiler make-up will come from an on-site well • Sewer - Water discharged into sewer system • Will provide additional ~$250,000 per year in water/sewer fees to the DPW • Will use diesel for start-up • On-site ammonia tank (for emission control)
Project Overview – Wood Ash About 2% of the wood will end up as ash. The ash can be used as an organic fertilizer and is very well suited for Pioneer Valley soils. • Will likely use a firm by the name of Resource Management, Inc. • Certified organic • Clean wood ash is cost effective and well-suited to the soils of the Pioneer Valley • High in potassium and lime • Also acts as another safeguard against using painted and treated wood as every load of ash will be tested
Project Overview – Thermal Energy PRE has incorporated the ability to generate thermal energy into the design of the facility. The type of thermal energy will depend on the needs of potential customers. • Thermal energy could constitute hot water and/or steam • Would increase the efficiency of the facility, therefore further increasing the facility’s environmental benefits and economic viability • Provide low cost heating and/or cooling to businesses in the industrial park and surrounding community • Madera Energy has reached out to a number of organizations to inquire about complementary uses • Examples of businesses that can make use of thermal energy: • Steam – Biotech, manufacturing, food processing • Hot Water – Greenhouses, residential, office buildings, aquaculture, algae farms, District Heating
Operating Example – McNeil Generating Station McNeil Generating Station, located in Burlington, VT, is a 50 MW facility that has been in operating since 1984. John Irving helped construct the facility and has been managing its daily operations since 1985.
Burlington, VT – Accolades and Awards • As Burlington, VT demonstrates, the existence of a biomass plant and a vibrant, clean, and sustainable city are not mutually exclusive. • CDC (2008) - Healthiest City • Country Home Magazine (2008) – Greenest City • Urban Environment Report (2007) - Ranked 2nd out of 72 cities (50 largest cities in the country plus largest cities in each state) nationwide • Money Magazine (2007) - "Greenest City" in the country (based on air and watershed quality, mass transit use, power use, and number of organic producers and farmers' markets) • Self Magazine (2004) - No.2 Happiest and No.4 Healthiest Place to Live in the U.S. • Delicious Living Magazine (2004) - Impressive City Award (for exceptional efforts toward sustainable living).
McNeil Generating Station – Economic Benefits • Through February 2006, the McNeil Station has had a significantly positive impact on the local economy. Note that the below does not include the costs associated with construction of the $67M facility, much of which was spent locally. • Payroll $ 40,648,315 • Property Taxes $ 19,896,343 • Sales Taxes $ 894,972 • Rail Transportation $ 24,420,031 • Local Contractors $ 5,778,494 • Wood Fuel Purchases $ 103,090,045 • Total $ 194,728,200
McNeil Generating Station – Jobs • The McNeil Station supports more than 100 LOCAL jobs. • Power Plant Jobs 34 • Home Office Support Jobs 4 • Forest Management Jobs 4 • Harvesting and Processing 36 • Wood Transportation 35 • Support Services 11 • Train Transportation 6 • Total 130
Est. Timeline for Pioneer Renewable Energy Initial Due Diligence & Site Control – Complete by Fall 2008 Project Development – Complete by Fall 2010 (~18 -24 months) Startup & Operation – Summer 2013 Detailed Design & Construction – Complete by Summer 2013 (~30 months) Completed as part of the final stages of design and construction Will take at least 24 months but more likely 30-36 months Site control, title search, Phase I, initial community outreach, preliminary resource assessment Detailed resource assessment, community outreach, local and state permitting, design, power contracts, REC contracts, EPC and O&M agreements
Contact Information: Matthew WolfePrincipal, Madera Energy, Inc.89 Thorndike St.Cambridge, MA 02141MWolfe@MaderaEnergy.com617-721-0972617-354-1812 (fax)www.PioneerRenewableEnergy.com